Ethnic ties, location choice, and firm performance in foreign direct investment: A study of Taiwanese business groups FDI in China

This paper examines ethnic ties and their impact on FDI location choice and firm performance. Drawing on social network theory and using data from 88 Taiwanese business groups, the study tests the impact of ethnic ties on firm FDI location choice and performance outcomes in China. Results show that ethnic ties of top managers matter in facilitating firm FDI location choice. In contrast to our expectations however, ethnic ties do not help to improve firm performance in China. Implications of these results are discussed in view of existing literature and future research opportunities are delineated

Drivers and Performance Outcomes of Supplier Innovation Generation in Customer-Supplier Relationships: The Role of Power-Dependence

While innovations generated by supply channel relationships, as opposed to individual partners, play an increasingly important role in the success of all supply chain partners, there has been a dearth of research in the literature on how supply chain relationships cultivate the process of such innovation generation. We explore supplier market knowledge acquisition, relationship learning, systems collaboration, and technological uncertainty as antecedents of supplier innovation generation, which is in turn hypothesized to positively affect the relationship performance of the supplier. Furthermore, supplier dependence on the buyer is investigated as a moderator of the effects of such antecedents on supplier innovation generation. Empirical tests, which used a sample of 236 Taiwanese executives, supported most of the hypotheses, and some implications of the results are discussed

The internet as an alternative path to internationalization?

Purpose: While the internet enjoys increasing interest regarding its potential to extend the global reach of firms, especially small and medium‐sized firms (SMEs), little work has been done on the viability of the internet as a new and effective path to internationalization. Specifically, it is unclear how the internet can successfully support export marketing. The purpose of this paper is to examine the drivers and performance outcomes of two patterns of internet use supporting export marketing: the internet as an alternative to a physical presence and the internet as a sales channel. Design/methodology/approach: Data were collected from 115UK‐based SMEs involved in “active online internationalization”. Relationships are examined in a “soft‐modeling” partial least squares (PLS) analysis. Findings: The findings suggest that online channel support positively enhances export performance for SMEs. Yet, the use of the internet as an alternative to a physical market presence does not lead to higher export performance. Specifically, born‐global firms that are relying too much on the internet are prone to fall into the “virtuality trap”. Entrepreneurial firms that use the internet as a sales channel can improve their overall performance, however. Research limitations/implications: This paper provides some empirical evidence of the existence of the notion of the “virtuality trap”. The paper also shows that the internet can serve a valuable complementary role. Traditional exporters are likely to use the internet as a complement to, and thus to support, existing physical operations. Practical implications: Managers should focus on relationship building and on‐site learning, instead of putting too much emphasis on the internet as a substitute for a physical market presence. Originality/value: The authors develop a framework and explore previously untested relationships that suggest the internet may play a complementary role in firm internationalization

Applying configurational theory to build a typology of ethnocentric consumers

Purpose – Individuals showing high consumer ethnocentrism (CE) prefer domestic over foreign-made products and their preferences may contribute to barriers to international market entry. Therefore, how to identify such consumers is an important question. Shankarmahesh’s (2006) review reveals inconsistencies in the literature with regard to CE and its antecedents. To shed theoretical and empirical light on these inconsistencies, the purpose of this paper is to contribute two new perspectives on CE: first, a typology that classifies ethnocentric consumers by the extent to which they support government-controlled protectionism and consumer-controlled protectionism; and second, a configurational (recipe) perspective on the antecedents. Design/methodology/approach – The study applies fuzzy-set qualitative comparative analysis of survey data from 3,859 consumers. The study contrasts the findings with findings using traditional statistical hypotheses testing via multiple regression analysis. Findings – The results reveal several configurations of antecedents that are sufficient for consistently explaining three distinct types of CE. No single antecedent condition is necessary for high CE to occur. Practical implications – The findings help global business strategists in their market entry decisions and in their targeting and segmentation efforts. Originality/value – The authors show the value of asymmetrical thinking about the relationship between CE and its antecedents. The results expand understanding of CE and challenge conventional net-effects thinking about its antecedents

The empirical link between export entry mode diversity and export performance : a contingency- and institutional-based examination

This study examines, for the first time, the critical issue of whether firms ought to adopt various entry modes in their export activities, i.e. whether firms ought to carry-out greater levels of export entry mode diversity, as a route to increase export performance. Underpinned by contingency and institutional theories this research also examines the role of institutional barriers, investment uncertainty, and geographical scope as moderators of the export entry mode diversity-export performance link. Findings suggest that greater export entry mode diversity is beneficial for export performance. Furthermore, higher export entry mode diversity levels are particularly recommended for firms that operate in export environments with higher institutional barriers, and for firms that have greater levels of export geographical scope. Results concerning the moderating role of investment uncertainty on the export entry mode diversity-export performance link are modest, and vary in signal across different levels of export entry mode diversity

Cooperative export channel modes in times of uncertainty, a key to born global firms' survival?

Export firms with theory-driven operation modes are shown to have greater performance. Considering the well-established theories in the field, this study incorporates real options reasoning to highlight how different modes of export operation can create value for the firm. Specifically born globals with limited resources, inevitably operating in markets that might not be close to them may benefit by choosing modes that help them to manage uncertainties and reduce the costs of failure. The result of the survey of 187 Chinese born global exporters shows that firms operating in institutionally distanced markets most benefit from cooperative channels when the investment is irreversible, the environment is perceived as highly competitive, and institutional barriers are high. Cooperative operation is a value-creating mechanism, providing the firm with both options to grow/withdraw, when uncertainty resolves favourably/unfavourably, hence contributing to the survival of the firm

Relationship learning and performance enhancement via advanced information technology: The case of Taiwanese dragon electronics firms

Purpose: There has been growing interest on how emerging country firms can improve collaborative relationships with their international supply chain partners and improve performance outcomes. This paper aims to develop and test a model which emphasizes how advanced information technology and relationship learning can help Taiwanese electronics firms to improve their working relationship with international buyers. Design/methodology/approach: Data were collected from 246 Taiwanese electronics firms which nurture relationships with international buyers. Structural equation modeling was employed to test the interrelationships between key concepts in the proposed conceptual model. Findings: The findings suggest that applied technological innovation, a key IT resource, can enhance relationship learning for suppliers in their dealings with international buyers. This in turn contributes to higher supplier innovativeness and relationship performance. Moreover, applied technological innovation can improve supplier innovativeness directly. Interestingly however, applied technological innovation does not directly contribute to relationship performance. Research limitations/implications: This paper provides empirical evidence on the contribution of applied technological innovation on enhancing relationship learning and innovation in interfirm relationships for Asia‐Pacific dragon electronic firms. Practical implications: Managers should focus on building relationship learning and adopting advanced IT to support joint learning activities in international channel relationships in order to improve relationship outcomes. Originality/value: The paper develops hypotheses and tests a conceptual model which explains the contribution of applied technological innovation and relationship learning on supplier innovativeness and relationship performance