Open Access. Powered by Scholars. Published by Universities.®
Articles 1 - 2 of 2
Full-Text Articles in Business
Subsidiary Staffing, Location Choice, And Shareholder Rights Effectiveness, Nathaniel C. Lupton, Vishaal Baulkaran, Yeonji No
Subsidiary Staffing, Location Choice, And Shareholder Rights Effectiveness, Nathaniel C. Lupton, Vishaal Baulkaran, Yeonji No
Faculty Research, Scholarly, and Creative Activity
Institutional differences between countries influence strategic choices and performance of international businesses, but the unintended effects of legal institutions on firm legitimacy have received less attention. We argue that, while minority shareholder rights protection in an investment location does not directly protect shareholder interests abroad, the normative and mimetic effects it has on host country managers can mitigate agency problems. Using Japanese FDI established between 1986 and 2013 we find that (a) subsidiaries established in host countries with higher shareholder rights protection employ a smaller proportion of Japanese expatriates, (b) shareholder rights protection enhances a country’s FDI attractiveness, and (c) …
Innovation Outcomes Of Knowledge-Seeking Chinese Foreign Direct Investment, Xianming Wu, Nathaniel C. Lupton, Yuping Du
Innovation Outcomes Of Knowledge-Seeking Chinese Foreign Direct Investment, Xianming Wu, Nathaniel C. Lupton, Yuping Du
Faculty Publications
Purpose
The purpose of this paper is to investigates how organizational learning, absorptive capacity, cultural integration, specialization of the acquired firm and characteristics of transferred knowledge impact innovation performance subsequent to overseas acquisitions.
Design/methodology/approach
Survey responses from 222 Chinese multinational enterprises engaged in overseas acquisitions.
Findings
Differences between acquiring and acquired firms’ capabilities, while having a positive direct influence, suppress the positive impact of organizational learning and absorptive capacity, suggesting that multinationals require some basic level of capabilities to appropriate value from overseas acquisitions.
Research limitations/implications
This paper investigates the impact of knowledge-seeking overseas acquisition of Chinese multinationals on innovation …