South Korean MNEs’ international HRM approach: Hybridization of global standards and local practices

This paper analyses the international Human Resource Management (HRM) approaches of Korean Multinational Enterprises (MNEs). Through a study of nine major Korean MNEs’ approaches to subsidiary-HRM, it is argued that the firms pursue hybridization through a blending of localization and global standardization across detailed elements in five broad HRM practice areas. Local discretion is allowed if not counter to global HRM system requirements and “global best practices” used as the template for global standardization of selected HRM elements. This strategic orientation appears to be part of a deliberate response to the “liabilities of origin” born by firms from non-dominant economies.     

Headquarters–subsidiary relationships in MNCs: Fifty years of evolving research

We review the contributions to research on headquarters–subsidiary (HQS) relationships published in the Journal of World Business (known as the Columbia Journal of World Business until 1997) from the late 1960s to the present day. Based on 81 articles on the topic, we identify trends and dominant approaches in the journal's contributions to this area and link them to trends in the broader field of international management (IM) research and practice. We underline the journal's pioneering role in identifying and bringing to the forefront novel research questions and ideas that would later become central to the IM field. We conclude by assessing the importance and relevance of the journal's contributions to the literature on HQS relationships and by suggesting several directions for future research in this area, which could build on past work and leverage new phenomena.     

From local to global innovation: The role of subsidiaries’ external relational embeddedness in an emerging market

This study examines factors that influence the development and transformation of local innovations into global innovations from an emerging market subsidiary. We argue that subsidiaries’ relational embeddedness with the external local network is essential for the development of local innovations. Turning local innovations into global ones is the result of the level of innovativeness evoked by the subsidiary located in an emerging market. However, the transformation of local into global innovations is more likely to happen in the case of subsidiaries having previous reverse knowledge transfers in functional areas. Reverse knowledge transfers indicate internal embeddedness, which is essential for local innovation to be transformed into global innovation. We draw on survey evidence from 131 foreign subsidiaries operating in Brazil. Using a Structural Equation Modeling technique, our results support our hypotheses and show that subsidiaries’ relational embeddedness with the external local network is positively associated with local innovation, which is transformed into global innovation, especially when innovation is developed in the subsidiary´s functional areas with previous reverse knowledge transfers. We draw implications for the field of subsidiary management research, specifically to understand the role of local innovation from foreign subsidiaries in emerging markets.     

Institutional distance and the quality of the headquarters–subsidiary relationship: The moderating role of the institutionalization of headquarters’ practices in subsidiaries

Through the lens of the institutional theory, we developed and empirically tested a contingency theoretical framework that examines the effects of formal and informal institutional distances on the quality of the headquarters–subsidiary relationship, and how such effects are contextualized by internal institutionalization of headquarters’ practices in subsidiaries of Chinese multinational enterprises (MNEs). Data were collected from both the headquarters of 297 Chinese MNEs and their respective subsidiaries. The results show that regulative and cultural distances are positively associated with the quality of the headquarters–subsidiary relationship, and that these positive relationships are stronger when subsidiaries institutionalize headquarters’ practices to a higher degree. Theoretical and practical implications are highlighted in the paper.     

Thoughts on Business Leadership in Emerging Markets: A Side Effect of Economic Colonialism or Simply Poor Management?

The strategic function of a top business leader, with its vision‐forming, persuading, and control abilities, spans much of what has been traditionally viewed as the field of leadership research. While some leaders speak or write about leadership without having led many businesses, others who have led lack the capacity for reflection which is necessary to explain what it is that they do. Yet, most leaders seem to have something to say, and they find eager listeners. Are MBA candidates being misled by the business press and thus are unable to tell a real leader from a fraud? Or is it that those we call business leaders today are only figureheads propelled by those toiling beneath them? This commentary focuses on thoughts centered on the rim of contention: business leadership in Brazil. © 2013 Wiley Periodicals, Inc.     

Work–family conflict in the sales force redux: A compendium of influencers

Abstract

Selling is a primary function of channels of distribution with sales managers and salespeople markedly influencing channel success. Recently, salesperson work–family conflict has become a major concern, owing to its potential for adversely affecting sales force performance and thus impairing associated channel success. It has been extensively investigated in industrial-organizational (I/O) psychology, but sales scholars’ interest in it remains in the incipient stage. Whether findings from non-sales contexts are portable to a selling milieu remains an empirical question. This article presents an array of organizational- and managerial-related, individual job-related, individual person-related, technology-related, and contemporary selling environment-related factors that have been found to be or are logically associated with salesperson work–family conflict. The article thus seeks to facilitate sales researchers’ and practitioners’ efforts in undertaking empirical work and assisting salespeople to manage such conflict. To date, no previously published work has engaged in this charge.     

The Role of Local Context in Headquarters–Subsidiaries Relationships: A Global Analysis of the Literature

This study reviews the literature on multinational corporations’ headquarters–subsidiaries relationships, focusing on the role of the local context and its influence on subsidiaries in developed and emerging markets or countries. The author searched the literature using several terms directly related to these issues. The findings demonstrate that subsidiaries can only operate successfully in foreign locations by adjusting their policies to fit into the local environment because there are multiple contexts. Multinational corporations manage the local context by integrating their home behavior and that of the subsidiaries’ operating environments. A framework for identifying and managing different local contexts is proposed.     

Factors affecting international joint venture success: an empirical analysis of foreign–local partner relationships and performance in joint ventures in Turkey

This article discusses inter-partner relationships and their impact on joint venture performance. It explores the changes in the nature of relationships (conflict, commitment, co-operation, trust) which have important implications for the continuity and performance of partnerships. In doing so, it identifies the potential areas of co-operation and conflict, due to both partners' overlapping interests, and establishes constructs which help explain conflict, commitment and other soft dimensions of joint venture operations. Based on previous studies, this article develops a framework within which inter-partner relations (conflict, commitment, trust, co-operation, and autonomy) are empirically examined. The article also establishes performance constructs for joint venture organisations. Finally, it develops a dynamic model of inter-partner relations and performance which indicates the causal connections between conflict, commitment, control, inter-partner co-operation and performance.     

Evolution of firms' product strategy over the life cycle of technology-based industries: A case study of the global mobile phone industry, 1980–2009

This paper adopts industry life cycle approaches to understand better the changing rationales for product strategy development in the worldwide mobile phone industry. Based on both primary and secondary sources, we find that mobile phone manufacturers have radically changed their product strategy over the industry life cycle in response to various factors, such as the intense global competition and the need to respond rapidly to changes in technology and mass-consumer preferences. We also find that, when the mobile phone industry entered a stage of shake-out in the 2000s, contrary to the prediction of the classical product–process life cycle model, mobile phone manufacturers focused their strategy not only on process but also on product innovations. The continuous launch of new and advanced product technologies served mainly to stimulate the demand for replacement purchases. We observe this unexpected key role of product innovation to be very strong also in the stage of industry maturity.     

A Quantitative Assessment of the Finance–Growth–Innovation Nexus in EEA Countries: Evidence from a Multivariate VECM

This paper uses country-level data of European Economic Area countries between 1989 and 2016 to examine the interactions between economic growth, innovation, and financial market activities, with specific reference to the bond and insurance markets. Our intent is to know whether causality runs among these variables both ways, or not at all. Using a vector error correction model, the study finds that financial market activities and economic growth determine innovation activities in these countries. Additionally, the study also finds bidirectional Granger causality between financial market activities and economic growth, as well as between innovation activities and economic growth.     

The role of subordinate emotional masking in leader–member exchange and outcomes: A two-sample investigation

Recent developments in the leadership literature call for research that emphasizes the role of the follower as well as that of emotion in the leader–member exchange (LMX). In response to these calls, this research examines the relationship between subordinate emotional masking and LMX quality, as well as the mediating role of LMX quality in emotional masking/outcome relationships. We collect data from two samples of MBA students from the United States and China, respectively. In both samples, we find that emotional masking by subordinates is negatively related to LMX quality. The mediating role of LMX quality in the relationship between emotional masking and work-related outcomes is also supported. Suggestions for future research and practice are discussed.     

A network text analysis of published papers in service business, 2007–2017: research trends in the service sector

The service sector has become the most important part of the global economy. Thus, Service Business: An International Journal (SB) was launched in 2007 to deliver innovative studies that can provide resonating insights to researchers and practitioners in services. This study analyzed 311 articles published in SB during the past 10+ years (2007–2017) by conducting network text analysis (NTA). The published papers’ keywords link relations were analyzed to create network maps of research topics, ranging from traditional to emerging ideas of researchers. Influential research topics and their clusters were identified using centrality and community analyses. Research trends were identified for the first 5 years (Volume 1–5) and later years (Volume 6–11) separately through NTA. The results reveal interesting change in research topics over time. Common keywords of studies published in the first 5 years were: Service, Innovation, Customer, Strategy, Tourism, and Quality. The primary frequent keywords of articles published during 2012–2017 were: Customer, Quality, Satisfaction, Innovation, Mobile, and Technology. The results of the study shed valuable insights to the researchers and practitioners in the service sector. Applications of keyword network building and analysis methods provided in this study would be helpful to researchers who are interested in exploring trends of emerging new topics.     

Changes in Concentration of Advertising Expenditures Among the Leading National Advertisers in the United States 1970–1988: A Note

This paper investigates the change of advertising concentration between 1970 and 1988. Using six measures of concentration and based on the advertising expenditures of the one hundred leading advertisers in the US reported by Advertising Age, this paper finds that the level of advertising concentration varies in the 1970s and has been steadily increasing since the early 1980s. However, the change of advertising concentration between all of the two-year periods examined is not significant. The findings also suggest that the nature of industry and the country of origin of advertisers do not exhibit significant impact on the level of advertising concentration.     

East–West Differences in “Tricky” Tactics: A Comparison of the Tactical Preferences of Chinese and Australian Negotiators

How do Eastern and Western perceptions of “tricky” or ethically ambiguous negotiation tactics differ? We address this question by comparing 161 Chinese and 146 Australian participants’ ratings of the appropriateness of different types of negotiation tactics. We predict that their differing cultural values (e.g., individualism/collectivism, importance of face) as well as their different implicit theories of how negotiation ought to be conducted (i.e., mental models, such as captured in The Secret Art of War: The 36 Stratagems) will be salient in their perceptions of tactics. Examining 24 tactics falling into eight categories, we found that overall the Chinese respondents saw these tactics as more appropriate than did the Australian respondents. There were, however, differences across categories of tactics. Chinese participants rated tactics related to the 36 stratagems as significantly more appropriate than did Australian participants, including diverting attention, misrepresenting information and making false promises. In some cases, the Chinese also saw feigning positive feelings/emotions as more appropriate than did the Australian participants, while an Australian preference for feigning negative feelings/emotions was partially supported. The implications of these findings for practitioners are discussed, along with opportunities for future research.     

‘The trauma of competition’: The entry of Air Products Inc. into the industrial gases business in Britain and continental Europe, 1947–70

The British Oxygen Company (BOC) had a virtual monopoly on the supply of industrial gases (e.g. oxygen and acetylene) on the British market through the 1950s, when it was finally challenged by an American-based company, Air Products. Air Products Limited (APL) was able to undercut BOC's position, overcoming high barriers to entry to gain significant market share in this sector, which shares some features of network industries. Factors in this success included conditions imposed by the Board of Trade, APL's innovations, BOC's slow response, and favourable market conditions. APL's success had implications for the internationalisation of the industrial gases industry.     

Stock Transfer Patterns in the Hudson's Bay Company: A study of the English Capital Market in Operation, 1670–1730

In recent years, there has been expanding interest in the growth, structure and integration of the early English securities market. However, much of the research on this market has focused on overall market data or the larger chartered companies. The purpose of this paper is to provide an alternative approach to studying the issue of market activity and development, utilising the stock ownership and transfer records of the Hudson's Bay Company. As a successful smaller chartered company it is possibly more representative of the majority of firms utilising the London financial market of the time. The records provide evidence of an organised and efficient market that was accessible to a variety of large and small investors, including a network of stockbrokers. The volume of transfers also indicates a dynamic pattern of market activity rather than a closely held firm which only obtained its initial capitalisation through the market.     

A Commentary on “Undergraduate Education: The Implications of Cross-Functional Relationships in Business Marketing–The Skills of High-Performing Managers”

ABSTRACT

This commentary reinforces the importance and need for developing the student's knowledge, abilities, and understanding of what is required to collaborate with the firm's internal and external constituencies, in the context of B2B marketing environment. It is an important goal to be achieved in the B2B marketing course. The new era of business marketing is built around achieving “collaborative advantage” with the new breed of customers who demand relatively more complex product and services arrangements as well as nature of relationships from their vendors. Today's customers also expect intellectual input and consultative selling approaches from group of diverse and independent marketing entities, whom they expect to work together to meet their requirements. The firm's success or failure in the market place may indeed be predicated on their ability to achieve this “collaborative advantage”. The commentary also expands the authors' suggestions in the areas of course pedagogy and design for building the student's know-how and capability for practicing the art-of-collaboration.