Performance of foreign subsidiaries: Does psychic distance matter?

Psychic distance paradox emerged from studies that found a positive effect of psychic distance on subsidiary performance. Recently, it was argued that international experience influences the relationship between psychic distance and performance. We propose that the effect of market-specific knowledge, rather than general international experience, should be examined because it negates the effect of psychic distance. We study 208 foreign direct investments made by west-European MNEs in the CEE (Central and Eastern European) region between 1996 and 2002 and find that positive relationship between psychic distance and subsidiary performance is observed only in the absence of market-specific knowledge. Psychic distance has no effect on subsidiary performance when the MNEs have CEE investment experience or have established the subsidiary with a local partner.     

Spatial Aspects of ICT Development in Russia

The paper investigates the potentials of ICT in Russia for tackling the challenges of huge territory, strong regional disparities, segmentation of economic space and over-centralisation by Moscow. The Internet currently imposes a definite regional discrimination in Russia based on complex criteria, which are not limited to household incomes. After initial polarisation in Moscow and Saint Petersburg, Internet use is now concentrated in a dozen Russian regions, marking a shift to polycentric polarisation, but Internet service activities remain concentrated in Western Russia. A new wave of centrifugal trends is starting thanks to offshore outsourcing in software development, in which Russia is preferred to China and India.     

Acquisitions and Real Options: The Greenfield Alternative

Although acquisitions are a popular way to enter new markets, empirical evidence tends to indicate few benefits accrue to acquiring firms. This might be the case because firms use acquisitions when they should be employing an alternative mode of expansion. Applying real options theory to this issue, we suggest that greenfield start‐up ventures provide a real option alternative to acquisitions for firms establishing new international subsidiary units. To test this notion we examine a sample of Western European firms entering the emerging economies of Eastern Europe. The evidence suggests that acquisitions are a good choice only when firms enter markets containing low demand uncertainty and when these firms possess acquisition‐based strategic flexibility. Overall, our analysis indicates that greenfield ventures appear to provide firms with a real option when making the acquisition decision.     

Determinants of the adoption of HRM practices in tourism SMEs in Spain: an exploratory study

This paper explores the relationship between the adoption of HRM practices in Small and Medium-sized Enterprises (SMEs) and the characteristics of the firm and the person responsible for HRM. We propose a conceptual model based on the resource-based view, which is tested with quantitative data from 164 tourism’s SMEs in Catalonia (Spain). As predicted, the adoption of HRM practices is positively associated with the presence of an HRM department. Also, SMEs in which the person responsible for HRM has previous experience in similar positions are greater adopters of HRM practices. Finally, SMEs which cooperate with other organizations are more likely to implement HRM practices.     

Research Methods in the Leading Small Business–Entrepreneurship Journals: A Critical Review with Recommendations for Future Research*

Small business and entrepreneurship scholars have made significant progress toward advancing the field and gaining recognition as an important domain of scientific inquiry. However, the authors suggest that a strong methodological foundation built on state‐of‐the‐art research technologies is necessary to support further paradigmatic growth and maturation. Using Chandler and Lyon's study as a benchmark for research methods through the 1990s, the study critiques research methodologies used by small business and entrepreneurship researchers over the ensuing years. The analysis includes all 665 papers published between 2001 and February of 2008 in the Journal of Small Business Management, Journal of Business Venturing, and Entrepreneurship Theory and Practice. The research outlines key methodological issues, assesses recent methodological practice, identifies current trends, and offers recommendations for researchers in adopting existing and emerging research technologies.     

Sampling Procedures for Coordinating Stratified Samples: Methods Based on Microstrata

The aim of sampling coordination is to maximize or minimize the overlap between several samples drawn successively in a population that changes over time. Therefore, the selection of a new sample will depend on the samples previously drawn. In order to obtain a larger (or smaller) overlap of the samples than the one obtained by independent selection of samples, a dependence between the samples must be introduced. This dependence will emphasize (or limit) the number of common units in the selected samples. Several methods for coordinating stratified samples, such as the Kish & Scott method, the Cotton & Hesse method, and the Rivière method, have already been developed. Using simulations, we compare the optimality of these methods and their quality of coordination. We present six new methods based on permanent random numbers (PRNs) and microstrata. These new methods have the advantage of allowing us to choose between positive or negative coordination with each of the previous samples. Simulations are run to test the validity of each of them.     

Delocalisation and ICT Outsourcing in the CEEC Countries: The Role of Proximities

In a rapidly changing global context, this article sets out to examine certain tendencies which bring themes of international trade and economic geography of territories into close relation. It seems increasingly difficult to explain strategies of firms without reference to the logic, which dictates where they locate their productive activities. We tried to identify the role of ICT in determining the logic of localisation, mainly by analysing the situation in East European transition countries through an approach based on the economy of proximities.     

Is cultural distance a bane or a boon for cross-border acquisition performance?

Literature has offered diverse explanations of the relationship between cultural distance and acquisition performance, pointing to both positive and negative effects. In this paper, we build on these findings and attempt to reconcile the conflicting research streams. We suggest that the effect of cultural distance on cross-border acquisition performance depends on the level of acquisition experience of the acquirer. More internationally experienced acquirers are more likely to be aware of cross-border acquisition pitfalls and are more skilled at resolving acquisition related conflicts; this allows the acquirer to benefit from cultural differences, ultimately leading to higher acquisition performance. Performance of culturally distant cross-border acquisitions launched by inexperienced acquirers is lower because such acquirers are unlikely to have a culturally sensitive anti-conflict action plan, which affects the ability of the acquirer to benefit fully from cultural distances. Albeit we stipulate that experience with domestic acquisitions affects positively the relation between cultural distance and acquisition performance, we do not find support. We empirically test our model with a comprehensive database of 1223 cross-border acquisitions launched during the 2009–2010 period.     

Modeling of Income and Indicators of Poverty and Social Exclusion Using the Generalized Beta Distribution of the Second Kind

There are three reasons why estimation of parametric income distributions may be useful when empirical data and estimators are available: to stabilize estimation; to gain insight into the relationships between the characteristics of the theoretical distribution and a set of indicators, e.g. by sensitivity plots; and to deduce the whole distribution from known empirical indicators, when the raw data are not available. The European Union Statistics on Income and Living Conditions (EU‐SILC) survey is used to address these issues. In order to model the income distribution, we consider the generalized beta distribution of the second kind (GB2). A pseudo‐likelihood approach for fitting the distribution is considered, which takes into account the design features of the EU‐SILC survey. An ad‐hoc procedure for robustification of the sampling weights, which improves estimation, is presented. This method is compared to a non‐linear fit from the indicators. Variance estimation within a complex survey setting of the maximum pseudo‐likelihood estimates is done by linearization (a sandwich variance estimator), and a simplified formula for the sandwich variance, which accounts for clustering, is given. Performance of the fit and estimated indicators is evaluated graphically and numerically.