Stefan Eckert

A Commentary on Risk Reduction by Geographic Diversification

The relationship between multinationality and value is still one of the most fundamental questions in IB research. Gande, Schenzler, and Senbet (2009) claim to have found empirical evidence for the incomplete capital markets theory (ICMT), which stipulates that investors value corporate multinationality due to its risk‐reducing effect. We show here that their findings do not support the hypothesis that investors value geographical diversification at the firm level because of its risk reducing effect. Further, a review of extant research shows that empirical results concerning the valuation impact of the risk‐reducing effect of geographical diversification at the firm level have to be regarded with caution due to conceptual and methodological inconsistencies. Consequently, this paper proposes several methodological refinements.

The value of internationalization: Disentangling the interrelationship between regionalization strategies, firm-specific assets related to marketing and performance

Purpose Current discussions in the international business community have demonstrated that the focus of MNCs operations tends to be more regional than global. This paper aims to investigate the performance effects of intra-regional and inter-regional strategy among large companies in European countries. Design/methodology/approach The authors test the research hypothesis on a sample of 25 largest European companies from six regional, as well as global-oriented, industries using the random effects model. Findings The authors find that an increase in a firm’s degree of regionalization leads to value enhancement. On the other side, the results reveal that an inter-regional strategy is associated with value discount. Moreover, empirical findings show that the higher the degree of inter-regional expansion the more pronounced is the effect of firm-specific assets related to marketing on performance. Hence, the negative valuation impact of an inter-regional strategy may be attenuated or even overcome through the interplay of inter-regional internationalization and firm-specific assets related to marketing. Originality/value By introducing a theoretical framework, the authors discuss the performance effects of regional-oriented and inter-regional-oriented strategies. Furthermore, they investigate the moderating effect of inter-regional expansion on the performance impact of firm-specific assets related to marketing in the case of large companies. Empirically, they test the hypotheses on a sample of large firms for an 11-year period using different measurements regarding the degree of intra-regional and inter-regional expansion.

Zum Einfluss der Internationalität von Unternehmen auf den Shareholder Value – Eine empirische Untersuchung deutscher börsennotierter Aktiengesellschaften im Zeitraum 1990 bis 2006

Ist die Internationalitat von Unternehmen ein Erfolgsfaktor? Die Betrachtung der Historie dieser wissenschaftlichen Fragestellung zeigt, dass in der fruhen Phase der akademischen Auseinandersetzung kritische Uberlegungen bezuglich des Zusammenhangs von Internationalitat und Unternehmenserfolg mehr oder weniger implizit beiseite gewischt wurden: Internationale Unternehmen mussen erfolgreich sein, sonst waren sie nicht international tatig, so konnte man die zu dieser Zeit in der Wissenschaft latent vorherrschende Auffassung umschreiben. Insofern stelle die Internationalitat entweder einen Erfolgsfaktor im Sinn einer erfolgsverursachenden Bedingung oder zumindest einen zuverlassigen Indikator erfolgreicher Unternehmenstatigkeit dar.

Kulturschock in Deutschland? — Zeitlicher Verlauf und Leistungseffekte der kulturellen Anpassung asiatischer Führungskräfte in Deutschland

SummaryThe problem of cultural incompatibility between international firms’ expatriates and the foreign host country and its consequences for the working performance has been discussed intensively in the literature. Although a number of studies have been conducted on Western expatriates in Asia, studies on Asian expatriates located in European countries are rather rare. In this contribution determinants of expatriates’ adjustment to host country culture are analyzed by a survey of Asian expatriates in Germany. According to the concept of Black/Stephens and its modifications introduced by Selmer several dimensions of adjustment have been differentiated. For three of these four dimensions no U-curve development — as implied in theory — can be discovered. The performance of Asian expatriates in Germany seems to be influenced mainly by their work adjustment which tends to improve with time spent working in the host country.