Venture capital: Investor and investee perspectives

The venture capitalist plays a crucial role in, the startup and growth phases of entrepreneurial firms. Yet, the burgeoning but still relatively modest venture capital research literature continues to be characterized by isolated studies of how venture capitalists raise capital and select investments; little effort has been made to consolidate and integrate these findings. In particular, little is known about the impact of the venture capitalist's decision upon the entrepreneurial process.This paper has two objectives: The first is to review the available material and literature on venture capital decision-making and its impact on entrepreneurship. The second objective is to elucidate a research methodology which involves three different units of analysis as they relate to venture capital decision-making: the venture capitalist, the deal which was funded, and the proposal which was denied. Results from these three inter-related studies by the authors are reported.     

Managing the HR dimension of international project operations

While much is known about the role of HRM in achieving positive outcomes in foreign subsidiary and international joint venture contexts, there has been a paucity of research into HRM issues in international project operations. In this paper, we develop an analytical framework to demonstrate the HR activities of each stage of the international project lifecycle, drawing upon supporting data from a study of Australian firms in international development projects. The discontinuous, complex and unique characteristics of international projects produce distinct IHRM challenges: for the supplying firm, particularly staff deployment and HR planning; and for project workers, in terms of career trajectory and job security.     

Independent venture capital, corporate venture capital, and the internationalisation intensity of technology-based portfolio firms

Firms that internationalise early in their lives share characteristics with those that receive venture capital. The relationship between receipt of venture capital and the international intensity of 1348 young technology firms is examined, including whether the source of capital, from independent venture capital firms, corporations or private sources, has an impact. The absence of venture capital is shown to be positively associated with increased internationalisation. While previous literature suggests differences in the value added of different sources of venture capital, the results indicate no such differences in their impact on international intensity.     

The impact of cultural dimensions on Chinese expatriates' career capital

The existing expatriation literature confirms that international assignments (IAs) are an essential tool for developing international talent and global managers. However, the majority of relevant studies are conducted in Western developed contexts and neglect the effects on individuals from emerging countries such as China. In the Chinese multinational companies context, this paper explores the concept of career capital comprising knowing-how, knowing-whom and knowing-why. Using Hofstede's cultural dimensions, it investigates the impact of IAs on an individual's career capital. Twenty-eight semi-structured interviews with Chinese expatriates were conducted. Results suggest that the Chinese expatriates develop limited career capital from IAs. The research shows that the Chinese culture plays an important role in shaping organisational practices and individual behaviours and, consequently, the development of expatriates' career capital. It goes beyond the current individual and organisational focuses on IAs to include a cultural perspective on the development of career capital. Implications are rehearsed, exposing areas for further research.     

International recruitment and selection practices of South Korean multinationals in China

South Korean multinational enterprises (MNEs) have developed rapidly since the late 1950s. However, there is little research on, and hence little is known about, how South Korean MNEs manage human resources in overseas operations. To fill this gap, in the literature the current study investigates South Korean MNEs' international recruitment and selection policies and practices in their Chinese operations. It reveals that South Korean MNEs tend to adopt the polycentric approach or a mixed approach of being polycentric and ethnocentric to international staffing, with the number of expatriates dropping gradually over time. South Korean MNEs adopt ‘one-way selection’ in recruiting and selecting expatriates, and localise recruitment procedures and selection criteria for host-country nationals. South Korean MNEs have paid inadequate attention to: first, expatriates' career development; and second, personal and family issues emerging from expatriation and repatriation.     

The effect of international staffing practices on subsidiary staff retention in multinational corporations

This paper contributes to the scarce body of research on employee turnover in multinational corporations' foreign subsidiaries and addresses some key issues related to dealing with turnover of local staff. Based on a literature review, I conceptualize locals' perceived career prospects and their organizational identification as key variables mediating the relationship between international staffing practices and local staff turnover. In a second step, the paper develops instruments that help international firms to retain their subsidiary staff. Specifically, I focus on how international staffing practices need to be configured to ensure employee retention and I derive moderating factors. My arguments are integrated into a framework for the effect of international staffing practices on subsidiary staff retention in multinational corporations.     

Attracting cross-border venture capital: the role of a local investor

Examining an increasingly prevalent but under-researched phenomenon, cross-border venture capital investments, it is observed that local venture capitalists typically invest first, followed by foreign venture capitalists in later rounds. A model is developed that explains the role of a domestic venture capital investor in attracting foreign investors and which also accounts for the impact of various circumstances on the importance of this role. In our model based on analysis of nine cross-border venture capital-backed companies, local venture capitalists have several important roles in increasing the venture's cross-border investment readiness including advice to operational management and contributing contacts and local market knowledge. The importance of these roles is mitigated if the entrepreneurial team is highly experienced or if the home market is not important for the venture. The prominence of the local investor has signalling value. Finally, the local investor's international social capital facilitates the formation of cross-border syndicates. Overall, the model developed in the paper contributes to a better understanding of cross-border venture capital and in particular to the division of labour between domestic and foreign venture capitalists in international venture capital syndicates. The paper also contributes to the emerging literature on international social capital.     

Career capital during international work experiences: contrasting self-initiated expatriate experiences and assigned expatriation

This article explores the career capital of expatriates, differentiating between self-initiated expatriates (SEs) and company assigned expatriates (AEs). Previous research has considered issues such as individual background variables, employer and task variables, motives, compensation, and repatriation. The present study adds new perspectives related to the development of career capital. The article uses a survey of more than 200 Finnish expatriates to explore these concepts in relation to international work experiences; finding considerable similarities and some differences in the development of career capital of those sent on an expatriate assignment by an organization, and those having a self-initiated expatriate experience.     

Lesbian and gay expatriation: opportunities,barriers and challenges for global mobility

The research presented in this paper addresses an important gap in the expatriation literature in examining perceptions of opportunities, barriers and challenges for expatriation of lesbian and gay (LG) expatriates. This is an area that is under-researched despite such individuals representing a growing sector of the global talent pool. Based on an analysis of interviews with 20 LG expatriates, the study draws on social capital theory as a lens for highlighting LG expatriates' unique attributes and networks. The research is significant in suggesting that the expatriates' sexual minority status is viewed as both a disabler and enabler in expatriation. We suggest that there is a corporate ceiling for LG expatriates, and that they experience discrimination and stereotyping, and oftentimes limited organizational and host-country support. Significantly, the findings also extend research in suggesting that LG workers may have more opportunities in global staffing than previously thought and a valuable role in contributing to inclusivity debates and policy development on the global business stage. Furthermore, LG expatriates may be accepted in host countries when homosexuality is deemed legally or socially unacceptable for locals, and legal and financial independence within LG partnerships may provide them with more mobility than their heterosexual counterparts.     

International human resource policies and practices in japanese,european, and united states multinationals

This article presents the results of a survey comparing international human resource policies and practices in Japanese, European, and United States multinational companies. The survey focused on the use of expatriates over local nationals in overseas management positions, adoption of nonethnocentric policies, and incidence of international human resource management problems. Regression analysis using the entire sample indicated that ethnocentric staffing and policies are associated with higher incidence of international human resource management problems. Also, Japanese companies as a group are shown to have more ethnocentric staffing practices and policies, and they experience more international human resource management problems than do American and European firms.     

Repatriation: what do we know and where do we go from here

Abstract

The unparalleled growth in multinational corporations in recent decades has witnessed a commensurate rise in the deployment of expatriates to foreign subsidiaries and their subsequent repatriation. However, despite considerable progress in our understanding of the expatriation phase of international assignments, the literature on repatriation remains fragmented and incomplete. Plagued with problematic re-adjustments, high turnover rates, and a range of other obstacles, there is an urgent need for an improved understanding of repatriation. This study systematically reviews the repatriation literature over the previous four decades, identifies its major themes, gaps and limitations, and provides a framework that consolidates the literature and prompts future work in several important new directions.     

The career competencies of self-initiated and assigned expatriates: assessing the development of career capital over time

Abstract

Building on a modern careers approach, we assess the effects of working abroad on individuals’ career capital. Given the dearth of longitudinal studies, we return to a sample of economics graduates in Finland eight years later. We measure changes in three dimensions of career capital; ‘knowing how’, ‘knowing whom’, ‘knowing why’ and find that company assigned expatriates learn more than self-initiated expatriates. All three career capital areas benefit from international experience and all are increasingly valued over time. Based on our findings, we conclude that a dynamic notion of career capital acquisition and use is needed. Managerial implications include the need for a wider view of talent management for international businesses.     

Women and expatriate work opportunities in Austrian organizations

Previous research has indicated that female managers are still a minority among expatriate staff. As studies dealing with this topic from a European perspective are still more than rare, this study focuses on the situation of female expatriates in Austrian companies. After surveying the TOP 500 organizations and the largest banks, insurance and consulting companies in Austria, results showed that – although women are still under-represented in international management – among nearly one quarter of the respondents, women who have already succeeded in breaking through the glass ceiling of local management are also succeeding more frequently in getting postings abroad. Moreover, the limited representation of female expatriates was explained primarily by a general lack of female talent available for the functions which are relevant for international positions, second, by prejudices of host-country nationals towards female managers and, third, by a lack of interest shown by women in global assignments due to personal reasons. This paper reports on a questionnaire distributed to human resource managers and provides more insight into the subject of female expatriates. It begins by reviewing the literature dealing with women in international management before analysing the matter of under-representation of female expatriates from a different perspective and asking for the reasons why female managers are not sent abroad by Austrian companies. Then the research method is discussed before the findings are presented and their implications discussed in terms of future research.     

Work-life balance – a neglected issue among Austrian female expatriates

Previous research has highlighted the importance of subjective well-being and the expatriate's supportive personal environment for the success of an international assignment. As studies focusing on work-life balance of expatriates are still very rare, and research dealing with this topic from a gender perspective seems to be almost non-existent, this study emphasizes the work-life balance situation of female expatriates on foreign assignments. After having interviewed 10 female expatriates, results clearly support the existing state of the art in this field. Thereby work intrusion into family life, for example, has proven to have stronger impact on an expatriate's life than vice versa. Furthermore, several issues so far neglected in the literature have been revealed that influence women's work-life balance abroad. The importance of leisure time, social networks, sports and personal confidence can be determined. Additionally, as work-life balance has an individual meaning, support measures offered by companies are thus also required to be tailored individually. This paper reports on narrative interviews with female expatriates and provides more insight into the subject of work-life balance of international women managers. It begins by reviewing the literature on work-life balance and expatriation before analysing the specific matters of work-life balance of female expatriates and asking how women deal with the additional stress and pressure arising on an international assignment. Then, the underlying Grounded Theory Method is discussed before presenting the findings and discussing their implications in terms of future research.     

Human resource management and early internationalization: is there a leap-frogging in international staffing?

The present study focuses on the international staffing of early internationalizers by linking the Ethnocentric, Polycentric, Regiocentric, and Geocentric (EPRG) concept with the Process Theories of Internationalization. On a dataset of 116 (N) German medium-sized companies, we test whether the determinants which allow firms to internationalize shortly after their inception, namely prior international experience, technological intensity, and networks, influence the firms' international staffing. We further elaborate whether this influence differs between early and late internationalizers. The empirical results show that prior international experience is not associated with the firms' international staffing at all, and thus, does not allow conclusions. Technological intensity increases the probability of the choice of an ethnocentric staffing policy, especially for early internationalizers. In contrast, networks enable firms, especially early internationalizers, to pursue regiocentric or geocentric staffing policies.     

中国风险投资企业项目管理的核心问题及其解决策略：组织和人力资源管理角度的思考

项目管理作为风险投资行业成功运作的关键环节 ,却被国内诸多风险投资企业所忽视。本文以该行业发展较为成熟的美国为比较对象 ,以文化—制度—技术三层面为研究框架 ,分析了中国风险投资产业的软肋———项目管理的特殊性及其存在的问题 ,提出了国内风险投资公司在项目管理中的组织控制和派出监管人员的策略。     

Capital gains: expatriate adjustment and the psychological contract in international careers

This paper argues that the notion of adjustment to careers involving international assignments needs to be developed further than the current literature reflects. An expatriate assignment is an expatriate's opportunity to build career capital and a company's opportunity to generate social and intellectual capital. The extent of the capital gains will depend considerably on the expatriate's adjustment during and after the assignment, which is influenced by the psychological contract. We argue that our understanding of the career impact of expatriation will be enhanced by a more refined picture of the adjustment that expatriates experience during the assignment and during repatriation. In particular, we examine adjustment as process rather than as event. We propose a broad conception of expatriate adjustment and its link to careers. © 2009 Wiley Periodicals, Inc.     

Factors affecting international staffing in Chinese multinationals (MNEs)

While the existing models explain factors determining approaches to international staffing of multinational enterprises (MNEs) from developed countries, there is little known about MNEs of developing and transforming economies. This qualitative empirical research explores the factors determining international staffing in Chinese MNEs and argues that Western models are generally applicable to the Chinese context. However, the same categories of determining factors have sometimes different underlying meanings or varied contents. Contrary to the prevailing literature, this study shows international experience is a catalytic agent of change rather than a determinate of international staffing approach. Moreover, some factors that have not been much considered in the literature have been evidenced to be important factors affecting international staffing particularly in Chinese MNEs. Further study directions and implications for practitioners are also discussed.     

Expatriate or local? Predicting Japanese,subsidiary expatriate staffing strategies

Can Dunning's OLI (Ownership, Location, Internalization) framework be extended from predicting FDI location decisions and entry mode choices to other international strategic decisions? Using data from 891 new (two years or younger) Japanese foreign subsidiaries, we investigate the relationship between Dunning's OLI variables and expatriate staffing ratios (the ratio of expatriates to local employees). We found empirical support for Dunning's framework as a predictor of Japanese new subsidiary expatriate staffing ratios. Implications and directions for future research are discussed.     

Taking a Second Look in a Warped Crystal Ball: Explaining the Accuracy of Revised Forecasts

The fundamental questions we address are whether firms with a higher initial forecasting ability are able to accurately revise the exit forecasts of their investments; and how co‐investment partners and value‐adding commitment with their investment influence the main effect. We explore these questions with novel and unique data collected via mixed research methods on venture capital firms’ forecasts of 114 portfolio companies. We find that venture capital firms that are better at making initial forecasts are less effective in revising their forecasts. In addition, while the number of co‐investment partners positively moderate this relationship, venture capital firms’ value‐adding commitment moderates it negatively. Our findings contribute to the literature on organizational forecasting as well as inter‐organizational knowledge transfer and knowledge creation. They also provide novel insights into venture capital literature and practice.