A Tale of Two Concepts : Exploring the Relationship between Firm Performance and Multinationality

Despite being a pivotal topic over the past 50 years, the benefits and costs of internationalization are not well understood. A substantial body of research in international business, strategy, and general management is devoted to understanding firm internationalization and its connection to a firm’s financial performance; however, results are inconclusive. This thesis explores firm performance in relation to internationalization processes and, consequently, a firm’s degree of multinationality. The aim is to critically assess the extant literature, evaluate prevailing underlying assumptions, and investigate the causal direction between the two key concepts: firm performance and multinationality. A sequential, multiphase research approach divides the research process into three consecutive phases – exploratory, confirmatory, and explicatory – allowing for a combination of methods, including a systematic literature review, fixed effects logistic regression on 13 years of unbalanced panel data, curvilinear OLS regression on panel data, and content analysis of pilot case studies. Together, this provides a holistic response to the research question: What role does firm performance play in relation to multinationality? Findings reveal a paradigmatic bias in previous research, where authors propagate the ubiquitous causal assumption that multinationality affects firm performance. Instead, this thesis finds solid statistical support for a reversed causal relationship – firm performance drives multinationality. The theoretical arguments are derived from behavioral theories, including the resource-based view, the internationalization process model, and prospect theory. This thesis bridges organizational-level with individual-level theories, contributing to the discussion on managerial decision-making in the internationalization process

A Tale of Two Concepts : Exploring the Relationship between Firm Performance and Multinationality

Despite being a pivotal topic over the past 50 years, the benefits and costs of internationalization are not well understood. A substantial body of research in international business, strategy, and general management is devoted to understanding firm internationalization and its connection to a firm’s financial performance; however, results are inconclusive. This thesis explores firm performance in relation to internationalization processes and, consequently, a firm’s degree of multinationality. The aim is to critically assess the extant literature, evaluate prevailing underlying assumptions, and investigate the causal direction between the two key concepts: firm performance and multinationality. A sequential, multiphase research approach divides the research process into three consecutive phases – exploratory, confirmatory, and explicatory – allowing for a combination of methods, including a systematic literature review, fixed effects logistic regression on 13 years of unbalanced panel data, curvilinear OLS regression on panel data, and content analysis of pilot case studies. Together, this provides a holistic response to the research question: What role does firm performance play in relation to multinationality? Findings reveal a paradigmatic bias in previous research, where authors propagate the ubiquitous causal assumption that multinationality affects firm performance. Instead, this thesis finds solid statistical support for a reversed causal relationship – firm performance drives multinationality. The theoretical arguments are derived from behavioral theories, including the resource-based view, the internationalization process model, and prospect theory. This thesis bridges organizational-level with individual-level theories, contributing to the discussion on managerial decision-making in the internationalization process

How to Handle an Internal Venture? : The Effect of Relatedness on the Outcomes of Corporate Venturing

This paper uses event history analysis to investigate the effects of relatedness on three different outcomes of corporate venturing, identified as retention, termination, and spin-off. For this purpose, relatedness is defined as the degree to which the venture’s activity matches or overlaps with the parent’s activity. Drawing from literature on relational fit, we argue that highly related ventures would be retained, moderately related ones spun off, and unrelated ones would be probable candidates for termination. However, highly related ventures may be likely to pose internal threat to the parent, and consequently be candidates for termination for political reasons as well. This raises the average level of relatedness of terminated ventures above the average of spin-offs. The empirical findings derived from a sample consisting of 78 ventures launched and developed by a number of companies across the Swedish economy give support to our expectations. The highly related ventures were found to be either terminated or retained, moderately related ones were likely to be spun off, and unrelated ones typically faced termination. This supports our hypothesis that relatedness has an impact on how the internal venture is dealt with. We follow with implications for the practice of corporate venturing management

Ledarskap och motivation inom bemanningsbranschen : Konsultchefers uppfattning av motivationsbehovet hos konsulter

ABSTRAKT Titel: Ledarskap och motivation inom bemanningsbranschen - Konsultchefers uppfattning av motivationsbehovet hos konsulter Nivå: C-uppsats i ämnet företagsekonomi Författare: Christoffer Rönnqvist och Alice Schmuck Handledare: Maria Fregidou Malama Datum: 2012-06-14 Syfte: Genom att vara anställd hos bemanningsföretag befinner man sig i en trepartsrelation som består av en själv, konsultchefen och kundföretaget. Detta innebär att konsultchefer kan ha det svårt att motivera sina konsulter, eftersom de utför sitt arbete på olika platser. Syftet med detta arbete är att identifiera och analysera konsultchefers uppfattning av motivationsbehovet hos sina anställda i bemanningsföretag. Två forskningsfrågor har undersökts: Forskningsfråga #1: Hur uppfattar konsultchefer vikten av inre motivation hos konsulter inom bemanningsbranschen? Forskningsfråga #2: Vilka verktyg använder sig konsultchefer av för att motivera sina konsulter? Metod: Vi genomförde intervjuer med öppna svarsalternativ som kvalitativ metod med en induktiv utgångspunkt för att uppfylla syftet. Efter att empirisk data samlats in, transkriberats och kategoriserats. Empirin redovisades i de identifierade temana: yttre motivation, inre motivation, feedback, leda på distans och gemensamma aktiviteter. Resultat & slutsats: Konsultchefer inser vikten av inre motivation samtidigt som de ser svårigheten att kunna påverka den. De försöker påverka konsulternas inre motivation genom yttre motivationsfaktorer som personliga möten, gemensamma aktiviteter, materiella belöningar och informativa belöningar i form av feedback. Förslag till fortsattforskning: Vi valde att begränsa oss till att undersöka ledarskapets perspektiv i auktoriserade bemanningsföretag med kontor i Uppsala. För att få klarhet i vad som motiverar konsulterna föreslår vi att undersöka både ledarskapets och de anställdas perspektiv. Forskningsområdet kan utökas och frågan kan undersökas om förbättrad feedback leder till bättre resultat för konsulterna. Uppsatsens bidrag: Arbetet sammanfattar viktiga teorier och framför vikten av inre motivation. Det kan vara till nytta till blivande konsulter för att förstå vikten av deras egna inre motivation och drivkraft. Dessutom ger vi en empirisk definition av konsultmässighet vilket underlättar för samhället att förstå vad som krävs av en konsult. Nyckelord: Yttre motivation, Inre motivation, Ledarskap, Feedback, Organizational Behavior Management, Bemanningsföretag.     ABSTRACT Title: Leadership and motivation within Swedish staffing agencies - consultant managers’ perception of the motivational needs of consultants Level: Final assignment for Bachelor Degree in Business Administration Author: Christoffer Rönnqvist and Alice Schmuck Supervisor: Maria Fregidou Malama Date: 2012-06-14 Aim: Being employed by a staffing agency involves a trilateral relationship, consisting of one self, the consultant manager and the client company. Hence, it can be difficult for the consultant manager to motivate its consultants as they conduct their work in different places. Aim of this research paper is to identify and analyze the consultant manager’s perception of motivational needs of their consultants. Two research questions were investigated: Research Question #1: How does the consultant manager perceive the importance of internal motivation of consultants within the staffing industry? Research Question #2: What tools does consultant managers make use of to motivate their consultants? Method: Open-ended interviews as a qualitative method with an inductive basis were carried out for meeting the aim of this paper. The analysis of data followed Bruce L. Berg’s model and the empirical data is reported in the identified themes. Result & Conclusions: Consulting managers recognize the importance of intrinsic motivation and at the same time see the difficulty to affect it. They are thus seeking to influence consultants’ intrinsic motivation by external motivation factors. Suggestions for future research: This research paper is limited to investigate the leadership perspective of authorized staffing agencies with offices in Uppsala. In order to clarify factors that motivate consultants, we propose to investigate both the leadership and employees perspective. The research can be extended and the question if improved feedback leads to better results for the consultants can be investigated. Contribution of the thesis: Key theories concerning motivation are summarized and the importance of internal motivation is emphasized. This study may help prospective consultants to understand the importance of their own intrinsic motivation and drive. Key words: External motivation, internal motivation, leadership, feedback, organizational behavior management, staffing agenc

How to Handle an Internal Venture? : The Effect of Relatedness on the Outcomes of Corporate Venturing

This paper uses event history analysis to investigate the effects of relatedness on three different outcomes of corporate venturing, identified as retention, termination, and spin-off. For this purpose, relatedness is defined as the degree to which the venture’s activity matches or overlaps with the parent’s activity. Drawing from literature on relational fit, we argue that highly related ventures would be retained, moderately related ones spun off, and unrelated ones would be probable candidates for termination. However, highly related ventures may be likely to pose internal threat to the parent, and consequently be candidates for termination for political reasons as well. This raises the average level of relatedness of terminated ventures above the average of spin-offs. The empirical findings derived from a sample consisting of 78 ventures launched and developed by a number of companies across the Swedish economy give support to our expectations. The highly related ventures were found to be either terminated or retained, moderately related ones were likely to be spun off, and unrelated ones typically faced termination. This supports our hypothesis that relatedness has an impact on how the internal venture is dealt with. We follow with implications for the practice of corporate venturing management

Patterns of Inconsistency : A Literature Review of Empirical Studies on the Multinationality–Performance Relationship

Purpose: This study aims to understand the performance implications of when a business internationalizes. Many managers take the performance implications of internationalization for granted. Whether seeking a broader customer base or cost reduction through cross-border outsourcing, the overwhelming belief is that internationalization leads to higher profits. Design/methodology/approach: This paper offers a systematic review, content analysis and cross-tabulation analysis of 115 empirical studies from over 40 major journals in management, strategy and international business between 1977 and 2021. Focusing on research settings, sample characteristics, underlying theoretical approaches, measurements of key variables and moderators influencing the multinationality and performance relationship, this study offers a detailed account of definitions and effects. Findings: The findings of this study suggest a tenuous connection between internationalization and performance. No strain of research literature conclusively identifies a consistent direct path from internationalization to performance. The context specificity of the relationship makes general declarations impossible. Research limitations/implications: Future researchers should recognize that internationalization is a process taking different forms, with no specific dominant form. General declarations are misleading. The focus should be on the process of internationalization rather than on the outcome. Originality/value: This study contributes to the international business literature by exploring reasons for the inconsistent results and lack of consensus. Through a detailed account of definitions and effects, this paper explores the lack of consensus as well as the identified shapes of the relationship

Turning the Tables : The Relationship Between Performance and Multinationality

The abundant research on the multinationality-performance relationship has yet to provide cohesive findings concerning the nature and shape of the relationship. This paper joins a small, but growing body of research considering the effect of performance on multinationality. Drawing on resource-based theory and prospect theory, the authors develop competing hypotheses for the impact of performance on multinationality. Using non-linear ordinary least squares regression on unbalanced panel data for 2066 firm-year observations of Swedish publicly listed firms over 12 years, the authors find strong support for a positive U-shaped relationship. The foremost contribution is that performance drives internationalization, much more than vice versa. The model for the traditional causal direction from multinationality to performance explains less than half the variance, has marginal significance on key variables, and has an illogical outcome. Another contribution is how risk-taking attitudes, in accordance with prospect theory, explain a high level of internationalization when performance is negative. As performance rises towards zero, internationalization drops to an inflection point, where in accordance with resource-based theory, the degree of internationalization begins rising. This debunks the prevalent view that internationalization is contingent upon positive performance and abundant resources

Trumpism, Brexit, Industry 4.0, and COVID-19: What is happening to globalization? : A Review of the Literature on Economic Globalization

I this literature review we provide an overview and sorting of a large number of studies adressing the question of the current changes with respect to economic globalization. </p

Globalization Strategies : Strategic Adaptations and Pathways Ahead for Swedish Multinational Corporations

This report sets out to explore possible adaptations in the strategies of Swedish multinational corporations (MNCs) following changes in economic globalization. Specifically, it investigates the possible shifts and future directions of strategies to the global drivers of technology, politics, and sustainability, and how these drivers may impact the future competitiveness of Swedish firms. Using data from 20 in-depth interviews with CEOs, CFOs, and other executive decision-makers, representing 19 Swedish MNCs, the results suggest this is a major question for both concern and opportunity with regards to the future competitiveness of these firms. Specifically, the report highlights the following main conclusions: A strong global corporate identity coupled with a Swedish moral compass: Swedish MNCs view themselvesas global but with strong local embeddedness. Yet, interestingly, a moral compass with a Swedish flavor suggests a ‘Swedish way’ of conducting business, even in far-away locations. Parallelism in changing value chains: The political risks of being a global firm are evident. The firms areacutely aware of risks associated with disruptions in their value chains, and some firms have responded byconsidering their value chain configurations or are even developing several sets of value chains. This parallelism is deemed to facilitate de-coupling of regions and lower the risks stemming from external shocks. Reshoring to Sweden is not an option: Surprisingly few firms seem to consider reshoring value chain activitiesto Sweden to be an attractive option. This is despite movement in the locational footprint where the firms are abandoning or considering pulling out of markets due to unfavorable conditions relating to political andsustainability issues. The big bet on sustainability: Many firms are positioning their businesses based upon a vision of providing sustainable products and services. The big bet on sustainability offers many opportunities and could propel Swedish MNCs to a strong position on the global market for sustainable products, rendering a price premium. To conclude, the last 18 months have made firms well aware of the strengths and the weaknesses in their strategic orientation. Firm resilience appears as generally high with few firms reporting that the pandemic itself will have significant long-term effects on MNC strategies. Moving forward, Swedish MNCs seem equipped to combine a business strategy of new technology with sustainable solutions. The activity strategy shows indications of becoming increasingly regional, which could prove to be supportive of the often-decentralized strategies adopted by the Swedish MNCs

Ultradeep pyrosequencing of NS3 to predict response to triple therapy with protease inhibitors in previously treated chronic hepatitis C patients.

International audienceDespite the gain in sustained virological responses (SVR) provided by protease inhibitors (PIs), failures still occur. The aim of this study was to determine if a baseline analysis of the NS3 region using ultradeep pyrosequencing (UDPS) can help to predict an SVR. Serum samples from 40 patients with previously nonresponding genotype 1 chronic hepatitis C who were retreated with triple therapy, including a PI, were analyzed. Baseline UDPS of the NS3 gene was performed on plasma and peripheral blood mononuclear cells (PBMC). Mutations conferring resistance to PIs were sought. The overall diversity of the quasispecies was evaluated by calculating the Shannon entropy (SE). Resistance mutations were found in plasma and PBMC but were not discriminating enough to predict an SVR. NS3 quasispecies heterogeneity was significantly lower at baseline in patients achieving an SVR than in those not achieving an SVR (SE of 26.98 ± 16.64 × 10(-3) versus 44.93 ± 19.58 × 10(-3), P = 0.0047). With multivariate analysis, the independent predictors of an SVR were fibrosis of stage F ≤2 (odds ratio [OR], 13.3; 95% confidence interval [CI], 1.25 to 141.096; P < 0.03) and SE below the median (OR, 5.4; 95% CI, 1.22 to 23.87; P < 0.03). More than the presence of minor mutations at the baseline in plasma or in PBMC, the NS3 viral heterogeneity determined by UDPS is an independent factor for an SVR in previously treated patients receiving triple therapy that includes a PI