Dear friends and colleagues,
You can find the third issue of Global Strategy Journal in 2021 at . It contains articles on methodological, conceptual, and measurement advances as well as empirical articles on key global strategy topics. We trust that you find them insightful!
If you are interested in the articles forthcoming at GSJ, they appear here
As always, we look forward to receiving your best work for consideration for publication.
Best wishes,
Gabriel R. G. Benito, Alvaro Cuervo-Cazurra, and Ram Mudambi
Co-editors of Global Strategy Journal

<>Tobit models in strategy research: Critical issues and applications<>
Mario Daniele Amore, Samuele Murtinu
Tobit models have been used to address several questions in management research. Reviewing existing practices and applications, we discuss three challenges: (a) assumptions about the nature of data, (b) apparent interchangeability between censoring and selection bias, and (c) potential violations of key assumptions in the distribution of residuals. Empirically analyzing the relationship between import competition and industry diversification, we contrast Tobit models with results from other estimators and show the conditions that make Tobit a suitable empirical approach. Finally, we offer suggestions and guidelines on how to use Tobit models to deal with censored data in strategy research.
The efficiency and market-power interpretations of the multinational enterprise: Two out of three ain't bad<>
Joseph A. Clougherty, Bradley R. Skousen
We contend that contemporary scholarship must embrace the foundational approach in global business and strategy to consider the relevance of both efficiency and market-power effects in factoring the implications of multinational activity. We empirically test the degree to which efficiency and market-power effects manifest in a comprehensive sample of 4,370 cross-border acquisitions materializing between 1986 and 2010. Specifically, we employ three different measurement approaches to distinguish efficiency enhancing from market-power increasing cross-border acquisitions. Empirical results indicate that efficiency enhancing transactions manifest in two-thirds and market-power increasing transactions manifest in one-third of our sampled activities. Accordingly, our results affirm the literature's focus on efficiency effects, yet market-power effects are sufficiently sizable to merit scholarly attention.
Dynamic capability development in multinational enterprises: Reconciling routine reconfiguration between the headquarters and subsidiaries<>
Monica Riviere, A. Erin Bass, Ulf Andersson
Starting from the premise that firms need dynamic capabilities to adapt to changing environments, we discuss how multinational enterprises (MNEs) develop dynamic capabilities from internationalization. Unlike domestic firms that develop dynamic capabilities within one organizational system, MNEs are inherently multi-level systems with the headquarters and subsidiaries. In this paper, we focus on how internationalization depth and breadth function as sources of learning and unlearning in the headquarters and subsidiaries, and how this serves as the antecedent for routine reconfiguration and dynamic capability development in the MNE. We theorize that the headquarters' and subsidiaries' brokering capabilities are critical for reconciling routine reconfiguration at the two levels so that dynamic capability development can occur, and the MNE can adapt to environmental changes.
The enduring effects of relational attributes on subsidiary evolution after mandate loss<>
Edward Gillmore, Ulf Andersson, Peter Ekman
We explore the importance of the relational attributes, trust and commitment, and their association with subsidiary development after mandate loss. We examine how greenfield and acquired subsidiaries, through their interaction with headquarters and sister subsidiaries, develop relational attributes through mutual-orientated adaption. These relational attributes are subsequently important elements in upholding and developing subsidiary activities despite the loss of a mandate. We trail this process through a longitudinal field study following the evolution of four multinational enterprise (MNE) subsidiaries. We explain how the subsidiaries relational attributes and part of their activities, associated with its mandates, remain even after the loss of a mandate. The study shows how these relational attributes mitigate and compensate for formal mandate loss.
Inheritance tax, shareholder protection, and the market value of family firms: A cross-country analysis<>
Marcelo Ortiz, Michael Carney, Patricio Duran, Matias Braun, Julio Riutort
We examine the relationship among inheritance taxes, shareholder protection, and the family firms' market value. Drawing on the family firm, corporate governance, and institutional complementarities literature, we argue that inheritance taxes act as external corporate governance mechanisms for decoupling business families' socioemotional goals. However, this depends upon minority investor protections. In strong protection countries, the incentives for family self-governance created by high inheritance taxes are offset by the loss of business family autonomy inherent in strong shareholder protection. Using a sample of 284 firms across 31 countries, we provide support for these arguments. Results suggest that inheritance and shareholder protection laws are substitutive external corporate governance mechanisms to align business family and nonfamily shareholders' interests. <>
Into the unknown: The extent and boldness of firms' international footprint<>
Gábor Békés, Gabriel R. G. Benito, Davide Castellani, Balázs Muraközy
Firms make footprints as they internationalize. Going beyond simple measures of firms' internationalization, we conceptualize and measure the extent of a firm's international footprint as the number of location-mode combinations it is active in, whereas the boldness of the footprint shows how widespread (across modes and locations) firms' international activities are, compared to other firms with similar extent. Extent describes the complexity of international activities, and boldness captures the risk-taking associated with operating in less know contexts. Consistent with a microfoundations lens on global strategy, we find that boldness correlates with managerial risk-taking attributes, while the extent of internationalization strongly correlates with capabilities conducive to managing more complex operations. These measures offer a highly suitable tool for analyzing the relationship between internationalization and performance. <>
Manager migration, learning-by-hiring, and cultural distance in international soccer<>
Thomas L. P. R. Peeters, Brian M. Mills, Enrico Pennings, Hojun Sung
We investigate the international transfer of managerial know-how by analyzing manager migration patterns in the setting of international soccer. We characterize a country's managerial know-how by estimating a stochastic frontier model, which relates the country's soccer performance to socioeconomic and climatic conditions. We find evidence of learning-by-hiring in that hiring a migrant manager hailing from a high know-how country is beneficial to the destination country's performance. Larger cultural distance between the migrant manager and destination country reduces the effectiveness of learning-by-hiring, but this effect is moderated by the migrant manager's prior international experience. The transfer of managerial know-how contributes to the overall convergence of low-performing versus high-performing soccer countries. <>


  Professor, International Business and Strategy, Northeastern University

   Co-editor, Global Strategy Journal<>

Recent publications:

   Multinationals misbehavior<>. JWB

   Implementing the United Nations’ Sustainable Development Goals in international business<>. JIBS

   State ownership and internationalization: The advantage and disadvantage of stateness<>. JWB

   Innovating for the Middle of the Pyramid in Emerging Countries<>. Cambridge University Press

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