Reverse knowledge transfer in emerging market multinationals: The Indian context

This study examines knowledge acquisitions of Indian multinationals via overseas mergers and acquisitions. Specifically, the paper examines the effects of the perceived subsidiary capability, parent absorptive capacity, and the relevance of the target knowledge on reverse knowledge transfer. Using firm level data from a survey of Indian multinationals (with overseas acquisitions), we find that perceived subsidiary capability, knowledge relevance, and absorptive capacity positively influence reverse knowledge transfer. The results also highlight the moderating role of knowledge relevance and the mediating effects of absorptive capacity

Expatriate utilization, subsidiary knowledge creation and performance: the moderating role of subsidiary strategic context

Little research examines the mechanisms for the relationship between expatriate utilization and subsidiary performance. Building on the knowledge-based view of the firm, we propose a multi-stage mediation model to explain how expatriate staffing promotes subsidiary financial performance. Our results underscore that expatriate utilization has an indirect, mediated effect on subsidiary financial performance through its links with subsidiaries’ knowledge creation and product performance. Adopting a moderated mediation approach, we also find that the indirect relationship between expatriate utilization and subsidiary product performance via subsidiary knowledge creation is strengthened by the context of transnational strategy as a moderating contingency

The professional service firm (PSF) in a globalised economy: A study of the efficiency of securities firms in an emerging market

This study explores the efficiency of securities firms in Turkey and offers conceptual and managerial insights utilizing data envelopment analysis. Through a sample of local and foreign owned securities firms in Turkey, we examine the impact of liabilities of foreignness (LOF) and localness (LOL) upon knowledge intensive firm efficiency in an emerging market economy. We have extended this approach through our consideration of liability associated with market globalness (LOMG). Our findings indicate the importance of size for firm efficiency with bank affiliation and foreign ownership also having positive effects on efficiency. Our study makes a contribution conceptually, methodologically and empirically to a growing literature on emerging economies. We also make a valuable addition to the limited empirical work conducted on the securities industry to date. Finally, through our contextualization of Turkish securities firms as professional services firms (PSFs), our research extends the narrow focus on law and accounting which currently dominates the burgeoning research strand on PSFs

Political Tie Heterogeneity and the Impact of Adverse Shocks on Firm Value

Past research has recognized the contingent value of corporate political ties but largely neglects their heterogeneity. Drawing on the political embeddedness perspective and literature on emerging economy political institutions, we develop hypotheses regarding how political networks comprising managerial and government ownership ties may have different valuation effects in the face of adverse political shocks. Examining stock market responses to an unanticipated, high-profile political event in China, we find a negative valuation effect of managerial ties to municipal government, but an insignificant effect of government ownership ties. Further, companies combining managerial and ownership ties experienced less post-shock reduction in market value than those holding only managerial political ties. These findings shed light on the values of different configurations of corporate political ties and inform firms of potential ways to manage ubiquitous political hazards in emerging economies

Exploring the use of patents in a weak institutional environment: the effects of innovation partnerships, firm ownership, and new management practices

Most observations of the patent behavior of firms are derived from institutional environments in which relatively strong protection can be obtained, even if patents per se are imperfect protection mechanisms. As a result, the determinants of a firm's propensity to patent in a weak appropriability regime are still unclear. This paper advances our current understanding of patent behavior by exploring the effects of manufacturing firms' innovation partnerships, foreign ownership, and adoption of new management practices on the likelihood of patenting. Our analysis is based on the responses of firms to questions in the Brazilian Industrial Survey of Technological Innovation (Pintec). The findings presented here indicate that, despite the weaknesses of the patent system, firms engaged in innovation-oriented collaborations are more likely to patent than firms not involved in these partnerships. Additionally, the results reveal that domestic and foreign firms in a weak institutional environment are similar in their inclination to patent. Finally, the empirical exercise shows that when a patent system is characterized by high levels of formalism and low levels of safeguarding against infringements of property rights firms adopt novel management practices as substitutes for patents

Organizational entrainment and international new ventures from emerging markets

Organizational entrainment captures the temporal fit in the activity cycles between exchange partners. We argue that organizational entrainment between international new ventures (INVs) and their most important international customers positively moderates the relationship between the degree, scope, and speed of internationalization and performance of INVs. We test our hypotheses on INVs from China, India and South Africa. The results support the contingent role of entrainment for degree and scope of internationalization but not for speed. Findings suggest that, when INVs attain temporal fit with their most important international customers, they can implement their strategic goals in international markets more effectively.Organizational entrainment International entrepreneurship Emerging markets New venture performance

Will the new competitive landscape cause your firm's decline? It depends on your mindset

A view of the new competitive landscape shows globalization, rapid technological change, and hypercompetition as conduits leading to either organizational decline or organizational growth. In this article we explain how managers can use four mindsets to convert potential threats posed by these environmental challenges into pathways of prosperity, instead of pathways of decline. A global mindset, or the ability to view the world using a broad perspective, converts globalization threats into growth opportunities by thinking beyond geographic boundaries, valuing integration across borders, and appreciating regional and cultural diversity. An innovation mindset, meaning a mental framework that fosters development and implementation of new ideas, transforms rapid technological change threats into opportunities by valuing constant generation of new ideas and business models, realizing sources of new ideas, and stressing next practices rather than best practices. A virtual mindset, or the ability of managers to hand over their firms' activities to external providers, turns hypercompetition into prospects for growth by facilitating flexibility and responsiveness. Finally, a collaboration mindset, meaning a willingness to engage in business partnerships, converts all three challenges into opportunities by allowing firms to form successful partnerships that can lead to synergy by combining business complementarities.

Learning from international business affiliates: developing resource-based learning capacity through networks and knowledge acquisition

Resource-based learning capacity (RBLC) is an organization's specific resources - both human and tangible - that can be organized to enhance learning processes. This study develops and tests a model that examines the relationship between the learning efforts of focal firms from their international business affiliates (IBAs) - organizations located outside the focal firm's domestic market with whom the focal firm has a relationship - and the focal firms' RBLC. This learning process refers to the transfer of knowledge from the IBA to the focal firm. Results indicate that while learning effectiveness positively influences the RBLC of the focal firm, learning efficiency has a negative impact on RBLC. The IBA's home country network centrality and the tie strength between the focal organization and the IBA are found to influence learning effectiveness positively. Tie strength also enhances learning efficiency. Finally, the findings indicate that the IBA's home country network centrality enhances the strength of the ties between the focal organization and its IBA.Resource-based learning capacity Absorptive capacity Effective learning Efficient learning Network centrality Tie strength

Cross-Border Learning, Technological Turbulence and Firm Performance

Using knowledge-based view (KBV) and contingency arguments, we develop and test a model that investigates the relationship between the effectiveness and efficiency of cross-border knowledge gained from international business affiliates (IBAs) and the focal (recipient) firm’s performance. We argue that both of these dimensions of learning not only have a direct and positive effect on the performance of the focal firm but also a synergistic one. Also, we suggest that the direct and positive effect of both the effectiveness and the efficiency in learning from the IBA on focal firm performance is moderated by the technological turbulence of the context in which the focal firm operates. Results indicate that the effectiveness of learning, although not the efficiency in learning, positively impacts the focal firm’s performance. However, cross-border learning efficiency and effectiveness jointly improve the focal firm’s performance. Results show that the level of technological turbulence attenuates the positive effect of the effectiveness of learning on the focal firm’s performance. In fact, under high technological turbulence conditions, effective learning becomes detrimental to the focal firm’s performance