Prelims
Distance in International Business: Concept, Cost and Value
ISBN: 978-1-78743-719-7, eISBN: 978-1-78743-718-0
ISSN: 1745-8862
Publication date: 23 November 2017
Citation
(2017), "Prelims", Verbeke, A., Puck, J. and Tulder, R.v. (Ed.) Distance in International Business: Concept, Cost and Value (Progress in International Business Research, Vol. 12), Emerald Publishing Limited, Leeds, pp. i-xv. https://doi.org/10.1108/S1745-886220170000012034
Publisher
:Emerald Publishing Limited
Copyright © 2017 Emerald Publishing Limited
Half Title Page
Distance in International Business: Concept, Cost and Value
Series Page
PROGRESS IN INTERNATIONAL BUSINESS RESEARCH
Series Editors: The European International Business Academy (EIBA)
Recent Volumes:
| Volume 1: | Progress in International Business Research – Edited by Gabriel R.G. Benito and Henrich R. Greve |
| Volume 2: | Foreign Direct Investment, Location and Competitiveness – Edited by John H. Dunning and Philippe Gugler |
| Volume 3: | New Perspectives in International Business Research – Edited by Maryann P. Feldman and Grazia D. Santangelo |
| Volume 4: | Research on Knowledge, Innovation and Internationalization – Edited by Jorma Larimo and Tia Vissak |
| Volume 5: | Reshaping the Boundaries of the Firm in an Era of Global Interdependence – Edited by José Pla-Barber and Joaquín Alegre |
| Volume 6: | Entrepreneurship in the Global Firm – Edited by Alain Verbeke, Ana Teresa Tavares-Lehmann and Rob van Tulder |
| Volume 7: | New Policy Challenges for European MNEs – Edited by Rob van Tulder, Alain Verbeke and Liviu Voinea |
| Volume 8: | International Business and Sustainable Development – Edited by Rob van Tulder, Alain Verbeke and Roger Strange |
| Volume 9: | Multinational Enterprises, Markets and Institutional Diversity – Edited by Alain Verbeke, Rob Van Tulder and Sarianna Lundan |
| Voume 10: | The Future of Global Organizing – Edited by Rob van Tulder, Alain Verbeke and Rian Drogendijk |
| Volume 11: | The Challenge of BRIC Multinationals – Edited by Rob van Tulder, Alain Verbeke, Jorge Carneiro and Maria Alejandra Gonzalez-Perez |
Title Page
PROGRESS IN INTERNATIONAL BUSINESS RESEARCH VOLUME 12
DISTANCE IN INTERNATIONAL BUSINESS: CONCEPT, COST AND VALUE
EDITED BY
ALAIN VERBEKE
Haskayne School of Business, University of Calgary, Alberta, Canada; and Henley Business School, University of Reading, UK; and Solvay Business School, University of Brussels (VUB), Belgium
JONAS PUCK
WU Vienna, Vienna, Austria
ROB VAN TULDER
Erasmus University Rotterdam, Rotterdam, The Netherlands
United Kingdom – North America – Japan India – Malaysia – China
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Emerald Publishing Limited
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First edition 2018
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ISBN: 978-1-78743-719-7 (Print)
ISBN: 978-1-78743-718-0 (Online)
ISBN: 978-1-78743-841-5 (Epub)
ISSN: 1745-8862 (Series)
Contents
| LIST OF CONTRIBUTORS | ix |
| ABOUT THE EDITORS | xiii |
| PROLOGUE – VOYAGES OF SELF-DISCOVERY: A REFLECTION ON FOUR DECADES OF RESEARCH ON EXPATRIATION AND CROSS-CULTURAL INTERACTIONS | |
| Rosalie L. Tung | 1 |
| CHAPTER 1 DISTANCE IN INTERNATIONAL BUSINESS STUDIES: CONCEPT, COST AND VALUE | |
| Alain Verbeke, Rob van Tulder and Jonas Puck | 17 |
| Part I | |
| THE CONCEPT OF DISTANCE | |
| CHAPTER 2 ARE WE AT A TURNING POINT FOR DISTANCE RESEARCH IN INTERNATIONAL BUSINESS STUDIES? | |
| Douglas Dow | 47 |
| CHAPTER 3 Institutional overlap as basis for International Business | |
| Robbert Maseland | 69 |
| CHAPTER 4 HOW DO MANAGERS’ DEVIANT PERCEPTIONS OF “CULTURAL DISTANCE” RELATE TO THE PERFORMANCE OF INTERNATIONAL SMEs? | |
| Goudarz Azar and Rian Drogendijk | 91 |
| CHAPTER 5 THE CONCEPT OF INSTITUTIONAL AND CULTURAL COMPATIBILITY | |
| Tilo Halaszovich | 107 |
| CHAPTER 6 THE DIRECTION OF REGULATORY INSTITUTIONAL DISTANCE AND MNE’s SUBSIDIARY OWNERSHIP STRATEGY: RE-EXAMINING THEORY AND EVIDENCE IN THE CASE OF EMERGING MARKETS | |
| Palitha Konara and Vikrant Shirodkar | 135 |
| Part II THE COST OF CULTURAL AND PSYCHIC DISTANCE | |
| CHAPTER 7 OWNERSHIP STRATEGY AND SUBSIDIARY SURVIVAL IN FOREIGN ACQUISITIONS: THE MODERATING EFFECTS OF EXPERIENCE, CULTURAL DISTANCE, AND HOST COUNTRY DEVELOPMENT | |
| Yi Wang and Jorma Larimo | 157 |
| CHAPTER 8 THE PSYCHIC DISTANCE HAZARDS IN CROSS-BORDER ACQUISITION PERFORMANCE: AN EMPIRICAL STUDY OF CROSS-BORDER ACQUISITIONS FROM 26 COUNTRIES | |
| João Carvalho Santos, Hortênsia Barandas-Karl and Francisco Vitorino Martins | 183 |
| CHAPTER 9 WHY DOES PSYCHIC DISTANCE INHIBIT INTERNATIONAL BUYER–SUPPLIER RELATIONSHIPS? | |
| Silviu H. Tierean and Guido A. J. M. Berens | 207 |
| PART III THE COST OF INSTITUTIONAL DISTANCE | |
| CHAPTER 10 INSTITUTIONAL DISTANCE AND LOCATION CHOICE: NEW EMPIRICAL EVIDENCE FROM EMERGING-MARKET MNEs | |
| Diego Quer, Enrique Claver and Laura Rienda | 225 |
| CHAPTER 11 FIRM RESOURCES, INSTITUTIONAL DISTANCE, AND THE CHOICE OF ENTRY MODE | |
| Jonas F. Puck, Markus Hödl, Igor Filatotchev and Thomas Lindner | 239 |
| CHAPTER 12 HOW THE DIRECTION OF INSTITUTIONAL DISTANCE INFLUENCES FOREIGN ENTRY MODE CHOICES: AN INFORMATION ECONOMICS PERSPECTIVE | |
| Michael J. Mueller, Guus Hendriks and Arjen H.L. Slangen | 271 |
| CHAPTER 13 EQUITY COMMITMENT IN CROSS-BORDER ACQUISITIONS: THE INFLUENCE OF DISTANCE AND Organizational RESOURCES | |
| Desislava Dikova, Ahmad Arslan and Jorma Larimo | 297 |
| PART IV THE VALUE OF DISTANCE | |
| CHAPTER 14 THE GEOGRAPHY OF INTERNATIONAL KNOWLEDGE SOURCING: LOOKING BACK AND MOVING FORWARD | |
| Alessandra Perri and Grazia D. Santangelo | 341 |
| CHAPTER 15 CSR IMPLEMENTATION IN MNEs: THE ROLE OF DISTANCE AND PRIORITIZATION OF DEMANDS | |
| Anne Jacqueminet | 363 |
| CHAPTER 16 BREAKING BAD? THE EFFECT OF FAULTLINE STRENGTH AND DISTANCE ON RELATIONSHIP CONFLICT, AND PERFORMANCE IN TEAMS. A CONDITIONAL PROCESS MODEL | |
| Ursula Pregernig | 379 |
| CHAPTER 17 WHEN DISTANCE IS GOOD: AN UPPER-ECHELONS PERSPECTIVE ON THE ROLE OF DISTANCE IN INTERNATIONALIZATION | |
| Dorota Piaskowska | 403 |
| CHAPTER 18 HOW TO INTERNATIONALIZE A TRADITIONAL PORTUGUESE-STYLE FOOD – LIABILITY OR ASSET OF PORTUGUESENESS? | |
| Susana Costa e Silva and Maria Elo | 425 |
| PART V Alternative Lenses for IB Research | |
| CHAPTER 19 LIABILITIES OF DISTANCE: GOVERNANCE COST DYNAMICS IN MNE HEADQUARTERS–SUBSIDIARY RELATIONSHIPS | |
| Sverre Tomassen | 445 |
| CHAPTER 20 REDUCING PSYCHIC DISTANCE THROUGH SPRINGBOARD SUBSIDIARIES: AN EXPLORATORY CASE STUDY | |
| Nina Magomedova, Fariza Achcaoucaou and Paloma Miravitlles | 471 |
| CHAPTER 21 CULTURAL DISTANCE, REPUTATION TRANSFERABILITY, AND CROSS-BORDER ACQUISITIONS: A CONSUMER PERSPECTIVE | |
| Michela Matarazzo, Federica De Vanna, Giulia Lanzilli and Riccardo Resciniti | 495 |
| CHAPTER 22 DOMESTIC ALLIANCE FORMATION AND THE FOREIGN DIVESTMENT DECISIONS OF FIRMS | |
| Viacheslav Iurkov and Gabriel R.G. Benito | 517 |
| INDEX | 539 |
List of Contributors
| Fariza Achcaoucaou | UB Business School, Barcelona, Spain |
| Ahmad Arslan | Business School, Edge Hill University, Ormskirk, UK |
| Gabriel R.G. Benito | BI Norwegian Business School, Oslo, Norway |
| Guido AJM Berens | Rotterdam School of Management, Erasmus University, Rotterdam, The Netherlands |
| Enrique Claver | Department of Management, University of Alicante, Alicante, Spain |
| Federica De Vanna | Universita degil Studi del Sannio, Sannio, Italy |
| Desislava Dikova | Institute for International Business, Vienna, Austria and University of Economics and Business Administration, Vienna, Austria |
| Douglas Dow | Melbourne Business School, The University of Melbourne, Melbourne, Australia |
| Maria Elo | University of Turku, Turku, Finland |
| Igor Filatotchev | Cass Business School, University of London, London, UK |
| Azar Goudarz | Brunel University, London, UK |
| Tilo Halaszovich | Lehrstuhl und Institut für Internationales Management und Governance, Bremen University, Bremen, Germany |
| Guus Hendriks | Rotterdam School of Management, Erasmus University, Rotterdam, The Netherlands |
| Markus Hödl | Institute for International Business, WU Vienna, Vienna, Austria |
| Viacheslav Iurkov | BI Norwegian Business School, Oslo, Norway |
| Anne Jacqueminet | Department of Management and Technology, Boccini University, Milan, Italy |
| Hortênsia Barandas-Karl | Faculdade de Economia da Universidade do Porto, Porto, Portugal |
| Palitha Konara | University of Plymouth, Plymouth, UK |
| Giulia Lanzilli | Universita degil Studi del Sannio, Sannio, Italy |
| Jorma Larimo | Department of Marketing, University of Vaasa, Vaasa, Finland |
| Thomas Lindner | Institute for International Business, WU Vienna, Vienna, Austria |
| Nina Magomedova | Universitat Internacional de Catalunya, Barcelona Spain |
| Francisco Vitorino Martins | Faculdade de Economia da Universidade do Porto, Porto, Portugal |
| Robbert Maseland | University of Groningen, Groningen, The Netherlands |
| Michela Matarazzo | Universita degil Studi del Sannio, Sannio, Italy |
| Paloma Miravitlles | Universitat de Barcelona, Barcelona, Spain |
| Michael Mueller | Ryerson University, Toronto, Canada |
| Alessandra Perri | Università Ca’ Foscari Venezia (Italy) |
| Dorota Piaskowska | UCD Michael Smurfit Graduate Business School, University College Dublin, Dublin, Ireland |
| Ursula Pregernig | Institute for International Business, WU Vienna, Vienna, Austria |
| Jonas Puck | Institute for International Business, WU Vienna, Vienna, Austria |
| Diego Quer | Department of Management, University of Alicante, Alicante, Spain |
| Riccardo Resciniti | Universita degil Studi del Sannio, Sannio, Italy |
| Drogendijk Rian | University of Groningen; Uppsala University, Uppsala, Sweden |
| Laura Rienda | Department of Management, University of Alicante, Alicante, Spain |
| Grazia D. Santangelo | Department of Political and Social Science, University of Catania, Catania, Italy |
| João Carvalho Santos | School of Technology and Management globADVANTAGE – Center of Research in International Business & Strategy, Polytechnic Institute of Leiria, Leiria, Portugal |
| Vikrant Shirodkar | University of Sussex, Brighton, UK |
| Susana Costa e Silva | Universidade Catolica Portuguesa, Lisbon, Portugal |
| Arjen Slangen | Rotterdam School of Management, Erasmus University, Rotterdam, The Netherlands |
| Sverre Tomassen | Department of Strategy, BI Norwegian Business School, Oslo, Norway |
| Silviu H Tierean | Dundee Business School, Abertay University, Dundee, UK |
| Rob Van Tulde | Rotterdam School of Management, Erasmus University, Rotterdam, The Netherlands |
| Rosalie Tung | Beedie School of Business, Simon Fraser University, British Columbia, Canada |
| Alain Verbke | Haskayne School of Business, University of Calgary, Alberta, Canada; and Henley Business School, University of Reading, UK; and Solvay Business School, University of Brussels (VUB), Belgium |
| Yi Wang | University of Southern Denmark, Denmark; University of Vaasa, Vaasa, Finland |
About the Editors
Dr. Alain Verbeke is a Professor of International Business Strategy and holds the McCaig Research Chair in Management at the Haskayne School of Business, University of Calgary. He is also the Research Director of the Strategy and Organization Area at the Haskayne School of Business. In 2014, Dr. Verbeke was elected as the Inaugural Alan M. Rugman Memorial Fellow at the Henley Business School, University of Reading (UK). He is the Editor-in-Chief of the Journal of International Business Studies (2017–2019).
Earlier in his career, Dr. Verbeke served as the Director of the MBA programme, Solvay Business School, University of Brussels (VUB), where he remains an adjunct professor. He has been a Visiting Professor at Dalhousie University, the University of Toronto and the Universite Catholique de Louvain, as well as an Associate Fellow of Templeton College (University of Oxford). He has also been an Academic Associate of the Centre for International Business and management, Judge Business School (University of Cambridge) and was associated with Skolkovo Institute for Emerging Market Studies (SIEMS), as an affiliated researcher. In June 2016, he was appointed as a Non-Resident Fellow with the Center for Emerging Market Studies, China Europe International Business School (CEIBS), Shanghai, China. Dr. Verbeke is an elected Fellow of the Academy of International Business, and has served as Secretary and Treasurer of the Fellows.
Dr. Verbeke has been a member of the European Science and Technology Assembly (ESTA), the highest advisory body to the European Commission on the future of European scientific and innovation policy and has served on the board of directors of various educational and scientific research institutions. He is a leading thinker on complex project evaluation, the strategic management of multinational networks, as well as the governance and restructuring of complex organizations.
In the consulting sphere, Dr. Verbeke has personally directed over 100 strategic management projects, most of these with a focus on the interface between large-scale investment programmes and governance challenges. His academic research agenda consists of revisiting, rethinking and augmenting the core paradigms in strategic management and international business, especially internalization theory, which is a joint transaction cost economics and resource-based view of the firm, focused on the governance of new resource combinations. He has particular expertise in the management of headquarters – subsidiary relationships and broader governance challenges in large multinational enterprises.
Dr. Verbeke has authored or edited more than 30 books and more than 200 refereed publications, including many articles in leading scholarly journals such as the Journal of International Business Studies, the Strategic Management Journal and the Journal of Management Studies.
Jonas Puck is Head of the Institute for International Business and Full Professor at the WU Vienna University of Economics and Business. He has held visiting positions at the University of Southern California, USA; the University of New South Wales, Australia; Tsinghua University, China; and the Bradford University School of Management, UK. He earned a Dipl.-Kfm., a PhD in International Management and a postdoctoral qualification (Habilitation) from Nuremberg University.
Jonas is an experienced teacher and consultant and has provided consulting solutions, research expertise, or executive education for numerous firms and institutions, including ABB, AT Kearney, BMW, BP, Coca Cola Hellenic, L’Oreal, OPEC, OMV, Siemens, Shell, and UNIDO. He has received awards for outstanding teaching as well as outstanding research, e.g., the CEMS Best International Business Project Award 2015, EIBA Fellows Research Award 2008, Ludwig Erhard Award 2008, Schoeller Fellow Award 2009, Festo Fellow Award 2010, and Best Paper/Best Reviewer Awards from a large number of journals and conferences.
His current research interests are at the intersection of global strategy, finance, and political science. Jonas serves on the Editorial Boards of the Journal of International Business Studies, Long Range Planning, European Management Journal, Journal of World Business and the Multinational Business Review. His research has been published in journals such as the Journal of International Business Studies, Journal of Management Studies, Journal of World Business, Long Range Planning, Management International Review, and Human Resource Management (US), among others. In addition, he is editor or author of six books and numerous book chapters.
Rob van Tulder is Full Professor of International Business-Society management at the Rotterdam School of Management/Erasmus University Rotterdam. He has been a visiting professor at a number of universities and a consultant to international organisations (such as the United Nations, the International Monetary Fund and the European ministries around the world. He is co-founder of the Department of Business-Society Management, one of the leading departments in the world studying and teaching about the contribution of business and society. He founded the SCOPE databank project, which in collaboration with UNCTAD complies the listings of the world’s largest multinational enterprises from developed and developing countries (www.scope.nl). Dr. van Tulder is founder and academic director of the Partnerships Resource Centre (www.partnerships-resourcecentre.org), which studies the cross-sector partnerships between firms, NGOs and government for sustainable development. The Resource Centre itself is organised as a partnership among business schools, multinational enterprises, governments and NGOs. Over the past 25 years, Dr. van Tulder has published in particular across disciplinary boundaries (development, international business, political science, international relations, economics and innovation) on following topics: internationalization motives, European and global business, high-tech industries, corporate social responsibility, sustainability, codes of conduct, reputation management, skills, network strategies, cross-sector partnership strategies, smaller industrial countries (welfare states) and European Community/Union policies. His latest book publications include, inter alia: Managing the Transition to a Sustainable Enterprise (Routledge/Earthscan, 2014); Doing Business in Africa (2013, NABC); Corporate Responsibilities in Turbulent Times, Beijing (2010, 2012, China Economic Publishing House (in Chinese); Skill Sheets: An Integrated Approach to Research, Study and Management (Pearson International, 2012) (www.skillsheet.com). For more information, see: www.ib-sm.org. Forthcoming books include volumes on ‘Business Models for the future’, ‘Global Business’ (second edition of the widely heralded, 2006 book ‘International Business-Society Management’) and ‘Wicked Problems’.
- Prelims
- Prologue: Voyages of Self-Discovery: A Reflection on Four Decades of Research on Expatriation and Cross-Cultural Interactions
- Distance in International Business Studies: Concept, Costs, and Value
- The Concept of Distance
- Are We at a Turning Point for Distance Research in International Business Studies?
- Institutional overlap as basis for International Business
- How Do Managers’ Deviant Perceptions of “Cultural Distance” Relate to the Performance of International SMEs?
- The Concept of Institutional and Cultural Compatibility
- The direction of regulatory institutional distance and MNE’s subsidiary ownership strategy: Re-examining theory and evidence in the case of emerging markets
- The Cost of Cultural and Psychic Distance
- Ownership Strategy and Subsidiary Survival in Foreign Acquisitions: The Moderating Effects of Experience, Cultural Distance, and Host Country Development
- The psychic distance hazards in cross-border acquisition performance: An empirical study of cross-border acquisitions from 26 countries
- Why does psychic distance inhibit international buyer-supplier relationships?
- The Cost of Institutional Distance
- Institutional Distance and Location Choice: New Empirical Evidence from Emerging-Market MNEs
- Firm Resources, Institutional Distance, and the Choice of Entry Mode
- How the Direction of Institutional Distance Influences Foreign Entry Mode Choices: An Information Economics Perspective
- Equity Commitment in Cross-Border Acquisitions: The Influence of Distance and Organizational Resources
- The Value of Distance
- The geography of international knowledge sourcing: Looking back and moving forward
- CSR Implementation in MNEs: The Role of Distance and Prioritization of Demands
- Breaking Bad? The Effect of Faultline Strength and Distance on Relationship Conflict, and Performance in teams. A Conditional Process Model
- When Distance is Good: An Upper-Echelons Perspective on the Role of Distance in Internationalization
- How to internationalize a traditional Portuguese style food – Liability or asset of Portugueseness?
- Alternative Lenses for IB Research
- Liabilities of distance: Governance cost dynamics in MNE headquarters-subsidiary relationships
- Reducing Psychic Distance Through Springboard Subsidiaries: An Exploratory Case Study
- Cultural Distance, Reputation Transferability and Cross Border Acquisitions: A Consumer Perspective
- Domestic Alliance Formation and the Foreign Divestment Decisions of Firms
- Index