Corporate investment, financing, and dividend policies in the high-tech industry

The agency theory, transactional cost economics, and traditional strategic management perspectives have provided several key corporate financial policies. However, these policies have generally been discussed and established separately. This study explores the causal structure of corporate financial strategies for the high-tech firms in Taiwan and China. By employing path analysis and directed graphs model, this paper explores the causal relationships among investment, financing, dividend policies, and corporate performance. The results show that the investment expenditures by Taiwan's firms positively affect financial performance and the increased borrowings jeopardize company's profits. However, the financing decisions of China's firms have a positively effect on their capital expenditures. The findings suggest that firms across the Strait adopt different strategies in financial decision environments.     

Interactive Effects of Network Capability,ICT Capability,and Financial Slack on Technology‐Based Small Firm Innovation Performance

This study examines the influence of network capability (the ability to use external relationships), information and communications technology (ICT) capability (the ability to strategically use ICT for business purposes), and financial slack (unused and uncommitted financial resources) on the innovation performance of small firms. This extends the current resource‐based view and small firm innovation management literatures by proposing the direct and interactive effects of organizational capabilities and financial slack. The results of regression analysis based on survey data from technology‐based Swedish small firms show that the three‐way interaction involving network capability, ICT capability, and financial slack influences innovation performance.     

Strategies,technologies, and organizational learning for developing organizational innovativeness in emerging economies

Innovativeness is an important organizational capability for competitive advantage sustainability in the dynamic environment of Asia's emerging economies. Drawing upon dynamic capability theory, this study develops a research model of organizational innovativeness development for firms in emerging economies. The proactive strategic orientations reflected by entrepreneurship and technology oriented strategy provide important visions for organizational innovativeness. Further, the utilization of knowledge management systems and organizational learning are identified as intervention processes that translate these strategic orientations into real innovation capability. A survey involving 114 firms operating in China was conducted for hypothesis testing. The empirical results provide strong support and advance the knowledge of organizational innovativeness development for firms in Asia's emerging economies.     

海峡两岸农产品出口结构调整能力与调整成本比较分析

我国大陆是台湾地区重要的农产品进出口市场,在海峡两岸农产品贸易中保持持续顺差。本文利用斯皮尔曼等级相关系数比较分析我国大陆与台湾地区农产品出口结构调整能力状况及变化趋势,结果表明台湾地区农产品出口结构调整能力弱于我国大陆,我国大陆和台湾地区按照对方市场当年农产品总进口需求进行结构调整的能力要强于滞后一年的调整能力。S指数比率表明,在海峡两岸农产品贸易中,我国大陆农产品贸易绩效良好,农业调整成本总体低于台湾地区。海峡两岸应实施农产品产业内贸易与产业间贸易并重战略。     

Logistics service capabilities and firm performance of international distribution center operators

This study empirically evaluated the crucial logistics service capabilities and firm performance of international distribution center operators in Taiwan. Three critical logistics service capabilities were identified based on factor analysis: (a) innovation capability, (b) customer response capability, and (c) flexible operation capability. Cluster analysis was subsequently used and based on their mean scores in the three logistics capability dimensions, respondents' firms were assigned to one of three groups, namely: customer response and flexible operation capabilities-oriented firms, customer response and innovation capabilities-oriented firms, and customer response capability-oriented firms. Findings indicated that customer response and innovation capabilities-oriented firms had the best firm performance, followed by customer response and flexible operation capabilities-oriented firms and customer response capability-oriented firms.     

Performance effects of aligning service innovation and the strategic use of information technology

In the current dramatically changing business environment, innovation capability is the key to attaining competitive advantages for firms. Drawing on the concept of alignment, the present research proposes a service innovation alignment model within which service innovation and strategic use of information technology (IT) coexist in evaluating performance. Data for hypotheses testing are collected from top-ranked service companies in Taiwan. A total of 165 surveys were collected. Performance implications of alignment are examined using fit as covariation approach. The findings demonstrate that the alignment between service innovation and the strategic use of IT has significant impacts on service innovation performance as well as business performance.     

Multinational Corporate Power,Influence and Responsibility in Global Supply Chains

This study examines the influence of underwriter–auditor relationship (UAR) on pre-initial public offering (IPO) earnings management. Using a sample of Chinese to-be-listed firms, we find that a close UAR, as reflected in repeated collaborations between an underwriter and an audit firm in IPOs, is positively associated with pre-IPO earnings management. This association is more pronounced for firms with politically connected auditors/underwriters, firms with less reputable auditors/underwriters, firms located in provinces with weak legal environment, firms to-be-listed on boards with lax listing requirements, and firms whose auditors are with low industry specialization, and legal liability exposures. We provide further evidence that UAR is associated with greater likelihood of irregular activities in post-IPO period and poorer post-IPO financial performance. To the extent that we control for alternative explanations and potential endogeneity, our results suggest that the collusion incentive is likely to drive repeated collaborations between underwriters and auditors in the Chinese IPO market. Our findings provide interesting implications for auditors, investors, and regulators seeking to understand the Chinese IPO market.     

Linking international adaptation strategy,immigrant effect,and performance: The case of home–host and cross-market scenario

Previous studies suggest that a proper fit between business strategy and human resource management can enhance a firm's financial performance. Building on prior findings, this study proposes that an ideal match could occur on the choice of international adaptation strategy and immigrant effect (IE). This match would have a significant effect on firms’ financial performance. The proposed framework is examined using the experience of 121 firms operating across the Greater China region in the home–host and cross-market scenarios. It is found that the extent of adaptation strategy is positively associated with the choice of IE in both home–host and cross-market scenarios and that IE has significant direct and indirect effects on market share and profitability in the cross-market scenario. This study proposes a new strategy–human resource management-performance framework. The findings established provide some implications for researchers and managers.     

Environmental practices,family control,and corporate performance: Evidence from Chinese family firms

This study analyzes Chinese family firms to determine how environmental practices influence corporate performance in consideration of the moderating effect of family control. Based on hand-collected data of environmental practices and 698 Chinese listed family firms, the results show that the environmental practices and corporate financial performance (CFP) link can be captured by a U-shape, and environmental practices are positively associated with corporate social performance (CSP). Furthermore, family control positively moderates the relationship between environmental practices and performance. The findings provide systemic understandings of the CFP and CSP of family firms through important insights into environmental practices and family control.     

Green Innovation and Performance: The View of Organizational Capability and Social Reciprocity

Synthesizing insights from a dynamic capability perspective and social network theory, this study identifies the factors influencing green innovation and examines the relationships between influencing factors, green innovation, and performance. This study uses structural equation modeling to test the research hypotheses. The results indicate that dynamic capability, coordination capability, and social reciprocity are significant drivers of green innovation, including green product innovation and green process innovation. Green product and process innovation have positive effects on environmental performance and organizational performance. These findings are relevant to firms in quest of green management and innovation.     

Export strategy,export intensity and learning: Integrating the resource perspective and institutional perspective

Export intensity (EI) has been widely examined as a performance outcome of exporting firms. To date, studies on the determinants of EI have generated mixed and even contradictory results. To reconcile such inconsistencies, this study dichotomizes export strategy in emerging economies into two distinctive types, expansion-oriented vs. escape-oriented, with the former inspired by exploiting firm-specific competencies as portrayed by the RBV and the latter motivated by avoiding the domestic institutional deficiencies as informed by the institutional perspective. Different from prior findings in the International Business literature, this research finds that a firm’s extremely high EI might not result from their superior competencies. Instead, high EI firms might focus on export mainly for the purpose of escaping from their home country’s deficient institutional environment that places extra burdens in terms of costs of doing business. Such escape-oriented exporters are more sensitive and responsive to changes in the environment while they do not enhance their learning as much as those expansion-oriented exporters. Furthermore, institutional environment has heterogeneous impacts on firms with different ownership types. Our study helps integrate the insights from both the RBV and the institutional perspective, and our dichotomization of export strategy adds precision and sophistication to the understanding of EI and export performance. Our hypotheses are supported by an empirical study based on a sample of exporting firms in China between 1998 and 2007.     

The endogenous role of location choice in product innovations

The location choice of product innovations is a prevalent phenomenon one that has received little attention in the literature. This study examines the ways in which comparative industry environment, technology and product characteristics, and entry timing affect the firm's location choice of new product development activities between headquarters and foreign subsidiaries and the implications of location choice for performance. Our findings indicate that: (1) firms are more likely to locate their new product development activities at foreign subsidiaries in mainland China than at headquarters in Taiwan when the industry environment at foreign subsidiaries is more favorable, when technologies and products are more mature, and when the entry to mainland China's market is earlier than that of its competitors; (2) in general, firms locating their new product development activities at headquarters in Taiwan perform better than firms locating their new product development activities at foreign subsidiaries in mainland China after controlling for endogeneity bias; (3) firms locating their new product development activities at headquarters (at foreign subsidiaries) perform better than if they had located their new product development activities at foreign subsidiaries (at headquarters). Managerial implications and future research directions are discussed.     

‘Reverse internationalization’ in Chinese firms: a study of how global startup OEMs seek to compete domestically

This research investigates whether the global startup original equipment manufacturers (OEMs) in China could employ their knowledge-acquisition capability developed via internationalization to compete domestically (i.e. reverse internationalization), facing the recession in developed markets. Results examine that knowledge-acquisition capability can help these firms compete in ‘reverse internationalization’, while the conduct of own brand strategy partially mediates the positive relationship between their capability and domestic performance. We contribute to the literature by identifying the unique ‘Chinese global startup OEMs’, recognizing knowledge-acquisition capability as a high-order dynamic capability for such firms, and introducing a novel entrepreneurial phenomenon we call ‘reverse internationalization’.     

Does high supply chain integration enhance customer response speed?

The capability of customer response speed is commonly employed by firms that wish to strengthen their relationship with customers in order to maintain a high level of service in a hypercompetitive environment of rapidly changing technology. Improved customer response speed also helps manufacturers respond more rapidly to satisfy customer needs. However, does high level of supply chain integration with customers have positive impact on customer response speed? This study proposes a conceptual model to examine antecedents to better firm performance, with customer response speed as a mediator. The conceptual model was empirically tested using data collected from 809 manufacturing companies in the Greater China Region. The results show that the nature of the relationship between customer integration and customer response speed may vary substantially from one area to another. Also, customer response speed mediates between customer integration and firm performance in China and Taiwan.     

Upstream internationalization process: Roles of social capital in creating exploratory capability and market performance

This paper investigates to what extent resource governance of international ventures affects dynamic capability and market performance in the high-tech firms’ internationalization process. We examine the non-equity-based international network collaborations of high-tech firms as forms of strategic resource seeking within the internationalization process. Within the context of upstream technology collaborations by international software and hardware firms, this paper proposes and empirically examines the impact of resource governance mechanisms (i.e. trust-building and behavioral monitoring) on the exploratory capabilities of firms. The findings indicate that building trust in the internationalization process of network ventures contributes to the firm-level exploratory capabilities and, in turn, market performance. Furthermore, this paper tests the moderating effects of structural capital on the capability–performance relationship. The relationship is stronger when network relationships existed before the inception of the international technology alliance. We also find a negative moderating effect from the existence of an actual alliance and from network duration on the relationship between exploratory capability and market performance. To this end, the longevity of the alliance may not always be something firms should aim for. The paper highlights the criticality of relational and structural capital in the internationalization process and the importance of exploratory capability for creating radical innovation in high-tech industries.     

Expanding to outward foreign direct investment or not? A multi-dimensional analysis of entry mode transformation of Chinese private exporting firms

This research examines the factors determining whether or not exporting firms expand to outward foreign direct investment (OFDI) as part of their internationalisation strategy, using a recent survey of Chinese private-owned enterprises. We carry out a multi-dimensional analysis to investigate the impact of firm productivity, internal resources and the external environment on OFDI decisions, including both the decision to undertake OFDI and the volume of OFDI flows. It is found that productivity, technology-based capability, export experience, industry entry barriers, subnational institutions and intermediary institutional support affect firms’ OFDI decisions. The findings have important policy and managerial implications.     

Social capital and new product development outcomes: The mediating role of sensing capability in Chinese high-tech firms

This study investigates the effects of social capital (trust and power) on a high-tech firm's new product development outcomes through the leveraging of its sensing capability in an emerging market, China. A sample of high-tech firms in China is used to test the proposed relationships. Findings confirm that both trust and power in a high-tech firm's social network are significantly associated with its two new product development outcomes through sensing capability which fully mediates the relationships.     

Deconstructing B2B,co-creation and service deployment in East Asia: evidence from Taiwan and PRC manufacturers

Academia and governments have been advocating service deployment as an upgrading strategy for manufacturers for some time now. Existing research findings show that customer co-creation may be a key to service strategy success. However, prior studies have focused on relatively resource-rich and advanced Western contexts. This research examined co-creation’s role on service deployment performance and the conditions that encourage co-creation in the manufacturing business-to-business context of Taiwan and the PRC. The results indicate that co-creation fully mediates the relationship between a firm’s service deployment and customer-perceived value. Additionally, a firm’s product-service significance, capability specificity, supply chain mode and customer-perceived environmental turbulence may significantly influence co-creation.     

证券市场选择是否影响公司业绩与价值?--来自中国房地产行业的经验证据

企业在不同资本市场之间的选择往往是上市过程中一个重要决策。上市地点是否会影响其后续业绩表现以及价值？文章基于中国内地房地产企业数据的研究发现,在中国香港上市的企业比在中国内地上市的企业经营业绩更优,而两者在股市价值上并无显著差别。另外,在(中国)香港上市的房地产企业中,国有企业股市价值低于非国有企业;而在中国内地上市的房地产企业中,国有企业股市价值高于非国有企业。研究结果说明,证券市场完善的监管有利于降低代理人问题,提高企业经营业绩。     

Environmental management,nonmarket strategy,and firm performance in emerging markets: The case of ISO 14001

Firms use environmental management standards such as ISO 14001 to reduce the impact of business activity on the natural environment. Though these standards are widely celebrated on moral and ethical grounds, their implication for financial performance and competitiveness is equivocal. Drawing on neo-institutional theory, we conceptualize ISO 14001 as a nonmarket strategy and examine its impact on firm performance within the contexts of three highly polluted emerging markets – China, India, and Pakistan. Employing a rigorous event-study approach, we find that ISO 14001 certification has a negative impact on firms’ operating profitability and market value in both short and long runs. This negative impact appears to be stronger in contexts with weak institutions and poor environmental protection regimes. Further multivariate analyses show that the negative impact of ISO 14001 on firm performance is weaker among socially responsible firms and stronger among politically connected firms. These findings contribute to the environmental management literature. They also have practical implications for managers.