Contemporary Issues in International Business - Institutions, Strategy and Performance

Acknowledgements

Contents

Editors and Contributors

List of Figures

List of Tables

1 No Longer at Ease in the Old Dispensation: Reappraising the Role of International Business in the World Economy

The Background to This Volume

Contributions to This Volume

Institutions and International Business Strategy

Institutions, Emerging Markets and Economic Performance

Headquarter-Subsidiaries Relations

Location Decisions and MNEs Performance

Part I Institutions and International Business Strategy

2 Multinationals, Corporate Social Responsibility and Regional Change in Transition Economies

Introduction

Economic Development in Emerging Economies—An IB Perspective

MNEs and Industrial Upgrading in Emerging Economies

MNEs, CSR and Development in Emerging Economies

Economic Development in Emerging Economies—A Geographical Perspective

Institutions, Institutional Change and Regional Economic Development

University–Industry Linkages and Regional Economic Development

The CSR-RIU Model

Global CSR Certificates and Regional Institutional Change

The Formation of UVILs: Institutional Entrepreneurship Through Local CSR

Conclusion and Outlook

References

3 International Business and Corporate Wrongdoing: A Review and Research Agenda

Introduction

Corporate Wrongdoing in Management Research

A Brief Overview of the Literature

Corporate Wrongdoing: Definitions and Measurement Issues

IB Research and MNCs’ Wrongdoing

Unaddressed Questions and Future Research Directions

References

4 The Internationalisation of Ventures: The Roles of a Nation’s Institutions and the Venture’s Value Orientation

Introduction

Theoretical Framework and Hypothesis Development

A Nation’s Formal and Informal Institutions and the Likelihood of Venture Internationalisation

The Venture’s Value Orientation and Its Likelihood of Internationalisation

Methodology

Data

Dependent Variable: International Ventures vs. Domestic Ventures

Independent Variables: Formal and Informal Institutions

Venture Value Orientation: Socially Oriented vs. Profit-Oriented

Control Variables

Model

Results

Discussion

Formal Institutions and Venture Internationalisation

Informal Institutions and Venture Internationalisation

Social Value Orientation and Venture Internationalisation

Conclusions

References

Part II Institutions, Emerging Markets and Economic Performance

5 Global Security Risks, Emerging Markets and Firm Responses: Assessing the Impact of Terrorism

Introduction

Firm Performance, Terrorism and EMNEs

Firm Performance

Terrorism

Theoretical Justification for Examining the Intersection Between EMNEs and Terrorism

EMNES and Firm Performance in Dangerous Locations

Contextual Evidence from Mexico

The Terrorism Threat

Firm Responses and Performance: The Case of Grupo Carso

Discussion and Conclusion

References

6 Institutions, Economic Growth and International Competitiveness: A Regional Study

Introduction

Institutions, Competitiveness and Economic Performance: Definition of Concepts

Political Institutions

Economic Institutions

Institutions and International Competitiveness

Institutions and Economic Growth

Reviewing Economic Performance and Foreign Investment in the Caribbean Region: Rationale for This Study

Methodology

Results on Variance in the Caribbean Region’s Economic Performance

The Effect of Institutional Quality on Economic Performance

Discussion and Conclusions

References

7 The Complementarity of Foreign and Domestic Investments by Emerging-Market Multinationals

Introduction

The Impact of Foreign Direct Investment on Domestic Investment

Complements: Foreign Investment has a Positive Impact on Domestic Investment

Substitutes: Foreign Investment has a Negative Impact on Domestic Investment

Inconclusive: Foreign Investment has an Unclear Influence on Domestic Investment

The Impact of Foreign Direct Investment on Domestic Investment by Emerging-Market Firms

The Complementarity of Foreign and Domestic Investment by Emerging-Market Multinationals

Research Design

Results

Conclusion

References

Part III HQ-Subsidiaries Relations

8 The Dynamics of Differentiation: The Resource Bases of Development and the Roles of MNE Subsidiaries

Introduction

Levels of Developmental Resources

Developmental Resources and the Strategic Diversity of MNEs

Conclusion

References

9 Unfolding the Intra-organisational Perception Gap in Decision-Making

Introduction

Literature Review and Conceptual Development

Evolution of the MNE and Decision-Making

Methodology

Data Description

Questionnaire Design

Data Analysis and Results

Discussion and Conclusion

Limitations and Recommendations

References

10 Strategy Creativity in Multinational Subsidiaries

Introduction

Theoretical Background

Strategy in Multinational Subsidiaries

Strategy Creativity

Subsidiary CEO Entrepreneurial Self-efficacy

Strategic Learning Capability

Strategic Autonomy

Strategic Capabilities

Data and Methods

Independent Variables

Strategic Learning Capability

Strategic Autonomy

Strategic Capabilities

Dependent Variable

Strategy Creativity

Mediating Variable

Subsidiary CEO Entrepreneurial Self-efficacy

Control Variables

Descriptive Statistics and Statistical Safeguards

Data Analysis

Results

Discussion

Implications for Practice

Limitations and Implications for Future Research

References

11 Subsidiary Combinative Capability for Knowledge Creation as a Co-evolutionary Development Process

Introduction

Conceptual Background: The Janus-Faced Subsidiary

The Janus-Faced Subsidiary: Allegiance to Internal and External Networks

The Combinative Capability of the Janus-Faced Subsidiary

The Combinative Capability of Competence Creators Versus Competence Exploiters

Towards a Research Agenda

Discussion and Conclusions

References

Part IV Location Decisions and MNEs Performance

12 Establishing How MNCs Are Defined: A Response to the Regional/Global Debate

Introduction

Literature Review

Regionalisation Versus Globalisation

Regionalisation

Globalisation

Methodology Employed

Variables Selected

Data

Classification Methods and Definitions

Summary of Models

Results

Concluding Remarks

References

13 Outward FDI from South Korea: The Relationship Between National Investment Position and Location Choice

Introduction

Revisiting the IDC Perspective: The Case of South Korean Outward FDI Development

South Korean Outward FDI Motives: An Integrated Model

Evolution of FDI and the Changing Internationalisation Strategies of South Korean MNEs

South Korean Outward FDI Location Choices by Industry and FDI Motives

Discussion and Conclusions

References

14 Does It Pay to Be International? Evidence from Industrial District Firms

Introduction

Theoretical Framework

Offshoring, Manufacturing, and Organisation of the Value Chain

Local and Global Location Strategies of Industrial District Firms

Data and Methodology

Results

Discussion and Conclusion

References

15 Firm Diversification and Financial Performance: Evidence from Manufacturing Firms Worldwide

Introduction

Literature Review and Hypotheses Development

The Joint Effect of Product and International Diversification on Firm Performance

High-tech Versus Low-tech Sector Context

Emerging Versus Developed Country Context

Data

Empirical Specification

Descriptive Statistics

Regression Results

Discussion and Conclusion

References

Index