Global Foreign Direct Investment: A network perspective

Foreign Direct Investment (FDI) research has usually focused on inward and outward levels of assets flows and stocks, yet very few studies have examined the Global FDI Network. We study the economic performance of countries in terms of their associations with certain FDI partners employing social network analysis. This new approach shifts the focus away from the study of certain country features and their influence on FDI stock levels. Our study of FDI stocks from 229 economies sheds light on the interactions of the global FDI network within its singular context of country-level determinants, its after-effects, internal patterns, and relationship with the network of Bilateral Investment Treaties (BITs). Our conclusion is that country features such as size, openness, skill levels, and institutional stability not only set the pace of FDI, but that they also influence both the network structure and the power positions of each node. We investigate whether that structure responds to homophilic relations between countries or to core–periphery patterns with only a few core economies and we question the strategy of signing BITs to form FDI relations. Finally, we inquire into strategic connections with powerful partners, to ascertain whether they provide beneficial settings for country growth and trade performance.     

The role of network embeddedness across multiple social networks: Evidence from mobile social network games

This article examines peer influences from network relationships within a social network game (i.e., embeddedness) and across such games (i.e., multiplexity). Drawing on social influence theory, we develop a bivariate Poisson model of users’ repeated visits and latent attrition that accommodates peer interaction after controlling for homophily. We estimate the model using data from two social network games with considerable overlap among network members. We find that friends who are only multiplex across games exert greater peer influence on users’ game visits than members who are embedded within a single game. We also determined that ignoring network multiplexity across games may lead firms to mistarget users due to biased peer influences of embedded friends. This result provides an unresearched explanation—strength of peer influence—for the mixed findings in previous literature on network embeddedness. We utilized our results to conduct several scenario analyses to demonstrate how firms can effectively manage users’ engagement and target users in multiple social network games.     

Global supply network embeddedness and power: An analysis of international joint venture formations

As a subset of the international business literature, cross-border equity based partnerships have drawn significant academic attention. In the context of inter-firm partnerships, the power dynamics between parties and the implications that power has on the relational dynamics between firms is an important consideration. Research that connects power with network theory has recently emerged, suggesting that the network, as a source of power, plays a significant role in inter-firm dynamics. Yet, while there has been a substantial body of work either articulating the antecedents and consequences of power, little research has paid attention to the role that power plays in international JV formations; this presents a significant gap in the international business literature. Consequently, this study investigates the role that global network structure plays in the formation of new equity based international partnerships. Secondly, it contributes to the international JV literature by developing and testing a theoretical framework that examines inter-firm power dynamics as derived from the network position of each firm in the global network. Global network prominence, brokerage and weakness are key factors utilized in the analysis. The hypotheses are tested using a global manufacturing joint venture longitudinal dataset that contains 985,689 observations from 1985 to 2003. The results of the event history analysis indicate that for the manufacturer global network prominence, brokerage and weakness play an important role in new joint venture formations. On the other hand, only global network prominence is a significant factor for the potential partner.     

Whistleblowing and power: A network perspective

This article presents a network perspective on whistleblowing. It considers how whistleblowing affects, and is affected by, the preexisting distribution of power inside and outside an organization, where power is conceptualized as deriving from the network positions of the key actors. The article also highlights four characteristic features of whistleblowing: third‐party detriment, local subversion, appeal to central or external power, and reasonable expectation of concern. The feature of local subversion succinctly explains why whistleblowing is difficult. The feature of appeal to central or external power highlights that contrary to the perception of a democratizing phenomenon, whistleblowing tends to redistribute discretion away from local power toward more central power. This suggests a need for caution about institutional measures to promote whistleblowing in contexts where governance is already highly centralized.     

The indirect effects of foreign direct investment on trade: A network perspective

The relationship between international trade and foreign direct investment (FDI) is one of the main features of globalisation. In this paper, we investigate the effects of FDI on trade from a network perspective, since FDI takes not only direct but also indirect channels from origin to destination countries because of firms’ incentive to reduce tax burden, to minimise coordination costs and to break barriers to market entry. We use a unique data set of international corporate control as a measure of stock FDI to construct a corporate control network (CCN), where the nodes are the countries and the edges are the corporate control relationships. Network measures, as the shortest path length and the communicability, are then computed on the CCN to capture the indirect channel of FDI. Empirically, we find that corporate control has a positive effect on trade both directly and indirectly. The result is robust with different specifications and estimation strategies. Hence, our paper provides strong empirical evidence of the indirect effects of FDI on trade. Moreover, we identify a number of interplaying factors such as regional trade agreements and the region of Asia. We also find that the indirect effects are more pronounced for the manufacturing sector than for primary sectors such as oil extraction and agriculture.     

What drives content creation behavior on SNSs? A commitment perspective

We investigate the mind-sets driving users' content creation behavior on social network sites (SNSs) and antecedents of these mind-sets. The results of our survey of 1242 Renren users in China indicated that affective and continuance commitments are the main drivers of users' content creation behaviors on SNSs, while normative commitment has little influence on content creation behaviors. Further, informational support and emotional support from the social support perspective, reputational capital and relational capital from the sunk cost theory, subjective norm and perceived critical mass from the social influence perspective perform well as antecedents of affective, continuance, and normative commitment, respectively.     

Collaboration on technological innovation in Danish fashion chains: A network perspective

With brand owners struggling to compete with new products, physical production processes and sourcing logistics, innovation taking place in retail networks is often overlooked. Networks in retailing are comprised by the brand owner, the varieties of single- and multi-brand stores, chains and departments stores, technology and service providers, ownership structures and local level supply chain facilities. This paper analyses theoretical and empirical views of innovation in international retail networks using lead actors in the (Danish) fashion industry as a case to highlight how this industry maintains branded stores as primary retail channels better than other industries. In order to approach the retail network as an important organisational innovation system in relation to brand owners, the aim of this paper is to characterise key elements of innovation in retail networks. The approach of this work is based on four qualitative studies of medium/larger fashion brand owners and their respective retail and service provider networks. The study shows that innovation in retailing has a continuously emergent character with open-ended strategic design requirements and strong utilisation of relations in business networks. The network comprises an innovation system that focuses on organisational learning and iterative development of the intended technologies. Implications of the current study are suggestions to brand owners, network partners and retailers on how to identify, understand, support and promote innovation via this network through systematic management of the network rather than the innovation itself.     

Host country network,industry experience,and international alliance formation: Evidence from the venture capital industry

Integrating resource dependence and social network theories, we investigate how foreign firms’ position in alliance network in host country influences their further allying with firms from the host and home countries. We introduce network centrality as a factor that influences two competing forces in alliance formation: willingness and attractiveness. Furthermore, we argue that foreign firms suffering from a low network centrality may find it easier to enhance their network position if they have industry experience. Our analysis of data on US venture capital firms’ investment in China supports our theoretical framework. Theoretical and managerial implications of our findings are discussed.     

Brand experience and consumers' social interactive engagement with brand page: An integrated-marketing perspective

As consumers increasingly go online to communicate about brands, brand marketers have been utilizing a popular platform to interact with them and create brand communities, namely a brand page. Prior studies have examined factors that promote the success of a brand page by narrowing focusing on only two influencing factors of engagement with the brand page: individual consumer characteristics and brand page features. Taking an integrated marketing perspective, this study extends that research by examining a broad range of influencing factors affecting engagement with brand page, such as sensory, affective, intellectual, and behavioural brand experiences. Building upon the fundamental motive framework, we demonstrate that brand experience enhances consumers' motivation to participate, socialize, and perceive benefits from others involved within the brand page regardless of individual propensity to socialize online. Furthermore, as consumers are engaged in social interaction within a brand page, they are more likely to be involved in positive WOM about the brand. The theoretical and practical contributions of our study are further discussed, along with suggestions for future research in this important and growing field.     

A story to sell: The influence of storytelling on consumers' purchasing behavior

Storytelling can arouse consumers' emotions and affect purchasing behavior through desires and attitudes. While the marketing literature discusses storytelling, there is a lack of consensus because of the diverse conceptual and operational definitions used. To untangle the complexities and consolidate the fragmented knowledge about storytelling in marketing, this research examines how the marketing literature has addressed the influence of storytelling on consumers' purchasing behavior. The findings aid in understanding how the topic has been discussed from a marketing perspective in consumer behavior studies. Through a systematic literature review using a bibliometric analysis, we demonstrate that the marketing literature features four strands about the uses of storytelling to influence consumers' purchasing behavior. First, storytelling stimulates the consumer's identification with the brand. Second, storytelling allows consumers to experience emotional value. Third, storytelling supports engagement behaviors. Finally, storytelling has a downside in that it also propagates harmful speech. This study concludes with a roadmap for future research about how storytelling impacts consumers' purchasing behavior.     

A contextual perspective on consumers' perceived usefulness: The case of mobile online shopping

This research aims to study the origins of consumers' usefulness perceptions through the example of mobile online shopping adoption in Europe. The results of an empirical study, which is grounded in technology acceptance theory, reveal the pivotal role of consumers' beliefs about the quality of mobile online stores in the formation of usefulness perceptions prior to adoption. While this study identifies that consumers form their usefulness evaluations depending on the respective shopping tasks, the results of a moderation analysis yield usefulness predictors that differ in relevance across product categories and shopping touchpoints. This contextual perspective has implications for both adoption and (online) channel research. It also helps managers to identify starting points on how to promote (mobile) online shopping adoption.     

Social networks and social media: Understanding and managing influence vulnerability in a connected society

Influence vulnerability has recently become a concern across society and in business. Such vulnerabilities increase as social networks are leveraged by different entities, oftentimes through social media, to affect how we think and behave. While many instances of social influence are positive and beneficial, others can be quite negative and lead to harmful outcomes for organizations and individuals such as reputational damage and an inability to control desirable thoughts, narratives, and behaviors. In general, they can decrease people’s freedom of thought and behavior. This article draws on the concepts of social embeddedness and network commitment to outline people’s influence vulnerabilities. It then proposes three guidelines to help reduce influence vulnerabilities based on the concepts of trustworthiness, network commitment, and self-management.     

Narcissistic rhetoric and crowdfunding performance: A social role theory perspective

Drawing from clinical and organizational narcissism research, we develop a novel measure of narcissistic rhetoric, investigating its prevalence in a sample of 1863 crowdfunding campaigns. An experiment using 1800 observations further validates our measure and confirms our hypothesized inverted-U relationship between narcissistic rhetoric and crowdfunding performance. Leveraging social role theory, we explore sex, sexual orientation, and race as potential moderators of this relationship. Moderation tests reveal LGBTQ entrepreneurs generally yield greater performance when using narcissistic rhetoric than heterosexuals while racial minorities underperform Caucasians using narcissistic rhetoric. Our findings suggest successful crowdfunding campaigns must balance narcissistic rhetoric with entrepreneurs' perceived social roles.     

Consumer power and choice deferral: The role of anticipated regret

This paper examines the influence of social power on consumers' propensity to defer choice. Based on the notion that elevated power reduces regret anticipation—the fear of making a wrong choice—it is proposed that power influences the extent of choice deferral by reducing consumers' susceptibility to anticipated regret. Because of the regret-based mechanism, power can increase or decrease consumers' propensity to defer choice, depending upon the situational factors that are associated with anticipated regret, such as salience of regret, outcome reversibility (e.g., return policy), and locus-of-regret (postponing vs. choosing now). Using different manipulations of power, seven studies provide consistent support for the proposed effects and show that situational factors and marketing strategies can induce, turn off, or even reverse the effect of power on deferral. Theoretical contributions and managerial implications are discussed.     

Outsidership,network positions and cooperation among internationalizing SMEs: An industry evolutionary perspective

Immigrant entrepreneurship, like other market entries, continues to be examined in most studies as an event, and not as a process of ongoing interactions and exchanges that would adequately address the influence on such a transition of collaborative engagements and of industry evolution in the host market. Adopting an industry evolutionary perspective, we examine the facilitating role played by cooperative strategies among immigrant-run SMEs. Using a small number of valued customer and competitor relationships, we draw from case studies to show how both immigrant and native run SMEs gain knowledge and resources through collaborative engagements to extend into new customer segments. These relationships enable them to mitigate their outsidership by adopting positions on the edges of networks that allow them to avoid competing directly against other internationalizing SMEs abroad or in their home markets. Using context to build an industry evolutionary perspective, we observe their entry into collaborative engagements with intermediaries in other business networks to build additional industry segments in the less understood maturing industry phase. This study shows how native-run Italian internationalizing SMEs accessed the resources of immigrant Chinese business networks and developed capabilities for mutual benefit.     

The process of assisted negotiations: A network analysis

This article introduces network analysis as a supplement to current research on the process of negotiations. We briefly review the literature on negotiations involving third parties, and argue that to understand fully the dynamics of dispute resolution, it is important to examine processes in addition to outcomes. We propose social network methods as a way to examine systematically the step-by-step process through which self-interested third parties influence negotiated outcomes. To illustrate, we analyze process data from triads in an agent-assisted negotiation. We describe three classes of results. First, we describe the basic properties of the third-party-assisted negotiation process (e.g., we found agents to be the most active players in the negotiation process—they initiate interactions significantly more frequently than buyers or sellers). Second, we study the changes in the process characteristics due to experimental conditions (i.e., we found the interactive patterns to vary depending on the information made available to the third party). Finally, we examine the relationships between the systematic process measures and standard outcome measures. We argue that these measures are complementary, and that the process should be informative with respect to interpreting, predicting, and managing outcomes.This research was supported in part by a grant from the Dispute Resolution Research Center.     

What motivates users' viewing and purchasing behavior motivations in live streaming: A stream-streamer-viewer perspective

Live streaming has offered new opportunities for retailers to increase their sales, hence its reception of continuous scholarly attention. However, understanding the antecedents of viewer watching and purchasing behaviors in live streaming remains largely insufficient. This study thus constructs a framework from a stream-streamer-viewer perspective to provide a deeper understanding of viewer watching and purchasing behaviors. Using flow theory, both stream dimension (social presence and interactivity) and streamer dimension (streamer attractiveness and streamer expertise) as proposed as antecedents of flow, which motivates viewer behavior. Moreover, the optimal stimulation level of viewers (i.e., viewer dimension) was found as a moderator which alters the way stream and streamer dimensions affect flow experience and downstream behaviors. Structural equation modeling was applied on 367 survey questionnaires to test our framework. Results indicate that both social presence and interactivity enhance flow. Furthermore, flow has a significant influence on continuous watching and purchase intention. Meanwhile, optimal stimulation level negatively moderates social presence on flow, but positively moderates interactivity on it.