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Theoretical justification of sampling choices in international marketing research: key issues and guidelines for researchers

Journal of International Business Studies 2003 34(1), 80-89
Sampling in the international environment needs to satisfy the same requirements as sampling in the domestic environment, but there are additional issues to consider, such as the need to balance within-country representativeness with cross-national comparability. However, most international marketing research studies fail to provide theoretical justification for their choice of sampling approach. This is because research design theory and sampling theory have not been well integrated in the context of international research. This paper seeks to fill the gap by developing a framework for determining a sampling approach in international studies. The framework is based on an assessment of the way in which sampling affects the validity of research results, and shows how different research objectives impact upon (a) the desired sampling method and (b) the desired sample characteristics. The aim is to provide researchers with operational guidance in choosing a sampling approach that is theoretically appropriate to their particular research aims.

National and Organizational Culture Differences and International Joint Venture Performance

Journal of International Business Studies 2002 33(2), 243-265 open access
This study examines the effect of dimensions of national and organizational culture differences on international joint venture (IJV) performance. Based on data from a survey of executives from joint ventures between Indian partners and partners from other countries, we found that the presumed negative effect from culture distance on IJV performance originates more from differences in organizational culture than from differences in national culture.

An Investigation of the Relationship between International Activities and Capital Structure

Journal of International Business Studies 1997 28(3), 563-577
This paper investigates the effect of international activities on capital structure as measured by a debt ratio. Prior studies have examined factors that affect the debt ratio for both multinational corporations (MNCs) and domestic corporations (DCs); however, the incremental explanatory power and the direct effect of the extent of international activities on capital structure have not been tested. This paper uses multiple regression analyses to add measures of international activities after controlling for measures pertinent to both MNCs and DCs. Using a sample of 18,495 observations from the Compustat Tape, we find 1) consistent with results reported by prior studies, the debt-equity ratio is negatively related to both bankruptcy costs and growth options; 2) after controlling for bankruptcy costs and growth options, MNCs have lower debt-equity ratios than DCs; 3) within the MNCs, the debt-equity ratio is positively related to the degree of internationalization, and this calls for further investigation.

Ownership-Based Entry Mode Strategies and International Performance

Journal of International Business Studies 1994 25(2), 253-273
This study examines the relationship between ownership entry modes and performance. The ownership entry modes examined are the wholly owned modes of acquisition and new venture entry, and the non-wholly owned mode of joint venture entry. A theoretical relationship is developed for international entry modes that is based on the contingency characteristics of resource requirements and organizational control factors. This model suggests that different entry modes have different performance outcomes based upon their resource and organizational control demands. The theoretical model, although developed using the eclectic theoretical approach, is based largely on concepts and relationships previously delineated in contingency theory. Our hypotheses suggest that new ventures should outperform joint ventures, and joint ventures should outperform acquisitions. An empirical test using a sample of 321 Japanese firms entering the North American market provides supporting evidence.

Fit, misfit, and beyond fit: Relational metaphors and semantic fit in international joint ventures

Journal of International Business Studies 2015 46(7), 830-849
We propose that metaphorical descriptions of newly formed international joint ventures (IJVs) contain important, diagnostic information regarding the way these cross-border alliances are managed and perform. In three studies, we examine how relational metaphors reflect semantic fit, or the IJV partners’ cognitive match of managerial schemas and their capability to recontextualize communications regarding alliance operations. We find IJV partners that share relational metaphors achieve superior outcomes, reflecting aligned managerial approaches to controlling shared resources and joint activities. Further, formal ownership as equity share moderates the impact managerial schemas implied by metaphors have on subjective, time-lagged performance of IJVs. Our analysis of metaphorical language not only reveals the way newly formed IJVs are managed, but also highlights performance variations associated with complex patterns of IJV controls.

The contest for value in global value chains: Correcting for distorted distribution in the global apparel industry

Journal of International Business Studies 2022 53(8), 1836-1840 open access
Journal of International Business Studies (2022). https://doi.org/10.1057/s41267-022-00541-7 In their book The Contest for Value in Global Value Chains, Lilac Nachum and Yoshiteru Uramoto ask one of the most important – and unanswered – questions in international business and supply chain research: Who appropriates the value created in global value chains (GVCs) and why? The authors examine this question by focusing on the global apparel supply chain and on Bangladesh as the producing country. The book stands out by providing a holistic analysis of GVCs, from labor to manufacturers, buyers, and consumers. It paves the way for a more systemic understanding of value creation and appropriation in GVCs with critical implications for research, practice, and policy-making. According to Nachum and Uramoto, research has increasingly shown that there is a misalignment between value creation and value appropriation (also referred to as ‘‘value capture’’) in GVCs. The authors define value creation as the net value added to a supply chain by each participant (measured as sales – purchases), whereas value appropriation is defined as the share of gains of total value created by a supply chain (measured as total income – total costs). Value creation is thus mainly linked to productive capabilities in collaborative processes ‘‘driven by a common goal shared by the participants’’ (p. 15). It requires high levels of reciprocal interdependencies, and it can be described as a win–win scenario for participants. By comparison, value appropriation is linked to the product’s perceived value for consumers and their willingness to pay. The participants in the GVC have conflicting interests, and variations in power among the actors result in value distribution becoming a zero-sum game. Journal of International Business Studies (2022) a 2022 Academy of International Business All rights reserved 0047-2506/22 www.jibs.net

Brand credibility and marketplace globalization: The role of perceived brand globalness and localness

Journal of International Business Studies 2021 52(8), 1559-1590
Consumers in Western markets are increasingly critical towards globalization and re-embrace local values. Companies thus must decide whether to continue to pursue global branding strategies and/or rejuvenate local branding strategies. To explore the implications of market globalization for consumer preferences, we use signaling theory to investigate the role of perceived brand globalness (PBG) and brand localness (PBL) as signals of brand credibility, related downstream effects and boundary conditions, across two countries with differing levels of globalization. In globalized markets, PBG is a weaker signal of brand credibility than PBL, whereas in globalizing markets, the two signals are of equal importance.

Different shades of green: Global oil and gas companies and renewable energy

Journal of International Business Studies 2021 52(5), 879-903
The long-term energy transition from fossil fuels to renewable energy raises critical questions about the future of oil and gas firms. This study asks why some oil and gas firms are committed to renewable energy while others continue to maintain a distinct fossil fuels focus with little or no investment in renewable energy. The analysis reveals that there is a wide range in the degree to which oil and gas firms have invested in renewable energy. Some firms have no investments and others have investments in multiple renewable energy technologies across many countries. We examine a combination of country-based institutional factors and firm-based knowledge and experience factors that could impact oil and gas firms’ decisions to invest in renewable energy activity. Regulative and normative pressures impacted renewable energy investments as did environmental citizenship and the degree of internationalization. The study’s integration of country-level factors with firm-level experiences provides insights into how firms are dealing with the energy transition. By examining areas such as sustainability and regulatory policy, the paper sheds light on the ways in which scholars can tap into measures and methods that can extend traditional IB research.

Core or periphery? The effects of country-of-origin agglomerations on the within-country expansion of MNEs

Journal of International Business Studies 2018 49(8), 942-966 open access
We show how the initial subnational entry location of foreign multinational enterprises (MNEs) in China influences their subsequent within-country location choices and expansion speed. We distinguish between MNEs that establish their first subsidiary in co-ethnic cores – dense agglomerations of other firms from the same country of origin – and MNEs that locate their first subsidiary in the periphery, i.e., outside of these co-ethnic cores. To identify co-ethnic cores in China, we employ a geo-visualization methodology, which draws the boundaries of cores organically and dynamically over time. We contrast our findings with the prevailing approach of using static administrative boundaries for identifying agglomerations. Our results provide evidence of path dependency, in that (a) entry through subnational locations with strong co-ethnic communities is followed by expansion into other locations where co-ethnic communities are present, and that (b) entry through co-ethnic communities accelerates the pace at which MNEs establish additional subsidiaries in China. We also find that co-ethnic community effects continue to influence within-country MNE activities over time, despite a host of economic, institutional, and investment developments.

Anonymous shell companies: A global audit study and field experiment in 176 countries

Journal of International Business Studies 2017 48(5), 596-619
To test whether firms behave consistently with international law prohibiting anonymous incorporation, we conducted a global audit study and field experiment, using data from 1639 incorporation firms in 176 countries. We requested anonymous incorporation and randomly assigned references to international law, threat of penalties, norms of appropriate behavior, or a placebo. We find a substantial number of firms willing to flout international standards and show that those in OECD countries proved significantly less compliant with rules than in developing countries or tax havens. Firms in tax havens displayed significantly greater compliance and were sensitive to experimental interventions invoking international law.