Dear friends and colleagues, 

Here are the latest articles published in Global Strategy Journal. They provided new insights on global strategy and performance. Use Ctrl+click on the titles to access the articles. 

We look forward to receiving your manuscripts. 

Torben, Ram and Alvaro, Co-editors

Global Strategy Journal, Volume 8, Issue 4, Pages: 515-664

Business models in global competition. Stephen Tallman, Yadong Luo, Peter J. Buckley

Multinational enterprises create and capture value through appropriate business models that fit both distinctive capabilities and dynamic markets. The key elements of a global business model include propositions for adding customer value and capturing a share of that value, methods to control, deploy, and utilize critical resources, and integrated processes that deliver value to target global customers. These factors explain the diversity in business models, with international competition in geographically dispersed markets further fortifying this diversity and complexity. This article demonstrates ways forward in theorizing about business models, applying these models in the global context, discussing capabilities and strategies necessary for value generation from a global business model, and relating the choice of model to the strategic context of the modern multinational firm.

Co‐parenting through subsidiaries: A model of value creation in the multinational firm. José Pla‐Barber, Cristina Villar, Anoop Madhok

We analyze a novel way to configure and manage multinational networks and propose a model of “co‐parenting,” characterized by the sharing of parenting roles and distribution of responsibilities between two units. We develop our argument around the notion of the springboard subsidiary, an operating subsidiary that assumes headquarters’ functions since it shares greater institutional closeness with both the headquarters’ country as well as with the host region. Based upon qualitative data, our inductive model revolves around three stages: establishment, consolidation, and maturity, each of which reflects distinct roles and loci of decision making among the three actors involved: headquarters, springboard subsidiary, and local subsidiary. Overall, our study sheds distinct light on when and how headquarters add value by matching parenting to context.

Does going global or staying local improve the long‐term survival and performance of IPOs? Stephen E. Christophe, Hun Lee

This empirical study investigates the impact of internationalization on the long‐term performance of U.S. IPOs (initial public offerings). We find that internationalized IPOs exhibit higher survival rates, and if an internationalized IPO is subsequently delisted, that delisting is significantly more likely to result in a positive outcome when compared to the delisting outcomes for domestic‐only IPOs. In addition, over 5‐ and 10‐year holding periods following the IPO, a portfolio of the internationalized firms exhibits significantly positive risk‐adjusted abnormal stock returns, whereas the return for a portfolio of the domestic‐only firms was lower and generally not significantly different than zero. In short, we add to the existing literature on factors that influence IPO survival and performance and show that internationalization also is an important firm characteristic.

Natural resource endowment and firm performance: The moderating role of institutional endowment. David B. Zoogah

Does institutional endowment moderate the relationship between natural resource abundance and firm performance? Drawing from institution‐based theories (IBT), we examine the interactive effects of institutional endowment (as indicated by natural resource governance) on firm performance. We use 2013 data of 492 firms from 27 African countries and multilevel techniques to find significant interactions of institutional endowment. We discuss the theoretical and practical implications of these findings for management and organization scholarship.

Performance and business relatedness as drivers of exit decision: A study of MNCs from an emerging country. Qun Tan, Carlos M. P. Sousa

This study examines the exit behavior of emerging market MNCs in the context of the parent company (PC)‐foreign affiliate (FA) relationship. Specifically, we consider business relatedness as a moderating variable and examine its impact on the relationship between an FA’s international performance and its exit decision from a foreign market. Our results, based on data collected from multiple informants in 180 Chinese firms, indicate that product relatedness and intangible resource relatedness have different moderating impacts on the FA performance‐FA exit decision relationship. Implications of these findings, along with the limitations of the study, are discussed.

When are emerging market multinationals more risk taking? Yadong Luo, Juan Bu

This study examines the endogenous conditions under which emerging market multinationals (EMNEs) are more risk taking in entering and competing abroad. We argue that strategic asset‐seeking intent, financial abundance, and inward internationalization enable EMNEs to better manage uncertainty and capture benefits, resulting in greater levels of risk‐taking behaviors in foreign entry mode and global dispersion. We offer a process framework showing that the effects of endogenous forces on risk‐taking behaviors take place via a partial mediating role of risk‐taking propensity (entrepreneurial attitude toward risk). Our analysis of Chinese MNEs provides strong evidence validating these arguments. We discuss implications of our findings, intending to invigorate scholarly interests in risk management in a new era of globalization and stimulate understanding of EMNEs' strategic behaviors.