Exploring the factors influencing the negotiation process in cross-border M&A

This research study provides an empirical examination of the impact of national cultural distance, organizational cultural differences, communication, and planned employee retention on the effectiveness of negotiation process in the cross-border mergers & acquisitions (M&As). We developed and tested a conceptual framework of negotiation process in order to provide a framework for analysis of the key components of the negotiation process in the cross border M&A. The findings indicate that communication positively influence antecedent and concurrent phase of negotiation process. In addition, national cultural distance and organizational cultural differences negatively influence the effectiveness of concurrent phase. We also found that national cultural distance moderates the relationship between communication and effectiveness of concurrent phase of the negotiation process, as such that the positive effect of communication is lower when national cultural distance is higher. Furthermore, we found that planned employee retention positively affect the effectiveness of concurrent phase. Finally, the effectiveness of concurrent phase positively influence the effectiveness of consequent phase i.e. M&A agreement. The contribution of this study lies in providing new insights on negotiation-associated factors for incumbent executives, in order to enable them to better plan and implement cross-border mergers and acquisition deals.     

Explaining the trends in the UK cross-border mergers & acquisitions: An analysis of macro-economic factors

Most of the growth in international production over the past decades has been via cross-border mergers and acquisitions (CBM&As). Yet prior studies examining the trajectory of cross-border M&A activities as an entry mode of FDI have focused on industry and firm level factors. Dunning (2009) emphasised the importance of macroeconomic variables which may explain foreign direct investment and called for more research to improve our understanding on the effects of macroeconomic variables. Building on prior studies, this study attempts to investigate the role of macroeconomic influences on CBM&As activities in the UK over the 1987–2006 period. This study finds that GDP, exchange rate, interest rate and share prices have significant impact on the level of outward UK CBM&As. On the other hand, GDP, money supply and share price have statistically significant impact on the UK CBM&As inflows.     

What drives capital flows? The case of cross-border M&A activity and financial deepening

What key roles do macroeconomic and financial variables play in the foreign direct investment (FDI) decision of firms? This question is addressed in this paper using a large panel data set of cross-border Merger & Acquisition (M&A) deals for the period 1990-1999. Various econometric specifications are built around the simple “gravity model” commonly used in the trade literature. Interestingly, financial variables and other institutional factors seem to play a significant role in M&A flows. In particular, the size of financial markets, as measured by the stock market capitalization to GDP ratio, has a strong positive association with domestic firms investing abroad. This result points to the importance of domestic financial conditions in stimulating international investment during the boom years of 1990s, and accords with the significant drop in cross-border M&As in recent years.     

Effects of foreign acquisitions on financial constraints,productivity and investment in R&D of target firms in China

This paper examines whether foreign acquisitions lessen financial constraints, improve investment in research & development (R&D) and productivity of the target firms in China based on a sample of 914 cross-border mergers and acquisitions (CBM&A) over the period of 1994–2011. Using investment to cash-flow sensitivity to measure financial constraints, we find that foreign acquisitions in China are associated with a reduction of target firms’ financial constraints, irrespective of the ownership type of the target firm. However, the extent of financial constraint reduction is pronounced for non-SOEs compared to state-owned enterprises (SOEs). This study also provides evidence that foreign acquisitions improve Chinese target firms’ productivity and investment in R&D.     

Acquiring financial resources from foreign equity capital markets: An examination of factors influencing foreign initial public offerings

An increasing number of firms are making initial public offerings in foreign markets to circumvent constraints in the availability of capital and to provide an exit for their investors. However, previous research on foreign initial public offerings and their determinants is very limited. In this paper, we contribute to this literature by demonstrating that international experience of the management team and pre-IPO ownership by foreign investors are positively related to foreign initial public offerings. We test our hypotheses using data on initial public offerings of European companies from 1991–2001. The results support our hypotheses. The findings have important implications for entrepreneurs, investors, and public policy.     

企业战略形成过程的类型及受组织因素影响的实证研究

Using data collected from 126 firms, this article attempts to classify different patterns of strategy formation process and identify organizational factors influencing the processes. Based on a clustering analysis method, we identify four patterns of strategy formation processes varying in main characteristics, such as command, adaptive, vision, and external constraints, etc. We also find that a firm’s ownership type and its development stage have significant effects on strategy formation processes.      

Value chain integration of base of the pyramid consumers: An empirical study of drivers and performance outcomes

The seminal works on Base of the Pyramid (BOP) markets encourage companies to explore untapped low-income markets and to alleviate poverty by providing affordable products and services. The transition to second generation BOP strategies has centred on the integration of local consumers across value chain activities. This integration presents challenges both for firms and for low-income consumers due to the nature of informal BOP markets, severe institutional voids and lack of local knowledge of firms. In this context, little is known about the motivational drivers of firms to integrate BOP consumers in value creation activities and the impact on different performance dimensions, namely economic, social and ecological. This study adopts the perspective of micro-, small- and medium-sized enterprises (MSMEs) and investigates drivers and performance outcomes of BOP consumer integration. For this purpose, we develop a theoretical framework and test it empirically by employing a unique dataset of 142 enterprises which provide basic products and services to low-income markets. Our findings provide empirical support for the claim that BOP consumer integration enhances economic, social and ecological performance. MSMEs in our sample engage consumers mainly due to a strong intrinsic motivation to drive social impact rather than a pragmatic motivation to overcome information asymmetries. While studies of multinationals entering BOP markets almost exclusively report the need for cross-sector partner collaboration, our findings suggest that this may not be the case for MSMEs.     

Reinventing the branch: An empirical assessment of banking strategies to environmental differentiation

The present study investigates the effects of two atmospheric differentiation strategies currently used by banks: co-locating with a hedonic business vs. refurbishing through an upscale environment. We assessed the potential moderating effects of congruency between the retail environment and the type of services. Using a Structural Equation Model based on 300 bank visit intercepts, we found significant differences between modern branch concepts and the traditional one in their influence on customers’ retail experience. More specifically, the type of atmospheric strategy moderates the relationship between retail environment and customers’ affect and the relationship between affect and approach behavior. Also, the mediating role of the employees and financial services evaluation varies depending on the branch environment. We conclude that a modern, mildly arousing and pleasure-oriented retail environment is the most suited at maximizing customers approach behavior. Adverse effects from a highly-arousing environment are discussed in the light of the financial services context. Theoretical and managerial implications along with avenues for future research are proposed.     

中国企业的学习型组织文化:基于人口统计变量、企业属性、工作满意度和组织绩效的实证分析

By using a Western concept—the instrument called dimensions of learning organization questionnaire (DLOQ), and the data collected from 919 employees in nine companies located in Guangdong Province, China, the present empirical study explores the culture of learning organizations in Chinese business settings. Findings suggest that the DLOQ is applicable to the context of China as well, and those demographic variables, such as age and educational level, together with the types of ownership of Chinese companies, such as state-owned enterprises (SOEs) and privately-owned enterprises (POEs), suggest differences in the culture of learning organizations. Results also indicate that the learning organization culture of a firm has strongly positive impact on employees’ job satisfaction and perceived organizational performance. Two implications should be noted. First, as employees in middle age and with college education show the strongest sense of improving the learning culture, it can be inferred that demographic characters and groups may influence the organization’s learning culture differently. Second, as POEs have a better learning atmosphere than SOEs, it can be inferred that POEs have a stronger competitiveness than SOEs in terms of learning ability and organizational performance. To indigenize the Western construct and instrument of learning organizations, the present study, as an exploratory research, gives substantial knowledge on the subject and seeks to fill the gap in the literature, despite the limitations of cultural nuances and a narrowly-concentrated sample.     

The dynamics of online word-of-mouth and product sales—An empirical investigation of the movie industry

There are growing interests in understanding how word-of-mouth (WOM) on the Internet is generated and how it influences consumers’ purchase decisions at retail outlets. A unique aspect of the WOM effect is the presence of a positive feedback mechanism between WOM and retail sales. We characterize the process through a dynamic simultaneous equation system, in which we separate the effect of online WOM as both a precursor to and an outcome of retail sales. We apply our approach to the movie industry, showing that both a movie's box office revenue and WOM valence significantly influence WOM volume. WOM volume in turn leads to higher box office performance. This positive feedback mechanism highlights the importance of WOM in generating and sustaining retail revenue.     

Seeking greener pastures: a theoretical and empirical investigation into the changing trend of foreign direct investment flows in response to institutional and strategic factors

A generic theoretical model is proposed that provides a holistic conceptualization of the phenomenon of changing trend of FDI flows. Integrating both institutional and strategic factors, a rationale for such a change is provided, and the circumstances under which future shifts might take place are identified. A collection of criteria and incentives that various host governments and their agencies must provide to attract FDI are outlined. Several propositions that lead to empirically testable hypotheses are developed from this model. Statistical evidence is then provided of a shift in FDI flows, and the change in their determinants, by empirically analyzing investment by US multinational enterprises into Western Europe and Asia over the 20-year period, 1981–2000.     

Determinants of workers’ remittances: An empirical investigation for a panel of eleven developing Asian economies

We explore the key motives of migrant workers’ remittances from abroad for 11 major Asian migrant‐sending countries. Using panel regressions, we find that relative higher growth rate, interest rate and capital market returns of home over the host, investment, financial deepening at home have significant impact on remittance inflows into Asia, along with higher per capita incomes and international crude oil prices. With incorporation of per capita incomes and lagged impact of remittances, we observe an emergence of consumption motives to remit. Therefore, we conclude that both investment and altruistic motives are the driving forces for remittances inflows into the Asian economies.     

Exploring the post-termination stage of consumer–brand relationships: An empirical investigation of the premium car market

This research extends customer lifecycle models to include a post-termination stage that bridges the dissolution stage of a consumer–brand relationship with a potential recovery stage. Drawing from 43 depth interviews with former customers of a car brand, this study relies on grounded theory and triangulation to explore consumer responses in the post-termination stage and finds evidence for both negative and positive customer responses after dissolution. The authors combine qualitative techniques with categorical principal component analysis (CATPCA) to explore the dimensionality of post-termination responses and extract relationship-related and termination-related response dimensions. They use these dimensions to identify four distinct post-termination customer clusters, which differ systematically with the customer's termination reasons, as demonstrated through a series of exact logistic regressions. In addition to providing evidence of a post-termination stage, this study offers implications for customer relationship management.     

旅游景区门票价格影响因素研究——基于全国222家5A级景区的实证分析

基于旅游供给视角,以全国222家5A级景区的门票价格为被解释变量,选取景区交通可达性、旅游地经济水平、旅游地旅游发展水平三个外部因素和景区瞬时容量、资源品质、资源属性三个内部因素为解释变量,构建多元线性回归模型,并进行最小二乘(OLS)估计和相关检验。研究显示:景区门票价格主要受到核心资源属性、旅游地旅游发展水平的影响;景区的可达性、瞬时容量在门票价格模型中未能通过统计性检验,但在理论上与景区门票价格紧密相关;旅游地经济水平与旅游发展水平对景区门票的影响有异曲同工之妙,但旅游发展水平对门票的影响更大。