Alberto Ferraris

Innovation-receiving subsidiaries and dual embeddedness: impact on business performance

Purpose – The purpose of this paper is to investigate the relationship between the degree of subsidiary’s external and internal embeddedness and the contribution on subsidiary’s business performance of a received innovation. In particular it focusses on dual embeddedness of the subsidiary that receives an innovation from the rest of the MNC’s network. Design/methodology/approach – Using Amadeus databases were selected 93 CEE subsidiaries located in six countries. Data were collected through a standardized questionnaire and three hypothesis were tested through an OLS regression model. Findings – The results indicate that the two types of embeddedness positively affect the received innovation’s contribution on business performance. Moreover, the inclusion of the interaction term shows how a simultaneously high level of embeddedness in both external and internal business networks lead to a multiplicative and positive effect on subsidiary’s business performance. This means that external and internal embeddedn...

Rethinking the literature on “multiple embeddedness” and subsidiary-specific advantages

Purpose – This paper aims to synthesize the literature on embeddedness of MNE subsidiaries, rethinking the concept of “multiple embeddedness” in order to clarify the importance of the subsidiary-specific advantages. Design/methodology/approach – A new and innovative framework based on four key relationships: home country-specific advantages (CSAs)-Headquarters (HQ); HQ-subsidiary; subsidiary-host CSAs; and subsidiary-HQ. This framework is used to discuss the complex phenomenon of “multiple embeddedness”. Findings – The framework proposed sheds light on the subsidiarys need to develop and sustain over time its subsidiary-specific advantages (SSAs) and, where possible, to “upgrade” these SSAs and to integrate them across the entire network of the MNE. The framework is based on two pillars. The first one is the “creation and development” of firm-specific advantages (FSAs) (in the home country) and SSAs (in the host country); the second one is the “transfer” of these advantages from the parent to the subsidi...

The Localization Choice of Multinational Firms’ R&D Centers: A Survey in the Piedmont Area

Research on the linkages between R&D, environment, strategy, and localization choices is quite new and often lacks empirical investigation. The aim of this article is to study the localization choices of MNE R&D activities in Piedmont. Specifically, it investigates the extent of locating in a specific place on the strength of several drivers and the level of satisfaction of the choice after 3 years from the settlement. The findings aim to verify the main drivers that led 51 MNE to choose Piedmont as the ideal area for their R&D activities and also to show how the high level of presence after 3 years from the settlement confirms the result.

International diversification and firm performance: a four-stage model

Purpose n n n n nThe 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. n n n n nDesign/methodology/approach n n n n nThe 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. n n n n nFindings n n n n nOn 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. n n n n nResearch limitations/implications n n n n nThis 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. n n n n nPractical implications n n n n nThis 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. n n n n nOriginality/value n n n n nThis 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.

HR practices for explorative and exploitative alliances in smart cities: Evidences from smart city managers’ perspective

The purpose of this paper is to investigate how multinational enterprises (MNEs) manage human resources (HR) in explorative and exploitative alliances in smart city projects (SCPs).,In this paper, the authors adopt an explorative and qualitative approach based on multiple case studies thanks to the interviews with 21 smart city managers of MNEs who are deeply involved in SCPs.,The authors found that MNEs use many different partnerships and “temporal separation” in many cities all around the world in order to maximize the benefits of both exploration and exploitation. According to the aim of the project, MNEs implemented different HR practices intentionally targeted toward managing social relations among internal and external employees involved in SCPs.,The authors highlighted that MNEs tend to develop different ties among employees and external partners and to use different HR practices according to the nature and to the aim of the alliances. Thus, the development of human resource management systems becomes crucial in supporting organizational ambidexterity through alliances.,This paper gives useful insights in improving the effectiveness of MNEs in SCPs. Due to the business opportunities arising from the application of ICT and technological innovation to urban services, MNEs are becoming an important player in smart cities. Increasing the effectiveness of the SCPs leads faster to more economically, socially and environmentally sustainable cities.,The development of alliances has a key role in strengthening and complementing firms’ exploration and exploitation agendas in SCPs. Thus, this paper provides guidelines to MNEs in order to adapt HR practices and to rethink the role of HR within and across corporate boundaries in an emergent context of analysis.

The Role of Self-Awareness and Self-Efficacy on Career Decision-Making: An Innovative Perspective

The major aim of this study is to contribute to the literature by pointing out the relevance of self-awareness and self-efficacy on career decision-making. Both are important for individual growth and they can lead the individual to show his/her own potential. In the fast-changing world that we live in, organisations need to discern these potentials in people in order to improve their capacity building. Starting from this point, in our study we aim to reveal the relevance of these two factors for the individual in order to emphasise the importance of a more conscious attitude of career decision-making. We also propose a preliminary empirical analysis based on data from 291 students belonging to a Turkish and an Italian university.

Ambidextrous IT capabilities and business process performance: an empirical analysis

Purpose n n n n nIn several studies, it has been found that organizational performance is affected by ambidextrous IT capabilities. Nevertheless, business processes are essential to the value generation conversion of IT investment into performance. In the literature, this focus on the impact of IT capabilities at the business process level is still under investigated. So, the purpose of this paper is to test the effects of explorative and exploitative business process IT capabilities on business process performances (BPP) and the positive moderator role of business process management (BPM) capabilities. n n n n nDesign/methodology/approach n n n n nThis analysis has been done through a quantitative study in the Italian hotel industry. An OLS regression analysis has been carried out on a sample of 404 firms. n n n n nFindings n n n n nThe study identifies distinct effects related to exploration and exploitation and finds a moderating effect of BPM capabilities, explaining their positive impact on BPP. n n n n nOriginality/value n n n n nThe main purpose of the paper is to contribute to the area of business process management by demonstrating the importance of both explorative and exploitative IT capabilities for a business process as well as the managerial capabilities at the process level. Furthermore, this focus at the process level allows us to add original insights into research on ambidexterity by expanding existing works.

Management control in Italian SMEs

The main goal of this research is to investigate management and implications issues with regard to performance measurement systems (PMSs) in small and medium firms (SMEs) in Italy. In particular, the aim is to comprehensively understand the use of management accounting tools in Italian SMEs. Indeed, appropriate managerial tools are relevant in firm management, especially for the improvement and growth of firms in this turbulent international scenario. The focus is on SMEs - in some countries such as Italy, small and medium firms play an important role; however, mainstream studies in management literature focus more on large firms. The method used to conduct this study is a survey that collected a high level of data on PMSs. The sample includes 309 Italian SMEs. The main findings concern the use and adoption of management control tools. In addition, the analysis of management issues is based on both major national and international literature and empirical evidence and adopts the newly emerging beyond budgeting theory. Finally, this study contributes to a better understanding of the behaviour of SMEs with regard to the management and control of their performance. In particular, this research highlights that budgets are still an important managerial tool for SMEs.