Although the core concepts underlying IB and IHRM provide a common lexicon and epistemology, this commonality is often more implicit than explicit. We highlight not only the common ground but also the lack of critical dialogue between the two fields. This paper asks: What can each field learn from the other? What do scholars from IB learn from IHRM and vice versa? We identify a possible agenda and concerns regarding theory building as a basis for dialogue between the two fields. © 2019
The relevance of ideas is at the core of the IB field and has been captured in concepts like technology, innovation and knowledge. While these concepts have evolved over the last decades, the point that the ideas and the international connectivity are central for IB remains genuine. This paper is an attempt to take stock of the evolution of the concepts technology, innovation and knowledge in IB literature along the past five decades with a particular focus on the role of the Columbia Journal of World Business (CJWB) and the Journal of World Business (JWB) in this evolution. Likewise, our objective is to offer a research agenda for the coming decade. We proceed in two steps. First, we scrutinize how the IB literature has progressed and expanded over the last five decades, illustrating this on the basis of articles published in CJWB and JWB. Second, we take a helicopter view on this literature and reflect on the insights we have gained and the challenges the IB field has ahead that can constitute the basis for a future research agenda. We highlight the importance of creating a micro-foundation of knowledge processes where mechanisms on the interaction between the higher levels (nation, firm, teams) and the individual level are clarified.
We develop theory stating that international and market-specific social capital are two distinct forms of social capital which both increase international opportunity exploitation. We also argue that market-specific social capital mediates international social capital. Our theoretical developments are based on internationalization process theory and social network theory. Using data on 239 internationalizing SMEs, our results confirm that the effect of international social capital on opportunity exploitation is only mediated via market-specific social capital. Hence, we identify an internationalization process for social capital development in international business opportunity exploitation. Our contribution adds in several ways to existing international business research.
Multinationals (MNCs) need to find the balance between developing a globally standardized organizational culture and having multiple locally- adapted organizational cultures. Past literature embodies the bias that differences between MNC units, unless managed, would lead to adverse consequences. To counter this negative bias, we focus on cultural fit, which is the amount of difference yielding maximum benefit. We argue that depending on comparison criterion and desired outcome, fit could be achieved by establishing similarities or maintaining differences. Using evolutionary economics, we explore knowledge transfer within MNCs and test our hypotheses on fit using a unique dyadic dataset from 186 MNCs.
This study focuses on how power is gained within large organizations, such as the intra-organizational network of MNCs. Drawing on resource dependence literature, this study develops and empirically tests a set of hypotheses aimed at explaining the multifaceted nature of power and decision making in multinational firms. Data collected from 2107 foreign-owned subsidiaries in seven European countries is used to test the hypotheses. The results indicate that mutual dependence and dependence imbalance provide strong explanations for subsidiary power. Furthermore, subsidiary power over strategic decisions in the MNC is gained through functional power, notably the possession of technological, rather than business-related, power or by the possession of both as they reinforce each other in strengthening the subsidiary's strategic power in the MNC network. © 2013 Elsevier Inc. All rights reserved.
Knowledge-based and network-based activities are known determinants of foreign subsidiary influence. We demonstrate that the interaction between these factors is essential in understanding how subsidiaries gain influence within an MNC. We test this using data on 184 foreign-owned subsidiaries in the UK. The results indicate that the possession of strategic resources (knowledge or embedded relations) increases subsidiary influence only when the knowledge is transferred back to headquarters. Importantly, the impact of subsidiary-headquarters embeddedness, external embeddedness and knowledge development on influence is mediated by the extent of reverse knowledge transfer. This mediating role sheds new light on the antecedents to subsidiary influence. © 2013 Elsevier Inc.
The present study focuses on effects of subsidiary internal knowledge-based activities knowledge transfer and reverse knowledge transfer and absorptive capacity on local responsiveness. We also examine whether absorptive capacity, shared values, and psychological safety, representing constituents of the motivation-opportunity-ability model of behavior, moderate relationships of subsidiary internal knowledge-based activities with responsiveness. Based on a sample of 173 Chinese subsidiaries, the results suggest knowledge transfer and absorptive capacity facilitate local responsiveness. Shared values moderates positively and absorptive capacity negatively, the relationship between knowledge transfer and responsiveness. Psychological safety strengthens the link between reverse knowledge transfer and local responsiveness.
This paper investigates local vertical linkages of foreign subsidiaries and the dual role of such linkages as conduits for learning as well as potential channels for spillovers to competitors. On the basis of data from 97 subsidiaries, we analyze the quality of such linkages under varying levels of competition and subsidiary capabilities. Our theoretical development and the results from the analysis document a far more complex and dynamic relationship between levels of competition and MNCs' local participation in knowledge intensive activities, i.e. learning and spillovers, than previous studies do. We find a curvilinear relationship between the extent of competitive pressure and the quality of local linkages confirming our argument of a trade-off between learning prospects and spillover risks. Furthermore, the level of subsidiary capabilities moderates this relationship.
The purpose of this editorial, and the special issue, is to initiate a dialogue about the role of time in international business (IB) scholarship. While time is inherent in IB phenomena, it has, to date, received limited attention in IB research and theorizing. When IB scholars do account for time, they generally adhere to assumptions representing time as linear and objective. We discuss the importance of time in the philosophical, conceptual, and methodological domains of IB, defining each of these three interconnected domains, problematizing their dominant assumptions about time, and suggesting potential avenues for rethinking time in IB.
This study explores how different kinds of knowledge of founders and managers at Born Globals are related to the firms' discovery and exploitation of foreign market opportunities. Based on data from eight biotech Born Globals, we dichotomized Born Globals into two subsets: Born Industrials and Born Academics. The study shows that the founders' and managers' different combinations of technological and international knowledge impact the firms' proactive or reactive behavior in discovering foreign market opportunities. The results indicate that different kinds of Born Globals follow different internationalization processes and that Born Globals, therefore, should not be analyzed as a homogenous group, which has been the common perspective in previous research. (C) 2007 Elsevier Inc. All rights reserved.
There is an urgent need in the field of international entrepreneurship to elucidate how SMEs can pursue new opportunities in a digital international business environment. The purpose of this study is to examine, by using effectuation theory, the processes by which retail SMEs develop international e-commerce in foreign markets. This research is based upon qualitative data from three Swedish retail-SMEs. This study makes a theoretical contribution to international entrepreneurship research by providing more granular insights into the actual drivers of e-commerce internationalisation. In particular, this study illustrates how capabilities underlie the processes of international e-commerce development.
Knowledge is critical to the survival of emerging economy multinationals (EMNEs), who are confronted by a lack of internal competitive capabilities and external challenges associated with diverse institutional environments. They thus must manage and orchestrate their knowledge globally for ultimate catch up. This article systematically reviews literature concerning EMNE knowledge management using content analysis of 93 articles in 17 leading journals across 7 major disciplines from 2000 to 2020. Applying the antecedent-process-outcome (APO) framework, we identify three major themes: knowledge-seeking strategy, knowledge transfer and innovation. We discuss knowledge frontier issues, directions for future scholarship, and avenues for greater interdisciplinary cross-fertilization.
Transfer of knowledge-based resources from acquirers to the acquired units has been ubiquitously emphasized as an important driver of post-acquisition integration. Equally emphasized is the importance of recipient unit’s absorptive capacity for the success of knowledge transfer and the facilitating role of HRM practices in developing absorptive capacity. In this paper, we integrate different streams of research on post-acquisition integration, knowledge transfer, absorptive capacity and HRM practices. Different from most past research, we pay attention theoretically and empirically to the multi-dimensional nature of both knowledge transfer and absorptive capacity. We test our hypotheses on a sample of acquired Chinese subsidiaries of 181 multinational corporations from seven countries. We find that successful inflow and implementation of knowledge require the acquired unit to have distinct types of capabilities each of which can be developed by a specific HRM practice. These results contribute literature by recognizing absorptive capacity as a manageable capability and identifying how different components of this capability could be developed by specific HRM practices. Furthermore, our results shed light on human side of M&As by examining how companies can foster post-acquisition integration by fine-tuning the absorptive capacity of acquired units.