International operations strategies: effects on firm performanceand the influence of institutional distance

The focus of this dissertation is an analysis of business internationalization strategies. Specifically, the main purpose of this research is to analyse the determinants and implications of different international operations strategies. On the one hand, it focuses on studying determining factors in entry mode choice, particularly how certain institutional factors can affect this kind of decision making. On the other hand, it features an analysis of the impact of different international operations strategies on different business results, such as sales growth and propensity for innovation.Presidente: Zulima Fernández; Vocal: José Pla; Secretaria: Álvaro Cuerv

The effect of the magnitude and direction of institutional distance on the choice of international entry modes

This paper analyzes the relation between institutional regulative distance and the choice of international entry mode. The study contributes to existing literature by considering the relative positions of the origin and destination countries on this relation, examining the possibility that institutional distance may exert an asymmetric effect. The results, using a database of European firms and multilevel analysis techniques, indicate that entry in countries with lower levels of regulatory development than that of the origin is related to modes that require a lower resource commitment. Conversely, entry in countries with higher levels of regulatory development is related to higher resource commitment modes. These findings suggest that the direction of institutional distance is important for the choice of international entry mode.An earlier version of this paper was awarded with the SMG Copenhagen Prize 2011 for the best paper submitted to the EIBA-conference by a young scholar. This study has been partially supported by financial aid from the Spanish Ministries of Economy and Competitiveness, with the Project ECO2012-36160, and Education, with the FPU program scholarship AP2010-1092.Publicad

Inward-outward connections and their impact on firm growth

Firms can internationalize via two types of operations: inward (related to international supply operations) and outward (related to serving or selling in foreign markets). This paper analyzes variations in growth for firms that adopt different international strategies: those that perform only one type of international operation, and those that undertake both types simultaneously. The study starts from the premise that connections exist between inward and outward operations, connections that give access to related and diverse knowledge. Based on a sample of European SMEs from-different sectors, the empirical findings indicate that undertaking inward and outward operations simultaneously exerts a greater positive effect on turnover growth than performing just one type of international operation. This simultaneous effect is significantly higher when these operations take place in the same foreign country. The findings provide support for the idea that the acquisition-of country-specific knowledge allows firms to boost sales growth.The authors would like to thank the editor and the referees of this paper for their truthful comments and suggestions. This study has been partially supported by financial aid from the Spanish Ministry of Economy and Competitiveness, with the Project ECO2012-36160, and Education, with the FPU program scholarship AP2010-1092

Entrepreneurial intention of engineering students: the role of social norms and entrepreneurial self-efficacy

This article belongs to the Special Issue Business, Management, Entrepreneurship and Innovation for Sustainable Development.This paper examines the impact of entrepreneurial education on intention to undertake entrepreneurial activity in the future. The study is based on a sample of 208 engineering students. Specifically, we explore the contingent effect of social norms on the relationship between entrepreneurial education and intention to undertake entrepreneurial activity, as well as the role ofsocial norms on the association between entrepreneurial self-efficacy and entrepreneurial intention. We utilize a comprehensive questionnaire distributed among engineering students. Our findings indicate that entrepreneurial education is positively associated with the intention to undertake entrepreneurial activity, in addition to demonstrating a positive moderation effect role of social norms on the relationship between entrepreneurial self-effcacy and entrepreneurial intention. The study provides empirical support to devise new educational initiatives that can further support students and young entrepreneurs in their current or future entrepreneurial projects.This study has been partially supported by financial aid from the Spanish Ministry of Economy and Competitiveness (Grant# ECO2015-67296-R, MINECO/FEDER) and from the Community of Madrid and European Social Fund (Grant# CM S2015/HUM-3417-INNCOMCON). The APC was founded by University Carlos III of Madrid

The asymmetric effect of institutional distance on international location: family versus nonfamily firms

Special issue: Family Firms and Family Governed Multinationals in the Global Economy.This study examines international location choice by considering the potential effects of institutional distance on the decision comparing family and nonfamily firms. We argue that the magnitude and direction of institutional distance matter and that institutional distance has an asymmetric effect on location choice. However, we argue that family involvement has a moderating effect on this relationship because family firms manage institutional distance differently than nonfamily counterparts. Our results, using a sample of Italian firms (2000-2013), reveal that firms are more likely to choose locations for which the positive institutional distance is greater. Additionally, when compared to nonfamily firms, family firms are more likely to choose locations with greater negative institutional distance and less likely to enter countries with greater positive institutional distance.Community of Madrid and European Social Fund, Grant/Award number: CM S2015/HUM-3417-INNCOMCON; Spanish Ministry of Economy and Competitiveness, Grant/Award number: ECO2015-67296-R

International and domestic external knowledge in the innovation performance of firms from transition economies: The role of institutions

In this study, we analyze how the acquisition of domestic and international external knowledge contributes to the innovation performance of firms in transition economies and how the institutional conditions of the home country may affect these relations. We test our hypotheses via the responses of 645 firms from 18 Central and Eastern European countries. Our findings show that both external knowledge sources—domestic and international— contribute positively to the number of new products in transition economies. Our results also indicate that a country’s governance imperfections positively moderate the relations between both domestic and international external knowledge and the number of new products. Additionally, our findings highlight that the benefits of international external knowledge for product innovation are greater in contexts with weaker institutional conditions than in environments with stronger institutional conditions. In contrast, the benefits of domestic external knowledge for product innovation do not vary substantially between scenarios with stronger institutional conditions and those with weaker ones. These findings lead us to conclude that the institutional conditions of transition economies moderate the relation between domestic and international external knowledge and innovation performance differently, with international external knowledge proving particularly valuable for product innovation when these conditions are weak.This project was partially funded by the Government Research Agency of Spanish Ministry of Science and Innovation (PID2019–106874 GB-I00/AEI/10.13039/501100011033). This work is developed with the support of Madrid Government (Comunidad de Madrid-Spain) with the project Excellence of University Professors (EPUC3M20) in the context of the V PRICIT

International sourcing and the productivity of SMEs in transition countries: Formal and informal "region effects" and the communist footprint

We study how SMEs in transition countries can boost productivity by sourcing inputs from regions with which they share formal institutional links (the European Union) or informal links (the former communist bloc). Additionally, we discuss how the length of the communist footprint may modify these productivity gains. Using a sample of SMEs located in Eastern Europe, we find a positive relation between firm productivity and inputs from regions with formal and informal institutional links. We also find that this positive relation is weaker for firms with longer communist footprints that source inputs from EU countries.We thank the Associate Editor, Professor Debmalya Mukherjee, and the two anonymous reviewers for their helpful comments and suggestions. The manuscript has also benefited from the comments by participants and reviewers of the 46th EIBA Annual Conference on an earlier version of this paper. This project was funded by the Government Research Agency of Spanish Ministry of Science and Innovation (PID2019-106874GB-I00/AEI/10.13039/501100011033). This work is developed with the support of Madrid Government (Comunidad de Madrid-Spain) with the project Excellence of University Professors (EPUC3M20) in the context of the V PRICIT (Regional Programme of Research and Technological Innovation). All authors have contributed equally to this paper

Home country institutions and exports of firms in transition economies: Does innovation matter?

We draw on institutional theory and the resource-based view to analyze the relation between home-country governance imperfections and the export intensity of firms in transition economies, including an examination of the moderating role of innovation. We propose that greater governance imperfections result in lower export intensity and that innovation mitigates the constraints of operating with weak home-country institutions. Analyses of panel data from the Business Environment and Enterprise Performance Survey (BEEPS) on firms from transition economies provide support for our arguments. Our findings allow us to conclude that although firms from transition economies face difficulties to export due to the regulatory constraints of their home countries, a strategy based on innovation represents a viable way of overcoming these limitations.We thank the Associate Editor, Roberto Vassolo, the two anonymous reviewers and Grigorios Asimakopoulos for their helpful comments and suggestions. This project was partially funded by the Government Research Agency of Spanish Ministry of Science and Innovation (PID2019-106874 GB-I00/AEI/10.13039/501100011033). This work is developed with the support of Madrid Government (Comunidad de Madrid-Spain) with the project Excellence of University Professors (EPUC3M20) in the context of the V PRICIT. Authors appear in alphabetical order.Publicad