The role of other orientation on the relationship between institutional distance and expatriate adjustment

Drawing upon institutional and self-categorization theories, this manuscript argues that the institutional distance between home country and host country groups exerts influence over expatriate adjustment. In addition, the individual difference of other orientation plays both a direct role on the adjustment process as well as a moderating role on the relationship between institutional distance and adjustment. Propositions regarding these relationships are formed for future empirical test, and implications and directions for future research are provided.Expatriate adjustment Institutional distance Cultural distance Other orientation

Job attitudes and absenteeism: A study in the English speaking Caribbean

This paper examines the relationships of job attitudes (facets of job satisfaction and organizational commitment) and personality characteristics to absenteeism, in five manufacturing companies in Barbados, an English-speaking Caribbean country. The relationships examined are based on well-established theories from the developed world, especially the USA. In addition, individualism, uncertainty avoidance, and power distance were measured. The results show that an employee's levels of satisfaction with co-workers, activity, responsibility, and job security, as well as loyalty to the organization, are related to absenteeism. These results are similar to those found in past research in the developed world. The most important single predictor of absence was satisfaction with co-workers. Respondents were moderate on individualism, high on uncertainty avoidance, and low on power distance. The cultural scores are used to help interpret the results. The implications of the results are discussed in terms of expanding the reach of an established theory, and relative to decreasing absenteeism in Barbados.Job satisfaction Organizational commitment Personality characteristics Cultural values Absenteeism

DISTÂNCIA CULTURAL E MODOS DE ENTRADA: UM ESTUDO DAS MAIORES TRANSACIONAIS BRASILEIRAS

O presente artigo analisa se o tamanho dos grupos transnacionais modera o grau de inter-relacionamento entre a distância cultural (DC) e a preferência por métodos de entrada de aquisição ou exportação. Visando a trazer um novo prisma sobre o tema da DC, este estudo analisa o fenômeno além das dimensões culturais de Hofstede, empregando como moldura teórica a perspectiva bimodal proposta pelo Globe Project. Para o estudo, foi pesquisada uma amostra de 31 grupos empresariais que estão entre os 78 maiores grupos empresariais internacionalizados do Brasil. Os resultados indicam que, tendo em vista o universo das maiores transnacionais brasileiras, as empresas que atuam em países distintos culturalmente possuem certa aversão a entradas futuras via aquisições, já que o tamanho da empresa modera negativamente (atenua) essa relação: grupos maiores são menos afetados em suas decisões futuras de aquisições pela experiência prévia em países culturalmente distintos. Finalmente, as duas dimensões de DC, valores e práticas, possuem diferentes impactos na escolha do modo de entrada

CULTURAL DISTANCE AND ENTRY MODE CHOICE: A STUDY WITH BRAZILIANS MAJOR TRANSNATIONAL FIRMS

This article analyzes the degree of relationship between cultural distance (CD) and the preference of brazilian transnationals when choosing for a entrance mode strategy. Aiming to bring a new perspective on the topic of DC this study seeks to analyze the phenomenon beyond the cultural dimensions of Hofstede, using the theoretical framework of the Globe Project. This study get's a sample of 31 firms that are among the top 100 Transnational Companies (TNCs) in Brazil. Results indicate that the Brazilian TNCs are relatively less willing to choose more risky entrance mode strategies when they operate in culturally distant countries. Firm size also acts as a moderator of the relationship between DC and the entrance mode preference, where bigger firms are less affected by cultural distance when deciding the strategy for international ventures. Finally, the two dimensions of DC (values and practices) shown different relations with entrance mode preference

International value creation: an alternative model for Latin American multinationals

Recently, there has been considerable research on the great rise of Emerging Market Multinationals (EMNEs). Yet very few EMNEs are generating a significant portion of their profits abroad, and there is a growing list of failures associated with these firms internationalization efforts. This paper summarizes traditional thought on international strategy, explains the historical trajectory of EMNCs, and highlights how EMNCs have adapted to mainstream IB strategy theories. The paper develops a new model of international value creation based on primary and secondary data from the largest firms in Latin America. Specific examples of how to operationalize the model are offeredRecentemente, houve considerável investigação sobre a grande ascensão das Empresas Multinacionais Emergentes (EMNEs). No entanto, poucas EMNEs estão a gerar uma parte significativa dos seus lucros no estrangeiro e há uma lista crescente de fracassos associados aos esforços de internacionalização destas firmas. A presente comunicação sintetiza o pensamento tradicional sobre estratégia internacional, explica a trajectória histórica das EMNCs e ilustra o modo como as EMNCs se adaptaram às principais teorias de estratégia de transacções internacionais. O artigo desenvolve um novo modelo de criação de valor internacional com base nos dados primários e secundários das maiores firmas da América Latina. São apresentados exemplos específicos sobre o modo de operacionalizar o modeloMuchos han sido los estudios recientes centrados en el auge de las multinacionales de mercados emergentes (Emerging Market Multinationals - EMNEs). Aun así, muy pocas EMNEs están generando una parte significativa de sus beneficios más allá de sus fronteras y la lista de fallos asociados a los esfuerzos de internacionalización de estas firmas no deja de crecer. Este artículo resume conceptos tradicionales sobre la estrategia internacional, explica la trayectoria histórica de las EMNCs y destaca cómo las EMNCs se han adaptado a las teorías de transacciones internacionales más convencionales. El artículo desarrolla un nuevo modelo de creación de valor internacional basado en datos principales y secundarios de las firmas más importantes de Latinoamérica. Se incluyen ejemplos específicos sobre cómo aportar operabilidad al model

Choosing between the formal and informal economy: how do business managers in emerging markets decide?

Why do managers in emerging markets conduct some activities in the informal economy and others in the formal economy when they have a choice? Using institutional economic theory, previous research shows that, at the country level, weak formal institutions create institutional voids that increase the transaction costs of using the formal economy. To evade high transaction costs, managers in emerging markets use the informal economy. However, previous research does not explain, at the firm level, why managers in emerging markets conduct some activities in the informal economy while conducting others in the formal economy. I theorize that, at the firm level, managers' social ties with formal institutions protect them against being singled out for enforcement and against potential opportunistic behaviors by business partners. In particular, opportunism, which increases transaction costs, might take place in the informal economy because contracting parties cannot be held legally accountable. That is, managers' social ties with formal institutions allow them to keep the transaction costs of using the informal economy lower than the transaction costs of using the formal economy for a specific activity. Moreover, I argue that not all managers who have social ties with formal institutions are prone to conduct more activities in the informal economy. In particular, based on regulatory focus theory, I argue that managers who have a promotion focus mindset are more prone to use their social ties with formal institutions to conduct activities in the informal economy. Using a sample of 206 Lebanese respondents, I developed two new scales: manager's social ties with formal institutions and manager's propensity to use informal economy. I then used these scales to empirically test my theory. The results of this study support my theory that managers who have social ties with formal institutions are more prone to conduct activities in the informal economy. However, the results of this study did not support the argument that managers who have a promotion focus mindset are more prone to use their social ties with formal institutions to conduct activities in the informal economy. (Published By University of Alabama Libraries