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Role transition is increasingly common in multinational enterprises (MNEs) and presents a significant challenge for individual actors. Studies to date have presented a static understanding of key actors' roles in the MNE, particularly those in subsidiaries that are confined to a local geographical context. Combining insights from role transition with subsidiary management literature, our qualitative study explores the lived transitional experiences of actors who exit their subsidiaries and progress to assume a corporate role. We find that subsidiary actors entering and enacting corporate roles confront a high-magnitude transition with significant contrast and discontinuity. Specifically, our findings show that individuals make the transition by easing psychological, relational, and socio-political tensions within local, global, and corporate exchanges. This involves detaching from a subsidiary role that had clearly defined boundaries, limited scope and discretion, and low complexity, and transitioning to a corporate role that is ambiguous, expansive, and extremely challenging. In contrast with conventional practice, this transition did not involve a physical relocation to corporate headquarters (CHQ), but corporate roles were enacted remotely in the local subsidiary, which intensified transitional tensions. In this context, a seamless transition may not always be the most effective approach, and holding on to some core features of the exited role may serve as a 'transitional bridge' to enacting the new role. Our findings expand the reach of studies on role transition by disentangling how a high-magnitude transition compels a subsidiary actor to refashion their identity, network, and behaviour. [ABSTRACT FROM AUTHOR]

Artificial intelligence (AI) has far-reaching implications on not only where and how multinational enterprises (MNEs) create and capture value but also how they impact broader society and the natural environment. This paper theorizes and examines how MNEs' AI capabilities affect the adoption of climate actions in global supply chains. Drawing on the characteristics of AI as a general purpose technology (GPT), we propose that AI capabilities can be harnessed by MNEs to provide their supply chain factories worldwide with innovative solutions tailored to accommodate the local circumstances and complex challenges faced by these suppliers, thereby enhancing their environmental capabilities to afford climate actions. We further argue that while unleashing the full potential of AI as a GPT requires investments in intangibles, large intangible investments compel MNEs to trade off economic and non-economic goals, thus hindering the allocation of AI capabilities for promoting climate actions in global supply chains. Our arguments are supported by strong evidence derived from a unique dataset of AI-related patents which we integrate with a proprietary database on the climate actions of 203 global brands across 19 countries in Chinese supply chains. Our findings offer important implications for international business and management theory. [ABSTRACT FROM AUTHOR]

Drawing on the institutional literature as it relates to liability of foreignness and strategies to overcome those liabilities via legitimacy-enhancing strategies, we suggest that ESG performance bestows legitimacy upon foreign firms and enhances their prospects for survival. We also investigate two country-level factors that moderate the effect of ESG performance on capital market survival: the political affinity and FDI interdependence of the home and host country. High political affinity signifies aligned national interests and thus reduces perceived regulative distance and associated political risks and legitimacy concerns faced by foreign firms and therefore lessens the benefits of higher sustainability performance. Higher levels of FDI interdependence between host and home country enhances the cognitive legitimacy of a foreign firm, reducing the benefits of ESG performance as a legitimacy signal. We test our intuition on a sample of 829 foreign firms that were listed on U.S. stock exchanges between 2010 and 2021 and find support for our hypotheses. [ABSTRACT FROM AUTHOR]

This inductive study explores on the basis of 134 semi-structured interviews the impact of cultural identity on highly qualified migrants' cultural and language bridging skills. We find that cultural identity impacts migrants' cultural and language bridging skills, prompting differences not only between generations but also within them. On this basis, we establish two sub-groups of first generation migrants: those with a separated identity (heritage culture is dominant) and those with an ambiguous identity (cultural choice decided by context); similarly, we find two sub-groups of second generation migrants: those with an integrated identity (combined and balanced cultures) and those with an assimilated identity (mainstream culture is dominant). We further ascertain that migrants with an integrated identity, encompassing a balanced identity of both heritage and mainstream cultures, possess the highest degree of cultural and language bridging skills. Our study provides a more nuanced understanding of migrants' cultural identity formation and their impact on skilled migrants' cultural and language bridging skills. [ABSTRACT FROM AUTHOR]

The international business (IB) literature offers valuable insights into the significance of institutional environments for multinational enterprises (MNEs) operating in different markets. However, less is known about the practical institutional challenges confronting mature MNE subsidiaries in weak institutional contexts, such as those in Africa, and how corporate governance mechanisms are deployed to address these challenges. Relying on institutional theorising and qualitative evidence from 34 interviews with executives of mature MNE subsidiaries in Nigeria, this paper documents three less-researched institutional challenges encountered by MNEs, i.e., the organisational identity conundrum ('us vs them'), limited attention to social capital, and 'word vs action' contradictions. The study also frames three corporate governance-related themes that MNEs can use to manage institutional difficulties in Nigeria: enhanced local stakeholder engagement, accountability drivers, and use of innovation and technology. The study advances the IB literature as it sheds theoretical as well as practical insights into how mature MNE subsidiaries operating in a weak institutional context can overcome institutional challenges. [ABSTRACT FROM AUTHOR]

This study examines how host countries' environmental pollution influences multinational enterprises' (MNE) foreign investment. Prior research highlights a "race to the bottom", or the "pollution haven" effect, where MNEs are drawn to countries with lax environmental policies to evade pollution abatement. We argue that environmental degradation in a host country can inflict pollution costs—namely, elevated operational and reputational costs—to dissuade MNE foreign investment, leading to a race from the bottom instead. We find empirical evidence for this proposition in a panel of 1,317 U.S. MNEs and their foreign investments across 101 countries from 2006 to 2019. We find a negative relationship between a host country's environmental pollution and an MNE's foreign investment in this country. Moreover, MNEs' inclination to reduce investment in pollution havens depends on two strategic assets that moderate firm sensitivity to pollution costs: green innovation leaders are less likely to retreat since they can leverage environmental technologies to offset pollution-induced operational costs, whereas environmental performance leaders often sustain high reputational damages from pollution haven investment and are thus more likely to race from the bottom. Our findings contribute to the literature on pollution haven and MNE foreign investment research. [ABSTRACT FROM AUTHOR]

Climate change imposes substantive global challenges on multinational enterprises (MNEs). One crucial approach to addressing these challenges hinges on the development of new technologies that can mitigate climate change or adapt to its adverse effects. However, it remains unclear what factors can effectively motivate MNEs' development of climate innovation. Building on the resource dependence theory, we argue that MNEs' strategic behaviors are shaped by their dependence on ecology and government. When exposed to elevated climate risks and/or stringent climate policies, MNEs may engage in climate innovation as a strategic response to assuage the uncertainty associated with their ecological dependence and political dependence. While ecological dependence instills a fundamental incentive for climate innovation, MNEs may adopt alternative strategies to avoid or manipulate political dependence, which can divert resources from climate innovation. We thus expect an MNE's exposure to global climate risks and climate policies to drive its climate innovation, but the effect of climate risk exposure on innovation is stronger (weaker) when the MNE faces more lenient (stringent) climate policies. We find evidence for our hypotheses in a panel of MNEs listed in the United States from 1995 to 2017. Our findings contribute to research on resource dependence theory, climate risk and policy, and technological innovation in a global context. [ABSTRACT FROM AUTHOR]

Evidence suggests that language diversity and the asymmetric fluency of corporate lingua franca among employees negatively affect social integration, knowledge sharing and performance in the workplace. We explore the boundary conditions that might mitigate such negative consequences. Our research context is a multilingual firm where English is mandated as the corporate lingua franca and employee English fluency is generally low. Utilizing a mixed-methods approach and longitudinal design across three studies, we discover an informal network, Language Advice Network (LAN), in which individuals with varying levels of English fluency seek and share language-related knowledge. Contrary to extant research findings, our analysis shows that individuals actively seek language advice from fluent speakers, forming ties between fluent and less-fluent English speakers across different language clusters in the organization. It is the low English fluency of the majority of employees and the strict English language mandate that drives connection between individuals who may otherwise segregate. We also find that language-advice giving is positively associated with the advisors' annual performance rating, indicating that management recognition and rewards play an important role in sustaining the informal language advice network. Our findings provide fresh theoretical insight on the relationship between corporate lingua franca, social integration and knowledge sharing, and management implications for fostering social integration, particularly in contexts of high first-language diversity. [ABSTRACT FROM AUTHOR]

Extending property rights theory, this article conceptualizes an emerging-economy multinational (emerging multinational or EMNE) as a collection of assets over which the EMNE has residual control, gained predominantly through cross-border acquisitions. Two intertwined puzzles emerge: (1) Why do EMNEs often bid higher for targets in developed economies? (2) Why do EMNEs tend to allow such targets significant autonomy? As two sides of the same coin, the two puzzles beg the question of whether an integrative answer exists. Leveraging property rights theory, complemented by a legitimacy-based view, we propose that an answer may lie in EMNEs' efforts to simultaneously maximize joint value creation, minimize target incentive loss, and overcome legitimacy deficits. [ABSTRACT FROM AUTHOR]

This study investigates how inter-state political tensions affect the innovation performance of foreign R&D subsidiaries in the host country, and how this impact varies according to the number of the subsidiary's local same-parent sisters and innovation partners. Using a sample of Chinese listed firms' foreign R&D subsidiaries, we find subsidiaries are less likely to be innovative when there is an increasing political tension between home and host countries. The number of local same-parent sisters of a foreign R&D subsidiary can exacerbate the negative effect of unfriendly political relations on its innovation pursuits, while its local innovation partners can help mitigate such an adverse impact. Overall, our findings shed light on how bilateral political tensions adversely impact MNE subsidiary innovation and demonstrate boundary conditions for such adverse effects. [ABSTRACT FROM AUTHOR]

The decoupling between China and the United States has become a major topic in the context of deglobalization. Several studies have explored the factors that drive decoupling and analyzed its implications for multinational firms. However, in most cases, firms are portrayed as passive actors who are left to deal with the consequences of this process. To address this issue, we propose a framework that describes decoupling as a bargaining process between firms and states. We start by outlining a bilateral bargaining framework and then expand it to a bicentric framework involving firms and their home and host country governments. In this framework, decoupling is determined by relevance and agency. Relevance refers to whether governments want firms to decouple, and agency refers to whether firms can avoid doing so. Our exploratory data analysis shows that this framework aligns with the decoupling behavior of US multinational enterprises. [ABSTRACT FROM AUTHOR]

In this study, we explore how home-host government relations impact multinational enterprises (MNEs)' subsidiary manager staffing strategy. By emphasizing a strategic alignment between the host country environment and a subsidiary manager decision, we argue that MNEs' home-host government conflict, as a salient dimension of government relations, will decrease MNEs' likelihood of using expatriate managers. That is attributed to expatriates' disadvantages in providing essential resources and legitimacy to mitigate the increasing host country environmental uncertainty arising from home-host government conflict. Additionally, we argue that geographic distance will mitigate the main negative relationship by decreasing MNEs' expectation of home-host government conflict duration and escalation. On the contrary, home-host trade mutual dependence will intensify the negative impact of home-host government conflict on expatriate manager assignment through the enhancement of subsidiary managers' importance in leveraging host country resources to countervail extended cross-border market uncertainty. Using a sample of Japanese manufacturing firms and their foreign subsidiaries from 1993 to 2017, we find robust empirical evidence that corroborates our hypotheses. [ABSTRACT FROM AUTHOR]

Drawing from the rich historical case of Guinness's responses to updates in Australian customs regulations in 1924, we unpack the interrelated dynamics of MNEs' corporate political activity (CPA) responses in the face of regulatory shock. We provide a model of how an MNE's CPA responses evolve at the level of individual managers. Our model specifically explains how (1) the strategic choices emerged in the tension between two actor groups who had distinct roles and motives and crucially influenced the trajectory of these responses; (2) the process was driven by the interrelated dynamics of strategic responses, where any given response shaped other responses' boundaries, motivations, and goals; (3) the distinction between materialized and considered (i.e., non-materialized) strategic responses played a significant role. In conclusion, we discuss how our theoretical insights advance the CPA literature concerning MNEs' political activities. [ABSTRACT FROM AUTHOR]

Foreign investors typically prefer global cities as locations for their foreign direct investments to mitigate liabilities of foreignness (LOF) when investing in a target country. This study posits that firms with access to immigrants from the target country and international experience are better equipped to mitigate these liabilities, making them less dependent on the LOF-reducing benefits of global cities and more inclined to invest outside global cities. Furthermore, we shed light on whether internal knowledge gained through international experience and external migrant knowledge function as complements or substitutes. We test our hypotheses by analyzing 2,591 investments made by MNEs from 20 different OECD home countries in 48 different target countries over a 13-year period from 2003 to 2015. The results demonstrate a positive influence of immigrants and international experience on a firm's likelihood to invest outside global cities. The data further indicate that the effect of immigrants on the probability to invest outside global cities is weaker for internationally experienced firms, suggesting a substitutive dynamic between external migrant knowledge and internal knowledge derived from first-hand experience. [ABSTRACT FROM AUTHOR]

In answering a call for more work examining the portfolio of nonmarket strategy choices, we propose the concept of strategic argumentation to analyze an under-studied aspect of corporate political strategy: when a firm goes into a room with a regulator, an important aspect of the firm's strategy is what specific arguments it presents to persuade the regulator. Through strategic argumentation, firms provide an intellectual architecture for supporting the underlying logic of the regulator's policy paths that the firms prefer. Analyzing a hundred thousand applications submitted by U.S. firms to the office of the United States Trade Representative (USTR) for tariff exemptions during the U.S.-China Trade, we quantify applicant firms' various arguments based on Chinese technological threats, U.S. national interests, global supply chain constraints, and so on. We show that such strategic arguments matter to a significant degree in explaining firm-level outcomes even after controlling for various forms of resource expenditure in political influence. To further understand why some arguments work as intended, while other arguments were either ineffective or even backfired, we conducted in-person interviews in Washington, D.C., with regulators and lobbying firms that participated in the USTR tariff exemption process. We further find that, to achieve sustained political strategy success, firms' choice of strategic arguments has to be dynamically consistent with a changing and turbulent nonmarket environment. [ABSTRACT FROM AUTHOR]

In this study, we examine how increasing climate risk in potential host locations impacts MNEs' location choice for foreign direct investments (FDIs) and consider how the network contingencies, the connectedness of MNEs in the industrywide collocation network and the connectedness of MNEs' country of origin (COO) in the global outward FDI network, moderate this relationship. using a novel dataset from the global automobile industry between 2003 and 2019 we argue and demonstrate that the negative externalities of climate risk reduce the likelihood and magnitude of MNEs locating their FDI in high-climate-risk locations. Further, we find that increasing COO connectedness increases the MNEs' informational advantages and amplifies the negative impact of increasing climate risk in host locations on MNEs' FDI location choices. Thus, MNEs from more connected COOs are less likely to locate their FDI in high-climate-risk locations. However, the increasing MNE connectedness increases isomorphic pressures and imitative tendencies among collocated MNEs. This attenuates the negative impact of increasing climate risk in host locations on MNEs' FDI location choices. Thus, MNEs more embedded in FDI collocation networks are more likely to locate their FDI in high-risk locations. This study demonstrates the effect of increasing climate risk on the FDI location decisions of MNEs and highlights the contingencies faced by MNEs when making these decisions. [ABSTRACT FROM AUTHOR]

Whilst tax haven use by multinational enterprises (MNEs) is often associated with economic and societal harm, studies have theorized a limited relationship between tax haven use and corporate reputation. This is surprising, given the wealth of evidence which illustrates how corporate reputations are frequently damaged following socially and economically harmful MNE activity. To advance our understanding, this study focuses on the underexplored heterogeneity associated with tax havens, specifically - their location characteristics. Drawing on attribution theory and the country reputation perspective, we theorize and explain how MNE engagement with tax havens and countries characterized by corruption, shape stakeholder perceptions, thereby heightening reputation risks. Our longitudinal analysis, involving 1,961 tax haven subsidiaries of 326 MNEs, supports our theorizing. Among our principal contributions, this paper advances theory regarding the informal regulation of tax haven use and the dark side of international business. [ABSTRACT FROM AUTHOR]

It is expected that firms will be deterred from engaging with tax havens by formal and informal institutions. However, our understanding of how tax haven investment decisions are influenced by shifting institutional deterrents and varying organizational contexts remains limited. Combining the institutional complexity perspective with behavioral theory, this study explores the extent to which formal and informal institutions deter firm investment into tax havens. We theorize and explain how variance in the organizational context, such as the firm's degree of managerial discretion and influence, act to sensitize or de-sensitize organizational decision makers to institutional deterrents. Drawing on a comprehensive and granular dataset of tax haven subsidiaries by 2,857 firms between 2009 and 2017, this study contributes to the advancement of theory, policy, and practice on the global strategic management of tax havens. [ABSTRACT FROM AUTHOR]

This paper builds on an explorative case study of a firm reshoring outsourced activities from a host country. We depart from the assumption that reshoring hampers business relationships with suppliers in the host country and, consequently, that the reshoring firm's access to important resources and business opportunities will be restrained. However, our findings show a more complex set of effects at the network level in the host country. In fact, the firm tangible commitment to the host country network reduces, while its intangible commitment increases. We also find a corresponding mixed-impact on the firm's network position, whereby structural embeddedness is weakened by suppliers terminating their relationship with the reshoring firm, while relational embeddedness is conversely expanded in the remaining relationships. This shows that, although the scope of the network is reduced, access to resources in the host country is preserved by mean of fewer but deeper relationships. This study contributes to our understanding of both the network effects of reshoring in the host country and provides more fine-grained elements to the network view of (de-)internationalization. [ABSTRACT FROM AUTHOR]

Artificial intelligence (AI) is transforming decision-making in various organizational settings by supporting human decision-makers. However, although several AI-augmented decision-making applications occur in multi-decision settings, current literature treats AI reliance in those settings as purely influenced by single-decision level variables, fully neglecting factors specific to the multi-decision setting. Yet, understanding such factors is crucial, as reliance in single decisions might be influenced by the overall cognitive experience with the task and the AI tool. In particular, the AI-augmented decision-making literature has overlooked two cognitive factors specific to multi-decision settings – i.e., cognitive load stemming from the task-level workload and cognitive dissonance from a task-level disagreement with AI in the multi-decision session. We develop a Cognitive Multi-Decision AI-Augmentation Theory of AI reliance in multi-decision settings and theorize that a higher task-level workload increases AI reliance, whereas experiencing higher task-level disagreement with AI during the multi-decision session reduces AI reliance in single decisions. We test our theoretical framework in two multi-decision innovation selection contexts by conducting a lab experiment with 53 young business professionals, a field experiment with 88 managers in one firm, and 20 interviews to contextualize our results. We explore the findings´ implications for theories of AI reliance and organizational practice. [ABSTRACT FROM AUTHOR]

We examine how multinational enterprises (MNEs) respond to a sudden transition of political systems in the emerging market of Indonesia. We draw on the political science and nonmarket strategy literature to explain how local subsidiary firms of MNEs ('subsidiaries') adapted their nonmarket strategy during the transformation of Indonesia's political landscape from an autocratic regime (1967-1998) to the current democratic and decentralized system. Based on multiple qualitative case studies of Western European subsidiaries, we found that MNEs adapted their business strategies to relate with multiple layers of government in an environment of rampant corruption. Under Suharto, MNEs sought to develop relations with his regime, while also seeking to avoid informal transaction costs. From 1998, MNEs began to conduct survival strategies by partnering with local firms and leveraging local political networks. Later however MNEs adopted proactive, innovative strategies that replaced corrupt activities, for example, by leveraging government-level partnerships and forming long-term relationships with local communities. These findings suggest that MNEs need active agency and proactive nonmarket strategies to address the negative challenges of unstable political environments. [ABSTRACT FROM AUTHOR]

Plenty of studies have emerged, in the last three decades, around the different contextual and individual factors affecting expatriate adjustment. Most of these theories seem to assume that uncertainties associated with expatriation play a critical role in their adjustment and that expatriates adjust better with less uncertainty. This assumption has made it into the literature on expatriation as the earlier studies and theory building have been on the backdrop of predominantly US-based, white, top management executives relocating from headquarters to subsidiaries. Through this qualitative research, which draws upon uncertainty regulation theories, I find that even when expatriates perceive uncertainty, they do not necessarily find it as aversive. These findings are based on interviews with 31 expatriates including assigned expatriated and self-initiated expatriates. I find three co-existing psychological states that expatriates might find themselves in while facing uncertainty. These are expatriate circumspection - when they find uncertainty as highly aversive; expatriate courage – when they are comfortable with the unknown, and expatriate myopia – when they don't even perceive uncertainty. [ABSTRACT FROM AUTHOR]

Research on international capability transfers has since its start highlighted the motivation of the recipient as an important influence to successful transfers. However, while another key driver of transfer success, i.e., absorptive capacity, has attracted enough attention from research to become a sub-field of its own, motivation has repeatedly been seen as a simple and straight-forward construct. So, while motivation has over again been identified as a main influence of transfer success, how it becomes such an important driver has received little attention. Consequently, we know little about what actually influences the motivation of recipients in transfers. Utilizing an inductive multiple-case study, we explore how the motivation of recipient organizations in capability transfers are influenced by various aspects of the transfer process. We contribute to the transfer literature by identifying how different aspects of the transfer process drive recipient motivation at different stages. The findings suggest that recipient motivation in transfers is not so much a static as a dynamic process, with important implications for theory and future research. [ABSTRACT FROM AUTHOR]

In the contemporary digital landscape, platform-based business models have experienced meteoric rise in global prominence. However, the international ascendancy of Platform Multinational Corporations (PMNCs) is contingent upon their ability to adeptly navigate a multitude of challenges. Within this dynamic, resilience emerges as a crucial attribute, with modularity serving as a vital mechanism to foster such resilience. This resilience enables PMNCs to adapt flexibly and efficiently to diverse global markets. This research advances a conceptual framework predicated on the structure-conduct-performance (SCP) paradigm, underscoring the interplay between structural and behavioural resilience and their collective impact on the internationalization performance of the PMNCs. It posits that the synergy between the technical architecture, organization structure, and market structure underpins structural resilience. Concurrently, cultivating the alignment between structural and behavioural resilience is instrumental in harmonizing adaptability and transformability, which are essential for the sustained internationalization success of PMNCs. [ABSTRACT FROM AUTHOR]

We develop and test theory that suggests that as the capacity for populist governments to interfere in countries' institutions and in investment projects (projects) increases, projects are more likely to be distressed or cancelled. Populist politicians employ rhetoric and policy aimed at disrupting a country's political institutional framework that undergirds private investors' assets. We propose that populists' "interference capacity" to disrupt increases: 1) with more autocratic (less democratic) political regimes, 2) with more time in power, and 3) with government ownership sharing with private investors in projects. Such interference capacity will increase the likelihood of project distress or cancellation. Our analyses of 2748 energy projects across 27 developing countries initiated between 1990-2015 (allowing until 2019 for distress or cancellation to occur) are consistent with this proposition. Projects are more likely to be distressed or cancelled if located in a country with a populist-led government. And this likelihood is heightened under the following conditions: 1) host-country autocracy level increases, 2) populist leaders' time in office increases, and 3) projects share ownership with governments led by populists. Our study outlines the mechanisms through which populist government interference may disrupt project success and documents supporting evidence of such populist "interference capacity". [ABSTRACT FROM AUTHOR]

Motivated by the global impact of COVID-19 on supply chains and the lack of understanding of supply chain resilience from an SME exporter perspective in the international business literature, this paper sets out to explore how New Zealand SME exporters achieve resilience during the pandemic. The study adopts a qualitative, multiple case studies approach to identify the key strategic drivers and contextual factors influencing supply chain resilience. We offer a nuanced understanding of three strategic choices during a global supply chain disruption: buffer, bridging and mixed strategies. Our study is guided by resource dependence theory and information processing theory; our study places exporters' situational control in the center of drivers to firms' strategic responses. We make a novel attempt to incorporate the contextual conditions of the COVID-19 pandemic into the theorization of supply chain resilience. We make managerial recommendations to help SME exporters navigate global supply chain disruption challenges. [ABSTRACT FROM AUTHOR]

A common implicit assumption in research on global acculturation towards cosmopolitanism is that it occurs uniformly across geographic space. Our contention, in contrast, is that it occurs in primarily within and among global cities, and that this has implications for the interaction between location and organizational culture in MNEs. Examining 11,176 MNE employees across nine countries, we enhance our understanding of the nature of global cities and the ways in which cosmopolitanism is a sub- and supra-national phenomenon. Our findings suggest that global cities are pulled towards a cosmopolitan global culture that is different from their national compatriots and similar across global cities. [ABSTRACT FROM AUTHOR]

Drawing on the legitimacy spillover perspective on institutional theory, we argue that differentiation in home-host country reputation perceptions triggers the cognitive spillover effect, which reduce stakeholder concerns and resistance to acquisitions and thus facilitate acquisition completion. When an acquirer enters a host country where union authority is stronger, higher labour standards can raise the legitimacy threshold of the host country. When the acquirer is in a politically sensitive industry, the risk of security review is higher due to the industry's strategic importance. Furthermore, negative media coverage of the acquirer is more likely to attract more stakeholder attention, blurring their categorization and judgement based on the country reputation perceptions. Our theoretical arguments are supported by a dataset of Chinese firms from 2009 to 2019. We contribute to research on legitimacy spillover and cross-border acquisitions. [ABSTRACT FROM AUTHOR]

Threats from patent litigations are a major roadblock for the internationalization strategies of MNCs from emerging markets (EMNCs). While extant theory focuses on weak patent systems in emerging economies as an obstacle for multinational corporations from developed economies, we conceptualize them as experiential learning contexts, shaping patent enforcement routines of local firms. We reason that superstitious learning from patent enforcement experiences as defendants in weak, domestic patent systems are counterproductive for EMNCs. Overconfidence in underdeveloped patent enforcement competences expose them to costly patent litigation abroad. We find empirical support analyzing 2273 Indian firms between 2007 and 2017. Vicarious learning from operating in many countries with strong patent systems and experience with patent filings abroad create boundary conditions. [ABSTRACT FROM AUTHOR]

The debate regarding the environmental behavior of foreign firms in emerging markets continues. Both positive and negative views of MNEs are prevalent. In this paper, I argue that despite that foreign firms, on average, exhibit superior environmental performance relative to domestic peers, they also have the intention to behave opportunistically and exploit local institutional voids when they have the opportunity to do so. To examine my argument, I compared the responses of domestic and foreign firms to the environment regulation during the 11th Five-year Plan period in China. I find that while foreign firms that experience substantial liability of foreignness behave significantly better than domestic firms, those that are exposed to less liability of foreignness are no better or worse than domestic peers. This indicates that when foreign firms develop the ability to perceive the informal elements embedded in local regulatory institutions, they are likely to take advantage of the informal elements to seek evasion opportunities. [ABSTRACT FROM AUTHOR]

The US-China dispute has multifaceted effects on international business, necessitating scholarly exploration through the lens of geopolitical tension. We introduce the concept of "inter-US-China-ally diversification" to characterize the extent of international activities of multinational enterprises (MNE) spread across US-ally and China-ally countries. Leveraging insights from corporate diplomacy and real options theory, this study investigates the impact of inter-US-China-ally diversification on the performance of Chinese MNEs. Our findings reveal a positive relationship between inter-US-China-ally diversification and Chinese MNEs' performance amid escalating tensions between the US and China. Additionally, we discover that the foreign experience of the top management team negatively moderates this positive relationship, highlighting the nuanced dynamics in the context of a divided global economy. These findings carry significant implications for both theoretical understanding and practical applications in a bifurcated world. [ABSTRACT FROM AUTHOR]

We use a large research database of 14,038 articles from 69 countries published in 28 prominent organizational journals from 1980-2017 to find that the proportion of findings from the U.S. has declined over the years and, as of 2010, less than half of findings were collected in the U.S. We change the conversation regarding the generalizability crisis; due to insufficient samples from individual countries, the cumulative research findings may not generalize to any one country. Chris Alwine and Imran Kadolkar contributed equally and are listed alphabetically. [ABSTRACT FROM AUTHOR]

Family firms tend to lag in export intensity compared to their non-family counterparts. Scholars attribute such exporting gap to the agency costs perceived by family firms in internationalization decisions. We argue, however, that this perspective overlooks gender distinctions in risk attitudes among agents. Therefore, we explore the role of female managers, theorizing that their unique risk attitudes and decision-making qualities alleviate family firms' managerial constraints, enhancing these firms' export intensity. Yet, we propose that the effectiveness of female managers in narrowing family firms' exporting gap is contingent on host countries with lower social patriarchy. Discriminatory attitudes against females may lead to perceiving female managers as liabilities in internationalization, intensifying constraints on family firms' export efforts, thus limiting their exporting scope. Based on a dataset of 11,915 Swedish private firms (2004–2016), we advance theory on family firm internationalization, providing evidence that female managers serve as facilitators of family firms' exporting. We also respond to calls for more research on host countries on family firms' internationalization by investigating the role host-country social patriarchy as a critical institutional contingency. [ABSTRACT FROM AUTHOR]

This study uses upper echelons theory to explore how an executive's international experience influences their likelihood of engaging in corporate fraud. Executives who have lived or worked abroad gain exposure to various legal and corporate environments, potentially cultivating a deeper understanding of ethical practices, such as inclusivity and social responsibility. This international exposure is hypothesized to shape these executives into advocates for ethical corporate governance upon their return home. The study investigates the link between international experience and the incidence of corporate fraud using data from China's A-share listed companies over the period 2010-2020. It examines whether executives with international backgrounds demonstrate a lower propensity for engaging in fraudulent activities, which can harm stakeholders and tarnish the company's reputation. Additionally, the study looks at how international experience influences executive compensation. Our findings indicate a negative correlation between international background and the likelihood of corporate fraud. Robustness tests further reinforce these results, maintaining their validity across varied variables. A deeper examination shows that international executives in these companies exhibit a lesser connection between compensation and fraudulent behavior, compared to their peers in non-state-owned enterprises. Furthermore, executives with international work experience are found to have a more significant deterrent effect on fraud than those with only overseas study experience. The study also reveals that while executive compensation incentives generally discourage fraudulent practices, the addition of international experience amplifies this effect. These insights highlight the value of integrating executives with international experience in global business management strategies. Such executives bring a wider perspective and a stronger commitment to ethical business conduct, which is crucial for companies aiming to foster a culture of integrity and reduce the risk of fraud in an increasingly interconnected global business environment. [ABSTRACT FROM AUTHOR]

We examine knowledge-based enablers of MNE solutions for inclusive economic growth. We distinguish between product adaptation and resource sharing practices as different mechanisms for disenfranchised members of society to obtain access to resources and opportunities that enhance their social and economic well-being. The former is aligned with the MNE's short-term profit-maximization motive, while the latter with its long-term success. We focus on managerial diversity and cross-sector connections as knowledge-based factors that increase managerial awareness of socioeconomic issues and strengthen the organizational problem-solving capacity to identify effective solutions. We argue that managerial diversity and cross-sector connections contribute positively to both types of practices, but their effects are more pronounced on product adaptation practices because these are more directly related to the profit-maximization motive of the MNE. Home government social welfare provision affects MNEs' domestic experiences with inclusion practices, and hence the degree to which these can supplement the knowledge needed for international adoption. We argue that home government social welfare provision reduces the need for product adaptation inclusion practices but raises the likelihood for resource sharing practices. We find support for our arguments by analyzing inclusion practices by 760 high-tech MNEs from 48 countries in the period 2005-2016. [ABSTRACT FROM AUTHOR]

How do a firm's explorative and exploitative innovation levels affect its foreign sales share? And are there certain entry modes that strengthen or even weaken this relationship? We approach these questions by arguing that firms engaging in explorative and exploitative innovation benefit from several mechanisms that allow them to maximise their foreign sales share. Beyond this, we argue that firms with experience in equity entry modes, more specifically subsidiaries, can even further benefit from their explorative and exploitative innovations when looking to increase their foreign sales share. We test our arguments empirically by analysing longitudinal data on 156 German SMEs from two surveys in 2019 and 2022. Our findings indicate that both explorative and exploitative innovation has a positive effect on the foreign sales share, with the former effect being stronger despite the comparatively short-time frame. Furthermore, we show that this effect is positively moderated if the firm has subsidiary experience and negatively moderated if the firm has experience with exports or contractual agreements. In doing so, we direct researchers' attention to the strengthening effect equity entry modes can have on firm innovation abroad. Our findings go against existing literature in that resource-limited SMEs are unlikely to be able to simultaneously pursue high risk and commitment innovation and internationalisation strategies, but instead show that these strategies can complement each other. [ABSTRACT FROM AUTHOR]

Australia and China have committed to leverage their comparative advantages by increasing bilateral trade and investment. This has manifested in increased investment in Australia's natural resources sector, like iron ore and coal, by Chinese corporations in the form of joint ventures. In this paper, we present a "Culture-Bound Decision Quality Model" framework for improving collaborative and joint decision-making between Australian and Chinese iron ore corporations. Using a qualitative research methodology, we conducted 31 semi-structured interviews at the senior executive and management level working in 11 Western Australia iron ore companies. Our study highlights the need to integrate aspects of cultural intelligence and cross-cultural communication with traditional decision-making processes. The findings from this study showcase a model focusing on ideology, governance, economic policies, and organizational structures to facilitate mutually beneficial quality decision outcomes. Keywords- Decision-making framework, Cross-Culture Communication, Cultural Intelligence [ABSTRACT FROM AUTHOR]

In recent decades an increasing number of firms has engaged in relocations of their HQ abroad to save on income taxes. Most of these tax-motivated HQ relocations have been targeted to the same relatively limited number of countries, raising the question whether this imitation tendency among relocating firms is purely explained by their desire to benefit from some countries' greater tax friendliness or whether other corporate motives are also at play. Drawing on organizational institutionalism, we propose that two important additional motives for firms to imitate their peers' most popular location choices for tax-motivated HQ relocations are to reduce outcome uncertainty and to legitimize the focal relocation to domestic non-market stakeholders. Separating a firm's peers into domestic rivals and non-rival compatriots and controlling for countries' tax friendliness, we find support for the existence of these dual motives in conditional logit analyses of a sample of 127 listed US firms that launched tax-motivated HQ relocations over the period 1995-2017. Our findings contribute to international strategy research on HQ relocations by shedding further light on why HQs that have mainly been relocated abroad for tax purposes are concentrated in a limited number of countries. [ABSTRACT FROM AUTHOR]

Does inward FDI lead to greater integration of local firms in the international market via participation in Global Value Chains (GVC)? Using a rich firm and industry level panel dataset of the manufacturing sector in India, we try to investigate the nature of the relationship between incoming greenfield FDI and GVC participation of local firms in the host economy. This paper draws from a combination of the extensive literature on FDI and its associated spillovers and the relatively recent GVC literature. We find that at the overall level, there exists a positive impact of incoming FDI on an incumbent local firm's GVC activities. Further, the results point to a differential impact of FDI on the GVC participation of local firms based on the characteristics and technology profile of the industry they belong to. There is greater participation in GVC by firms in technologically advanced, capital and knowledge intensive industries as compared to labour intensive, low technology consumer goods industries. This heterogeneous effect is explained using the dynamics between the FDI firm affiliate present in the host country and the extent and the nature of linkages formed with the local supplier firms. These findings have relevance for policymakers as they provide a finer understanding of the underlying mechanisms in the relationship between FDI and international activity of local firms via GVC participation. These can aid policy decisions that will encourage greater integration of local firms in the international market. [ABSTRACT FROM AUTHOR]

Multinational enterprises (MNEs) often deploy parent-country nationals (PCNs) to facilitate and safeguard knowledge transfer from headquarters (HQs) to foreign subsidiaries while using host-country nationals for local adaptation. Yet a simplistic understanding like this may lead to oversimplifications in the context of local-market-seeking subsidiaries. Given the critical boundary spanning role of subsidiary general managers (GMs), we theorize both the transaction cost minimization and value maximization implications of knowledge transfer, exploitation, and adaptation on subsidiary GM staffing decisions. Based on longitudinal data of 557 Japanese manufacturing MNEs between 1991 and 2020 operating across 47 countries, we found that when comparing a focal MNE with itself over time, there is a positive relationship between MNE R&D intensity and PCN GM deployment. This relationship is then moderated by the focal MNE's international R&D experience. However, when comparing the focal MNE with its peer MNEs, technologically leading firms are less likely to deploy PCN GMs in their local-market-seeking subsidiaries compared to technologically lagging firms. [ABSTRACT FROM AUTHOR]

The adaptation to diverse cultural contexts is one of the most essential elements of the international management of expatriates given the substantial impact on their professional and personal lives. One critical aspect of expatriate adjustment that has received scant research attention is the relationship between thinking styles and their professional and personal adjustment to the country of destination. We address this research gap with an empirical study of international expatriates that examines a range of thinking styles and their impact on multiple forms of adjustment to diverse cultural contexts. On the basis of thinking style theory and research, which examines multiple information-processing and decision-making processes, we hypothesize that some thinking styles are associated with higher levels of expatriate adjustment while other styles are more likely to attenuate adjustment. Thinking styles are shaped by numerous factors, including education, culture, social groups, experiences, and other sociological and psychological factors, which collectively influence influence the adaptive capacity of expatriates. Utilizing a multivariate statistical methodology to classify international expatriates according to their thinking style, this survey study of 188 expatriates assessed the relationships between eight thinking styles (one linear and seven nonlinear) from the Thinking Styles Profile (Groves & Vance, 2014) and multiple elements of expatriate adjustment to the professional and personal contexts associated with their international experiences (psychological adjustment, sociocultural adaptation, and expatriate adjustment). Our analyses also examined the degree of thinking style balance and versatility across linear and nonlinear thinking by classifying expatriates as nonlinear thinkers, linear thinkers, or balanced and versatile thinkers. The results illustrate that the balanced and versatile thinking style profile, which consists of high linear and high nonlinear thinking, was strongly associated with all three types of optimal international adjustment. Our results highlight the existence of significant differences across thinking style profiles regarding their impact on fostering professional and personal adjustment of international expatriates. We conclude by discussing suggestions for future research and the primary practical implications for optimizing expatriate international adjustment. [ABSTRACT FROM AUTHOR]

Prior studies suggest that an emerging economy (EE) firm's shareholder value after an announcement of a cross-border acquisition (CBA) is influenced by its political connections in the home country. Such influences are, however, contingent upon contextual factors. This study examines the context-specific stock market responses to the CBA announcements of EE firms with varying domestic political connections. We find that the stock market responds positively to CBA announcement of politically well-connected firms, but this relationship depends upon firm ownership structures and domestic institutional contexts. Our findings shed light on the contingent value of political connections of EE firms at the time of CBA announcement. [ABSTRACT FROM AUTHOR]

This study analyzes how firms respond to goal deviation in their offshoring operations. Using Performance Feedback theory we argue that deviation from goals triggers feedback mechanisms that shape firms' offshoring strategy. We further argue that firms' strategic response varies with the governance mode of the offshoring project, the type of goals set for the project, and the direction of the goal deviation. Hence, it matters to firms' strategic response whether the project is in-house or outsourced, if the goal is financial or operational, and whether the goal deviation goes in a positive or negative direction. Examining a dataset of 348 offshoring projects, we find that in the case of in-house offshoring, negative deviation from financial performance goals is associated with a higher likelihood of geographic expansion – entering new foreign offshoring locations. In the case of outsourced offshoring projects, positive deviation from financial goals is associated with a higher likelihood of geographic expansion. Irrespective of governance mode, positive deviation from operational goals is associated with a higher likelihood of functional expansion – an extension of the range of activities offshored in a given foreign location. [ABSTRACT FROM AUTHOR]

In this paper, we build on social categorization theory and introduce a novel dyadic perspective to examine how corporate expatriates' and their host country supervisors' cultural orientations, measured as cosmopolitanism and ethnocentrism, respectively, determine the mutual perceptions of the counterparty in the dyadic relationship and, through that, influence the assessment of expatriates' performance as rated by supervisors. Empirically, we analyze 250 expatriate-supervisor dyads from organizations in Russia. We find supervisors' ethnocentrism to inflate perceived national differences between them and their expatriate subordinates. At the same time, we also find expatriates' cosmopolitanism to act as a counterforce to this effect decreasing perceived national differences as viewed by supervisors and influencing positively expatriates' performance evaluations as rated by supervisors. [ABSTRACT FROM AUTHOR]

Firm internationalization has been a central topic of scholarly interest in international business for decades. However, market concentration has received limited attention as an important factor in implementing internationalization strategies. In this study, we investigate the relationship between market concentration and firm internationalization strategy and propose an inverted U-shape. Based on longitudinal data of more than 24,000 firm-year observations between 2008 and 2019, we show that the relationship between market concentration and firms' internationalization strategy is indeed inverse U-shaped. Our findings indicate that internationalization intensifies with rising market concentration levels up to a certain peak, beyond which internationalization is declining. Moreover, we show that managerial ability and market fluidity intensity are two important contingencies that intensify this relationship and steepen the inverted U-shape. We contribute to the literature by bridging the two research streams on market concentration and firm internationalization and developing a novel text-based measure for firms' internationalization strategy. [ABSTRACT FROM AUTHOR]

We examine how the entry of gig-economy platforms in developing markets affects informal economy participants. Some advantages of gig-economy platforms such as flexibility and low entry barriers already exist in informal economies. But others such as algorithmic matching, bring greater efficiency to a largely unstructured market, suggesting that informal economy participants should join platforms. However not all do. Why do some informal economy participants choose to compete against gig-economy platforms rather than join them? Drawing and extending on the concept of social capital, we hypothesize that informal economy participants with greater horizontal and vertical social capital will eschew platforms entirely. Horizontal social capital develops between informal participants in the form of relational networks while vertical social capital forms between participants and customers. We examine what happened to Kazakhstan's informal taxi market after Uber and Yandex.Taxi entered the market. We survey 220 drivers to find out why some drivers chose to avoid the platforms entirely. We find support for our arguments suggesting that social capital created in the informal economy can offset the benefits of gig-economy platforms in developing markets, adding to our understanding of how digital technologies transfer to dissimilar contexts. [ABSTRACT FROM AUTHOR]

This conceptional work employs real options theory to delineate the dual-ecosystem strategy adopted by emerging market high-tech firms in navigating techno-geopolitical uncertainty. The high-tech industries have long operated within ecosystem dynamics, fostering innovation interdependencies. However, techno-geopolitical uncertainty introduces risks and vulnerabilities to these interdependencies. Emerging market high-tech firms, historically reliant on international and advanced ecosystems for growth and operations, are now pivoting to establish alternative, secure technology ecosystems. These new ecosystems often involve collaborations with domestic suppliers and complementors, offering a hedge against international risks. Concurrently, these firms refrain from exclusive commitment, effectively treating their strategy as a real option. This deliberate non-commitment imbues their approach with flexibility—a key tenet of real options theory. This study delves into the impact of diverse ecosystem specifications on the value of this option and explores strategies for optimizing the conditions to cultivate this option for maximal benefits. Propositions are also developed to guide future empirical testing. [ABSTRACT FROM AUTHOR]

This research explores how Generative Pretrained Transformer (GPT) Artificial Intelligence (AI) technology is leveraged by migrant entrepreneurs to establish virtual embeddedness, consequently reducing liabilities of foreignness in the host country. Drawing upon a qualitative interpretivist approach, semi-structured interviews were conducted with 20 migrant entrepreneurs actively using GPT AI in the United Kingdom. Thematic analysis of the collected data revealed that GPT AI technology serves as a critical tool for overcoming language and cultural barriers, understanding business norms, and engaging with local networks. The use of this technology significantly enhanced the participants' abilities to connect and collaborate with diverse business stakeholders, thereby reducing their liabilities of foreignness. This study makes a significant contribution to the theoretical understanding of the role of AI in migrant entrepreneurship and offers practical implications for policymakers and practitioners in developing supportive programs and strategies for migrant entrepreneurs. It underscores the potential of AI as a tool of empowerment for marginalized business communities and illuminates new avenues for organizational inclusivity and diversity. [ABSTRACT FROM AUTHOR]

Our era is characterized by increasing prevalence of geopolitical conflicts, which significantly disrupt international business environment and necessitate multinational enterprises (MNEs) to implement prompt and effective responses. Literature on antecedents leading to MNEs' response remain at a nascent stage and largely ignore individual-level antecedents, especially psychological traits. This study aims to address this research gap by focusing on CEO narcissism that has been found to significantly affect a firm's non-market strategies. Based on prior literature about CEO narcissism and the stakeholder alignment perspective, this paper argues that narcissistic CEOs, driven by their desires for attention, self-aggrandizement, and aversion to criticism, are more likely to scale back business operations in a host country perceived as an aggressor in a major geopolitical conflict. Such an activism is facilitated if these CEO perceived anticipated support from proximal stakeholders. Using data from various sources, we tested our hypotheses in the context of the ongoing high-profile Russo-Ukrainian War commencing in 2022. The results supported our predictions and reveals the crucial role of CEO narcissism in shaping MNEs' social-political activism amidst geopolitical conflicts. [ABSTRACT FROM AUTHOR]

Foreign MNEs in emerging markets vary in complying with local corporate social responsibility regulations. Our study builds on the legitimacy-based view of MNEs and the institutional logic approach to liability of foreignness in understanding how the perceived liability of MNEs varies based on their country of origin and compliance with local regulations. We hypothesize that MNEs from home countries where their ethnic group perceived higher status in the host country are less incentivized to comply with local regulations on corporate social responsibility. Our hypotheses are tested in South Africa, using Black Economic Empowerment as a background. We discuss how this research contributes to the further understanding the legitimacy-based view in an African context, corporate non-market strategy at the micro-level and the implications of public policy effectiveness regarding diversity and inclusion. [ABSTRACT FROM AUTHOR]