Bank regulation and the process of internationalisation: A study of Japanese bank entry into London

The paper provides a theoretical insight into bank regulation and the process of internationalisation by examining the concepts of regulatory push and market pull within the context of Japanese bank entry into London during the 1980s. Rugman and Verbeke's [(1998). Corporate strategy and international environmental policy. Journal of International Business Studies, 29(4), 819–833] Consistency of Home and Host Government Goals model is utilised to structure the discussion, which centres on a situation where there is a conflict of goals between multinational enterprises (MNEs) and the home government but goal alignment between MNEs and the host government. As such the paper examines a relatively under-researched aspect of internationalisation and concludes that in certain circumstances internationalisation can occur despite great ‘psychic distance’. The paper also argues that although bank regulation can lead to a conflict situation it can also be conducive to the development of a strong home base and the development of firm specific advantages.     

The role of business support organisations in the process of retailer internationalisation

In the field of international retail research, there has been little attention paid to the role of business support organisations in the process of internationalisation. Given the barriers to foreign market expansion, the focus of this study is to investigate the importance of facilitating factors, in the form of business support organisations, which can assist retailers in the process of international expansion. A qualitative research methodology was employed and the findings provide evidence relating to three important areas: firstly, the types of business support programmes available to retailers seeking to internationalise from the UK, secondly, the barriers encountered by retail companies expanding overseas, and thirdly, how government and private organisations can assist in helping retailers overcome these hurdles.     

Rapid internationalisation enabled by the Internet: The case of a knowledge intensive company

In this paper we will show how knowledge intensive firms can quicken their internationalisation by using the Internet as a sales channel. When properly applied the Internet can provide a way to decrease the effects of liability of foreignness and resource scarcity, and herewith contribute to an increased speed of internationalisation. The focus of the empirical research is on a Finnish knowledge intensive company and the development of its international operations and sales channels. The study applies the longitudinal case study method when examining in-depth the development of Futuremark Corporation for a period of five years.     

The professional service firm (PSF) in a globalised economy: A study of the efficiency of securities firms in an emerging market

This study explores the efficiency of securities firms in Turkey and offers conceptual and managerial insights utilizing data envelopment analysis. Through a sample of local and foreign owned securities firms in Turkey, we examine the impact of liabilities of foreignness (LOF) and localness (LOL) upon knowledge intensive firm efficiency in an emerging market economy. We have extended this approach through our consideration of liability associated with market globalness (LOMG). Our findings indicate the importance of size for firm efficiency with bank affiliation and foreign ownership also having positive effects on efficiency. Our study makes a contribution conceptually, methodologically and empirically to a growing literature on emerging economies. We also make a valuable addition to the limited empirical work conducted on the securities industry to date. Finally, through our contextualization of Turkish securities firms as professional services firms (PSFs), our research extends the narrow focus on law and accounting which currently dominates the burgeoning research strand on PSFs.     

The death of firms: exploring the effects of environment and birth cohort on firm survival in Sweden

This paper investigates the death of firms and seizes a long-term perspective. It investigates the life spans of nearly 2,200 firms in seven birth cohorts of Swedish joint-stock companies, founded during seven separate years between 1899 and 1950. Research has traditionally emphasized individual- and micro-oriented factors in explaining post-entry performance, or has often focused on the influence of firm-specific structural factors (firm age and size). A less attended field recognizes environmental forces. This paper focuses on the interaction between the micro and macro levels, and combines structural and environmental factors. Employing a cohort approach, it relates firm survival to firm age and size, as well as to the effect of cohort affiliation and environmental change over time (period effects). During macroeconomic expansion, the risk of death decreases. Cohort effects are also evident. Firms founded during times of economic crisis exhibit lower survival rates. Consequently, cohort affiliation and environmental forces, i.e. period effects, can explain differences in death rates in different firm populations.

The moderating role of local embeddedness on the performance of foreign and domestic firms in emerging markets

This paper examines the impact of the firm’s degree of local embeddedness on its performance in emerging markets using the World Bank’s Enterprise Survey Manufacturing Sector Module data on 15,715 firms covering 78 emerging markets. We use the degree of localization of sourcing and sales to measure the degree of embeddedness in the host country market. We argue that since embeddedness brings the firm into closer interaction with local firms and institutions, the costs of embeddedness should be lower for local firms than for MNE subsidiaries, since local firms can be assumed to be better able to decipher local institutions. We find that both dimensions are subject to a reversed U-shaped function. That is, by extending the degree of local sales and local sourcing up to a certain percentage, a firm can realize positive performance growth by becoming more embedded into the emerging market, but beyond this point, the performance impact is negative. We also find that foreign firms involved in local sales seem to lose part of their ability to exploit their ownership advantages as compared to foreign firms that export their production.     

A comparative analysis of the entrepreneurial orientation/growth relationship in service firms and manufacturing firms

This article builds on the recently increasingly mentioned notion that entrepreneurship in the service sector is a worthwhile, but clearly underresearched topic. Using a sample of 1,612 small- and medium-size enterprises from the four German-speaking countries Germany, Austria, Switzerland, and Liechtenstein, and using structural equation modeling, this article finds that service firms have a significantly higher entrepreneurial orientation (EO) than manufacturing firms – both on the overall level as well as for each of the three sub-categories proactiveness, innovativeness, and risk-taking. With regards to the positive relationship between a firm's EO and its growth aspirations, nevertheless, no significant differences could be identified. Accordingly, this study shows that EO is a strategic orientation of highest value for service firms as well, under the premise of growth-orientation.     

Intellectual capital and innovativeness in software development firms: the moderating role of firm size

Abstract

We examine the effect of intellectual capital on firms’ innovativeness and the moderating role of firm size in software development firms in Kenya. Using moderated regression analysis, we found support for the proposition that human and social capital enhance firms’ innovativeness. We did not, however, find any significant effect of organizational capital on firms’ innovativeness. The results from the moderated regression suggest that the smaller the firm, the stronger the influence of intellectual capital on firms’ innovativeness. The results therefore indicate that human and social capital are critical in the innovation process and so firms that neglect these capitals are unlikely to realize the potential to innovate particularly in software development firms.     

The determinants of foreign direct investment in China: The case of Taiwanese firms in the IT industry

This study illustrates the factors that affect a firm's intention to engage in foreign direct investment (FDI) in China, using Taiwanese firms in the Information Technology (IT) sector as an example. By building upon the literature, we investigate a firm's decision to engage in FDI by taking industry and firm factors into consideration. This study applies an event history technique to perform an empirical analysis, taking into account the conditional probability of the element of time. These factors are analyzed in a dynamic context using a sample of 667 Taiwanese firms in 10 industries between 1996 and 2005. We find that network linkages, the expansion of markets, and China's incentive policies positively affect the intention to engage in FDI. A firm with a higher degree of export orientation and larger firm size also has a strong effect on motivating FDI.     

The role of entrepreneurial orientation in service firms: empirical evidence from Austria

Entrepreneurial behaviour is becoming increasingly important for all firms, regardless of size, age, or industry sector. It is increasingly seen as one of the most important drivers for economic growth and corporate success. Nevertheless, no empirical research has so far concentrated on the role of entrepreneurial behaviour in service firms, although the service sector has become the most important (and the only growing) industry sector. This article therefore investigates the relationship between entrepreneurial orientation (EO) and corporate performance on the basis of an empirical survey of 310 service firms in Austria. Here, a significant positive relationship between EO and corporate performance could be identified, with a clear emphasis on innovative behaviour as the most important sub-dimension.     

The role of entrepreneurial capital in building service reputation

This paper uses theories of capital to discuss the impact of non-financial capital on small service firm reputation and performance. As the success of service firms is predicated on the ability to develop relationships and build reputation with key stakeholders, theories of capital provide a relevant conceptual framework for exploring the use of non-financial capital in building such relationships. Drawing on findings from a qualitative study, this paper discusses the economic, human, social, and symbolic capital of a matched-pairs sample of male and female entrepreneurs in the business services sector. The results highlight a relationship between symbolic capital and service reputation. Specifically, the interplay between economic, human, and social capital generates the symbolic capital relevant for service reputation and firm performance.     

The role of social conventions in the diffusion of open source software: Implications for service industries

In information and service products such as open source software, increasing returns occur on the production or supply side, as well as network externalities on the demand side. For open source software, the social community element needs to be integrated with the framework of increasing returns. This paper attempts to show that social conventions, and social herding behaviour are fundamental to the growth of the open source software. Such social conventions legitimise value and provide identification in the global online community and have important implications for service industries in general.     

The role of the internet in the internationalisation of small and medium sized companies

It is now recognised that many firms are “born global’ and initiate international business from inception or shortly thereafter. They have been influenced by both globalisation and the impact of new ICT technologies. This paper examines the role of the Internet in the internationalisation of a cross national sample of small entrepreneurial firms from Canada, Ireland, Australia and New Zealand. The findings are presented, including the role of the Internet in marketing, distribution, business processes and market intelligence and competitor analysis. The role of the Internet as a knowledge building tool is discussed, and areas for future research are presented.     

The role of incubator organizations in the founding of growth-oriented firms

The role of incubator organizations, those organizations where entrepreneur work before starting their own firms, is examined. Using a sample of 161 new, growth-oriented firms, the relationships of the new companies to their incubator organizations are considered, as well as the characteristics of the incubator organizations. 5The findings have implications for prospective entrepreneurs. Entrepreneurs in most industry categories do not change geographic location and, in most technical industries, usually start businesses related to what they did before. An individual's decision to join a particular organization results in a particular geographic location and in knowledge about a particular industry. The would-be founder located in an unpromising geographic area and getting experience in an industry offering few opportunities for company start-ups is unlikely to be able to start a growth-oriented technical firm, regardless of personal motivation. However, the prospective founder of a nontechnical firm appears to be less tied to the experience gained in an incubator organization.There are also implications for regional economic development. Because technically oriented start-ups are tied closely to the business of their incubator organizations and because most entrepreneurs don't move when starting, the possibilities for high-technology start-ups may be very limited in many geographic regions. There have been no studies, to date, on why some founders move when starting. Programs to attract entrepreneurs at the time of start-up may have promise, but, at least to date, there is not much evidence of entrepreneurs being mobile at this stage of their careers.Local and regional programs to attract branch facilities of larger corportions have a long history. The emphasis is usually upon attracting facilities that will offer the maximum number of blue-collar jobs. In contrast to this traditional approach, it might be beneficial to shift the emphasis to those facilities most likely to function as incubators. The greatest benefits might come from laboratories or divisions that would “seed” a region with people learning about promising technologies or industries.The role of universities in this process appears to be less direct than is often assumed. Based upon our sample, it appears that software and biotechnology/medical firms often have spun-off from universities or hospitals. However, in other industry categories, it is business firms that have primarily served as incubators. There are currently many experiments underway to create university-affiliated innovation centers or incubator centers intended to help aspiring entrepreneurs. Whether these will enable universities to function more effectively as incubators, spinning off students and faculty who start growth-oriented firms, remains to be seen.     

The role of product history in consumer response to online second-hand clothing retail service based on circular fashion

The circular fashion system (CFS) posits that clothes not only need to be designed and produced sustainably but also need to circulate among consumers for as long as possible to minimize waste. Fashion industry experts believe that circular fashion will be the dominating future trend of the industry, and many brands and start-ups have launched platforms following the CFS where consumers can exchange or donate their used clothes. However, circular fashion still needs to overcome the negative images associated with second-hand clothes, such as contamination. What can decrease consumers' concerns with used clothes as well as promote circular fashion effectively among consumers? Based on the narrative competence theory, this study examines the effects of providing the product history of clothes on enhancing consumers' trust, perceived benefits, attitude, and usage intentions toward circular fashion service. An online experiment was conducted with 238 U.S. consumers. Results revealed that providing product history enhances consumers' trust toward the service and the perceived hedonic, social, and economic benefits of the service. Greater trust and hedonic benefits of the service enhance consumers’ attitude toward the service, which consequently increase their intentions to use the service. Implications and suggestions for future research are discussed in this paper.     

Strategic ambidexterity and innovation in Chinese multinational vs. indigenous firms: The role of managerial capability

In this study, we challenge the conventional understanding of ambidexterity as an unquestionable contribution to better performance. We combine the concept of ambidexterity and the notion of managerial capability to explore different effects of ambidexterity on innovation performance in the context of emerging markets. We investigate this ambidexterity-innovation effect, and how this effect is moderated by managerial capability, on a sample of 74 Chinese multinational enterprises (MNEs) vs. 60 indigenous firms that are both in high technology industries. We find that, surprisingly, ambidexterity has a negative effect on the innovation performance of indigenous firms, although this effect is less so in the case of Chinese MNEs. More importantly, strong managerial capability increases the positive effect of ambidexterity on the innovation performance of Chinese MNEs, but not so for indigenous firms. We discuss the implications of these findings on research on ambidexterity and product innovation.     

The link between product diversification and performance among Spanish manufacturing firms: Analyzing the role of firm size

This study sheds additional light on the product diversification‐performance relationship for firms in a country having recently attained an advanced economy status in our period of analysis. We assume there will be an inverted U‐shaped relationship and use a sample of small, medium, and large Spanish manufacturing firms between 1994 and 2008. Our findings provide solid support for this assumption, and are identical when the sample consists of small, medium, and large firms and of large firms alone. Our results also suggest that the larger the firm, the higher the optimal level of diversification. Panel data models are used to control for unobservable heterogeneity and potential endogeneity problems. Copyright © 2015 ASAC. Published by John Wiley & Sons, Ltd.     

International entrepreneurial SMEs in the muslim world: The role of religion in the GCC countries

Recent studies examining the internationalisation of SMEs in emerging economies have observed that religion affects international market entry, which suggests that specific cultural aspects, such as religion, have not hitherto received enough attention. Hence, this study examines a theme that has seemingly escaped the research agenda: how does religion affect SMEs’ internationalisation? The study draws empirical evidence from 10 manufacturing SMEs located in the Gulf Cooperation Council (GCC) region. Through an embedded approach to case study research, the study queries the role of religion in the development of intra-Muslim internationalisation and contributes to the scant literature that examines the impact of Islamic values on international business activities. The findings show three dimensions of Islamic entrepreneurship, viz. regional rather than international networking orientation, risk aversion and proactiveness.     

The dynamic role of small- and medium-sized multinationals in global production networks: Norwegian maritime firms in the Greater Shanghai Region in China

This article examines the role of small- and medium-sized multinational enterprises (MNEs) in the dynamic development of global production networks (GPNs) in the maritime industry. It studies the dynamism between subsidiaries of Norwegian maritime firms and regional actors and institutions in the Greater Shanghai Region of China from the perspectives of the subsidiaries. It argues that strategic coupling, recoupling and decoupling are partly the results of regional selection mechanisms. However, in the cases where the subsidiaries are embedded within the host region, the strategies and behaviour of MNEs are of decisive importance for the dynamic development of GPNs.