Klaus E. Meyer

Conventional and Reverse Knowledge Flows in Multinational Corporations

Leveraging knowledge from geographically disparate subsidiaries is a crucial source of competitive advantage for multinational corporations (MNCs). This study investigates the determinants of knowledge transfers to and from newly acquired subsidiaries in three transition economies in Central and Eastern Europe. It is hypothesized that the determinants of conventional knowledge transfers from MNC parents to subsidiaries and reverse knowledge transfers from subsidiaries to MNC parents are based on different transfer logics. A sample of 105 acquired subsidiaries revealed that organizational characteristics are important in conventional knowledge flows from headquarters, so that subsidiaries acquired with competence-creating objectives receive significantly larger inflows. Knowledge characteristics are important in reverse flows to headquarters so that subsidiaries whose knowledge is more relevant are able to transmit significantly larger outflows. Host country locations have significant moderating effects. The significance of the directional context in knowledge transfers is an important new finding.

Linking Theory and Context: ‘Strategy Research in Emerging Economies’ after Wright et al. (2005)

Emerging economies provide a laboratory for investigating the interaction between firm strategies and local contexts. Mike Wright and colleagues have shaped this research agenda by creating legitimacy for this line of research, and by outlining how research in four types of strategy contexts can advance theories. We assess how this agenda has progressed in eight leading journals in the past decade, particularly during the five years following their review, with the aims to identify broad trends of theorizing, and to outline future research challenges. Emerging economy contexts challenge some of the assumptions of theories originally developed for markets that are relatively stable and efficient. Researchers have advanced several theoretical perspectives by addressing these challenges. Wright and colleagues focused on institutional theory as a major foundation for such work, and we find it continuing to be the most popular theoretical perspective. In addition, new perspectives have emerged, focusing on learning, relationships, real options, and spillovers as focal concepts for theorizing.

Globalfocusing: From Domestic Conglomerates to Global Specialists

Globalization is changing the competitive terrain on which companies develop their corporate strategy. On the global stage, key competitive advantages are gained through internationally fungible resources. Consequently, diversified conglomerates are converting to global specialists in narrower niche markets and competing with a small number of multinational enterprises operating worldwide. Their internationalization and their reduction of product diversification are opposite sides of the same coin: globalfocusing. I extend Penrosian resource-based theory to analyse this change process, notably by distinguishing country and industry specificity of firms core competences, and by integrating divestment as part of firm growth processes. Globalfocusing is driven by shifts in the relative importance of country-specific and industry-specific resources and capabilities due to changes in the internal and external environment, notably the globalization of markets and supply chains. The argument is developed using case studies of restructuring of two Danish manufacturing enterprises. On this basis, I analyse the forces driving globalfocusing processes and suggest propositions for empirical testing.

The German Miracle Keeps Running: How Germany's Hidden Champions Stay Ahead in the Global Economy

Despite mediocre macro-economic performance of the German economy, German companies are successful players in global trade. This article explores the strategies of one of the pillars of this export success, the Hidden Champions, Our empirical analysis focuses on leading medium size companies identified by Hermann Simon in the early 1990s, and investigates their long-term progress over one decade. We show that these companies continue to prosper with family ownership combined with professional external management, strategies of market leadership in global niches and a persistent focus on operational effectiveness. Scholars and business leaders, in particular of companies based in other high-cost countries, therefore ought to consider German companies as source for lessons on how to succeed in the global economy.

What is "strategic asset seeking FDI"?

Purpose – The purpose of this paper is to shed more light on the concept of “strategic asset-seeking FDI”, which is frequently used in discussion of emerging economy multinational enterprises (MNEs), but it is challenged by some scholars. The author argues that he needs this category because an important type of foreign direct investment (FDI) is not captured by the other motives identified by John Dunning, namely, market-, efficiency- and natural-resource-seeking FDI. Design/methodology/approach – The author illustrates the phenomenon of strategic asset-seeking FDI with case examples that form the starting point for his theoretical arguments. Findings – Some FDI is undertaken explicitly with the aim to use assets acquired abroad to enhance the operations of the investor in other markets, including, notably, the investors’ home market. This contribution to capability-building processes of the MNE, indeed, constitutes an important and distinct type of investment motive. Originality/value – The author concl...

What's in a p? Reassessing best practices for conducting and reporting hypothesis-testing research

AbstractSocial science nresearch has recently been subject to considerable criticism regarding the validity and power of empirical tests published in leading journals, and business scholarship is no exception. Transparency and replicability of empirical findings are essential to build a cumulative body of scholarly knowledge. Yet current practices are under increased scrutiny to achieve these objectives. JIBS is therefore discussing and revising its editorial practices to enhance the validity of empirical research. In this editorial, we reflect on best practices with respect to conducting, reporting, and discussing the results of quantitative hypothesis-testing research, and we develop guidelines for authors to enhance the rigor of their empirical work. This will not only help readers to assess empirical evidence comprehensively, but also enable subsequent research to build a cumulative body of empirical knowledge.概要社会科学研究最近一直就发表在领先期刊上的实证测试的有效性和影响力受到相当多的批评,商务学问也不例外。透明度和实证研究结果的可复制性是建立学术知识的累积体必不可少的。然而,当前的做法受到更多的审视以实现这些目标。JIBS因此正在讨论和修改其编辑实践以提高实证研究的有效性。在这篇社论中,我们反思有关从事、报告和讨论定量假设测试研究结果的最佳实践,并为作者们提出提高其实证工作严谨性的指导方针。这将不仅帮助读者们全面地评估实证证据,而且能使后续研究建立起实证知识的累积体。RésuméLa recherche en sciences sociales a récemment fait l’objet de critiques importantes concernant la validité et la puissance des tests empiriques publiés dans les revues de référence, et les sciences de gestion ne sont pas une exception. La transparence et la reproductibilité des résultats empiriques sont essentielles pour construire un ensemble cumulatif de connaissances académiques. Pourtant, les pratiques courantes sont sous vérification accrue pour atteindre ces objectifs. Par conséquent, JIBS discute et révise ses pratiques éditoriales pour améliorer la validité des recherches empiriques. Dans cet éditorial, nous réfléchissons sur les meilleures pratiques concernant la réalisation, la communication et la discussion des résultats de la recherche quantitative fondée sur des tests d’hypothèses, et nous développons des conseils aux auteurs pour améliorer la rigueur de leur travail empirique. Ceci va non seulement aider les lecteurs à évaluer les preuves empiriques de manière complète, mais aussi permettre à la recherche ultérieure de construire un ensemble cumulatif de connaissances empiriques.ResumoA pesquisa em ciências sociais tem sido objeto de consideráveis críticas sobre a validade e o poder dos testes empíricos publicados em periódicos de ponta, e a pesquisa em negócios não é exceção. Transparência e replicabilidade de achados empíricos são essenciais para construir um corpo de conhecimento acadêmico cumulativo. No entanto, as práticas atuais estão sob escrutínio crescente para atingir esses objetivos. O JIBS, portanto, está discutindo e revisando suas práticas editoriais para aumentar a validade da pesquisa empírica. Neste editorial, refletimos sobre as melhores práticas no que se refere à realização, relato e discussão de resultados da pesquisa quantitativa de testes de hipóteses, e desenvolvemos diretrizes para que os autores melhorem o rigor de seu trabalho empírico. Isso não só ajudará os leitores a avaliar as evidências empíricas de forma abrangente, mas também permitirá pesquisa subseqüente para construir um corpo de conhecimento empírico cumulativo.ResumenRecientemente, la investigación en ciencias sociales ha sido objeto de considerables críticas en relación a la validez y el poder de las pruebas empíricas publicadas en las principales revistas líderes, y los estudios empresariales no son excepción. La transparencia y la replicabilidad de los hallazgos empíricos son esenciales para construir un cuerpo cumulativo de conocimientos académicos. Sin embargo, las prácticas actuales se someten a un creciente escrutinio para conseguir estos objetivos. JIBS está discutiendo y revisando sus prácticas editoriales para aumentar la validez de la investigación empírica. En este editorial, reflexionamos sobre las mejores prácticas con relación a la realización, el reporte y la discusión de resultados de investigación cuantitativa de prueba de hipótesis, y desarrollamos lineamientos para que los autores mejoren el rigor de su trabajo empírico. Esto no sólo ayudará a los lectores a valorar la evidencia empírica de manera exhaustiva, sino que también permite que la investigación posterior construya un cuerpo cumulativo de conocimiento empírico.

Diplomatic and corporate networks: Bridges to foreign locations

Firms and governments operate in broad networks in which the home government and its diplomatic service are a critical node – or a “referral point” – between firms and potential partners in foreign locations. Thus diplomatic relations between countries matter for the choice of foreign investment location. Using a network perspective, we argue that the extent to which good diplomatic relations induce firms to invest in friendly host countries depends on their political connections to home governments. Those with stronger ties to home governments can better access and leverage intergovernmental diplomatic connections, thus benefiting potentially from enhanced access to information, reduced political risks, and increased legitimacy. Such ability of politically connected firms is more useful where weak institutional impartiality in the host country inhibits neutral treatment of foreign investors. Empirically, using overseas investment location decisions by Chinese firms, we find that the types of home government ties (i.e., whether they are organizational or personal and whether those relationships are with central or local goverments) and the impartiality of host institutions are both important contingencies affecting firms’ utilization of diplomatic relations. We discuss the implications of our study to research on network theory, political ties, and internationalization of emerging market firms.RésuméEntreprises et gouvernements fonctionnent en larges réseaux dans lesquels le gouvernement d’origine et son service diplomatique sont un nœud critique — ou un « point de référence » — entre les entreprises et les partenaires potentiels à l’étranger. Ainsi, les relations diplomatiques entre les pays influencent le choix de la localisation de l’investissement étranger. Recourant à une perspective réticulaire, nous argumentons que la mesure dans laquelle de bonnes relations diplomatiques poussent les entreprises à investir dans des pays d’accueil amicaux dépend de leurs relations politiques avec les gouvernements des pays d’origine. Ceux qui ont des liens plus forts avec les gouvernements des pays d’origine peuvent mieux accéder et utiliser les connexions diplomatiques intergouvernementalesxa0; bénéficiant ainsi potentiellement d’un meilleur accès à l’information, de risques politiques réduits et d’une légitimité plus forte. Cette aptitude des entreprises connectées politiquement est plus utile lorsque la faible impartialité institutionnelle du pays hôte inhibe le traitement neutre des investisseurs étrangers. Empiriquement, à l’aide de décisions de localisation des investissements étrangers par des entreprises chinoises, nous constatons que les types de liens du gouvernement d’origine (qu’ils soient organisationnels ou personnels, et qu’ils soient au niveau des administrations centrales ou locales) et l’impartialité des institutions hôtes sont tous les deux des contingences importantes qui affectent l’utilisation des relations diplomatiques par les entreprises. Nous discutons les implications de notre étude pour la recherche sur la théorie des réseaux, sur les liens politiques et sur l’internationalisation des entreprises des économies émergentes.ResumenLas empresas y los gobiernos operan en amplias redes en las cuales el gobierno local y su servicio diplomático es un nodo crítico –o un “punto de referencia”- entre las empresas y los socios potenciales en lugares extranjeros. Por ende, las relaciones diplomáticas entre países son importantes para la elección de la ubicación de inversión extranjera. Usando una perspectiva de redes, sostenemos que el grado en que las buenas relaciones diplomáticas inducen a las empresas para invertir en países anfitriones amistosos depende de las conexiones políticas de los gobiernos locales. Aquellos con lazos más fuertes con los gobiernos locales pueden tener mejor acceso y aprovechar las conexiones diplomáticas intergubernamentales, beneficiándose potencialmente de un mejor acceso a información, disminución de riesgos políticos y aumentar la legitimidad. Esta capacidad de las empresas políticamente conectadas es más útil cuando la débil imparcialidad institucional en el país anfitrión inhibe el tratamiento neutral a los inversionistas extranjeros. Empíricamente, usando decisiones de ubicación de inversión extranjera de empresas chinas, encontramos que los tipos de lazos con el gobierno local (ya sean organizacionales o personales, y ya sean con el gobierno central o local) y la imparcialidad de las instituciones anfitrionas son ambas importantes contingencias que afectan la utilización de las empresas de las relaciones diplomáticas. Discutimos las implicaciones de nuestro estudio a la investigación sobre la teoría de red, los lazos políticos, y la internacionalización de las empresas de mercados emergentes.ResumoEmpresas e governos operam em amplas redes em que o governo anfitrião e seu serviço diplomático são um nó crítico - ou um “ponto de referência” - entre empresas e parceiros potenciais em locais estrangeiros. Dessa forma, relações diplomáticas entre países são importantes para a escolha do local do investimento estrangeiro. Usando uma perspectiva de rede, argumentamos que a magnitude que boas relações diplomáticas induzem as empresas a investir em países anfitriões amigáveis depende de suas conexões políticas com os governos domésticos. Aquelas com vínculos mais fortes com os governos domésticos podem melhor acessar e alavancar conexões diplomáticas intergovernamentais, portanto potencialmente beneficiando-se de maior acesso à informação, de redução de riscos políticos e de maior legitimidade. Essa capacidade de empresas politicamente conectadas é mais útil quando a fraca imparcialidade institucional no país anfitrião inibe o tratamento imparcial de investidores estrangeiros. Empiricamente, usando as decisões de localização de investimento no exterior de empresas chinesas, achamos que os tipos de vínculos governamentais do país (sejam eles organizacionais ou pessoais, sejam eles com governos centrais ou locais) e a imparcialidade das instituições de acolhimento são contingências importantes que afetam a utilização das relações diplomáticas por parte das empresas. Discutimos as implicações do nosso estudo para a pesquisa sobre a teoria das redes, vínculos políticos e a internacionalização das empresas de mercados emergentes.概要公司和政府在广阔的网络中运营,其中本国政府及其外交服务是公司和在外国地点的潜在合作伙伴之间的关键节点或“引荐点”。因此,国家之间的外交关系对外国投资地点的选择是重要的。使用网络视角,我们认为,良好的外交关系引导公司投资友好东道国的程度取决于它们与本国政府的政治联系。那些与本国政府有着更密切联系的公司可以更好地获得和利用政府间的外交关系,从而潜在地得益于增加的信息获取,减少的政治风险和增加的合法性。有政治关系公司的这种能力在脆弱的东道国制度公正性抑制对外国投资者的中立待遇的情况下更为有用。实证上,采用中国公司海外投资定位决策,我们发现,本国政府关系的类型(无论是组织上的还是个人的,无论是中央的还是地方政府的)和东道国制度公正性都是影响企业利用外交关系的重要的偶发事件。我们讨论我们的研究对网络理论,政治关系以及新兴市场公司国际化研究的启示。

What the Fox Says, How the Fox Works: Deep Contextualization as a Source of New Research Agendas and Theoretical Insights

Using Isaiah Berlins distinction between foxes and hedgehogs, John Childs approach to management research has been described as a fox in a community dominated by hedgehogs. I thus explore Childs approach to conducting research on China-related phenomena, and place his new work into this trajectory. In doing so, I offer insights into the opportunities and limitations of developing research agendas and generating new theoretical insights from research that is deeply contextualized.

Acquisition strategies in European emerging markets

This study investigates mergers and acquisitions in emerging economies. Combining a questionnaire survey with eleven case studies in Poland, Hungary and Lithuania, it develops a dynamic perspective of international acquisitions, and a refined acquisition typology. Implications are derived for managers and policy makers, and for scholarly research.

Corporate Strategies under Pressures of Globalization: Globalfocusing

On the global stage, competitive advantages are gained by creating, transferring and exploiting competences across operations and locations internationally. In consequence, conglomerates are redesigning their strategies to focus on core businesses, yet with a global scope. De-diversification and internationalization thus complement each other in a process of globalfocusing. This discussion paper outlines the shifts in the relative barriers to entry to countries and industries that have been driving these processes of change in corporate strategies on the global stage. On this basis, implications of the change in global strategy are derived for decision makers in both business and politics, reflecting the challenges of the global financial crisis.