Jonas F. Puck

Does It Really Work? Re-Assessing the Impact of Pre-Departure Cross-Cultural Training on Expatriate Adjustment

Cultural adjustment is considered to be a prerequisite for expatriate success abroad. One way to enhance adjustment is to provide employees with knowledge and awareness of appropriate norms and behaviours of the host country through cross-cultural training (CCT). This article analyses the impact of pre-departure CCT on expatriate adjustment and focuses on variations in participation, length and the comprehensiveness of training. Unlike previous research, the study focuses on the effectiveness of pre-departure CCT for non-US employees expatriated to a broad range of host country settings. Employing data from 339 expatriates from 20 German Multinational Corporations (MNCs) the study finds CCT has little if any effect on general, interactional or work-setting expatriate adjustment. However, a significant impact of foreign language competence was found for all three dimensions of expatriate adjustment. We used interviews with 20 expatriates to supplement our discussion and provide further implications for practice.

Cultural antecedents and performance consequences of open communication and knowledge transfer in multicultural process-innovation teams

Abstract Processes in multinational corporations (MNCs) have to be configured with regard to the challenges of a permanently evolving environment. Process-innovation teams are considered to be powerful tools inside organizations to cope with this necessity. Their performance is of major importance for most MNCs. As a response to the increasing internationalization and globalization of markets, these teams show a growing culturally diverse composition. This article focuses on two major processes that are discussed to decide about a positive or a negative performance of a team: intra-team communication style and knowledge transfer. Explicitly, this article (1) tests for the influence of cultural diversity on intra-team communication and knowledge transfer, and (2) empirically examines the impact of the openness of intra-team communication and knowledge transfer on the performance of multicultural teams. A quantitative empirical survey among 84 team-members of 20 culturally diverse teams within a German sportswear company is used to test the relationships. Findings reveal that national cultural diversity has no significant impact on intra-team communication and knowledge transfer but both of them have significant influences on different measures of performance.

A Global Value Chain Analysis of the ‘Regional Strategy’ Perspective

In this counterpoint paper we argue that the findings presented by the ‘regional strategy’ literature do not capture the full array of global activities of the multinational enterprise (MNE). While this literature makes an important contribution to the field by showing that sales and production activities in the MNE are regionally structured, we argue that this assessment is biased for two reasons. First, this approach overly focuses on geographical location of downstream activities, while disregarding that of knowledge creation and other relevant upstream activities in the MNE. Second, the approach associates the firms value creation only with its internalized activities and does not capture the value created through any activities that are externalized. Many MNEs rely to a significant extent on value creation outside the firm’s legal boundaries. We argue that such omissions are likely to lead to biased interpretations using different theoretical lenses, such as the knowledge‐/resource‐based view, internalization theory and more general transaction cost economics. Based on our reasoning, we provide recommendations for future research both within and beyond the ‘regional strategy’ literature.

The internationalization of Austrian firms in Central and Eastern Europe

We test and expand the Uppsala model with a sample of 109 Austrian companies active in the CEE region, representing 1,271 entries. On the one hand, our expansion of the model is based on collective learning of firms from a specific context, an issue largely neglected in IB research. On the other hand, we expand the model by including two further strategic, i.e. dependent, variables. The paper contributes to research by finding three distinct internationalization processes in CEE, two of them new to the Uppsala Model. Furthermore, the paper strongly supports our argumentation with regard to collective learning and thereby draws new conclusions on learning processes that take place within and between firms over time.

Diversity and conflict in teams: a contingency perspective

Diverse teams are becoming widespread in the workplace. However, previous research shows that many organisations fail to successfully manage diversity. Using survey data collected from 27 teams in ten different countries, we investigate the link between team diversity and intra-team conflicts. Building on a contingency approach, we analyse moderating effects of the surrounding organisational context of teams, namely organisational supportiveness and openness. The results of our quantitative study show that the diversity-conflict relation strongly depends on a teams context. This presents interesting alleys for future research and leads to implications for practice regarding the design of a teams context.

Complementarity Versus Substitution among Political Strategies

Prior research on political strategies has predominantly analyzed singular political activities or drivers for firms to become politically active and, overall, only scarcely obtained insights on performance consequences of political strategizing. To further develop the realm of political strategy, this study analyzes the effects of two “generic” political strategies on firms’ (1) stakeholder network development and (2) performance. Specifically, we provide theoretical and empirical evidence whether the two political strategies add to or substitute each other in their effect on the corresponding outcome variable. We find that an information strategy significantly affects the stakeholder network development, whereas no influence of a financial incentive strategy could be detected. Moreover, we find that the stakeholder network drives firm performance and, more importantly, that the two political strategies substitute each other in their effect on firm performance. Thus, we provide initial insights on the efficiency of political strategies when firms opt to execute an information strategy and financial incentive strategy simultaneously. The results of our study have important implications for research as they put a new light on the efficiency of political strategies.

The Illusion of Political Power: Evidence from a Failed FDI in a Developing Market

Purpose – By means of this case study, we aim to learn from failure and provide an explanatory approach why the promising prospects in a developing country could not be exploited and strategic actions failed. Design/methodology/approach – Based on literature within the areas of uncertainty, entrepreneurial activity and political strategy, we provide an event-based case analysis and develop an explanatory model as to why the foreign direct investment (FDI) failed. Findings – Results provide insights on the effectiveness of political strategies and point to the relevance of entrepreneurial overconfidence as a diminishing cognitive process leading to a misinterpretation of both internal and external conditions. Originality/value – The exploratory study provides in-depth insights on a failed business and presents an explanatory approach for the business’ collapse.

Local responsiveness of German firms in International Joint Ventures in the PRC

Whereas research has been carried out on multinational enterprises’ (MNEs) attempts to balance global integration and local responsiveness, there has been hardly any research into the degree to which foreign firms respond to differences that exist between themselves and their local joint venture (JV) partners in host countries. This chapter discusses MNEs’ responsiveness to inter-firm differences in IJVs as a special case of MNEs’ responsiveness to differences that exist between home and host country. We also highlight the role of perceptions for (empirical) research into firms’ decisions about the degree of responsiveness. Based on empirical data gathered by means of a questionnaire survey among 76 managers representing German partner firms of German-Chinese IJVs in the Peoples’ Republic of China (PRC), we provide some empirical evidence for the importance of individuals’ perceptions of responsiveness. A first finding of this study is that MNEs’ responsiveness in the specific context of international joint ventures warrants further scholarly attention and is of high practical relevance for firms interested in improving the management of their IJV. A second result of this chapter is that perceptions need to be taken into account when empirically studying the degree of local responsiveness of MNEs.

Die Internationalisierung des FC Bayern München

Der FC Bayern Munchen wird aufgrund seines konstanten wirtschaftlichen und sportlichen Erfolges oft als Musterbeispiel fur den Transformationsprozess vom Fusballverein zum marktorientierten Dienstleistungsunternehmen in Deutschland gesehen. Als erster Verein der Fusball-Bundesliga erkannte der FC Bayern die okonomischen Moglichkeiten einer gezielten Vermarktung und schuf die hierfur notwendige Infrastruktur. Durch ein professionelles Management, welches in Deutschland seiner Zeit weit voraus war, erschloss der Verein bereits in den siebziger Jahren neue Einnahmequellen, etwa durch die Einrichtung von VIP-Logen im Stadion. Uli Hoenes, seit 1979 Manager des FC Bayern, fuhrte diesen Professionalisierungsprozess in den achtziger Jahren konsequent fort und implementierte eine betriebswirtschaftliche Organisationsstruktur im Verein. So verfugte der FC Bayern Munchen als erster Verein der Fusball- Bundesliga mit einem Aufsichtsrat uber eine institutionelle Kontrollstruktur und trennt organisatorisch zwischen kaufmannischen und sportlichen Kompetenzen (vgl. Hardenacke/ Hummelsberger 2004, S. 67 ff.).

Stakeholder-Netzwerke ausländischer Unternehmungen in Russland: Eine empirische Studie

Auslandische Unternehmungen in Russland sind einem hohen Risiko ausgesetzt (vgl. Mironov, 1999; Mau, 2002; Sekerin et al., 2003; Varnavskij, 2004). Die lange Zeit instabile politische Fuhrung, die Transformation des sozialistischen in ein marktorientiertes Wirtschaftssystem und das erst im Aufbau befindliche unabhangige Rechtssystem erschweren langfristige und verlassliche Planungen und stellen Investoren immer wieder vor neue Herausforderungen. Haufige staatliche Eingriffe in die Tatigkeit russischer und auslandischer Unternehmungen erschuttern zudem den Glauben in die Rechtstaatlichkeit des Landes und erhohen das wahrgenommene Investitionsrisiko. „In Russland“, so Voswinkel (2007), „lasst sich trefflich Geld verdienen. Aber die Risiken wachsen, wenn der wirtschaftliche Erfolg sich nicht in ein gesundes Selbstbewusstsein, sondern in Uberheblichkeit, Allmachtsanfalle und Willkur verwandelt.“