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MNCs' corporate social irresponsibility and foreign subsidiary performance Glob. Strategy J. (IF 7.393) Pub Date : 2024-02-01 N. Nuruzzaman, Erin E. Makarius, Debmalya Mukherjee, Ajai Gaur
Building on the cognitive view of stakeholder evaluation, we propose that multinational corporations' (MNCs') socially irresponsible acts transcend geographic boundaries and negatively affect foreign subsidiary performance. Moreover, we propose that foreign subsidiaries' product innovation and marketing campaigns create strategic noise in the information space that can mitigate the negative effect
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The microfoundations of international commitment decisions: Creating joint opportunity meanings Glob. Strategy J. (IF 7.393) Pub Date : 2024-01-03 Mikael Eriksson, Esther Tippmann
Despite a vast body of theory on internationalization processes, little is known about the microfoundations of how firms deal with internal groups' diverse views when trying to make international commitment decisions. Drawing on the concept of opportunity formation and a detailed case study, we develop a model that shows how, under the condition of diverse internal meanings, firms can make an international
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All politics starts local: Liability of stateness and subnational labor markets Glob. Strategy J. (IF 7.393) Pub Date : 2023-12-18 Cheng Li, Klaus Meyer
State-controlled acquirers face a liability of stateness (LoS) because host country stakeholders consider them less legitimate and as representatives of foreign political power. We argue that due to LoS, state-owned enterprises (SOEs) face more regulatory scrutiny in cross-border acquisitions than comparable private-owned enterprises (POEs). Applying a voting behavior perspective, we further posit
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Cross-investments by multinationals: A new perspective Glob. Strategy J. (IF 7.393) Pub Date : 2023-12-03 Mark Casson, Nigel Wadeson
Cross-flows of foreign direct investment (FDI) occur when firms invest in each other's home countries, affecting the terms of competition in each market. They are explained by internalization theory but have never been comprehensively investigated. This article models cross-investment in a duopoly with differentiated products. The firms decide whether to enter each market and whether to serve it through
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Responsibility boundaries and the governance of global value chains: The interplay of efficiency, ethical, and institutional pressures in global strategy Glob. Strategy J. (IF 7.393) Pub Date : 2023-11-03 Thomas DeBerge
I explore the relationship of firm global strategy and global value chain (GVC) governance, within a context of expanding responsibility boundaries for unethical practices in the value chain. Specifically, focusing on the tantalum supply chain within the digital electronics GVC, I conduct a case-based process study that contextualizes the different strategic responses of three manufacturers of tantalum
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Scarce resources or damaged goods? On the legitimacy of laid-off workers following MNC failure Glob. Strategy J. (IF 7.393) Pub Date : 2023-10-25 Kristina Vaarst Andersen, Mark Lorenzen, Agnieszka Urszula Nowinska
We contribute to theorizing global human resource strategy by analyzing the mobility of workers laid off due to the failure of a MNC employer. The job opportunities of laid-off workers are affected by their industry legitimacy. Focusing on scarce specialized workers, we propose that prospective MNC employers share an interest in retaining such workers' legitimacy. However, in the light of organizational
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Cross-border acquisitions by sovereign wealth funds: A legitimacy-based view Glob. Strategy J. (IF 7.393) Pub Date : 2023-10-01 Samuele Murtinu, Vittoria G. Scalera, Roger Strange
Drawing on institutional economics and the legitimacy-based view of political risk, we investigate the factors determining the realization of cross-border investments by sovereign wealth funds (SWFs), whose investments often suffer from a lack of legitimacy in host countries. Using matching models on all the realized and potential investments, we find that investments are more likely to materialize
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Networks of internationalizing digital platforms in physical place and digital space Glob. Strategy J. (IF 7.393) Pub Date : 2023-09-21 Tamara Galkina, Irina Atkova, Francesca Ciulli
The existing literature provides contradictory evidence on how digital platform firms establish network relations for internationalization. Some studies argue that they all but obviate the need for traditional relations in physical places. Others argue that these firms can suffer from overreliance on online interactions in digital space. We examine the coexistence of the network relations of international
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Ownership, institutions, and the agency of M&A completion Glob. Strategy J. (IF 7.393) Pub Date : 2023-09-13 Thomas Lindner, Jakob Müllner, Harald Puhr
In this paper, we study how variations in debt and equity ownership and the institutions that govern interactions between different types of principals and agents affect the completion likelihood of acquisitions. Using a sample of 55,722 acquisitions, our study finds that risk-averse debtholders reduce the completion likelihood of acquisitions. When acquisitions cross borders, the acquiring capital
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Complexity and multinationals Glob. Strategy J. (IF 7.393) Pub Date : 2023-09-04 Marcus M. Larsen, Julian Birkinshaw, Yue Maggie Zhou, Gabriel R. G. Benito
The multinational corporation (MNC) is a typical example of a complex organization. In this essay, we employ an established body of literature on complexity in organizations to explore and discuss the nature and consequences of complexity for global strategy and MNCs. On that basis, we develop a simple organizing framework for complexity in global strategies emphasizing the source (external and internal
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When do investors see value in international environmental management certification of multinational corporations? A study of ISO 14001 certification after the Paris Agreement Glob. Strategy J. (IF 7.393) Pub Date : 2023-08-08 Irene Margaret, Frederiek Schoubben, Ernst Verwaal
Despite the prominence of International Organization for Standardization (ISO) 14001 certification as a global strategy instrument, there is persistent doubt about its effectiveness as a value-generating tool, especially for multinational corporations (MNCs). This study draws on institutional theory to explain the varying market valuations of international environmental management certification following
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Are foreign-born CEOs held to a higher performance standard? The role of national origin in CEO dismissals Glob. Strategy J. (IF 7.393) Pub Date : 2023-08-02 Yannick Thams, Marketa Rickley
Foreign-born chief executive officers (CEOs) are increasingly common in US corporations. However, little is known about whether they are held to the same performance standard as native-born CEOs. We examine whether CEO national origin moderates the relationship between firm performance and CEO dismissal. Drawing on social identity and attribution theories, we argue that CEO foreignness becomes more
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Deal completion in cross border acquisitions waves: The role of deal timing and pace Glob. Strategy J. (IF 7.393) Pub Date : 2023-08-02 Mohammad Fuad, Ajai S. Gaur, Chinmay Pattnaik
Cross-border acquisitions (CBAs) exhibit a wave-like pattern, clustering temporally, industry-wise, and at the country level. We draw upon the bargaining power perspective and argue that CBA wave context alters the relative bargaining position between acquirer and target firms, which affects deal completion. Our findings suggest that acquisition wave deals have a lower likelihood of completion compared
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The effect of political elections at home on the internationalization of state-owned multinationals from emerging countries Glob. Strategy J. (IF 7.393) Pub Date : 2023-07-23 Rodrigo B. DeMello, Marina Gama, Olivier Bertrand, Marie-Ann Betschinger
The literature on the internationalization of state-owned enterprises in emerging countries usually implicitly assumes continuity in the provision of key resources by home country governments. This assumption, however, does not necessarily hold in the presence of political elections in democratic emerging countries. Drawing from the resource dependence theory and the literatures on election-induced
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Characteristics of digital artifacts in international endeavors of digital-based international new ventures Glob. Strategy J. (IF 7.393) Pub Date : 2023-05-29 Arto Ojala, Sara Fraccastoro, Mika Gabrielsson
Current research on digital artifacts and international business reveals that digitalization is changing how firms enter international markets and operate within them. The unbounded nature of digital artifacts provides opportunities for entrepreneur-driven firms to rapidly launch and develop digital platforms for international markets. However, extant literature provides little guidance on leveraging
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Foreign direct investment in the context of rising populism: The role of institutions and firm-level internationalization Glob. Strategy J. (IF 7.393) Pub Date : 2023-05-20 Alfonso Carballo Perez, Margherita Corina
We investigate how the presence of populist rulers affects foreign direct investment in democratic countries. Our analysis sheds light on the mechanisms by which this political force impacts firms' decisions, considering the effect of institutions and internationalization strategies at the firm level in the global arena. We test our theory using instrumental variables with a panel dataset of US multinationals
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Pioneering excellence or fleeing mediocracy? Why venture capital firms internationalize Glob. Strategy J. (IF 7.393) Pub Date : 2023-05-07 Harald Kollmann, Jakob Müllner, Jonas Puck
Theories and empirical evidence on the competitive motives for VC internationalization are unclear and contradictory. In our study, we adopt a performance feedback perspective to explain VC firms' motives to venture abroad. We leverage unique peer-performance data on 295 VC funds and 2954 VC investments and find support for our hypotheses that performance below (a) peer, (b) historical, or (c) market
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R&D alliances and SMEs post-entry internationalization speed: The impact of alliance management capability and co-innovation ambidexterity Glob. Strategy J. (IF 7.393) Pub Date : 2023-04-20 Nadia Zahoor, Omar Al-Tabbaa, Zaheer Khan
This study delves into the relationship between alliance management capability (AMC) and the post-entry internationalization speed of small-sized and medium-sized enterprises (SMEs). We develop a novel theoretical framework that illuminates the effect of co-innovation ambidexterity as a mechanism that unlocks AMC value in speeding up SME internationalization following entry into foreign markets. To
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The multifaceted ownership change of foreign subsidiaries: The diverse responses to different types of negative performance feedback Glob. Strategy J. (IF 7.393) Pub Date : 2023-04-05 Wen Helena Li, Bin Guo, Vikas Kumar, Jinlong Gu, Wentao Hu
By integrating performance feedback theory and ownership management literature, we examine how parent multinational companies (MNCs) evaluate their foreign subsidiaries' poor performance against various aspirations and make multifaceted ownership change decisions. Our results show that social aspirations matter more than historical aspirations in ownership change decisions. When a focal subsidiary
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The role of institutional quality and industry dynamism in explaining firm performance in emerging economies Glob. Strategy J. (IF 7.393) Pub Date : 2023-04-02 Mario Kafouros, Murod Aliyev, Panagiotis Piperopoulos, Alan Kai Ming Au, Joanne Wing Yee Ho, Susanna Yee Na Wong
This study explains how heterogeneity in firm competitiveness and performance in emerging economies is influenced jointly by the institutional quality of countries and interindustry variations in technological and market dynamism. The analysis of 12,888 firms from 16 emerging economies shows that while the performance advantages of institutional quality are strengthened for firms in technologically
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Global strategy collections: Multinationality and performance Glob. Strategy J. (IF 7.393) Pub Date : 2023-03-25 Torben Pedersen, Stephen Tallman
In this second collection of articles relating to global strategy, we address the well-established but unresolved issue of the relationship between multinationality and performance among multinational firms. The M-P relationship has been the topic of many articles in many journals for many years, but its true nature is still not established. Both theory and empirical findings provide different and
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National innovation policies and knowledge acquisition in international alliances Glob. Strategy J. (IF 7.393) Pub Date : 2023-03-20 Jens-Christian Friedmann, Torben Pedersen
International alliances facilitate learning among firms by providing access to knowledge embedded in different countries, yet we do not know how the partnering firms' distinct national contexts shape their learning in alliances. This study brings together research on learning in alliances and research on national innovation systems to examine how innovation policies in the respective home countries
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Subsidiary capability and charter change: Making Birkinshaw and Hood's framework actionable Glob. Strategy J. (IF 7.393) Pub Date : 2023-03-14 Marlena Dzikowska, Jens Gammelgaard, Ulf Andersson
We provide a more granular and comprehensive approach to subsidiary evolution and enhance the understanding of the complexity of the subsidiary's evolution in the era of value chain fine-slicing. We extend Birkinshaw and Hood's model of general processes of subsidiary evolution into a model of functional evolutionary paths that represents nine configurations of charter and capability changes. We examine
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Erratum to “Huang P, Madhavan R. Dumb money or smart money? Meta-analytically unpacking corporate venture capital” Glob. Strategy J. (IF 7.393) Pub Date : 2023-03-07
Huang P, Madhavan R. (2023), Dumb money or smart money? Meta-analytically unpacking corporate venture capital. Global Strategy Journal, 13: 248–248. https://doi.org/10.1002/gsj.1453 The title in this published Corrigendum is incorrect and should be read as: “Pedersen T, Tallman S. (2023), Global strategy collections: Emerging market multinational enterprises. Global Strategy Journal, 13: 248–248. https://doi
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HQ controls, agency costs, and procedural justice Glob. Strategy J. (IF 7.393) Pub Date : 2023-02-27 Erifili-Christina Chatzopoulou, Spyros Lioukas, Irini Voudouris
Monitoring, incentive alignment, and social controls are used to minimize the agency costs to headquarters (HQ) resulting from subsidiaries' opportunistic behaviors by aligning subsidiaries' behaviors and interests with those of the HQ. Subsidiaries' motivation to comply with these controls, however, is contingent on the social context that links the subsidiary to the HQ. In this context, we propose
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Boots on the ground: Foreign direct investment by born digital firms Glob. Strategy J. (IF 7.393) Pub Date : 2023-02-27 Maximilian Stallkamp, Liang Chen, Sali Li
Recent global strategy research on born digital firms (i.e., firms with digital products distributed through digital channels) has paid only limited attention to the role of foreign direct investment (FDI) in the internationalization of such firms. We argue that exploiting digital technologies requires a range of complementary, non-digital resources. Born digitals typically deploy FDI when large cultural
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Cultural dispersion and stock liquidity Glob. Strategy J. (IF 7.393) Pub Date : 2023-01-28 John F. Zhang
This paper examines whether cultural dispersion of a multinational firm affects its stock trading in the market. The result shows that the stock liquidity negatively relates to the degree of cultural dispersion, suggesting it is costlier to trade stocks of culturally diverse firms. Among five measures of stock liquidity, Chae's (2005) turnover measure demonstrates the most consistent effect after addressing
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Externalities in global value chains: Firm solutions for regulation challenges Glob. Strategy J. (IF 7.393) Pub Date : 2022-11-28 Peter J. Buckley, Peter W. Liesch
Negative externalities in global value chains (GVCs) create challenges for regulation. We establish conditions under which firms are more likely to adapt their GVCs to rectify negative externalities that occur at global scale. Firms in GVCs vary in relation to their active involvement in attending to negative externalities in a predictable way, according to their awareness (A) of these externalities
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Digitalization of cross-border R&D alliances: Configurational insights and cognitive digitalization biases Glob. Strategy J. (IF 7.393) Pub Date : 2022-11-03 Ricarda B. Bouncken, Viktor Fredrich, Noemi Sinkovics, Rudolf R. Sinkovics
Firms implement digital technology for improving coordination and communication in cross-border R&D alliances. However, there is great ambivalence regarding how digitalization influences cross-border knowledge transfers. Our analysis clarifies some of this ambivalence by providing different configurations of absorptive capacity in cross-border R&D alliances. The fuzzy-set qualitative comparative analysis
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Board of director effectiveness and informal institutions: A meta-analysis Glob. Strategy J. (IF 7.393) Pub Date : 2022-11-01 Angelo M. Solarino, Brian K. Boyd
Board independence is central to corporate governance. Numerous theories espouse the value of the monitoring and advice provided by outside board members, and governance codes worldwide call for boards with more independent directors and for separating the roles of chief executive officer and chairman. However, neither original studies nor meta-analyses have found a substantial link between board independence
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Resource dependence theory in international business: Progress and prospects Glob. Strategy J. (IF 7.393) Pub Date : 2022-10-17 Han Jiang, Yadong Luo, Jun Xia, Michael Hitt, Jia Shen
Resource dependence theory (RDT) has been widely applied in the context of international business (IB) over the past four decades. This study reviews and synthesizes the insights of RDT in IB literature accumulated over the past 40 years and derives an integrative addendum for future research. We highlight three critical dependence dimensions (i.e., locational, interorganizational, and intraorganizational
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International environmental complexity and the demand for generalists and specialists in executive selection Glob. Strategy J. (IF 7.393) Pub Date : 2022-10-14 Tommaso Vallone, Stefano Elia, Peder Greve
This study investigates the selection of generalists and specialists as an organizational response to the complexity of firms' international operations. Drawing on the concept of executive job demands, we identify institutional ambiguity and economic sophistication as two distinct sources of country environmental complexity resulting from a firm's foreign investment and predict how they affect the
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Digital sales channels and the relationship between product and international diversification: Evidence from going digital retail MNEs Glob. Strategy J. (IF 7.393) Pub Date : 2022-10-12 Georgios Batsakis, Palitha Konara, Vasilis Theoharakis
We argue that in the era of e-commerce, retail firms can simultaneously grow their product and international portfolio by adopting a multichannel strategy, that is, using digital and physical channels. Drawing on the resource bundling perspective, we argue that the previously advocated negative relationship between product and international diversification is mitigated by the retail firm's digital
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Offshore FDI, tax havens, and productivity: A network analysis Glob. Strategy J. (IF 7.393) Pub Date : 2022-10-09 Soni Jha, Snehal Awate
Multinational enterprises (MNEs) use tax havens to benefit from international tax arbitrage and increase their capital efficiency. These activities are purported to distort global financial markets, erode national corporate tax bases, and are singularly targeted in the media. Despite this, MNEs continue to increase the dispersion of their tax haven activities by investing in multiple tax havens. We
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The future of global strategy Glob. Strategy J. (IF 7.393) Pub Date : 2022-09-21 Gabriel R.G. Benito, Alvaro Cuervo-Cazurra, Ram Mudambi, Torben Pedersen, Steve Tallman
Global strategy, that is, the analysis of strategy in an international context, has co-evolved with the dramatic changes in the global economy in the 21st century. Research advances have enabled a more sophisticated understanding of how firms develop strategies in an increasingly turbulent global environment in which societal expectations, technological advances, and political decisions are all in
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Locational strategy: Understanding location in economic geography and corporate strategy Glob. Strategy J. (IF 7.393) Pub Date : 2022-09-12 Richard Florida, Patrick Adler
Drawing on key concepts from management theory, corporate strategy, and economic geography, we argue that the time has come for “Locational Strategy.” Locational strategy is a framework for understanding how the locational decisions of organizations fit into broader corporate strategy. Locational strategy is particularly relevant given rise of knowledge and talent as key factors of productions and
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Rethinking intrapreneurship in the established MNE Glob. Strategy J. (IF 7.393) Pub Date : 2022-08-30 Alain Verbeke, Wenlong Yuan
We show significant variation in the ways mainstream international business strategy (IBS) theories have addressed the discovery and pursuit of entrepreneurial opportunities in the established multinational enterprise (MNE). We adopt an extended “individual—opportunity nexus” perspective and suggest a fourfold repositioning of IBS research on MNE intrapreneurship. First, by acknowledging opportunities
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How the country context shapes firms' competitive repertoire complexity Glob. Strategy J. (IF 7.393) Pub Date : 2022-08-19 Philip J. Steinberg, Jan C. Hennig, Jana Oehmichen, Judith Heigermoser
Recent research has shown that firms' ability to employ complex competitive repertoires can create long-term competitive advantages. Since research on its determinants has focused on the firm level, we lack an understanding of how country-level factors impact firms' implementation of complex competitive repertoires. Our cross-country study addresses this gap by integrating a model of country-level
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Friends, foes, or “frenemies”: Intercountry relations and cross-border acquisitions Glob. Strategy J. (IF 7.393) Pub Date : 2022-08-14 Tsvetomira V. Bilgili, Hansin Bilgili, David G. Allen, Holly Loncarich, Ben L. Kedia, Jonathan L. Johnson
We draw on the political institutions approach and relational embeddedness perspective to advance a relational theory of policy risk. We argue that policy risk negatively affects acquisition completion, but the strength of the effect is dependent on home-host country relations. Home-host country relations underpin host governments' motivation to commit to policies and influence foreign acquirers' perceptions
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Leviathan as a financial godfather: Debt advantages of wholly state-owned enterprises Glob. Strategy J. (IF 7.393) Pub Date : 2022-08-06 Mauricio Jara, Aldo Musacchio, Rodrigo Wagner
We examine the debt advantages of wholly owned state-owned enterprises (WSOEs), due to an implicit sovereign insurance against default. Our model explains conditions that increase those advantages in bond yields. In our global sample of bonds, we find that bond issues of WSOEs, have a 57 bps discount in their yield to maturity vis-à-vis comparable corporations. The effect is even larger when we benchmark
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Government policy, filial piety, and foreign direct investment Glob. Strategy J. (IF 7.393) Pub Date : 2022-08-02 Pengcheng Ma, Lin Cui, Meitong Dong, Yi-Chuan Liao
This study investigates formal institutional pressure from government policy, informal institutional pressure from filial piety, and their interaction effect on firms' internationalization strategy. We argue that, while influenced by independent policy and cultural effects, firms also exercise agency when responding to these competing institutional pressures. We find empirical support for the influence
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Formal institutional context in global strategy research: A layer cake perspective Glob. Strategy J. (IF 7.393) Pub Date : 2022-07-05 Daniel S. Andrews, Stav Fainshmidt, Andreas P. J. Schotter, Ajai Gaur
We offer a novel view of formal institutions as a layer cake, suggesting a structural relationship between higher-level and lower-level institutions. In this context, inter-layer conflict imposes complex pressures on multinational corporations (MNCs). These tensions have become more rife amid the growth in global connectedness and the commensurate increase in the importance of within-country differences
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The complexity of post-mergers and acquisitions reorganization: Integration and differentiation Glob. Strategy J. (IF 7.393) Pub Date : 2022-07-01 Kim E. van Oorschot, Bella B. Nujen, Hans Solli-Sæther, Deodat Edward Mwesiumo
This article applies a mixed-method approach to explore the complexities of post-mergers and acquisitions (M&A) integration processes. Extant literature provides significant insights regarding the impact of task and human integration and their influence on post-integration processes. However, the literature often fails to differentiate between subelements of these two dimensions. This article investigates
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When are global decisions strategic? Glob. Strategy J. (IF 7.393) Pub Date : 2022-06-23 Michael J. Leiblein, Jeffrey J. Reuer, Marcus M. Larsen, Torben Pedersen
A robust academic field must set and revisit boundary conditions that define where, when, and to whom its insights apply. This is particularly true for a field such as global strategy where the ubiquity of the key terms invites indiscriminate use of the phrase. This essay argues that it is useful to define the field of global strategy as the subset of questions that meet the criteria for both “global”
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Huang P, Madhavan R. Dumb money or smart money? Meta-analytically unpacking corporate venture capital Glob. Strategy J. (IF 7.393) Pub Date : 2022-06-21
In Table 1 and Selected Works section page 206, the citation “Thakur-Wernz and Shantala (2019)” should read as “Thakur-Wernz and Samant (2019)”. In reference list, the reference “Thakur-Wernz, P., & Shantala, S. (2019). Relationship between international experience and innovation performance: The importance of organizational learning for EMNEs. Global Strategy Journal, 9(3), 378–404.” should read as
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Post-entry internationalization speed, learning speed, and performance: A meta-analytic review and theory extension Glob. Strategy J. (IF 7.393) Pub Date : 2022-06-21 Sheng Huang, Zhenkuo Ding, Xiaoman Lin, Yunxia Zhu
The impact of post-entry internationalization speed (PIS) on firm performance has become a central issue in global strategy research. This paper conducts a meta-analysis concerning the relationships between two dimensions (i.e., international commitment speed and international scope speed) of PIS and performance, and the moderating effects of learning speed on these relationships among international
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Extending internalization theory: Integrating international business strategy with international management Glob. Strategy J. (IF 7.393) Pub Date : 2022-06-13 Mark Casson
International business strategy and international management are two distinct but related fields of study. This article explores the connections between them. It shows how internalization theory can act as a bridge between them. The key is to analyze not only core activities, such as production, marketing and R&D, but support services such as human resource management, information technology, and corporate
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Choosing misaligned governance modes when offshoring business functions: A prospect theory perspective Glob. Strategy J. (IF 7.393) Pub Date : 2022-06-01 Stefano Elia, Marcus M. Larsen, Lucia Piscitello
Transaction cost economics (TCE) holds that multinational corporations (MNCs) should select governance modes based on associated transactional hazards. However, MNCs often adopt theoretically misaligned governance modes. Applying a prospect theory (PT) perspective, we use the context of business-process offshoring to explore why firms choose misaligned governance modes. We argue that theoretically
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What is digital transformation? Core tensions facing established companies on the global stage Glob. Strategy J. (IF 7.393) Pub Date : 2022-05-23 Nathan Furr, Pinar Ozcan, Kathleen M. Eisenhardt
Digital transformation is a dominant theme in the global economy, but what it means for established companies remains perplexing for both academics and practitioners. As digital erases familiar geographic, industrial, and organizational boundaries, it has led to simplistic characterizations such as “digital changes everything.” Yet while digital changes some things, others remain the same. Here, we
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Navigating three vectors of power: Global strategy in a world of intense competition, aggressive nation states, and antagonistic civil society Glob. Strategy J. (IF 7.393) Pub Date : 2022-05-20 Peter J. Buckley
Global strategy must negotiate three vectors of external power: State policies (that often conflict across national boundaries), the demands of civil society, and market pressures. The global strategies of corporations must reflect their two enduring and non-replicable advantages—innovation and flexibility. These qualities are essential in the face of increased government regulation together with intensification
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Strategizing and economizing in global strategy Glob. Strategy J. (IF 7.393) Pub Date : 2022-05-16 Christian Geisler Asmussen, Nicolai J. Foss
The strategic management and international business fields have followed, in some respects, quite similar intellectual trajectories, as reflected in the push for a field of “global strategy.” However, a key distinction in the strategy literature—namely, Williamson's distinction between “strategizing” and “economizing”—has not been explicitly recognized in the international business/global strategy
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Geographical reconfiguration in global value chains: Search within limited space? Glob. Strategy J. (IF 7.393) Pub Date : 2022-05-12 Carlos Rodriguez, Luciano Ciravegna, Bent Petersen
Negative performance feedback in offshoring service activities entices firms to undertake geographical reconfiguration of their global value chains (GVCs) as a substitute for, or complement to, change of governance modes, decomposition of offshored activities, or shift of local service providers. In this study, we build on performance feedback theory and the concept of problemistic search to examine
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In the name of national security: Foreign takeover protection and firm innovation efficiency Glob. Strategy J. (IF 7.393) Pub Date : 2022-05-01 Wei Shi, Boshuo Li
This study investigates the influence of foreign takeover protection triggered by investment-related national security screening laws and regulations on firm innovation efficiency. Drawing on agency theory, we argue that an increase in foreign takeover protection can lead to a reduction in innovation efficiency—the amount of innovation output relative to innovation input—by encouraging managerial entrenchment
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Global strategy collections: Emerging market multinational enterprises Glob. Strategy J. (IF 7.393) Pub Date : 2022-04-09 Torben Pedersen, Stephen Tallman
This first collection of articles for global strategy focuses on the relatively new phenomenon of Emerging Market Multinational Enterprises (EMNEs). The first topic to draw real attention to articles in Global Strategy Journal, the study of EMNEs challenges many assumptions about what characteristics make a firm a successful MNE and forces a reconsideration of fundamental questions in strategic management
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The importance of rare events and other outliers in global strategy research Glob. Strategy J. (IF 7.393) Pub Date : 2022-03-28 Paul W. Beamish, Vanessa C. Hasse
Rare events and other nonerror outliers (such as the COVID-19 pandemic) are important phenomena in global strategy contexts. Despite their salience, however, they have hardly been studied systematically in our field (or organizational research at large). We suggest that this is due to a dominance of the Gaussian paradigm, which (often unrealistically) assumes linearity and independence of observations
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International experience and imitation of location choices: The role of experience interpretation and assessment and its board-level microfoundations Glob. Strategy J. (IF 7.393) Pub Date : 2022-03-24 Ettore Spadafora, Claudio Giachetti, Makafui Kwame Kumodzie-Dussey, B. Elango
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
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Navigating the paradox of global scaling Glob. Strategy J. (IF 7.393) Pub Date : 2022-03-18 Esther Tippmann, Sinéad Monaghan, Rebecca A. Reuber
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
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Do I see what you see? Institutional quality, action observability, and multimarket contact in the global mobile phone industry Glob. Strategy J. (IF 7.393) Pub Date : 2022-03-17 Claudio Giachetti, Joseph Lampel, Ergun Onoz
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
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The MNE and its subsidiaries at times of global disruptions: An international relations perspective Glob. Strategy J. (IF 7.393) Pub Date : 2022-03-17 Klaus E. Meyer, Chengguang Li
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
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Role of context in knowledge flows: Host country versus headquarters as sources of MNC subsidiary knowledge inheritance Glob. Strategy J. (IF 7.393) Pub Date : 2022-03-11 Mike Horia Mihail Teodorescu, Prithwiraj Choudhury, Tarun Khanna
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