Foreign divestments from Russia: An exploration of the mediating factors

Panibratov, Andrei; Brown, Tashauna

doi:10.1002/jsc.2208

Cited by 7 publications

(10 citation statements)

References 57 publications

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“…MNCs adopt international, multidomestic, global, and transnational strategies (Bartlett & Ghoshal, 1989) to approach the various international markets. Exit decisions are also often related to host country characteristics such as growth, uncertainty, and labor costs (Panibratov & Brown, 2018; Silva & Moreira, 2019). With increasing globalization, the world has become more homogenous and convergent (Levitt, 1983) meaning that, on one hand, MNCs understand world markets as a whole and, on the other hand, entry and exit decisions are more likely to be bound to market attractiveness than by home bias decisions.…”

Section: Literature Reviewmentioning

confidence: 99%

Foreign and multinational ownership impact on firm exit: A sectoral analysis

Moreira

2021

Manage Decis Econ

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This article examines the impact of foreign and multinational ownership on firm exit using a sample of Portuguese firms for the period 2007–2016, with Kaplan–Meier survival functions and a Cox proportional hazard model. The results show that purely domestic firms endure worse survival prospects than multinationals, but this is more related to firm‐level variables and not because of the effects of foreignness or multinational ownership. The disaggregated results at a sectoral level provide support for the contingent role of foreignness in very specific sectors of the Portuguese economy.

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Section: Literature Reviewmentioning

confidence: 99%

Foreign and multinational ownership impact on firm exit: A sectoral analysis

Moreira

2021

Manage Decis Econ

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“…a disseminative capacity, which is one of the elements of knowledge generation (Minbaeva, 2007). Knowledge is formed not only by good divestments, but companies can also create new knowledge from negative cases of corporate restructuring (Panibratov and Brown, 2018). Divesting helps companies to be more focused and efficient (Brauer et al, 2017), gain technological leadership, improve learning processes, fund other activities, set a clearer business focus (Srivastava and Wang, 2015) and help companies in subsequent divestures (Brauer and Laamanen, 2016).…”

Section: H2 External Knowledge Generation Positively Impacts Internal Onementioning

confidence: 99%

Knowledge cannibalism in the European ICT sector

Kiisk

Rungi

2020

TLO

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Purpose Based on the sample of the European information and communications technology (ICT) companies, this paper aims to identify which strategy of knowledge generation is most beneficial for companies: internal knowledge development or absorption of knowledge external to the company through corporate acquisition or merger. Design/methodology/approach In this study, a longitudinal analysis of European ICT companies was conducted, contrasting internal knowledge creation, in the form of patent accumulation and research and development (R&D) efforts, with external learning through merger-and-acquisition (M&A) activities to uncover the best strategies for performance maximization. Findings Results suggest that the two knowledge generation strategies are not complementary and demonstrate only marginal impact on organizational performance. However, intriguing patterns in combining the two became apparent. It was found that patent accumulation improves learning achieved through M&A activities, while also acting as a protection against corporate takeover. At the same time, the internal knowledge generation strategy was found to have a negative impact on financial performance, with external knowledge generation demonstrating somewhat mixed results. Practical implications This paper provides practical insights into the patterns of internal and external knowledge generation activities. The two strategies were found not to be complementary, implying that companies must carefully choose their preferences. Originality/value This large-scale study tackles the interplay between internal and external knowledge generation strategies, which are mostly studied separately. It reveals new patterns in corporate acquisition and divestment strategies as sources of new knowledge. It also ties the knowledge paradigm to organizational performance.

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“…The socio-economic uncertainty in a country (e.g. political instability, currency appreciation and exchange rate volatility) can lead to divestment because it increases the costs and governance issues of running diversified businesses (Berry, 2013;Panibratov and Brown, 2018;Song, 2014).…”

Section: Market Factors Leading To Divestmentmentioning

confidence: 99%

“…The appointment of a new CEO, with no attachment to previous investment decisions is accepted as promoting FD (McDermott, 2010;Torneden and Boddewyn, 1974). Moreover, divestment is more likely when managers (Nees, 1978) and firms have prior divestment experience (Panibratov and Brown, 2018;Silva and Moreira, 2019).…”

Section: Firm Factors Leading To Divestmentmentioning

confidence: 99%

“…Unfavorable attitudes from home countries towards host countries lead to external pressures from stakeholders leading to divestment Soule et al (2014), Wan et al (2015) Country growth Economic growth is indicative of the attractiveness of a country or industry to FDI Li (1995), Benito (1997), Delios and Makino (2003), Berry (2013) Unfavorable environment Unfavorable macroeconomic conditions affect market conditions and market expectations about the future Godart et al (2012), Varum et al (2014) Environmental changes Changes in the conditions and assumptions in which the initial investment took place Belderbos (1997), Belderbos (2003), Griffin (2003), McDermott (2010) Environmental uncertainty Uncertainty increases the costs and governance issues of diversified firms to efficiently manage their businesses Berry (2013), Song (2014), Panibratov and Brown (2018) Labor costs Decreases subsidiaries' competitiveness because of increasing costs of production (2015), Sousa and Tan (2015) New investments New investments increase the competitive pressures between the existing assets within the parent MNC network Procher and Engel (2018) Internationalization speed…”

Section: Home Country Political Characteristicsmentioning

confidence: 99%

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Subsidiary survival: a case study from the Portuguese electronics industry

Silva

Moreira

2019

RIBS

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Purpose The existing literature suggests that multinational corporations (MNCs) divest subsidiary units whenever they cease to enjoy the advantages of ownership, location or internalization. However, not all MNCs divest under these conditions. This paper aims to explore the factors that contributed to the survival of a particular subsidiary and prevented it from being divested. Design/methodology/approach The analysis focuses on an individual subsidiary of a large foreign MNC in the electronics industry, which divested other subsidiaries from Portugal. Data were collected using semi-structured interviews. Findings The subsidiary’s diverse customer base, specificity and high level of efficiency, the local advantages, the existing governmental agreements and the parent MNC’s previous unsuccessful relocation experiences seem to have contributed to the survival of the subsidiary. Research limitations/implications Although the results of the case study are not generalizable to the entire population of firms, the featured case study is a rare survival success story in the Portuguese electronics industry. Practical implications The proposed framework may offer public authorities measures to create conditions to encourage firms to retain their investment in a particular site. For corporate strategists, new perspectives on subsidiary survival are provided. Originality/value This paper is one of the few qualitative studies in the field of subsidiary survival. The results offer an integrative framework on which factors contribute to the survival of a subsidiary located on a comparatively unfavorable labor cost location and support the role of the organizational learning and of previous failed relocation experiences and relocation barriers when a parent MNC decides whether to retain a unit.

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Foreign divestments from Russia: An exploration of the mediating factors

Cited by 7 publications

References 57 publications

Foreign and multinational ownership impact on firm exit: A sectoral analysis

Foreign and multinational ownership impact on firm exit: A sectoral analysis

Knowledge cannibalism in the European ICT sector

Subsidiary survival: a case study from the Portuguese electronics industry

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