Search results

1 – 2 of 2
Per page
102050
Citations:
Loading...
Access Restricted. View access options
Article
Publication date: 14 May 2018

Melanie P. Lorenz, Jack Clampit and Jase R. Ramsey

A dilemma exists in that many view offshoring as a tradeoff between cost efficiency and innovation. The purpose of this paper is to reconcile this dilemma by showing how and why…

483

Abstract

Purpose

A dilemma exists in that many view offshoring as a tradeoff between cost efficiency and innovation. The purpose of this paper is to reconcile this dilemma by showing how and why offshoring to institutionally distant host countries may result in innovation. The authors introduce an institutional lens in order to understand how offshoring to institutionally distant locales affects innovation outcomes of multinational enterprises. This lens is aimed to provide an analytical tool that is less coarse and less overwhelmingly focused on institutional distance (ID) as a harsh and certain harbinger of reduced innovation performance.

Design/methodology/approach

The authors use primary data from the Offshoring Research Network as well as secondary data from the Frasier Institute on Economic Freedom, and Hofstede’s cultural value survey to empirically assess the distinct effects of distance on innovation at the firm level.

Findings

The authors have developed a model of distance and innovation which goes beyond the traditional assumption of distance as overwhelmingly negative. Whereas in some cases, the positive effect of formal and informal distances outweigh the negative effects stimulating innovation; in other cases, the negative effects of distance hamper innovation. Finally, some elements of distance may not have an impact on innovation outcomes at all.

Research limitations/implications

While previous research stresses the negative effects of distance in general, the authors provide an ID model which, in the context of offshoring, takes into account potential positive, negative, or no effects.

Practical implications

The study presents global supply chain managers with a reference framework for making strategic offshoring relationships decisions.

Originality/value

By unbundling the inherently confounding formative construction of distance measures, eschewing the reflexive assumption that distance is always negative, and mapping theories specific to the application of distinct institutional logics to specific value-enhancing business activities (i.e. innovation), this study offers a more accurate and complete institutional picture that helps reconcile institutional theory with an empirical record that often fails to find what it predicts.

Details

International Marketing Review, vol. 35 no. 3
Type: Research Article
ISSN: 0265-1335

Keywords

Access Restricted. View access options
Article
Publication date: 17 May 2022

Haiyan Li, Manman Wang and Ruihan Zhang

This study examines the effect of cross-border network ties of returnee entrepreneurs on the foreign market diversity of their ventures. The study further investigates how two…

405

Abstract

Purpose

This study examines the effect of cross-border network ties of returnee entrepreneurs on the foreign market diversity of their ventures. The study further investigates how two cross-cultural competencies (global mindset and cultural intelligence) moderate this effect.

Design/methodology/approach

A sample of 135 returnee entrepreneurial ventures from China was used to test the hypotheses.

Findings

This study finds that returnee entrepreneurs tend to enter into a wide range of culturally different country groups when returnee entrepreneurs have strong cross-border network ties. Moreover, global mindset and cultural intelligence function as complements in strengthening the effect of the cross-border network ties on foreign market diversity.

Originality/value

The authors contribute to both returnee entrepreneurship and foreign market entry literature in two ways. First, by examining the effect of cross-border network ties on foreign market entry, the authors add new and important insights into the role of social networks in the pre-internationalization phase. This is useful in understanding the internationalization process of new ventures founded by returnees, which have not been fully understood in returnee entrepreneurship literature. Second, by examining the moderating roles of global mindset and cultural intelligence, the authors enhance the understanding of the extent to which cross-border networks can be valuable in foreign market entry.

Details

Cross Cultural & Strategic Management, vol. 29 no. 4
Type: Research Article
ISSN: 2059-5794

Keywords

1 – 2 of 2
Per page
102050