The Impact of Learning From Failure on New Ventures’ Sustainable Development

Shirshitskaia, Ekaterina; Zhou, Xue; Zhang, Ling

doi:10.3389/fpsyg.2021.784518

Cited by 4 publications

(1 citation statement)

References 53 publications

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“…By the same token, the parent firm also possesses a unique set of resources that it can share with its subsidiaries, which is important because the more a subsidiary possesses such resources, the more that others will depend on it, which leads to a more strategic role in the MNC network for the subsidiary (Barney, 1991; Birkinshaw et al ., 1998; Grant, 1991; Gupta and Govindarajan, 1991; Roth and Morrison, 1992; Rugman and Verbeke, 2001). Therefore, subsidiary survival or failure and its contribution to the MNC network is dependent on leveraging resources from parent and other sister subsidiaries (Kostova and Roth, 2003; Shirshitskaia et al , 2021), which is facilitated by the orchestration capability of the MNC (Oliveira and Gonzalez, 2022). In addition, one of the major benefits of a well-designed network is establishing avenues to facilitate interunit resource exchanges that are needed to build an MNC-wide competitive advantage (Ghoshal and Bartlett, 1990; Raab and Kenis, 2009; Tsai, 2001).…”

Section: Orchestration: a Dynamic Capabilities Perspectivementioning

confidence: 99%

MNCs’ orchestration capability of the 3Ds and financial performance

Abdelzaher

Torre

Rolf

2022

RIBS

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Purpose In today’s ever-increasing context of volatile, uncertain, complex and ambiguous market conditions, the shifts of countries’ protectionist policies toward inward Foreign Direct Investment (FDI), and an increased gap between headquarters’ (HQ) and subsidiaries’ perspectives on what makes business sense, it has become apparent that challenges toward foreign expansion are becoming more severe and require a multidimensional dynamic approach. The authors draw from orchestration theory, dynamic capabilities literature and previous literature on dimensions of internationalization [specifically, density, geographic distance and degree of diversity of the multinational corporation (MNC) subsidiary network] to argue that firms must enhance their orchestration capability. In doing so, this study aims to highlight the nuances of orchestrating a three-dimensional (3D) conceptualization of MNCs’ international configurations. Design/methodology/approach The authors analyzed the patterns of configurations that are adopted by MNCs. This sample was made up of the international configuration of 78 Fortune 500 MNCs consisting of 3,318 foreign subsidiaries. Furthermore, the authors examined the impact of different configurations of the 3Ds on firm performance using ordinary least squares regression analysis. Findings While the research did indicate that the sample MNCs adopted the sample configurations of the three internationalization dimensions more frequently than others, the authors found that orchestrating MNCs with an international configuration characterized by high density, low geographic distance and low internetwork scope diversity had a positive impact on firm performance. Practical implications While international expansion is often motivated by financial performance or market/resource gains, it is also impacted by the firm’s dynamic capability profile. Thus, as MNCs seek to continue to expand globally, they must assess and, if needed, develop their management team’s orchestration capability, which includes effectively determining how the addition or removal of a subsidiary will impact the density, geographic distance and diversity dynamics of the MNC’s international configuration. Finally, the management team needs to be able to devise plans to respond to the potential challenges associated with each of these dimensions. Originality/value The contribution of this study includes bringing a dynamic capabilities lens to the extant international business literature examining the multinationality and performance relationship by highlighting the importance of an MNC’s process orchestrating capability that is needed for firms to effectively manage increasingly complex subsidiary networks. It also conceptually explains and empirically supports that some configurations are likely to yield higher returns than others, which can act as a guide for firms as they are seeking to expand in more geographically distant as well as diverse sectors. Furthermore, this study highlights the need for a multidimensional simultaneous approach to the examination of internationalization to performance relationship. Finally, it highlights the tradeoffs that MNCs must address across the orchestration of the three internationalization dimensions using a dynamic capabilities theoretical lens that acknowledges the differences in perspective that exist between HQs and subsidiaries.

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Section: Orchestration: a Dynamic Capabilities Perspectivementioning

confidence: 99%

MNCs’ orchestration capability of the 3Ds and financial performance

Abdelzaher

Torre

Rolf

2022

RIBS

View full text Add to dashboard Cite

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Unraveling entrepreneurial comebacks: the curvilinear relationship between entrepreneurial failure and reentry intention

Fu,

Xu,

Zhang

et al. 2024

Curr Psychol

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Research on the Relationship between Network Insight, Supply Chain Integration and Enterprise Performance

Lyu¹,

Geng²,

Yu³

2022

Systems

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Based on the resource orchestration theory, this study built a research model to understand the effect of supply chain network insight and supply chain integration on enterprise performance. We also involved the contingency theory to investigate the moderating effect of environmental uncertainty on supply chain integration and enterprise performance. We collected the data samples from 405 enterprises and used the SEM approach to verify the model. Results demonstrated the direct path of network insight to promote enterprise performance, the indirect path of supply chain integration as a mediating factor, and the role of environmental uncertainty as a boundary condition for the relationship between supply chain integration and enterprise performance, thus making theoretical and practical contributions to the management of supply chain resources and relationships and the performance enhancement of manufacturing.

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The Impact of Learning From Failure on New Ventures’ Sustainable Development

Cited by 4 publications

References 53 publications

MNCs’ orchestration capability of the 3Ds and financial performance

MNCs’ orchestration capability of the 3Ds and financial performance

Unraveling entrepreneurial comebacks: the curvilinear relationship between entrepreneurial failure and reentry intention

Research on the Relationship between Network Insight, Supply Chain Integration and Enterprise Performance

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