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International experience and imitation of location choices: The role of experience interpretation and assessment and its board-level microfoundations 区位选择的国际经验与模仿:经验解释与评估的作用及其董事会层面的微观基础
IF 7.6 2区 管理学
Global Strategy Journal Pub Date : 2022-03-24 DOI: 10.1002/gsj.1428
Ettore Spadafora, Claudio Giachetti, Makafui Kwame Kumodzie-Dussey, B. Elango
{"title":"International experience and imitation of location choices: The role of experience interpretation and assessment and its board-level microfoundations","authors":"Ettore Spadafora,&nbsp;Claudio Giachetti,&nbsp;Makafui Kwame Kumodzie-Dussey,&nbsp;B. Elango","doi":"10.1002/gsj.1428","DOIUrl":"10.1002/gsj.1428","url":null,"abstract":"<div>\u0000 \u0000 \u0000 <section>\u0000 \u0000 <h3> Research summary</h3>\u0000 \u0000 <p>Drawing on the information-based imitation and information-processing perspectives, we examine how experience interpretation and assessment—and in particular its board-level microfoundations—affects the relationship between a firm's international experience and its decision to imitate the market leader's location choices. Our results show that the negative relationship between international experience and imitation of location choices is positively moderated by board turnover, board age, and board equity ownership but not influenced by board gender diversity. These findings advance our understanding of the interplay between information-based motives for imitation and firms' information processing and organizational learning. Specifically, we contribute to research on the effect of international experience on firms' mimetic behavior by pointing out the relevance of experience interpretation and assessment from a microfoundations perspective.</p>\u0000 </section>\u0000 \u0000 <section>\u0000 \u0000 <h3> Managerial summary</h3>\u0000 \u0000 <p>Our study provides indications for executives attempting to predict competitors' global strategy. When it comes to location choices, we find that companies with less international experience are more likely to follow the market leader, while those internationally experienced are more likely to follow their own path. Moreover, lower board turnover, relatively younger directors, and smaller equity ownership can favor the articulation and exploitation of the lessons offered by prior international experiences, thus further reducing the company's inclination to imitate the leader's location choices. Firms seeking an independent path toward internationalization can therefore use corporate governance—and in particular board-level factors—to enhance their ability to interpret and assess their international experience.</p>\u0000 </section>\u0000 </div>","PeriodicalId":47563,"journal":{"name":"Global Strategy Journal","volume":"13 1","pages":"111-146"},"PeriodicalIF":7.6,"publicationDate":"2022-03-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46813922","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}
引用次数: 3
Navigating the paradox of global scaling 驾驭全球规模的悖论
IF 7.6 2区 管理学
Global Strategy Journal Pub Date : 2022-03-18 DOI: 10.1002/gsj.1435
Esther Tippmann, Sinéad Monaghan, Rebecca A. Reuber
{"title":"Navigating the paradox of global scaling","authors":"Esther Tippmann,&nbsp;Sinéad Monaghan,&nbsp;Rebecca A. Reuber","doi":"10.1002/gsj.1435","DOIUrl":"10.1002/gsj.1435","url":null,"abstract":"<div>\u0000 \u0000 \u0000 <section>\u0000 \u0000 <h3> Research summary</h3>\u0000 \u0000 <p>Much global strategy research explores the management of competing strategic demands. Although these demands vary by a firm's context, the focus has been largely on established long-lived multinational enterprises (MNEs) that are not based on digital technologies. There is thus a need to extend theory to take into account the co-existence of rapid growth and digitization, a condition which is increasingly prominent. This study of globally scaling digital firms shows that they navigate the paradoxical demands of replication, to achieve frictionless rapid growth, and entrepreneurship, to innovate and remain competitive. We provide a theoretical model, which shows how MNEs navigate this global scaling paradox through a virtuous cycle of identifying innovations that can be replicated. Surprisingly, given the ease of modifying digital products and services, navigating the global scaling paradox involves minimizing local responsiveness, which is regarded as antithetical to replication. This research also builds insights on the global strategies of digital firms.</p>\u0000 </section>\u0000 \u0000 <section>\u0000 \u0000 <h3> Managerial summary</h3>\u0000 \u0000 <p>Many digital firms strive to scale globally to achieve market dominance in competitive, fast-paced industries, but only a few succeed. Studying software-as-a-service firms that have successfully scaled globally, we illustrate that the core demands of global scaling are replication and entrepreneurship. Although contradictory, both demands need to be satisfied in tandem. Leaders of globally scaling firms can achieve this through a strategy that sustains three interrelated mechanisms: top-down replication, bottom-up entrepreneurial orientation, and replicable innovation generation to engender and screen replicable ideas. These mechanisms represent a virtuous cycle through which globally scaling digital firms can revise their global business model in a replicable way in order to sustain competitiveness.</p>\u0000 </section>\u0000 </div>","PeriodicalId":47563,"journal":{"name":"Global Strategy Journal","volume":"13 4","pages":"735-773"},"PeriodicalIF":7.6,"publicationDate":"2022-03-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1002/gsj.1435","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46922326","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}
引用次数: 12
The MNE and its subsidiaries at times of global disruptions: An international relations perspective 全球动荡时期的跨国公司及其子公司:国际关系视角
IF 7.6 2区 管理学
Global Strategy Journal Pub Date : 2022-03-17 DOI: 10.1002/gsj.1436
Klaus E. Meyer, Chengguang Li
{"title":"The MNE and its subsidiaries at times of global disruptions: An international relations perspective","authors":"Klaus E. Meyer,&nbsp;Chengguang Li","doi":"10.1002/gsj.1436","DOIUrl":"10.1002/gsj.1436","url":null,"abstract":"<div>\u0000 \u0000 \u0000 <section>\u0000 \u0000 <h3> Research Summary</h3>\u0000 \u0000 <p>The global economy has recently entered a period of disruptions, increasing barriers to cross-border business and potentially inhibiting the merits and legitimacy of integrated global strategies. We explore how three major disruptions in the global economy (reduced people mobility, divergent national regulatory institutions, and anti-globalization populism) affect the strategies of multinational enterprises, and, in particular, the role of their foreign subsidiaries. These external disruptions call for a reassessment of theories regarding the nature of global strategy and the interaction between businesses and their political environment. Specifically, we argue that the international relations perspectives of realism, liberalism, and constructivism help explain the nature of the disruptions, and hence can inform strategy scholarship in explaining and examining strategic responses to such external disruptions.</p>\u0000 </section>\u0000 \u0000 <section>\u0000 \u0000 <h3> Managerial Summary</h3>\u0000 \u0000 <p>Firms establish subsidiaries abroad in order to exploit the opportunities of globalization to the benefit of their shareholders and other stakeholders. However, the global economy has recently entered a period of disruptions that include reduced people mobility, divergent national regulatory institutions, and increased anti-globalization populism. We argue that these disruptions will not only create new operational challenges for global strategies and new needs for local adaptation but may even challenge the legitimacy of global business models. We turn to political science for explanations and find that three paradigms of international relations offer contrarian predictions not only on the big disruptions but also on the ability of MNEs to influence political processes driving the disruptions.</p>\u0000 </section>\u0000 </div>","PeriodicalId":47563,"journal":{"name":"Global Strategy Journal","volume":"12 3","pages":"555-577"},"PeriodicalIF":7.6,"publicationDate":"2022-03-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1002/gsj.1436","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43664294","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}
引用次数: 22
Do I see what you see? Institutional quality, action observability, and multimarket contact in the global mobile phone industry 我看到你看到的了吗?全球手机行业的制度质量、行动可观察性和多市场联系
IF 7.6 2区 管理学
Global Strategy Journal Pub Date : 2022-03-17 DOI: 10.1002/gsj.1433
Claudio Giachetti, Joseph Lampel, Ergun Onoz
{"title":"Do I see what you see? Institutional quality, action observability, and multimarket contact in the global mobile phone industry","authors":"Claudio Giachetti,&nbsp;Joseph Lampel,&nbsp;Ergun Onoz","doi":"10.1002/gsj.1433","DOIUrl":"10.1002/gsj.1433","url":null,"abstract":"<div>\u0000 \u0000 \u0000 <section>\u0000 \u0000 <h3> Research Summary</h3>\u0000 \u0000 <p>Drawing on signaling theory and the international business literature that addresses the role of institutions, we argue that multinational enterprises (MNEs) that use multimarket contact (MMC)—that is, meet the same competitors in multiple countries—to reduce rivalry in a given country, will have their actions and performance influenced by the institutional quality of that country. More specifically, we contend that action observability is the mechanism that explains why institutional quality facilitates an MNE's use of MMC with competitors in a host country. We also contend that an MNE's ability to successfully reduce rivalry with host country competitors via MMC is contingent on the institutional quality distance between the MNE's home and host country. We test our hypotheses with data from the mobile phone industry.</p>\u0000 </section>\u0000 \u0000 <section>\u0000 \u0000 <h3> Managerial Summary</h3>\u0000 \u0000 <p>MNEs often meet the same rivals simultaneously in multiple countries, a phenomenon known as market overlap or MMC. Prior studies have found that MMC deters rivals from attacking each other in the countries they have in common. However, these studies have not taken into account the heterogeneity of the institutional environments of the countries in which multimarket rivals compete. We contend that the quality of countries' institutions and the institutional quality distance between home and host countries affect the extent to which MNEs can observe each other's actions, which in turn helps rival MNEs to avoid mutually damaging moves for their sales performance in the countries they have in common.</p>\u0000 </section>\u0000 </div>","PeriodicalId":47563,"journal":{"name":"Global Strategy Journal","volume":"14 1","pages":"152-195"},"PeriodicalIF":7.6,"publicationDate":"2022-03-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48095905","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}
引用次数: 0
Role of context in knowledge flows: Host country versus headquarters as sources of MNC subsidiary knowledge inheritance 背景在知识流动中的作用:东道国与总部作为跨国公司附属知识继承的来源
IF 7.6 2区 管理学
Global Strategy Journal Pub Date : 2022-03-11 DOI: 10.1002/gsj.1434
Mike Horia Mihail Teodorescu, Prithwiraj Choudhury, Tarun Khanna
{"title":"Role of context in knowledge flows: Host country versus headquarters as sources of MNC subsidiary knowledge inheritance","authors":"Mike Horia Mihail Teodorescu,&nbsp;Prithwiraj Choudhury,&nbsp;Tarun Khanna","doi":"10.1002/gsj.1434","DOIUrl":"10.1002/gsj.1434","url":null,"abstract":"<div>\u0000 \u0000 \u0000 <section>\u0000 \u0000 <h3> Research Summary</h3>\u0000 \u0000 <p>We respond to calls in the strategy and international business literature for elucidating how multinational subsidiaries develop contextual intelligence in host countries and how they use the local context as a source of valuable opportunities for learning. Applying the theoretical lens of subsidiary absorptive capacity and building on a gravity model, we propose an approach that can distinguish and compare the influences of the host country context and headquarters over the subsidiary knowledge production. Some subsidiaries may become global second headquarters and innovation hubs, as evidenced qualitatively in the paper with the case of Cisco. Essentially, subsidiaries, characterized by higher stocks of knowledge and greater number of locally hired employees are likely to absorb relatively more knowledge from the local host country context.</p>\u0000 </section>\u0000 \u0000 <section>\u0000 \u0000 <h3> Managerial Summary</h3>\u0000 \u0000 <p>Managers at multinational companies have to carefully balance acquiring knowledge from the headquarters, vis-a-vis acquiring knowledge from the local context of countries where the firm has subsidiaries. In contrast to a “headquarter-centric” approach where most of the knowledge management activities are centered around the MNC headquarters, we argue that larger subsidiaries, often characterized by a large presence of local R&amp;D workers, might disproportionately draw knowledge from the local context, rather than from the headquarters. In addition to developing theoretical propositions along these lines, we provide an illustrative example of how Cisco opened a “second headquarters” in India, to learn from the rich local context.</p>\u0000 </section>\u0000 </div>","PeriodicalId":47563,"journal":{"name":"Global Strategy Journal","volume":"12 4","pages":"658-678"},"PeriodicalIF":7.6,"publicationDate":"2022-03-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47268313","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}
引用次数: 1
“Us” and “them”: Corporate strategic activism, horizontal inequalities, and society's capacity to address its grand challenges “我们”和“他们”:企业战略行动主义、横向不平等以及社会应对重大挑战的能力
IF 7.6 2区 管理学
Global Strategy Journal Pub Date : 2022-02-28 DOI: 10.1002/gsj.1430
Brian Ganson, Tony L. He, Witold J. Henisz
{"title":"“Us” and “them”: Corporate strategic activism, horizontal inequalities, and society's capacity to address its grand challenges","authors":"Brian Ganson,&nbsp;Tony L. He,&nbsp;Witold J. Henisz","doi":"10.1002/gsj.1430","DOIUrl":"10.1002/gsj.1430","url":null,"abstract":"<div>\u0000 \u0000 \u0000 <section>\u0000 \u0000 <h3> Research Summary</h3>\u0000 \u0000 <p>Divisions into an “us” and a “them” across racial, ethnic, economic, geographic, and other demographic divides impede society's capacity to address grand challenges. Firms have an impact on such divisions—whether positively or negatively, intentionally or not—through the dual mechanisms of rents and relationships. Firms may contribute to horizontal inequalities that underlie intergroup conflict through the distribution of the benefits, costs, and risks of firm activities. Through their relational strategies, firms also shape the willingness and ability of different groups to work together for positive change. Firm behaviors emerging from their daily operations can thus change society's capacity to address its grand challenges, necessitating corporate activism that encompasses market and nonmarket strategies, as well as a broader understanding of the strategy-setting process itself.</p>\u0000 </section>\u0000 \u0000 <section>\u0000 \u0000 <h3> Managerial Summary</h3>\u0000 \u0000 <p>This paper examines how firms inevitably shape conflict and cooperation in society through their impact on relationships between groups across racial, ethnic, economic, geographic, and other demographic boundaries. Managers distribute the gains and losses of business activities in ways that differently impact identity groups attentive to their relative inequalities. Strategies regarding how stakeholder relationships are built or broken can also change the ability of groups to build consensus on issues of broad social concern. We explain how these managerial decisions can thus affect the capacity of broader society to address collective challenges. We further explore how managers can design and implement inclusive market and nonmarket strategies that strengthen the cooperative potential of different groups to advance important social goals.</p>\u0000 </section>\u0000 </div>","PeriodicalId":47563,"journal":{"name":"Global Strategy Journal","volume":"12 3","pages":"520-542"},"PeriodicalIF":7.6,"publicationDate":"2022-02-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44759700","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}
引用次数: 4
The interplay between location and strategy in a turbulent age 在动荡的时代,地理位置和战略之间的相互作用
IF 7.6 2区 管理学
Global Strategy Journal Pub Date : 2022-02-22 DOI: 10.1002/gsj.1432
Harald Bathelt, Pengfei Li
{"title":"The interplay between location and strategy in a turbulent age","authors":"Harald Bathelt,&nbsp;Pengfei Li","doi":"10.1002/gsj.1432","DOIUrl":"10.1002/gsj.1432","url":null,"abstract":"<div>\u0000 \u0000 \u0000 <section>\u0000 \u0000 <h3> Research Summary</h3>\u0000 \u0000 <p>The spread of protectionist policies and the COVID-19 pandemic force policymakers and managers to fundamentally rethink the relationship between location and strategy. We examine this location-strategy interplay through a structure-agency perspective by investigating how the economic landscape shapes and, simultaneously, is shaped by firm strategies. Increasing spatial disparity and diversity of innovation and wealth in clusters and city-regions create both tremendous challenges and opportunities for multinational enterprises to strategically leverage knowledge over space. Locational choices and actions of multinationals, in turn, affect regional economic development paths and geographies of innovation. We argue for deep dialogue and collaboration between economic geography, international business and strategy to untie the knots in the intricate interplay between location and strategy and solve the grand challenges in our turbulent age.</p>\u0000 </section>\u0000 \u0000 <section>\u0000 \u0000 <h3> Managerial Summary</h3>\u0000 \u0000 <p>The wide spread of protectionism and the COVID-19 pandemic have disrupted global value chains unprecedently, forcing policymakers and firm managers to rethink the relationship between business strategies and locations. We suggest that this relationship can be understood in a bilateral way. The concentration of innovation and economic activities in city-regions and clusters creates big challenges but also tremendous opportunities for multinational enterprises. Multinationals need to direct knowledge across space but also have to deal with local resistance and opposition. The choices and actions of these firms are shaped by and, simultaneously, influence spatial patterns of economic activities. We argue for deep collaboration between economic geographers and international business scholars to solve the grand challenges for business, community and society in our turbulent time.</p>\u0000 </section>\u0000 </div>","PeriodicalId":47563,"journal":{"name":"Global Strategy Journal","volume":"12 3","pages":"451-471"},"PeriodicalIF":7.6,"publicationDate":"2022-02-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46976334","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}
引用次数: 6
Between a rock and a hard place: The consequences of complex headquarters configurations for subsidiary R&D activities 进退两难:复杂的总部结构对子公司研发活动的影响
IF 7.6 2区 管理学
Global Strategy Journal Pub Date : 2022-02-16 DOI: 10.1002/gsj.1431
Edward Gillmore, Ulf Andersson, Henrik Dellestrand
{"title":"Between a rock and a hard place: The consequences of complex headquarters configurations for subsidiary R&D activities","authors":"Edward Gillmore,&nbsp;Ulf Andersson,&nbsp;Henrik Dellestrand","doi":"10.1002/gsj.1431","DOIUrl":"10.1002/gsj.1431","url":null,"abstract":"<div>\u0000 \u0000 \u0000 <section>\u0000 \u0000 <h3> Research summary</h3>\u0000 \u0000 <p>Challenges related to the complexity of overlapping multiple partner headquarters configurations, the resulting power and political tensions between headquarters, and the consequent effects of multiple interventions in subsidiary value-creating activities remain an understudied phenomenon. We present a rich case study of how complex overlapping headquarters configurations develop. Then, we present the processes underlying power and political tensions that lead to parenting disadvantages between partner headquarters. We find that multiple and simultaneous headquarters interventions place the subsidiary between a rock and a hard place, as it becomes subject to conflicting headquarters voices. We contribute to the literature on parenting in multinational enterprises through an increased understanding of overlapping headquarters configurations and the power and political tensions between headquarters configurations that stimulate interventions in subsidiary R&amp;D mandates.</p>\u0000 </section>\u0000 \u0000 <section>\u0000 \u0000 <h3> Managerial summary</h3>\u0000 \u0000 <p>Multinational enterprises are exposed to a plethora of complex challenges. To meet these challenges, the organizational structure often becomes complex. We focus on the causes and consequences of complex headquarters structures, that is, operating with multiple partner headquarters, within multinational enterprises in relation to the allocation and reallocation of subsidiary R&amp;D mandates. We observe that headquarters interventions are driven by expectations and assigned roles to manage the multinational enterprise. Being aware of what partner headquarters are doing, that is, possessing system knowledge, can prevent redundant involvement by and competition between headquarters. Our findings indicate that if headquarters' knowledge of the system is low, this may cause the emergence of conflicting headquarters voices and considerable frustration among subsidiary managers.</p>\u0000 </section>\u0000 </div>","PeriodicalId":47563,"journal":{"name":"Global Strategy Journal","volume":"13 1","pages":"217-247"},"PeriodicalIF":7.6,"publicationDate":"2022-02-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46723955","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}
引用次数: 0
Tapping into emerging markets: EMNEs' strategies for innovation capability building 开拓新兴市场:新兴市场企业的创新能力建设战略
IF 7.6 2区 管理学
Global Strategy Journal Pub Date : 2022-02-10 DOI: 10.1002/gsj.1429
Henry Lopez-Vega, Nicolette Lakemond
{"title":"Tapping into emerging markets: EMNEs' strategies for innovation capability building","authors":"Henry Lopez-Vega,&nbsp;Nicolette Lakemond","doi":"10.1002/gsj.1429","DOIUrl":"10.1002/gsj.1429","url":null,"abstract":"<div>\u0000 \u0000 \u0000 <section>\u0000 \u0000 <h3> Research Summary</h3>\u0000 \u0000 <p>This article explores EMNEs' innovation capability building in emerging markets. The paper provides a longitudinal account of how the Brazilian cosmetics firm Natura transitioned from scant to ample innovation resources and processes. Building on the institution-based view and the resource-based view, we explain how EMNEs' innovation capability building is anchored in open innovation and collaborative nonmarket strategies. The paper reveals a unique pattern of innovation capability building based on a combination of local and global open innovation processes and harnessing the country characteristics over time. It is shown how combining open innovation and collaborative nonmarket strategies can help mitigate weak formal and informal institutions in emerging markets. The study offers an integrated framework explaining innovation capability building and the effects on the institutional setting.</p>\u0000 </section>\u0000 \u0000 <section>\u0000 \u0000 <h3> Managerial Summary</h3>\u0000 \u0000 <p>The increase of well-known EMNEs has raised interest in understanding how these firms build sustainable innovation capabilities. Based on a longitudinal study of the Brazilian-based cosmetics firm Natura, this paper shows how an open innovation strategy can be used to tap into home-market natural resources and connect to the global setting. This innovation capability process involves traditional market-based strategies like inter-organizational collaborations but also nonmarket strategies, such as developing local relationships, supporting socio-biodiversity, and contributing to local society. The findings point at the importance of developing an overall innovation strategy, directing attention to innovation processes, engaging in recursive practice in innovation projects, responding to the market and nonmarket environments, and linking the emerging market institutional setting and the global market context.</p>\u0000 </section>\u0000 </div>","PeriodicalId":47563,"journal":{"name":"Global Strategy Journal","volume":"12 2","pages":"394-417"},"PeriodicalIF":7.6,"publicationDate":"2022-02-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1002/gsj.1429","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46354993","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}
引用次数: 11
Locational boundness of resource, compatibility of production, and downside risks of multinationality 资源的区位有限性、生产的兼容性以及多国性的下行风险
IF 7.6 2区 管理学
Global Strategy Journal Pub Date : 2022-01-13 DOI: 10.1002/gsj.1426
Sangcheol Song
{"title":"Locational boundness of resource, compatibility of production, and downside risks of multinationality","authors":"Sangcheol Song","doi":"10.1002/gsj.1426","DOIUrl":"10.1002/gsj.1426","url":null,"abstract":"<div>\u0000 \u0000 \u0000 <section>\u0000 \u0000 <h3> Research Summary</h3>\u0000 \u0000 <p>We extend the multinational operational flexibility literature by examining how the characteristics of resources and capabilities within a portfolio of international investments affect its downside risks. We postulate that non-location bound resources and capabilities within an international investment portfolio are crucial to reducing switching costs and enhancing cross-country switchability, thus curbing downside risks. Our large sample of Korean multinational corporations reveals that globally sourced production inputs or more technological capabilities help curb downside risks, while locally sourced inputs or more marketing capabilities do not. We additionally find that the positive effect of less locational boundness is more salient when the portfolio has a high product relatedness or standardization.</p>\u0000 </section>\u0000 \u0000 <section>\u0000 \u0000 <h3> Managerial Summary</h3>\u0000 \u0000 <p>This study provides some managerial implications for international business managers. The findings suggest that the downside risk reduction effect of multinationality varies by heterogeneous resource and production conditions. They indicate that the locational boundness embedded in marketing capability, technological capability, and product type affects cross-border switchability. IB managers make strategic decisions on resource and product types for their overseas manufacturing subsidiaries in the configuration and coordination processes of their internationalization to maximize multinational operational flexibility. A more effective alignment of resources and capabilities with the strategic intent of boosting geographic fungibility facilitates effective production shifts within the same production network.</p>\u0000 </section>\u0000 </div>","PeriodicalId":47563,"journal":{"name":"Global Strategy Journal","volume":"12 2","pages":"334-358"},"PeriodicalIF":7.6,"publicationDate":"2022-01-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48165047","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}
引用次数: 0
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