Business Commons^™

Revisiting The Internationalization-Performance Relationship: A Twenty-Year Meta-Analysis Of Emerging Market Multinationals, Sihong Wu, Di Fan, Liang Chen

Research Collection Lee Kong Chian School Of Business

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With the rapid growth of emerging market multinational enterprises (EMNEs), increasing interest has been focused on exploring the internationalization-performance (I-P) relationship of EMNEs. Yet findings on the relationship remain contradictory. Although researchers emphasize the home-country-bounded nature of EMNEs, less is known about how home-government features and the EMNEs' political mindset affect their internationalization and performance. This study integrates and extends the literature on the I-P relationship of EMNEs using a meta-analysis covering a dataset of 218 effect sizes from 186 retrieved studies published between 1998 and 2021. Findings show that the I-P relationship is overall positive, yet it varies across …

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The Role Of Politics And Corruption In The Rise Of The African Firm, Wedu Ketema, Howard Jean-Denis

Seaver College Research And Scholarly Achievement Symposium

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Many African businesses lag in financial performance compared to the performance of companies in the West. Despite this, the continent’s economic output has continued to rise considerably in the past two decades, but many of these economic achievements have been discredited. Despite the West’s view of Africa as a continent unprepared for economic growth due to simmering conflict, threats of terror, and other barriers to business, African business has continued to boom. Over the past two decades, Africa has made massive strides to “catch up to the West.” In fact, according to experts, many countries in Africa have experienced what …

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Gender-Based Characteristics Of Micro, Small And Medium-Sized Enterprises In An Emerging Country: Is This A Man’S World?, Angelica Maria Sanchez-Riofrio, Nathaniel C. Lupton, Segundo Camino-Mogro, Álvaro Acosta-Ávila

Faculty Research, Scholarly, and Creative Activity

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Purpose: Worldwide, Ecuador is one of the countries with the most entrepreneurial activity from micro, small and medium-sized enterprises (MSMEs). However, the effect of adopting the US dollar (dollarization), over which the central bank has no control, combined with being mainly an exporter of primary products, as well as strategic currency devaluation by neighboring economies, has created a difficult situation, especially for Ecuadorian women’s MSMEs. This paper aims to study the relationship between female ownership and Ecuadorian MSMEs’ financial, economic and social outcomes.

Design/methodology/approach: The authors compile a near-population panel of 617,804 firm-year observations representing an unbalanced panel of 112,917 …

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Essays On Emerging Multinational Enterprises' Acquisitions In Developed Economies, Faisal R. Harahap

FIU Electronic Theses and Dissertations

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This dissertation investigates emerging multinational enterprises (EMNEs)’s acquisitions of firms in developed economies (DE) through three distinctive but interrelated essays. Despite costs EMNEs must offset from the obvious cultural distance (CD) they encounter with limited exploitable advantages, EMNEs have continued to aggressively acquire firms in DE, suggesting there are ways for the EMNEs to effectively overcome CD. In Essay 1, using insights from the symbolic interaction paradigm in sociology, I developed the Dynamic Socio-Cultural Model (DSCM), to uncover the general process of cultural creation and change. At the core of the DSCM is the process of collective learning and adaptive …

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Cross-Border M&A: Challenges And Opportunities In Global Business Environment [Guest Editors' Introduction], Rosa Caizza, Katsuhiko Shimizu, Toru Yoshikawa

Research Collection Lee Kong Chian School of Business

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Under a rapidly changing and globalizing environment, mergers and acquisitions (M&As) have become one of the most important strategic initiatives. In this context, cross-border M&As provide various opportunities and benefits such as expeditious entry into new markets by gaining local knowledge, supplier networks, government relationships, and customers embedded in the target firm.

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Risk Perception And Psychological Behavior Of Investors In Emerging Market: Indonesian Stock Exchange, Y. Yuliani, I. Isnurhadi, Ferry Jie

Research outputs 2014 to 2021

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Capital market functions as a mediator between parties who have excess funds that is, investors and those who need the funds that is, emitents. Decision to sell and buy shares of a financial asset is very strategic decision for investors because it is associated with the chances of return to be earned in the future. The objective of this paper is to investigate the investor's psychology on buying and selling common stock in the stock exchange in emerging market. The specific purpose of this research is to provide the simultaneous empirical evidence about the perception of risk, psychology aspects towards …

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Is More Always Better? Risk Trade-Offs Among Internationalizing New Ventures, Stephanie Fernhaber, Patricia Mcdougall-Covin

Stephanie A. Fernhaber

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Purpose

– The purpose of this paper is to investigate how ventures manage the negative returns associated with higher levels of internationalization. Many new ventures are internationalizing to fully exploit new innovations and/or gain access to larger markets. Yet at some point the rising costs associated with internationalization outweigh any benefits, resulting in an inverted U-shaped relationship between internationalization and performance.

Design/methodology/approach

– New ventures are theorized to better manage high levels of internationalization by limiting exposure to other sources of risk. This can be achieved by leveraging greater size and/or limiting simultaneous diversification efforts on product innovation. To test …

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Performance Issues In U.S.–China Joint Ventures, Gregory E. Osland, S. Tamer Cavugsil

Gregory E. Osland

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Based on an in-depth study of U.S.-China joint ventures, this article offers some insights into the performance of such international business relationships. While the conventional literature treats government as an amorphous aspea of the political-legal environment, in this case government is an active participant and influence in the performance of international joint ventures (UVs). It has both a constraining and enabling effect on LJV structure, strategy, and performance. For example, limits can be placed on ownership shares of joint ventures and on prices of the output. At the same time, government can cooperate with LJVs and foreign parent companies by …

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Transnational Companies And Radical Transformation Processes: A Study Of Performance In Comparison To Other Multinational Companies, Jorge Alejandro Palacios

HCBE Theses and Dissertations

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The objective of this study was to answer the following question: Do organizations that were defined as having successfully adopted the transnational model, as per Bartlett and Ghoshal (1989), and labeled as transnational companies (TNC), perform significantly better than other multinational companies (MNC) when going through radical transformation processes?

This research question was answered through a mixed method research design. The first part used a quantitative research approach and evaluated the financial performance of TNCs selected from the Bartlett and Ghoshal (1989) research, using secondary data sources from 6 TNCs and 20 MNCs. The second part used a qualitative approach …

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Is More Always Better? Risk Trade-Offs Among Internationalizing New Ventures, Stephanie A. Fernhaber, Patricia P. Mcdougall-Covin

Scholarship and Professional Work - Business

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Purpose

– The purpose of this paper is to investigate how ventures manage the negative returns associated with higher levels of internationalization. Many new ventures are internationalizing to fully exploit new innovations and/or gain access to larger markets. Yet at some point the rising costs associated with internationalization outweigh any benefits, resulting in an inverted U-shaped relationship between internationalization and performance.

Design/methodology/approach

– New ventures are theorized to better manage high levels of internationalization by limiting exposure to other sources of risk. This can be achieved by leveraging greater size and/or limiting simultaneous diversification efforts on product innovation. To test …

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The Mediating Effect Of Innovation On The Relationship Between Corporate Reputation And Performance In U.S. Firms, Marcelo J. Alvarado-Vargas

FIU Electronic Theses and Dissertations

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In recent years, corporate reputation has gained the attention of many scholars in the strategic management and related fields. There is a general consensus that higher corporate reputation is positively related to firm success or performance. However, the link is not always straightforward; as a result, it calls for researchers to dedicate their efforts to investigate the causes and effects of firm reputation and how it is related to performance. In this doctoral dissertation, innovation is suggested as a mediating variable in this relationship. Innovation is a critical factor for firm success and survival. Highly reputed firms are in a …

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Untangling The Relationship Between New Venture Internationalization And Performance, Stephanie A. Fernhaber

Scholarship and Professional Work - Business

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To help untangle the inconsistency in prior performance studies for new venture internationalization, the dynamic capabilities perspective is revisited to consider whether the relationship is more complex than previously assumed. While internationalization requires the reconfiguration of routines and resources, survivability is argued to peak at moderate levels of internationalization where the associated resources and risk is balanced between local and foreign markets. In contrast, sales growth is suggested to peak at either low or high levels of internationalization where a singular market focus and set of capabilities is being exploited. The results confirm that the level of new venture internationalization …

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International Clustering And Foreign Subsidiary Performance, Jing'an Tang

WCBT Faculty Publications

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The article discusses the development and testing of a network-based model of international clustering and foreign subsidiary performance in an attempt to determine how multinational companies (MNC) enter a foreign country to build their own foreign cluster. It focuses on the foreign peer network (FPN) to incorporate both the social and economic interactions within a cluster. An FPN is described as a set of social and economic relations among a group of foreign subsidiaries that are from the same home country and run same or similar businesses within a common geographic area in the host country. The initial condition of …

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More Evidence On The Value Of Chinese Workers’ Psychological Capital: A Potentially Unlimited Competitive Resource?, Fred Luthans, James Avey, Rachel Clapp-Smith, Weixing Li

Department of Management: Faculty Publications

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As China continues its unprecedented economic growth and emergence as a world power, new solutions must be forthcoming to meet the accompanying challenges. We propose a positive approach to Chinese HRM that recognizes, develops and manages the psychological capital (PsyCap) of workers. After providing a brief overview of hope, efficacy, optimism, resilience and overall PsyCap in today’s Chinese context, the results of a follow-up study provide further evidence that the PsyCap of Chinese workers is related to their performance. The implications that this evidencebased value of Chinese workers’ psychological capital has for China now and into the future concludes this …

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Which Ties Matter When? The Strategic Impact Of Network Linkages On Foreign Subsidiary Survival, Jing'an Tang, Paul W. Beamish

WCBT Faculty Publications

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In addition to enriching the network theory by specifying the conditions under which business networks affect firm performance, our study contributes to the international strategic alliances literature in answering the questions of when to ally and with whom to ally for managers dealing with international expansions.

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Partnering Strategies And Performance Of Smes' International Joint Ventures, Jane Wenzhen Lu, Paul W. Beamish

Research Collection Lee Kong Chian School Of Business

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The international joint venture (IJV) is an important mode in the internationalization of small- and medium-sized enterprises (SMEs). Internationalization in turn is an entrepreneurial behavior in the pursuit of growth. Partnering strategies in the formation of IJVs can have significant effects on the outcome of SMEs' international expansion. In this study, we examine the performance implications of two types of resources contributed by SMEs' IJV partners, host country knowledge and size-based resources. We develop and test three sets of hypotheses about the longevity and financial performance of a sample of 1117 international joint ventures established in 43 countries by 614 …

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Multinationality-Performance Relationship: A Review And Reconceptualization, Madan Annavarjula, Sam Beldona

WCBT Faculty Publications

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Numerous empirical investigations have attempted to study the relationship between multinationality and firm performance. Results from these studies have produced conflicting findings about this relationship. It is argued that one of the causes of the conflicting findings may be an imprecise conceptualization of multinationality. A multidimensional conceptualization is proposed based on a methodological review of previous research.

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Performance Issues In U.S.–China Joint Ventures, Gregory E. Osland, S. Tamer Cavugsil

Scholarship and Professional Work - Business

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Based on an in-depth study of U.S.-China joint ventures, this article offers some insights into the performance of such international business relationships. While the conventional literature treats government as an amorphous aspea of the political-legal environment, in this case government is an active participant and influence in the performance of international joint ventures (UVs). It has both a constraining and enabling effect on LJV structure, strategy, and performance. For example, limits can be placed on ownership shares of joint ventures and on prices of the output. At the same time, government can cooperate with LJVs and foreign parent companies by …

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