Global Strategy Journal最新文献

{"title":"Leveraging the interplay of digitalization and mobile resources to promote MNE entrepreneurship","authors":"Shaker Zahra,&nbsp;Ram Mudambi","doi":"10.1002/gsj.1522","DOIUrl":"https://doi.org/10.1002/gsj.1522","url":null,"abstract":"<div>\u0000 \u0000 \u0000 <section>\u0000 \u0000 <h3> Research Summary</h3>\u0000 \u0000 <p>Powerful geopolitical, demographic, cultural, and technological forces are reshaping MNEs' markets, compelling them to be entrepreneurial in order to successfully adapt and grow. We argue that MNEs can leverage digital technologies to exploit their resources, especially mobile resources, to fuel and infuse entrepreneurship throughout their operations. By leveraging and exploiting mobile resources, digital technologies make it possible for MNEs to cultivate their entrepreneurial activities to create new knowledge, build valuable organizational capabilities, and develop new businesses. These arguments contribute to ongoing conversations about the growing role of entrepreneurship in MNEs, the value of mobile resources as a source of competitive advantage, the transformative role of digital technologies in the global marketplace, and IB theories on the sources of MNEs' competitive advantage in dynamic markets.</p>\u0000 </section>\u0000 \u0000 <section>\u0000 \u0000 <h3> Managerial Summary</h3>\u0000 \u0000 <div>In today's rapidly changing global business environment, multinational enterprises (MNEs) face unprecedented challenges from geopolitical shifts, demographic changes, cultural evolution, and technological disruption. To thrive amidst these transformations, MNEs must embrace entrepreneurship throughout their global operations. This research demonstrates how MNEs can strategically use digital technologies to unlock the value of their mobile resources—including talent, knowledge, and capabilities that can be deployed across locations—to foster entrepreneurship enterprise-wide. By effectively leveraging these mobile resources through digital platforms, MNEs can:\u0000 <ul>\u0000 \u0000 <li>Generate new knowledge across geographic boundaries</li>\u0000 \u0000 <li>Build distinctive organizational capabilities that competitors cannot easily replicate</li>\u0000 \u0000 <li>Develop innovative business models and ventures that create value in dynamic markets</li>\u0000 </ul>\u0000 </div>\u0000 \u0000 <p>Our findings offer practical guidance for multinational executives seeking to enhance their firms' entrepreneurial capacity in a digital era. By intentionally combining mobile resource deployment with digital enablement, MNEs can create sustainable competitive advantages even as markets continue to evolve rapidly. This approach represents a crucial adaptation strategy for multinational firms navigating today's complex global business landscape.</p>\u0000 </section>\u0000 </div>","PeriodicalId":47563,"journal":{"name":"Global Strategy Journal","volume":"15 2","pages":"289-314"},"PeriodicalIF":5.7,"publicationDate":"2025-04-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143926064","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Resilience in times of war: How Ukrainian exporting SMEs enhance relational factors with foreign partners","authors":"Oksana Kantaruk Pierre,&nbsp;Raluca Mogos Descotes,&nbsp;José Pla-Barber","doi":"10.1002/gsj.1523","DOIUrl":"https://doi.org/10.1002/gsj.1523","url":null,"abstract":"<div>\u0000 \u0000 \u0000 <section>\u0000 \u0000 <h3> Research Summary</h3>\u0000 \u0000 <p>This study explores how relational capital fosters Ukrainian exporters resilience through anticipation, coping, and pre-adaptation during wartime. Motivated by the limited understanding of how SMEs face extreme crises, we conducted 19 in-depth interviews with Ukrainian exporters and seven follow-up interviews a year later. Our findings reveal a gap in risk assessment and contingency planning, underscoring the need for proactive crisis strategies. Communication, mutual commitment, and trust emerge as key relational mechanisms that enable exporters to manage cross-border challenges effectively in high-risk environments. Cooperation serves both as a coping mechanism and a driver of strategic adaptation, enabling firms to adjust business models, enter new markets, and sustain competitiveness despite ongoing conflict. This study highlights the critical role of international partnerships in resilience-building for SMEs.</p>\u0000 </section>\u0000 \u0000 <section>\u0000 \u0000 <h3> Managerial Summary</h3>\u0000 \u0000 <p>This study offers key insights for managing crises in war-affected areas, providing practical guidance for researchers, policymakers, and practitioners. It emphasizes the importance of a structured approach, including anticipation, coping, and adaptation, to enhance resilience and strategic responses during conflicts. Critical to the anticipation stage is integrating risk management strategies with proactive planning and balancing trust with foreign partners, which prepares organizations to address potential challenges effectively. During the coping stage, prioritizing transparent communication and adopting flexible strategies while honoring commitments are crucial for maintaining operational continuity. The pre-adaptation stage focuses on developing long-term strategies and robust partnerships, essential for facilitating strategic transformation. Collectively, these stages form a comprehensive framework for dealing with the complexities of war-induced crises.</p>\u0000 </section>\u0000 </div>","PeriodicalId":47563,"journal":{"name":"Global Strategy Journal","volume":"15 2","pages":"219-244"},"PeriodicalIF":5.7,"publicationDate":"2025-04-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143925941","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"The long-term domestic dominance of the multinational enterprise","authors":"Aleksey Korniychuk,&nbsp;Marcus M. Larsen,&nbsp;Christian G. Asmussen","doi":"10.1002/gsj.1521","DOIUrl":"https://doi.org/10.1002/gsj.1521","url":null,"abstract":"<div>\u0000 \u0000 \u0000 <section>\u0000 \u0000 <h3> Research Summary</h3>\u0000 \u0000 <p>Like all companies, multinational enterprises (MNEs) recombine their activities in search of efficient business solutions. While these ideas have been widely acknowledged in the global strategy literature, there is limited understanding of how internationalization affects the outcomes of such boundedly rational search. In this paper, we develop a computational model of search that allows for an essential property of the MNE—distributiveness of performance across multiple geographies—and show that, in a given market, MNEs can outperform more specialized domestic companies long term. More broadly, our work illustrates that adjusting general theories of bounded rationality to the specifics of global strategy can deepen our understanding of value creation across borders.</p>\u0000 </section>\u0000 \u0000 <section>\u0000 \u0000 <h3> Managerial Summary</h3>\u0000 \u0000 <p>This study shows how MNEs can outperform domestic firms by leveraging their global presence in local markets. While domestic firms have deep local insights, MNEs benefit from their ability to adapt across markets, allowing them to enhance local responsiveness over time without sacrificing global integration. This way, MNEs can better understand local customer needs than domestic competitors. This highlights the value of appointing leaders with international experience for new market entries, as they bring a broader perspective critical to long-term success. For global managers, these insights emphasize global operations as a pathway to strengthening local competitiveness.</p>\u0000 </section>\u0000 </div>","PeriodicalId":47563,"journal":{"name":"Global Strategy Journal","volume":"15 2","pages":"270-288"},"PeriodicalIF":5.7,"publicationDate":"2025-03-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1002/gsj.1521","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143926185","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"The impact of ownership on global strategy: Owner diversity and non-financial objectives","authors":"Alvaro Cuervo-Cazurra,&nbsp;Anna Grosman,&nbsp;Michael J. Mol,&nbsp;Geoffrey Wood","doi":"10.1002/gsj.1520","DOIUrl":"https://doi.org/10.1002/gsj.1520","url":null,"abstract":"<div>\u0000 \u0000 \u0000 <section>\u0000 \u0000 <h3> Research Summary</h3>\u0000 \u0000 <p>In this special issue introduction, we analyze how a firm's international ownership affects its global strategy. We reinterpret the literature by grouping dominant owners into four categories: (1) individuals (entrepreneurs and families), (2) labor (managers and employees), (3) state (national and subnational governments), and (4) institutions (pension funds, mutual funds, hedge funds, private equity, venture capital, and impact investors). We argue that although all seek financial returns from their investments, they differ markedly in their non-financial objectives, resulting in differences in strategies for expanding abroad. We also propose that the home country context modifies the impact of ownership on global strategy, directly by influencing the prevalence of owner types, and indirectly by affecting owners' incentives and constraints in their pursuit of non-financial objectives.</p>\u0000 </section>\u0000 \u0000 <section>\u0000 \u0000 <h3> Managerial Summary</h3>\u0000 \u0000 <p>Although all firms' owners search for financial returns from their investments, differences across dominant owners in their non-financial objectives result in significant diversity in the global strategies of invested firms. We clarify these differences by grouping owners into four categories: (1) individuals (entrepreneurs and families), (2) labor (managers and employees), (3) state (national and subnational governments), and (4) institutions (pension funds, mutual funds, hedge funds, private equity, venture capital, and impact investors). We explain how their specific non-financial objectives influence the global strategies of invested firms. We also discuss how the characteristics of the home country affect both the prevalence of types of owners and owners' strategies. The special issue articles illustrate some of these ideas.</p>\u0000 </section>\u0000 </div>","PeriodicalId":47563,"journal":{"name":"Global Strategy Journal","volume":"15 1","pages":"3-33"},"PeriodicalIF":5.7,"publicationDate":"2025-03-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1002/gsj.1520","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143632759","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Common ownership and competitive dissimilarity: A global perspective on competition and institutional ownership","authors":"Philip J. Steinberg,&nbsp;Jan C. Hennig,&nbsp;Jana Oehmichen,&nbsp;Judith Heigermoser","doi":"10.1002/gsj.1519","DOIUrl":"https://doi.org/10.1002/gsj.1519","url":null,"abstract":"<div>\u0000 \u0000 \u0000 <section>\u0000 \u0000 <h3> Research Summary</h3>\u0000 \u0000 <p>Research highlights that common institutional ownership (an investor owning publicly traded shares in two rival firms) can reduce rivals' incentives to compete. So far, this literature focused on domestic market competition. However, competition also arises in global markets, and common owners invest outside their home countries. We integrate the perspectives of global market competition and cross-national distance into a model of shared principals with rival agents and argue for a positive effect of common ownership on rivals' competitive dissimilarity in global markets. Moreover, we argue that the competitive intensity in joint regions amplifies, and the cross-national distance between common owners and their firms mitigates this effect. We find support for our theorizing using a multi-industry dataset with 1574 of the largest firms worldwide.</p>\u0000 </section>\u0000 \u0000 <section>\u0000 \u0000 <h3> Managerial Summary</h3>\u0000 \u0000 <p>When investors hold shares in two competing companies, it can reduce how aggressively those rivals compete. To avoid direct competition, these companies often adopt divergent strategic actions. Our research shows that this dynamic extends to how competitors behave in international markets. We also identify key boundary conditions to this effect: The effect weakens when competition within shared markets decreases and when the distance between the owned rivals and their common investor increases. For managers of globally operating companies, this highlights the need to consider not just competitors' strategies but also their ownership structure. Overlapping ownership could significantly influence competitive dynamics in global markets by shaping competitors' strategic approaches.</p>\u0000 </section>\u0000 </div>","PeriodicalId":47563,"journal":{"name":"Global Strategy Journal","volume":"15 1","pages":"94-129"},"PeriodicalIF":5.7,"publicationDate":"2025-02-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1002/gsj.1519","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143633013","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Foreign competition and business diversification options","authors":"Netanel Drori,&nbsp;Daniel S. Andrews,&nbsp;Stav Fainshmidt,&nbsp;Le Xu","doi":"10.1002/gsj.1517","DOIUrl":"https://doi.org/10.1002/gsj.1517","url":null,"abstract":"<div>\u0000 \u0000 \u0000 <section>\u0000 \u0000 <h3> Research Summary</h3>\u0000 \u0000 <p>We examine reallocation in a firm's business portfolio amid foreign competition in its primary business. We argue that firms will tend to exit unrelated industries and reallocate resources to related ones, reducing option breadth but increasing the value of narrower options due to synergies that contribute to building defensive moats against encroachment by foreign competition. This sequential process is strengthened among firms with greater absorptive capacity who are especially adept at identifying these changes and reallocation opportunities. Data on 2,582 US firms from 1997 to 2019 provide support for these arguments. Our study advances scholarly understanding of real options under uncertainty. It introduces the option of “flight to nearby places,” demonstrating how firms may seek to maintain competitiveness in the face of foreign competition.</p>\u0000 </section>\u0000 \u0000 <section>\u0000 \u0000 <h3> Managerial Summary</h3>\u0000 \u0000 <p>As firms manage heightened foreign competition in their primary business, research suggests that reallocating resources within corporate portfolios is critical for maintaining competitiveness. In this context, we propose that firms are likely to streamline operations by exiting unrelated industries and reinforcing related ones. This move narrows options but can drive synergies and enhance the efficacy of defensive strategies against foreign competition. Data from 2,582 US firms provide insights for managers, emphasizing the importance of both option breadth and complementarity among options. Considering the challenges of managing increasingly competitive global markets, we show how firms may convert pressures into nearby opportunities to build defensive moats and maintain competitiveness.</p>\u0000 </section>\u0000 </div>","PeriodicalId":47563,"journal":{"name":"Global Strategy Journal","volume":"15 2","pages":"245-269"},"PeriodicalIF":5.7,"publicationDate":"2024-12-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143926182","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Beacons not burdens: Business groups and corporate social performance around the world","authors":"Sorin M. S. Krammer,&nbsp;Vlad-Andrei Porumb,&nbsp;Yasemin Zengin-Karaibrahimoglu,&nbsp;Joel Bothello","doi":"10.1002/gsj.1515","DOIUrl":"https://doi.org/10.1002/gsj.1515","url":null,"abstract":"<div>\u0000 \u0000 \u0000 <section>\u0000 \u0000 <h3> Research Summary</h3>\u0000 \u0000 <p>Prior studies on business groups (BGs) have predominantly focused on the impact of group affiliation on financial performance. In contrast, we argue that BG affiliates will outperform standalone firms in terms of corporate social performance (CSP) and that this effect will be positively moderated by the strength of formal and informal institutions. Moreover, we examine also differences among BGs and hypothesize that diversification and hierarchy of the group will negatively affect the CSP of affiliates. Employing a panel of 4368 firms from 43 countries between 2003 and 2016 and a propensity score matching approach in our regressions, we find robust support for these predictions. Our findings advance two distinct strands of literature on BGs and, respectively, corporate social responsibility.</p>\u0000 </section>\u0000 \u0000 <section>\u0000 \u0000 <h3> Managerial Summary</h3>\u0000 \u0000 <p>BG are a common organizational structure in many countries. Despite this, we still do not know much about them beyond their financial performance. In this study, we focus on examining the impact of BG affiliation on non-financial performance (i.e., CSP) in the light of growing societal grand challenges. Using an international dataset of several thousands of firms, we find out that BG affiliates exhibit superior CSP results compared to non-affiliated firms. These positive effects of affiliation are increased in environments with strong formal and informal institutions but reduced within groups that are more diversified and hierarchical. Our findings showcase the importance of BGs in tackling some of today's grand challenges and provide support for more nuanced approaches to study BGs across countries.</p>\u0000 </section>\u0000 </div>","PeriodicalId":47563,"journal":{"name":"Global Strategy Journal","volume":"14 4","pages":"709-753"},"PeriodicalIF":5.7,"publicationDate":"2024-11-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1002/gsj.1515","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142737470","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Culture, international stakeholders, and crowdfunding","authors":"Douglas J. Cumming,&nbsp;Ahmed Sewaid","doi":"10.1002/gsj.1514","DOIUrl":"https://doi.org/10.1002/gsj.1514","url":null,"abstract":"<div>\u0000 \u0000 \u0000 <section>\u0000 \u0000 <h3> Research Summary</h3>\u0000 \u0000 <p>International crowdfunding platforms present a unique opportunity for foreign entrepreneurs to attract stakeholders, typically from either the entrepreneur's <i>home-country</i> or the platform's <i>host-country</i>. We argue that success in mobilizing these stakeholders is culturally dependent. Specifically, cultural distance from the platform's host country can impede the mobilizing of home-country stakeholders. Conversely, while attracting host-country stakeholders may appear advantageous, these benefits are uncertain and limited for culturally-proximal entrepreneurs. This is because their offerings are seen as less distinct compared to host-country local offerings while introducing additional information asymmetries. Given these dynamics, we theorize that culturally-distant entrepreneurs have better fundraising prospects when attracting host-country backers, while culturally-proximal entrepreneurs are more successful when mobilizing home-country backers. Our analysis of 55,266 foreign projects on Kickstarter supports these arguments.</p>\u0000 </section>\u0000 \u0000 <section>\u0000 \u0000 <h3> Managerial Summary</h3>\u0000 \u0000 <p>This study examines how cultural differences affect the success of entrepreneurs using non-local crowdfunding platforms. We find that entrepreneurs from countries that are culturally distant from the platform's host-country are more successful when they focus on attracting backers from the platform's host-country. In contrast, entrepreneurs from culturally similar countries do better when they mobilize supporters from their home country. For practitioners, this means that understanding cultural distance is key to successful crowdfunding. Entrepreneurs should tailor their outreach strategy based on their cultural distance from the platform's host country. Those from culturally-distant regions should prioritize backers from the platform's country, while those from culturally similar regions should focus on home-country supporters to maximize their fundraising success.</p>\u0000 </section>\u0000 </div>","PeriodicalId":47563,"journal":{"name":"Global Strategy Journal","volume":"15 1","pages":"184-216"},"PeriodicalIF":5.7,"publicationDate":"2024-10-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143632661","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Theorizing about emerging multinationals' cross-border acquisitions","authors":"Mike W. Peng,&nbsp;Joyce C. Wang,&nbsp;En Xie,&nbsp;Sergey Lebedev","doi":"10.1002/gsj.1512","DOIUrl":"https://doi.org/10.1002/gsj.1512","url":null,"abstract":"<div>\u0000 \u0000 \u0000 <section>\u0000 \u0000 <h3> Research Summary</h3>\u0000 \u0000 <p>The emergence of multinational enterprises from emerging economies (emerging multinationals or EMNEs) has resulted in two puzzles: (1) Why do EMNEs often bid higher for targets in developed economies? (2) Why do EMNEs often allow such targets significant autonomy? From a theoretical standpoint, the two puzzles beg the question of whether an integrative answer exists. Extending property rights theory, we conceptualize an EMNE as a collection of assets over which an emerging-economy firm has residual control, gained predominantly through cross-border acquisitions. Leveraging a legitimacy-based view, we suggest that EMNEs suffer from legitimacy deficits. Overall, the key to theorizing about EMNEs' cross-border acquisitions and solving the two puzzles is to appreciate EMNEs' endeavors to simultaneously maximize joint value creation, minimize target incentive loss, and overcome legitimacy deficits.</p>\u0000 </section>\u0000 \u0000 <section>\u0000 \u0000 <h3> Managerial Summary</h3>\u0000 \u0000 <p>Driven by property rights thinking and legitimacy deficits considerations, multinational enterprises from emerging economies (emerging multinationals or EMNEs) often pay higher premiums for and grant significant autonomy to acquisition targets in developed economies. During the pre-acquisition phase, EMNEs need to carefully evaluate targets' value-creation potential and asset complementarity. During the post-acquisition phase, offering autonomy to targets is advisable, if acquisition premiums are high, if pursued assets are knowledge-based, and if target managers and employees as well as other stakeholders (such as host-country governments) have raised major concerns. Although few EMNEs explicitly refer to research on property rights and legitimacy deficits, many of them have acted in a way that is consistent with such theoretical reasoning. Emerging-economy acquirers that follow such reasoning often perform well.</p>\u0000 </section>\u0000 </div>","PeriodicalId":47563,"journal":{"name":"Global Strategy Journal","volume":"14 4","pages":"683-708"},"PeriodicalIF":5.7,"publicationDate":"2024-10-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1002/gsj.1512","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142737543","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Does prior success influence risk-taking in foreign location decisions? A prospect theory perspective","authors":"Kathrin Schwaiger,&nbsp;Petra Hennrich,&nbsp;Jan Hendrik Fisch","doi":"10.1002/gsj.1513","DOIUrl":"https://doi.org/10.1002/gsj.1513","url":null,"abstract":"<div>\u0000 \u0000 \u0000 <section>\u0000 \u0000 <h3> Research Summary</h3>\u0000 \u0000 <p>Research suggests that foreign direct investment decisions can be biased and deviate from economic theory. This study deploys prospect theory to analyze the impact of the success of previous investments on risk-taking in subsequent investment decisions. Our theorizing suggests that prior success influences foreign investors' decisions to take host-country risk, and that this moderating influence on the risk-investment relation is specific to the type of risk. The results of an event-history study of 1259 location decisions support the notion that the success of previous investments encourages investors to enter host countries with high negative or positive risk, whereas it discourages them from entering locations with high mixed risk. The effects are stronger for investment locations that are similar than for those that are dissimilar.</p>\u0000 </section>\u0000 \u0000 <section>\u0000 \u0000 <h3> Managerial Summary</h3>\u0000 \u0000 <p>Regarding the varying risks that investors face in foreign countries, investment decisions may sometimes appear rather confident and sometimes rather cautious. Our study relates these decisions to the success that investors had with similar investments in the past, since research suggests that experiencing gains or losses can influence decision behavior. The results suggest that prior success affects risk-taking in foreign direct investment decisions and comes in contrary forms, depending on the type of risk: prior success leads to overconfident investment decisions in the case of negative and positive risk, whereas it induces overcautious investment decisions in the case of mixed risk. Being aware of these behavioral tendencies can prevent managers from making biased investment decisions.</p>\u0000 </section>\u0000 </div>","PeriodicalId":47563,"journal":{"name":"Global Strategy Journal","volume":"14 4","pages":"800-842"},"PeriodicalIF":5.7,"publicationDate":"2024-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1002/gsj.1513","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142737366","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}