Index
Distance in International Business: Concept, Cost and Value
ISBN: 978-1-78743-719-7, eISBN: 978-1-78743-718-0
ISSN: 1745-8862
Publication date: 23 November 2017
This content is currently only available as a PDF
Citation
(2017), "Index", Verbeke, A., Puck, J. and Tulder, R.v. (Ed.) Distance in International Business: Concept, Cost and Value (Progress in International Business Research, Vol. 12), Emerald Publishing Limited, Leeds, pp. 539-548. https://doi.org/10.1108/S1745-886220170000012028
Publisher
:Emerald Publishing Limited
Copyright © 2018 Emerald Publishing Limited
INDEX
Ability
cognitive, 388
competitive, 184
corporate, 499
decision-making, 387
decreasing, 358
differential, 346
firm’s, 211, 349, 416
limited processing, 388
reduced, 34, 365
subsidiary’s, 346
unique, 22, 83
Abnormal return (AR), 193, 195–196
Academy of International Business (AIB), 65
Acquirers, 26–27, 39, 157–158, 185, 189, 191–194, 199, 202, 277–278, 286, 305, 495, 497, 500–507, 510–511
foreign, 278, 495, 503, 509, 511
remote, 306
serial, 204
Acquirers and targets, 193, 278
Acquirers mitigate, 275
Acquiring firms, 26, 39, 158–160, 166, 168–169, 176–177, 185, 201, 311, 503, 509
foreign, 495
Acquisition activity, 284
foreign, 336
Acquisition behavior, 293
Acquisition benefits, 510
Acquisition decisions, 290
Acquisition experience
cross-border, 501
previous, 200
Acquisition experience moderates, 301
Acquisition ownership, 323
decision, 297, 299
strategy, 25
Acquisition performance, 196, 202, 332, 500, 512, 515
border, 201
Acquisition process, 200, 496–497, 500
post-cross-border, 323
Acquisitions
border, 204, 501
corporate, 42, 201, 205, 336
emerging market FDI, 179, 293, 333
experience in, 196–197, 199–200
following horizontal, 292, 512
foreign market, 335
high-technology, 203
international, 131–133, 179, 199, 202–203, 410, 422, 493
low equity, 331
majority, 23, 309–310, 313, 319–320, 324–325, 328–329
minority, 23, 300, 310, 312
outward, 335
post, 280
Additional rents, 521–522
Additivity vs. arbitrage, 83–84
Agreement, 77, 85, 217, 373, 406, 450–451, 505, 507, 526
single market, 138
structural, 75
AIB, See Academy of International Business (AIB)
Alliance networks, 522
foreign, 529
international, 530
Alliance performance, 133, 267
international, 133, 538
Alliance success, 113–114
Alliances
domestic interfirm, 529
individual, 522
initiating, 522
international, 181, 523, 529–531
non-domestic, 526, 529
Allocation
effective, 522
headquarters resource, 131, 467
joint, 33
nonmarket, 466
American economic growth, 470
Asset specificity, 255, 257, 259–260, 262–263, 450, 466
Assets, 25, 29, 38, 245, 273, 275–277, 280, 299, 309, 415, 425, 427–429, 440–441, 520–521, 525
corporate, 498
firm’s, 283, 532
foreign, 534
generating, 428
intermediary, 280
knowledge-related, 349
local, 180, 277, 279, 282, 293
sharing proprietary, 162
strategic, 19, 31, 152, 237, 290
tangible, 254
transferable, 514
undesired, 273, 277, 280, 286
Bargaining costs, 36–37, 446, 450–457, 460, 462–464
Bargaining costs and monitoring costs, 36–37, 454, 460, 462–464
Barriers, 92, 94, 189, 207, 212, 335, 409, 439, 472, 520–521, 525
cultural, 63, 86, 178, 419
institutional systems erect, 23, 129
Behavior
anti-competitive, 213
buyer’s, 217
combined firm’s, 502
consumer, 496, 510
consumer’s, 496, 509
conventional, 228
decision-making, 95
effective, 77
foreign market entry, 65, 266
ineffective, 85
international, 226, 234
intra-team, 389, 397
irresponsible, 364
loyal, 400
managerial, 101, 468
organizational, 66, 72, 94, 103, 105, 221, 294, 400–402
out-group, 380
predictive, 64
respective, 386
responsible, 19
small group, 42
social, 72
team learning, 400
Benefits
additional, 115
earlier-discussed, 413
intangible, 510
long-recognized, 410
perceived, 137, 141
potential, 113, 142, 248, 298, 524
recognized, 522
relative, 139–140
signaling, 410
Biases
common method, 167, 252, 264, 268, 454, 469
self-reporting, 252
social desirability, 253
subconscious, 62
Bonding costs, 36–37, 452, 454–456, 460, 462–465
Business
conduct, 210
cross-border, 96
everyday, 372
global, 11
independent, 414
local, 165
publishing, 477
retail, 438
small, 432
Business environment
foreign, 214
international, 198
local, 164
Business operations
international, 518
large-scale, 248
Business partners
distant, 214
domestic, 215
focal, 113
foreign, 208, 210, 213, 215
international, 210
potential, 214
Business relationship learning and commitment, 441
Business relationships, 27, 207, 209, 212–214, 437
international, 130
potential, 80
Business-to-business relationships, 217
Buyers
distant, 219
international, 25, 207–209, 218
organizational, 27, 213, 217
Capabilities
combinative, 345
demonstrated robust, 482
effective R&D, 360
firm-specific, 291
high R&D, 246
higher order, 39, 523
managerial, 141
natural, 143
organizational, 265, 308
redeploying, 521
strategic, 19
strengthened international competitive, 228
subsidiary’s, 345
supplement, 523
tacit, 359
technological, 331, 345, 351
CB. See Cross-border (CB)
CBAs. See Cross-border acquisitions (CBAs)
China’s investments, 230, 233
total, 229–230
China’s number, 232
China’s ODI motivations, 236
China’s outward, 237
China’s outward FDI, 227–230, 233
Chinese firms, 31, 132, 235, 237, 333, 335
Chinese MNEs, 31, 228–229, 232, 234
Cluster
compatible home, 128
cultural, 118, 120, 128, 168, 170
five, 117
institutional, 23, 118, 123, 125
neutral home, 123
Cluster algorithm, 116
distance-based, 116
Cluster combinations, 120–121
Cluster formation, 89, 132, 181, 205
Cognitive fluency, 216
Common method variance (CMV), 179, 252, 392, 400, 454, 467
Communication, 75, 77, 79–80, 84, 109, 111, 188–190, 208, 210–213, 215, 219, 450–451, 474, 484, 486
blocks, 76
close, 452
costs, 76, 448
critical, 95
cross-national, 56
effective, 69, 75, 77, 212
electronic, 210
failure, 450
increased, 463
theory, 212
Communication costs, 76, 448
Communication failure, 450
Communication theory, 212
Companies
acquiring, 167, 169
domestic, 284, 349
editorial, 482
gas, 230
individual, 229
international, 470
investing, 162, 229
local, 248
studied, 521
technology, 230
Company culture, common, 452–453, 465
Compatibility concept, 116
Compatibility, institutional, 17, 123
Complementarity
capability, 201
organizational, 132
Complementary assets, 249, 521
exploiting, 538
Complementary resources, 114, 244, 306
local, 246–247
Complexity
cognitive, 59, 64–65
cultural, 451
organizational, 364, 409
world’s, 73
Confirmatory factor analysis (CFA), 36, 100, 252, 455
Conflict
level of, 33, 373–374, 387
mediating role of, 387
relational, 380–381, 384, 387–388, 391
Consequences
behavioral, 420
cultural, 66
researched, 384
Consumer racism, 514
Consumer responses, 441, 496
Consumer’s choices, 509
Consumers
analyzing local country, 495
conscious, 81
local, 496
potential, 437
tease, 438
Contracts
complete, 80
enforcing, 213
formal, 360
Contributions
classical, 490
comparative, 241
distinctive, 356
following, 138
intended, 253
significant, 354
theoretical, 49
unique, 60–61
worthwhile, 151
Coordination, distance hinder, 467
Corporate culture
common, 452
entrepreneurial, 346
Corporate social responsibility (CSR), 32, 34, 363–371, 373–378, 410, 420, 499, 501, 512
Costs
administrative, 305
associated, 307
co-owner-related, 164
contractual, 139
direct, 112, 453, 462
due-diligence, 140
explicit, 453
extra, 446, 451–452
managerial, 409
physical, 208
relative, 150
switching, 513
transport, 89
unavoidable, 428
Costs of distance, 27–31
Cross-border (CB), 19, 23–24, 26–27, 130–132, 181–187, 201, 205–206, 235–236, 292–293, 297–299, 313–315, 331–333, 495–497, 499–501, 509–515
acquisition activities, 309
acquisition by Finnish MNEs, 315
acquisition information, 309
acquisition/majority CB acquisition by acquiring MNEs, 313
acquisitions, 297–301, 304–313, 315, 317, 320, 322–323, 330–331
sacquisition equity, 297, 310
Cross-border acquisition abandonment, 131, 293, 333
Cross-border acquisition literature, 497
Cross-border acquisition performance, 183, 185, 187, 189, 191, 193, 195, 197, 199, 201, 203, 205, 469, 492, 514
Cross-border acquisitions, 23–24, 26–27, 179, 181, 183–184, 235–236, 297, 299, 331–333, 335, 495–497, 499–501, 503, 505, 509–511
Cross-border (CB), 19, 23–24, 26–27, 130–132, 181–187, 201, 205–206, 235–236, 292–293, 297–299, 313–315, 331–333, 495–497, 499–501, 509–515
acquisition activities, 309
acquisition by Finnish MNEs, 315
acquisition information, 309
acquisition/majority CB acquisition by acquiring MNEs, 313
sacquisition equity, 297, 310
Cross-border acquisitions (CBAs), 23–24, 26–27, 179, 181, 183–184, 235–236, 297–301, 299, 304–313, 315, 317, 320, 322–323, 330–331, 331–333, 335, 495–497, 499–501, 503, 505, 509–511
abandonment, 131, 293, 333
analyzed, 331
announcements, 193, 196
context of, 306, 308
determinants of, 299, 304
distance on equity commitment in, 305, 308–309
equity commitment in, 299, 305, 307–310, 318, 330
in host country, 315
literature, 497
long-term, 201
in low-tech industries, 312
managing, 188
minority, 312, 318, 323, 330
operations by US bidder firms, 198
ownership choices in, 299–300
performance, 183, 185, 187, 189, 191, 193, 195, 197, 199, 201, 203, 205, 469, 492, 514
performing, 192
preferred majority, 318
preferred partial, 315
ranging, 300
Cross-country distance, 31, 403–406, 409–413, 416, 418
Cultural and psychic distance, 24–27
Cultural compatibility, 17, 22–23, 107–109, 111, 113, 115–117, 119, 121–123, 125, 127, 129, 131, 133
Cultural differences, 39, 42, 67, 87, 90, 92, 100–101, 133, 182, 184–185, 187, 211, 220–221, 422–423, 500–503
higher, 451
national, 89, 104
Cultural differences and capability transfer in cross-border acquisitions, 201
Cultural differences influence, 481
Cultural distance
added, 66, 88, 131, 421, 468
defined, 165
deviations in managers’ perceptions of, 95, 98
dimension of, 25, 98–99
double-edged sword of, 132, 422, 514
effect of, 25, 68, 104, 154, 211, 234, 323, 423, 493–495, 507
influence of, 99, 234, 511
marginal, 422
national, 53, 103, 205, 220, 421, 469, 492, 514
objective, 25, 96, 102
operationalized, 31, 169
perceived, 97, 101–102
reliable measure of, 25, 92
role of, 25, 64
Cultural distance deviation, 97–99
Cultural misfit, 89
Culture
distant, 510
quantifying, 105
Demands
coherent, 372
environmental, 92, 95
global, 367
inconsistent, 372
institutional, 372, 377
internal, 33, 365, 374–375
plural, 372
prioritization of, 363, 371
prioritizing, 369, 372
Demands of local stakeholders, 364, 368, 373
Developed economies, 24, 28, 165, 312, 318, 320, 323
Distance effects, 41, 51, 71, 109, 304, 355
continuous, 32, 356
differential, 32
institutional, 30, 133, 154, 281, 296
negative, 22, 108, 323
Distance stimuli
country-level psychic, 37, 473, 477
institutional, 35, 405, 412, 418
measure psychic, 65, 202, 220, 266, 420
teams process, 413
Economic growth, 89, 110–111, 169, 171, 315–316, 319, 321, 324, 326, 328, 351, 420
Economic opportunities, 320
Economic performance, 89, 103, 109, 122, 132, 154, 268, 295, 336, 538
Emerging market institutions, 141
Emerging market MNEs, 30, 227, 229, 231, 233, 235, 237
Enforcement structures
alternative, 78
formal, 78, 82
Entry mode research
augmenting TCE-based, 28
foreign, 105, 295
international, 179, 202, 265, 292
Entry-mode research, previous, 240
Environment, political, 99, 106
Environmental characteristics, 91, 93
Equity, 139, 150, 159, 161, 179, 242, 247, 279, 281, 292–293, 300, 302, 306–308, 332, 334
Equity choice, 299
Equity control, 67, 267, 302–303
partial, 301–303
partial/full, 302
Euromoney Country Risk (ECR), 167, 169
Firm performance, 99–100
Firms
accounting, 275
acquired, 167, 199
advanced economy, 358
co-located, 342
developed economy, 304
domestic, 108–109, 131, 449, 451, 469
embedded, 534
external, 260, 347
filed, 466
focal, 283
interconnected, 537
international, 193
medium-sized, 65
Foreign acquisitions
analyzed, 178
analyzing survival of, 177–178
context of, 159, 162, 177
divested, 158
success of, 181, 205, 422
survival of, 166–168, 171, 176
value of, 158
Foreign direct investments (FDI), 2, 109–112, 114–116, 129, 131–132, 158–161, 177–179, 201–202, 225–226, 235–237, 295–296, 336, 469–470, 518, 520
behaviors, 178
distance, costs of distance, and, 111–113
flows, 22–23, 107, 119–120, 125, 129, 474
inflows, 110–111, 122, 125, 128, 333, 446
institutional and cultural profiles and, 109–111
location choice, 132, 233, 335
location choice of Chinese multinationals, 236
number, 229
outflows, 128
project, 114, 242, 353
sentry mode, 420
similarity, compatibility, 114–116
survival, 520
theory, 535
Foreign direct investments
distance, costs of distance, and, 111–113
institutional and cultural profiles and, 109–111
similarity, compatibility, 114–116
Foreign market commitments, 162
Foreign ownership, 269
Foreign subsidiaries, 162–163, 179–180, 239–240, 242–243, 247–248, 262–263, 265–266, 341–352, 355–357, 359–360, 446–447, 463–465, 524–526, 528–529, 531–533
GDP, See Gross domestic product (GDP)
Geographic differences, 404, 410, 412
Geographic distance, 29, 32, 42, 49, 56–57, 59, 63, 208, 275, 283, 288–289, 305–307, 332, 335–336, 406–407
moderate, 302
replaced, 50
Global orientation, 2, 6, 9
Global outsourcing, 361
Globalization, 9–10, 13, 65, 87, 104, 153, 181, 198, 220, 359, 446, 538
Governance costs
categories of, 37, 452, 464
dynamics, 445–446, 448, 452
effects, 451
elevated, 449–450
ex post, 36, 450–451
in foreign direct investments, 470
in headquarters-subsidiary relationships, 467
increased ex post, 462
modeling, 464
perceived, 455
and performance, 449, 464
quantifying, 450
treated, 452
variables, 456
zero, 450
Governance indicators
cWorldwide, 479
individual, 492
Governance infrastructure, 110, 131, 334, 491
Governance infrastructure moderates, 110
Governance quality, 105, 295
Governance structures, 36, 244, 248–249, 261–262, 447
alternative, 240
cost-efficient, 260
efficient, 449
hierarchical, 240–242, 244, 246, 261–263, 450
Group faultlines, 381, 399, 402
Gross domestic product (GDP), 96, 106, 169, 283, 474, 478–482, 486
growth rate, 169–170
per capita, 121, 146, 147, 170, 177, 283, 311, 474, 479–482
Groups
community, 136
country-level, 261
homogeneous, 504
homogenous, 81
large, 101
organizational, 66, 401
overlapping, 82
reference, 169, 173, 498
social, 402
Hazards
institutional, 263, 295
relational, 142–143, 150
Host countries
developing, 137
distant, 233
emerging, 24, 30
emerging market, 30, 138
foreign, 25
high risk, 315
multiple, 177
particular, 164
potential, 129, 344
researched, 233
respective, 342
subsidiary’s, 370
Host country development, 165–166
Host country experience, 164–165
Host country firms, 361
Host country knowledge, 348
Host country level, 160
Host institutions, 139
Human capital, 146–147, 202, 331, 370
Human resource management policies, 13
Individualism, 97, 128, 169, 407
Industrial activity, 350, 351
Industrial development, 24, 26, 29, 56, 185, 186, 188, 189, 190, 194, 198
Industries
chemical, 169
food, 435
publishing, 477–478
Industry development, 481
Information asymmetries, 29, 139, 140, 237, 274, 275, 276, 277, 278, 280, 290
Information costs, 36, 37, 105, 455
Institutional distance (IDIST), 145
Institutional diversity, 71–72
Institutional overlap, 70
International acquisitions, 131–133, 179, 199, 202–203, 410, 422, 493
International alliances, 181, 523, 529–531
International business (IB)
Coleman’s boat to distance research in, 50–61
cultural distance in, 93–94
data collection procedure, 97
data profile and research setting, 96
deviations in managers’ perceptions of, 95–96
distance research in
gravity models, 48–49
Kogut and Singh Index, 50
turning point, 49
literature, 48
objective vs. perceptual cultural distance, 94–95
International human resource management (IHRM), 3, 7, 10
International joint ventures (IJVs), 3, 7, 10
Joint ventures (JVs), 160
Knowledge-related assets, 349
Low equity acquisitions, 331
Loyal behavior, 400
Managerial behavior, 101, 468
Negative Regulatory Institutional Distance, 141–142
Neo-institutional sociology (NIS), 70, 74–75
and international management, 75–76
New institutional economics (NIE), 70, 72–73
and international management, 74
Non-domestic alliances, 526, 529
Organizational behavior, 66, 72, 94, 103, 105, 221, 294, 400–402
Organizational capabilities, 265, 308
Partner characteristics, 113–114
Return on assets (ROA), 99
Serial acquirers, 204
Signaling benefits, 410
Single market agreement, 138
Small and medium enterprises (SMEs), 138
Small group behavior, 42
Social behavior, 72
Social desirability, 253
Structural agreement, 75
Subsidiary, 346
Transaction costs vs. transaction thickness, 84–85
Value of distance, 31–36
Wholly-owned subsidiary (WOS), 160
Ability
cognitive
, 388
competitive
, 184
corporate
, 499
decision-making
, 387
decreasing
, 358
differential
, 346
firm’s
, 211, 349, 416
limited processing
, 388
reduced
, 34, 365
subsidiary’s
, 346
unique
, 22, 83
Abnormal return (AR)
, 193, 195–196
Academy of International Business (AIB)
, 65
Acquirers
, 26–27, 39, 157–158, 185, 189, 191–194, 199, 202, 277–278, 286, 305, 495, 497, 500–507, 510–511
foreign
, 278, 495, 503, 509, 511
remote
, 306
serial
, 204
Acquirers and targets
, 193, 278
Acquirers mitigate
, 275
Acquiring firms
, 26, 39, 158–160, 166, 168–169, 176–177, 185, 201, 311, 503, 509
foreign
, 495
Acquisition activity
, 284
foreign
, 336
Acquisition behavior
, 293
Acquisition benefits
, 510
Acquisition decisions
, 290
Acquisition experience
cross-border
, 501
previous
, 200
Acquisition experience moderates
, 301
Acquisition ownership
, 323
decision
, 297, 299
strategy
, 25
Acquisition performance
, 196, 202, 332, 500, 512, 515
border
, 201
Acquisition process
, 200, 496–497, 500
post-cross-border
, 323
Acquisitions
border
, 204, 501
corporate
, 42, 201, 205, 336
emerging market FDI
, 179, 293, 333
experience in
, 196–197, 199–200
following horizontal
, 292, 512
foreign market
, 335
high-technology
, 203
international, 131–133
, 179, 199, 202–203, 410, 422, 493
low equity
, 331
majority
, 23, 309–310, 313, 319–320, 324–325, 328–329
minority
, 23, 300, 310, 312
outward
, 335
post
, 280
Additional rents, 521–522
Additivity vs. arbitrage, 83–84
Agreement
, 77, 85, 217, 373, 406, 450–451, 505, 507, 526
single market
, 138
structural
, 75
AIB, See Academy of International Business (AIB)
Alliance networks
, 522
foreign
, 529
international
, 530
Alliance performance
, 133, 267
international
, 133, 538
Alliance success, 113–114
Alliances
domestic interfirm
, 529
individual
, 522
initiating
, 522
international
, 181, 523, 529–531
non-domestic
, 526, 529
Allocation
effective
, 522
headquarters resource
, 131, 467
joint
, 33
nonmarket
, 466
American economic growth
, 470
Asset specificity
, 255, 257, 259–260, 262–263, 450, 466
Assets
, 25, 29, 38, 245, 273, 275–277, 280, 299, 309, 415, 425, 427–429, 440–441, 520–521, 525
corporate
, 498
firm’s
, 283, 532
foreign
, 534
generating
, 428
intermediary
, 280
knowledge-related
, 349
local
, 180, 277, 279, 282, 293
sharing proprietary
, 162
strategic
, 19, 31, 152, 237, 290
tangible
, 254
transferable
, 514
undesired
, 273, 277, 280, 286
Bargaining costs
, 36–37, 446, 450–457, 460, 462–464
Bargaining costs and monitoring costs
, 36–37, 454, 460, 462–464
Barriers
, 92, 94, 189, 207, 212, 335, 409, 439, 472, 520–521, 525
cultural
, 63, 86, 178, 419
institutional systems erect
, 23, 129
Behavior
anti-competitive
, 213
buyer’s
, 217
combined firm’s
, 502
consumer
, 496, 510
consumer’s
, 496, 509
conventional
, 228
decision-making
, 95
effective
, 77
foreign market entry
, 65, 266
ineffective
, 85
international
, 226, 234
intra-team
, 389, 397
irresponsible
, 364
loyal
, 400
managerial
, 101, 468
organizational
, 66, 72, 94, 103, 105, 221, 294, 400–402
out-group
, 380
predictive
, 64
respective
, 386
responsible
, 19
small group
, 42
social
, 72
team learning
, 400
Benefits
additional
, 115
earlier-discussed
, 413
intangible
, 510
long-recognized
, 410
perceived
, 137, 141
potential
, 113, 142, 248, 298, 524
recognized
, 522
relative
, 139–140
signaling
, 410
Biases
common method
, 167, 252, 264, 268, 454, 469
self-reporting
, 252
social desirability
, 253
subconscious
, 62
Bonding costs
, 36–37, 452, 454–456, 460, 462–465
Business
conduct
, 210
cross-border
, 96
everyday
, 372
global
, 11
independent
, 414
local
, 165
publishing
, 477
retail
, 438
small
, 432
Business environment
foreign
, 214
international
, 198
local
, 164
Business operations
international
, 518
large-scale
, 248
Business partners
distant
, 214
domestic
, 215
focal
, 113
foreign
, 208, 210, 213, 215
international
, 210
potential
, 214
Business relationship learning and commitment
, 441
Business relationships
, 27, 207, 209, 212–214, 437
international
, 130
potential
, 80
Business-to-business relationships
, 217
Buyers
distant
, 219
international
, 25, 207–209, 218
organizational
, 27, 213, 217
Capabilities
combinative
, 345
demonstrated robust
, 482
effective R&D
, 360
firm-specific
, 291
high R&D
, 246
higher order
, 39, 523
managerial
, 141
natural
, 143
organizational
, 265, 308
redeploying
, 521
strategic
, 19
strengthened international competitive
, 228
subsidiary’s
, 345
supplement
, 523
tacit
, 359
technological
, 331, 345, 351
CB. See Cross-border (CB)
CBAs. See Cross-border acquisitions (CBAs)
China’s investments
, 230, 233
total
, 229–230
China’s number
, 232
China’s ODI motivations
, 236
China’s outward
, 237
China’s outward FDI
, 227–230, 233
Chinese firms
, 31, 132, 235, 237, 333, 335
Chinese MNEs
, 31, 228–229, 232, 234
Cluster
compatible home
, 128
cultural
, 118, 120, 128, 168, 170
five
, 117
institutional
, 23, 118, 123, 125
neutral home
, 123
Cluster algorithm
, 116
distance-based
, 116
Cluster combinations
, 120–121
Cluster formation
, 89, 132, 181, 205
Cognitive fluency
, 216
Common method variance (CMV)
, 179, 252, 392, 400, 454, 467
Communication
, 75, 77, 79–80, 84, 109, 111, 188–190, 208, 210–213, 215, 219, 450–451, 474, 484, 486
blocks
, 76
close
, 452
costs
, 76, 448
critical
, 95
cross-national
, 56
effective
, 69, 75, 77, 212
electronic
, 210
failure
, 450
increased
, 463
theory
, 212
Communication costs
, 76, 448
Communication failure
, 450
Communication theory
, 212
Companies
acquiring
, 167, 169
domestic
, 284, 349
editorial
, 482
gas
, 230
individual
, 229
international
, 470
investing
, 162, 229
local
, 248
studied
, 521
technology
, 230
Company culture, common
, 452–453, 465
Compatibility concept
, 116
Compatibility, institutional
, 17, 123
Complementarity
capability
, 201
organizational
, 132
Complementary assets
, 249, 521
exploiting
, 538
Complementary resources
, 114, 244, 306
local
, 246–247
Complexity
cognitive
, 59, 64–65
cultural
, 451
organizational
, 364, 409
world’s
, 73
Confirmatory factor analysis (CFA)
, 36, 100, 252, 455
Conflict
level of
, 33, 373–374, 387
mediating role of
, 387
relational
, 380–381, 384, 387–388, 391
Consequences
behavioral
, 420
cultural
, 66
researched
, 384
Consumer racism
, 514
Consumer responses
, 441, 496
Consumer’s choices
, 509
Consumers
analyzing local country
, 495
conscious
, 81
local
, 496
potential
, 437
tease
, 438
Contracts
complete
, 80
enforcing
, 213
formal
, 360
Contributions
classical
, 490
comparative
, 241
distinctive
, 356
following
, 138
intended
, 253
significant
, 354
theoretical
, 49
unique
, 60–61
worthwhile
, 151
Coordination, distance hinder
, 467
Corporate culture
common
, 452
entrepreneurial
, 346
Corporate social responsibility (CSR)
, 32, 34, 363–371, 373–378, 410, 420, 499, 501, 512
Costs
administrative
, 305
associated
, 307
co-owner-related
, 164
contractual
, 139
direct
, 112, 453, 462
due-diligence
, 140
explicit
, 453
extra
, 446, 451–452
managerial
, 409
physical
, 208
relative
, 150
switching
, 513
transport
, 89
unavoidable
, 428
Costs of distance
, 27–31
Cross-border (CB)
, 19, 23–24, 26–27, 130–132, 181–187, 201, 205–206, 235–236, 292–293, 297–299, 313–315, 331–333, 495–497, 499–501, 509–515
acquisition activities
, 309
acquisition by Finnish MNEs
, 315
acquisition information
, 309
acquisition/majority CB acquisition by acquiring MNEs
, 313
acquisitions
, 297–301, 304–313, 315, 317, 320, 322–323, 330–331
sacquisition equity
, 297, 310
Cross-border acquisition abandonment
, 131, 293, 333
Cross-border acquisition literature
, 497
Cross-border acquisition performance
, 183, 185, 187, 189, 191, 193, 195, 197, 199, 201, 203, 205, 469, 492, 514
Cross-border acquisitions
, 23–24, 26–27, 179, 181, 183–184, 235–236, 297, 299, 331–333, 335, 495–497, 499–501, 503, 505, 509–511
Cross-border (CB)
, 19, 23–24, 26–27, 130–132, 181–187, 201, 205–206, 235–236, 292–293, 297–299, 313–315, 331–333, 495–497, 499–501, 509–515
acquisition activities
, 309
acquisition by Finnish MNEs
, 315
acquisition information
, 309
acquisition/majority CB acquisition by acquiring MNEs
, 313
sacquisition equity
, 297, 310
Cross-border acquisitions (CBAs)
, 23–24, 26–27, 179, 181, 183–184, 235–236, 297–301, 299, 304–313, 315, 317, 320, 322–323, 330–331, 331–333, 335, 495–497, 499–501, 503, 505, 509–511
abandonment
, 131, 293, 333
analyzed
, 331
announcements
, 193, 196
context of
, 306, 308
determinants of
, 299, 304
distance on equity commitment in
, 305, 308–309
equity commitment in
, 299, 305, 307–310, 318, 330
in host country
, 315
literature
, 497
long-term
, 201
in low-tech industries
, 312
managing
, 188
minority
, 312, 318, 323, 330
operations by US bidder firms
, 198
ownership choices in
, 299–300
performance
, 183, 185, 187, 189, 191, 193, 195, 197, 199, 201, 203, 205, 469, 492, 514
performing
, 192
preferred majority
, 318
preferred partial
, 315
ranging
, 300
Cross-country distance
, 31, 403–406, 409–413, 416, 418
Cultural and psychic distance
, 24–27
Cultural compatibility
, 17, 22–23, 107–109, 111, 113, 115–117, 119, 121–123, 125, 127, 129, 131, 133
Cultural differences
, 39, 42, 67, 87, 90, 92, 100–101, 133, 182, 184–185, 187, 211, 220–221, 422–423, 500–503
higher
, 451
national
, 89, 104
Cultural differences and capability transfer in cross-border acquisitions
, 201
Cultural differences influence
, 481
Cultural distance
added
, 66, 88, 131, 421, 468
defined
, 165
deviations in managers’ perceptions of
, 95, 98
dimension of
, 25, 98–99
double-edged sword of
, 132, 422, 514
effect of
, 25, 68, 104, 154, 211, 234, 323, 423, 493–495, 507
influence of
, 99, 234, 511
marginal
, 422
national
, 53, 103, 205, 220, 421, 469, 492, 514
objective
, 25, 96, 102
operationalized
, 31, 169
perceived
, 97, 101–102
reliable measure of
, 25, 92
role of
, 25, 64
Cultural distance deviation
, 97–99
Cultural misfit
, 89
Culture
distant
, 510
quantifying
, 105
Demands
coherent
, 372
environmental
, 92, 95
global
, 367
inconsistent
, 372
institutional
, 372, 377
internal
, 33, 365, 374–375
plural
, 372
prioritization of
, 363, 371
prioritizing
, 369, 372
Demands of local stakeholders
, 364, 368, 373
Developed economies
, 24, 28, 165, 312, 318, 320, 323
Distance effects
, 41, 51, 71, 109, 304, 355
continuous
, 32, 356
differential
, 32
institutional
, 30, 133, 154, 281, 296
negative
, 22, 108, 323
Distance stimuli
country-level psychic
, 37, 473, 477
institutional
, 35, 405, 412, 418
measure psychic
, 65, 202, 220, 266, 420
teams process
, 413
Economic growth
, 89, 110–111, 169, 171, 315–316, 319, 321, 324, 326, 328, 351, 420
Economic opportunities
, 320
Economic performance
, 89, 103, 109, 122, 132, 154, 268, 295, 336, 538
Emerging market institutions
, 141
Emerging market MNEs
, 30, 227, 229, 231, 233, 235, 237
Enforcement structures
alternative
, 78
formal
, 78, 82
Entry mode research
augmenting TCE-based
, 28
foreign
, 105, 295
international
, 179, 202, 265, 292
Entry-mode research, previous
, 240
Environment, political
, 99, 106
Environmental characteristics
, 91, 93
Equity
, 139, 150, 159, 161, 179, 242, 247, 279, 281, 292–293, 300, 302, 306–308, 332, 334
Equity choice
, 299
Equity control
, 67, 267, 302–303
partial
, 301–303
partial/full
, 302
Euromoney Country Risk (ECR)
, 167, 169
Firm performance
, 99–100
Firms
accounting
, 275
acquired
, 167, 199
advanced economy
, 358
co-located
, 342
developed economy
, 304
domestic
, 108–109, 131, 449, 451, 469
embedded
, 534
external
, 260, 347
filed
, 466
focal
, 283
interconnected
, 537
international
, 193
medium-sized
, 65
Foreign acquisitions
analyzed
, 178
analyzing survival of
, 177–178
context of
, 159, 162, 177
divested
, 158
success of
, 181, 205, 422
survival of
, 166–168, 171, 176
value of
, 158
Foreign direct investments (FDI)
, 2, 109–112, 114–116, 129, 131–132, 158–161, 177–179, 201–202, 225–226, 235–237, 295–296, 336, 469–470, 518, 520
behaviors
, 178
distance, costs of distance, and
, 111–113
flows
, 22–23, 107, 119–120, 125, 129, 474
inflows
, 110–111, 122, 125, 128, 333, 446
institutional and cultural profiles and
, 109–111
location choice
, 132, 233, 335
location choice of Chinese multinationals
, 236
number
, 229
outflows
, 128
project
, 114, 242, 353
sentry mode
, 420
similarity, compatibility
, 114–116
survival
, 520
theory
, 535
Foreign direct investments
distance, costs of distance, and
, 111–113
institutional and cultural profiles and
, 109–111
similarity, compatibility
, 114–116
Foreign market commitments
, 162
Foreign ownership
, 269
Foreign subsidiaries
, 162–163, 179–180, 239–240, 242–243, 247–248, 262–263, 265–266, 341–352, 355–357, 359–360, 446–447, 463–465, 524–526, 528–529, 531–533
GDP, See Gross domestic product (GDP)
Geographic differences
, 404, 410, 412
Geographic distance
, 29, 32, 42, 49, 56–57, 59, 63, 208, 275, 283, 288–289, 305–307, 332, 335–336, 406–407
moderate
, 302
replaced
, 50
Global orientation
, 2, 6, 9
Global outsourcing
, 361
Globalization
, 9–10, 13, 65, 87, 104, 153, 181, 198, 220, 359, 446, 538
Governance costs
categories of
, 37, 452, 464
dynamics
, 445–446, 448, 452
effects
, 451
elevated
, 449–450
ex post
, 36, 450–451
in foreign direct investments
, 470
in headquarters-subsidiary relationships
, 467
increased ex post
, 462
modeling
, 464
perceived
, 455
and performance
, 449, 464
quantifying
, 450
treated
, 452
variables
, 456
zero
, 450
Governance indicators
cWorldwide
, 479
individual
, 492
Governance infrastructure
, 110, 131, 334, 491
Governance infrastructure moderates
, 110
Governance quality
, 105, 295
Governance structures
, 36, 244, 248–249, 261–262, 447
alternative
, 240
cost-efficient
, 260
efficient
, 449
hierarchical
, 240–242, 244, 246, 261–263, 450
Group faultlines
, 381, 399, 402
Gross domestic product (GDP)
, 96, 106, 169, 283, 474, 478–482, 486
growth rate
, 169–170
per capita
, 121, 146, 147, 170, 177, 283, 311, 474, 479–482
Groups
community
, 136
country-level
, 261
homogeneous
, 504
homogenous
, 81
large
, 101
organizational
, 66, 401
overlapping
, 82
reference
, 169, 173, 498
social
, 402
Hazards
institutional
, 263, 295
relational
, 142–143, 150
Host countries
developing
, 137
distant
, 233
emerging
, 24, 30
emerging market
, 30, 138
foreign
, 25
high risk
, 315
multiple
, 177
particular
, 164
potential
, 129, 344
researched
, 233
respective
, 342
subsidiary’s
, 370
Host country development
, 165–166
Host country experience
, 164–165
Host country firms
, 361
Host country knowledge
, 348
Host country level
, 160
Host institutions
, 139
Human capital
, 146–147, 202, 331, 370
Human resource management policies
, 13
Individualism
, 97, 128, 169, 407
Industrial activity
, 350, 351
Industrial development
, 24, 26, 29, 56, 185, 186, 188, 189, 190, 194, 198
Industries
chemical
, 169
food
, 435
publishing
, 477–478
Industry development
, 481
Information asymmetries
, 29, 139, 140, 237, 274, 275, 276, 277, 278, 280, 290
Information costs
, 36, 37, 105, 455
Institutional distance (IDIST)
, 145
Institutional diversity
, 71–72
Institutional overlap
, 70
International acquisitions
, 131–133, 179, 199, 202–203, 410, 422, 493
International alliances
, 181, 523, 529–531
International business (IB)
Coleman’s boat to distance research in
, 50–61
cultural distance in
, 93–94
data collection procedure
, 97
data profile and research setting
, 96
deviations in managers’ perceptions of
, 95–96
distance research in
gravity models
, 48–49
Kogut and Singh Index
, 50
turning point
, 49
literature
, 48
objective vs. perceptual cultural distance
, 94–95
International human resource management (IHRM)
, 3, 7, 10
International joint ventures (IJVs)
, 3, 7, 10
Joint ventures (JVs)
, 160
Knowledge-related assets
, 349
Low equity acquisitions
, 331
Loyal behavior
, 400
Managerial behavior
, 101, 468
Negative Regulatory Institutional Distance
, 141–142
Neo-institutional sociology (NIS)
, 70, 74–75
and international management
, 75–76
New institutional economics (NIE)
, 70, 72–73
and international management
, 74
Non-domestic alliances
, 526, 529
Organizational behavior
, 66, 72, 94, 103, 105, 221, 294, 400–402
Organizational capabilities
, 265, 308
Partner characteristics
, 113–114
Return on assets (ROA)
, 99
Serial acquirers
, 204
Signaling benefits
, 410
Single market agreement
, 138
Small and medium enterprises (SMEs)
, 138
Small group behavior
, 42
Social behavior
, 72
Social desirability
, 253
Structural agreement
, 75
Subsidiary
, 346
Transaction costs vs. transaction thickness
, 84–85
Value of distance
, 31–36
Wholly-owned subsidiary (WOS)
, 160
- Prelims
- Prologue: Voyages of Self-Discovery: A Reflection on Four Decades of Research on Expatriation and Cross-Cultural Interactions
- Distance in International Business Studies: Concept, Costs, and Value
- The Concept of Distance
- Are We at a Turning Point for Distance Research in International Business Studies?
- Institutional overlap as basis for International Business
- How Do Managers’ Deviant Perceptions of “Cultural Distance” Relate to the Performance of International SMEs?
- The Concept of Institutional and Cultural Compatibility
- The direction of regulatory institutional distance and MNE’s subsidiary ownership strategy: Re-examining theory and evidence in the case of emerging markets
- The Cost of Cultural and Psychic Distance
- Ownership Strategy and Subsidiary Survival in Foreign Acquisitions: The Moderating Effects of Experience, Cultural Distance, and Host Country Development
- The psychic distance hazards in cross-border acquisition performance: An empirical study of cross-border acquisitions from 26 countries
- Why does psychic distance inhibit international buyer-supplier relationships?
- The Cost of Institutional Distance
- Institutional Distance and Location Choice: New Empirical Evidence from Emerging-Market MNEs
- Firm Resources, Institutional Distance, and the Choice of Entry Mode
- How the Direction of Institutional Distance Influences Foreign Entry Mode Choices: An Information Economics Perspective
- Equity Commitment in Cross-Border Acquisitions: The Influence of Distance and Organizational Resources
- The Value of Distance
- The geography of international knowledge sourcing: Looking back and moving forward
- CSR Implementation in MNEs: The Role of Distance and Prioritization of Demands
- Breaking Bad? The Effect of Faultline Strength and Distance on Relationship Conflict, and Performance in teams. A Conditional Process Model
- When Distance is Good: An Upper-Echelons Perspective on the Role of Distance in Internationalization
- How to internationalize a traditional Portuguese style food – Liability or asset of Portugueseness?
- Alternative Lenses for IB Research
- Liabilities of distance: Governance cost dynamics in MNE headquarters-subsidiary relationships
- Reducing Psychic Distance Through Springboard Subsidiaries: An Exploratory Case Study
- Cultural Distance, Reputation Transferability and Cross Border Acquisitions: A Consumer Perspective
- Domestic Alliance Formation and the Foreign Divestment Decisions of Firms
- Index