The purpose of this paper is to explore the largely marginalized role of distance or “space” in multinationality and performance (MP) research. It argues that scholars should…
Abstract
Purpose
The purpose of this paper is to explore the largely marginalized role of distance or “space” in multinationality and performance (MP) research. It argues that scholars should adopt a more fine-grained, or relativistic approach when studying the link between MP and that conceptualizing multinationality as space may facilitate this.
Design/methodology/approach
By treating space as though it is liability forming, the paper examines frequently contentious research issues in domain of MP research such as: how is multinationality measured; what are the moderating variables; and what is the performance metric appropriate, as a framework to help illustrate the relativistic nature of MP studies.
Findings
The paper illustrates that the choice of distance dimensions, along which the “space” is formed, alters the relationship between MP. Furthermore, this relationship is relative to moderating variables that include among others: when the space is measured (time), point of reference and perspective, the firm’s resources (e.g. human and technological capabilities), and the performance measure considered.
Originality/value
This paper suggests new avenues and approaches toward exploring the effects of multinationality to improve methodological rigor. It identifies several important methodological shortcomings of current and previous research and suggests areas in which current research gaps must be filled to advance this body of knowledge. It introduces the notion of spatial relativism as a concept that will facilitate more fine-grained and contextualized studies.
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The purpose of this paper is to revisit the causal relationships of the liabilities of inter-regional foreignness to show that the process of regionalization itself has affected…
Abstract
Purpose
The purpose of this paper is to revisit the causal relationships of the liabilities of inter-regional foreignness to show that the process of regionalization itself has affected firms’ strategic capabilities and focus. The constraints of these regions, a consequence of regionalization that limits the strategic options of multinational enterprises, are known as the liabilities of regionalization (LOR).
Design/methodology/approach
This study reviews previous literature and uses a mixture of theory and inference to make propositions regarding the existence of liabilities attributable to the regionalization process. The propositions discuss macro-level, and industry and firm-level strategic impact on firms of Triad and non-Triad regions.
Findings
It is argued specific emerging market attributes, in relation to the developed Triad regions, will influence strategic focus of those emerging market firms. This in turn will also influence global strategic behavior and capabilities in the future, creating additional LOR in some cases and reducing them in others.
Originality/value
Previous scholars have focused on the liabilities of inter-regional and regional foreignness and its effect on international diversification strategy both upstream and downstream. This study attempts to explain the formation of regions that shape the FSAs that limit global strategic diversification, which are characterized as the LOR. More importantly, it discusses them from perspective of emerging market firms, which on the outside of the Triad regions, may form their own regions and FSAs.
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Marcelo J. Alvarado-Vargas and Keith J. Kelley
Using a phenomenon known as the bullwhip effect, the authors explore why additional uncertainty in the marketplace can create severe disruptions in global supply chains (GSCs)…
Abstract
Purpose
Using a phenomenon known as the bullwhip effect, the authors explore why additional uncertainty in the marketplace can create severe disruptions in global supply chains (GSCs). The purpose of this paper is to analyze related risks in regional vs GSCs during low and high levels of uncertainty. The authors propose and discuss a number of potential implications alongside some tactics that may help mitigate disruptions in some cases before they become terminal problems for the supply chain sustainability.
Design/methodology/approach
Monte Carlo simulation is used to generate the conditions of uncertainty and various scenarios that may emerge to challenge GSCs. Vensim software is utilized as a tool for simulation purposes. The authors considered scenarios applicable to manufacturing and retail sectors specifically because of storability property of goods.
Findings
Regional supply chains, as opposed to global ones, are more stable and reliable (less risk of disruption) during low and high levels of uncertainty. During uncertain times, upstream suppliers are at greater risk in GSCs. Firms must make strategic decisions that will secure its supply chain functionality and assess the likelihood of such events since many firms entered emerging markets.
Originality/value
Building on internalization theory, it shows that risk and survival are components of decision making that are further complicated by supply chains now operating globally in emerging markets. The paper demonstrates with simulation that GSCs are riskier than regional supply chains in low and high levels of uncertainty, particular as it relates to the bullwhip effect. It also provides recommendations about supply chain restructure and investments in communication improvements to reduce the bullwhip effect in the supply chain.
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Thomas A. Hemphill and Keith J. Kelley
This paper aims to address the viability of two recent initiatives proposed to address the important human rights issue of employee and building safety among manufacturers in the…
Abstract
Purpose
This paper aims to address the viability of two recent initiatives proposed to address the important human rights issue of employee and building safety among manufacturers in the global supply chain: the recently proposed “Shared Responsibility Paradigm” now being considered by concerned stakeholders as a new approach to understanding human rights issues across global supply chains and the proposed International Organization for Standardization (ISO) 45001 comprehensive framework for management systems addressing occupational health and safety.
Design/methodology/approach
First, the paper establishes a theoretical foundation for these two initiatives as practical and implementable solutions for this human rights issue and includes a section addressing the results of recent academic research on social responsibility in global supply chains. The paper then provides a detailed description of the shared responsibility paradigm and the ISO 45001 health and safety standard, respectively, followed by a discussion of their viability, policy implications and directions for future research.
Findings
Recent developments pertaining to the implementation of the ISO 45001 standard and the unveiling of the World Economic Forum’s shared responsibility model offer aspirational hope for a multi-stakeholder solution to successfully addressing serious human rights issues related to employee safety in Bangladesh and other least developed countries.
Originality/value
This paper offers an early viability assessment of the two recent initiatives proposed to address the important human rights issue of employee and building safety among manufacturers in the global supply chain: the “Shared Responsibility Paradigm” and the proposed ISO 45001 standard for worker health and safety.
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This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies.
Abstract
Purpose
This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies.
Design/methodology/approach
This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context.
Findings
Building a regional rather than a global supply chain can help firms guard against the damaging impact of the bullwhip effect and increase the stability of their supply chain. The possibility of better communication, greater flexibility, and ability to respond more quickly are factors that can appease the bullwhip severity. The benefits of a regional supply chain increase further in times of economic certainty, when the risk to global supply chains intensifies.
Originality/value
The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.
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Ronaldo Parente, Keith James Kelley, Yannick Thams and Marcelo J. Alvarado-Vargas
Drawing upon the eclectic paradigm and the regulative dimension of institutional distance theory, it is posited that to understand a firms’ cross-border merger and acquisition…
Abstract
Purpose
Drawing upon the eclectic paradigm and the regulative dimension of institutional distance theory, it is posited that to understand a firms’ cross-border merger and acquisition (CBMA) location choices, it is critical to examine the acquirers’ ownership advantages.
Design/methodology/approach
Using a sample of CBMAs undertaken by US firms from 1999 to 2015, the paper explores the extent to which acquiring firm ownership advantages – financial and innovation capabilities – influence target firm country selection in relation to regulative distance.
Findings
It is shown that acquiring firms with greater innovative capabilities are likely to choose target firms in nations with less regulative distance from their home market; whereas firms with greater financial capabilities target firms in more distant nations.
Originality/value
This paper builds on the important research on CBMA activity, focusing on the largely neglected pre-acquisition resources in relation to the regulative distance between target firms and the acquirer.
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Nir Halevy, Eileen Y. Chou and J. Keith Murnighan
Purpose – This chapter proposes a theoretical framework – the Conflict Templates Model – that depicts how people conceptualize their outcome interdependence in conflict and…
Abstract
Purpose – This chapter proposes a theoretical framework – the Conflict Templates Model – that depicts how people conceptualize their outcome interdependence in conflict and negotiation situations. We focus on perceptions of outcome interdependence in dyadic conflicts, with a particular emphasis on intergroup interactions.
Approach – Integrating ideas and concepts from game theory with social psychological principles, we propose that: (a) people's mental representations of interdependence are predictably constrained to a small set of mixed-motive games; (b) different motivational goals often lead group members to endorse different games to describe the same intergroup conflict; and (c) these interdependence perceptions influence parties' strategic behavior, and ultimately, their outcomes.
Findings – We review empirical evidence that provides initial support for each of these propositions and discuss future directions for research on the mental representation of conflict and negotiation.
Originality/value – We generate a number of novel predictions concerning the mental representation of conflict. We also discuss how identifying disputants' mental representations can help conflict managers devise effective strategies for managing and resolving conflicts.
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The Bureau of Economics in the Federal Trade Commission has a three-part role in the Agency and the strength of its functions changed over time depending on the preferences and…
Abstract
The Bureau of Economics in the Federal Trade Commission has a three-part role in the Agency and the strength of its functions changed over time depending on the preferences and ideology of the FTC’s leaders, developments in the field of economics, and the tenor of the times. The over-riding current role is to provide well considered, unbiased economic advice regarding antitrust and consumer protection law enforcement cases to the legal staff and the Commission. The second role, which long ago was primary, is to provide reports on investigations of various industries to the public and public officials. This role was more recently called research or “policy R&D”. A third role is to advocate for competition and markets both domestically and internationally. As a practical matter, the provision of economic advice to the FTC and to the legal staff has required that the economists wear “two hats,” helping the legal staff investigate cases and provide evidence to support law enforcement cases while also providing advice to the legal bureaus and to the Commission on which cases to pursue (thus providing “a second set of eyes” to evaluate cases). There is sometimes a tension in those functions because building a case is not the same as evaluating a case. Economists and the Bureau of Economics have provided such services to the FTC for over 100 years proving that a sub-organization can survive while playing roles that sometimes conflict. Such a life is not, however, always easy or fun.
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Keith James Kelley and Yannick Thams
In this chapter, we explore the multilevel nature of reputation from a shared value perspective. Building on a large body of literature surrounding corporate reputation, we…
Abstract
In this chapter, we explore the multilevel nature of reputation from a shared value perspective. Building on a large body of literature surrounding corporate reputation, we discuss how the creation of reputational value at the firm level may also lead to value shared by the industries and countries in which a firm operates, and vice versa. In examining the recursive and dynamic relationships, strategic implications emerge with regard to managing reputations globally. We argue that the value of reputation is determined by the ability to meet the expectations of stakeholders with respect to what they as an audience perceive as important. Stakeholders’ expectations and perceptions of what is valuable fluctuate across different markets and the more heterogeneous the markets in which a firm diversifies internationally, the more difficult it will be to manage all these expectations. By building on our understanding of firm, industry, and country reputation, and the recursive relationships between them, we contend that creating shared value (CSV), as part of the global reputation management process (GRM), is likely to be easier when there is contextual similarity and limited product diversification. Building on previous frameworks, and employing signaling theory, we create a simplified model of GRM that highlights CSV in the form of multilevel reputation. Distinctions are drawn between being efficient and effective as part of the GRM process and a corresponding typology is created. The chapter concludes with a discussion of strategic implications, alongside a few recommendations, and possible directions for future research.