Kazuhiro Asakawa, Omid Aliasghar and C. Annique Un
This paper explores how the organizational resilience of multinational corporations (MNCs) can be attained through mitigating the liability of foreignness (LOF) faced by their…
Abstract
Purpose
This paper explores how the organizational resilience of multinational corporations (MNCs) can be attained through mitigating the liability of foreignness (LOF) faced by their subsidiaries so that they can navigate challenges more effectively. By bridging the gap between MNC resilience and the liability and advantage of foreignness of their subsidiaries, this study aims to provide a comprehensive understanding of how MNCs can thrive in volatile and uncertain international markets.
Design/methodology/approach
By drawing on the extant literature on resilience and liability/advantage of foreignness, this paper presents a novel perspective on the way resilience of subsidiaries contributes to the resilience of the MNCs as a whole.
Findings
Subsidiaries contribute substantially to the resilience of MNCs by creating a network of adaptive responses in their host locations and beyond and by playing crucial roles in challenging uncertain and turbulent environments. Accordingly, the resilience of foreign subsidiaries depends on their organizational capability and certain structural arrangements that enable them to turn LOF into advantage. This intricate interplay emphasizes the importance of subsidiary-level resilience in shaping the resilience of the entire MNC.
Originality/value
This paper emphasizes the importance of paying attention to the resilience of the whole MNC while stressing the important role played by the subsidiaries to turn the LOF into the advantage.
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Alvaro Cuervo-Cazurra, Rajneesh Narula and C. Annique Un
– The purpose of this the paper is to review the motives for internationalization to clarify previous arguments and provide a theory-driven classification.
Abstract
Purpose
The purpose of this the paper is to review the motives for internationalization to clarify previous arguments and provide a theory-driven classification.
Design/methodology/approach
The authors build on behavioral economics and propose a classification of internationalization motives as the result of the interaction among two dimensions, an economics-driven exploitation of existing resources or exploration of new resources, and a psychology-driven search for better host country conditions or avoidance of poor home country conditions.
Findings
These two dimensions result in four internationalization motives: sell more, in which the company exploits existing resources at home and obtains better host country conditions; buy better, in which the company exploits existing resources abroad and avoids poor home country conditions; upgrade, in which the company explores for new resources, and it obtains better host country conditions; and escape, in which the company explores for new resources and avoids poor home country conditions.
Originality/value
This theory-driven classification provides predictive power for future analyses of internationalization motives.
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C. Annique Un and Angeles Montoro‐Sanchez
The purpose of this paper is to integrate three streams of literature – organizational capabilities based in resource‐based view (RBV) and the team‐ and organization‐level…
Abstract
Purpose
The purpose of this paper is to integrate three streams of literature – organizational capabilities based in resource‐based view (RBV) and the team‐ and organization‐level innovation – to provide a theoretical framework of how firms invest in developing innovative capabilities for entrepreneurship and change management.
Design/methodology/approach
This is a conceptual paper based on the RBV and the team‐ and organization‐level innovation literatures.
Findings
Linking the three bodies of literature, two main models for developing innovative capabilities are proposed: organization and project team models. The “organization model” requires firms to invest at the organization level to generate the supporting organization‐level processes, i.e. communication routines, independent of when they organize for innovation, and the “project team model” calls for just‐in‐time investment as needed in the process of innovation. The paper discusses other potential models and provides directions for future research on this important and timely topic.
Originality/value
The paper expands the RBV of the firm by providing a theoretical framework of how firms develop the capabilities to mobilize and create knowledge for innovation as an entrepreneurial activity and for managing the changes in organizations.
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C. Annique Un and Alvaro Cuervo-Cazurra
We analyze the role of top managers in the process of improving existing products in large established firms. The results of an inductive study reveal two key arguments. First, we…
Abstract
We analyze the role of top managers in the process of improving existing products in large established firms. The results of an inductive study reveal two key arguments. First, we find that the process is an “involved” top-down approach, rather than middle-up-down or bottom-up, discussed in previous studies on new product creation. Top managers actively participate throughout the process, taking on four roles: evaluation of product market performance, selection of products for improvement, initiation of the innovation process through delegation to middle managers of the responsibility to organize bottom-level employees to take actions toward product improvement, and monitoring of progress to ensure improvement (ESIM). Top managers become involved as necessary to reduce the resistance of people at the middle and lower levels to change in current routines. Second, we find that in companies that achieve superior product improvement, managers have well-developed professional absorptive capacity and have routinized frequent interactions to evaluate, select, initiate, and monitor. Other characteristics of managers, such as personal absorptive capacity, incentive system, or mandate from above, are common across both high and low performers.
Muanfhun Ratanavanich and Peerayuth Charoensukmongkol
Grounded in the resource-based view of the firm, this study aims to examine the effects of goal orientation and the mindfulness of entrepreneurs on firm innovation capability and…
Abstract
Purpose
Grounded in the resource-based view of the firm, this study aims to examine the effects of goal orientation and the mindfulness of entrepreneurs on firm innovation capability and analyzes that capability’s subsequent impact on firm performance. The authors also analyze whether mindfulness interacts with goal orientation to intensify its effect on firm innovation capability.
Design/methodology/approach
Simple random sampling was used to obtain the sample of Thai firms listed in the Department of Business Development database (n = 304). The data analysis was done by using partial least square structural equation modeling.
Findings
Goal orientation and mindfulness are positively associated with firm innovation capability. The analysis also supports the interaction effect of goal orientation and mindfulness on firm innovation capability. Moreover, firm innovation capability is positively associated with firm performance.
Practical implications
Goal orientation and mindfulness should be considered two essential soft skills that entrepreneurs must develop to build up their firms’ innovation capability. Because entrepreneurs are the key drivers of economic growth and sustainable development, the government agencies responsible for the entrepreneurship development should consider goal orientation and mindfulness as parts of their entrepreneurship training program and development policy.
Originality/value
The finding about the interaction effect of goal orientation and mindfulness on firm innovation capability provides new evidence that was not documented in previous research. The authors clarify that these are entrepreneurial characteristics that could supplement each other to maximize the potential of entrepreneurs and strengthen the innovation capability of their firms.
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Firms increasingly diversify their technological competencies to achieve different strategic objectives. This study aims to explore the impacts of technological knowledge…
Abstract
Purpose
Firms increasingly diversify their technological competencies to achieve different strategic objectives. This study aims to explore the impacts of technological knowledge characteristics on patenting choices for inventions created by subsidiaries in an uncertain and fast changing environment.
Design/methodology/approach
The data used in this study are patents granted to the world largest firms by the USPTO for inventions attributable to their subsidiaries in China between 1996 and 2005. In addition, the patent data from State Intellectual Property Office (SIPO) of China are used for the matching in terms of filing patent applications in both USA and China for a same piece of technology. A discrete Logit model is used to examine the effects of technological distance and categories on Chinese patent application and international priority.
Findings
The findings suggest that firms have priority to seek international patent protection, instead of host country protection, for valuable subsidiary inventions in their background and marginal technological fields. In addition, a firm may seek host country legal protection simultaneously for inventions built upon knowledge from technologically distant fields.
Research limitations/implications
As we are more interested in protecting technological knowledge, the protection of other types of knowledge, such as organizational knowledge, deserves further research attentions. Moreover, future research may expand current study by including small and medium firms, as well as firms in other developing economies.
Practical implications
While the economic and legal environment in China may have evolved since studied period, the results have practical implications for firms in other developing countries that are at an early stage of catching-up or those in a host location featuring a similar uncertain and fast changing environment. In particular, the study suggests that foreign firm managers would have more strategic choices of patenting than local firms in the host country. For strategically important inventions bridging complex knowledge from different technological areas, firms could seek protection in multiple countries simultaneously, including both home country and other major markets. Furthermore, managers could choose whether or not to protect a particular category of technologies in host country depending on value of the technology to the firm and the IPR protection of host country. Finally, the approach of looking at knowledge-level characteristics, which can be easily measured through readily available intra-firm information, provides managers with a practical and useful tool to make these strategic decisions.
Originality/value
This study represents an effort to extend the understanding on how foreign MNCs could generate and appropriate valuable technologies in an uncertain and fast-changing environment. In particular, the authors focus on how MNCs could use different international patenting patterns to benefit from subsidiary inventions. Whereas previous literature mainly focuses on country-level and firm-level determinants, this study approaches the topic through the lens of knowledge-level factors. By studying how knowledge characteristics determine firm strategic behaviors, the authors offer additional justifications of the knowledge-based view of the firm. Meanwhile, the findings enrich our understanding of an important component of MNC’s global strategies in managing their technologies through selectively patenting in different locations. Firms pursue diversified technologies for different strategic objectives. As subsidiary inventions become a very important source of firm competitiveness, MNCs have to face the trade-off between higher patenting costs and the appropriability of subsidiary generated knowledge. The findings suggest that it is not necessary for MNCs to protect all subsidiary inventions in host countries.
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Domingo Ribeiro‐Soriano and David Urbano
The purpose of this paper is to add new theoretical insights on the employee‐organization relationship (EOR) in the context of corporate entrepreneurship (CE), specifically in…
Abstract
Purpose
The purpose of this paper is to add new theoretical insights on the employee‐organization relationship (EOR) in the context of corporate entrepreneurship (CE), specifically in collective entrepreneurship.
Design/methodology/approach
The paper presents a brief overview of the content of each of the articles included in this special issue.
Findings
In the last decades, the study of the EOR has become an integral part of the literature as an approach aimed to provide the theoretical foundations to understanding the employee and employer perspectives to the exchange. Also, the greater complex environment and the higher level of innovativeness have pushed firms to become more entrepreneurial in order to identify new opportunities for sustained superior performance. In this context, emerges CE and involves not only formal activities to enhance product innovation, risk taking and a proactive response to environmental forces, but also organizational learning, driven by collaboration, and commitment. Specifically, different EORs and specific human resources management practices are required in the light of collective entrepreneurship, understood as work among entrepreneurial teams within the organizations and collaboration among employees.
Originality/value
The paper provides an overview of the EOR in collective entrepreneurship.
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Marvin E. Gonzalez, Gioconda Quesada, James Mueller and Rene D. Mueller
Curriculum development in higher education must be continuously evaluated in this dynamic business environment, where business needs change day‐to‐day. The literature on the…
Abstract
Purpose
Curriculum development in higher education must be continuously evaluated in this dynamic business environment, where business needs change day‐to‐day. The literature on the application of quality function deployment (QFD) to curriculum design is increasing, with student opinion representing the sole voice of the customer. The purpose of this paper is to present an alternative approach to QFD curriculum design by using a survey of employers, not students, to represent the voice of the customer.
Design/methodology/approach
This paper applies the widely used quality management process of QFD to the curriculum development process of a major international business program.
Findings
The findings illustrate the application of QFD's house of quality in international business curriculum development and best practices benchmarking.
Practical implications
The results of this study are useful to any university to revise or design new academic programs. It presents a methodology to design curriculum based on the voice of the real customer: industry, without forgetting about the expertise of academicians.
Originality/value
This study is intended to be one of the first in defining the customer as the industry, instead of just students or academic experts. The combination of all stakeholders in the curriculum design of international business will help universities make better decisions regarding international business programs.