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How do Local Firms Respond to Foreign Direct Investment through International R&D?
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Author: Jun Xia, U. of Texas at Dallas Author: Qian Gu, Georgia State U. Author: Marshall-Shibing Jiang, Brock U. Author: Zhouyu Lin, Jinan U.
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This study unravels the mechanisms through which horizontal FDI affects the strategic responses of local firms. We differentiate an intangibility gap (difference in intangible asset levels) from a productivity gap (difference in productivity levels) and contrast their effects. We argue that productivity gap has a U-shaped effect, whereas intangibility gap has an inverted U-shaped influence on the internal R&D intensity of local firms. Moreover, we introduce the export intensity of local firms as a boundary condition under which the proposed relationships become attenuated. Using a sample of manufacturing firms in China, we find evidence that supports most of our predictions.
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Paper is No Longer Available Online: Please contact the author(s).
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Building Entrepreneurial Orientation from Learning through Internationalization
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Author: Anish Purkayastha, U. of Sydney Business School Author: Vishal K. Gupta, U. of Alabama Author: Vikas Kumar, U. Of Sydney
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Multi-National Enterprises (MNEs) expand overseas to sell their offerings outside the home country (internationalization), seek capital in international equity market (capital-seeking internationalization), and acquire foreign strategic assets (international M&A). Building on the idea of differences in internationalization motivations and processes of emerging-market MNEs (EMNEs) and drawing on the organizational learning theory, we propose that EMNEs learn through their internationalization process to become more entrepreneurially oriented. We extend the resource orchestration framework to develop learning orchestration through a configuration of experiential learning from internationalization, vicarious learning from capital-seeking internationalization, and grafting from asset-seeking international M&A. We posit that such a learning orchestration improves the effect of internationalization on entrepreneurial orientation in EMNEs. Furthermore, we argue that entrepreneurial orientation and performance has a positive relationship for EMNEs. Longitudinal archival data drawn from 809 large Indian firms over a nine-year period is used to test predicted relationships with random effect generalized least-squares panel regression analyses. Our findings offer an improved understanding on importance of learning orchestration (or process of acquiring, bundling and leveraging knowledge resources) from different forms of global expansion strategy of EMNEs in making these firms more entrepreneurial.
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Paper is No Longer Available Online: Please contact the author(s).
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Market Familiarity and Export Survival: When Experience Makes Exporting More Dynamic
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Author: Eliane Choquette, Aarhus U., Department of Management
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This paper investigates the effect of market familiarity at export market entry on the subsequent survival of firms in individual export markets. Applying diverse theoretical lenses, competing hypotheses on the relationship between market familiarity and export market survival are developed and tested. Moreover, this paper hypothesizes that the effect of market familiarity on export survival depends on the initial level of sunk costs associated with entering a particular export market. The findings show that a sunk cost logic dominates learning effects associated with market familiarity, and does so in all types of export markets.
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Paper is No Longer Available Online: Please contact the author(s).
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Leveraging New Knowledge: The Learning-By-Exporting Effect on Leading and Lagging Family Firms
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Author: Joan Freixanet, Graduate School of Management, St. Petersburg State U. Author: Joaquin Monreal, U. De Murcia Author: Gregorio Sanchez-Marin, U. of Murcia
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This study analyzes how family control influences the conversion of knowledge input obtained from exports to various innovation outputs, a process that is referred to as learning by exporting. We thus contribute to an emerging research area that focuses on the analysis of factors that have an opposite effect in innovation input, and in their conversion to innovation output. We argue that given the owners’ higher authority, wealth concentration and pursuit of nonfinancial goals, family firms are more reluctant to engage in internationalization and innovation activities than their non-family counterparts, but are able to more efficiently leverage their exposure to foreign markets in terms of innovation outcomes. We base our research on a sample of 1,800 firms for the period spanning from 2007-2014 to test and provide a dynamic view of these relationships in the areas of exporting, learning and innovation. The empirical findings support our hypotheses. We further argue and empirically demonstrate that the observed effects are even stronger for those family firms that are technological leaders. The findings hold relevant scholarly, management and public policy implications.
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Paper is No Longer Available Online: Please contact the author(s).
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Creative Destruction Within and Across Countries: Do Culture and Connectedness Matter?
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Author: Ikenna Stanley-Paschal Uzuegbunam, Ohio U. Author: J Michael Geringer, Ohio U. Author: Christian Oberst, Wells Fargo Securities, LLC
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This study investigates the relationship of national culture and global connectedness with the creative destruction process. Hypotheses are developed regarding the extent of a nation’s adoption of creatively destroying technologies based on cultural dimensions of uncertainty avoidance and cultural tightness (vs. looseness), and on global connectedness dimensions of depth and breadth. An analysis of agricultural biotechnology adoption in 58 nations provides broad and robust support for the theoretical framework and shows significance for interaction between tightness and dimensions of global connectedness. These findings provide insight into the role of intranational informal institutions and global connectedness in shaping complex interactions between technological change and industrial evolution.
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Paper is No Longer Available Online: Please contact the author(s).
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