Are Firm-Specific Advantages Location-Specific Too?

Erramilli, M. Krishna; Agarwal, Sanjeev; Kim, Seong-Soo

doi:10.1057/palgrave.jibs.8490117

Cited by 205 publications

(166 citation statements)

References 32 publications

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“…However, Brouthers and Brouthers (2001) showed that investment risk moderated this relationship such that as risk increases, higher cultural distance is related to preferences for wholly owned entry modes rather than JVs. Also, as cultural distance increased, Japanese firms were more likely to choose greenfields (Anand and Delios, 1997) or wholly owned subsidiaries (Padmanabhan and Cho, 1996) over shared ownership; the tendency to choose licensing over JVs or wholly owned subsidiaries increased (Kim and Hwang, 1992); the tendency to choose a greenfield over an acquisition increased (Harzing, 2002); wholly owned subsidiaries were less preferred than either shared-equity ventures (Barkema and Vermeulen, 1998;Hennart and Larimo, 1998) or technology licensing (Arora and Fosfuri, 2000); the tendency to choose management-service contracts over franchising increased (Erramilli et al, 2002); a greater proportion of incentive-based compensation was used for subsidiary managers of host-country foreign affiliates (Roth and O'Donnell, 1996); equity JV partners were more likely to acquire an equal or majority (rather than minority) share (Pan, 1996;Erramilli et al, 1997); greater structural changes in alliance and contracts took place (Kashlak et al, 1998); firms engaged in less R&D (Richards and De Carolis, 2003); and a greater number of TMTs departed from US companies acquired by foreign firms (Krug and Nigh, 1998).…”

Section: Research Challengesmentioning

confidence: 99%

A quarter century of Culture's Consequences: a review of empirical research incorporating Hofstede's cultural values framework

2006

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Since Geert Hofstede's Culture's Consequences: International Differences in Work-Related Values (Sage, 1980) was published, researchers have utilized Hofstede's cultural values framework in a wide variety of empirical studies. We review 180 studies published in 40 business and psychology journals and two international annual volumes between 1980 and June 2002 to consolidate what is empirically verifiable about Hofstede's cultural values framework. We discuss limitations in the Hofstede-inspired research and make recommendations for researchers who use Hofstede's framework in the future. Journal of International Business Studies (2006) 37, 285–320. doi:10.1057/palgrave.jibs.8400202

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Section: Research Challengesmentioning

confidence: 99%

A quarter century of Culture's Consequences: a review of empirical research incorporating Hofstede's cultural values framework

2006

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“…They also help in the firm's internationalisation (Erramilli, Agarwal, & Kim, 1997;Kotabe, Srinivasan, & Aulakh, 2002).…”

Section: Marketing Resourcesmentioning

confidence: 99%

Cross-border acquisitions by Indian multinationals: Asset exploitation or asset augmentation?

Buckley

Munjal

Enderwick

et al. 2016

International Business Review

103

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This paper examines cross-border acquisitions by Indian multinationals and places them in the context of Emerging Country Multinationals. It tests hypotheses based on internalisation theory and the resource based view to ask if these firms are asset exploiting or asset augmenting in their takeover behaviour. Internal financial and technological resources are found to be important explanatory variables, as is asset seeking; of brands, technology and market access. The home environment in India allows firms to amass profits, to manage in a culturally diverse setting and to develop asset bundling skills. All these factors are significant in determining cross-border acquisitions.

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“…The same holds true for Tsai and Cheng (2002) which used data related to Taiwanese investments in the USA (full ownership vs. JV); these authors additionally dealt with some strategic aspects of the mode choice (market-oriented motives are positively related to full ownership) and the influence of the intensity of competition (no significant impact on the mode decision). Erramilli et al (1997) explaining the choice between four equity-based entry modes ("minority stake" up to "full ownership") based on data for Korean outward FDI confirmed the OLI approach and showed that OL-interactions significantly add to the explanatory power of the model. Agarwal and Ramaswami (1992) analysed the choice between four modes of market entry (domestic market vs. exporting vs. JV vs. wholly-owned subsidiary) based on data for US leasing firms.…”

Section: Choice Of the Governance Modementioning

confidence: 68%

Determinants of Equity-Based and Co-Operative Foreign R&D and Impact on the Parent Firm’s Performance

Berger

Hollenstein

2012

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. The paper complements entry mode research by dealing with the choice of alternative modes of governance in the specific case of foreign R&D and its impact on a parent firm's performance. Firstly, we identify the factors that determine whether a firm locates abroad any R&D activities, and, if it does so, whether it chooses an equity-based rather than a non-equity co-operative mode of governance. The OLI paradigm is used as theoretical background of this analysis. Secondly, we determine the impact of foreign R&D on a parent firm's performance in terms of innovation output and labour productivity, and investigate whether this effect differs among firms using the one or the other governance mode. The study is based on separate estimations for Switzerland and Austria using comparable firm data and model specifications. The two countries are interesting cases as they strongly differ in terms of level and pattern of internationalisation. Terms of use: Documents in EconStor may JEL AbstractThe paper complements entry mode research by dealing with the choice of alternative modes of governance in the specific case of foreign R&D and its impact on a parent firm's performance. Firstly, we identify the factors that determine whether a firm locates abroad any R&D activities, and, if it does so, whether it chooses an equity-based rather than a non-equity co-operative mode of governance. The OLI paradigm is used as theoretical background of this analysis. Secondly, we determine the impact of foreign R&D on a parent firm's performance in terms of innovation output and labour productivity, and investigate whether this effect differs among firms using the one or the other governance mode. The study is based on separate estimations for Switzerland and Austria using comparable firm data and model specifications. The two countries are interesting cases as they strongly differ in terms of level and pattern of internationalisation.Keywords: Internationalisation of R&D; Governance of foreign R&D; International R&D cooperation; Foreign R&D and performance; OLI paradigm and R&D IntroductionOver the last twenty years internationalisation of R&D strongly increased and its pattern changed quite considerably (OECD, 2008). Several studies highlighted that R&D investments at foreign locations are motivated not only by traditional market and cost considerations but, more and more, by the intention to gain access to specific knowledge not available at home (see, among many others, Cantwe...

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Are Firm-Specific Advantages Location-Specific Too?

Cited by 205 publications

References 32 publications

A quarter century of Culture's Consequences: a review of empirical research incorporating Hofstede's cultural values framework

A quarter century of Culture's Consequences: a review of empirical research incorporating Hofstede's cultural values framework

Cross-border acquisitions by Indian multinationals: Asset exploitation or asset augmentation?

Determinants of Equity-Based and Co-Operative Foreign R&D and Impact on the Parent Firm’s Performance

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