The influences of governance quality on equity-based entry mode choice: The strengthening role of family control

This study examines the possible heterogeneity of governance quality's influence on entry mode decisions made by firms with different degrees of family control. When entering a country with low governance quality, ceding control of the subsidiary in exchange for local partners’ help enables foreign firms to tackle institutional flaws. However, such a motivation diminishes as governance quality increases. This study thus hypothesizes that firms tend to choose WOSs over JVs when entering a host country with high governance quality.Firms controlled by family members, due to concerns regarding the preservation of socioemotional wealth, prefer to maintain high ownership levels of their affiliates. This study thus hypothesizes that firms with a higher degree of family control are even more likely to choose WOSs when entering a country with high governance quality. The results support the hypotheses.     

Real call options to enlarge foreign subsidiaries – The moderating effect of irreversibility on the influence of economic volatility and political instability on subsequent FDI

This paper develops a real option model to explain the decision of enlarging a new foreign subsidiary by subsequent investment. The model is tested on a panel of 1148 subsidiaries in 22 host countries. The findings complement the traditional process model of firm internationalization. Rather than abiding by an incremental pattern of investment, internationalizing firms seem to keep foreign investment strategies flexible and build up their subsidiaries contingent upon the interaction of economic volatility and irreversibility of investment. However, the moderating effect of irreversibility on the relationship between uncertainty and investment may not hold for downside risks such as political instability.     

The role of family management and ownership on semi-globalization pattern of globalization: The case of family business groups

Employing a multi-level with longitudinal concern data analysis this research examines the impact from family management and ownership on semi-globalization pattern of globalization in family business groups from an integrated framework. The results reveal that the more likelihood that the controlling family utilize family management in the subsidiary, and the higher degree of pyramidal ownership in the subsidiary, the more likelihood that the family business group will choose to engage in the host regions. Additionally, family management and pyramidal ownership is positively related with the choice to engage in a higher difference region instead of a lower difference region in family business groups. The theoretical and future research implications of these findings for family enterprises and globalization research are discussed.     

自主创新战略下我国技术对外依存度的现状、成因及对策

本文分析了我国技术对外依存度偏高的现状,从自主创新的视角,解释了我国技术对外依存度偏高的原因,并提出降低我国技术对外依存度的对策。     

Managing international joint ventures to improve performance: The role of structural and social mechanisms

Poor performance has been a major concern in research on international joint ventures (IJVs). This study integrates the IJV management mechanisms from transaction cost theory (TCT) and social exchange theory (SET) in order to gain insights into management mechanisms that improve IJV performance. The framework consists of three structural (i.e., symmetric dependence, symmetric equity share and resource complementarity) and three social (i.e., trust, communication and cultural adaptation) IJV management mechanisms, which are considered as potential determinants of IJV performance. Based on the analysis of data collected from 89 IJVs established by Nordic firms in Asia, Europe and the USA, results indicate that TCT-based symmetric dependence and resource complementarity on the one hand and SET-based trust, communication and cultural adaptation on another significantly improve IJV performance. However, impact of symmetric equity share on IJV performance remains negative and non-significant, explaining that IJV partners may consider it rather a safeguard to their own stake and interests in IJVs. In addition, SET-based IJV management mechanisms are found to be more effective than the TCT-based IJV mechanisms in improving IJV performance.     

Institutional and transaction cost influences on MNEs’ ownership strategies of their affiliates: Evidence from an emerging market

This paper examines the impact of institutional, and transaction cost specific variables on MNEs’ choice of equity ownership in their foreign affiliates. We consider the determinants of the choice of foreign investors between full ownership (setting up a wholly owned greenfield subsidiary or engaging in a full acquisition) and sharing ownership with a local firm (establishing a greenfield joint venture or making a partial acquisition). Drawing on both transaction cost and institutional theories, a number of hypotheses are developed. Based on a dataset of 6838 foreign affiliates in Turkey, the empirical analysis reveals that institutional variables are important in explaining the equity composition of foreign affiliates. Particularly important in determining equity ownership were found to be political risk, cultural distance, linguistic distance, agglomeration, location and the size of the affiliate. A distinguishing feature of the paper is that we examine the marginal effects of the independent variables in explaining ownership patterns of MNEs.     

The 2009 Nobel Prize in Economics to Oliver E. Williamson: Recognition of the Influence of Transaction Cost Economics on Business Research

This article provides an introduction to the Journal of Retailing Special Issue dedicated to Oliver Williamson and transaction cost economics. The paper briefly outlines transaction cost economics contributions to marketing and related social sciences.     

Transaction services and SME internationalization: The effect of home and host country bank relationships on international investment and growth

Building on the argument put forward by North and Wallis (1994) that the transaction sector enables economic growth by lowering the costs of transacting, we investigate how internationalizing firms’ host and home country bank relationships affect their international specific investments and growth. Banks provide payment, liquidity, and risk management services, which are essential to international business relationships, yet little is known about how banks affect international business relationships. In a sample of 255 small and medium-sized enterprises (SMEs), we find that host and home country bank relationships affect the dependent variables differently. We contribute to the literature by explicating the role and effects of banks in international business relationships. Our findings have implications for understanding transaction services in international business as well as the choices made by their customers.     

企业组织跨边界机理:基于相关理论上的考察

本在分析竞争能力、技术发展、分工与专业化理论中有关企业边界及跨边界组织研究的基础上，指出核心竞争力理论可为专业化水平选择提供有益的借鉴：协作生产中的分工经济性是跨边界组织形成的必要条件；跨边界组织模式中各个企业的专业化水平选择取决于外生的由“核心技术”决定的绝对优势和比较优势；而后技术便作为内生结果与分工和专业化一起演进。     

The influence of social capital on strategic choice: An examination of the effects of external and internal network relationships on strategic complexity

In this research we investigated the direct contributions of social capital via network involvement to the strategic complexity of firms. Specifically, we looked at three network types - trade associations, external personal networks, and internal personal networks - to assess their individual and collective effects on strategic complexity. We empirically tested the relationships in the rural telecommunications industry using a mailed survey to this population's CEOs. We obtained 203 responses (30% response rate). Using Poisson regression, we found that all three network types were positively associated with strategic complexity, which was measured as product portfolio breadth. We also discovered that initial conditions affected strategic outcomes, with larger firms and cooperative ownership associated with greater strategic complexity.     

Outsourcing of Information Systems Functions in Small and Medium Sized Enterprises: A Test of a Multi-Theoretical Model

In this paper determinants of information systems (IS) outsourcing are deduced from transaction cost economic theory, resource-based theory and power theory. They are summarized in a theoretical framework which is tested using a sample of small and medium sized enterprises (SMEs) in Germany. The results show that internal performance and know-how deficits vis-à-vis external service providers are key determinants that explain why different IS functions are outsourced to varying degrees in SMEs. Moreover, the determinants of IS functions were found to partially differ between IS functions. Revised reprint of an article from WIRTSCHAFTSINFORMATIK 43(4)2001:339–350.

The effect of a geographically dispersed supply base on downside risk: Developing and testing the N-shaped theory

Globalisation, and its resultant complexity, has been called the most significant factor in the increase of supply chain risk. In this paper, we investigate the effects of supply base complexity that result from geographic dispersion and how that affects supply chain risk. Informed by several theories, an N-shaped theory for the relationship is hypothesised. A regression analysis that uses survey data from manufacturing firms operating in Finland is utilised to test the hypothesis. Contrary to our hypothesis, we find support for an inverse U-shaped association of supply base complexity due to geographic dispersion and the negative effects of supply risk. The possible causes of the result and how it can be reconciled with the N-shaped theory are discussed. Supply managers are advised to avoid international complexity creeping into supply and to engage in cross-functional discussion about the implications of supply base dispersion.     

The impact of the information and communications technology revolution on the internationalisation of corporate technology

The rising pace of technological change in information and communications technology (ICT) has doubtless provoked the rise of “techno-globalism” at a cross-firm level by providing a new mode of diversification. As a result of the increasing process of technological interrelatedness, the specialisation in a core pervasive technology (as ICT is nowadays) allows the firm to develop tacit capabilities, which, in turn, facilitate its corporate activity in different kinds of technology across national boundaries in an intra-firm network. Therefore ICT can be view as a platform for entry into new products as well as an enabler of fusion of technology.This paper investigates whether the increased specialisation in ICT has influenced the geographical diversification or internationalisation of firms. The association between the two phenomena is found in the later (but not in the former) period under analysis. By adopting a more detailed level of sectoral aggregation within the ICT field, the econometric analysis seems to indicate computing (rather than communications) as the ICT component driving the relationship between internationalisation of research and development activity and ICT specialisation.     

SME foreign market entry mode choice and foreign venture performance: The moderating effect of international experience and product adaptation

Firms’ foreign market entry mode choice attracts considerable research attention. However, the performance implications of this choice remain inconclusive, particularly in the context of small and medium-sized enterprises (SMEs). The present paper draws on the resource-based view (RBV) and develops a theoretical model specifically tailored to the context of SMEs in order to study the relationship between entry mode choice and foreign venture performance. Testing hypotheses on 133 German SMEs, we show that international experience as a resource and product adaptation as a capability improve the performance of non-equity entry modes by mitigating liabilities of smallness inherent to SMEs. We furthermore find empirical support for the joint moderating effect of international experience and product adaptation on the focal relation. Our findings contribute to the SME foreign market entry mode literature and have implications for practitioners and future research.     

高管团队异质性对现金持有的影响——一个被调节的中介模型

作为公司的决策主体,高管团队异质性的结构特征是否以及如何影响现金持有水平有待进行充分地探讨。借助高阶理论和信息加工理论的研究成果,本文构建一个被调节的中介模型,分析高管团队异质性、产品多元化以及环境不确定性对现金持有的影响。结果表明:高管团队异质性正面影响产品多元化,产品多元化负面影响现金持有,产品多元化在高管团队异质性和现金持有之间发挥着中介作用;环境不确定性不仅正向调节产品多元化和现金持有的关系,还能正向调节"高管团队异质性→产品多元化→现金持有"这一中介机制。上述结论不仅有助于充分理解高管团队异质性影响现金持有的作用机制以及边界条件,还能为管理实践提供决策参考。     

The logo matters: the effect of the logo type on the attitude towards co-products

ABSTRACT

This study investigates the effect of the type of logo used to promote co-products. In the case of an added logo, the logos of the constituent brands are lined up next to each other. An integrative logo is composed of the elements of both original brand logos. A novel logo does not contain any elements of the original brand logos. We found that the use of an integrative logo results in more favourable perceptions of brand cooperation, higher perceptions of co-product quality, more positive feelings and a more favourable attitude towards the co-product compared to the use of an added or novel logo. For a novel logo of co-products, consumers reported feelings of irritation and frustration and a less favourable attitude compared to an added logo.     

The effect of service failure types and service recovery on customer satisfaction: a mental accounting perspective

Service failure recoveries play an important role in the service process. Previous research on service recovery has focused on the development of classification schemes, such as service failure types (e.g. outcome- or process-related failure), service recovery attributes (e.g. psychological or tangible recovery), and failure magnitude. Few studies in the literature have developed a theory-driven model of customer satisfaction that considers whether different types of service failure warrant different types of service recovery. This article, which reports the results of two studies, draws on mental accounting theory to examine the effect of the relationship between service failure and service recovery on customer satisfaction. The results of Study 1 show that customer satisfaction is greater when service recovery efforts truly make up for what customers have lost and that prior experience of service failure has a significant influence on the effectiveness of those efforts. The results of Study 2 indicate that the magnitude of a service failure also has an impact on the effectiveness of service recovery efforts.     

Using a hedonic price model to test prospect theory assertions: The asymmetrical and nonlinear effect of reliability on used car prices

This paper investigates prospect theory implications in used goods markets. In particular, it develops a hedonic price model that addresses the price structure of the used car market in the light of prospect theory. The proposed hedonic price model provides empirical evidence in support of prospect theory predictions for explaining used car prices after controlling for observed product differentiation. It is demonstrated that consumers are risk seeking when used car reliability is below the expected reference value and risk averse when used car reliability is above the expected reference value. The model also illustrates how car quality affects residual values and how buyers evaluate used cars.     

Internet Technologies in China: Insights on the Morally Important Influence of Managers

Within Science and Technology Studies, much work has been accomplished to identify the moral importance of technology in order to clarify the influence of scientists, technologists, and managers. However, similar studies within business ethics have not kept pace with the nuanced and contextualized study of technology within Science and Technology Studies. In this article, I analyze current arguments within business ethics as limiting both the moral importance of technology and the influence of managers. As I argue, such assumptions serve to narrow the scope of business ethics in the examination of technology. To reinforce the practical implications of these assumptions and to further illustrated the current arguments, I leverage the recent dialog around U.S. Internet technologies in China. The goal of this article is to broaden that which is morally salient and relevant to business managers and business ethicists in the analysis of technology by highlighting key lessons from seminal STS scholars. This article should be viewed as part of a nascent yet burgeoning dialog between business ethics and Science and Technology Studies – a dialog that benefits both fields of study.     

The Effects of Media and Task on User Performance: A Test of the Task-Media Fit Hypothesis

This research was designed to examine the task-media fit hypothesis, an extension to media richness theory that predicts the objective performance of various media for a number of task types. To examine this model, dyads communicating through face-to-face, videophone, telephone (i.e., audio-only communication), or synchronous computer-mediated communication worked in a laboratory experiment to address an intellective or negotiation task. The intellective task required that each dyad member effectively share factual information that each individual independently held. The negotiation task required that each dyad member effectively share preferences based on personal values and reach an agreement. The results of the study provide mixed support for the task-media fit hypothesis. In general, the results for the negotiation task largely supported the theory while the results for the intellective task did not support the theory. These results help to clarify limitations and provide extensions to the theory by demonstrating how variations in task processes and communication media act to mediate task performance. The implications of these results for future research and practice are discussed.