Foreign Direct Investment in Sub-Saharan Africa: Motivating Factors and Policy Issues

Sub-Saharan Africa's (SSA) foreign direct investment (FDI) share has persistently averaged 1% of global flows. The location decision and perceptions of investors are therefore instructive for policy making. This article factor analyses a survey of perceptions, operations, and motivations of 758 foreign investors in 10 SSA countries. We find that the provision of transaction cost–reducing information on industries and markets and utility services to investors before and after a firm's FDI decision are significant factors. FDI location decision in SSA is influenced strongly by political economy considerations. Labor and production input variables are not influential.     

MNE home country cultural norms and conflict strategy fit in transnational business contract disputes

The increasing frequency and complexity of transnational business relationships has been commensurate with an increase in contractual disputes. In such situations, home country cultural norms will often influence how MNEs resolve contractual disputes in foreign markets. This begs the question: does fit between an MNE's choice of conflict strategy and its home country cultural norms affect monetary payouts (costs) in transnational business contract disputes? We apply organizational imprinting theory and the fit paradigm to a model employing data from U.S. court cases involving 316 MNEs from 47 countries. We find that choosing a conflict strategy that fits home country cultural norms will result in higher monetary payouts for MNEs. Additionally, cultural distance, but not legal distance, enhances the positive relationship between MNE conflict strategy fit and monetary payouts. Implications and future research directions are discussed.     

How do small firms possibly survive? A comparison study of marketing skills and logistics infrastructure of small and large wholesalers

Most wholesalers are small family-owned firms that frequently lack marketing skills and an infrastructure capable of setting into practice state-of-the-art marketing distribution systems. They are much more consumed with daily activities and credit and collection functions than they are with developing marketing skills and logistics networks. The purpose of this exploratory study is to identify the elements of marketing skills and logistics that are associated with the performance of small and large wholesalers, and to compare and contrast these variables. Data were collected from 4500 small and large wholesalers in Hyogo and Osaka prefectures in Japan. Multiple regression analysis of this study found that the factors of supplier's financial assistance and buyer's services to wholesalers explained the performance of small wholesalers, and the factors of supplier's service to wholesalers and buyer's service to wholesalers explained the performance of large wholesalers. Multivariate analysis of variance and multiple discriminant analysis revealed that large and small wholesalers differed with respect to supplier's services to wholesalers, the supplier's financial assistance, and the wholesaler's intra logistics activities. Implications are discussed.     

Risk bias and the link between motivation and new venture post-entry international growth

We link research in international entrepreneurship and on behavioral decision making with the international business literature on firm degree of internationalization to advance an integrative model of new venture post-entry international growth. We test this model on a sample of 286 new ventures. Results demonstrate that the extent to which entrepreneurs perceive internationalization choices more or less risky than an objective standard (i.e. internationalization risk bias) leads to variations in international growth rates, in particular international scope. Further, we show that the decision-maker's motivation leads to differences in both internationalization risk bias and international scope.     

A good deal online: The Impacts of acquisition and transaction value on E-satisfaction and E-loyalty

Relying on Thaler's exchange theory, this research examines the unique effects of perceived transaction and acquisition values on consumer e-satisfaction and e-loyalty in an e-commerce setting, along with the moderating role of product/ service category. Overall, consumers' perceptions of transaction value lead to their e-dissatisfaction. Hence, obtaining a good deal does not have the same meaning and influence depending on the type of buying trip (exploratory or goal-directed). These results confirm Thaler's exchange theory's usefulness to analyzing the impact of perceived value on e-satisfaction and e-loyalty. Additionally, in a managerial perspective, this research underlines the importance of adapting promotional strategies to online contexts, since online purchase experience improves when there is an alignment between the customer's goals and the e-tailer’s online offering.     

Organizational culture evolution in temporary organizations: The case of the 2010 Olympic Winter Games

We examine organizational culture evolution within a temporary organization, specifically the 2010 Olympic Winter Games organizing committee, by exploring aspects of the work environment. Analysis of organizational artifacts, ethnographic field‐notes, and member‐checking demonstrated that liminal spaces facilitated socialization and cultural crystallization, which in turn assisted members' performance. Organizational structure, socialization, and cultural evolution were parallel processes that impacted each other. The concept of time (i.e., velocity) had a direct influence on subculture crystallization. The paper further integrates stakeholder/client interactions and draws on the role of leadership and cultural infusion mechanisms to demonstrate how culture evolves in temporary organizations. Copyright © 2013 ASAC. Published by John Wiley & Sons, Ltd.     

Competence Building and Corporate Renewal

In 1996, the French business publication Capital carried an analysis of what it called the resurrection of the dinosaurs: the revival of corporations that had been viewed as moribund. Examples abound in every industrialised country: Chrysler, IBM or General Electric in the United States and Usinor-Sacilor, Siemens or Fiat in Europe. What strategies are behind these cases of revival? This article describes how, starting in 1993, a French company sought to renew itself by implementing one particular strategy which has been widely discussed among managers and academics alike: competence building. It then discusses the general lessons which can be drawn from the case. In particular, the article aims to reveal empirically the relationship between competence building and the corporate renewal process and then to use the case history to help develop the theory of competence-based competition between firms.     

Institutional Impediments to Voluntary Ethics Measurement Systems

In this paper, we argue that calls for widespread implementation of ethics measurement systems would be better informed by institutional economic analysis. Specifically, we assert that proponents of such systems must first recognize and understand the institutions that potentially impede such efforts. We identify two potential institutional impediments to measuring ethics and social responsibility. First, we suggest that neoclassical economics, supported by traditional business education and legal precedent, serves to reinforce the notion that shareholders are the primary corporate constituency group. Such an emphasis on the needs of shareholders severely hinders implementation of measurement systems that address the needs of multiple stakeholder groups. Second, we argue that the threat of litigation may constrain corporate managers from measuring and considering ethics and corporate social responsibility matters. In particular, managers may be reluctant to quantify various ethical concerns if the resulting measurements could be used as evidence against the corporation in a lawsuit.