Determinants of foreign direct investment ownership mode choice: Evidence from Nordic investments in Central and Eastern Europe

This paper addresses the determinants of foreign direct investment (FDI) ownership mode choice of firms in Central and Eastern Europe (CEE) based on three most important theoretical paradigms of IB studies i.e. transaction cost economics, resource based view and institutional theory. The empirical analysis of 720 FDIs made by the firms from all four Nordic countries in CEE region during 1990-2007 revealed that the probability WOS formation was increased by the high R&D intensity of the industry of the investment, low target country risk, large economic size and high economic growth in the target country. The further in-depth analysis revealed that for FDIs made during 1990s, product diversity; while for FDIs made during 2000s, international experience and strength of market conforming values in the target country became significant determinants of ownership mode choice for Nordic FDIs.Dieser Artikel befasst sich mit den Determinanten der Markteintrittsform von ausländischen Direktinvestitionen von Unternehmen in Mittel- und Osteuropa, basierend auf drei zentralen theoretischen Paradigmen, nämlich der Transaktionskostentheorie, dem Ressourcen-basierten Ansatz und der Institutionen-Theorie. Die empirische Analyse von 720 Direktinvestitionen von Unternehmen aus den vier nordischen Ländern in Mittel- und Osteuropa zwischen 1990 und 2007 ergab, dass die Wahrscheinlichkeit der Bildung von Tochtergesellschaften durch die hohe F&E-Intensität der Branche, ein niedriges Risiko der Zielländer, eine große Wirtschaft und ein großes Wirtschaftswachstum der Zielländer steigt. Für ausländische Direktinvestitionen während der 1990er Jahre erwiesen sich die Produktvielfalt und in den 2000er Jahren die internationale Erfahrung und die Stärke von marktkonformen Werten im Zielland für die Markteintrittsform als ausschlaggebend

Moderating influence of product diversification on the international diversification-performance relationship : A meta-analysis

Numerous studies have examined the impact of international diversification on firm performance. However, the literature is characterised by inconsistent findings, suggesting the need for a quantitative review and synthesis of the hypothesised relationships. Using a sample of 263 effect sizes from 187 primary studies between 1974 and 2021, we conduct a meta-analysis to test the relationship between international diversification and firm performance, and the moderating effect of product diversification. The results of our meta-analysis indicate that the relationship between international diversification and firm performance is non-linear inverted U-shaped. Furthermore, we find that performance is higher in firms with low/related product diversity and lower in firms with high/unrelated product diversity, suggesting that the dual-diversification strategy is detrimental to firm performance. Although there is no significant difference in the performance of firms from advanced and emerging economies, the results highlight the importance of intangible assets for diversified firms.© 2021 The Author(s). Published by Elsevier Inc. This is an open access article under the CC BY license (http://creativecommons.org/licenses/by/4.0/).fi=vertaisarvioitu|en=peerReviewed

Managers' Perceptions of the Impact of Cultural Differences on the Process of Internationalization of Polish Companies

A large sector of researchers in the International Business field, along with those in other fields (such as International Marketing and International Management), have dedicated themselves to research involving the reliability, applicability and generalizability of the psychic distance phenomenon.This construct has an influence on theinternationalization of companies. The aim of the article is to present qualitative research results on managers’ perceptions of the importance of one of the psychic distance stimuli, namely cultural differences,in the process of internationalization of companies. In the theoretical section of the article, the definition and operationalization of psychic distance and different stimuli of this construct are described.Particular consideration is dedicated tocultural differences. The second part of the article focuseson the research background.In the third part of the article, the importance of the differences in culture in the process ofinternationalization isevaluated. The article presents the respondents’ opinions on the significance of cultural values and practices, differences in religion and differences in languages in managers’ decisions on internationalization. The authorsfocus on the impact of cultural differences on the choice of directions of foreign expansion, market entry strategies, the amount of foreign expansion markets, the pace of internationalization as well as the value of sales and capital engagement abroad

Expatriates, Rise of Telecommuting and Implications for International Business

International business (IB) travel has long been considered an important aspect of international business management strategies of multinational enterprises (MNEs). Extant literature further recognizes that expatriate managers are an essential cornerstone of MNEs’ global strategies. They play a crucial role in the management of subsidiaries as well as in knowledge transfer of organizational routines and practices. Covid-19 has caused a collapse of the airline industry due to travel restrictions, which have been referred to remain in place in one way or another for the foreseeable future. The issue of international travel has become a daunting problem in relation to Covid-19 pandemic. Many MNEs have been overwhelmed by the unprecedented and severe problems they face in regard to the mobility of their workforce. The fundamental changes in the way the global economy is being run, and firms operate offer profound future research opportunities on labor mobility and IB travel.© 2021 Routledge. This is an Accepted Manuscript of a book chapter published by Routledge COVID-19 and International Business: Change of Era on 21 December 2020, available online: https://doi.org/10.4324/9781003108924fi=vertaisarvioitu|en=peerReviewed

Competitiveness and marketing strategies of foreign companies in Eastern Europe: Empirical evidence from Finnish and Austrian companies

Research on marketing in Central and Eastern Europe (CEE) has been of rising interest since the transition started in 1989. In this paper two major areas relevant for marketing in CEE are being discussed: the competitive situation in the transition countries and the basic competitive marketing tools for penetrating these markets. This study reports findings of a survey inclu-ding 139 Finnish and 97 Austrian companies active in CEE and confirms: Competition in CEE is intensifying but still weaker than in Western markets. The main competitors are other foreign companies. Western companies base their marketing strategies mainly on personal relationships, technical quality of their product, good company image, personal selling, and customer service.Forschungen über das Marketing in Mittel- und Osteuropa (MOE) haben seit Beginn der Transformation 1989 zugenommen. In diesem Artikel werden zwei Bereiche, die für das Marketing in MOE relevant sind, diskutiert: die Wettbewerbssituation in den Transformationsländern und wettbewerbs-orientierte Marketinginstrumente zur Durchdringung dieser Märkte. Die Studie basiert auf einer Befragung von 139 finnischen und 97 österreichischen Unternehmen mit Aktivitäten in MOE und zeigt: Hauptkonkurrenten der befragten Unter-nehmen sind andere ausländische Unternehmen, der Wettbewerb ver-schärft sich ist aber noch schwächer als in westlichen Märkten. Westliche Unternehmen gründen ihre Marketingstrategien hauptsächlich auf gute persönliche Beziehungen, technische Qualität ihrer Produkte, Unternehmens-image, persönlichen Verkauf und Kundenservice

Institutions and Dynamic Capabilities: Theoretical Insights and Research Agenda for Strategic Entrepreneurship.

The current paper aims to comparatively analyze both institutional and dynamic capabilities approaches conceptually in the context of strategic entrepreneurship. We offer a conceptual review, where strengths, as well as limitations of both theoretical approaches, are highlighted. Our review and discussion show that both approaches are subtly intertwined and can complement each other to further understanding of firm’s behavior including strategic entrepreneurship. Institutions provide templates for action and cognition in developing, managing, and utilizing dynamic capabilities in that context. Dynamic capabilities, as enablers of agency, can be expected to play a role in creating, maintaining, bridging, and disrupting institutions. The synthesis of institutional and dynamic capabilities approaches leads to a better understanding of agency, behavior, and structure in the context of strategic entrepreneurship. Finally, we also present a research agenda for strategic entrepreneurship that explores key concepts germane to both institutions and dynamic capabilities

Social media in marketing research : Theoretical bases, methodological aspects, and thematic focus

The widespread use of social media as a marketing tool during the last decade has been responsible for attracting a significant volume of academic research, which, however, can be described as highly fragmented to yield clear directions and insights. We systematically synthesize and critically evaluate extant knowledge of social media marketing extracted from 418 articles published during the period 2009–2021. In doing so, we use an organizing framework focusing on five key areas of social media marketing research, namely, social media as a promotion and selling outlet, social media as a communication and branding channel, social media as a monitoring and intelligence source, social media as a customer relationship management and value cocreation platform, and social media as a general marketing and strategic tool. Within each of these areas, we provide important theoretical, methodological, and thematic insights, as well as future research directions. We also offer useful managerial implications derived from the articles reviewed.© 2022 The Authors. Psychology & Marketing published by Wiley Periodicals LLC. This is an open access article under the terms of the Creative Commons Attribution License, which permits use, distribution and reproduction in any medium, provided the original work is properly cited.fi=vertaisarvioitu|en=peerReviewed

Determinants of equity changes in partial acquisitions of Finnish multinationals in foreign markets

Purpose – When entering foreign markets, multinationals can acquire part of a foreign firm and can increase or decrease their equity stake over time. However, extant studies have mainly focused on equity stake acquired during initial market entry. The paper aims to discuss this issue. Design/methodology/approach – This study fills this gap by using the Uppsala model to analyze six cases of international acquisitions of Finnish multinationals in global markets. Findings – The authors found that firms change their equity stake in partially acquired foreign subsidiaries: when they have learned about the host country and businesses of the partially acquired firms, when they have gained target-specific experience, when they build trust and ensure relationship commitment and finally, when they jointly develop and exploit opportunities. Originality/value – This study is one of the first to apply the Uppsala model to empirically analyze international acquisitions, thus paving the way for behavioral and process-oriented approaches. The study contributes to knowledge of post-entry strategies of multinationals.©2019 Emerald Publishing Limited. This manuscript version is made available under the Creative Commons Attribution–NonCommercial 4.0 International (CC BY–NC 4.0) license, https://creativecommons.org/licenses/by-nc/4.0/fi=vertaisarvioitu|en=peerReviewed

Emerging-market firms’ dynamic capabilities and international performance: The moderating role of institutional development and distance

While extant research has examined the separate influences of dynamic capabilities and institutions on international performance, their interactive role has received limited attention. Therefore, we examine the role of host-country institutional conditions in the relationships between emerging-market firms’ (EMFs) innovation-related dynamic capabilities and their international performance. We use multi-source secondary data and primary data from multiple informants from 254 Turkish international firms to test our framework. The study finds that the linkages between three innovation-related dynamic capabilities (innovativeness, supply-chain agility, and adaptability) and international performance are positively and negatively moderated by institutional development and institutional distance, but that their influences are opposite. These influences demonstrate that host-country institutional conditions shape the link between dynamic capabilities and EMFs’ international performance in a multifaceted and paradoxical fashion