Paying for cross-border acquisitions: The impact of prior acquirers’ decisions

By examining the premiums paid by acquiring firms in cross-border acquisitions (CBAs), this study aims to determine why they might rely on prior premium decisions in the host market rather than rigorous assessments of the deal. An information-based imitation framework offers an explanation for foreign acquirers’ premium decisions. The developed hypotheses are tested with 2350 CBAs that occurred during 1995–2008. The results show that the premium paid by acquiring firms in CBAs relates positively to prior premiums paid by foreign acquirers in that host country. This imitation behavior is influenced by both organization- and offering-level characteristics.     

A comparative analysis of the role of national culture on foreign market acquisitions by U.S. firms and firms from emerging countries

Do firms from emerging economies differ from U.S. firms in their foreign market acquisition strategies? A comparison of cross-border acquisitions by firms from the United States and 18 emerging countries shows that (1) firms from both the United States and emerging countries target countries that are culturally closer to their home countries, (2) a strong interaction effect occurs between market potential and cultural distance for emerging country firms as the market potential increases (i.e., at high market potential, firms from emerging economies are willing to overlook cultural distance), (3) no interaction effect occurs between market potential and cultural distance for U.S. firms, and (4) different cultural dimensions affect the market entry strategies of U.S. firms and firms from emerging countries.     

A Comparison of Clustering Dynamics in the British Broadcasting and Financial Services Industries

This paper compares patterns of industrial clustering in the British broadcasting and financial services industries. Recent trends of deregulation, rapid technological change, and globalization in both industries suggest the significant and increasing importance of clustering effects. This study examines the evidence. It investigates the effects of cluster strength on the growth of the firm and on rates of surviving entry. We find positive, large, and statistically significant clustering effects. In both industries: (a) incumbent firms located in a cluster that is strong in their own sub-sector of their industry tend to grow faster than average; and, (b) new firms are attracted by industry strength in certain sub-sectors in a particular region. The results for these largely mature service industries are very similar to those observed in earlier studies that have examined clustering patterns in newer high technology manufacturing industries.     

The benefits of industrial clustering: Insights from the British financial services industry at three locations

Building on completed statistical research which indicates that the dynamics of industrial clustering in financial services are of similar magnitude to those found in high technology manufacturing industries, this paper reports findings from a study of clustering in the British financial services industry at three locations. Generic benefits of clustering are compared with the specific benefits found in financial services and different cluster types are delineated. The paper finds that access to specialised inputs and knowledge spillovers on the supply side and a clusters reputation and close proximity to sophisticated customers on the demand side are important benefits in financial services clusters. The paper also finds that performance differences between significant financial services clusters are due to differences in the make-up of a cluster and the processes that take place within it. No two clusters are alike and so it follows that clusters policy making should proceed on a case-by-case basis.     

HR and IT capabilities and complementarities in knowledge-intensive services

The main premise of this article is that human resources (HR) and information technologies (IT) are central rather than support functions in knowledge-intensive services. By building management capabilities in both HR and IT, knowledge-intensive services can transform their business processes that, in turn, enable them to provide exemplary services to the customers. Our arguments are grounded in the three related theoretical frameworks of the resource-based view, organizational capabilities, and the theory of complementarities. We suggest that the research and practice in HR and IT fields may have to focus on HR and IT capabilities rather than HR practices or IT investments as the sources of sustainable competitive advantage since capabilities better fit the definition of a ‘resource’ than HR practices or IT investments. Further, organizational capabilities in both HR and IT may enable knowledge-intensive services to transcend the inherent tradeoff between cost and responsiveness. We also discuss the role of HR and IT in knowledge management.     

The Antecedents and Moderators of Offline Information Search: A Meta-Analysis

An examination of consumer information search literature reveals that the effects of several antecedents (cost, price dispersion, knowledge, prior experience) on offline information search vary greatly in terms of the directions and magnitudes of the determinants’ effect sizes, particularly indicating the possibility of inverted-U shaped relationships. Also, despite a wide range of studies undertaken, there remains a need for identifying an overarching framework for consumer information search. This article synthesizes previous empirical studies on offline information search literature, and attempts to provide and test a framework that advances our understanding of the current state of this literature. The review identifies significant antecedents to offline information search, and also tests the moderating effects of demographic variables and study conditions on the direct effects. In the context of the main effects, findings suggest that the nature of relationships of several antecedents with the central construct is indeed inverted-U shaped. Further, moderator analyses identify the boundary conditions under which specific theories hold. The closing section provides future research directions.     

Positive and Negative Affectivity as Mediators of Volunteerism and Service‐Oriented Citizenship Behavior and Customer Loyalty

This study sought to examine the impact of volunteerism (motivation to help) on service‐oriented organizational citizenship behavior (S‐OCB) of salespeople as mediated by the positive and negative affectivity, and further how the involvement of salespeople in S‐OCB would affect the customer loyalty toward the company. The context chosen for empirical investigation was the Indian pharmaceutical sector and the sample consists of 125 medical sales representatives from four companies that are well‐established players, including three multinational firms and one Indian company, as well as their supervisors (n = 48) and doctors (n = 150). The data are analyzed through partial least squares approach to path modeling to estimate the measurement and structural parameters. All of the hypotheses are confirmed. The results of this study indicate that volunteerism exhibits a significant positive impact on S‐OCB and customer loyalty. In addition, this positive impact is partially mediated by positive and negative affectivity. In sum, the proposed model explains a large amount of variance in S‐OCB and customer loyalty, suggesting that it will serve as a useful tool for analyzing service‐oriented organizational sale persons’ behavior and customers’ reactions. The implications of these results include improving service OCB by promoting volunteerism in the service industry and emphasizing the important roles of service staff in enhancing the customer loyalty.     

Engaging customer care employees in internal collaborative crowdsourcing: Managing the inherent tensions and associated challenges

Customer care employees (CCEs) are an excellent source of ideas for new and enhanced services for customers. By serving many customers, CCEs have the ability to see patterns in unserved and underserved needs. By being inside rather than external to the firm, CCEs have the ability to offer suggestions that build on existing capabilities, which result in ideas that are more easily implementable. There is a long history of research and practice for soliciting suggestions from employees, but little of this work has described how CCEs can be organized into a temporary online crowd to cocreate innovative ideas. With the advent of crowdsourcing software platforms, online collaboration among geographically distributed CCEs is increasingly possible. We describe an action research study of Optum, a healthcare company that implemented a collaborative internal crowdsourcing initiative over a period of 18 months. The action research study led to the identification of three tensions and associated challenges. We outline eight HRM actions that were undertaken to mitigate the challenges of engaging CCEs in internal crowdsourcing efforts. Based on our findings, we lay out a general framework, implications, and future research directions for research and managerial actions when engaging CCEs in internal collaborative crowdsourcing.     

Economic impact of introducing TYRX amongst patients with heart failure and reduced ejection fraction undergoing implanted cardiac device procedures: a retrospective model based cost analysis

Background and aims: Infection is a serious and expensive complication of Cardiac Implantable Electronic Device (CIED) procedures. A retrospective based cost analysis was performed to estimate Trust level savings of using the TYRX antibacterial envelope as a primary prevention measure against infection in a tertiary referral centre in South London, UK.

Methods: A retrospective cohort of heart failure patients with reduced ejection fraction undergoing Implantable Cardioverter Defibrillator (ICD) or Cardiac Resynchronization Therapy (CRT) procedures were evaluated. Decision-analytic modelling was performed to determine economic savings of using the envelope during CIED procedure vs CIED procedure alone.

Results: Over a 12?month follow-up period following CIED procedure, the observed infection rate was 3.14% (n?=?5/159). The average cost of a CIED infection inpatient admission was £41,820 and, further to economic analysis, the additional costs attributable to infection was calculated at £62,213.94. A cost saving of £624 per patient by using TYRX during CIED procedure as a primary preventative measure against infection was estimated.

Conclusions: TYRX would be a cost-saving treatment option amongst heart failure patients undergoing ICD and CRT device procedures based on analysis in the local geographical area of South London. If upscaled to the UK population, we estimate potential cost savings for the National Health Service (NHS).     

Geographic clustering and outward foreign direct investment

This study addresses an important neglected question: To what extent do geographic clusters promote outward foreign direct investment (ODI)? We find evidence that clusters do promote ODI and so support Porter's argument that advantages gained in clusters can be the foundations of successful internationalisation. Digging deeper, we find that certain cluster incumbents promote more ODI than others, with more experienced firms and firms with stronger resource bases accounting for more ODI. We also find that firms located in clusters within major global nodes/cities engage in more ODI. Finally, we find that both localisation and urbanisation economies promote ODI. However, the former, within-industry effects, are more important. Overall, this study echoes Dunning's call for more focus on the ‘L’ component of the ownership, location, internalisation (OLI) paradigm and particularly on the advantages that reside in clusters that make them not only attractive destinations for foreign direct investment (FDI) but also fertile environments from which FDI can spring.