Linking organizational culture, structure, strategy, and organizational effectiveness: Mediating role of knowledge management

Practices of knowledge management are context-specific and they can influence organizational effectiveness. This study examines the possible mediating role of knowledge management in the relationship between organizational culture, structure, strategy, and organizational effectiveness. A survey was conducted of 301 organizations. The results suggest that knowledge management fully mediates the impact of organizational culture on organizational effectiveness, and partially mediates the impact of organizational structure and strategy on organizational effectiveness. The findings carry theoretical implications for knowledge management literature as they extend the scope of research on knowledge management from examining a set of independent management practices to examining a system-wide mechanism that connects internal resources and competitive advantage.     

Expatriate personality and cultural fit: The moderating role of host country context on job satisfaction

This study draws on the cultural fit hypothesis to examine interactive effects of host country context and four (Multicultural Personality Questionnaire) expatriate personality traits – Cultural Empathy, Social Initiative, Emotional Stability, and Open Mindedness – on job satisfaction. The cultural fit hypothesis maintains that it is not only the expatriate personality traits per se, but the cultural fit between expatriate personality traits and host country cultural values, norms, and prototypical personality traits that predict expatriate adjustment in host countries (Searle & Ward, 1990). Providing partial support for the cultural fit hypothesis, data derived from 191 expatriates in Brazil and Japan shows that the importance of two personality traits varies in these countries. Specifically, expatriates with high Cultural Empathy were more satisfied with their jobs in Japan than in Brazil, whereas Social Initiative was more important for expatriates in Brazil.     

Absorptive capacity,innovation and cultural barriers: A conditional mediation model

The construct of absorptive capacity has two dimensions: potential absorptive capacity (PACAP) and realized absorptive capacity (RACAP). This study addresses these two dimensions separately, and analyzes their influence on innovation outcomes (IO) in organizations. The study also examines the mediating role of RACAP in the relationship between PACAP and IO. Furthermore, the paper contains a discussion on the moderating role of cultural barriers (CB) in decreasing the PACAP–RACAP link. Consequently, this study builds and tests a conditional process model. Data comes from a sample of 110 firms from the Spanish automotive components manufacturing sector. Results from variance-based structural equation modeling and the PROCESS tool show that RACAP fully mediates the influence of PACAP on IO, and that CB negatively conditions this indirect effect. This study provides evidence that when CB attains medium-to-high values, this indirect influence is not different from zero.     

Exploring reverse knowledge transfer and asset augmentation strategy by developed country MNEs: Case study evidence from the Indian pharmaceutical industry

Using an in-depth qualitative longitudinal case study approach, we examine strategic asset and knowledge augmentation strategies of an advanced economy multinational enterprise (MNE). Our study is unique as it is contextualized in the knowledge-intensive pharmaceutical industry within the changing institutional landscape in India. And, in contrast to previous studies, it focuses on RKT from a newly acquired subsidiary where the protocol for knowledge transfer and relationship between MNE headquarters (HQ) and subsidiary does not exist. We contribute to the evolving literature on reverse knowledge transfer (RKT) which assumes that MNEs extract knowledge from their existing subsidiaries to strengthen their competitive advantages. We also reveal that MNEs design an architecture, that is reflected in the mechanism, governance structure, and timing, for efficient transfer and effective absorption of the knowledge and assets acquired. We introduce a novel concept of ‘reverse asset augmentation’ (RAA) to capture the MNE’s behavior of strategic asset seeking from emerging economies. RAA is parallel to and entwined with RKT conceptualization as knowledge is embedded within certain physical assets, other assets, such as brand name/image, may not embody knowledge. Thematic and processual analysis of interview data, collected in three phases, suggests that RAA complements RKT and that both concepts together capture the unconventional strategies of advanced economy MNEs acquiring emerging economy MNEs in search of strategic assets and knowledge.     

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.     

The belt and road initiative,cultural friction and ethnicity: Their effects on the export performance of SMEs in China

China’s Belt and Road Initiative (BRI) has provided Chinese firms with significant incentives to speed up the pace of internationalization. Yet very little international business (IB) research has been found to empirically examine such policy effects. This study explores this important issue using Chinese firms of different ethnicities in the Xinjiang Uygur Autonomous Region (XUAR) of China. We propose that the BRI has a positive formal institutional effect on the export performance of XUAR firms that target the “Belt” countries. Both cultural friction and ethnicity serve as the unique cultural contingencies that moderate the relationship between the BRI and export performance. More specifically, the cultural friction that results from the process of internationalization will negatively affect the export performance prompted by the BRI. The Uygur-owned firms will benefit more from the BRI due to their cultural similarity. Overall, the study takes the lead in investigating both internal conditions and external environments that promote and inhibit the internationalization process of small-to-medium enterprises (SMEs) in the XUAR that are geographically close to the “Belt” countries. The findings help enrich the understanding of the dual “push” and “drag” effects on the outcomes of SMEs’ international activities due to the government-led initiatives and the understanding of micro-foundation toward internationalization from an ethnicity perspective.     

The potential for technology and knowledge transfers between foreign and local firms: A study of the construction industry in Ghana

Multinational corporations (MNCs) and other foreign firms can be conduits for technology and knowledge (T&K) transfer to host countries in the developing world. Most of the existing research focuses on T&K transfers through FDI and are drawn from Asia not Sub-Saharan Africa (SSA), although SSA is increasingly receiving foreign investment. There is a paucity of research that gives insights into project-level T&K transfer issues in SSA countries. Using the Ghanaian construction industry as an empirical focus, this article explores T&K transfer potential. The findings reveal significant weaknesses in T&K transfer across industry subsectors and between foreign and local firms. This arises from the potentially complementary but dissimilar resource and knowledge bases. The weaknesses are compounded by the absence of coherent government T&K development policies.     

Of course that is not the whole (toy) story: Entrepreneurship and the cat's cradle

Reading and analyzing the Toy Store story imply a critical inquiry into how the act of storytelling can be understood. The entrepreneurial story is situated within the context of the plea to downplay the focus on the individual entrepreneur. As this discussion did not share some of the critical debates on the status of the subject, a narrative study of entrepreneurship might refocus on the storytelling entrepreneur rather than on the process of storytelling. To prevent this, storytelling is conceived as an enacted performance that balances complexity and coherence and that draws upon but is not enclosed by a range of cultural and masternarratives.     

A Multilevel investigation into the effect of cultural distance on bilateral trade: The roles of product type and uncertainty avoidance

Previous research shows mixed findings about how cultural distance may affect bilateral trade. To reconcile the mixed findings, we examine how key moderators at both the country-pair level (product type) and the country level (uncertainty avoidance) affect the magnitude of the effect of cultural distance on bilateral trade. Using trade data on electronic products from 90 nations during 2008–2 014, we show that cultural distance in general has a negative impact on bilateral trade. However, the effect is more pronounced when the trade is on experience (versus search) products, or if the importing country is low (versus high) in uncertainty avoidance. Apart from its moderating effect, experience (versus search) product also has a negative main effect on bilateral trade, but its impact is stronger for countries low (versus high) in uncertainty avoidance.     

Positive and negative word of mouth (WOM) are not necessarily opposites: A reappraisal using the dual factor theory

Prior research has not systematically investigated the enablers and inhibitors in conjunction to measure consumer behavior toward mobile wallets (m-wallets), focusing either on the adoption or the resistance perspective only. Similarly, antecedents and consequences of the dichotomous nature of word of mouth for m-wallets have also remained obscure so far. The present research proposes to address this void in the accumulated learnings by examining both enablers and inhibitors of mobile wallets (m-wallets) as antecedents of valence of word of mouth (positive and negative; PWOM and NWOM, respectively). Grounded in Dual Factor Theory, this study aims to explore consumers’ continued use intentions resulting from the WOM valence. The findings reveal that enablers (perceived information quality, perceived ability, and perceived benefit) drive PWOM, while the inhibitors (perceived cost, perceived risk, and perceived uncertainty) spur NWOM. Furthermore, the results show that only PWOM drives the continuance intentions of m-wallet users. Therefore, the study proves that the antecedents of PWOM are different from those of NWOM.     

Let Them Eat (Genetically Re-engineered) Cake and the Little Purple Pill: A Rejoinder to Miles, Munilla and Covin

This paper critiques a recent article in this journal in terms of its use of persuasive techniques. The central issue of the original article by Miles, Munilla and Covin and this paper is whether there should be a change in intellectual property rights to address the needs of impoverished people who are HIV positive or have full blown AIDS and the countries that do not have the means to buy AIDS medication in the absence of subsidies. This paper argues that patents are state sanctioned monopolies that worked effectively for nearly a century. However, new circumstances and a globally interdependent world represent a new environment calling for an adjustment in the conventional public policy premises underlying patents. Most of the meaning and complexity of this issue is lost to the persuasive techniques of the original article.Dennis Ray teaches and researches international and comparative entrepreneurship, technology entrepreneurship and business in Asia. He teaches the international business strategy capstone course.     

Corporate governance in the post Sarbanes-Oxley period: Compensation disclosure and analysis (CD&A)

In recent years, the entire fabric of corporate governance, certainly in the United States, has dramatically changed. With the passage of what has colloquially become known as SOX (the Sarbanes-Oxley Act of 2002), US-based corporations have operated under stricter governance guidelines than at any previous time, especially as regards the structure of boards of directors and financial oversight of the corporation. A now perennial governance “hot button” issue not addressed by SOX is concern over continually rising executive compensation. Until the 2006 adoption of new compensation disclosure guidelines by the Securities and Exchange Commission (SEC), it had been nearly 15 years since federal attention had been devoted to compensation guidelines or regulations. Beginning with 2007 filings, US corporations must now include a Compensation Disclosure and Analysis (CD&A) section. The intent behind the CD&A is to provide investors access to clear explanations of executive compensation and the philosophy that underlies compensation. As often happens, this good intent is accompanied by several unintended risks that may mitigate the effectiveness of the CD&A.     

Solving and Testing for Regressor-Error (in)Dependence When no Instrumental Variables are Available: With New Evidence for the Effect of Education on Income

This paper has two main contributions. Firstly, we introduce a new approach, the latent instrumental variables (LIV) method, to estimate regression coefficients consistently in a simple linear regression model where regressor-error correlations (endogeneity) are likely to be present. The LIV method utilizes a discrete latent variable model that accounts for dependencies between regressors and the error term. As a result, additional ‘valid’ observed instrumental variables are not required. Furthermore, we propose a specification test based on Hausman (1978) to test for these regressor-error correlations. A simulation study demonstrates that the LIV method yields consistent estimates and the proposed test-statistic has reasonable power over a wide range of regressor-error correlations and several distributions of the instruments. Secondly, the LIV method is used to re-visit the relationship between education and income based on previously published data. Data from three studies are re-analyzed. We examine the effect of education on income, where the variable ‘education’ is potentially endogenous due to omitted ‘ability’ or other causes. In all three applications, we find an upward bias in the OLS estimates of approximately 7%. Our conclusions agree closely with recent results obtained in studies with twins that find an upward bias in OLS of about 10% (Card, 1999). We also show that for each of the three datasets the classical IV estimates for the return to education point to biases in OLS that are not consistent in terms of size and magnitude. Our conclusion is that LIV estimates are preferable to the classical IV estimates in understanding the effects of education on income. JEL Classification: C12, C13, C21, J3, M3