Governing business process offshoring: Properties,processes, and preferred modes

This article examines an important yet understudied issue—the governance mode for business process offshoring (BPO). By applying transaction cost economics and organizational control perspective in the global BPO context, we suggest that BPO's governance mode (foreign captive, joint venture, and independent vendor) is determined by task features, such as knowledge specialization, information security, and process codifiability, and by needed process integration, horizontally between departments and units within the provider and vertically between the provider and its global client and its local subcontractor. Findings from our analysis of 308 global BPO units in India and China confirm our hypotheses.     

Ethics and taxation: A cross-national comparison of UK and Turkish firms

This paper investigates responses to tax related ethical issues facing firms, an area where there has been little prior research. As perceptions may be determined by response to different legal systems and regulations, we examine responses to a series of ethical questions posed to two groups of tax practitioners, one group employed in UK firms and another group employed in Turkish firms. This facilitates both an examination of responses from within each country and a cross-national comparison of ethics and taxation. Although there is a similarity of perception of the importance of a number of taxation related ethical issues between UK practitioners and Turkish practitioners, there are also several statistically significant differences between the two groups. The paper makes a significant contribution to the literature through obtaining and analysing data from tax professionals in the UK and Turkey to provide a cross-national study of corporate tax practice and ethics. The paper is novel in that no prior studies have reported cross-national studies that have examined tax issues related to firms.     

Managing multi-business firms: A comparison between Korean chaebols and diversified U.S. firms

We identify and examine the efficacy of organizational mechanisms through which diversified firms are effectively managed without loss of control. Building on the resource based view of business groups, we argue that business groups in emerging markets use these mechanisms more often and derive more benefits from the use of these mechanisms than the diversified U.S. firms. Empirical results based on samples from Korea and the U.S. show that structural mechanisms such as strategic control and contingency arrangements, do not affect divisional performance, whereas socio-cultural mechanisms, such as shared values and corporate-level training, have significant effect on divisional performance. We also find that Korean chaebols have leveraged socio-cultural mechanisms better than large U.S. firms, and thus, have an advantage in continuing to diversify.     

International strategies of mid-sized firms: A comparison of Indiana and Guangdong Province

A China strategy is becoming more important for a growing number of mid-sized companies as they observe China's increasingly greater impact on the U.S. economy. Our study surveyed Indiana and Guangdong firms to assess their interest in future international engagement in the other's country. Our results confirm current engagement by mid-sized firms from both countries in some activities with the other country, but there is a strong interest in doing more. Hence, there are opportunities for many Indiana organizations to play a role in assisting Indiana firms in developing international expertise, business development, and knowledge of China. In the study, 97 firms from the Guangdong Province and 105 Indiana firms identified their current international activities as well their future intentions relative to business development in the other's country.     

Shopping orientations of US males: A generational cohort comparison

Male shoppers are recognized as an important and distinctive market segment. While initial steps to categorize and classify male shoppers have been taken, the majority of existing empirical research considers male shoppers as a single, homogeneous market segment. Recognizing that our understanding of male shoppers can be improved by identifying smaller, more homogeneous sub-segments, this exploratory study uses Generational Cohort Theory (GCT) as a framework to examine the shopping orientations of US men across four different generational cohorts: the Silent generation, the Baby Boomers, the 13th Generation, and the Millennials. The findings of this study support the use of GCT as a market segmentation tool for male shoppers and provide insight to help retailers understand how men in the four cohort groups approach shopping. Specifically, the findings suggest that male shoppers in the Millennial generation exhibit significantly higher levels of shopping enjoyment, recreational shopping tendency and market mavenism than males in the other generational cohorts.     

Intellectual property marketplaces and how they work: Evidence from German pharmaceutical firms

This article examines a sample of German pharmaceutical firms to highlight the strategic reasons why firms participate in various intellectual property (IP) marketplaces, both proprietary (patents and copyrights) and non-proprietary (open source and non-patented technology). The obstacles that prevent these marketplaces from functioning efficiently are also investigated. The analysis suggests that IP policy must embrace all IP forms and must recognise that IP marketplaces do not work “automatically” but suffer many institutional failures.     

A transaction cost perspective on foreign market entry strategies of US and Japanese firms

A large scale survey of top US and Japanese executives is conducted in order to assess the power of transaction cost economics (TCE) in explaining a firm's choice of entry mode (e.g., joint venture vs. full ownership) when it enters a foreign market. Results suggest that several TCE tenets are useful in explaining US firms' choice of entry mode. However, TCE predictions were not supported by the entry mode choices of Japanese firms. Implications of these findings for researchers and managers are discussed. © 1998 John Wiley & Sons, Inc.     

The strategic evolution of large US law firms

In recent years, large US law firms have been undergoing significant changes. Most have switched from a professional model (P2 form) to a corporate business model, employing competitive strategies and a profit orientation. As the market for corporate legal services became more competitive, many large US law firms began to diversify the services they offer and expand their operations into new geographic regions of the country and into international markets. They even engaged in acquisitions and learned to manage and leverage their critical resources, human capital and relational capital. As a result, most of these law firms have added more professional management. All in all, the services law firms offer and the rivals with which they must contend have changed substantially over the last 15 years.     

A longitudinal examination of partnership governance in offshoring: A moving target

The complexity of the global marketplace is driving the growth of new corporate strategies that are centered on creating “synergistic alliances in procurement, distribution, marketing, and technology”. This study employs a grounded qualitative approach to investigate a growing belief that perspectives of relational governance and the resource-based view of the firm should be integrated to help explain the evolution of offshoring relationships in international marketing and supply chain settings. Specifically we ask—how well do general theories of organization correspond to governance in offshoring relationships? The premise of our longitudinal study found that offshoring relationships begin with calculative trust and opportunism, which later gives way to resource-based competency building and non-economic trust. Over time the offshoring relationships focus on building dynamic capabilities to increase process value through a trust-based relationship. In this way, offshoring relationships are a moving target in terms of governance of relationships from transactional to resource complementarity to a phase where trust and long-term orientation governs the offshored process or processes.     

Coordination of globally distributed teams: A co-evolution perspective on offshoring

This article examines the coordination of an organization's onshore and offshore units from a co-evolution perspective. Literature based insights are combined with a case study of a leading IT-services provider to build new theory and a related propositional inventory. Counter-intuitively, our analysis suggests that managerial intent to promote onshore–offshore task coordination, by founding it on a common organization-wide identity and work context, can spark political conflict and result in the sub-optimal use of knowledge, skills and tools on individual projects. The analysis also reveals that effective solutions to the coordination problem are likely to emanate bottom-up, from practices that have been distilled from a range of routines and experiences as project teams learn and progressively accumulate knowledge of what works and what does not. We highlight the crucial role in this process of the senior management, proper timing of an offshore team's involvement in a project, horizontal communication and a joint onshore–offshore evaluation and reward system.     

Exporting Christianity: Governance and doctrine in the globalization of US denominations

In this paper we build a model of market competition among religious denominations, using a framework that involves incomplete contracts and the production of club goods. We treat denominations akin to multinational enterprises, which decide which countries to enter based on local market conditions and their own “productivity.” The model guides us in estimating how a denomination's religious doctrine and governance structure affect its ability to attract adherents. Using data on the foreign operations of US Protestant denominations in 2005 from the World Christian Database, we find that (1) denominations with stricter religious doctrine attract more adherents in countries in which the risk of natural disaster or disease outbreak is greater and in which government provision of health services is weaker, and (2) denominations with a decentralized governance structure attract more adherents in countries in which the pastor cost of connecting with congregants is lower. These findings illuminate factors shaping the composition of religion within countries, helping account for the rise of new Protestant groups. They also provide empirical evidence for the recent theoretical developments in organization and trade.     

High-growth firms and innovation: an empirical analysis for Spanish firms

This paper analyses the effect of R&D investment on firm growth. We use an extensive sample of Spanish manufacturing and service firms. The database comprises diverse waves of Spanish Community Innovation Survey and covers the period 2004–2008. First, a probit model corrected for sample selection analyses the role of innovation on the probability of being a high-growth firm (HGF). Second, a quantile regression technique is applied to explore the determinants of firm growth. Our database shows that a small number of firms experience fast growth rates in terms of sales or employees. Our results reveal that R&D investments positively affect the probability of becoming a HGF. However, differences appear between manufacturing and service firms. Finally, when we study the impact of R&D investment on firm growth, quantile estimations show that internal R&D presents a significant positive impact for the upper quantiles, while external R&D shows a significant positive impact up to the median.     

Talent management motives and practices in an emerging market: A comparison between MNEs and local firms

This paper compares the differences in talent management motivations and practices between MNEs and local firms in the emerging market of Turkey. It uses institutional theory and the resource based view of the firm to explain these differences. Examining data from 201 firms the findings show significant differences between the talent management motives of MNEs and local firms, with MNEs having more tactical motivations for their talent management systems. The study also shows significant differences in the talent management practices between MNEs and local firms, with MNEs implementing more robust systems of talent management overall. The findings indicate that the motives for TM and the practices that are pursued by organizations are society-bound. The study of TM motives and practices has to be framed within the context of the institution as this shapes the way in which actors perceive and respond to environmental and organizational stimuli and the extent to which they seek to protect the rules that shape and structure their environments.     

Volatility due to offshoring: Theory and evidence

Existing models of offshoring are not equipped to explain how global production sharing affects the volatility of economic activity. This paper develops a trade model that can account for why offshoring industries in low wage countries such as Mexico experience fluctuations in employment that are twice as large as in high wage countries such as the United States. We argue that a key to explaining this outcome is that the extensive margin of offshoring responds endogenously to shocks in demand and transmits those shocks across borders in an amplified manner. Empirical evidence supports the claim that the extensive margin of offshoring is an active margin of adjustment, and quantitative simulation experiments show that the degree of movement of this margin in the data is sufficient to explain relative employment volatility in Mexico and the U.S.     

Multinational investment and host country development: Location efficiencies for services offshoring

Services offshoring has become an important source of investment and development in many emerging economies. While much attention has been paid to companies’ use of services offshoring to lower costs, not all of these offshoring activities have yielded the anticipated results. Thus, the choice of where to locate offshore facilities is an important yet complex one that has substantial implications for both the investing firm and host country. In this paper, we adopt the perspectives of service firms located in the U.S. and empirically examine the attractiveness of host countries for offshoring of services. Using data envelopment analysis (DEA), we examine which countries use their resources or inputs most efficiently in order to produce outputs that make them attractive for services offshoring. We find that China, India, Ireland, the Netherlands, Pakistan, Slovakia, Spain, and the U.K. are particularly attractive locations for services offshoring. All of these countries have at least one core efficiency-creating competency among the key inputs of wages, education, and infrastructure. We discuss implications for firms and government policy makers and offer recommendations for future research.     

Innovation strategies and complementarity between innovation activities: the case of commercial archaeological firms

Service Business - As a key part of their professionalization process, creative industries (CIs) including private or contract archaeological firms (AFs) increasingly rely on bundles of...     

Ethical leadership across cultures: a comparative analysis of German and US perspectives

This paper examines beliefs about four aspects of ethical leadership –Character/Integrity, Altruism, Collective Motivation and Encouragement– in Germany and the United States using data from Project GLOBE (Global Leadership and Organizational Behavior Effectiveness) and a supplemental analysis. Within the context of a push toward convergence driven by the demands of globalization and the pull toward divergence underpinned by different cultural values and philosophies in the two countries, we focus on two questions: Do middle managers from the United States and Germany differ in their beliefs about ethical leadership? And, do individuals from these two countries attribute different characteristics to ethical leaders? Results provide evidence that while German and US middle managers, on average, differed in the degree of endorsement for each aspect, they each endorsed Character/Integrity, Collective Motivation and Encouragement as important for effective leadership and had a more neutral view of the importance of Altruism. The findings are reviewed within the social‐cultural context of each country.     

A comparison of Japanese and U.S. firms completing initial public offerings

We set out to examine firms breaking into the top tier of for-profit companies in the U.S. and Japan to find differences across the two groups. To accomplish this, we conducted a questionnaire survey of companies that had recently undergone an initial public offering (IPO) in each country and compared them on characteristics frequently associated with new firms.As we expected, even when the different sizes of the two economies were taken into account, there were considerably fewer listings in Japan than in the U.S. One reason for this is that the listing requirements for young Japanese firms, although not stricter, are much more strictly enforced. Hence, fewer Japanese firms are able to list.Our results show that the Japanese firms were markedly different from their U.S. counterparts on several characteristics. They tended to be older and larger, which is consistent with more stringent listing requirements in Japan. They were also much more often led by their original founders. This is a surprising result given that the Japanese firms, being older, had longer to lose their founders. When a successor to the founder was president, it was much more often a relative of the founder than in the U.S. The Japanese founders rated themselves higher on relatively emotional characteristics, such as aggressiveness, paternalism, and charisma than did either the U.S. presidents or the Japanese nonfounder presidents.The Japanese firms relied solely on the president for decision-making prior to the IPO more often than the U.S. firms did. However, the Japanese firms also moved in greater numbers to group decision-making around the time of the IPO.The post-IPO investment strategies of the Japanese firms were characterized by a focus on new product development, an increase in R&D spending, and investment in the company's capital plant. In contrast, the U.S. firms reported more interest in exploiting their existing market and buying other companies, usually leaving R&D spending at its pre-IPO level.Overall, it is surprising that on many characteristics, the Japanese IPOs tended to fall more to the extreme associated with new companies than did the U.S. firms. They were dominated by founder influence, the founders were apparently highly emotional, their management style was initially autocratic, and their strategies targeted innovation and internal development as avenues to growth. This pattern is consistent with a prior hypothesis that the lack of structural support for new firms in Japan results in only the most extreme personalities pursuing and succeeding in company formation.For researchers, a significant implication of this research is that Japanese ventures may not behave according to the same rules as U.S. ventures. Research samples that fail to distinguish nationality may obscure cross-regional variations.For practitioners, the major lesson is that a Japanese venture is likely to be much different from one in the U.S. Dealing with one is probably even more unlike dealing with an established company than working with a U.S. start-up might be.     

The determinants of foreign giving: An exploratory empirical investigation of US manufacturing firms

To date, there is ample evidence on the determinants of domestic charitable contributions made by US firms. However, to the best of our knowledge, no one has investigated the determinants of foreign charitable contributions made by US firms. Using the Socrates KLD database and the US M&A data for the 2004–2010 period, we find evidence that foreign giving by US manufacturing firms is linked to certain key variables. Specifically, we find evidence that variables found significant in the domestic giving literature (pre entry return on assets, size, debt to asset ratio, market to book ratio, and research and development expense as a function of sales) are also found significant for foreign giving. However, and notably, cultural distance and foreign sales percentage have been found to be important discriminators between manufacturing firms who give abroad and those who do not. It appears that high international business experience (proxied by the foreign sales ratio) and operations in culturally distant countries motivate foreign giving. Finally, subsample analysis involving developed and developing countries suggests that cultural distance matters for developing countries, but does not for the developed country subsample. Firm level profitability matters for developed countries, but not for developing countries. Future research may be expanded to include the dollar amounts of giving and a bigger sample size. Differences in foreign giving patterns between manufacturing and non-manufacturing firms, and by firms in countries other than the US, may also be explored.