Bring institutions into FDI spillover research: Exploring the impact of ownership restructuring and institutional development in emerging economies

Extant studies exploring the influences of foreign direct investment (FDI) spillovers on the productivity of local firms have provided conflicting evidence. In particular, they have largely overlooked the important role of institutional mechanisms in the host market in understanding the sources of the variation in FDI spillover effects on the productivity of local firms, especially in the context of emerging markets. Using a comprehensive panel data set of manufacturing firms in China during 1998–2007, our paper presents an integrative framework of how FDI spillovers affect the productivity of local firms in emerging markets. We identify an inverted U-shaped relationship between FDI spillovers and the productivity of local firms in China. This result suggests the coexistence of and the interplay between the opposing mechanisms of FDI spillover learning opportunity and adverse competition. Drawing on the institution-based view, this study also develops contingency frameworks and arguments to explore the question of if FDI spillover effects are contingent on, or independent of, a local institutional context especially in emerging markets. We find that institutional mechanisms, such as the institutionally determined ownership restructuring and the different levels of subnational institutional development within the host emerging market, significantly shape the variation of FDI spillover effects on the productivity of local firms. This research highlights the importance of incorporating institutional effects in understanding the FDI spillover effects in emerging markets.     

A South-South perspective on emerging economy companies and institutional coevolution: An empirical study of Chinese multinationals in Africa

In this paper, we show how international tenders act as defining moments in building asymmetric coevolution-based mechanisms between Chinese multinational enterprises and local institutions in developing African countries. We used a case study methodology to explore how three Chinese multinationals – Citic, Sinopec, and Chinalco – developed non-market relations with the institutions of three African countries, namely, Algeria, Gabon and the Republic of Guinea, both during and after the submission of international tenders, to win strategic contracts and securely embed the company in question within the target host country. We found that Chinese companies not only submit tenders, but also develop multiple kinds of alliances in order to influence local institutions over the long term, transplant new business practices and standards, and expand in an unparalleled way, with host-country institutions and Chinese MNEs acting as partners in the new ecosystem. Based on our findings, we propose a model which highlights the specific mechanisms through which successful coevolution processes emerge and prosper between Chinese multinationals and developing country institutions. This study contributes to the international management literature by extending the field of institutional theory to co-evolutionism in international business.     

Country of origin and network effects on internationalization: A comparative study of SMEs from an emerging and developed economy

This study examines the internationalization of high technology small and medium enterprises (HTSMEs). It explores how they develop and use networks to penetrate their first foreign market relying on information collected via direct interviews with the CEOs or founders of 58 high technology small firms that operate internationally. It uses mixed methods to discuss the network building mechanisms identified — client–supplier relationships, existing personal contacts, contacts acquired by chance, and contacts acquired through specific strategies. The findings provide the basis for developing propositions for further comparative analyses of the internationalization of HTSMEs based in emerging and developed markets. The study contributes to the literature on networks, internationalization and international entrepreneurship.     

The International Entrepreneurial Decision of UK SMEs to Discontinue Overseas Activities: A Research Note Reporting Practices Within the Clothing Industry Eighteen Months on

Findings from a follow-up study to an investigation concerning reasons why a sample of firms discontinued export activities and perceptions towards assistance that may motivate them to recommence overseas activities in the future are discussed in this article. A longitudinal, qualitative perspective is provided that contributes to knowledge at the international marketing/entrepreneurship interface by reporting on their business activities 18 months after the initial study was undertaken. Analysis establishes that differences exist between two groups of firms that had indicated in the original study that their discontinuation of exporting was a short-term measure compared with those that viewed the decision as longer term. Recommendations for policy makers in the provision of trade assistance programmes are offered as a result of the study.     

An institution-based view of international entrepreneurship: A comparison of context-based and universal determinants in developing and economically advanced countries

The objective of this paper is to investigate the institutional characteristics of different geographic contexts that affect the internationalisation of small and medium-sized enterprises (SMEs). The study focuses on three categories of factors: (a) sociocultural, (b) political/legal, and (c) economic. Under economic factors, it examines competitive pressures in international markets, the nature of demands in international markets, domestic resources advantages, and domestic general economic characteristics. The paper identifies universal factors that influence the internationalisation of SMEs regardless of the location of the firm. These universal factors are distinguished from context-based factors, which are specific to the particular conditions of the people/location of the firm. A comparative analysis of cases from Italy and Iran allow us to find factors that are universal, others that are Iranian context-based, and one factor specific to the Italian context. Also, our analysis suggests the existence of some factors without significant influence in either country.     

Barriers to the Formalization of Economic Activity and Marketing Solutions for Developing Economies

ABSTRACT

This research investigated barriers to the formalization of economic activity that was generally untaxed and unmeasured, referred to as informal economic activity, in an emerging economy. Nepal was selected as the country for study because it presents a case of a market undergoing economic and political liberalization. The paper presents background information on the economy of Nepal, the conduct of the fieldwork in Nepal, perspectives on informal economic activity, and the necessity of harnessing this activity. This is followed by research dealing with the informal economy and perceptions of the barriers to integration based on fieldwork in Nepal. Suggestions to harness this activity are offered. The results of this study may provide insights into the formulation of public policy and social marketing initiatives for addressing informal sector development in emerging markets.     

Decision mode,information and network attachment in the internationalization of SMEs: A configurational and contingency analysis

There has been limited attention to the internationalization of SMEs as a decision, and how the use of contrasting decision modes is associated with different information use and patterns of network attachment. This paper offers a new and systematic analysis of the likely associations between decision modes, information use, and network attachment among internationalizing SMEs. The analysis is subsequently contextualized in terms of two contingencies – the knowledge domain of the SME and the international experience of its key decision-maker. By focusing on the relation between a relatively neglected subject – decision modes – and other issues that have been more center-field, the paper contributes to an analytic synthesis in the field of SME internationalization research.     

The institutional context as a source of heterogeneity in family firm internationalization strategies: A comparison between U.S. and emerging market family firms

Existing research has underexplored the role of context as a source of heterogeneity in family firms’ (FFs) internationalization strategies. Drawing upon institutional theory, we develop and test a mid-range theory positing that differences in the quality of the institutional context can moderate the strength of the relationship between individual- and board-level attributes and FF internationalization. Our comparison of U.S. FFs with FFs from Brazil and Mexico reveals that in emerging market FFs, individual-level attributes such as CEO international experience, CEO educational attainment, and CEO international education exhibit a stronger relationship with internationalization. Similarly, we find that board-level attributes such as board size and board independence are also more strongly related to internationalization in emerging market contexts. We contribute to the literature by identifying a source of variation in FF internationalization strategies based on context and by examining the relationship between a wide range of FF attributes and internationalization.     

Labour demand in the EU and returns to scale: A production function approach

The paper tests the hypothesis that small member states of the European Union (EU) experience economies of scale constraints. This study adopts a production function approach, utilising data from the 27 differently sized EU member countries. The results confirm the hypothesis and indicate that larger EU member countries incur lower costs per unit of output produced when compared to the smaller ones. This finding has important implications for small EU member states, including that smaller countries have to overcome their economies of scale constraint in order to attain and maintain international competitiveness. This disadvantage is particularly relevant for small states, because these states tend to be highly dependent on international trade, in which case international competitiveness is a major issue.     

From toys to tools: The co-evolution of technological and entrepreneurial developments in the drone industry

There is undoubtedly hype around drones and their applications for private and professional users. Based on a brief overview of the development of the drone industry in recent years, this article examines the co-evolution of drone technology and the entrepreneurial activity linked to it. Our results highlight the industry emergence described as concept validation, including product as well as market growth with different phases of technological meaning change. We argue that further steps are needed to develop drones from nice toys to professional tools—from photography and filming applications to inspection services and large cargo logistics. For innovation managers and entrepreneurs, we describe what triggers the emergence of a technology and attracts the needed actors to unleash its transformative potential. Our research is based on industry reports, news, and market studies as well as interviews with four industry actors.     

Entrepreneurial characteristics in Switzerland and the UK: A comparative study of techno-entrepreneurs

The entrepreneur is the central actor in generating entrepreneurial activity. Thus, it is important to understand the motivational characteristics and variables associated with entrepreneurial behavior spurring people to become entrepreneurs. For this study, a comparative analysis of high-tech entrepreneurs in Switzerland and the UK was undertaken to determine the extent to which they differ in terms of entrepreneurial characteristics. A total of 253 useful questionnaires from entrepreneurs in both countries enabled us to distinguish differences between these two groups. Findings reveal that some entrepreneurial characteristics such as autonomy, propensity for risk, and locus of control are higher among UK techno-entrepreneurs while other characteristics such as achievement need, tolerance for ambiguity, innovativeness, and confidence are higher among Swiss techno-entrepreneurs.     

Language influence in responses to questionnaires by bilingual respondents: A test of the Whorfian hypothesis

This paper examines how sub-cultural respondents differ in their perceptions and answers to questionnaire items tapping their acculturation and ethnic identity. A related objective is to examine how bilingual respondents exposed to an instrument in the source language perceive it compared to subjects exposed to the instrument in their native language. Prior studies find that respondents can answer differently according to the language of the questionnaire. The framework is based on the Whorfian hypothesis and the Revised Hierarchical Model. About 500 questionnaires are collected from Greek-Canadians residing in Eastern Canada. Findings indicate the presence of several non-invariant factor loadings and covariances, indicating that caution should be exercised when carrying out ethnic identity studies with respondents who are given the choice of the language of the questionnaire. Research on how differences between languages affect consumer information processing and cognitions can shed light on a new form of response style in cross-cultural research.     

Exploring the relationships between innovation and internationalization of small and medium‐sized enterprises: A nonrecursive structural equation model

This article seeks to provide more insights on the two‐way link between internationalization and innovation by considering total, direct, and reciprocal effects using a nonrecursive structural model. Innovation is defined through product and process development, while internationalization is defined through inward and outward internationalization in both closer and farther markets. The results suggest that these two major sources of growth are linked by different sets of relations, from the investment in product and process innovation to outward internationalization in a closer market, or from inward and outward internationalization in farther markets to the investment in product innovation. Copyright © 2013 ASAC. Published by John Wiley & Sons, Ltd.     

Understanding the moderating effect of motivational values on young consumers' responses to luxury brands: A cross-cultural study of South Korea and the USA

By applying motivational values of luxury consumption, this study examined the impact of cultural differences on young consumers' attitudes and purchase intentions toward luxury brands. With the use of survey data (N = 331 for South Koreans and N = 409 for Americans), the study provided support for the hypothesized moderating effect of three perceived values: conspicuous, social, and quality values. The perceived social value was found to influence attitude change favorably among young Korean consumers. The young American consumers tended to increase their attitudes and purchase intentions toward luxury brands if they perceived superior product quality. However, they were more likely to lower their purchase intention as they recognized conspicuous value of consuming luxury brands. On the other hand, the moderating effect of uniqueness and hedonic value was not found. Theoretical and managerial implications were discussed.     

National culture, networks and ethnic entrepreneurship: A comparison of the Indian and Chinese immigrants in the US

This paper uses a combination of national cultural frameworks and social capital theory to explain the formation and management of entrepreneurial ventures among immigrant communities. The varying rates of venture formation and performance among different ethnic groups points to the role that the different dimensions of culture play in how immigrants use their social networks to start such firms. We use the specific example of the Indian and Chinese communities in the US to demonstrate this effect and explain how businesses created by members of these communities could have potentially different ways of starting and operating that can be directly traced to the differences in cultural orientation of their owners. What emerges can be summarized as: (a) different immigrant communities have different ways of accumulating and using social capital in starting and managing their ethnic ventures; (b) these dissimilarities manifest themselves in variations in the motives for forming these ventures, human resource practices and termination rates; and (c) that these variations can partly be explained by the differences in their respective national cultures.     

充分发挥财务管理在高校转型发展中的积极作用——以Y学院为例

在高校转型发展时期,高校财务工作也应随之及时转型:从核算型转为管理型财务;提高财务工作的主动性;逐步建立创新型财务;加强财务工作实践和理论有机结合;提高财会队伍综合素质。财务管理工作应为高校的转型发展重点做好资金筹措、科学化精细化预算、支持学校参与地方经济、努力提高教育资金使用效益等方面的工作,建立优良的财务运行机制,更好地服务高校事业的健康快速发展。     

Increasing customer loyalty and WOM in an age of terror: Cross-cultural development and validation of the customers’ reactions to terror scale (CRTS)

The threat of terror places customers in a vulnerable situation, giving rise to a variety of protective behaviors. The ability to employ these behaviors dictates customers' preferences for specific services. To enable a better understanding of this dynamic and its implications for positive customer outcomes, the current study developed a customers’ reactions to terror scale (CRTS) in a four-stage process. Data were collected from customers in France and Israel across two service contexts, hospitality and public transportation. Nomological examinations showed that services that enable customers to employ protective behaviors under the threat of terror can facilitate increased loyalty and word of mouth (WOM).     

自由贸易港区的立法模式:台湾地区的实践及其对海南自贸港的借鉴意义

为规划自由贸易港区,台湾地区构建了以《自由贸易港区设置管理条例》为核心的分立式立法模式,具体内容表现为以行政法规范为主、经济法规范为辅的特征。在行政法规范方面,首先规制自由贸易港区的设置要件;其次是对企业的监管采取许可方式规制企业准入,区内允许自主经营,但固定资产与经营业务的变动仍需核准;至于货物的监管,除非关涉公共安全,否则货物入区不受限制;货物在区内的活动仍须备案,出区时则根据货物去向实行不同的监管模式。在经济法规范方面则规制税收与金融两个领域。基于台湾地区自由贸易港区与海南自由贸易港在本质上并无差异,上述立法模式值得借鉴。事实上,已列入全国人大立法计划的《海南自由贸易港法》就采用了分立式立法模式。在分立式立法模式下,亦可移植以自由贸易港的设置、对企业的监管及对货物的监管等行政管理为主,以税收与金融等经济管控为辅的相关规制。