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This study examines the moderating effects of cultural distance and the nationality of foreign subsidiaries’ CEOs on the relationship between internal/external network tie strength and technological innovation. This study focuses on foreign subsidiaries of Korean firms operating in emerging markets, based on the knowledge-based view.

To test the hypotheses, a survey was administered to 3,840 foreign subsidiaries of Korean firms in emerging markets. Questionnaires were distributed via phone and email, and 282 (7.34%) completed questionnaires were returned. Accordingly, an empirical analysis was conducted, and the hypotheses were tested.

First, internal network tie strength had a significant negative effect on foreign subsidiaries’ technological innovation. Second, external network tie strength had a significant positive effect on foreign subsidiaries’ technological innovation. Third, as for the moderating effect, cultural distance negatively moderates the significant negative effect of internal network tie strength on the technological innovation of foreign subsidiaries. Fourth, cultural distance positively moderates the positive effect of external network tie strength on foreign subsidiaries’ technological innovation. Fifth, foreign subsidiaries’ CEO nationality (parent country nationals) positively moderates the negative effect of internal network tie strength on foreign subsidiaries’ technological innovations. Sixth, foreign subsidiaries’ CEO nationality (parent country nationals) negatively moderates the positive effect of external network tie strength on foreign subsidiaries’ technological innovation.

Previous studies found a positive relationship between dual network tie strength and technological innovation in foreign subsidiaries from a knowledge-based view. This study’s significance lies in its finding that the varying strengths of foreign subsidiaries’ internal and external network connections can have different impacts on their technological innovation in the context of subsidiaries operating in emerging markets. Additionally, the moderating effects of cultural distance and the nationality of the foreign subsidiary’s CEO were examined. Therefore, this study is significant because it expands the literature on technological innovation in foreign subsidiaries.

Aim of the present monograph is the economic analysis of the role of MNEs regarding globalisation and digital economy and in parallel there is a reference and examination of some legal aspects concerning MNEs, cyberspace and e‐commerce as the means of expression of the digital economy. The whole effort of the author is focused on the examination of various aspects of MNEs and their impact upon globalisation and vice versa and how and if we are moving towards a global digital economy.

One role of a foreign subsidiary within a multinational corporation's (MNC's) global portfolio is to connect the MNC to foreign customers. To examine this key customer contact point, this study aims to examine the linkages between local market conditions and strategic orientation, and how strategic orientation influences knowledge management capabilities of MNC subsidiaries, employing the Miles and Snow strategic orientation perspective.

A survey was conducted of 112 managers in foreign MNC subsidiaries in Croatia. Data were analyzed with both discriminant analysis and MANCOVA.

The results indicate that in highly dynamic and competitively intense markets, MNC subsidiaries primarily employ a Prospector orientation. Furthermore, the results indicate that there is a significant difference in knowledge management capabilities among subsidiaries depending on their strategic orientation, with the Prospector orientation most closely aligned with knowledge acquisition, knowledge conversion and knowledge application.

The findings highlight the importance of strategic orientation in MNC subsidiaries tailoring to local market conditions. The results suggest that MNC subsidiaries undertaking a Prospector strategic orientation develop greater knowledge acquisition, conversion and application capabilities.

This study conceptualizes the MNC subsidiary as a key marketing element of the global MNC whole and examines the nuanced relationships between the host environment and MNC foreign subsidiary strategic orientation as well as MNC subsidiary strategic orientation and knowledge management relationship.

The purpose of this paper is to operationalise the collaborative cross-border innovation process employed by multinational corporations in their effort to penetrate new markets.

The paper is based on the case study of a leading European telecommunications group (OPERACOM). Methodologically it relies on 32 interviews, observation and secondary data analysis, and is theoretically founded on an extensive (mostly narrative and partly meta-synthetic) literature review.

The findings show that two new activities merit inclusion in the collaborative cross-border innovation process: strategic marketing anticipation and pre-opportunity studies. In this context, three strategic marketing levers are elucidated: subsidiaries’ knowledge integration, communication/coordination mechanisms, and collaboration-governance; interrelating on the way the activities and elements comprising the breadth and depth of the process’ continuum.

These stem from and are inherent to the very nature of the research (case study), which proscribes generalisations. Additionally, the research’s long-term span subjects the results to some inevitable potential temporal distortions.

The research findings, owing to their detailed and activity-specific disposition, constitute a case prototype towards further and/or corresponding application to organisations of this and/or other industries; presenting executives with an existing and market-tested positive paradigm of the innovation aspect of the collaborative market-entry mechanism.

Carrying significant scholarly and executive value, the research substantially and specifically enhances the understanding of innovation as an integral part of the internationalisation process, describing and prescribing explicit processes and actions throughout the horizontal and vertical organisational axes.

This chapter contributes to the existing literature on institutional theory and international business research by integrating the concepts of polycentrism and institutional learning to examine how MNEs from emerging economies invest in developed countries. We argue that equity-based market entry modes and non-equity-based modes create different needs for learning about economic, regulatory and political institutions; entry modes with or without local partners lead to different levels of institutional embeddedness and institutional learning speeds. Finally, the content of institutional knowledge also determines its transferability and adaptability. We emphasize the importance of recognizing the integrated nature of economic, regulatory and political institutions from a polycentric perspective and discuss their change in different situations.

Internationalization has emerged as a vital catch-up strategy for firms in emerging markets. Although external knowledge search has been widely acknowledged as an important way within the internationalization process, there appear to be opposing views as to whether local or international knowledge search contributes more for firms’ internationalization. This paper aims to integrate organizational ambidexterity and external knowledge search theory to define the concept of external knowledge search ambidexterity and empirically test the impact of the balance dimension of external knowledge search ambidexterity and combined dimension of external knowledge search ambidexterity on internationalization and the moderating effect of organizational slack and environmental munificence.

Survey.

Based on survey data of 219 Chinese manufacturing firms, the authors find that both relative balance and combined dimensions of external knowledge search ambidexterity are positively associated with internationalization. Organizational slack and environmental munificence both negatively moderate the relationship between balance dimension of external knowledge search ambidexterity and internationalization, both positively moderate the relationship between combined dimension of external knowledge search ambidexterity and internationalization.

It is essential for managers to take different external knowledge sources into consideration, so as to both maximize revenues and profits from advanced technological knowledge and foreign marketing knowledge in foreign markets and geographic proximity advantages in local market, while minimizing the risks of lacking of adaptive capacity for lacking of knowledge about international markets and cost of coordination and communication because of long geographical distance and cultural difference.

The findings help us better understand the knowledge seeking activities of emerging economy multinationals by proposing that the balance and combination of local and international knowledge search both can promote internationalization, especially on the background of China. The results also enrich the organizational ambidexterity research and extend it to external knowledge search field.

This paper seeks to challenge the traditional wisdom that sheds light upon sequential entry modes in developed countries by exploring the dynamic entry mode choice in sequential foreign direct investment (FDI) in emerging economies.

A review of the literature on the entry mode choice is undertaken. Based on analysing two related theories consisting of the knowledge‐based theory of the firm and organizational learning theory, entry mode choices in sequential FDI in emerging economies are investigated using both an internationalisation process model and the capability‐developing perspective, and exclusive propositions are put forward accordingly. Then, these propositions are tested on the context of China with the methodology of paired‐samples t‐tests.

Based on macro‐level longitudinal data in China from 1979 to 2005, the choice of entry mode in sequential FDI in emerging economies is inconsistent with the capability‐developing theory of the firm, but is consistent with the international process model.

This study provides four practical implications. First, managers intending to invest abroad need to consider the cost and return of a specific entry mode. Second, knowledge about host markets has a more important effect on entry mode choice in emerging markets than MNCs' internal organizational capabilities. Third, MNCs adopt sequential investment in emerging economies, in which they adopt joint ventures in earlier entries and then shift to green‐field investment in later entries. Fourth, experiential learning, which consists of learning about host markets and local partners' skills, is emphasized in sequentially entering emerging markets.

This paper expands the research scope of previous studies that either explore a static choice of entry mode in foreign markets or only examine the entry mode choice in sequential FDI in developed countries. Taking into consideration the dynamic choice of entry modes, the paper studies sequential FDI in emerging economies, which throws light upon theoretical analysis of sequential FDI in China, and which has practical implications for foreign firms that are interested in China and planning to enter China's markets.

This study aims to explore means for promoting local and global innovation, where two mechanisms play a key role: R&D investments and training. The authors suggest that, given their different purposes, R&D investments and training moderate the relationships between knowledge sourcing and both local and global innovation in different ways.

The authors test the hypotheses on a sample of multinational corporations (MNCs) (headquarters of Brazilian multinationals and subsidiaries of foreign multinationals) operating in Brazil, an emerging market. Respondent companies were sourced from the Bovespa Stock Exchange list and a local Best Companies Ranking. Roughly 1,000 companies were invited to participate in an annual survey over an eight-year period (2012–2019) via an online questionnaire. The final sample comprises 108 observations from 87 companies. Hypotheses were tested using a hierarchical linear model in the software R. By measuring the variables at two points in time with a five-year gap, the authors can infer cause and effect relationships.

The results confirm all of the hypotheses. R&D investments positively moderate the relationship between knowledge sourcing and local innovation (H1) and negatively moderate the relationship between knowledge sourcing and global innovation (H2). Training has a positive moderating effect on the relationship between knowledge sourcing and global innovation (H3) and a negative moderating effect on the relationship between knowledge sourcing and local innovation (H4).

No one practice can enhance the effect of knowledge sourcing on both local innovation and global innovation. Firms looking to foster local innovation should concentrate on increasing R&D investments, while firms wishing to foster global innovation should focus on providing training to their employees.

This study contributes to the literature by discussing the particularities of local and global innovation and exploring mechanisms (i.e. R&D investments and training) that can foster or hinder local and global innovation. The authors advance the extant literature on location choices for R&D activities by exploring the mechanisms that affect the type of market targeted by such innovation (local or global), thereby addressing calls for more studies on how local knowledge activities affect overall MNC innovation. The authors also respond to calls for more studies on the role of human resource management (HRM) practices, such as training, in fostering innovation, especially in emerging markets.

The disruption global digitally based firms are imposing on the positions of established multinational telcos is not just in degree, but also in kind. As such, the telcos are entering a period of VUCA. Although digitally based competitors could suffer from liabilities of “outsidership,” we argue that the physical presence of telcos in local markets will be insufficient to avoid a future as utilities or dumb-pipes. One significant issue as they confront VUCA is therefore whether telcos are able to develop and apply dynamic capabilities.

This paper illuminates the distinction between individual and organizational actors in business-to-business markets as well as the coexistence of formal and informal mechanisms of coordination in multinational corporations. The main questions addressed include the following. (1) What factors influence the occurrence of personal contacts of foreign subsidiary managers in industrial multinational corporations? (2) How such personal contacts enable coordination in industrial markets and within multinational firms? The theoretical context of the paper is based on: (1) the interaction approach to industrial markets, (2) the network approach to industrial markets, and (3) the process approach to multinational management. The unit of analysis is the foreign subsidiary manager as the focal actor of a contact network. The paper is empirically focused on Portuguese sales subsidiaries of Finnish multinational corporations, which are managed by either a parent country national (Finnish), a host country national (Portuguese) or a third country national. The paper suggests eight scenarios of individual dependence and uncertainty, which are determined by individual, organizational, and/or market factors. Such scenarios are, in turn, thought to require personal contacts with specific functions. The paper suggests eight interpersonal roles of foreign subsidiary managers, by which the functions of their personal contacts enable inter-firm coordination in industrial markets. In addition, the paper suggests eight propositions on how the functions of their personal contacts enable centralization, formalization, socialization and horizontal communication in multinational corporations.