Session 375

Changing External Environments: How do Multinationals Respond?

Track G

Date: Monday, September 22, 2014

Track X

Time: 14:45 – 16:00

Paper

Room: Rotterdam


Session Chair:

  • Timothy Devinney, University of Leeds

Title: CEO Departure in Cross Border M&As: Cultural Distance and the Moderating Role of International Experience

Authors

  • Lucia Piscitello, Polytechnic University of Milan
  • Cristina Rossi Lamastra, Polytechnic University of Milan
  • Andrea Boellis, Polytechnic University of Milan

Abstract: The present paper investigates whether and how target CEOs bridge cultural distance in cross-border acquisitions. Originally enough, we integrate mainstream literature on cross-border acquisitions with insights from theories which are inherently micro-founded and put individuals at the core of their inquiring. Specifically, taking inspiration from the Upper Echelons Theory, we argue that the probability of target CEO departure in post-acquisition decreases with the cultural distance between the acquirer and the target. Moreover, this relation is negatively moderated by the general and specific international experience of the target CEO. Preliminary estimations on a sample of 93 acquisitions support our conjectures.

Title: Does Offshoring R&D Lead to Higher Firm Growth?

Authors

  • Mehmet Demirbag, University of Essex
  • Gokcen Arkali Olcay, Istanbul Sehir University
  • Jonathan Doh, Villanova University

Abstract: This paper empirically tests the impact of offshoring R&D projects on firm’s future sales growth based on a data set of 648 firms tracked between years 2005 and 2009. Using propensity score matching (PSM) technique, the differences in future sales growth of the two groups (offshore vs. non-offshore) are compared. The empirical analyses are performed on firm-year observations where the treated (offshore) units are matched to the untreated (non-offshore) units to reduce bias between the groups and make the two groups more similar. The propensity scores used in matching are calculated based on a number of firm characteristics such as firm size, firm’s share of total sales outside home region, industrial sector and geographical region. The findings are that firm size and sales outside home region significantly contributes to the probability of offshoring, which in turn results in higher future sales growth.

Title: From Domestic IPO to Venturing Overseas by Entrepreneurial Start-Ups: A Change-Based Momentum Perspective

Authors

  • Lin Cui, Australian National University
  • Sali Li, University of South Carolina
  • Haijian Liu, Nanjing University

Abstract: Entrepreneurial start-ups face liability of smallness and foreignness in their pursuit of international growth. From a change-based momentum perspective, this study examines how the surpassing of liability of smallness through domestic initial public offering (IPO) will help start-ups gain momentum in overcoming liability of foreignness to initiate foreign direct investment (FDI). We propose that the success of a preceding strategic change (e.g., IPO) will have a positive effect on initiating a subsequent strategic change (e.g., FDI) by promoting change-based momentum. Furthermore, such momentum mechanism is influenced by organizational and environmental contexts. Specifically, firm financial slack, international experience, top management team faultline, industrial dynamism and environmental magnificence will moderate the effect of IPO success on FDI likelihood of start-ups. We test our hypotheses with a panel of indigenous start-ups listed in the SME COMPOSITE in China from 2004 to 2012.

All Sessions in Track G...

Sun: 08:00 – 09:15
Session 389: Managing the Multinational Organization in an Increasingly Complex World
Sun: 09:30 – 10:45
Session 221: Global Stakeholder Networks
Session 390: Local Determinants of Competitive Advantage and Disadvantage
Sun: 11:15 – 12:30
Session 2: Offshore Outsourcing, Dynamic Capabilities, and the Changing Nature of Firm Boundaries
Sun: 15:45 – 17:00
Session 270: Innovation in MNCs and Global Networks
Session 371: Inter and Intra Organizational Learning Across Borders: A Knowledge Management Perspective
Session 380: Small, Young and Entrepreneurial Firms: A Unique Perspective in Globalization
Sun: 17:15 – 18:30
Session 603: Global Strategy IG Business Meeting
Mon: 08:00 – 09:15
Session 335: Internationalization and Strategic Decisions
Session 379: Emerging Markets: Understanding the Importance of Context
Mon: 11:00 – 12:15
Session 372: The Challenges of Global Operations: Managing R&D and Complexity
Session 373: Global Diversification: Governance and Performance Implications
Mon: 14:45 – 16:00
Session 375: Changing External Environments: How do Multinationals Respond?
Session 381: Firm boundaries in Multinational Organizations: Antecedents and Consequences
Session 414: Global Networks and Business Groups
Mon: 16:30 – 17:45
Session 226: Culture, Norms and Institutions: The contextual influences on Entrepreneurship
Session 374: Antecedents and Consequences of Multinational Location Decisions
Session 382: Drivers of Multinational Performance:What, Where and When?
Tue: 08:00 – 09:15
Session 383: Globalization of R&D: Implications for Learning and Innovation
Tue: 11:00 – 12:15
Session 376: Headquarters Subsidiary Relationship: New Approaches to an Old Question
Session 384: Multinational Location Decisions: New Approaches Across Different Perspective
Tue: 15:30 – 16:45
Session 263: Innovation Models in Emerging Economies
Session 377: Organizing Assets Across Borders: Drivers and Consequences
Session 385: Multinational firms and the External Environment: The Role of Institutions
Tue: 17:15 – 18:30
Session 378: Global Outsourcing & Offshoring: Implications for Multinational Decisions

All Sessions in Track X...

Sun: 13:45 – 14:30
Session 295: Keynote: Lifetime Achievement Award
Sun: 14:30 – 15:15
Session 471: Keynote: CK Prahalad Award
Sun: 15:45 – 17:00
Session 203: Acquisition Implementation
Session 215: Yikes: What Now (Reloaded)?: Firm Responses to Stakeholder Activism
Session 398: Corporate Strategy and Corporate Finance: Continuing the Research Conversation
Mon: 08:00 – 09:15
Session 260: IPRs, Appropriability and Innovation
Session 338: Making Strategy, Strategic Change and the Role of Sensemaking and Sensegiving
Mon: 09:30 – 10:30
Session 296: How Social Networks Create Competitive Advantage: The Microfoundations Reputation
Mon: 11:00 – 12:15
Session 213: What is In It For Us? How Sustainability Matters for Firm Strategy
Session 352: CEO Decision Making
Session 405: Multi-Sided Platform Strategies
Mon: 13:30 – 14:30
Session 4: Business Models in their Competitive Context
Session 5: Building Strategic States
Session 298: Using Networks to Shape Strategy
Session 299: Dealing with the Euro Area Economic Crisis: Strategic Adjustment in the Period of Turmoil
Session 300: Methodological and Conceptual Frontiers in the New World of Networks
Mon: 14:45 – 16:00
Session 368: Firm Scope and Industry Competition
Session 375: Changing External Environments: How do Multinationals Respond?
Mon: 16:30 – 17:45
Session 245: Human Capital Complementarities
Session 344: Paradoxical Tensions and Innovative Strategies
Tue: 08:00 – 09:15
Session 409: Increasing the Relevance of Strategy Research
Session 446: Empirical Studies and Case Studies of Business Models
Tue: 09:30 – 10:30
Session 297: Granularity of Profit
Tue: 11:00 – 12:15
Session 469: M&As and Innovation
Tue: 14:15 – 15:15
Session 301: Strategy Frameworks: In Quest of Relevance in a Turbulent World
Session 302: Directing Strategy: The Process Challenges of Formulating and Implementing Strategy in a World of Networks
Session 470: Governance Challenges in Globalized Networks
Session 473: Rethinking the Architecture of Global Corporations
Tue: 15:30 – 16:45
Session 208: Interactions, Recombination and Adaptation Processes
Session 346: Management and Strategy Practices Reconsidered
Tue: 17:15 – 18:30
Session 441: Funding Entrepreneurial Ventures: Sources and Successes


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