Population Firm Interaction and the Dynamics of Assimilation Gap

The paper shows that the interaction between population and firm knowledge produces a non-monotonic change in the assimilation gap. The assimilation gap follows a convex curve experiencing an upward slope driven by imitation and the downward slope by knowledge spillovers. Changes in the characteristics of innovation shift its peak across time. The relative advantage and compatibility shift the peak towards the left and the complexity shifts it to the right. The model is tested in a simulated environment and offers insights into the differences in temporal trajectories of the various adopter groups

Human and organizational responses to extreme threats: a comparative developmental approach

Purpose: The proposed theoretical model offers a systematic approach to synthesize the fragmented research on organizational crisis, disasters and extreme events. Design/methodology/approach: This paper offers a theoretical model of organizational responses to extreme threats. Findings: The paper explains that organizations choose between hypervigilance (freeze), exit (flight), growth (fight) and dormancy (fright) when faced with extreme threats. The authors explain how the choice between these responses are informed by the interplay between slack and routines. Research limitations/implications: The study’s theoretical model contributes by explaining the nature of organizational responses to extreme threats and how the two underlying mechanisms, slack and routines, determine heterogeneity between organizations. Practical implications: The authors advance four key managerial considerations: the need to distinguish between discrete and chronic threats, the critical role of hypervigilance in the face of extreme threats, the distinction between resources and routines during threat mitigation, and the recognition that organizational exit may sometimes be the most effective means for survival. Originality/value: The novelty of this paper pertains to the authors’ use of the comparative developmental approach to incorporate insights from the study of individual responses to life-threatening events to explain organizational responses to extreme threats

Why and How Might the Modern MNE Respond Strategically to Violent Conflict: A Commentary

In another commentary on the Oetzel and Getz (2012) article – “Why and how might firms respond strategically to violent conflict” -, the author zooms in on the strategies of MNEs to reduce conflict risk. This is the core idea behind the ‘peace through commerce’ thesis. The strategic risk management initiatives described in the chapter correspond mainly with MNE non-market strategies and include: (1) indirect and collaborative responses such as cooperating with non-governmental organizations (NGOs); (2) indirect and unilateral responses such as donating resources; (3) direct and collaborative responses such as mediation interactions between parties to the conflict; and (4) direct and unilateral responses such as speaking out publicly against the acts of violence. Importantly, since conflict weakens the institutions that restrict discretionary actions by the government and reduce the transparency of transactions, some MNEs are also expected to fall in the category of “conflict-profiting” firms

Unique implications of crises and disruptions for international business : how established MNEs are exposed to crises and mitigate their effects

Research in international business is increasingly concerned with the implications of crises and disruptions for the MNE. Environmental crises and disruptions come in various forms: economic recessions, disease outbreaks, as well as terrorist attacks – yet a common theme amongst them is that they are often difficult to predict, cannot be fully avoided by firms, and can become more and more costly over time. The Introduction to this collection series on crises and disruptions in international business classifies in a stylized way the unique MNE vulnerabilities and responses to crises and disruptions. The editors explain that MNEs are likely to be different in their responses to crises and disruptions due to their exposure to diverse markets and institutional environments. The introduction highlights the implications of crises and disruptions for MNEs in terms of higher exposures to potential threats, but also the (potentially) greater capabilities to mitigate such threats relative to domestic firms. This introductory chapter concludes with a summary of each the chapters showcased in this JIBS collections series

Crises and disruptions in international business : how multinational enterprises respond to crises

Crises and disruptions can lead to important changes in economic, social and institutional environments. This collection of influential JIBS articles and original commentaries highlights that MNEs are affected by, and respond to, crises and disruptions differently than domestic firms due to their geographically dispersed operations and wider range of experiences from being active in diverse environments. MNEs can exhibit greater flexibility to ‘avoid’ locations characterised by crises and disruptions, and when affected, they can deploy a more refined set of responses relative to domestic firms. Each article is accompanied by a new editorial piece, bringing the research right up to date and reflecting on the impact of the article today. The book offers an integrated perspective on the antecedents, outcomes and potential opportunities associated with a variety of crises and disruptions such as disease outbreaks, natural disasters, climate change and political unrest. An ideal resource for students and researchers, this book offers new perspectives, policy and practical recommendations as well as a discussion of future trends