How does ownership influence business growth? A competitive dynamics perspective

Yang, Wei; Meyer, Klaus E.

doi:10.1016/j.ibusrev.2018.02.009

Cited by 18 publications

(23 citation statements)

References 118 publications

(167 reference statements)

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“…Moreover, liabilities of foreignness may also arise from MNE subsidiaries' dependence on their parent organization. For example, decision processes may involve actors outside the country, which slows down the speed of competitive actions that MNE subsidiaries may undertake in local competition (Wan et al, 2020;Yang & Meyer, 2019). Moreover, strategic actions by MNE subsidiaries may have to consider the global strategic objectives of the parent firm.…”

Section: Market Strategiesmentioning

confidence: 99%

Managing the MNE subsidiary: Advancing a multi-level and dynamic research agenda

2020

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Multinational enterprise (MNE) subsidiaries abroad are important organizations in their own rights. They typically hold some of the MNE's most critical resources, and operate at the forefront of complex international environments. In this review, we identify and organize theoretical and empirical research on subsidiary management based on over 600 articles in leading academic journals. We develop a conceptual framework that integrates complementary streams of theoretical and empirical research with the subsidiary as its focal unit of analysis. In particular, we review six lines of research on subsidiary scope, practices, knowledge management, engagement with local market and nonmarket actors, performance, and individuals within subsidiaries. We highlight theoretical perspectives that have contributed to, and been advanced by, research on MNE subsidiaries. Based on the review, we explore future research agendas, linking the contemporary research themes with two main thrusts. First, subsidiary management is a multi-level phenomenon that would benefit from more microfoundational research. Second, subsidiary management operates at key interfaces of technology paradigm shifts, and of disruptions in the political and institutional environment. Research into the dynamics of subsidiary management would thus enhance our understanding of international business in a volatile global economy. Journal of International Business Studies (2020) 51, 538-576.

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Section: Market Strategiesmentioning

confidence: 99%

Managing the MNE subsidiary: Advancing a multi-level and dynamic research agenda

2020

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“…CPC introduce the government (or other political actors) as influential stakeholders who can impose their own objectives on the firm—possibly mediated by a hierarchy of control and, hence, multiple agency conflicts (Cuervo‐Cazurra, Inkpen, Musacchio, & Ramaswamy, ). The objectives of political stakeholders and the added complexities of the governance structures have been shown to influence firms' choice of growth strategies (Yang & Meyer, ), their propensity to enter foreign markets (Estrin et al, ; Hu & Cui, ), and their internationalization performance (Zou & Adams, ). These studies suggest that strategic activities of firms, such as internationalization, need to be aligned with the interests of political actors who are connected to the firm through CPC.…”

Section: Cpc In International Business: a Literature Reviewmentioning

confidence: 99%

Corporate political connections in global strategy

Cui

et al. 2018

Global Strategy Journal

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Research Summary: The role of corporate political connections (CPC) in global strategy has been examined in a variety of institutional contexts and analyzed from different theoretical perspectives. This literature, along with the articles in this special issue, demonstrate the importance of contextualization in understanding the motivations, processes, and outcomes of firms developing and utilizing CPC in global strategy. We argue that context‐specific aspects of CPC, such as the political system in which the firm is operating, need to be incorporated more systematically to advance theory development globally. Future studies on CPC can advance this agenda through cross‐country comparative research, deeper engagement with political science literature, linking CPC with other nonmarket strategies, and configurational analysis of the multidimensional context of CPC. Managerial Summary: Multinational companies not only compete in a market environment, they engage with political actors in both their home and host societies. This special issue brings together research that explores how companies use their corporate political connections (CPC) to achieve firm objectives. Each study takes a different approach to studying the phenomenon, informed by the national context of their empirical data. Together, these studies highlight the importance of CPC around the world. However, the variation in research approaches also highlights that the “how and why” of companies' development and utilization of CPC vary across cultures and political systems. In consequence, the development of managerial recommendations always needs to carefully consider the pertinent political context of the available empirical evidence.

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“…This finding is further corroborated by family ownership's significant, negative impact on growth in all our models, indicating that family ownership plays a crucial role in constraining business growth. With more family financial wealth and SEW at stake, a higher family ownership concentration implies a stronger concern for potential SEW and financial losses, which favors risk‐reducing decisions that enhance the firm's survival at the expense of business growth (Yang and Meyer, 2018). It is also noteworthy that when comparing FM's contrasting effects on growth, family ownership seems to be uniformly detrimental to business growth, 1 emphasizing the importance of differentiating the type of family involvement in the business to understand firm growth.…”

Section: Discussionmentioning

confidence: 99%

A Mixed Gamble Approach of the Impact of Family Management on Firm's Growth: A Longitudinal Analysis

Bauweraerts

Diaz‐Moriana

Arzubiaga

2019

European Management Review

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We draw upon the socioemotional wealth perspective and the mixed gamble approach to employ a five-year panel dataset of 223 Belgian private family firms to investigate the relationship between family management and growth, with family management ownership, generational involvement, and the CEO's family status moderating this link. We find an inverted U-shaped relationship, with growth reaching its maximum at intermediate levels of family management. Additionally, we demonstrate that family management ownership, generational involvement, and the presence of a family CEO hamper the family management-growth link: all these variables attenuate the positive effect of low to moderate family management, and accentuate the negative impact of high family management. Consequently, our research contributes to a deeper understanding of the relationship between family management and growth.

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How does ownership influence business growth? A competitive dynamics perspective

Cited by 18 publications

References 118 publications

Managing the MNE subsidiary: Advancing a multi-level and dynamic research agenda

Managing the MNE subsidiary: Advancing a multi-level and dynamic research agenda

Corporate political connections in global strategy

A Mixed Gamble Approach of the Impact of Family Management on Firm's Growth: A Longitudinal Analysis

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