A double-edged sword? The moderating effects of control on firm capabilities and institutional distance in explaining foreign affiliate performance

Trąpczyński, Piotr; Gorynia, Marian

doi:10.1016/j.ibusrev.2016.12.009

Cited by 23 publications

(18 citation statements)

References 124 publications

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“…on one hand, Polandmainly due to the membership in the European Union -is considered a developed economy (UNCTAd, 2019), but in other classifications it belongs to emerging markets and developing economies (IMF, 2018). In the studies on internationalisation, this country is usually placed in the latter category (obłój and Wąsowska, 2012; Cuervo-Cazurra, 2012; Karaszewski et al, 2014;Kuzel, 2018), but it is often emphasised that it belongs to so-called mid-range emerging economies (which are positioned between traditional emerging economies and newly developed economies) (Hoskisson et al, 2013;Trąpczyński and Banalieva, 2016;Trąpczyński and Gorynia, 2017). There are, however, other studies that include Poland in the group of developed countries (Yoo and Reimann, 2017).…”

Section: Internal Development Determinantsmentioning

confidence: 99%

Internal Development Determinants of Polish Companies in the Usa: Traditional Industries vs. New Technologies

Kuczmarska

2020

JPM

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Purpose: The purpose of the study was to identify the internal development determinants of Polish companies in the USA, considering the character of their activity, i.e. splitting them into two business sectors-traditional industries and new technologies. Methodology: The research has been conducted by sending by post and e-mail a standardised questionnaire to Polish companies that have undertaken foreign direct investment in the USA. As a result, 19 properly filled survey questionnaires were returned. Findings: The findings of the research indicated that Polish companies see major determinants of development in the USA in internal factors, including applied technology, innovative products/ services, organisation of production processes/services and management skills. Slight differences in the answers of companies representing both groups (traditional industries and new technologies) mainly concerned the strength of impact of particular assets. For companies in the new technologies group, most important growth determinants were, above all, used technology and innovation of products/services, while companies operating in traditional industries found the strongest positive impact in leadership, competences of the management staff and organisation culture. Implications: Both the research results and the very fact of involvement in foreign investment in such competitive environment demonstrate that Polish companies are aware of the strength of their assets. Just as enterprises from the developed countries, they benefit from ownership advantages on foreign markets. These are not, however, cost advantages attributed to companies from the emerging markets in the subject literature, but those perceived as the domain of the companies from the developed countries. Originality: This paper concerns a still insufficiently defined problem of foreign direct investment of companies from mid-range emerging economies in developed countries.

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Section: Internal Development Determinantsmentioning

confidence: 99%

Internal Development Determinants of Polish Companies in the Usa: Traditional Industries vs. New Technologies

Kuczmarska

2020

JPM

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“…Choi and Beamish (2004) have argued that broad control by partners will have a negative impact on activities and operation of IJVs. Trąpczyński and Gorynia (2017) have found that excessive control by parent firms has a negative impact on capabilities of firms and it reduces their learning in foreign markets. In contrast, by focusing their control on some specific activities and loosening control over the rest of the IJV activities, thus exercising narrow control, foreign parent firms give incentives for local partner firms to be involved in and contribute to the innovative activities of the IJVs.…”

Section: Control Extentmentioning

confidence: 99%

“…According to Brenner and Ambos (2013), the control and coordination of geographically and culturally dispersed subsidiaries is one of the most prominent challenges in international management. Previous research (e.g., Inkpen & Currall, 2004;Luo, 2007) has shown that parent control strategies have a direct influence on the learning environment (Makhija & Ganesh, 1997) and therefore the strategy selected may either stimulate or reduce innovation activities (Bates & Khasawneh, 2005;Fang, 2011;Labitzke et al, 2014), firms' capabilities (Trąpczyński & Gorynia, 2017), and performance (Park et al, 2015;Shah, 2015;Mantecon et al, 2016;Trąpczyński & Gorynia, 2017) in IAs. Gomes et al (2016) have reviewed more than 800 articles published in 22 leading journals during a 22-years period, maintaining that factors affecting the operation of alliances, control, and performance have been the key topics in alliance research during the reviewed period.…”

Section: Introductionmentioning

confidence: 99%

Control, innovation and international joint venture performance: The moderating role of internal and external environments

Nguyen

Larimo

Wang

2019

International Business Review

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“…As it has been outlined, organizational capabilities pertain to a number of aspects. In the literature on international business and international entrepreneurship, one can note that different types of resources and capabilities matter for international operations [53,54]. On the one hand, particularly for smaller companies, it is crucial to build networks in foreign markets to overcome entry barriers.…”

Section: The Moderating Effects Of Organizational Capabilities In Legmentioning

confidence: 99%

Foreign Market Adaptation and Performance: The Role of Institutional Distance and Organizational Capabilities

Ciszewska-Mlinarič

Trąpczyński

2019

Sustainability

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The role and significance of adaptation versus standardization for performance in foreign markets has stirred some important debates among the academic community. In this paper, we aim to contribute to the ongoing debate by applying the logic of institutional theory and organizational capabilities to reconsider the relationship between adaptation and foreign market performance. In particular, we argue based on extant theory and our own mixed-method study that while more accentuated differences in the institutional environment reinforce the role of adaptation in achieving legitimacy, the possession of relational and technological capabilities can reduce the relevance of adaptation. The empirical study is based on a sample of 284 firms in the quantitative study and eight firms in the qualitative study. Our findings reveal that adaptation is positively associated with performance in foreign markets. This relationship is also positively moderated by institutional distance, and negatively moderated by relational and technological capabilities.

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A double-edged sword? The moderating effects of control on firm capabilities and institutional distance in explaining foreign affiliate performance

Cited by 23 publications

References 124 publications

Internal Development Determinants of Polish Companies in the Usa: Traditional Industries vs. New Technologies

Internal Development Determinants of Polish Companies in the Usa: Traditional Industries vs. New Technologies

Control, innovation and international joint venture performance: The moderating role of internal and external environments

Foreign Market Adaptation and Performance: The Role of Institutional Distance and Organizational Capabilities

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