{"title":"Attracting Foreign Direct Investment in the Era of Digitally Reshaped International Production. The Primer on the Role of the Investment Policy and Clusters – The Case of Poland","authors":"Marta A. Götz","doi":"10.1080/10669868.2019.1692985","DOIUrl":"https://doi.org/10.1080/10669868.2019.1692985","url":null,"abstract":"Abstract Research abstract: This paper uses an essay format to set out the major issues of attracting FDI in times of digital business transformation. It departs from identifying the changing nature of international production patterns and altering profiles of MNEs due to fourth industrial revolution and discusses the implication of thereof on FDI policy designing and implementing. It diagnoses the likely evolution of such policy aiming at attracting digital FDI and outlines the related challenges. It draws on the case of Poland and argues that humbler, yet quality-oriented and selective approach the policymakers might need to adopt, should focus on providing the right conducive business environment among others by pursuing the smart industrial policy and by leveraging the clusters advantages. Managerial abstract: The changing nature of international production and altering profiles of MNEs due to fourth industrial revolution impact how the FDI policy is designed and implemented. By drawing on the case of Poland it can be argued that humbler, yet quality-oriented and selective approach the policy-makers might need to adopt, should focus on providing the right conducive business environment. This implies pursuing the smart industrial policy and leveraging the clusters advantages. At the same time, it would be crucial to support local companies as partners for such MNEs – i.e. to empower domestic firms and embed foreign firms. Facilitating further cluster developments might prove critical in embedding footloose MNEs and equip local entities to cope with new challenges of digital transformations.","PeriodicalId":44266,"journal":{"name":"Journal of East-West Business","volume":"26 1","pages":"131 - 160"},"PeriodicalIF":1.5,"publicationDate":"2020-04-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/10669868.2019.1692985","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42318374","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Murad Ali, A. Sheikh, I. Ali, Piao Jinji, M. S. Sumbal
{"title":"The moderating effect of supervisor–subordinate guanxi on the relationship between transformational leadership and organizational effectiveness","authors":"Murad Ali, A. Sheikh, I. Ali, Piao Jinji, M. S. Sumbal","doi":"10.1080/10669868.2019.1692987","DOIUrl":"https://doi.org/10.1080/10669868.2019.1692987","url":null,"abstract":"Abstract This study explores the association between transformational leadership and organizational effectiveness, measured in terms of organizational commitment, job satisfaction, and turnover intentions. The study also explores the moderating role of supervisor–subordinate guanxi (s-s guanxi) on the association between transformational leadership and organizational effectiveness. The proposed hypotheses were tested using PLS path modeling and PROCESS macros in SPSS 22.0. Data were collected at two different times from a sample of 222 industrial firms in China. The findings reveal that transformational leadership has a direct, positive, and significant relationship with organizational effectiveness. Furthermore, s-s guanxi has a positive moderating effect on the association between transformational leadership and organizational commitment and between transformational leadership and job satisfaction. However, the moderating effect of s-s guanxi on the association between transformational leadership and turnover intentions is not significant. These findings unearth several theoretical, empirical, and managerial implications and provide the basis for future research.","PeriodicalId":44266,"journal":{"name":"Journal of East-West Business","volume":"26 1","pages":"161 - 192"},"PeriodicalIF":1.5,"publicationDate":"2020-04-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/10669868.2019.1692987","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43832217","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
I. Gurkov, Alexandra Kokorina, Zokirzhon Saidov, O. Balaeva
{"title":"Foreign Direct Investment in a Stagnant Economy: Recent Experience of FDI in Manufacturing Facilities in Russia","authors":"I. Gurkov, Alexandra Kokorina, Zokirzhon Saidov, O. Balaeva","doi":"10.1080/10669868.2019.1689219","DOIUrl":"https://doi.org/10.1080/10669868.2019.1689219","url":null,"abstract":"Abstract This study presents a snapshot of investment projects in manufacturing that were implemented by foreign investors in Russia during 2017–2018. We assemble a unique database of all new plants opened by foreign companies in Russia during 2012–2018 to clarify the distribution of investment projects implemented during 2017–2018 across industries and territories with different tax regimes. We also identify the most interesting individual investment projects, interrelated investment projects, and elements of collective actions. In general, foreign investors in manufacturing demonstrate high ingenuity in discovering and exploiting the remaining emerging growing market segments and promising niches in consumer and professional markets and express significant persistence in realizing investment projects. We also demonstrate the methods applied to decrease the uncertainty of the project costs by establishing partnerships with local foreign- and domestically owned companies and the attempts to correct the government’s decisions and regulatory measures that are uncomfortable for foreign investors.","PeriodicalId":44266,"journal":{"name":"Journal of East-West Business","volume":"26 1","pages":"109 - 130"},"PeriodicalIF":1.5,"publicationDate":"2020-04-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/10669868.2019.1689219","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46742811","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
L. Selivanovskikh, M. Latukha, Ekaterina A. Mitskevich, Sergey Pitinov
{"title":"Knowledge Management Practices as a Source of a Firm’s Potential and Realized Absorptive Capacity","authors":"L. Selivanovskikh, M. Latukha, Ekaterina A. Mitskevich, Sergey Pitinov","doi":"10.1080/10669868.2020.1716129","DOIUrl":"https://doi.org/10.1080/10669868.2020.1716129","url":null,"abstract":"Abstract This paper aims to assess the connections between knowledge management practices and a firm’s potential and realized absorptive capacities. We use hierarchical multiple regression to test our theoretical framework using survey data collected from 94 Russian firms. By critically reviewing the antecedents of particular absorptive capacity subsets at the managerial, intra-organizational and inter-organizational levels, our study reveals the key knowledge management practices—work organization, information technologies, learning mechanisms, training and development and strategic management of knowledge—that enhance a firm’s ability to acquire and assimilate knowledge (potential absorptive capacity) and to transform and exploit knowledge (realized absorptive capacity).","PeriodicalId":44266,"journal":{"name":"Journal of East-West Business","volume":"26 1","pages":"293 - 325"},"PeriodicalIF":1.5,"publicationDate":"2020-01-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/10669868.2020.1716129","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47294407","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Export Promotion Programs: Differences between Advanced and Emerging Economies","authors":"Joana Ribeiro, Adelaide Figueiredo, Rosa Forte","doi":"10.1080/10669868.2019.1704338","DOIUrl":"https://doi.org/10.1080/10669868.2019.1704338","url":null,"abstract":"Abstract This paper compares the export promotion system of advanced and emerging economies in fifty countries. Results show that advanced economies offer, on average, more complete export promotion system, i.e. a greater variety of Export Promotion Programs (EPPs) than emerging economies. Advanced countries offer more financial support, informational services, facilitating activities and education and training services. The specific services that contribute most to these differences are also identified, which is important for national export promotion agencies and policy makers to upgrade their offer to firms in order for them to be better prepared for international trade interactions, especially emerging economies.","PeriodicalId":44266,"journal":{"name":"Journal of East-West Business","volume":"26 1","pages":"213 - 234"},"PeriodicalIF":1.5,"publicationDate":"2020-01-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/10669868.2019.1704338","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41916477","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
D. Manolopoulos, Aristides Bitzenis, Ekrem Tatoğlu
{"title":"The Impact of Governance Quality on Subsidiaries’ Performance: A Survey Analysis from Turkey","authors":"D. Manolopoulos, Aristides Bitzenis, Ekrem Tatoğlu","doi":"10.1080/10669868.2019.1708838","DOIUrl":"https://doi.org/10.1080/10669868.2019.1708838","url":null,"abstract":"Abstract We employ the quality of governance to study the impact of local institutional context on foreign subsidiaries’ performance. We propose and empirically document that local institutional quality has growth-enhancing effects on subsidiary growth. More specifically, we show that political stability, government effectiveness, regulatory quality, and rule of low are positively and significantly related to subsidiaries’ output. Our findings suggest that, apart from resources and market considerations, institutional constructs should be included as influential predictors in the general models investigating subsidiary performance.","PeriodicalId":44266,"journal":{"name":"Journal of East-West Business","volume":"26 1","pages":"269 - 292"},"PeriodicalIF":1.5,"publicationDate":"2020-01-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/10669868.2019.1708838","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47781686","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"From New Emerging to New Emerging Markets Stuck in between Opportunity and Risk: Internationalization of Turkish Firms in Romania","authors":"G. Yılmaz, Amjad Hadjikhani, A. Bengtson","doi":"10.1080/10669868.2019.1708837","DOIUrl":"https://doi.org/10.1080/10669868.2019.1708837","url":null,"abstract":"Abstract The focus of this paper is to study how MNCs from new emerging markets manage the opportunity development in other new emerging markets. The aim is to propose a theoretical frame based on business network theory holding the concepts of opportunity development, risk, knowledge, and commitment used to analyze the Turkish firm’s behavior in Romania. With the infusion of risk tolerance concept, the study contributes new knowledge to the internationalization model and aids understanding of how new MNCs develop opportunities. It enriches network theory as it unfolds the role of an actor’s risk perception and the role of financial resources.","PeriodicalId":44266,"journal":{"name":"Journal of East-West Business","volume":"26 1","pages":"235 - 268"},"PeriodicalIF":1.5,"publicationDate":"2020-01-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/10669868.2019.1708837","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47040989","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Bribery in International Business in European Union Countries: Patterns and Explanations","authors":"Rajib N. Sanyal, Subarna K. Samanta","doi":"10.1080/10669868.2019.1704337","DOIUrl":"https://doi.org/10.1080/10669868.2019.1704337","url":null,"abstract":"Abstract Corruption across European Union member countries varies significantly. Cluster analysis groups these countries into four categories. Regression analysis using Corruption Perception Index as a measure of corruption and independent variables—nature of democracy, human development index, gross domestic product, per capita income, years in the Union, and Euro currency membership—indicates that least corrupt countries are “full” democracies, where civil liberties are respected and reinforced by a political culture that includes an independent judiciary and media. Bribe-taking is significantly higher in “flawed” democracies where the political culture is underdeveloped, participation in politics is low and there are governance issues.","PeriodicalId":44266,"journal":{"name":"Journal of East-West Business","volume":"26 1","pages":"193 - 212"},"PeriodicalIF":1.5,"publicationDate":"2020-01-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/10669868.2019.1704337","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48984768","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Do Free Trade Agreements Increase Australian Trade: An Application of Poisson Pseudo Maximum Likelihood Estimator?","authors":"K. P. Timsina, R. Culas","doi":"10.1080/10669868.2019.1685056","DOIUrl":"https://doi.org/10.1080/10669868.2019.1685056","url":null,"abstract":"Abstract This article examines the effects of Australia's free trade agreements on trade creation and export diversion of the total as well as sectoral trade. The empirical analysis implemented through Poisson pseudo maximum likelihood estimator with time and country-specific effects. Results showed the standard gravity variables are highly significant with the expected signs. Overall, the trade creation effects were greater than intra-block export diversion effects of FTAs on Australia’s total trade. The trade creation effects of FTAs on the agricultural sector seems higher than the nonagricultural sector in Australia after deducting intra-block export diversion effects in the respective sectors.","PeriodicalId":44266,"journal":{"name":"Journal of East-West Business","volume":"26 1","pages":"56 - 80"},"PeriodicalIF":1.5,"publicationDate":"2020-01-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/10669868.2019.1685056","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44513710","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Olena Oliynyk-Dunn, M. Wasilewski, S. Kvasha, V. Adamenko
{"title":"Financial system development and financing patterns of firms: Evidence from Ukraine*","authors":"Olena Oliynyk-Dunn, M. Wasilewski, S. Kvasha, V. Adamenko","doi":"10.1080/10669868.2019.1630045","DOIUrl":"https://doi.org/10.1080/10669868.2019.1630045","url":null,"abstract":"Abstract We examined the financial system development of Ukraine from 2010 to 2016 using integral indicator. In addition, we explored the effect of the financial system development on the financing of firms in Ukraine. The results of the study displayed a negative tendency in the development of the Ukrainian financial system from 2010 to 2016. The regression model revealed that the integral indicator of the financial system’s development is substantially interconnected with the average rate of hryvnia to the US dollar. The results of the paper showed that the financial structure of Ukrainian firms changed significantly during the analyzed period. The share of external financing rose extremely not due to an increase in bank loans but due to informal sources. Despite the general negative changes in the financial system development and financing patterns, the study did not find arguments to support the hypothesis of the existence of a strong statistical relationship between them. Instead, we identified additional significant sources of financing for firms that are not related to the development of the financial system and those that do not meet traditional notions of financing patterns.","PeriodicalId":44266,"journal":{"name":"Journal of East-West Business","volume":"26 1","pages":"1 - 16"},"PeriodicalIF":1.5,"publicationDate":"2020-01-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/10669868.2019.1630045","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48003788","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}