The Effect of National Context on Perceptions of Risk: A Comparison of Planned Versus Free-Market Managers

Makhija, Mona; Stewart, Alice C.

doi:10.1057/palgrave.jibs.8491042

Cited by 97 publications

(63 citation statements)

References 59 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…They draw on Makhija and Stewart (2002), who suggest that the specific institutions employed in a given environment influence the nature of information generated in that environment. For example, well-developed stock markets such as those in the United States International Business Responses to Institutional Voids create demand for highly accurate and timely information on firms and the myriad of factors that have a bearing on their performance.…”

Section: Contributions To the Special Issuementioning

confidence: 99%

“…Voids reflect prevailing institutional conditions that disturb the functioning of markets, enhancing the likelihood of opportunism (including corruption), excessive rents to a few actors (reducing entrepreneurship) and market power (discouraging competition). In this way, institutional voids have the capacity to shed important light on key issues that concern international business scholars, such as the effects of institutions on innovation (Carney, Dieleman, & Taussig, 2016), foreign direct investment (Meyer & Peng, 2016), and risks (Makhija & Stewart, 2002).…”

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

International business responses to institutional voids

et al. 2017

View full text Add to dashboard Cite

For nearly two decades, scholars in international business and management have explored the implications of institutional voids for firm strategy and structure. Although institutional voids offer both opportunities and challenges, they have largely been associated with firms' efforts to avoid or mitigate institutional deficiencies and reduce the transaction costs associated with operating in settings subject to those institutional shortcomings. The goal of this special issue is to advance scholarship on this topic by (a) exploring institutional voids that are new to the literature, (b) providing a deeper assessment of the different ways in which firms respond to these voids, and (c) utilizing diverse disciplines and theoretical approaches to do so. In this introduction, we first review and synthesize extant research on institutional voids, tracking the evolution of institutional void scholarship since the inception of the concept (Khanna & Palepu, Journal of Economic Literature, 45(2):331-372, 1997) and providing our perspective on its contributions and limitations. We then summarize the contributions of the articles included in this special issue. In addition to identifying an array of institutional voids -economic and social -the articles highlight four different strategies for responding to them: internalization, substitution, borrowing and signaling. Drawing on these, we develop new insights on the implications of institutional voids for firm behavior. We conclude with suggestions for future research.

show abstract

Section: Contributions To the Special Issuementioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

International business responses to institutional voids

et al. 2017

View full text Add to dashboard Cite

show abstract

“…Although the countries in this region show differences in dominant languages, religions and ethnicity, the grouping of the CEE countries is grounded in a shared recent history of experience with a communist regime and the liberation therefrom. The communist heritage has had a far-reaching impact on the formal and cultural institutions (North, 1990) in these countries, and is visible in distinct cultural traits such as a lack of initiative taking and risk aversion among CEE managers (Luthans et al, 2000;Makhija and Stewart, 2002). In addition to the joint experience of socialism, the transition process towards market economic systems implied similar cultural experiences throughout the region (Peng and Heath, 1996).…”

Section: Cultural Blocsmentioning

confidence: 99%

“…Hence it is not surprising that CEE countries are often treated as one bloc, both by institutions such as UNCTAD, the International Monetary Fund and the European Bank for Reconstruction and Development, and by researchers, including the authors of papers in JIBS (Meyer, 2001;Meyer and Estrin, 2001;Makhija and Stewart, 2002;Uhlenbruck, 2004;Meyer and Peng, 2005;Wooster, 2006).…”

Section: Cultural Blocsmentioning

confidence: 99%

Internationalising in small, incremental or larger steps?

2007

View full text Add to dashboard Cite

We argue that companies may enter foreign environments either incrementally, as suggested by long-established theory, or by taking larger steps that may result in lower initial performance but, through learning and experience, lead to increased performance in future expansions. This idea is corroborated by the experience of Dutch companies entering into Central and Eastern Europe. We also find that expansion steps may be too large, thereby limiting the exploration of foreign environments. Our study suggests that sequential internationalisation strategies do still matter, and that companies have to balance exploitation and exploration in internationalisation.

show abstract

“…Executives with high discretion are characterized to be more risk takers (Roth, 1992). Also, environments that encourage risk-taking behavior tend to provide greater degree of managerial discretion (Makhija and Stewart, 2002). Deeming that into consideration, women or female CEOs' exhibited to take strategic actions that do not embrace any risk (Bernasek and Shwiff, 2001).…”

Section: Cultural Practices Vis-à-vis Gender Egalitarianismmentioning

confidence: 99%

Strategizing in a focused context: managerial discretion in the Arab world

Youssef¹,

Christodoulou

2017

JSMA

View full text Add to dashboard Cite

Purpose The purpose of this paper is to broaden the national-level construct of managerial discretion and to investigate the effect of cultural practices on executive discretion. Design/methodology/approach Based on a sample of six Arabian countries and using a panel of prominent cross-cultural scholars who provided 262 discretion scores for the sample countries, the authors replicate and extend the national framework of Crossland and Hambrick (2011) in a new cultural context. The cultural dimensions were measured using survey responses of middle managers based on House et al.’s (2004) cultural practices scale. Findings The authors extend the national-level framework of managerial discretion and find that an encompassing array of cultural practices plays a crucial role in shaping the degree of discretion provided to CEOs. The authors empirically demonstrate that power distance, future and performance orientation, along with gender egalitarianism and assertiveness have positive relationships with managerial discretion. However, institutional collectivism, uncertainty avoidance and humane orientation negatively affect the degree of discretion provided to CEOs. Originality/value The study fills a gap in the literature regarding the national-level framework of managerial discretion. The results indicate that executives can take idiosyncratic and bold actions to the extent to which the cultural environment allows them to do so. Also, the authors discover new national-level antecedents of managerial discretion that have not been considered in earlier studies and confirm the context dependency of this concept.

show abstract

The Effect of National Context on Perceptions of Risk: A Comparison of Planned Versus Free-Market Managers

Cited by 97 publications

References 59 publications

International business responses to institutional voids

International business responses to institutional voids

Internationalising in small, incremental or larger steps?

Strategizing in a focused context: managerial discretion in the Arab world

Contact Info

Product

Resources

About