Three decades of subsidiary exits: Parent firm financial performance and moderators

Coudounaris, Dafnis N.; Orero-Blat, María; Rodríguez-García, María

doi:10.1016/j.jbusres.2020.01.024

Cited by 27 publications

(13 citation statements)

References 122 publications

(180 reference statements)

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“… Journal of Global Operations and Strategic Sourcing Backshoring Scopus 2007–2017 57 articles Systematic review based on the “5Ws and 1H” questions Arte and Larimo ( 2019 ) Taking stock of foreign divestment: Insights and recommendations from three decades of contemporary literature International Business Review Foreign Divestment ABI Inform, EBSCOhost, ProQuest, Wiley Online Library, Science Direct, Emerald and JSTOR 1995–2018 53 articles Literature review—Content analysis Schmid and Morschett ( 2020 ) Decades of research on foreign subsidiary divestment: What do we really know about its antecedents? International Business Review Foreign Divestment Business Source Complete, EconBiz, Emerald, JSTOR, ScienceDirect, Wiley Online Library and Google Scholar 1995–2019 45 articles Meta-analysis Coudounaris et al ( 2020 ) Three decades of subsidiary exits: Parent firm financial performance and moderators Journal of Business Research Foreign Divestment Not mentioned 1989–2018 80 articles Meta-analysis Boffelli and Johansson ( 2020 ) What do we want to know about reshoring? Towards a comprehensive framework based on a meta-synthesis Operations Management Research Backshoring Scopus and Web of Science 2014–2018 41 articles Meta-synthesis Lamba ( 2021 ) Deglobalization: Review and research future agenda using PAMO framework Book chapter De-internationalization Scopus 2004–2021 (p...…”

Section: Previous Review Studies Of De-internationalization Topicsmentioning

confidence: 99%

“…They analyzed the main theories used to build divestment propositions and hypothesis, comparing their arguments and predictions. Coudonaris, Orero-Blat and Rodríguez-Garcia ( 2020 ) and Schmid and Morschett ( 2020 ) performed meta-analyses on subsidiary exit/divestment in order to synthesize the effects found in the original empirical articles. The formers’ study proposed a model of the antecedents influencing the parent firm’s and its subsidiaries’ financial performance, leading to subsidiary divestment.…”

Section: Previous Review Studies Of De-internationalization Topicsmentioning

confidence: 99%

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Setbacks, interruptions and turnarounds in the internationalization process: a bibliometric and literature review of de-internationalization

Fonseca

Rocha

2022

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Section: Previous Review Studies Of De-internationalization Topicsmentioning

confidence: 99%

Section: Previous Review Studies Of De-internationalization Topicsmentioning

confidence: 99%

Setbacks, interruptions and turnarounds in the internationalization process: a bibliometric and literature review of de-internationalization

Fonseca

Rocha

2022

Manag Rev Q

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“…However, the counterarguments to this perspective suggest that a more diverse network of subsidiaries contributes to more novel learning (Narula, 2014), and, if firms can acquire resources that complement their own, a diverse structure should encourage more value creation and a strengthening of the firm’s competitive position (Harrison et al , 1991). Indeed, there is some evidence that product diversification in MNCs does strengthen firm financial performance (Coudounaris et al , 2020).…”

Section: Previous Literature On Internationalization Dimensionsmentioning

confidence: 99%

MNCs’ orchestration capability of the 3Ds and financial performance

Abdelzaher

Torre

Rolf

2022

RIBS

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Purpose In today’s ever-increasing context of volatile, uncertain, complex and ambiguous market conditions, the shifts of countries’ protectionist policies toward inward Foreign Direct Investment (FDI), and an increased gap between headquarters’ (HQ) and subsidiaries’ perspectives on what makes business sense, it has become apparent that challenges toward foreign expansion are becoming more severe and require a multidimensional dynamic approach. The authors draw from orchestration theory, dynamic capabilities literature and previous literature on dimensions of internationalization [specifically, density, geographic distance and degree of diversity of the multinational corporation (MNC) subsidiary network] to argue that firms must enhance their orchestration capability. In doing so, this study aims to highlight the nuances of orchestrating a three-dimensional (3D) conceptualization of MNCs’ international configurations. Design/methodology/approach The authors analyzed the patterns of configurations that are adopted by MNCs. This sample was made up of the international configuration of 78 Fortune 500 MNCs consisting of 3,318 foreign subsidiaries. Furthermore, the authors examined the impact of different configurations of the 3Ds on firm performance using ordinary least squares regression analysis. Findings While the research did indicate that the sample MNCs adopted the sample configurations of the three internationalization dimensions more frequently than others, the authors found that orchestrating MNCs with an international configuration characterized by high density, low geographic distance and low internetwork scope diversity had a positive impact on firm performance. Practical implications While international expansion is often motivated by financial performance or market/resource gains, it is also impacted by the firm’s dynamic capability profile. Thus, as MNCs seek to continue to expand globally, they must assess and, if needed, develop their management team’s orchestration capability, which includes effectively determining how the addition or removal of a subsidiary will impact the density, geographic distance and diversity dynamics of the MNC’s international configuration. Finally, the management team needs to be able to devise plans to respond to the potential challenges associated with each of these dimensions. Originality/value The contribution of this study includes bringing a dynamic capabilities lens to the extant international business literature examining the multinationality and performance relationship by highlighting the importance of an MNC’s process orchestrating capability that is needed for firms to effectively manage increasingly complex subsidiary networks. It also conceptually explains and empirically supports that some configurations are likely to yield higher returns than others, which can act as a guide for firms as they are seeking to expand in more geographically distant as well as diverse sectors. Furthermore, this study highlights the need for a multidimensional simultaneous approach to the examination of internationalization to performance relationship. Finally, it highlights the tradeoffs that MNCs must address across the orchestration of the three internationalization dimensions using a dynamic capabilities theoretical lens that acknowledges the differences in perspective that exist between HQs and subsidiaries.

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“…mergers and acquisitions, international joint ventures, foreign direct investments, divestments (i.e. Coudounaris, 2017;Coudounaris et al, 2020) and other contractual arrangements. A repetition of the study with a more representative sample of UK firms could provide a more developed model as it will be based on a longitudinal study.…”

Section: Research Limitations and Suggested Future Research Directionsmentioning

confidence: 99%

The internationalisation process of UK SMEs: exporting and non-exporting behaviours based on a four forces behavioural model

Coudounaris

2021

RIBS

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Purpose This study aims to develop a new internationalisation model to describe the exporting and non-exporting behaviours of small and medium sized enterprises (SMEs) and then applying it to a sample of UK SMEs. The conceptual model consists of four forces leading to a successful business. Design/methodology/approach The sample is a stratified one taken from KOMPASS directory and focussing on the Greater Manchester area. In total, 250 firms were chosen to be the population of this survey. In total, 110 surveys were received by email i.e. 24 non-exporters and 86 exporters that were fully completed. Findings The four forces of the model include the non-exporting activity, the activity before and after the first export order, differences and similarities between non-exporters and exporters and the regular exporting activity. This model’s findings demonstrate important empirical determinants related to four forces, which, in turn, shape the successful exporting activity. Originality/value The empirical evidence from the study suggests that the major differences between non-exporters and exporters, which include the differences in management perceptions towards exporting, and the differences and similarities of firm and management characteristics, explain only to some degree what constitutes successful exporting behaviour. The model is considered useful for smaller businesses located in the UK. The study highlights the importance of firms before and after the first export order, which provides insights for managers of firms about going through with the first export order rather than withdrawing from this effort. The study reveals the motivations for exporting, the timing, the modes through which firms export, firms’ management characteristics and attitudinal differences between exporters and non-exporters, which are essential for practitioners.

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Three decades of subsidiary exits: Parent firm financial performance and moderators

Cited by 27 publications

References 122 publications

Setbacks, interruptions and turnarounds in the internationalization process: a bibliometric and literature review of de-internationalization

Setbacks, interruptions and turnarounds in the internationalization process: a bibliometric and literature review of de-internationalization

MNCs’ orchestration capability of the 3Ds and financial performance

The internationalisation process of UK SMEs: exporting and non-exporting behaviours based on a four forces behavioural model

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