Why do firms go abroad when technology makes it possible to business at a distance? We argue that the cost of distance differentially affects investment motivations across industries. find support for this hypothesis in study U.S. inward and outward FDI. Knowledge seeking efficiency are two most important explanations international activity information-intensive industries, reinforcing value intangible resources sphere. In less market search low-cost export platforms dominant An implication...

Many governments seek to impose gender equality on boards, but the consequences of doing so are not clear and could harm firms economies. We shed light this topic by conceptualizing relationships as firm‐ board‐specific embedded within specific contexts. The theory is developed with reference emerging markets, tested M alaysian firms. find that female directors create value for some decrease it others. impact varies across different performance indicators, firms' ownership, boards'...

Abstract This study was inspired by the observation that foreign financial service firms operating in City of London do not suffer liability foreignness to extent suggested theory. To examine reasons for this departure from theory, advances a theoretical framework distinguishes between three types advantages together account competitive performance MNEs relative indigenous firms. Empirical analyses sample 296 show particular context major sources are firm‐specific and multinationality, where...

Notwithstanding their remarkable recent growth, surprisingly little research has hitherto been conducted on the evolving geography of professional and business services in Britain. This paper analyses results a detailed survey 300 small medium‐sized management engineering consultancies, investigating forces underpinning both striking clustering such firms central London growth decentralized locations East Anglia South West England. Particular attention is paid to notion clustering, role...

ABSTRACT This paper examines the impact of industrial and geographical diversification activities developing country firms on their performance, draws attention to unique attributes these circumstances under which take place. The empirical analysis is based data from 345 firms. findings suggest significant positive association between geographic considerable variation relationships across regions strategies.

We suggest that the proximity of a country to other countries is factor affects its choice as multinational enterprise (MNE) location. introduce concept country's global distribution knowledge, markets, and resources, frame this function both geographic distance worldwide spatial these factors. test our location model on data set comprising 138,050 investments undertaken by U.S. MNEs worldwide. Our findings show rest world has positive impact choosing Proximity world's knowledge markets are...

I seek to make sense of the variety performance differentials between foreign and local firms observed in international competition examine circumstances that explain these varying outcomes. Toward this end, develop a theoretical framework allows for situations which costs advantages have relative are stronger, weaker, or nonexisting. In framework, measured firms, balance them determines performance. Tests hypotheses on samples financial services London show affiliates experience...

Combining perspectives from institutional activism and signaling theory literatures, we suggest that an activist sovereign wealth fund (SWF) can serve as intermediary signaler, providing cues about host countries’ environment to internationalizing firms. By publicizing its investments engaging in activism, a SWF signal the quality of countries firms, thus allowing them overcome well-known “lemons problem” international decision-making. We examine impact SWF’s signals on firms’ ownership...

Abstract Location is commonly perceived as a source of generic resources to all firms in given place and, therefore, not something that leads firm‐specific advantage. We challenge this view and suggest multinational enterprises (MNEs) differ their location capability, which enables them create locational capital from resources. capability expressed an MNE's ‘sense place’—its recognition the potential actions it takes value potential. outline engagement, transformation appropriation processes...

Existing measures of productivity were designed to measure in industries which both input and output are tangible standardised quantities. They inadequate for measurement professional services, where intangible specialised factors production use. This paper seeks address the difficulties associated with service firms propose a more adequate these industries. is tested on sample Swedish management consulting firms, assessed relation several performance indicators firms. The findings...

Abstract How does a firm's political embeddedness affect its internationalization strategy? Extant research shows conflicting effects, treating as unitary construct. We contend that interpersonal relational (IPE) is distinct from the structure of embedded ties and focus on IPE's consequences for firm internationalization. IPE refers to dyadic, relationships trust, loyalty reciprocity between individuals. theorize increases susceptibility dependence asymmetry, which power actor increases....