Institutional distance and foreign subsidiary performance in emerging markets: moderating effects of ownership strategy and host-country experience

Institutional distance has been known to be an important driver of Multinational Enterprises’ strategies and performance in host countries. Based on a large panel dataset of 10562 firms operating in 17 emerging markets and spanning 80 home countries, we re-examine the relationship described by Gaur and Lu (2007) between regulatory institutional distance and subsidiary performance. We extend this research by (1) examining this relationship in the context of emerging markets, (2) examining the moderating effects of ownership strategy and host-country experience within the context of emerging markets and (3) accounting for a greater variety of institutions by including a large number of home and host countries. We find that institutional distance negatively affects subsidiary performance in emerging markets. Our findings also show that the negative effects of institutional distance on subsidiary performance are lesser for subsidiaries with partial ownership (than for subsidiaries with full ownership) and for subsidiaries with greater host-country experience. We discuss our findings with respect to Gaur and Lu’s model, which explores the relationships between these variables in a general context

The effects of market economy and foreign MNE subsidiaries on the convergence and divergence of HRM

This study explores patterns of human resource management (HRM) practices across market economies, and between indigenous firms and foreign MNE subsidiary operations, offering a novel perspective on convergence and divergence. Applying institutional theorizing to improve our understanding of convergence/ divergence as a process and an outcome, data collected from nine countries at three points in time over a decade confirm that convergence and divergence occur to different extents in a non-linear fashion, and vary depending on the area of HRM practice observed. Patterns of adoption and convergence/ divergence are explained through the effect of institutional constraints, which vary between liberal and coordinated market economies, and between indigenous firms and foreign MNE subsidiaries. The study contributes a more graded conceptualization of convergence/ divergence, which reflects the complex dynamic reality of international business

Robust image analysis with sparse representation on quantized visual features

10.1109/TIP.2012.2219543IEEE Transactions on Image Processing223860-871IIPR

Learning in multinational enterprises as the socially embedded translation of practices

Purpose With a few exceptions, the mainstream literature on learning in multinational enterprises (MNEs) has shown little concern for the transformational nature and the social constitution of learning. This paper aims to address this gap by drawing on Scandinavian institutionalism, social learning perspectives, and comparative institutionalism. Design/methodology/approach A comparative case study of two subsidiaries of the same MNE was conducted. The subsidiaries received similar practices from headquarters (HQ) but displayed contrasting learning outcomes. Findings It is shown that learning outcomes differed based on the varying extent to which practices were translated, which depends on the participation of local actors. The difference in participation pattern, in turn, is rooted in differences in the institutional context of the two subsidiaries. Research limitations/implications It is recognized that apart from institutional influences, organizational idiosyncrasies may be at work. In addition, the paper briefly considers the extent to which the notion of contrasting forms of capitalism is still useful when comparing the German and British institutional contexts. Practical implications The findings highlight the importance of involving employees in the translation of new practices. A challenge for MNEs is that learning of new practices can differ by institutional context. Where enabling institutional conditions are absent, conscious effort may be needed to ensure employee participation. Originality/value This paper highlights that MNE practice transfer rests on the translation of the practice content to the local context, and that subsidiary‐level learning processes may be institutionally embedded, thus establishing a link between subsidiary learning and the macro‐level context. As such, this paper both illustrates the value of social learning perspectives and the relevance of the work of institutionalists for understanding MNE learning processes.</p

Globalisation and International Students: Remodelling Micro-international Aspects for the Entrepreneurial University

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Understanding the main drivers of value creation in an open innovation program

Innovation has been identified as the single most relevant element in fuelling corporations' competitive advantage and ultimate value creation. Corporations no longer rely on a single, linear structure of innovation; the new paradigm of open innovation opens up new possibilities of organizing innovation within the ecosystem, thus giving rise to new drivers for value creation. These value drivers have an impact on the strategic position of the firm and have the ability to create superior financial performance. In this paper we explore the close relationship between open innovation and value creation and propose a framework to analyze this process as well as the most critical elements involved. © 2013 Springer Science+Business Media New York