International intensity,diversity, and distance: Unpacking the internationalization–performance relationship

Prior research has considered various conceptualizations of internationalization and offered diverse perspectives on its performance implications that, in turn, have generated mixed empirical findings. We advance research on the performance implications of internationalization by uncovering the multifaceted nature of internationalization and developing a generalizable theoretical framework that unbundles internationalization into three main facets: international intensity, international diversity, and international distance. We draw from multiple disciplines to explain the causal mechanisms that underlie the distinctive performance implications of each facet and test our predictions using panel data on Japanese firms. Our findings demonstrate that international intensity and international distance produce sigmoid effects on firm performance, though for different theoretical reasons. In turn, international diversity generates a U-shaped performance effect. Our multidisciplinary perspective contributes to international business research by discerning the distinct facets of internationalization and analyzing the mechanisms that disentangle the complex nature of the internationalization–performance relationship.     

Gender’s moderating role in the relationship between organisational form and performance in the Spanish supermarket industry

This research seeks to discover how the organisational form (franchising vs. vertical integration) of 305 supermarkets belonging to a Spanish franchise chain influences unit-level performance measured through three key performance indicators commonly used in the retail literature: sales per square metre, sales per employee, and service quality scores. Additionally, we assess the moderating role of the manager's gender in each individual supermarket. We have analysed the research questions using multivariate analyses, with a panel dataset that includes quarterly establishment-level data covering the period from January 2017 to December 2019. We have found that franchised supermarkets record higher sales both per square metre and per employee than vertically integrated ones. This positive effect of franchising is lower in establishments run by females than in those run by males. The findings also reveal that franchised supermarkets record lower service quality scores than their company-owned counterparts, and this negative effect is again lower in establishments managed by females than in those managed by males.     

Rethinking guanxi and performance: Understanding the dark side of Sino–U.S. business relationships

Previous studies on guanxi (關係) have focused on how guanxi contributes positively to business relationships, without addressing the pivotal role that guanxi plays in managing the dark-side of business relationships. To address this knowledge gap, this study specifically investigates guanxi’s influence on conflict, opportunism, and switching intention in Sino–U.S. business relationships and examines how guanxi mediate the positive effect of performance as well as the negative effect of uncertainty on such dark-side constructs. Drawing on data from over 270 Chinese firms, the findings reveal that guanxi is undermined by relationship uncertainty but enhanced by performance, guanxi also reduces the dark-side of Sino-US business relationships. Chinese buyers’ guanxi with U.S. suppliers significantly lessens their switching intention, opportunistic behavior, and the perceived levels of conflict in Sino-US relationships. The findings explain how guanxi is employed as a tool to reduce the burden associated with the dark-side of business relationships and give relevant implications.     

The impact of individualism on buyer–supplier relationship norms,trust and market performance: An analysis of data from Brazil and the U.S.A.

This study focuses on the impact of the cultural dimension of individualism, face-to-face communication and the effect of relational norms such as supplier involvement and trust on the market performance of buyer firms. We use the culture literature and social exchange theory to test hypotheses using a sample of Brazilian and US manufacturing firms. The data were analyzed using variance-based structural equation modeling, employing nonlinear partial least squares regression. Our findings indicate that individualism is negatively related to the involvement of suppliers in the production process but is not associated with trust in suppliers. In addition face-to-face communication seems to have a positive effect on supplier involvement and trust.     

Does advertising indicate product quality? Evidence from prelaunch and postlaunch advertising in the movie industry

Literature on the informative role of advertising indicates that advertising quantity can serve as an indicator of product quality. As product life cycles grow shorter, firms in many industries spend significant amounts on advertising during the prelaunch period to create large initial demand. Thus, the role of prelaunch advertising may differ from that of postlaunch advertising, and a proper understanding of these differences is important. This study provides an empirical investigation of whether advertising is a reliable indicator of quality before and after product launches, using the data from the movie industry. Analyses of 1078 movies released during 2003–2011 show that postlaunch advertising is a reliable quality indicator and increases revenues, whereas prelaunch advertising is not a reliable quality indicator, even if it leads to higher revenues.     

ICBC to Open Subsidiary Bank in the U.S.

The Industrial and Commercial Bank of China (ICBC) has planned to open a subsidiary in the United States, as part of its going-global strategy which also involves Russia,Australia and the Middle East,Board Chairman Jiang Jianqing said on October 17.     

Pray local and act global? Christian religiosity in the U.S. and human rights

This study examines the influence of Christian religion on corporate decisions related to human rights in the United States. Specifically, it examines the empirical association between a company's human rights practices and the Christian religiosity in its local community, as well as individual CEO religiosity in the United States, both of which have not been tested in prior studies. Employing a large sample from the United States, we find a congruent association between the “human rights friendly” practices of a company and the Christian religiosity of the local community. This novel finding is robust to a diverse set of tests. In addition, we find that the association between Christian religiosity in the United States and human rights is more significant in reducing human rights concerns, than it improves human rights strengths. This study interprets these results as upholding the religious morality hypothesis, namely, that companies located in areas with higher religiosity are likely to engage in more human rights‐friendly practices, and the United States. Christians consider religion as an influencing factor that encourages managers to embrace human rights. Furthermore, this study finds that individual religious managers tend toward more human rights‐friendly practices, supporting our religious manager hypothesis.     

Adequacy versus equivalency: Financial data protection and the U.S.–EU divide

In 1995, the European Union passed Directive 95/46/EC, which set the legal framework for European Union citizens to own the rights to their personal data. However, American law bestows ownership to the holder of the data, not the individual, and officials feared the European Union initiative might disrupt data sharing among United States and European Union affiliates. Thus, they negotiated the 2000 Safe Harbor Agreement to allow companies to voluntarily submit to yearly certifications that fulfilled European Union demands, but kept U.S. businesses in control of their data; nevertheless, the Agreement does not include financial and banking services. Instead, the United States argued that the privacy protections within the Gramm-Leach-Bliley Act adequately fulfilled European Union guidelines. The European Union disagreed and financial data sharing has operated under a moratorium for the past decade. However, the 2008 financial crisis has governments and clients clamouring for more data transparency to determine risk in the financial system. These global efforts, the European Union's recent push to strengthen the Directive, and the Dodd-Frank Act have pushed data sharing to the policy forefront. This article asserts that transatlantic data sharing will ultimately have to accommodate the privacy cultures in both the United States and the European Union, but firms must be prepared to cope with demands on their data by establishing government relations offices, standardizing information systems, enhancing education for compliance officers, and improving business school curricula.     

The impacts of the U.S.–China trade war

Business Economics - The trade war has received an enormous amount of attention. Its impacts today have been limited because the U.S. and China have been a bit restrained. Lots of firms have gotten...     

Explaining the slow U.S. recovery: 2010–2017

This paper argues that the slow U.S. recovery after the 2008–2009 recession was due to sluggish government spending. The analysis uses a structural macroeconometric model. Conditional on government policy, the errors in predicting output for the 2009.4–2017.4 period are within what one would expect historically. Productivity and labor force participation are endogenous variables in the model, and so their behaviors in this period are a consequence of the slow growth rather than a cause.     

Business and State in the development of the steel industry in Spain and Italy (c.1880–1929)

In the mid-nineteenth century, the Spanish and Italian steel industries were significantly less developed than those of the more advanced countries in Europe. From the mid-1880s, heavy industry in these two countries experienced considerable growth, particularly the steel sector, due to two very different strategies. In the case of Italy, state intervention was so frequent and significant that it has even been referred to as an early state capitalism. In Spain, on the other hand, the sector’s development was based principally on the private initiative. This article seeks to shed light on the interaction between government institutions and business organisations in the implementation of the development strategies of the two countries.     

The Accounting Standards Setting Process in the U.S.: Examination of the SEC–FASB Relationship

In the U.S. there is a close relationship between the Securities and Exchange Commission (SEC), a governmental agency legally responsible for setting accounting standards, and the Financial Accounting Standards Board (FASB), a private sector body to whom the SEC has delegated this responsibility. In this paper we examine the influence of the SEC on the FASB as evidenced by all major statements issued by the FASB. Minor statements, amendments, and strictly technical pronouncements were omitted because of their limited exposure to the political process. Our analysis reveals that the SEC applied substantial pressure on the FASB in the standard setting process and has not adopted a position of benign neglect.     

Colombian consumers’ outshopping of apparel in the U.S.

Outshopping is defined as purchasing goods outside of consumers’ trading areas. Despite threatening local economies, outshopping generates opportunities for the new trading areas in which it occurs. Studies on outshopping have reported contradictory results and academics suggest further research, especially in relation to consumers’ micro-level characteristics. Moreover, few studies have focused on the U.S. as the trading area and apparel as the traded product. Based on the theory of reasoned action, this quantitative study explores how attitudes toward international outshopping and subjective norm influence purchase intention of apparel goods among international outshoppers in the U.S. by focusing on four characteristics of international outshoppers – self-control in terms of spending, the desire for unique products, age, and gender – as antecedents of attitudes toward outshopping. Colombian consumers (South America) were chosen as respondents because market reports indicate that the U.S. is their top favorite international tourist destination. Findings suggest that more positive attitudes toward outshopping apparel in the U.S. were found among female consumers with higher self-control over their expenditures. Respondents were also influenced by the opinion of others; while age and desire for unique products were found non-significant. By understanding international outshoppers, marketers can develop unique market strategies for attracting global consumers.     

Cartels and norms in the Swedish steel industry 1923–1953

This article discusses the reasons for cartel stability by using the Swedish Steel Casting Cartel as an example. Previous research points out organisational structure and the ability to deal with exit entry and cheating as crucial for stability. In this article, the development of social norms, morally legitimised within the cartel, is discussed as a possible explanation for cartel stability. The organisational structure developed was flexible enough to deal with problems of exit entry and cheating. The discussions on quotas and prices led to a common view on fair prices. The conclusion is that the organisational structure can partly explain why the Steel Casting Group was relatively stable but that there are indications that the development of common social norms related to the value of fairness was also an important explanatory factor.     

Buyer–seller relationships of the dental devices industry in Taiwan: perspective of relationship

Purpose: While research in marketing and management has addressed characteristics associated with buyer and seller, relatively little research has been reported on the marketing of relationship benefits and relationship bonding tactics, particularly involving their relationships with customers. Given a dyadic perspective, it can be surmised that gaps in buyer and seller perceptions may well dampen relationships, and will inevitably occur, since a perfect match is highly unlikely between two exchange parties. To enhance relationships, major gaps need therefore to be identified and eliminated. Therefore, the purpose of this study is developing matrices of customer relationship benefits and relationship bonding tactics separately from buyer’s and seller’s perspectives, together with the insights of interrelated propositions.

Methodology: This research subjects chosen for this study consist of those distributors of dental devices, procurement in hospitals, and dentists. Using the grounded theory, four stages of coding analysis are conducted.

Findings: The results indicated that buyers and sellers differed in their perceptions in all field interviews due to their different attitudes toward different benefits. While buyers’ perceived benefits were based on the consideration of confidence and trust in the practical use of purchased medical devices, sellers primarily considered specialized issues of provided services and technologies. Based on this, buyer and seller perspectives were distinguished.

Research Implications: As a self-enclosed system, the medical device industry is difficult to enter for new manufacturers. Therefore, from the perspective of product providers, academic support can increase their product visibility, improve their company’s image, and provide more opportunities to contact new clients. From the perspective of medical institutions, the participation of hospitals and clinics in relationship marketing activities and seminars can raise their prestige and provide more opportunities for gaining new information.

Originality/Value/Contribution: Theoretical contribution of this study is in building matrices of customer relationship benefits and relationship bonding tactics separately from buyer’s and seller’s perspectives, together with the insights of six propositions. These insights shall expose the undisclosed systems of the dental devices industry.     

A CIETAC Award ——Recognized and Enforced in U.S.A.

The Convention on the Recognition and Enforcement of Foreign Arbitral Awards entitled foreign arbitration awards to recognition and enforcement in United States courts.     

TQM and performance: Is the relationship so obvious?

This study explores the relationship between total quality management (TQM) and firm performance taking TQM as an internally consistent system of practices. The study tests the link between the two variables using the universal approach, analyzes whether the most competitive firms are those adopting TQM, and tests for an isomorphic effect on other firms. The study uses a sample of Spanish firms that have received TQM prizes at the national or regional level between 1997 and 2003 and a control sample for comparison. The findings indicate that in the absence of any evidence to confirm the universal hypothesis, TQM pioneers experience performance gains, because of the early implementation of the system; however, late adopters do not experience similar results. Firms using a TQM system are not necessarily better than their counterparts are, before putting the system into action. The study uses panel data that takes into account the unobservable heterogeneity between individuals and the dynamics of firms' financial variables.     

How does R&D internationalization in multinational firms affect their innovative performance? The moderating role of international collaboration in the energy industry

This paper examines the effects of the degree and geographic diversification of a firm’s R&D internationalization on its innovative performance. We use an unbalanced panel dataset of 401 observations from 110 multinational firms operating in the energy industry over a period of six years to support the argument that both the degree and the geographic diversification of a firm’s R&D internationalization have an inverted U-shaped relationship with a firm’s innovative performance. Our results also show that collaboration among R&D units located in different countries moderates this relationship by reducing both the positive effects and the challenges of the degree of R&D internationalization. This paper extends the emerging innovation focus in the headquarters–subsidiary literature by contributing to our understanding of the implications of the international R&D activities of firms and supports the utilization of social exchange theory in order to identify the moderating influence of the collaboration among a firm’s R&D units located in different countries.