The multi-faceted role of experience dealing with policy risk: The impact of intensity and diversity of experiences

Jiménez, Alfredo; Benito‐Osorio, Diana; Puck, Jonas F.; Klopf, Patricia

doi:10.1016/j.ibusrev.2017.05.009

Cited by 35 publications

(31 citation statements)

References 98 publications

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“…Second, we also contribute to the literature on political risk and FDI by showing empirical evidence of the simultaneous risk‐averse and risk‐tolerant behavior of companies investing in private participation projects. Several studies have shown that political risk is a factor that deters investments (Henisz, ; Henisz & Delios, ), but recent contributions to the field have also highlighted that it can be a source of opportunities (Fernández‐Méndez et al, ; García‐Canal & Guillén, ; Holburn & Zelner, ; Kwok & Tadesse, ; Oliver & Holzinger, ) and even some companies pursue a proactive approach toward political risk trying to obtain competitive advantages in risky locations (Akbar & Kisilowski, ; Jiménez, Benito‐Osorio, Puck, & Klopf, ; Liu, Gao, Lu, & Lioliou, ). Our results combine both perspectives and show that political risk is a complex multidimensional phenomenon that might involve different components that companies might find either as attractors or as challenges.…”

Section: Discussionmentioning

confidence: 99%

Political risk in private participation projects: The effects of political discretionality and corruption

Jiménez

Bayraktar

2020

Thunderbird Intl Bus Rev

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This article investigates the impact of political risk on the performance of private participation infrastructure projects in emerging markets. Previous studies have shown that firms in regulated sectors are prone to employ political capabilities in their investments overseas. Our analysis of 32,257 projects in 114 emerging countries from 1997 to 2013 shows that higher political discretionality in the host country is negatively associated with project completion. In contrast, a higher level of corruption in the host country is positively associated with project completion. The study makes a contribution to the literature on political risk in foreign direct investments. K E Y W O R D Scorruption, foreign direct investments, political discretionality, political risk, private participation projects

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Section: Discussionmentioning

confidence: 99%

Political risk in private participation projects: The effects of political discretionality and corruption

Jiménez

Bayraktar

2020

Thunderbird Intl Bus Rev

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“…Moreover, a firm's prior experience in dealing with uncertainty and risk in a foreign market may be as important as a prospective partner's knowledge. In fact, MNCs routinely rely upon their prior experience to guide their decisions, strategy and behavior under conditions of uncertainty and risk (Jiménez et al 2018).…”

Section: Private Corruption and Organizational Structurementioning

confidence: 99%

Private Sector Corruption, Public Sector Corruption and the Organizational Structure of Foreign Subsidiaries

Sartor

Beamish

2019

J Bus Ethics

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Corporate anti-corruption initiatives can make a substantial contribution towards curtailing corruption and advancing efforts to achieve the United Nations' Sustainable Development Goals. However, researchers have observed that underdeveloped assumptions with respect to the conceptualization of corruption and how firms respond to corruption risk impeding the efficacy of anti-corruption programs. We investigate the relationship between the perceived level of corruption in foreign host countries and the organizational structure of subsidiary operations established by multinational corporations (MNCs). Foreign host market corruption is disaggregated into two components-private and public corruption. We employ an uncertaintybased perspective grounded in transaction cost theory to focus upon the distinct mechanisms through which private and public corruption can each be expected to impact a foreign subsidiary's organizational structure [wholly-owned subsidiary (WOS) or a joint venture (JV) with a local partner]. We expect that each type of corruption fosters a different type of uncertainty (environmental or behavioral) which predominates in shaping the MNC's choice of foreign subsidiary investment structure. Hypotheses are developed and tested with a sample of 187 entries into 19 foreign host markets. Each type of corruption was found to exert a distinct effect upon the organizational structure of foreign subsidiaries. More precisely, while heightened perceived levels of public corruption were found to motivate MNCs to invest through a JV with a local partner rather than a WOS, more pronounced private corruption precipitated the opposite outcome.

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“…Overall, the results clearly depict a complex and multi-dimensional reality in which constructs that are frequently mentioned as determinants of internationalization (experience, distance, and diversification) are indeed complex constructs made of multiple layers that need to be disentangle and analyzed separately to fully understand the impact of each component (Dow & Karunaratna, 2006;Jiménez et al, 2018;Berry, Guillén & Zhou, 2010;Pankaj, 2001). Further, the results of the various classifiers consistently point to the critical role of the resources accumulated by the MNE both in terms of employes and own experience in multiple international markets.…”

Section: Resultsmentioning

confidence: 96%

“…Thus, recent studies have shown that experience (Padmanabhan & Cho, 1999), at the company-level, and bilateral psychic distance (Clavel San Emeterio et al, 2018;Håkanson et al, 2016;Nordman & Tolstoy, 2014;Yildiz & Fey, 2016), at the country one, are particularly important for the majority of Multinational Enterprises (MNEs). Furthermore, international business scholars have called for further attention to the multi-dimensional nature of these constructs, warning against the classic and somewhat simplistic perspective taken in many studies in which a single dimension is analyzed and supposed to capture the full effect (Dow & Karunaratna, 2006;Jiménez et al, 2018;Berry, Guillén & Zhou, 2010;Pankaj, 2001;Puthusserry, Child & Rodrigues, 2014). Thus, in the early studies on international trade and investment, distance between countries (home and host) was uniquely conceptualized in terms of geography, building on the so-called "gravity model" (Tinbergen & Hekscher, 1962;Kleinert & Toubal, 2010).…”

Section: Literature Reviewmentioning

confidence: 99%

Advanced feature selection to study the internationalization strategy of enterprises

Herrero

Jiménez

Delgado

2021

PeerJ Computer Science

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Firms face an increasingly complex economic and financial environment in which the access to international networks and markets is crucial. To be successful, companies need to understand the role of internationalization determinants such as bilateral psychic distance, experience, etc. Cutting-edge feature selection methods are applied in the present paper and compared to previous results to gain deep knowledge about strategies for Foreign Direct Investment. More precisely, evolutionary feature selection, addressed from the wrapper approach, is applied with two different classifiers as the fitness function: Bagged Trees and Extreme Learning Machines. The proposed intelligent system is validated when applied to real-life data from Spanish Multinational Enterprises (MNEs). These data were extracted from databases belonging to the Spanish Ministry of Industry, Tourism, and Trade. As a result, interesting conclusions are derived about the key features driving to the internationalization of the companies under study. This is the first time that such outcomes are obtained by an intelligent system on internationalization data.

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The multi-faceted role of experience dealing with policy risk: The impact of intensity and diversity of experiences

Cited by 35 publications

References 98 publications

Political risk in private participation projects: The effects of political discretionality and corruption

Political risk in private participation projects: The effects of political discretionality and corruption

Private Sector Corruption, Public Sector Corruption and the Organizational Structure of Foreign Subsidiaries

Advanced feature selection to study the internationalization strategy of enterprises

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