The paper develops an integrative framework that identifies, describes and links the firm-specific and non-firmspecific factors that co-evolve and mutually influence the changes in configurations of global business services value chains over time. We focus on the heterogeneity of configurations resulting from idiosyncratic choices regarding what processes to unbundle, what activities to locate where, and what control mechanisms to use. Expanding current models and empirical studies in International Business, we argue in particular in favour of a behavioural approach that gives more room to decision makers and the decision making process to explain changing but persistent heterogeneity in ALC configuration (Activity-Location-Control mechanisms) of business Page 44 TUESDAY AIB 2014 Conference Proceedings services global value chains.
We develop a contingency view of the contribution of different types of dynamic capabilities to firm external fitness in context of market disruption. Specifically, we argue that the dynamic capabilities most conducive to maintaining external fitness vary in function of the stage of market disruption. The effort of incumbent to develop and use dynamic capabilities should thus match the stage of market disruption they are in. More than the level of environmental dynamism extensively discussed in the literature, the contingent approach we develop elaborates on the nature of environmental dynamism that changes as markets evolve from one stage of disruption to another. Specifically, we distinguish between three stages of market disruption (emergence, acceleration, and maturity) and three main components of environmental dynamism (unpredictability, frequency, and intensity of change).
This paper proposes a conceptual framework and empirical validation to explain how a culturally differentiated application of the procedural justice theory may enhance the functioning of a multinational corporation (MNC). Using original survey data on 103 managers of international corporations who are strongly involved in headquarter-subsidiary relationships, we study how power distance and individualism-collectivism dimensions of culture moderate the relation between the constituents of procedural justice and the trust subsidiaries have in their headquarters. The analysis suggests that for managers originating from a ‘low power distance’ culture, the perception of changeability in the strategy process has much more impact than for managers stemming from a ‘high power distance’ culture. Also, towards managers with a more ‘collectivist’ background, ensuring that expectations and decisions are clear enhances trust more than for managers with a more ‘individualist’ background.
Through a longitudinal case study of a financial services company offshoring services to Poland, this paper provides insight into the barriers that prevent offshore team members to learn their tasks effectively. Findings also reveal that using expatriates and inpatriates to facilitate the learning process may in fact act as a double edge sword. While helping bridging the distance between onshore and offshore operation, over-parenting by expatriates may create detachment from the part of offshore members who are then less motivated to think independently and learn. And if inpatriation at first helps create social ties between onshore and offshore colleagues - thereby reducing the risk of onshore colleagues hoarding information - and opens careers opportunities that motivate offshore staff to learn; over time it may create frustrations by making offshoring, and in particular associated status and career path differences, visible to all.
This study shows that firms adjust the scope of activities entrusted to foreign services production units to adapt their knowledge and content protection strategy to the availability of strong legal protection or internal control mechanisms. We hypothesize and empirically confirm that, when the above mechanisms are not available, firms use the substitute protection mechanism of “fine-slicing” foreign value chain activities to exploit the complementarities that exist between tasks and reduce misappropriation hazard. We also find a positive moderating effect of firm country-specific experience and content value on the propensity to use the fine-slicing mechanism.
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