Chung‐Ming Lau, Hang‐Yue Ngo and Daphne W. Yiu
The internationalization of Chinese firms has been gaining importance in recent years. Informed by Dunning's eclectic paradigm, this paper examines the factors leading to the…
Abstract
Purpose
The internationalization of Chinese firms has been gaining importance in recent years. Informed by Dunning's eclectic paradigm, this paper examines the factors leading to the “going international” decisions of Chinese firms in the very early days of the “go global” call, before the central government offered substantial support.
Design/methodology/approach
It is suggested that two types of organizational factors are relevant to these decisions: the firm's management capability and core competencies. A survey of data of chief executives from over 3,000 firms in the year 2000 was analyzed.
Findings
Empirical results indicate that different resources endowments have different relationships with internationalization decisions. The intention of going international is affected by organizational competencies of R&D and manufacturing. Two capabilities (production and sales, and operation and finance) have significant impacts on outward direct investment, while manufacturing and marketing competencies have positive effects on exports, together with production capability. In addition, manufacturing competencies also have a negative effect on the acquisition and use of international capital.
Originality/value
By using firm‐level data collected in China, a better understanding of the nature of internationalization and the foreign direct investment characteristics of firms has been obtained. The empirical results show that the impacts of the organizational resources are different for different internationalization decisions, and the effects of core competencies of a firm vary across different paths of internationalization.
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Diego Quer-Ramón, Enrique Claver-Cortés and Laura Rienda-García
Since the beginning of the 21st century, China’s outward foreign direct investment (OFDI) is growing steadily and Chinese multinationals (MNCs) are playing an increasingly…
Abstract
Purpose
Since the beginning of the 21st century, China’s outward foreign direct investment (OFDI) is growing steadily and Chinese multinationals (MNCs) are playing an increasingly important role in the global economy. Thus, the number of papers focusing on China’s OFDI and Chinese MNCs has been increasing during the last years. The aim of this chapter is to carry out a review of the empirical papers dealing with Chinese MNCs published between 2002 and 2012 in high-impact international business and management journals.
Design/methodology/approach
This chapter reviews 43 empirical papers focusing on Chinese MNCs that were published in nine major scholarly journals between 2002 and 2012.
Findings
We report individual and institutional contributions, the theories and methods used, the research topics, and the main findings. We also discuss implications for future research.
Originality/value
Some previous literature reviews have dealt with research on China’s OFDI and Chinese MNCs. Nevertheless, none of the earlier reviews dealt specifically with empirical papers; neither did they provide an analysis of both individual and institutional contributions.
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L.M. Daphne Yiu, Andy C.L. Yeung and Abe P.L. Jong
In this research, we empirically examine the impact of Business Intelligence (BI) systems on operational capability in high-tech sectors. We also seek to understand the contextual…
Abstract
Purpose
In this research, we empirically examine the impact of Business Intelligence (BI) systems on operational capability in high-tech sectors. We also seek to understand the contextual factors that facilitate the adoption of BI systems.
Design/methodology/approach
We adopt Propensity Score Matching (PSM) and event study methodology, and analyze the financial data for a sample of 144 US firms which adopted BI systems from 2005–2014, and compare them to control firms without BI systems.
Findings
We find that the implementation of BI systems leads to higher operational capability, particularly for large high-tech firms with high technology intensity. We further show that technology intensity and firm size are important contextual factors for firms to reap the benefits of BI systems.
Practical implications
We demonstrate how benefits from the adoption of BI systems are likely to be strengthened. The benefits of BI systems depend on firms' technology intensity and firm size of high-tech firms. Accessing relevant and timely reports for decision-making is particularly important in the highly dynamic, volatile and competitive high-tech sectors.
Originality/value
We contribute to the literature by providing empirical evidence that the adoption of BI systems can improve firms' operational capability and show that technology intensity and firm size are important contextual factors for firms to reap the benefits of BI systems. We advance the understanding regarding the contextual factors in which firms are more likely to gain additional benefits from their adoptions of BI systems.
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Jamie D. Collins, Dan Li and Purva Kansal
This study focuses on home country institutions as sources of variation in the level of foreign investment into India. Our findings support the idea that institutional voids found…
Abstract
This study focuses on home country institutions as sources of variation in the level of foreign investment into India. Our findings support the idea that institutional voids found in India are less of a deterrent to investments from home countries with high levels of institutional development than from home countries with similar institutional voids. Overall, foreign investments in India are found to be significantly related to the strength of institutions within home countries. The levels of both approved and realized foreign direct investment (FDI) are strongly influenced by economic factors and home country regulative institutions, and weakly influenced by home country cognitive institutions. When considered separately, the cognitive institutions and regulative institutions within a given home country each significantly influence the level of approved/realized FDI into India. However, when considered jointly, only the strength of regulative institutions is predictive of FDI inflows.
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Daphne Sobolev and James Clunie
Predatory trading is a stock market trading technique in which certain market participants exploit information about other market participants' need to trade. Predatory trading…
Abstract
Purpose
Predatory trading is a stock market trading technique in which certain market participants exploit information about other market participants' need to trade. Predatory trading often harms others. Hence, this paper examines the determinants and effects of financial practitioners' and lay people's judgments of predatory trading. Specifically, it investigates how the public availability and reliability of the exploited information affect their ethics and legality judgments and how the latter influence their behavioral intentions and regulation support.
Design/methodology/approach
The authors conducted two scenario judgment studies. In the first study, participants were financial practitioners, and in the second – lay people.
Findings
Practitioners often judge predatory trading to be ethical. Practitioners and lay people incorporate in their ethics and legality judgments the public availability of the exploited information but tend to discount the legal reliability criterion. Lay people justify their ethics judgments using harm, legal or profit maximization principles. Practitioners' intentions to engage in predatory trading and lay people's intentions to let predatory fund managers invest their money depend on their judgments, which influence their regulation support.
Originality/value
This paper is the first to explore people's judgments of predatory trading. It highlights that despite the harm that predatory trading involves, practitioners often judge it to be ethical. Although law tends to lag behind financial innovation, people base their judgments and hence also behavioral intentions on their interpretation of the regulation. Hence, it reveals a dark aspect of the relationship between ethics and legality judgments.
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Conventional theories of market entry assume choice availability. This investment assumption is subject to challenges in the power generation market of an emerging economy where…
Abstract
Conventional theories of market entry assume choice availability. This investment assumption is subject to challenges in the power generation market of an emerging economy where the host government controls most key resources and market entry choices. With such constraints, entrants become heavily dependent on their host country partners. This study investigates how the resource dependency frameworks explain better in respect of some US power generation firms that manage to operate electricity facilities in China whereas some have to abort. Using cross‐case analysis, patterns emerged illustrate how two groups of entrants manage key resources differently.