Asset-Iight strategies and Spanish hotel chains' internationalisation: The moderating effect of family involvement in the firm

Cada vez es más habitual que las cadenas hoteleras opten par estrategias alternativas a la propiedad a la hora de incorporar un nuevo hotel a su cartera en el extranjero, especialmente desde la crisis par el COVID-19. Entre estas estrategias, se encuentran las conocidas como asset-light, siendo los acuerdos de alquiler, gestión y franquicia los más comunes en el sector hotelero. Combinando las ideas de la teoría institucional y de la teoría stewardship, proponemos varias hipótesis sobre la relación entre la distancia institucional y la distancia cultural y la internacionalización empleando estas formas no patrimonialistas que suponen un menor compromiso de recursos. También se analiza cómo puede influir en esa decisión la implicación familiar de las empresas. Los resultados confirman que existe relación entre la distancia institucional y cultural y el régimen en el que las cadenas hoteleras mantienen sus hoteles internacionales, así como que la implicación familiar modera, en parte, dicha relación. Este trabajo aporta nueva evidencia empírica sobre la elección del régimen de gestión de la cartera de hoteles internacionales con datos actuales post-pandemia, demostrando que predominan los modelos asset-light frente a asumir la propiedad. Además, supone una nueva investigación sobre la influencia del carácter familiar en el compromiso internacional de las empresas.Increasingly, hotel chains opt for alternative strategies to ownership when adding a new hotel abroad to their portfolio, especially since the COVID-19's crisis. Among these strategies, are those known as asset-light, with leasing, management and franchise agreements being the most common in the hotel sector. Combining insights from institutional theory and stewardship theory, we propose several hypotheses on the relationship between institutional distance and cultural distance and internationalization using these asset-light forms that involve a lower commitment of resources. We also analyze how the family involvement of the firms may influence this decision. The results confirm that there is a relationship between institutional and cultural distance and the regime in which hotel chains maintain their international hotels, and that family involvement partly moderates this relationship. This paper provides new empirical evidence on the choice of international hotel portfolio management regime with current post-pandemic data, showing that asset light models predominate over assuming ownership. In addition, the paper provides new research on the influence of family character on the international commitment of firms

El papel de la heterogeneidad de las empresas familiares en la relación entre internacionalización y resultados

Many papers have addressed the influence of different characteristics of family businesses on strategic decisions, including those of internationalisation. However, little is known about the relationship between the internationalization of family firms and firm profitability. For this reason, from the socioemotional wealth perspective, in this paper, we focus on the moderating role of some heterogeneous characteristics of family firms on the relationship between internationalisation and business performance. Specifically, we analyse a sample of 76 companies belonging to the Spanish hotel industry, one of the most internationalised sectors and with a large presence of family businesses. The results show that family involvement in ownership and management, as well as generation, moderates the relationship between internationalisation and profitability in the Spanish hotel industry.Muchos trabajos han abordado la influencia de las diferentes características de las empresas familiares en las decisiones estratégicas, incluidas las de internacionalización. Sin embargo, poco se sabe sobre la relación entre la internacionalización de las empresas familiares y la rentabilidad de la empresa. Por ello, desde la perspectiva de la riqueza socioemocional, en este trabajo nos centramos en el papel moderador de algunas características heterogéneas de las empresas familiares sobre la relación entre la internacionalización y los resultados empresariales. En concreto, analizamos una muestra de 76 empresas pertenecientes a la industria hotelera española, uno de los sectores más internacionalizados y con una gran presencia de empresas familiares. Los resultados muestran que la participación de la familia en la propiedad y la gestión, así como la generación, modera la relación entre la internacionalización y la rentabilidad en la industria hotelera española

Chinese investments in Latin America: An analysis of host country determinants

Despite cultural differences and political instability, Latin America is already the second main destination of China’s outward foreign direct investment (OFDI), only behind Asia. Although natural resource-seeking has been the traditional motivation for Chinese firms doing business in Latin America, market-seeking is also becoming an increasingly important driver. The aim of this study is to investigate the influence of host country factors on the location decisions of Chinese multinational enterprises (MNEs) in Latin America. We analyzed a sample of 106 investments carried out by 52 Chinese MNEs in 10 Latin American countries between 2005 and 2017. Our findings indicate that cultural distance negatively influences location choice by Chinese MNEs, while political risk has no influence. Moreover, market-seeking motivations and good diplomatic relations between China and the host country also matter

Distance factors and establishment mode choice of emerging-market multinationals: The moderating effect of administrative distance

Regulations, governance quality, and political structure are important factors that may alter the cost and difficulties associated with doing business in foreign markets. Emerging-market multinationals (EMNEs), with an imperative motivation to go abroad and to be competitive in a global landscape, should consider the impact of administrative distance, namely, the regulatory institutional differences between home and host countries. We suggest that the study of administrative distance is particularly important when addressing investment flows from emerging economies to developed ones, because of the differences between them. Drawing on transaction cost theory and institutional perspective, we analyze the moderating effect of administrative distance on the relationship between other cross-national distance factors—cultural, geographic and economic—and establishment mode choice of EMNEs. From a sample of 357 outward foreign direct investments carried out by Indian firms, our results show that administrative distance moderates the relationship between cultural, geographic and economic distance, and establishment mode decisions

La elección entre filial propia y joint venture: el caso de las multinacionales chinas

Hasta hace poco, China era fundamentalmente conocida como país receptor de inversiones directas en el exterior (IDEs). Sin embargo, una nueva generación de multinacionales chinas se está convirtiendo en protagonista principal de los flujos emisores de IDE a nivel mundial. Por ello, conocer el comportamiento internacional de estas empresas está suscitando cada vez un mayor interés. A partir de una muestra de 189 IDEs efectuada por empresas chinas entre 2002 y 2010, este artículo pretende contribuir al conocimiento de estas nuevas multinacionales mediante el análisis de los determinantes de su elección entre filiales propias y joint ventures

The internationalisation of Indian multinationals: determinants of expansion through acquisitions

In recent years, there is an increasing number of papers focusing on the internationalisation process of Indian multinationals. However, there is still a gap in understanding the determinants of their outward foreign direct investment (FDI) decisions. Thus, this paper analyses the factors influencing the choice between FDI modes by Indian firms. Our findings show that industry technological intensity, host country risk, host market attractiveness, previous international experience and the volume of exports from India to the host country are determining factors of the choice between acquisitions and greenfields

Las multinacionales chinas en España. Situación actual y retos de futuro

Las multinacionales chinas se están convirtiendo en actores principales del nuevo escenario global, y han realizado inversiones significativas en otros países durante los últimos años. Aunque España todavía no es uno de sus destinos principales, se observa una tendencia creciente de los flujos inversores. Este trabajo estudia las características de las inversiones chinas en España con datos a nivel de empresa, analizando el número de inversiones, los principales sectores de destino, la propiedad estatal o privada de la empresa china inversora, la modalidad de inversión utilizada y la región de localización. Asimismo, ofrece una serie de reflexiones sobre la importancia de la inversión china en España y sus perspectivas de cara al futuro

Analysing trademark and social media in the fashion industry: tools that impact performance and internationalization for SMEs

Purpose – This research investigates the role that having a trademark and a social media presence play in the development of international activities as well as their influence on performance for small and medium-sized enterprises (SMEs) operating within the fashion sector of the United Kingdom and Ireland. Design/methodology/approach – Quantitative analysis was carried out by integrating information from several data sources. The hypotheses proposed in the authors’ research model are tested on a sample of 102 SMEs, applying bivariate analysis and variance-based structural equation modelling (partial least squares). Findings – Based on the authors’ empirical evidence, the fashion SMEs could improve their performance through two important marketing tools: registered trademark and social media. On the one hand, SMEs with a registered trademark are more present in the international markets, and it also implies higher performance. On the other hand, there is no significant relationship between SMEs with social media and a presence in international markets. Originality/value – The aim of this paper is to investigate the effect of trademark and social media participation on firms which varies depending on what managers of fashion-related SME companies want to prioritize. Hence, these two marketing tools could be useful for managers to decide on what resources to invest, to register a trademark or to be present in social media, subject to their firms' strategy and objectives

Decision-Specific Experience and Imitative Behaviour in Foreign Ownership Structure Decisions: Evidence from Large Chinese Firms

Drawing on institutional theory, this article examines the importance of decision-specific experience and imitative behaviour of Chinese multinational corporations’ (MNCs) foreign ownership structure decisions. From a sample of 189 outward foreign direct investment (FDI) decisions, the authors find strong evidence to support the hypothesis that Chinese firms tend to choose ownership structures based on prior experience with similar ownership structures. Moreover, Chinese firms tend to follow the ownership structure patterns established by earlier Chinese entrants. This article also investigates the moderating effects of cultural distance and host country-specific experience

Multinacionales chinas en España: determinantes de la elección del modo de establecimiento

Since the beginning of the 21st century, Chinese multinational enterprises (MNEs) are emerging as major global players. Some of them have carried out significant foreign direct investments (FDIs) in developed countries. The main objective of these outward FDIs is to access strategic assets like internationally recognised brands or technological and managerial know-how. As a result, Chinese MNEs are receiving increasing attention in the international management literature. The study of these emerging-market MNEs has generated an interesting epistemological debate among researchers on the applicability of traditional theoretical frameworks. The main question is whether conventional arguments originated in MNEs coming from developed-countries are still valid in the case of developing-country MNEs. While some scholars argue that the analysis of emerging-market MNEs requires new theory, others argue that no new theory is required. Drawing on the transaction cost theory, this paper aims to contribute to this debate by analysing the determining factors of establishment mode choice by Chinese MNEs, namely the choice between acquisition and greenfield investment. From a sample of 88 Spanish subsidiaries of Chinese companies, results show that strategic asset-seeking and a lower growth rate of the Spanish economy are associated with a greater preference for acquisitions. However, industry’s technological intensity turned out to be not significant.Desde el inicio del siglo XXI, las multinacionales chinas se están erigiendo en actores principales del nuevo escenario global. Algunas de ellas han efectuado inversiones importantes en países desarrollados con la finalidad de conseguir activos estratégicos como marca o know-how. Estas multinacionales chinas están recibiendo una creciente atención en la literatura sobre dirección internacional de la empresa. Como consecuencia, se ha suscitado un debate académico sobre si los marcos teóricos convencionales resultan aplicables para explicar su comportamiento internacional o si se necesitan nuevos modelos teóricos que se adapten mejor a sus peculiaridades como multinacionales procedentes de una economía emergente. Nuestro trabajo pretende contribuir a este debate analizando, desde la teoría de los costes de transacción, los factores determinantes del modo de establecimiento utilizado por las empresas chinas, es decir, la elección entre adquisiciones o nuevas filiales propias. A partir de una muestra de 88 empresas radicadas en España con participación china, nuestros resultados indican que la búsqueda de activos estratégicos y una menor tasa de crecimiento de la economía española se asocian con una mayor preferencia por las adquisiciones en detrimento de las nuevas filiales propias. Sin embargo, la intensidad tecnológica del sector no resulta significativa en la elección del modo de establecimiento