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Purpose The purpose of this paper is to investigate the relationship between international diversification (ID) and performance in multinational firms by proposing a new and unified theory of multinationality that incorporates, integrates and extends previous concepts and hypotheses.Design/methodology/approach The study relies on data concerning the world’s largest companies, derived from the Fortune Global 500. An OLS regression analysis has been carried out in order to test a four-stage relationship between ID and performance.Findings On a final sample of 391 multinationals, this paper provides an empirical evidence that support the existence of a four-stage theory by using a relevant sample of “top” multinational firms.Research limitations/implications This study has two main limitations: first, a single indicator was used to measure ID; second, some potential variables have had to be excluded due to data availability.Practical implications This paper offers some intriguing practical implications, as well: first, it points out to some thresholds where performances are higher at certain level of ID; second, it highlights that performance will face two kinds of decreases due to intra-regional and inter-regional liability of foreignness; finally, it individuates differences with regard to some firms’ characteristics such as home or host country’s behaviors and about the kind of industries in which they operate, as well.Originality/value This is one of the first studies that tests and finds positive evidences about a four-stage theory, regarding to the relationship between ID and performance. Moreover, it proposes other interesting results with regard to the differences between home vs host country-oriented firms and between manufacturing vs services multinational firms. [ABSTRACT FROM AUTHOR]

Purpose – The purpose of this paper is to provide empirical evidence of international rent sharing in multinational enterprises. It looks at changes in rent sharing before and after the acquisition of a company by a foreign entity, and assesses the role of target and acquirer profitability in the wage setting process for the target firm. It therefore contributes to the evaluation of the impact of a form of globalization (inward foreign direct investment (FDI)) onto wages. Design/methodology/approach – The authors use a unique firm level longitudinal dataset of M & As in Belgium between 1998 and 2010. The authors construct a micro-level dataset containing takeover and accounting information for target and acquiring firms. The empirical set up permits to net the estimates from selection effects in the choice of target firm, using propensity score matching and a difference-in-difference approach. Findings – The authors find evidence that the deal does not significantly affect the degree of domestic rent sharing, but it enables international rent sharing. The authors qualify the results in terms of the acquirer’s location, industry link with the target and controlling stake. Further robustness specifications include different profits and controls, and a comparison with a sample of domestic acquisitions. Research limitations/implications – The sample of matches for acquired firms is constructed using propensity scores, which may not perfectly capture the differences between targeted and non-targeted companies. Although estimates should be net of selection effects, other sources of endogeneity may still make the estimates inconsistent. Practical implications – Updating the discussion on the labor market consequences of globalization, and on foreign takeovers in particular. Social implications – The discussion on international takeover should take into account not only the extensive margin (i.e. labor adjustments) but also salaries. The authors argue that through a precise channel (rent sharing) international takeovers of domestic companies may benefit the domestic labor force. Originality/value – The dataset was constructed for the purposes of this analysis; rent sharing is tested in a takeover scenario for the first time, thus avoiding selection biases. [ABSTRACT FROM AUTHOR]

Purpose – This paper aims to examine the effect of R&D teams’ gender diversity on different innovation outputs. The paper argues that some innovations are best positioned to capitalize on the benefits of gender diversity because of the greater relevance of market insight and personal interactions. Moreover, it argues that gender diversity is not a source of innovation for foreign firms because of the subsidiaries’ role in the multinational group, the tacit nature of gender policies and the institutional distance between multinationals’ home and host countries. Design/methodology/approach – Drawing from data of the Spanish Survey of Technological Innovation Panel de Innovación Tecnológica (PITEC), this study uses multivariable probit models that allow for systematic correlations among the different innovation outcomes to determine the impact of R&D workforce gender diversity on the likelihood of introducing different innovation outputs. Findings – Allowing for systematic correlations among different innovation outcomes, results indicate that the relationship between gender diversity and product and process innovation has the shape of an inverted-U, while there is a positive linear association with service innovation. Moreover, gender diversity produces a greater impact on product innovation than on process innovation. Results also indicate that while gender diversity fosters every innovation outcome of domestic firms, it only contributes to foreign firms’ services innovation in a positive non-linear way. Research limitations/implications – Because of the availability of data, this paper has focused on how firms’ multinationality and group affiliation influence the relationship between gender diversity and innovation; however, other firms’ differences might also play a role on the effectiveness of the R&D workforce’s gender diversity. Firms differ on strategies, structures and capabilities (Nelson, 1991), and these differences may condition the potential of gender diversity. Therefore, this paper opens future research lines. Practical implications – Innovative firms should be concerned with human resource management practices for gender diversity regardless of their innovation output strategy. However, managers should not consider forming teams with equal proportions of men and women. Those firms aiming at introducing innovations that involve interactions among internal and external agents and those that require a better interface with the marketplace will benefit more from gender diversity than those firms pursuing innovations related to the solution of technical problems. Finally, the paper shows that foreign subsidiaries have problems with the implementation of gender policies, especially when it comes to service and process innovation activities. Originality/value – This paper contributes by examining the influence of two contextual factors that may affect the relationship between gender diversity and innovation. First, it examines how gender diversity affects the likelihood of introducing different innovation outputs (product, service and process) as the different tasks required by each innovation represent different contexts that may affect the effectiveness of gender diversity. Second, the paper analyzes whether the influence of R&D workforce’s gender diversity on innovation outputs is different for domestic and foreign firms as foreign firms’ national culture, organizational culture, strategy and HR practices differ from those of domestic firms. [ABSTRACT FROM AUTHOR]

Purpose – The purpose of this paper is to provide an empirical assessment of the degree to which global firms have penetrated markets in emerging countries in the new millennium. The focus is on the "big four" emerging countries of Brazil, Russia, India, and China (BRIC), and the study examines penetration in three product categories: beer, hair care, and carbonated soft drinks. Design/methodology/approach – The conceptual development draws on a normative-descriptive framework, predicting the behavior of multinationals from normative models of their strategic behavior. Predictions are evaluated against market share data for the multi-domestic product categories. Findings – Multinationals with strong global brands will introduce their global brands and be successful also in multi-domestic local markets where preferences differ across countries. However, the key to success is not always their global brands, but could equally likely be an acquired local brand. Some local brands successfully defend their markets, and even venture abroad into neighboring regions. Research limitations/implications – Globalization does not mean the success of global brands as much as success of global firms. In the end, the penetration of local emerging markets is not necessarily from global brands, but from global companies with acquired local brands. Originality/value – The paper establishes that any fear of elimination of valued local brands is overblown. It also helps dispel the myth that emerging countries cannot develop strong international brands on their own. But one issue remains: the financial clout of global firms is difficult for emerging firms to counter. [ABSTRACT FROM AUTHOR]

Purpose - To build a conceptual framework for the development of branding strategy from the pint of view of a Western firm entering a market in a developing economy. Design/methodology/approach - An extensive literature review brings together two research streams, market entry and branding strategy, with particular reference to corporate branding versus product branding. Findings - The choice of branding strategy is determined in the conditions under study by five antecedent factors and three moderating variables, which are expressed as a visual model and eight propositions. Practical implications - In a rapidly developing world, this framework and the literature review from which it is derived offer applicable marketing intelligence to planners of branding strategies for international markets. The eight propositions suggest fruitful directions for further academic research. Originality/value - Draws together two streams within the marketing literature in an original way, and offers a framework for the conceptualisation of an important element of marketing strategy in challenging market conditions. [ABSTRACT FROM AUTHOR]