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1 – 10 of 21Pooja Thakur-Wernz and Christian Wernz
While the phenomenon of R&D offshoring has become increasingly popular, scholars have mostly focused on R&D offshore outsourcing from the point of view of the client firms, who…
Abstract
Purpose
While the phenomenon of R&D offshoring has become increasingly popular, scholars have mostly focused on R&D offshore outsourcing from the point of view of the client firms, who are often from an advanced country. By examining vendor firms, in this paper the authors shift the focus to the second party in the dyadic relationship of R&D offshore outsourcing. Specifically, the authors compare vendor firms with nonvendor firms from the same emerging economy and industry to look at whether vendor firms from emerging economies can improve their innovation performance by learning from their clients. The authors also look at the role of depth and breadth of existing technological capabilities of the vendor firm in its ability to improve its innovation performance.
Design/methodology/approach
This study is based on firm-level data from the Indian biopharmaceutical industry between 2005 and 2016. The authors use the Heckman two-stage model to control for self-selection by firms. The authors compare the innovation performance of vendor firms with nonvendor biopharmaceutical firms (group vs nongroup analysis) as well as innovation performance across vendor firms (within group comparison).
Findings
The authors find that, compared to nonvendor firms, R&D offshore outsourcing vendor firms from emerging economies have higher innovation performance. The authors argue that this higher innovation performance among vendor firms is due to learning from their clients. Among vendor firms, the authors find that the innovation gains are contingent upon the two factors of depth and breadth of the vendor firms' technological capabilities.
Research limitations/implications
This paper makes three contributions: First, the authors augment the nascent stream of research on innovation from emerging economy firms. The authors introduce a new mechanism for emerging economy firms to learn and upgrade their capabilities. Second, the authors contribute to the literature on global value chains, by showing that vendor firms are able to learn from their clients and upgrade their capabilities. Third, by examining the innovation by vendor firms, the authors contribute to the R&D offshore outsourcing, which has largely focused on the client.
Practical implications
The study findings have important implications for both clients and vendors. For client firms, the authors provide evidence that knowledge spillovers do happen, and R&D offshore outsourcing can turn vendors into potential competitors. This research helps firms from emerging economies by showing that becoming vendors for R&D offshore outsourcing is a viable option to learn from foreign firms and improve innovation performance. Going outside geographic boundaries may be a large hurdle for these resource-strapped, emerging economy firms. Providing offshore outsourcing services for narrow slices of R&D activities may be a starting point for these firms to upgrade their capabilities.
Originality/value
This paper is among the first to quantitatively study the innovation performance of vendor firms from emerging economies. The authors also contribute to the nascent literature on innovation in emerging economy firms by showing that providing R&D offshore outsourcing services to client firms from advanced countries can improve firms' innovation performance.
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Shantala Samant, Pooja Thakur-Wernz and Donald E. Hatfield
The purpose of this paper is to study the differences in the internationalization process of firms from emerging economies and the impact of their international expansion related…
Abstract
Purpose
The purpose of this paper is to study the differences in the internationalization process of firms from emerging economies and the impact of their international expansion related choices on the nature of technological innovations developed by these firms. Specifically, the authors compare two principal perspectives on internationalization – the incremental internationalization process (slow, gradually increasing commitments using greenfield investments to similar host countries) and the springboard perspective (aggressive, rapidly increasing commitments using mergers and acquisitions to advanced host countries).
Design/methodology/approach
Building on key differences between the incremental internationalization and springboard perspectives, the authors argue that differences in the speed and mode of entry, as well as the interaction between the mode of entry and location of internationalization, will lead to differences in the types of technologies (mature versus novel) developed by emerging economy firms. The authors examine the hypotheses using panel data from 1997 to 2013 on emerging economy multinationals (EMNEs) from the Indian bio-pharmaceutical industry.
Findings
The findings suggest that firms internationalizing at higher speeds and using cross-border M&As tend to have innovations in mature technologies. The interesting findings can be explained by the challenges faced by emerging economy firms in experiential learning and the assimilation of external knowledge. In addition, the authors find that internationalization to technologically advanced countries weakens the relationship between cross-border M&As and innovation in mature technologies, suggesting that direct learning from technologically advanced environments may help alleviate the assimilation challenges of cross-border M&As.
Originality/value
The authors advance literature on EMNE internationalization by comparing the impact of their choice of internationalization approaches (incremental internationalization or springboard approach) on their innovation performance. The authors contribute to literature on EMNEs that has focused on the determinants of internationalization by identifying the learning implications of internationalization. The authors contribute to the nascent stream of literature on the level of innovation and catching up by EMNEs by performing a fine-grained analysis of the nature of technology innovation.
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The purpose of this study is to examine backsourcing, which refers to the full or partial re-internalization of a firm’s previously outsourced activity. Researchers have primarily…
Abstract
Purpose
The purpose of this study is to examine backsourcing, which refers to the full or partial re-internalization of a firm’s previously outsourced activity. Researchers have primarily focused on the drivers of backsourcing, but this paper builds on that prior research to develop a typology of backsourcing.
Design/methodology/approach
Drawing on transaction cost economics and the resource-based view (RBV), the paper posits that firms backsource because of two factors – changes in their short-run total costs and changes in their internal capabilities for re-internalization. By using the interactions between these two factors, the authors propose four types of backsourcing.
Findings
The paper presents a typology for backsourcing: profitability-backsourcing, operational-backsourcing, strategic-backsourcing and failure-backsourcing. Only one (failure-backsourcing) of these four types of backsourcing suggests failure, while the other three indicate strategic flexibility. The authors also present mini-cases to support the typology.
Research limitations/implications
The paper presents a conceptual model of backsourcing. This is a limitations of the study and further research is needed to empirically test the proposed model.
Practical implications
From a managerial perspective, this framework can be used as a decision-making tool for firms that are considering backsourcing. Given the complexity involved and the perceived stigma, decision-makers may find it difficult to backsource. Thus, a framework to avoid biases leading to decision-making errors, as well as to understand if backsourcing is a viable option, is needed.
Originality/value
This paper is one of the first to present a typology of backsourcing which can be used to understand when it is a failure of the outsourcing strategy and when it is a signal of strategic flexibility. This paper contributes to the growing stream of research on backsourcing by moving the literature beyond determinants and bringing attention to the outcomes of backsourcing. Additionally, the proposed framework can be used as a tool by decision-makers to examine whether backsourcing is favorable for their firm based on costs and capabilities for re-internalization.
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Sharad Sharma, Narain Gupta and Pooja Thakur
This empirical study explores the intricate relationships between Industry 4.0 (I4), Lean practices and sustainable operational performance (SOP) within the dynamic context of the…
Abstract
Purpose
This empirical study explores the intricate relationships between Industry 4.0 (I4), Lean practices and sustainable operational performance (SOP) within the dynamic context of the services sector. Rooted in the theoretical framework of Resource Orchestration Theory (ROT), the research investigates the nuanced interplay between these paradigms and their collective impact on firm performance.
Design/methodology/approach
The research methods included creation of a structural model, hypothesis formulation and advanced data analysis. Primary data were gathered through an online questionnaire distributed among service sector professionals. Analysis was completed using Partial Least Squares (PLS) Structural Equation Modeling (SEM) using the Smart-PLS software.
Findings
The results underscore the mediating role of Lean practices between I4 and SOP, emphasizing the imperative of harmonized integration to enhance overall firm performance. In alignment with ROT principles, the study illuminates the positive influence of Lean practices on sustainable operational outcomes.
Research limitations/implications
The study contributes to the scholarly discourse on I4, Lean and Services, emphasizing the strategic necessity of integrating I4 capabilities with Lean practices. Practical insights guide practitioners in orchestrating a balanced adoption of I4 and Lean practices for SOP. This research offers actionable insights for industry leaders seeking to cultivate SOP within their organizational contexts.
Originality/value
This study contributes to the evolving understanding of the interplay between I4, Lean practices and SOP within the services sector, offering novel insights for both academia and industry practitioners.
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Christian Wernz, Pooja Thakur Wernz and Kongkiti Phusavat
The purpose of this paper is to introduce and discuss the concepts of service convergence and service integration, illustrate them in the context of the medical tourism industry…
Abstract
Purpose
The purpose of this paper is to introduce and discuss the concepts of service convergence and service integration, illustrate them in the context of the medical tourism industry, and link them to factors that contributed to the success of a medical tourism firm.
Design/methodology/approach
The basis for the conceptual development of service convergence and service integration is an in-depth case study of Bumrungrad International Hospital (BIH) in Thailand. Based on semi-structured interviews and archival data, BIH's business model is analyzed and factors are identified that led to its success in the industry.
Findings
BIH's success can be attributed to nine key initiatives that enhanced customer focus, operational efficiency, and service quality. These initiatives supported BIH's twofold business model of product differentiation and globally competitive prices. The firm's activities led to the integration of medical and hospitality services resulting in a new, enhanced product. Competitors adopted BIH's service integration approach, which started the service convergence trend in the medical tourism industry.
Research limitations/implications
The conceptual foundations for service convergence and service integration are laid in this paper and can serve as the basis for future research.
Practical implications
Insights from BIH's business model can guide firms in medical tourism and related industries on how to innovate and how to successfully implement their service products.
Originality/value
This paper introduces the term service convergence and discusses its mechanisms. Furthermore, it identifies success factors of a leading firm in the medical tourism industry and links them to service integration.
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Weihong Chen, Xi Zhong and Hailin Lan
The impact of executive characteristics on firm internationalization has already been extensively explored. However, relatively few studies have examined the critical role of…
Abstract
Purpose
The impact of executive characteristics on firm internationalization has already been extensively explored. However, relatively few studies have examined the critical role of chief executive officer (CEO) personality attributes, and especially CEO openness, in firm internationalization. This research aims to deepen the understanding of firm internationalization, by exploring whether and when CEO openness influences firm internationalization.
Design/methodology/approach
A sample of private high-tech listed firms in China is used, with data from 2004 to 2020.
Findings
Based on upper echelons theory, this study theorizes and finds that CEO openness will positively influence firm internationalization. Further, based on the behavioral theory of the firm, this study finds that the performance aspiration gap weakens the positive effect of CEO openness on firm internationalization, but also finds that the potential slack strengthens this effect.
Originality/value
First, the study reinterprets firm internationalization strategies from the perspective of CEO openness, a personality attribute; CEO openness is an important but so far rarely discussed topic in the field of international business. Second, for the first time, problemistic search and slack search into a research framework are introduced to explore the relationship between CEO characteristics and firm internationalization. This approach can further define the boundary conditions under which CEOs can project their values, preferences and personalities into the process of formulating and implementing a firm's internationalization strategy.
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Henrique Correa da Cunha, Mohamed Amal, Dinorá Eliete Floriani and Maria Tereza Leme Fleury
This study investigates how the degree of internationalization (DOI) affects the financial performance of emerging market companies by making the distinction between export…
Abstract
Purpose
This study investigates how the degree of internationalization (DOI) affects the financial performance of emerging market companies by making the distinction between export intensity and multinationality (i.e. foreign direct investment). The authors argue that the different DOI-performance patterns in the literature relate to different internationalization approaches, which are moderated in distinct ways by formal institutions in the home country.
Design/methodology/approach
Based on data of Brazilian firms in several industries and with different internationalization patterns including 100 exporting firms and 30 multinational companies with varying degrees of multinationality over a period of five consecutive years, the authors test their hypotheses using an unbalanced panel data with 346 firm-year observations. In order to test how the quality of formal institutions moderate the DOI-performance relationships, the authors estimate the changes in the slope of the regression line by adding and subtracting one standard deviation to the Worldwide Governance Indicators (WGI) variables.
Findings
A positive and linear association between export intensity-performance (EI-P) highlights the location specific comparative advantages of exporting Brazilian firms, while the multinationality-performance (M-P) relationship points to a horizontal S-shape pattern which conforms to the theoretical assumptions of the three-stage internationalization process. Formal institutions moderate positively the EI-P relationship, but moderate negatively each of the three stages of the M-P relationship.
Research limitations/implications
The findings from this study provide critical insights that contribute to the ongoing debate on how formal institutions in the home country affect the DOI-performance relationship of emerging market companies (EMCs). However, the authors consider that it has limitations as they focused exclusively on formal institutions captured by governance institutions in the Brazilian context.
Practical implications
This study provides relevant insights to managers and policy makers. Findings reveal that strong formal institutions in the home country make it easier (cheaper) for EMCs to invest abroad, and, at the same time, increase the efficiency of exporting firms and positively influence financial performance. Moreover, results show that during downturns in their domestic markets, multinational EMCs outperform domestic firms. In that sense, while policy makers can promote the internationalization and competitiveness of EMCs by implementing more supportive formal institutions, managers should consider a proactive approach and invest abroad when conditions in the home country are favorable.
Originality/value
By making the distinction between export intensity and multinationality this study contributes to the literature on the DOI-performance of EMCs providing a more nuanced view on how formal institutions in the home country moderate the EI-P and M-P relationships in different ways.
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This chapter investigates pandemic impact in a variety of industries, including food, travel, education and pharmaceuticals, considering elements such as isolation, emotions and…
Abstract
This chapter investigates pandemic impact in a variety of industries, including food, travel, education and pharmaceuticals, considering elements such as isolation, emotions and social influences, which can lead to panic buying. The goal of this research is to ascertain how COVID-19 influences the buying decisions of customers. Additionally, the study aims to identify consumer consumption trends for a spectrum of products and services, including fast-moving consumer goods (FMCGs), entertainment, pharmaceuticals, travel and tourism. A comprehensive review of different research papers is done to conclude. The papers considered are from 2020 to 2022. Different keywords are used to search the relevant papers such as ‘pandemic’, ‘COVID-19’, ‘behaviour’, ‘impulsive’, etc. TCCM framework has been applied while reviewing the articles. During the isolation, consumer behaviour moved to panic buying and stockpiling, favouring organic basics, and encouraging e-commerce, as well as economic nationalism favouring made-in-India products. This study helps in knowing the reasons for change in consumers' behaviour for different products and services due to unforeseeable situations like COVID-19 and can find possible ways to deal with them. Business owners learn about changing consumer purchasing behaviours and how to modify products. The government can change policies to improve medical tourism and social protection.
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Pooja Goel, Aashish Garg, Anuj Sharma and Nripendra P. Rana
Several industries including banking are booming because of COVID-19. However, it is still unknown whether this growth is momentary or permanent in nature. Hence, this study aims…
Abstract
Purpose
Several industries including banking are booming because of COVID-19. However, it is still unknown whether this growth is momentary or permanent in nature. Hence, this study aims to identify the role of health-related concerns and trust as stimuli on M-payment loyalty.
Design/methodology/approach
Data were collected through Google Forms from 431 participants. Subjects were M-payment users. The hypothesized model was tested using structural equational modeling.
Findings
Results of the study indicate that perceived severity and trust act as stimuli for M-payment loyalty. Further, trust not only influences loyalty directly but also through intimacy. Additionally, no linear relationship was found between perceived usefulness and M-payment loyalty.
Originality/value
This work is an early attempt to consider health-related concerns and trust as stimuli to predict M-payment loyalty. Further, this study focused on three new constructs, namely perceived severity, perceived susceptibility and intimacy, that are underexplored in digital banking literature.
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This paper aims to propose an integrated conceptual framework depicting the antecedents of workplace deviance. This framework demonstrates three broad categories of antecedents of…
Abstract
Purpose
This paper aims to propose an integrated conceptual framework depicting the antecedents of workplace deviance. This framework demonstrates three broad categories of antecedents of workplace deviance incorporating individual, interpersonal and organizational antecedents. The identified antecedents were later ranked in the order of their impact on workplace deviance.
Design/methodology/approach
PRISMA diagram was used to conduct the systematic literature review and identify the antecedents of workplace deviance. The identified antecedents were later ranked using analytic hierarchy process (AHP). For AHP, data were collected from 20 HR managers and academicians employed in various Indian organizations and institutes.
Findings
This study identified three categories of antecedents of workplace deviance, namely, organizational, interpersonal and individual antecedents. Results of AHP indicated that organizational antecedents have the most significant role in overcoming workplace deviance (18.92 per cent), which was followed by individual (1.47 per cent) and interpersonal level antecedents (1.28 per cent).
Practical implications
This study posits that organizations should avoid unfavorable exchange with its employees by providing suitable organizational and interpersonal practices and by conducting ethical programs and workshops to discourage deviant practices. Moreover, organizations should conduct integrity tests, personality assessment tests to avoid individuals with negative personality characteristics.
Originality/value
This study adds to the literature on workplace deviance by identifying and classifying all the proposed antecedents of literature in an integrated framework. Moreover, this study used techniques of PRISMA and AHP, which represents novelty in the literature of workplace deviance.
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