Vanita Tripathi and Sonal Thukral
The purpose of this paper is to investigate the determinants of financing the outward foreign direct investment (OFDI) by building a three-level framework residing on host country…
Abstract
Purpose
The purpose of this paper is to investigate the determinants of financing the outward foreign direct investment (OFDI) by building a three-level framework residing on host country market imperfections, ownership advantages of parent firm investing abroad and the industry to which it belongs.
Design/methodology/approach
The paper used random effects probit model.
Findings
Parent debt financing of OFDI by Indian parent firms is driven by the credit market development of the host country, the uniqueness of the industry to which parent firm belongs and systematic risk. Debt-oriented firms are found to invest more via parent debt.
Research limitations/implications
The limitations of this study are as follows: –first, time period before 2008 could not be considered due to unavailability of data in the public domain. Second, the characteristics of foreign affiliates that spread across diverse host countries have not been factored in. Third, in the case of parent’s industry-level determinants, financial sector has not been included because the financing and risk-taking strategy of this sector are quite different from other sectors. Finally, the present study assumes financing decision to be centralized in the multinational system at the parent firm.
Practical implications
The practical implications of this study are as follows: first, industry innovativeness must be taken as a guide by the Indian MNEs to finance their OFDI and they must provide equity. Second, the study suggests that Indian MNEs rely on their existing capital structure while financing their OFDI. Third, parent firms are found to follow the industry norms. Fourth, parent firms must finance their OFDI by considering the development of credit market in the host country. Fifth, host government must focus on improving the credit market development of their economy and not just reducing tax rates to attract FDI into their economy.
Originality/value
Empirically examining internal flows in a multinational system has limited the research in the area of financing the OFDI. The paper is one of the first attempts to formally develop a model of factors that shape financing of OFDI in case of one such emerging market – India.
Details
Keywords
- Emerging market multinationals
- Outward foreign direct investment
- Financing
- Parent debt
- Internal capital market
- Random effects
- Probit model
- Emerging economy
- India
- Strategy tripod
- Institutional environment
- Industry environment
- Resource-based view
- Credit market development
- Systematic risk
- Legal environment
- Financial environment
- Growth opportunities
- R&D intensity
- advertising intensity
Apoorva Jain, Sonal Thukral and Justin Paul
Family firms' desire to preserve and uphold socioemotional wealth (SEW) makes their internationalisation a complex phenomenon. Despite the significance of SEW in guiding family…
Abstract
Purpose
Family firms' desire to preserve and uphold socioemotional wealth (SEW) makes their internationalisation a complex phenomenon. Despite the significance of SEW in guiding family firms' internationalisation decisions, the literature in the underlying research stream is still scant and inconclusive. Thus, the purpose of the study is to gain preliminary insights about various dimensions of SEW and its impact on family firms' degree of internationalisation.
Design/methodology/approach
The study employs the multi-case study research design. The multidimensional SEW scale developed by Berrone et al. (2012) is used to calculate the SEW scores for four prominent Indian family businesses through the content analysis of Chairman's Statements for a period of 13 years (2007–08 to 2019–20). Further, the study examines the relationship between SEW and family firms' degree of internationalisation through two non-parametric tests: Somers' D and Kendall-Theil regression.
Findings
The results reveal the prevalence of various dimensions of SEW in family businesses. They also indicate that different FIBER dimensions are prioritised differently in family businesses. Finally, the authors observe that there exists a negative relationship between SEW and internationalisation of family businesses, indicating that SEW hinders the internationalisation of family firms.
Research limitations/implications
The study lends to the readers, the understanding that SEW plays a significant role in the internationalisation of family firms; thus, some modification might be needed in the existing international business theories in order to explain the role of peculiar family characteristics in the internationalisation decisions of family firms. Further, since SEW hinders the internationalisation of family firms, it raises a question for researchers and family business leaders: Do family firms need to work on their socioemotional ties to avoid making suboptimal decisions?
Originality/value
The study is a response to the call by Cleary et al. (2019) to utilise the results of content analysis of SEW in determining its impact on the family firms' external events. Majority of the studies are still using univariate measures (e.g. percentage of family ownership) to capture SEW. However, this study attempts to calculate the SEW scores of the family firms along these FIBER dimensions through content analysis. This helps in scrupulously capturing the impact of SEW in the internationalisation of family firms.
Details
Keywords
Sonal Thukral, Deep Shree and Shakshi Singhal
With the rapid increase in the consumption of electrical and electronic innovations, responsible management and recycling of electronic waste (e-waste) or waste electrical and…
Abstract
Purpose
With the rapid increase in the consumption of electrical and electronic innovations, responsible management and recycling of electronic waste (e-waste) or waste electrical and electronic equipment (WEEE) has been a significant concern for the governments, stakeholders, researchers and industry practitioners around the world. Consumer awareness, disposal behaviour and perception are chief facets of designing sustainable management strategies. Although researchers have widely studied e-waste over many years, the research focusing on consumer awareness about e-waste recycling has gained momentum recently. This paper aims to systematise the existing literature and explore future research prospects on household e-waste sorting behaviour.
Design/methodology/approach
Web of science (WoS) core collection was searched using selected keywords to identify relevant articles published from 2001 to 2021. The search resulted in 1,156 research articles published from 2001 to 2021. After a detailed study, 85 articles were shortlisted for in-depth review. The review was conducted based on global trends, top journals, most prolific authors, most active e-waste research countries, and institutions centring on consumer participation in e-waste disposal and recycling behaviour. The present research has also identified around eleven factors that seem to have a bearing on consumer behaviour towards storage, disposal and recycling of e-waste.
Findings
E-waste research has gained increased attention in the last five years. The majority of the studies has focused on motivational factors and ignore the risks associated with handling e-waste. The present study reports the pertinent issue of lack of awareness among the masses about e-waste handling and disposal. Thus, bringing to the fore the lack of awareness programmes and initiatives. The analysis presents the gaps in the literature and future research agendas.
Originality/value
The review article will help in providing an in-depth understanding of consumer behaviour towards storage, disposal and recycling of e-waste and delineates the future direction of research that may be undertaken in this field of study.
Details
Keywords
Sonal Thukral and Apoorva Jain
For sustaining a competitive advantage in the integrated world economy, it has become imperative for family firms to internationalise their operations in overseas markets…
Abstract
Purpose
For sustaining a competitive advantage in the integrated world economy, it has become imperative for family firms to internationalise their operations in overseas markets. However, despite the growing set of literature, results are still inconclusive with respect to family firms’ internationalisation. Thus, this study aims to address this gap by systematically reviewing 142 articles (1991–2019) to help researchers in identifying and unfolding the unexplored themes in the underlying area.
Design/methodology/approach
For systematically reviewing articles, the study uses a three-step methodology following PRISMA guidelines, bibliometric analysis and thematic analysis. Descriptive statistics of 142 research articles are obtained through bibliometric analysis while thematic analysis is carried out to create themes or clusters of various factors relating to family firms’ internationalisation.
Findings
The current review uncovers the evolving trends in the research streams, most productive authors, top journals and articles, co-citation analysis, as well as the major themes surrounding the family firms’ internationalisation literature. Results from bibliometric analysis indicate that family firms’ internationalisation is an upcoming research area. Also, the review indicates an opportunity for scholars from developing nations to make significant contributions in the underlying research stream.
Research limitations/implications
Results from bibliometric and thematic analysis will help academicians and researchers in accumulating a holistic understanding relating to family firms’ internationalisation and understanding the upcoming trends in family firms’ research, thereby guiding the future research scope. Also, it will assist the family firms’ leaders and managers in understanding the important dynamics in overseas markets and various factors to be considered while planning their internationalisation.
Originality/value
Undertaking a systematic literature review presents readers with a state-of-the-art understanding of the underlying research topic. To the best of the knowledge, to date, the study is the first to conduct the review of literature through bibliometric analysis with the help of R Studio software in the field of family firms’ internationalisation. Also, the study is the first to review more than 100 research articles in the underlying area. Finally, the study proposes a comprehensive framework integrating the major themes and facets relating to family firms’ internationalisation.