This study examines the role of the strength of the Intellectual Property (IP) institutions of 23 European countries in attracting Chinese Outward Foreign Direct Investment (OFDI) during the time period 2003–2015. Following a dynamic panel data analysis methodology, we find that the strength of IP institutions has a positive effect in attracting higher levels of OFDI from China. This is an important finding for the OFDI literature from emerging markets, since previous studies have researched this relationship from the OFDI perspective of developed countries. However, we also find a weak indication of a potential U-shaped relationship between the strength of IP institutions and Chinese OFDI. To better understand this relationship, we interact a European country's membership in the Former Eastern Bloc (FEB) with the strength of IP institutions and find a negative moderating effect. We therefore find that when investing in FEB countries, Chinese firms are attracted to weaker levels of IP institutional strength. The results of this study have important implications for future studies on the determinants of OFDI from emerging markets, as well as for European and Chinese businesses and policy-makers concerning the importance of IP institutional strength.

This study examines how cognitive categorization by host-country investors give rise to negative spillovers among host-country foreign-listed firms from the same home country when one of these foreign-listed firms discloses a financial reporting irregularity. This study further examines how attributes of host-country independent directors mitigate such negative spillover effects through signaling fulfilment of their fiduciary duties. Our results based on Chinese foreign-listed firms on the Singapore Stock Exchange from 2007–2014 reveal that host-country independent directors increase spillover effects among foreign-listed Chinese firms from financial reporting irregularities. However, such increase is attenuated when these directors signal fulfilment of their fiduciary duties through home-country, industry, or task-related experiences, and the observed mitigating effect is stronger when they possess a combination of these experiences.

This article offers a contextualised explanation of the process of institutional bridging by Delta, a British SME, in order to internationalise to China across high institutional distance. The study uncovers three novel mechanisms of ‘Cross-institutional Dissonance Mitigation’, ‘Multi-level Strategic Embedding’, and ‘Cross-institutional Consonance Retuning’ to explain how and why a failing SME with limited resources and networks was able to bridge the institutional distance and internationalise to the challenging Chinese market. This article contributes to the literature on SME internationalisation across high institutional distance by opening the ‘black box’ of SME institutional bridging, hence demonstrating the benefits of contextualised explanations to extend research into internationalisation phenomena that span multiple institutional boundaries.

From a coopetition perspective, we differentiate between a multinational enterprise's product-similar subsidiary network and product-different subsidiary network in a host country. We argue that the product-similar network will have a curvilinear (inverted U-shaped) effect on foreign subsidiary performance, whereas the product-different network will produce a monotonic (positive) effect. Moreover, we introduce host-country economic advantage and intangible resource of the subsidiary as moderators into the relationship between subsidiary network and performance. Using longitudinal panel data of foreign subsidiaries, we find evidence that when host-country economic advantage is large, and the level of intangible asset intensity is high, the inverted U-shaped effect of product-similar subsidiary network is less pronounced. Moreover, host-country economic advantage and intangible asset intensity both enhance the positive effect of product-different subsidiary network. However, the moderating effect of intangible asset intensity is opposite to our prediction.

We use community detection analysis to investigate the structure of Bengaluru's ICT cluster's inter-organizational network during the period 2015–2017. Building on the knowledge sourcing literature, we conjecture that cluster firms primarily build knowledge-seeking horizontal linkages with technologically similar companies, and that this splits the network into multiple technological communities within which firms are tightly connected, but between which linkages are scarce. We further propose that community-spanning firms which build horizontal linkages that bridge technological communities are more likely to conduct radical innovation than their peers. We finally argue that no relation exists between technological proximity and community formation in the network of vertical buyer-supplier relations. Using a voltage-based algorithm for community discovery, we draw empirical support for these predictions. We discuss the implications of our findings for Bengaluru's upgrading potential.

Our understanding of how an organisation operates is elucidated by the host country's political system. Myanmar has remained abstruse to researchers for many decades, as do most emerging markets prior to their transition from a centrally planned economy to a market economy such as China. We establish how the problematising and contextualisation of the methodologies adopted during longitudinal fieldwork in Myanmar (2008 to 2016) has influenced our research focus and question. By reflecting on our experience of conducting organisational research in a highly institutionalised environment, we have identified limitations in the prevalent research methodologies used by the extant literature. Such methodologies tend to be incompatible with the Asian context. This process of problematisation required us to remain flexible and adaptive during the process of the generation of the research questions. We adopted a context-informed theory-building process and reflect on the interplay between interviewer, interviewees, and local institutional contexts. An important insight from this process was the need to nullify the asymmetry of power between the interviewer and interviewees to obtain honest responses rather than superficial data that aimed to satisfy and please the interviewer/institutional context.

Social enterprises (SEs) primarily aim to create social value, that is, to generate benefits or reduce costs for society, while maintaining financial sustainability. Owing to their unique operating conditions and organizational characteristics, SEs face more severe resource challenges than their commercial counterparts. These challenges are exacerbated for SEs operating in emerging economies with complex social contexts. Overcoming these resource constraints and social challenges is vital for SEs to achieve their mission. Using an inductive multiple case-study approach, we identify a unique bricolage solution for achieving the dual objectives of SEs. Our findings suggest that identifying locally embedded village level entrepreneurs is a bricolage activity that social entrepreneurs leverage in the resource constrained environment of emerging economies, especially for the social enterprises that are active in the villages but were founded by social entrepreneurs who are not from these villages. This article therefore contributes to both social entrepreneurship literature as well as entrepreneurial bricolage literature and has important implications for future research and practice.

This study examines how competitive and cooperative relationships within R&D consortia influence member firms’ innovation output. We propose a U-shaped relationship between the presence of market competitors for a member firm and the firm's joint R&D output with other consortium members, and examine how the relationship is mediated by interactions with other members at the firm level and moderated by collaborative efforts at the consortium level. Using a unique sample of 320 firms from 52 R&D consortia in China, we find support for our predictions. This multi-level study extends our understanding of competition and cooperation in multi-party networks and provides insights for creating a balance between the two forces that is conducive to innovation.

Acts of financial misconduct in business affect firms in many negative ways. Therefore, why do certain misdemeanants repeatedly commit these acts? We suggest that financial misdemeanants with different social networks will perceive the costs and benefits of committing financial frauds differently, thereby affecting the likelihood of committing financial frauds in the future. To be specific, we suggest that politically connected misdemeanants are less likely to recommit financial frauds, while misdemeanants at interlock network center are more likely to recommit financial frauds. In addition, we propose that misdemeanants are less likely to recommit financial frauds when their partners in the interlock network community are punished for financial frauds. To test our theory, we collected panel data from Chinese listed firms from 2005 to 2014 and employed event history analysis (EHA).

Chinese firms are grappling with the four paradigm shifts around electric, connected, shared, and autonomous vehicles that are roiling the rest of the global auto industry. This article, which follows my earlier MOR article about the auto industry (Teece, 2018a), looks briefly at the development of capabilities in these fields by Chinese firms. It then analyzes the prospects for Chinese firms to use them to gain a stronger foothold in the global market, and for multinationals to continue to prosper in China. The paradigm shifts are creating new entry points for Chinese firms to capture value in the industry, and some potential global contenders have demonstrated solid dynamic capabilities in electric vehicles (Geely), shared vehicles (Didi Chuxing), and autonomous vehicles (Baidu). However, multinationals are also moving forward in the same fields and have strong complementary assets such as respected brands and well-honed dynamic capabilities.

We introduce incubators as an organizational form intended to facilitate entrepreneurship. The theorizing and research on incubators have been primarily anchored in market failure perspective and carry over the assumptions about a free market economy, mostly implicitly into the empirical work. This ignores the influence of the institutional context and obscures processes that may come into play in emerging economies like India. Using Scott's model (2008) of institutional context, we argue how the institutional context provides a complementary perspective that may reveal a richer picture of incubator operation in emerging economies. We illustrate this in the case of academic incubators in India.

Discursive voids in emerging markets present opportunities and challenges to debate meanings and taken-for granted assumptions. This article uncovers various strategies used by the researcher and the research participants to address the discursive void and to negotiate shared meaning about employee empowerment in Russia. In the absence of a concept for empowerment in the languages of the study, the researcher and the research participants engaged in joint sensemaking to bridge discursive voids. We contribute to the discussion of qualitative cross-language research in emerging markets by identifying the strategies used not only by the researcher, whose view has dominated previous research, but also those of the research participants. The researcher in our study addressed the discursive void by taking on the dual role of researcher-translator, engaging in contextual approach to translation, consulting external interpreters, and using iteration and flexibility in the course of the research process. Our research participants resorted to proverbs to address the discursive void, make sense of empowerment, and render it locally meaningful. Proverbs are a valuable methodological tool for sensemaking and theorising about context-specific phenomena in IB research.

Firms that are located in a cluster may confront cooperation and competition at the same time. The advantage of cooperation and the disadvantage of competition on a firm may need to examine the firm survival in a cluster as the cluster evolves. Employing the population ecology viewpoint, this study tries to address coopetition issues in a cluster to examine the impact of coopetition on firm survival rate. Analyzing yacht industry data in Taiwan from 1957–2010, this study indicates that the founding rate of yacht firms will be positively related with the cluster size. Additionally, during the competition period, those firms located inside the cluster may have a higher dissolution rate than those firms outside the cluster, indicating the disadvantage of competition on the firm. Finally, this study finds that those firms located inside the cluster will be more likely to become larger and have capabilities to survive. The results in this study provide insights on addressing coopetition issues in a cluster.

The Indian pharmaceutical industry has experienced rapid growth, becoming the world's largest provider of generic drugs, based on product and process innovation. The industry has undergone dynamic changes in recent decades, operating in a rapidly evolving environment affected by domestic and global policies; a key example of the latter is the TRIPS agreement. Taking an intellectual property perspective, we describe how changes in the innovation ecosystem have affected companies’ strategies related to international activity and accessing knowledge from both internal and external knowledge sources, during the transitional- and post-TRIPS periods (1995–2004 and 2005–2014, respectively). Combining intellectual property arguments with contextual aspects of the innovation ecosystem, we conjecture that, in the post-TRIPS period, externally-sourced knowledge will be more important than internally-sourced knowledge, for Indian pharmaceutical firms’ international business activity.