Gangxiang Xu, Bin Guo, Wen Li and Xiaoting Wang
The purpose of this paper is to use the theoretical perspective of structural inertia as a unique lens to study foreign sequential entry mode choices of multinational firms.
Abstract
Purpose
The purpose of this paper is to use the theoretical perspective of structural inertia as a unique lens to study foreign sequential entry mode choices of multinational firms.
Design/methodology/approach
It adopts quantitative analysis of a sample of 121 Chinese publicly listed firms with 564 foreign entry incidents in the 2001-2012 period to test the hypotheses.
Findings
The empirical results show that multinational firms have a tendency to adopt the same mode in the subsequent entry as the number of prior entry mode choice of a given type (joint venture (JV) in this study) increases. The results support the theoretical prediction that organizations repeat their past activities due to structural inertia. Moreover, such an inertia effect in foreign sequential entry mode choices becomes stronger for older multinational firms, larger multinational firms and state-owned multinational firms.
Research limitations/implications
Consistent with existing research, this study focuses on the entry mode choice between JV and wholly owned subsidiaries. However, it is better to examine the relationship identified in the study for different types of entry mode choices to assess result generalizability.
Practical implications
It reminds managers of multinational firms that they should be cautious to the influence of structural inertia that can be a barrier to strategic flexibility when they make entry mode choices.
Originality/value
The main contribution of this study resides in introducing structural inertia perspective to help understand the determinants of foreign sequential entry mode choices of multinational firms.
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Yueqi Wang, Bin Guo and Yanjie Yin
The purpose of this study is to explore organizational factors that act as antecedents of open innovation search. The authors aim to empirically examine whether the extent to…
Abstract
Purpose
The purpose of this study is to explore organizational factors that act as antecedents of open innovation search. The authors aim to empirically examine whether the extent to which the organizational slack is absorbed determines its influence on firms’ openness in innovation search. In addition, the authors also examine the moderating effect of absorptive capacity on the relationship between slack and open innovation search.
Design/methodology/approach
This study adopted secondary data from multiple sources (NBER, Compustat and US census) and then constructed a ten-year balanced panel dataset of 298 manufacturers. The generalized least square method was used to explore the determinants of open innovation search among manufacturing firms.
Findings
The results of this study reveal that the absorption level of organizational slack indeed determines the openness in innovation search. Specifically, absorbed slack negatively affects a firm’s openness in innovation search, whereas unabsorbed slack promotes open innovation search. Additionally, the relationship between absorbed slack and open innovation search will be less negative with the increase of absorptive capacity.
Originality/value
Different from most previous studies that have examined the performance effect of open search among high-tech and large enterprises, this study focuses on the antecedents of open search strategy in both high- and low-tech, large and small firms. The findings reveal that different forms of organizational slack divergently influence a firm’s open search strategy, contributing to the understanding of the relationship between organizational slack and knowledge search behavior in a broader context, as well as the understanding of the moderating effect of absorptive capacity.
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The purpose of this paper is to study the influence of different carbon chain lengths in coupling agents on the water resistance and compatibility of modified long afterglow…
Abstract
Purpose
The purpose of this paper is to study the influence of different carbon chain lengths in coupling agents on the water resistance and compatibility of modified long afterglow phosphors and attempt to obtain their modification model and mechanism.
Design/methodology/approach
Three saturated-fatty-acid (caprylic, lauric, stearic acid)-based Al-Zr CAs (coupling agent) was synthesised and applied to modify the long afterglow phosphors SrMgAl4O8:Eu2+,Dy3+.
Findings
Results show that the coated amount on phosphors decreased from 13.41 to 6.53 per cent with the increased carbon chain length of fatty acid, and the better water resistant and suitability with organic resin can be obtained by lauric-based Al-Zr CA.
Originality/value
Considering that the decomposition process of modified phosphor was related with the decomposition performance of corresponding coupling agents and original phosphor, a method was first proposed to calculate the coated amount on phosphors by thermogravimetric analyser parameters.
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Wen Li, Bin Guo and Gangxiang Xu
Based on the linkage-leverage-learning (LLL) framework developed by Mathews (2006), the purpose of this paper is to examine how linking, leveraging and learning capabilities…
Abstract
Purpose
Based on the linkage-leverage-learning (LLL) framework developed by Mathews (2006), the purpose of this paper is to examine how linking, leveraging and learning capabilities influence the choice of foreign-entry mode, and the way such influences are contingent on context factors in the emerging markets.
Design/methodology/approach
Contrary to a prior literature applying the LLL framework, which mainly used case studies, this paper adopts a quantitative approach and is based on a sample of 321 Chinese listed companies to test the hypotheses.
Findings
The results show that multinational firms from emerging markets (EMFs) with stronger LLL capabilities are more likely to choose the wholly owned mode in foreign entries. In addition, the relationship between linking capability and wholly owned entry mode choice is weaker at higher levels of cultural distance between home and host country. At the same time, the relationship between learning capability and wholly owned entry mode choice is weaker at higher levels of cultural distance between home and host country, and of institutional distance between prior entries and the focal entry.
Research limitations/implications
An entry mode strategy for firms without ownership advantages and the identification of boundary conditions for applying different LLL capabilities are recommended. The generalizability of the findings from a single-country setting still needs further validation with other emerging economies.
Originality/value
This paper treats internationalization of firms from emerging countries with a different perspective. The underlying idea in this study is that internationalization is not only a process for EMFs to utilize externally accessible assets abroad, but also a process of simultaneously combining internationalization with experiential learning and capability utilization in overseas markets. In addition, the authors also contribute to the literature by providing strong empirical evidence for validating the LLL model and extending the existing entry mode studies.
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Bin Guo, Xi Li, Tanfei Liu and Dong Wu
Supplier–supplier coopetition is vital to buyer innovation in reality. However, it has not received enough attention in prior research. Integrating the…
Abstract
Purpose
Supplier–supplier coopetition is vital to buyer innovation in reality. However, it has not received enough attention in prior research. Integrating the ability-motivation-opportunity framework of organizational learning perspective and the awareness-motivation-capability framework of competitive dynamics theory, this paper investigates the effect of supplier–supplier coopetition within supplier network on buyer innovation, as well as the contingent role of the relational attributes -- duration and tie strength dispersion of buyer–suppliers relationship at the supplier network level.
Design/methodology/approach
Testing this model on the secondary data of supply networks formed by 204 US listed buyer firms in SIC code 28, 35, 36 during 2008–2019, the authors utilize a fixed-effect regression model to investigate the relationship between supplier–supplier coopetition and the focal buyer's innovation.
Findings
The authors provide support for the positive influence of supplier–supplier cooperation on buyer innovation and an inverted U-shaped relationship between supplier–supplier competition and the focal buyer's innovation. The buyer–suppliers tie strength dispersion amplified the above two effects, and supplier–supplier cooperation mitigates the effect of supplier–supplier competition on the focal buyer's innovation.
Originality/value
Extending the traditional dyadic view to a network-level view via linking the supplier–supplier dyad and the buyer–suppliers dyad, this paper contributes to a better understanding of supplier–supplier coopetition and its impact on buyer innovation with learning and competitive tension as the underlying explanations, and validates the contingent role of buyer–suppliers relational attributes.
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Lingjia Li, Jing Dai, Bin Guo and Yongyi Shou
As the start of a new product development (NPD) process, the front fuzzy end (FFE) is believed to determine new product performance to a large extent. However, its effects on new…
Abstract
Purpose
As the start of a new product development (NPD) process, the front fuzzy end (FFE) is believed to determine new product performance to a large extent. However, its effects on new product performance, particularly in terms of quality and cost, lack empirical evidence in the extant literature. Moreover, the joint performance effects of the FFE and cross-functional interfaces in later NPD stages (i.e. product development and product launch) are largely overlooked and deserve further investigation. Therefore, this study aims to explore the direct effects of the FFE and later stages’ joint moderating effects on new product performance (i.e. quality and cost) from a holistic process view.
Design/methodology/approach
A conceptual model is proposed to hypothesize the FFE–new product performance relationships and the joint performance effects of cross-functional interface management. A sample of 196 firms from an international survey is used and hierarchical linear regression is employed to test the proposed hypotheses.
Findings
This study finds that FFE implementation contributes to both new product quality and cost performance. Moreover, interface management in multiple NPD stages has synergistic performance effects. Specifically, the FFE, customer involvement in product development and manufacturing flexibility in product launch jointly improve new product quality performance, while the FFE, supplier involvement in product development and manufacturing flexibility in product launch jointly improve new product cost performance.
Originality/value
This study extends the NPD literature by deepening the understanding of the key roles of the FFE on new product performance and evidencing the synergistic effects of cross-functional interfaces in multiple NPD stages. Further, this study also highlights the differential joint moderating effects of interface management in later NPD stages on new product quality and cost performance. This study also offers insightful implications to NPD managers.
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Previous studies employing the behavioral theory of the firm have not explicitly taken the roles of decision makers and corporate governance into consideration. The purpose of…
Abstract
Purpose
Previous studies employing the behavioral theory of the firm have not explicitly taken the roles of decision makers and corporate governance into consideration. The purpose of this paper is to fill in this gap by integrating CEO overconfidence and discretion into the performance feedback mechanism.
Design/methodology/approach
Financial data were collected from 1,730 Chinese listed companies in the period 2011–2015. Firm-level patent application data were collected for 1988–2015 to measure firm patent application rhythm. Hypothesis testing relied on the fixed effect panel data model.
Findings
There is a positive relationship between performance discrepancy and a firm’s patent application rhythm. CEO overconfidence will weaken this positive relationship. The negative moderating effect of CEO overconfidence will be less pronounced when CEO discretion is high.
Originality/value
To the best of the authors’ knowledge, this work is the first empirical study that investigates the roles of CEO overconfidence and discretion in shaping the performance feedback mechanism.
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Bin Guo and Yueqi Wang
This paper tests which theoretical perspective(s) can better explain firms’ external knowledge search behavior. Information processing and resource-based view theories propose a…
Abstract
Purpose
This paper tests which theoretical perspective(s) can better explain firms’ external knowledge search behavior. Information processing and resource-based view theories propose a positive relationship between environmental turbulence and knowledge search breadth, whereas transaction cost economics and managerial attention theoretical perspectives posit that knowledge search breadth will be negatively influenced by environmental turbulence. In the context of Chinese small- and medium-sized enterprises (SMEs), this study examines the direct effect of environmental turbulence and the interactive effect of environmental turbulence and absorptive capacity (ACAP) on external knowledge search breadth.
Design/methodology/approach
This study adopted firm-level data collected via questionnaires from SMEs within the manufacturing sector in China. The partial least squares method was used to explore the determinants of the external knowledge search breadth of Chinese SMEs.
Findings
The results reveal that external search breadth tends to increase with an increase in a firm’s perceived environmental turbulence. In addition, the interaction between ACAP and environmental turbulence will be negatively related to external knowledge search breadth. The empirical evidence indicates information processing and resource-based view theories are more powerful in explaining the external knowledge search behavior of Chinese SMEs.
Originality/value
Unlike most of the innovation search literature, which have focused on the effect on performance of external search, this study focuses on the antecedents of firms’ innovation search behavior. The study contributes to the understanding of the relationship between environmental turbulence and knowledge search breadth as well as the understanding of the influence of ACAP on external knowledge search in the context of SMEs from emerging economies.
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Yu‐Cheng Lee, Yi‐Fang Hsieh and Yau‐Bin Guo
Traditional studies on a decomposed theory of planned behavior (DTPB) analyze the relationship of variables through a structural equation model. If certain variables do not fully…
Abstract
Purpose
Traditional studies on a decomposed theory of planned behavior (DTPB) analyze the relationship of variables through a structural equation model. If certain variables do not fully comply with the independent hypothesis, it is not possible to conduct proper analysis, which leads to false conclusions. To solve these problems, the aim of this research is to adopt an expert opinion‐driven decision making trial and evaluation laboratory (DEMATEL), and re‐establish the causal relationship and the degree of interrelationship of DTPB variables.
Design/methodology/approach
This research used a university library website as an individual case, and illustrated the benefits of constructing DTPB model by using DEMATEL through the opinions of 23 experts surveyed by questionnaires.
Findings
According to the analysis result of constructing DTPB model by using DEMATEL, when DTPB variables were distributed within quadrants of high centrality and degree of causality, they became the key influential variables; when distributed within quadrants of low centrality and degree of causality, the variables needed urgent management.
Originality/value
When traditional DTPB does not consider the direct and indirect relationships among variables, the original causal relationship of variables will be influenced, and then the original variables cannot fully demonstrate their causal relationship. Therefore the feasibility and effect of constructing DTPB model by using DEMATEL proposed in this research are proved through individual cases.
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Jing Liu, JiHao Cheng, Qian Hu, Feng Huang, JinQiao Xu and Bin Guo
The purpose of this paper is to clarify the influence of the cathodic polarized potential on the stress corrosion cracking (SCC) susceptibility of X120 steel in a simulated acidic…
Abstract
Purpose
The purpose of this paper is to clarify the influence of the cathodic polarized potential on the stress corrosion cracking (SCC) susceptibility of X120 steel in a simulated acidic soil solution and the different SCC mechanisms at different cathodic polarized potentials.
Design/methodology/approach
The SCC behaviors of X120 pipe steels at various potentials were investigated in a simulated acidic soil solution by slow strain rate tensile tests, electrochemical impedance spectroscopy and surface analysis techniques.
Findings
The fracture surface of X120 steel stretched in air showed a ductile fracture. Both elongation and tensile strength of X120 steel in the simulated acidic soil solution decreased compared to that obtained in air. A slight cathodic polarization increased the elongation and tensile strength of X120 steel; therefore, the SCC susceptibility was lower at −0.65 VSCE than that at OCP, anodic dissolution dominates the corrosion process. However, a strong cathodic polarization induced hydrogen embrittlement, decreasing elongation and tensile strength, therefore, the SCC susceptibility was highest at −1.1 VSCE, and hydrogen embrittlement became the dominant process.
Originality/value
The paper provides an essential insight into the mechanism of pipeline SCC for X120 steel in acidic soil environments.