Malika Richards

Financial Implications of Local and Nonlocal Rival Isomorphism A Signaling Paradox

We develop an isomorphism-signaling framework to explain the likelihood of isomorphic behavior (and nonconformity) by a focal firm toward local rivals and nonlocal rivals and then predict financial performance associated with the action. In the presence of asymmetric information, we predict a causal relationship between rival isomorphism and financial performance that reveals a paradox—that is, we theorize and show conditions in which “conforming” reflected by rival isomorphic behavior is a signal that “separates” high-quality from low-quality firms. We consider a firm’s costs and benefits of local and nonlocal rival isomorphism and assert that a firm can signal its quality, which affects financial performance of the equity offering. We test and find support for our hypotheses using a sample of firms raising capital abroad from 1994 to 2005.

Relational Perspectives on Leaders’ Influence Behavior The Mediation of Western Leader–Member Exchange and Chinese Guanxi

To understand leader influence behavior in organizations, it is essential to understand how subordinates interpret the different influence strategies used by their superiors. In this study, we examine the effect of influence behavior on organizational commitment from two relational perspectives with employees from Chinese and Western societies. Drawing on relational attribution theory, we develop a multiple mediation model to determine whether the relationships between influence behavior and organizational commitment are meditated by leader–member exchange (LMX) and/or guanxi. We also examine whether the effects vary across the two broad cultural samples. Results indicate the mediating effect is contributed mainly by LMX, not guanxi. Results show no significant cross-cultural differences, suggesting the theoretical framework we propose may be generalizable across cultures. Implications and ideas for future research are provided.

Modes of international external technology innovation: evidence from a global sample

We investigate the factors that may influence a firms choice of external technology innovation in foreign countries based on the eclectic theory. With a sample of 1,094 overseas R&D collaborations in 42 countries by US companies, we examine the impact of three firm-level ownership endowments – technological competency, organisational slack, as well as location factors on such decisions. Our results show that industry relatedness between US companies and their overseas partners demonstrates significant moderator effects. Also, when expanding into culturally distant nations, US multinationals are much more likely to form R&D joint ventures or non-equity alliances than corporate venture capital investments.

The effects of strategies on the management control-performance relationship in Sino joint ventures

Many studies of control and international joint venture (IJV) performance have focused on ownership and management control. We develop a conceptual framework to explain how strategies affect the relationship between management control and joint venture performance. Specifically, we focus on serving the host-country customer and extending the life cycle of the foreign partners products. Using a sample of Sino–U.S. and Sino–Japanese joint ventures, we found that serving the host-country customer strengthens the positive relationship between management control by the foreign partner and IJV performance. However, extending the product life cycle of the foreign partners products weakens the positive relationship between management control by the foreign partner and IJV performance. We discuss the performance implications of dealing with both strategies and reveal a complex relationship between equity ownership, management control, and IJV performance.