This paper proposes an endogenous human resources selection process by using linguistic information from a competency management perspective. We consider different sets of appraisers taking part in the evaluation process, having a different knowledge about the candidates that are being evaluated. Then, appraisers can express their assessments in different linguistic domains according to their knowledge. The proposed method converts each linguistic label into a fuzzy set on a common domain. Candidates are ranked by using different aggregation operators in order to allow the management team to make a final decision.
This paper proposes that multinational firms that are more capable in developing new managerial resources are less vulnerable to the Penrose effect in the process of international expansion. The paper hypothesizes that firms were more capable to achieve growth in consecutive time periods when they send more expatriates to the local operations and when they have greater home experience before entering into the local market. The empirical results based on a sample of Japanese investments in the US support the arguments.
The HR practices of the former state-socialist countries have gone through significant changes. The analysis of the developments, built on the Cranet (2004) survey, intends to describe the similarities and differences found between 6 countries of the Central Eastern European region and the total sample of 32 countries participating in the survey. The primary aim of the paper is to highlight the strands of international human resource management, investigating the main focuses, strong and weak elements of both CHRM and HRM. Moreover, it attempts to formulate suggestions on where and how to increase the explanatory power of the current models of CHRM, based on the experiences gained by this analysis.
This paper employs multiple theoretical perspectives -- resource- and knowledge-based views as well as social network theory -- to explore the dynamics of guanxi in the context of Chinese entrepreneurial firms. The researchers propose a dynamic model and offer multiple propositions for researchers to examine the role of guanxi for knowledge management and decision-making at various developmental stages of such firms. By integrating the individual level phenomenon of guanxi with firm-level issues, the researchers provide new perspectives for future research as well as guidelines for managerial practices.
This paper provides a comprehensive analysis of foreign investors' ownership strategies in the land-locked transition economy of Mongolia. Drawing on a sample of 1.033 affiliates of foreign investors with varying levels of foreign ownership, the paper examines the choice between a wholly owned subsidiary (WOS) and a joint venture (JV). The results show that the main determinants of foreign equity ownership found in previous research also influence the ownership structure of foreign affiliates in Mongolia. The extent of FDI concentration, natural resource intensity of target industry and location of the affiliate have the expected impact on the foreign investor's choice between a JV and a WOS. However, no support has been found for the impact of capital size of affiliate on the level of ...
This paper starts from the observation that the internationalisation process (IP) model frequently is interpreted as a model of risk reduction in the internationalization of the firm. The dominating view of the model seems to be that commitment is the dependent variable and experience is the independent variable. A basic assumption of the original model, however, is that opportunity development is an important outcome of commitment. The purpose of this note is to articulate this relation, which is not stressed enough in earlier writings.
This paper reviews the theoretical rationale that has been advanced so far for a positive relationship between multinationality (ie international diversification) and performance. The researchers show that transaction cost/internalization theory implies no direct and general relationship between international diversification and performance. For example, it is quite possible that the assumptions made by TCI theories that an MNE's level of international diversification cannot remain suboptimal for long are too strong, and that systematic biases may cause more permanent deviations from the optimum level of international diversification. Hence managers with strong ethnocentric views may systematically under-invest abroad while excessive international diversification, on the other hand, may...
This paper revisits the mainstream academic perspective on the relationship between multinationality and performance (MP). The authors argue that most, if not all, past empirical work on this international management topic is flawed from a conceptual perspective since there is no valid theoretical rationale that would predict a generalizable MP relationship. They suggest that useful empirical work on the MP linkage requires prior analysis of the key parameters underlying the substance of the multinationality concept in specific empirical settings. They revisit the MP relationship, and elaborate on three key parameters underlying the substance of the multinationality concept: Variety of strategic motivations for FDI, environmental complexity resulting from bundles of discrete FDI decisio...
The paper studied why multinational enterprise (MNE) subsidiaries adopt dissimilar political strategies, and seek to advance the understanding of international political strategy from an MNE parent-subsidiary perspective. Drawing on the MNE parent-subsidiary literature, the paper contended factors at the subsidiary, corporate, and host country levels contribute to subsidiary political strategy dissimilarity. Hypotheses were tested with a sample of US MNE subsidiaries within Western Europe. The results demonstrate that dissimilarity in MNE subsidiary political strategy is attributed to a combination of subsidiary, corporate, and host country factors.
This paper applies Penrose's (1959) insights on the quantity of managerial services required for firm-level organic expansion to the analysis of entrepreneurial activities in MNEs. These insights are used to build a framework relevant to entrepreneurial activities in MNEs, and then apply this framework to assess the metanational model (Doz/Santos/Williamson 2001) in terms of the quantity of managerial services required to implement it. Penrose's (1959) insights on firm-level growth processes are still relevant to the analysis of entrepreneurial activities in MNEs. The quantity of managerial services required for the effective functioning of the metanational model appears to be particularly high, and the benefits of this model should therefore be carefully weighed against the potential c...
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