Dear friends and colleagues,
You can find the third issue of Global Strategy Journal in 2021 at
https://onlinelibrary.wiley.com/toc/20425805/2021/11/3 . 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.
Gabriel R. G. Benito, Alvaro Cuervo-Cazurra, and Ram Mudambi
Co-editors of Global Strategy Journal
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.
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.
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.
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.
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.
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.
Innovating for the Middle of the Pyramid in Emerging Countries. Cambridge University Press