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1.
–  Penrose’s legacy is a curious one. Much cited, but little read, her work is recognized as one of the main intellectual foundations for modern resource based theories of business strategy and theories of organizational routines and capabilities.
–  However, Penrose did not aim to contribute to the field of strategy; her goal was to advance understanding of the nature of the firm and its growth. Nevertheless, there are important insights in Penrose’s work that have implications for international business and for strategy.
–  We discuss some of the implications of Penrose’s work as well as its limitations. We also briefly discuss the usefulness of adopting a “Penrosean” capability perspective in multinational enterprise (MNE) strategy analysis.
–  The dynamic capabilities framework puts entrepreneurial management into the theory of multinational enterprise, a task Penrose left untouched.
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2.
Edith Penrose and a learning-based perspective on the MNE and OLI   总被引:1,自引:1,他引:0  
–  We apply insights from Edith Penrose’s work to extant theory of the multinational enterprise (MNE) as enveloped by John Dunning’s Ownership, Location, Internalization (OLI) Paradigm.
–  We suggest that Penrose’s knowledge/learning-based approach has important implications on the nature of, and the interactions between, O, L and I, and it helps endogenize and integrate the three elements of Dunning’s triad in the context of a dynamic, and strategic perspective of the MNE.
–  More importantly, a learning-based perspective adds a cognitive dimension to the MNE and OLI.
–  This supports a forward looking, synchronic decision making view, that may lead to apparently sub-optimal decisions, taken in view of anticipated changes, along-side strategic behaviour, aiming to effect such change, once decisions have been reached.
–  A Penrosean-inspired knowledge/learning-based perspective helps render the OLI more dynamic, strategic and forward looking.
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3.
The Penrose effect: “Excess” expatriates in multinational enterprises   总被引:4,自引:2,他引:2  
–  Penrose’s (1959) theory of firm growth argues that firm knowledge and experience gives rise to “excess” resources which can be (re)deployed to explore and exploit productive opportunities leading, ultimately, to the achievement of firm goals.
–  We examine this key insight on organizational slack in the context of expatriate managers within multinational enterprises (MNEs).
–  Expatriates are not only a viable way of examining the Penrosian concept of slack but, as an unique element of MNE management, expatriates also provide an opportunity to develop new insights into international business theory.
–  Using a large sample of MNE subsidiaries, we found that when host country experience is comparatively low, subsidiaries with “excess” expatriate managers are more likely to experience inferior performance. Alternatively, expatriate slack is associated with a higher likelihood of superior performance in the context of comparatively high host country experience.
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4.
Abstract
–  At the centre of the interface between the developmental needs of national industry and evolutionary processes in the MNEs’ subsidiaries are knowledge-seeking and knowledge-generation processes.
–  Based on new survey evidence, we examine the strategies of MNE in Central and Eastern Europe (CEE). In particular, we investigate the knowledge characteristics of MNE subsidiaries in CEE by analysing the roles of subsidiaries, market orientation and sources of technology over time.
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5.
The dynamics of Japanese firm growth in U.S. Industries: The Penrose effect   总被引:1,自引:1,他引:0  
–  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.
–  We hypothesize 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 United States support our arguments.
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6.
•  We study 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, we contend factors at the subsidiary, corporate, and host country levels contribute to subsidiary political strategy dissimilarity. We test our hypotheses with a sample of U.S. MNE subsidiaries within Western Europe.
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7.
Abstract and Key Results
–  While the methodological problems associated with international management research have been widely discussed, much less attention has been given to the ethical dilemmas confronting those who seek to undertake their research in cross-cultural settings.
–  Three vignettes are used to identify and explore the nature of those ethical dilemmas. Attention is directed at ways in which ethical conundrums might satisfactorily be resolved. Specifically, the paper addresses the question of whether a code of ethics would be useful for international business researchers.
–  In an era when ethics is central to all social activities, it will be critical that management researchers are equipped to deal with ethical questions relating to their studies in other cultures. Though codes of conduct can be helpful in guiding and regulating researchers’ behavior, there are a number of other means by which the desired ends can be achieved.
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8.
Abstract and Key Results
•  Research on the process of knowledge learning and absorption in acquisition context has emerged recently. Yet relatively less attention has been paid to the process of knowledge transfer and learning and its impact on successful acquisitions.
•  This paper adopts a process perspective’ to investigate this issue. Based on four international acquisitions in China, it generates new theoretical propositions as well as practical managerial implications.
•  Results reveal the types of knowledge acquired and how it is transferred and learnt to contribute to the success of international acquisitions. The knowledge acquisition and learning process in international context involve three stages: knowledge assessment, knowledge sharing and knowledge assimilation.
•  Foreign acquirers tend to acquire complementary knowledge from local targets, adopt dual management structure and facilitate communications with local personnel in order to achieve the success of acquisitions and future operations.
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9.
Abstract and Key Results
•  This paper focuses on the overall themes of the issue to examine the interrelationships between innovation, competition and regulatory change in international business.
•  It provides a synthesis by highlighting recent interlinked developments in two contrasting industries dominated by large multinationals — pharmaceuticals and automotives, with specific reference to cars.
•  This industry based assessment highlights the technical, economic and regulatory forces that have together changed the business environment, innovation processes and nature of competition in the pharmaceutical and automotive industries.
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10.
Abstract and Key Results
–  Several recent papers by Rugman and his colleagues have improved our understanding of the regional concentration in the activities of the world’s largest 500 MNEs. The current paper extends this literature in two dimensions. First, a formal statistical analysis is undertaken to test whether patterns of US MNE assets, sales, income, and employment are consistent with a transactions cost interpretation. Second, this paper allows for the national dimension, defined as activities inside the home country, to be a possible explanation of regional concentrations of MNE activity.
–  The evidence robustly shows that regional concentrations in US MNE activity are driven by the national dimension. The analysis also indicates that these national concentrations have not hindered US MNE access to important global markets — that is, US MNE managers have gotten it right. As such, there should be no attempt to increase US MNE activity globally stemming solely from a large concentration in the home region.
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11.
Abstract and Key Results
•  This conceptual paper examines the dynamics of the offshoring of information technology (IT) service work. It considers this important emerging phenomenon from multiple lenses, especially those of international business theories.
•  Research propositions are developed based on the perspectives of home country firms, host nation and the dynamic interactions between the two. Questions for future research are suggested.
•  Already established nations in the field get more opportunities than the new entrants to increase their competitiveness from experience-based knowledge gained as a result of the imitative actions of home country firms.
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12.
–  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.
–  We 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.
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13.
•  The purpose of this study is to investigate the influence of two categories of sources of technology on subsidiary performance. These technology sources can be associated either with the internal Multinational Enterprise (MNE) system; or, the local environment in which the subsidiary is based.
•  A questionnaire-based survey was carried out on 88 subsidiaries located in Greece and results were derived through the use of ordered probit analysis.
•  Internal MNE technology sourcing has a positive impact on subsidiary performance, which is stronger than that of local (Greek) technology sourcing. Contrary to our expectations, technology sourcing linked to the local context primarily has a negative influence on subsidiary performance.
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14.
Entrepreneurship in multinational enterprises: A Penrosean perspective   总被引:2,自引:1,他引:1  
–  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.
–  We use these insights 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 costs.
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15.
•  This paper examines the conditions under which corporate social responsibility (CSR) is related to value creation in the multinational enterprise (MNE).
•  Following prior work by Burke and Logsdon (1996), we examine the relationship of centrality, appropriability, proactivity, visibility, and voluntarism to value creation.
•  The results of a survey of 111 MNEs in Mexico suggest that centrality, visibility, and voluntarism are related to value creation.
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16.
–  The Uppsala model of the internationalisation process of the firm has many similarities with Penrosean growth theory but has been limited by ambiguity about the internal mechanisms of growth. Core insights from Penrose’s Theory of the Growth of the Firm may advance development of the Uppsala model.
–  Penrose’s theory of growth is a powerful adjunct to the Uppsala model of the internationalisation process of the firm.
–  We propose a variation on the Uppsala model that incorporates the dynamic and interdependent interaction between managerial choice, the formation of resource bundles and their connection to external opportunities.
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17.
Abstract and Key Results
•  We explore the differences in international strategy between multinational enterprises (MNEs) in services and manufacturing, especially in terms of their international diversification, as measured by their sales and asset dispersion.
•  Our longitudinal data show that the largest MNEs in services have a much stronger home-region orientation than manufacturing MNEs. Large MNEs in the services sector average 83.9 percent of their sales in their home region, which is significantly higher than large manufacturing firms at 65.6 percent.
•  We explore the possible reasons for the relative lack of globalization of services firms. The two main reasons are: the difficulty of adapting separately upstream activities and downstream activities in high distance host environments, and the difficulty of selecting activity locations as a function of supply side criteria.
•  We offer a refinement of regional strategy theory applicable to services MNEs.
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18.
Financial and product market integration: Responses of Japanese firms   总被引:2,自引:1,他引:1  
Abstract and Key Results
–  ▪ Growing financial and product market integration has resulted in increased pressures for changes in most developed economies. We investigate the impact of these twin drivers on changes effected by Japanese firms between 1986 and 1999.
–  ▪ Specifically, we examine (1) how shareholdings by market investors and foreign investors and (2) export ratio impact outcomes in the form of efficiency increases, dividend payout, and leverage change.
–  ▪ We also investigate whether the relationships differ between keiretsu and nonkeiretsu firms.
–  ▪ Ownership by market investors was positively associated with efficiency increases and decreases in firm leverage. In addition, firm export ratio played a key role in motivating Japanese firms to increase their efficiency and firm leverage. Moreover, these relationships were more pronounced in non-keiretsu than keiretsu firms.
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19.
Foreign direct investment and local linkages: An empirical investigation   总被引:4,自引:2,他引:2  
Abstract and Key Results
–  This paper investigates the quantity and quality of indirect, transactional and collaborative linkages between foreign affiliates and domestic firms based in New Zealand. Seven clusters of affiliates are differentiated by linkage formation behaviour.
–  Only fourteen percent of affiliates actively engaged in a broad spectrum of linkages, including alliances. Thirty-nine percent appear limited to demonstration and competition effects. Researchers and policy makers should recognise FDI heterogeneity with regard to impact on domestic industries.
–  The results find competitive influence, levels of competition, motives for investment, business activity, technology transfer, age and ownership form are significantly associated with linkage clusters.
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20.
•  This paper shows that the role of managerial incentives is highlighted by a relatively complex relationship between technological competence and international diversification. By studying a sample of Standard & Poor’s 500 member firms, we explore the relationships between technological competence, managerial pay, and international diversification.
•  Results indicated a curvilinear relationship (an inverted U-shape) between technological competence and international diversification.
•  In line with agency theory, contingent pay (stock options and bonuses) was positively related to international diversification.
•  Beyond these direct effects, both contingent and non-contingent pay (cash compensation) moderated the relationship between technological competence and international diversification.
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