Investment motive as a moderator of cultural-distance and relative knowledge relationships with foreign subsidiary ownership structure

Powell, K. Skylar; Lim, Eunah

doi:10.1016/j.jbusres.2016.08.013

Cited by 20 publications

(19 citation statements)

References 67 publications

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“…Partner selection of actors in a business ecosystem Selecting a good partner depends heavily on goal congruence (Doherty, 2009). It is preferable to have similar strategy goals but different competing objectives, and the partner's culture, past experience, size and structure are as important in partner selection as task-related criteria, such as partner's technical knowledge, financial assets, managerial experience and access to markets (Geringer, 1991;Powell and Lim, 2017). Partner selection can generally be determined based on two groups of evaluation criteria.…”

Section: Co-development Of Actors In a Business Ecosystemmentioning

confidence: 99%

Antecedents of co-development and its effect on innovation performance

Tsou

Chen

2019

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Purpose In the contemporary business environment, companies must constantly consider methods to enhance their competitive advantage and create value for their customers. The purpose of this paper is to develop a research model based on a business ecosystem view. Within a business ecosystem, the authors identified the key factors of co-development and the manner in which these factors affect a company’s innovation performance. Design/methodology/approach The theoretical hypotheses are confirmed by partial least squares analysis of survey responses collected from information and communication technology (ICT) and hotel industries in Taiwan. Findings In both industries, the results suggest that a firm’s co-development within its own ecosystem has positive effects on innovation performance. For companies in the ICT industry, collaborative networks and partner selection have significant impacts on the firms’ co-development, but their information technology (IT) capability does not; in contrast, in the hotel industry, partner selection and IT capability have significant impacts on firm co-development, but their collaborative network does not. Originality/value This study contributes to the literature of business ecosystem and co-development by offering a co-development model. As both conceptual and empirical research on this topic is still underdeveloped, this study provides fresh insights into collaboration management and offers significant theoretical and managerial implications from a business ecosystem perspective.

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Section: Co-development Of Actors In a Business Ecosystemmentioning

confidence: 99%

Antecedents of co-development and its effect on innovation performance

Tsou

Chen

2019

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“…For instance, host‐market potential weakens the negative impact of cultural distance on equity participation, as firms can expect higher rents from a foreign market with high potential (Lahiri 2017; Malhotra and Sivakumar 2011). Furthermore, in manufacturing FDI, the positive relationship between cultural distance and a firm opting for majority ownership is strengthened, as the firm's priority is to decrease the cost of coordination and increase production efficiency (Powell & Lim 2017). Also, the directionality of emerging‐market MNEs’ FDI flow moderates the negative impact of institutional distance on their equity ownership stake, suggesting a preference for higher degree of ownership in acquisitions when internationalizing to developed economies for strategic assets (Chikhouni et al.…”

Section: Determinants Of Equity Ownership Decisions: Theoretical Frammentioning

confidence: 99%

Determinants of Equity Ownership Stake in Foreign Entry Decisions: A Systematic Review and Research Agenda

Chhabra

Popli

2021

Int J Management Reviews

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In international business (IB), the level of equity ownership adopted by a firm is an important decision. In this study, we review and synthesize the findings of 105 empirical studies published in prominent IB and management journals on the determinants of equity ownership stake in foreign investment decisions, published between 1991 and 2020. Three primary theoretical lenses ‒ organizational learning perspective, transaction cost economics and institutional perspective – are adopted to catalogue and synthesize the existing literature. We find that, despite the proliferation of IB studies on antecedents of level of equity ownership decisions, many unanswered questions remain. We also find that theoretical fault lines impede progress in this research stream. Based on the literature review, we suggest a research programme that includes accounting for the behavioural view of decision‐making in the organization, shifting from an atomistic perspective to a network perspective of the firm, having a better understanding of the process of internationalization and considering industry heterogeneity as well as the host country's characteristics.

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“…Knowledge transfer is expected to be difficult between people with distant cultural backgrounds (Mäkelä et al, 2012). National cultural distance can be a source of inefficiency for MNCs (Powell and Lim, 2017), challenging the transfer of management practices (Horwitz et al, 2002) and complicating learning processes. Thus, cultural distance can act as a key obstacle to knowledge transfer due to its capacity to lessen the ability to interpret knowledge and to incorporate it into new productive uses.…”

Section: The Moderating Role Of National Cultural Distancementioning

confidence: 99%

Improving subsidiaries' innovation through knowledge inflows from headquarters and peer subsidiaries

Crespo

Lages

Crespo

2020

Journal of International Management

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This study develops a conceptual model that compares the intensity of the impact of knowledge inflows from peer subsidiaries and from the headquarters in the promotion of a focal subsidiary's innovation activities, moderated by socialization mechanisms and national cultural distance. The authors test hypotheses with a dataset comprised of survey data from 202 multinational corporations (MNC) Portuguese subsidiaries. The results indicate that although knowledge inflows from both the headquarters and peer subsidiaries promote the focal subsidiary's innovations capabilities, headquarters' knowledge transfer is a superior and more efficient source of knowledge in the promotion of a subsidiary's new product development. Moreover, socialization mechanisms, both lateral and vertical integrating mechanisms, act as critical instruments that facilitate the incorporation of the incoming knowledge flows into innovation. This study extends the literature on knowledge transfer in MNCs by exploring how two sources of knowledge transfer, the headquarters and peer subsidiaries, influence a focal subsidiary's new product development, investigating socialization mechanisms and national cultural distance moderating effects.

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Investment motive as a moderator of cultural-distance and relative knowledge relationships with foreign subsidiary ownership structure

Cited by 20 publications

References 67 publications

Antecedents of co-development and its effect on innovation performance

Antecedents of co-development and its effect on innovation performance

Determinants of Equity Ownership Stake in Foreign Entry Decisions: A Systematic Review and Research Agenda

Improving subsidiaries' innovation through knowledge inflows from headquarters and peer subsidiaries

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