Returnee managers as an asset for emerging market multinational enterprises: Chinese cross-border acquisitions (2008–2017)

Xie, Zaiyang; Wang, Liang

doi:10.1016/j.jwb.2021.101270

Cited by 8 publications

(12 citation statements)

References 85 publications

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“…During this time, private enterprises replaced SOEs as the primary source of China’s OFDI (Li and Ding, 2017). CBAs are the most common form of Chinese OFDI (Xie and Wang, 2022): 92% of Chinese OFDI into the USA has taken the form of acquisition, whereas CBAs accounted for only 62% of the global FDI value in 2018 (UNCTAD, 2019). In comparison to greenfield FDI, CBAs provide faster access to foreign markets and strategic assets, despite their postacquisition integration costs (DePamphilis, 2019; Parente et al , 2020; Zhang et al , 2019).…”

Section: Literature Methods and Hypothesesmentioning

confidence: 99%

Fleeing from systemic risk at home through cross-border acquisitions

Shao¹,

Wang²,

Xie³

et al. 2023

MBR

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Purpose Viewing the domestic downside risk as a “pushing” factor for outward foreign direct investment (OFDI), this study aims to examine the surge in Chinese cross-border acquisitions (CBAs) between 2008 and 2017, a unique window when private firms in China were allowed to conduct CBAs. Design/methodology/approach This study examines the effect of down-side risk on cross-border acquisition performance by using the sample of Chinese A-share listed companies from 2008 to 2017. Specifically, this study considers three kinds of systemic risk, systematic risk and idiosyncratic risk, and respectively examines their impact on CBAs activities; this study also investigates their subsequent results after CBAs activities. The contingency effect of state ownership on the above relationship is also discussed. Findings The findings reveal that pre-CBA systemic risk explains the volume of CBA activities; CBAs are followed by a reduction in systemic risk; the interactions between systemic risk and CBAs decrease with the level of state ownership; and the above results do not hold for traditional risk measures (i.e. systematic risk and idiosyncratic risk). Originality/value This study contributes to the literature by revealing the role of systemic risk as a “pushing” factor in the context of OFDI and suggesting an alternative explanation for CBAs from China: Chinese firms (especially private firms) took advantage of the rare opportunity between 2008 and 2017 given by the government to transfer assets overseas through CBA.

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Section: Literature Methods and Hypothesesmentioning

confidence: 99%

Fleeing from systemic risk at home through cross-border acquisitions

Shao¹,

Wang²,

Xie³

et al. 2023

MBR

Self Cite

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“…3.2.1 Moderating effect of returnee managers. Returnee managers normally possess foreign education and international work experience, influencing their strategic decisionmaking (Kenney et al, 2013;Xie and Wang, 2022). Executive background, beliefs, values and life experience typically shape behaviors, strategic choices and how managers manage their firms (Hambrick, 2007).…”

Section: International Human Resource Mobility Upper Echelons Theory ...mentioning

confidence: 99%

“…4.3.3.1 Returnee managers. This study adopts the definition of returnee managers and TMT in Dai and Liu (2009), Roberts and Beamish (2017) and Xie and Wang (2022). Returnee managers are defined as those who were born in an emerging market country and (1) were educated overseas or (2) worked overseas, frequently in developed countries and then returned to their home country to work at a company.…”

Section: Measures 431 Dependent Variable: Number Of Business Divestmentsmentioning

confidence: 99%

Strategic divestment of emerging market firms: the influence of returnee managers and CEO characteristics

Kalasin

2023

JGM

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PurposeThis study aims to examine the role of returnee managers that can affect the strategic-divestment decision of emerging-market firms (EM firms). Drawing on arguments from the upper echelons theory and international human resource mobility perspectives, this study aims to propose that returnee managers influence corporate divestitures when the business outlook is negative. In addition, this study aims to examine the interplay between returnee managers and CEOs, whose characteristics can foster or undermine the efforts of returnee managers to engage in corporate divestments.Design/methodology/approachThis study examines 278 firms from nine emerging economies. The negative binomial regression was employed to estimate the model. In the robustness checks, the logistic regression was adopted to confirm the earlier findings.FindingsThe empirical results support the notion that returnee managers strengthen the relationship between firm performance and divestments. Because of the limited liabilities of foreignness and outsidership, returnee managers can gain social trust and credibility through communication and social interaction. Furthermore, the results provide mixed support for the moderating effect of CEO characteristics on the performance–divestment relationship.Practical implicationsThis study reveals that returnee managers are a great asset for EM firms that aim to find synergies and upgrade their capabilities through asset reconfiguration, which is an essential activity of emerging market firms to integrate themselves into the global competition. Meanwhile, CEO characteristics can foster (through their education level) or hinder (due to their age) divestment attempts, influenced by returnee managers.Originality/valueThis study explores an understudied phenomenon in international business (IB): strategic divestment of EM firms. The literature that examines strategic divestment and corporate refocusing in emerging markets is extremely limited. Furthermore, this study explores the novel topic that intersects the international business (IB) and international human resource management (IHRM) research areas. Specifically, this study investigates the impact of returnee managers on strategic divestments.

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“…In addition to compliance with CSR legal obligations to deliberately improve their social reputation and financial performance (Petrenko et al, 2016), top managers do not hesitate to undertake meaningful and powerful decisions to improve their CSR involvement (Beji et al, 2021). Thus, although the acts of planning and completing CSR are representative of the enterprise, major CSR policies and actions are formed by a small number of top managers (Xie and Wang, 2022). However, distinctly less emphasis has been placed on endogenous motivation; especially scholars have not paid sufficient attention to the microfoundations of CSR at the level of top managers (Aguinis and Glavas, 2019).…”

Section: Literature Reviewmentioning

confidence: 99%

“…, 2021). Thus, although the acts of planning and completing CSR are representative of the enterprise, major CSR policies and actions are formed by a small number of top managers (Xie and Wang, 2022). However, distinctly less emphasis has been placed on endogenous motivation; especially scholars have not paid sufficient attention to the micro-foundations of CSR at the level of top managers (Aguinis and Glavas, 2019).…”

Section: Literature Reviewmentioning

confidence: 99%

On the micro-foundations of corporate social responsibility: a perspective based on dynamic managerial capabilities

Chen

Guo

2022

CCSM

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PurposeThis study proposes that the three core underpinnings of dynamic managerial capabilities (DMCs) – managerial cognition, managerial human capital and managerial social capital – represent individual-level micro-foundations that influence corporate social responsibility (CSR). It further explores the interaction mechanism between the three underpinnings in influencing CSR, and their influence depends on the technological turbulence caused by big-data-related technologies.Design/methodology/approachThis study uses a quantitative research method and partial least squares structural equation modelling (PLS-SEM) to test the relationship between latent factors based on a sample of 270 Chinese top managers.FindingsThe three core underpinnings of DMCs are positively related to CSR. Managerial human capital and managerial social capital mediate the relationship between managerial cognition and CSR. Technological turbulence's moderating effects are also tested. Specifically, technological turbulence amplifies the positive relationship between managerial cognition, managerial human capital and CSR but negatively moderates the relationship between managerial social capital and CSR.Originality/valueWhy are some firms more willing to participate in CSR than others mainly depend on the fact that the actual participants of CSR are the top managers who formulate strategies and implement CSR plans. This study, grounded in the DMCs framework and the upper echelons perspective, is arguably the first to link DMCs' three core underpinnings and CSR, and further explore the multiple drivers' mechanisms and boundary conditions. This study contributes to individual micro-foundation of CSR literature, and advances the understanding of whether and how top managers influence CSR engagement.

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Returnee managers as an asset for emerging market multinational enterprises: Chinese cross-border acquisitions (2008–2017)

Cited by 8 publications

References 85 publications

Fleeing from systemic risk at home through cross-border acquisitions

Fleeing from systemic risk at home through cross-border acquisitions

Strategic divestment of emerging market firms: the influence of returnee managers and CEO characteristics

On the micro-foundations of corporate social responsibility: a perspective based on dynamic managerial capabilities

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