In this paper, the authors aim to introduce the notion of region of origin effect and articulate why home region boundaries should be factored in when understanding firm strategy…
Abstract
Purpose
In this paper, the authors aim to introduce the notion of region of origin effect and articulate why home region boundaries should be factored in when understanding firm strategy and outcomes.
Design/methodology/approach
The paper validates the region of origin effect on internationalization using a sample of 11,677 firms from 99 developing countries in a multilevel model, with both frequentist and Bayesian approaches.
Findings
The findings of this paper indicate consistent support for the notion of region of origin effect. The relative importance of direct region effects in explaining variation in firm internationalization was found to be 17.8 per cent. When indirect effects (i.e. varying slopes) were factored in, the relative importance was 16.6 per cent. Additionally, the findings show that the region of origin effect impacts the degree of strength of the well-established firm drivers of internationalization.
Originality/value
Although the importance of the home region location is well known to researchers and practitioners of international business, it has not received the attention it deserves. The findings of this paper clearly demonstrate the need for researchers and practitioners to recognize the role of the region of origin effect in formulating and implementing global strategies.
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Josef Wieland and Jessica Geraldo Schwengber
This paper aims to contribute to the literature on corporate and leadership responsibility by proposing a relational business model for shared responsibility.
Abstract
Purpose
This paper aims to contribute to the literature on corporate and leadership responsibility by proposing a relational business model for shared responsibility.
Design/methodology/approach
First, a literature review on corporate and leadership responsibility is presented and discussed. This is followed by an overview of existing public and private regulations and future perspectives that enforce and/or foster corporate and leadership responsibility. Based on the concepts of relational economics, relational leadership and proactive regulation, the theoretical foundations of a relational business model are derived. In addition, a decision model for the empirical application of the relational business model in ethical dilemma situations is developed and presented.
Findings
Theoretical elaboration of a relational business model and an associated relational decision-making approach.
Originality/value
This study contributes to a new way of doing business in terms of shared responsibility. Furthermore, corporate responsibility and leadership responsibility are usually researched as two distinct fields, with the former referring to the meso level and the latter to the micro level. A relational approach, which views leadership as a relational phenomenon, contributes to bridging both concepts.
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Min-Kyu Choi, Peter J. Jordan and Ashlea C. Troth
The working day has always comprised frequent interruptions. Yet the frequency and intensity of these disruptions appear to be on the rise as a result of advancing technology…
Abstract
Purpose
The working day has always comprised frequent interruptions. Yet the frequency and intensity of these disruptions appear to be on the rise as a result of advancing technology, increasing interdependent work processes, and changing work environments (e.g., open-plan offices). Interestingly, there have only been a handful of studies on workplace interruptions, and the primary focus among researchers has been on the effects of interruptions on task completion. In this chapter, we argue that interruptions at work can be conceptualized as emotion-inducing events. We draw on research across different disciplines to develop a framework to show how the work-enhancing or work-hindering effects of different types of interruptions are, in part, determined by the employees' capability to manage (regulate) their emotional responses.
Approach
We initially review the literature regarding workplace interruptions. We then develop a framework for understanding the different types of interruptions experienced by individuals at work and then use this framework to develop a model linking interruptions to emotion regulation drawing on Affective Events Theory (Weiss & Cropanzano, 1996). In essence, we advance our understanding of work interruptions by considering these as events that are able to produce positive or negative affective reactions that may enhance or hinder work performance.
Originality/Value
The framework presented in this chapter increases understanding of the different types of workplace interruptions and shows how emotion regulation impacts subsequent work-related outcomes. This chapter provides valuable insights into the nature of work interruptions to identify both positive and negative aspects of work interruptions to establish two different domains of work interruptions that may improve (work-enhancing interruptions) or thwart (work-hindering interruptions) work-related outcomes. Theoretical and practical implications are discussed.
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Ebes Esho and Grietjie Verhoef
The purpose of this paper is to present a review of variance decomposition studies of firm performance and the theoretical foundations that served as the antecedents and…
Abstract
Purpose
The purpose of this paper is to present a review of variance decomposition studies of firm performance and the theoretical foundations that served as the antecedents and promptings for this stream of research. Known collectively as “variance decomposition literature,” these studies use variance decomposition techniques to partition firm performance into various classes of effects in a bid to unveil the relative importance of factors responsible for firm performance variance.
Design/methodology/approach
A review of papers published in SCOPUS and institute for scientific information indexed journals was conducted.
Findings
The study found that firm, industry, corporate, business group and country effects are the major effects included in most extant studies. However, of all effects, firm effects remain the dominant and most important impact on firm performance. The effects that affect firm performance are also interdependent.
Practical implications
Consequently, the decisions of managers in firms are still the most important element in helping the firm to navigate industry and contextual factors, especially during periods of recession.
Originality/value
From the review, research gaps were identified and suggestions for future research provided. There is still much to learn from variance decomposition literature in an age of new business models, unprecedented start-up firms and from developing and emerging market countries.
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Hossein Olya, Levent Altinay and Glauco De Vita
Using data from 104 countries over a six-year period (2009-2014), this study proposes a value-added predictor in service industries based on the eight indicators of the prosperity…
Abstract
Purpose
Using data from 104 countries over a six-year period (2009-2014), this study proposes a value-added predictor in service industries based on the eight indicators of the prosperity index, namely economy, entrepreneurship and opportunity, governance, education, health, safety and security, personal freedom and social capital.
Design/methodology/approach
The fuzzy-set qualitative comparative analysis (fsQCA) and complexity theory, a relatively novel approach for developing and testing the conceptual model, are used for asymmetric modelling of value added in service industries, and the predictive validity of proposed configural model is tested.
Findings
Apart from advancing method and theory, this study simulates causal conditions (i.e. recipes) leading to both high and low scores of the value added of services. The configural conditions indicating a high/low level of value added in service industries can be used as a guiding strategy for marketers, investors and policy makers.
Originality/value
An analysis of worldwide data provides complex models demonstrating both how to regulate country conditions to achieve a high value-added score and select a foreign country for investment that offers a high level of value-added service.
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Juciara Nunes de Alcântara, Cristina Lelis Leal Calegario, Marco Túlio Dinali Viglioni and Jorge Carneiro
Although emerging markets are distinctly known for the rapid growth and international expansion of their state-owned enterprises, little is known about the influence of parent…
Abstract
Purpose
Although emerging markets are distinctly known for the rapid growth and international expansion of their state-owned enterprises, little is known about the influence of parent resource advantages and mixed state ownership on a subsidiary’s performance. Using the resource-based view, this study aims to investigate how resource advantages from the parent company and state ownership influence the performance of subsidiaries.
Design/methodology/approach
This study included a unique data set of 207 subsidiaries from 33 large Brazilian multinationals located in 32 countries from 2000 to 2015. The authors used a hierarchical linear modeling and a multilevel structure based on data at different levels to analyze the influence of home-country parent resource advantages and state ownership on host-country subsidiary’s performance.
Findings
This study illustrates that state ownership can alleviate the resource advantages of parent companies. Evidence is presented, indicating that low and medium degrees of state ownership have a negative impact on the resource advantages of the parent company, consequently reducing the subsidiary’s performance. Moreover, this study highlights that low and medium degrees of state ownership lead to conflicting interests between state ownership and parent resource advantages, resulting in an overall decline in subsidiary performance.
Originality/value
This research contributes new evidence regarding state ownership and resource advantages to the field of international business studies and the domain of Latin American multinational enterprises, Multilatinas. The results suggest that low and medium levels of state ownership diminish the influx of resources from parent companies, thereby restricting the subsidiary’s performance.
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K. Skylar Powell and Eunah Lim
Top-management-teams (TMTs) and chief executive officers (CEOs) dealing with internationalization are naturally predisposed to deal with space, so they will consult “spatial…
Abstract
Purpose
Top-management-teams (TMTs) and chief executive officers (CEOs) dealing with internationalization are naturally predisposed to deal with space, so they will consult “spatial knowledge.” The purpose of this paper is to offer a conceptual description of spatial knowledge used by TMTs/CEOs and to describe how the use of spatial knowledge can be triggered and the resulting biases that arise from it. The description of spatial knowledge is also discussed in relation to core international business (IB) theories/models.
Design/methodology/approach
This is a conceptual study.
Findings
TMTs/CEOs use spatial knowledge for internationalization decisions. This spatial knowledge is “declarative” because it involves knowledge of places and associated characteristics or attributes, “configurational” because it involves knowledge of various types of relative positions and proximities between places and “procedural” because it involves knowledge of how to structure transactions, operate or organize interdependencies between locations. Additionally, TMTs/CEOs individually have spatial knowledge that is uniquely distorted. Then, finally, when TMTs/CEOs consult spatial knowledge to identify international opportunities or solutions, their search process may entail distance and directional biases as a result of their spatial knowledge.
Originality/value
This is the first paper to introduce the notion of “spatial knowledge” to the research on TMT/CEO experiences and internationalization and IB research in general.
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Research on management education (ME) over the past 2 decades signals a growing level of concern in response to increasing societal demands for ethical, responsible and…
Abstract
Purpose
Research on management education (ME) over the past 2 decades signals a growing level of concern in response to increasing societal demands for ethical, responsible and sustainable considerations in management decisions in light of the current economic situation. The purpose of this paper is to review extant literature on responsible management education (RME) over the past decade.
Design/methodology/approach
The author carried out a systematic literature review of peer-reviewed publications, which were mapped and analysed according to the following six categories: (1) types of papers, (2) geographical context, (3) RME purpose, (4) strategies, (5) intended outcomes and (6) challenges. The analysis resulted in a descriptive overview of article content and synthesis of review data categorised by topical focus.
Findings
Analysis of the review sample reveals how scholarly interest in RME has accelerated over the last decade. This is accompanied by a growing institutionalisation and development of RME. The descriptive analysis indicates that the vast majority of publications focus on RME implementation strategies, mostly focussing on on-campus – curricular, pedagogical and operational – changes and the unique experiences of particular schools. Recent publications reveal interest in how RME can respond to triple bottom line (TBL) concerns that benefit the wider society and to sustainable development (SD) goals that target the local and global community. A budding interest is revealed in examining the perceptions of diverse stakeholder groups of sustainability requirements in RME curricula to create relevant and practical content.
Originality/value
This paper contributes to the adoption and/or development of RME.
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Duterval Jesuka and Fernanda Maciel Peixoto
This paper aims to investigate the impact of sovereign rating and corporate governance on performance of Latin American companies between 2004 and 2018.
Abstract
Purpose
This paper aims to investigate the impact of sovereign rating and corporate governance on performance of Latin American companies between 2004 and 2018.
Design/methodology/approach
This study performed a multilevel regression with fixed and random coefficients for 823 companies and verified the impacts of country, firm and time levels on the performance variation. The study alternated return on assets and Tobin’ Q as dependent variables and measured governance using the following variables: board size, chief executive officer/chairman duality, CEO/board member duality, dummy for the chairman as a former CEO, audit committee, independence and expertise of the audit committee.
Findings
Latin American companies performed better when their respective countries have a better sovereign rating and when they adopt better board of directors and audit committee mechanisms. Sovereign rating assumes distinct roles depending on the presence or absence of governance variables. Rating and governance may be substitute mechanisms to protect investors.
Originality/value
To the best of the authors’ knowledge, this paper is the first to investigate the impacts of sovereign rating on firm performance in the Latin American scenario. The use of governance metrics – for example, the audit committee expertise and the dummy for chairman as a former CEO – is innovative in Latin American studies.
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Ruth V. Aguilera, Ricardo Flores and Jin Uk Kim
The purpose of this paper is to critically assess the theoretical underpinnings and extant progress of the research on regional multi-national enterprises (MNEs) and offer a…
Abstract
Purpose
The purpose of this paper is to critically assess the theoretical underpinnings and extant progress of the research on regional multi-national enterprises (MNEs) and offer a blueprint for future research by re-conceptualizing how (regional) boundaries relate to the international diversification of MNEs.
Design/methodology/approach
The paper integrates key insights from the theory of the regional MNE and economic geography to re-orient the treatment of regional borders within international business (IB) literature.
Findings
The paper suggests that the (L) component within the ownership location and internalization (OLI) paradigm should be disaggregated into continuous “distance effects” and discrete “border effects”. Within this rubric, regional borders represent discrete border effects that generate discontinuities that are permeable, fluid and firm specific. Such reconceptualization opens up avenues for future research and more tightly integrates the research on regional MNEs with other research streams.
Research limitations/implications
IB scholars need to make concerted effort to think of regions as one among several parameters in studying the strategy and structure of MNEs. A stronger focus on internal processes and mechanisms elucidating the main drivers of MNEs strategies is needed.
Originality/value
The paper offers innovative ways in which future research can advance the study of how regions matter in the internationalization strategy of MNEs.