Klaus Meyer

• He, X.; Lin, C.; Meyer, K. E., (Forthcoming), "How state and market logics influence firm strategy from within and outside? Evidence from Chinese financial intermediary firms", Asia Pacific Journal of Management.
  Abstract: We study how state and market logics, which operate both internal and external to the firm, jointly influence firm strategy. In the context of the Chinese financial intermediary industry, we argue that the level of state ownership in a firm has an inverted U-shaped relationship with the firm’s financial portfolio diversification. This is because firms prioritize financial investment options that serve the dominant logic. As a result, their financial portfolios are more diversified when the multiple logics are balanced than when either logic dominates. This relationship is attenuated by the prevalence of market logic in the regional institutional environment and amplified by industry regulation aimed at correcting market failure. We test these arguments using panel data of Chinese trust companies during a period of de-regulation and re-regulation and find empirical support for the moderated curvilinear effect of state ownership. Our findings demonstrate the relevance of the institutional logics to analyzing firms in contemporary China and highlight how institutional logics at multiple levels jointly shape corporate strategy.

  Link(s) to publication:

  https://link.springer.com/article/10.1007/s10490-020-09739-5

  http://dx.doi.org/10.1007/s10490-020-09739-5

• Tan, D.; Meyer, K. E., 2021, "Context-bridging and Context-embedded Experience: Growth Drivers of Emerging Economy Business Groups", Asia Pacific Journal of Management, June 38: 401 - 434.
  Abstract: This study examines emerging economy business groups’ growth directions during institutional change. Building on Penrose’s Theory of Growth of the Firm, we explore managerial resources as foundations for growth. Specifically, we argue that their growth directions are critically shaped by the nature of managerial experience of business groups. Experience that is context-embedded supports growth within the existing strategic paradigm, whereas context-bridging experience enables international growth. We test hypotheses derived from this theoretical argument for business groups in Taiwan, and find empirical support for our arguments.

  Link(s) to publication:

  http://dx.doi.org/10.1007/s10490-019-09658-0

• Schotter, A.; Wood, G.; Meyer, K. E., 2021, "Organizational and comparative institutionalism in international HRM: Toward an integrative research agenda", Human Resource Management, February 60(1).
  Abstract: Over the past two decades, a growing body of research on human resource management (HRM) has analyzed the relationship between international HRM and institutions. This work has primarily been informed by two leading streams of theory—organizational institutionalism and comparative institutionalism. However, these two dominant streams have seen much juxtaposition, but little logical integration. Moreover, scholars have paid little attention to the dynamics of contextualization (more specifically, institutional development and evolution), which limits the relevance of extant research. In this article, we review the extant literatures and their intellectual origins and develop an integrative research agenda that emphasizes the multilevel nature of HRM and evolution under external institutional change.

  Link(s) to publication:

  https://onlinelibrary.wiley.com/doi/10.1002/hrm.22053

  http://dx.doi.org/10.1002/hrm.22053

• Côté, C.; Estrin, S.; Meyer, K. E.; Shapiro, D., 2020, "COVID-19 and the Dynamics of Distance in International Business", AIB Insights, December 20(3).
  Abstract: Distance is a central concept in the teaching of international business (IB). However, most textbooks treat distance as static or slowly changing. We argue that distance is inherently a dynamic construct, as highlighted by the impact of COVID-19 on international business activities. Using the popular CAGE framework as a baseline, we illustrate the implications of distance being dynamic by introducing likely effects of COVID-19 on distance, and by discussing in depth barriers to the movement of people as an important aspect of distance. We conclude with implications for the application of distance in corporate decision making and international business teaching.

  Link(s) to publication:

  https://insights.aib.world/article/18080-covid-19-and-the-dynamics-of-distance-in-international-business

  http://dx.doi.org/10.46697/001c.18080

• Meyer, K. E.; Rungsithong, R., 2020, "Trust and knowledge sharing in an emerging economy: International buyer-supplier relationships in Thailand", Industrial Marketing Management, July 88: 112 - 124.
  Abstract: How does trust facilitate knowledge sharing between business partners in an emerging market? We advance the relational view of knowledge sharing by theoretically developing and empirically testing moderators of the impact of trust on knowledge sharing between MNE subsidiaries and their local suppliers. Distinguishing inter-organizational and inter-personal trust, we argue that the positive relationship between inter-organizational trust and knowledge sharing is moderated by characteristics of the transaction, while the positive impact of inter-personal trust is moderated by the organizational context in which the relationship is embedded. We test our hypotheses on a sample of 156 buyer-supplier relationships between MNE subsidiaries and local suppliers in Thai manufacturing, and find empirical support for our theoretical arguments. We conclude with managerial implications on how to facilitate knowledge sharing in an emerging market.

  Link(s) to publication:

  https://www.sciencedirect.com/science/article/abs/pii/S0019850119301919

  http://dx.doi.org/10.1016/j.indmarman.2020.04.026

• Yang, W.; Meyer, K. E., 2020, "How do local and foreign firms compete? Competitive actions in an emerging economy", International Business Review, June 29(3).
  Abstract: When foreign and local firms compete, they face competitors acting quite differently from themselves. Specifically, their ability to engage in timely and frequent actions is influenced by, respectively, the Liability of Foreignness (LoF) and the Liability of Localness (LoL). We explore how the trade-off between LoF and LoL influences the aggressiveness of competitive actions firms take in emerging markets. Specifically, we argue that LoF results in weaker government ties that inhibit the aggressiveness of competitive actions of multinational subsidiaries, while LoL results in weaker technological capabilities that inhibit competitive aggressiveness of domestic firms. We apply structural equation modelling on Chinese survey data to test hypotheses derived from these arguments and find empirical support. Our results shed new light on competitive dynamics in an emerging economy.

  Link(s) to publication:

  http://dx.doi.org/10.1016/j.ibusrev.2020.101689

• Sarabi, A.; Froese, F.; Chng, D.; Meyer, K. E., 2020, "Entrepreneurial leadership and MNE subsidiary performance: The moderating role of subsidiary context", International Business Review, June 29(3).
  Abstract: Managers of international subsidiaries, especially subsidiary CEOs, operate at critical interfaces within multinational enterprises (MNEs) and hold strategic responsibility for the operations in their country. Yet, their impact on subsidiary performance has received scant research attention. Building on the subsidiary entrepreneurship and strategic leadership literatures, we develop a model of how subsidiary CEOs’ entrepreneurial leadership affects subsidiary performance, and how this relationship is moderated by the subsidiary context that determines managerial discretion. We combine survey data of 291 international subsidiaries in South Korea with archival data to test our hypotheses. Our results show that subsidiary CEOs’ entrepreneurial leadership enhances subsidiary performance and that this relationship is strengthened by managerial discretion. Our study highlights the pivotal role of subsidiary CEOs within MNEs and contributes to a microfoundational understanding of international subsidiary management.

  Link(s) to publication:

  http://dx.doi.org/10.1016/j.ibusrev.2020.101672

• Meyer, K. E.; Li, C.; Schotter, A., 2020, "Managing the MNE subsidiary: Advancing a multi-level and dynamic research agenda", JOURNAL OF INTERNATIONAL BUSINESS STUDIES, June 51(4): 538 - 576.
  Abstract: Multinational enterprise (MNE) subsidiaries abroad are important organizations in their own right. They typically hold some of the MNE's most critical resources, and operate at the forefront of complex international environments. In this review, we identify and organize theoretical and empirical research on subsidiary management based on over 600 articles in leading academic journals. We develop a conceptual framework that integrates complementary streams of theoretical and empirical research with the subsidiary as its focal unit of analysis. In particular, we review six lines of research on subsidiary scope, practices, knowledge management, engagement with local market and nonmarket actors, performance, and individuals within subsidiaries. We highlight theoretical perspectives that have contributed to, and been advanced by, research on MNE subsidiaries. Based on the review, we explore future research agendas, linking the contemporary research themes with two main thrusts. First, subsidiary management is a multi-level phenomenon that would benefit from more microfoundational research. Second, subsidiary management operates at key interfaces of technology paradigm shifts, and of disruptions in the political and institutional environment. Research into the dynamics of subsidiary management would, thus, enhance our understanding of international business in a volatile global economy.

  Link(s) to publication:

  http://dx.doi.org/10.1057/s41267-020-00318-w

• Liu, Y.; Meyer, K. E., 2020, "Boundary spanners, HRM practices, and reverse knowledge transfer: The case of Chinese cross-border acquisitions", Journal of World Business, February 55(2).
  Abstract: This paper investigates the role of boundary spanners in reverse knowledge transfer in EMNEs’ cross-border acquisitions. Applying a micro-foundational approach and building on boundary spanning as theoretical perspective, we conducted case studies of acquisitions by Chinese companies in Germany and the UK. We find reverse knowledge transfer is a collective endeavour that relies on both the ability and motivation of individual boundary spanners as well as team-based international collaborations. We propose a conceptual framework of reverse knowledge transfer with two mechanisms—enabling and materializing. Their successful implementation depends not only on the personal characteristics of boundary spanners, but on supportive HRM practices.

  Link(s) to publication:

  http://dx.doi.org/10.1016/j.jwb.2018.07.007

• Yang, W.; Meyer, K. E., 2019, "How does ownership influence business growth? A competitive dynamics perspective", International Business Review, October 28(5).
  Abstract: Firms engage in competitive actions to gain market share and hence to grow their revenues. However, not all firms are equally able to use competitive actions to drive growth. We argue that the ability to translate competitive actions to revenue growth depends on the ownership of the firm. Drawing on principal-agent and principal-principal perspectives, we argue that: (1) private owners (both foreign and local) are better able to employ aggressive actions to grow their business than state owners; (2) firms with multiple owners (especially international joint ventures) are less able to implement actions that drive business growth than full ownership. We find support for these arguments in empirical tests on survey-based data of 106 firms in China. Results show that in an emerging market the principal-principal perspective can better explain governance and competition than the principal-agent perspective.

  Link(s) to publication:

  https://www.sciencedirect.com/science/article/pii/S0969593117300690

  http://dx.doi.org/10.1016/j.ibusrev.2018.02.009

• Yang, W.; Meyer, K. E., 2019, "Alliance proactiveness and firm performance in an emerging economy", Industrial Marketing Management, October 82: 226 - 237.
  Abstract: Alliance proactiveness is a key contributor to the performance of firms engaging in strategic alliances in industrial markets. As a foundation of alliance management capability, alliance proactiveness enables firms to react faster to emergent opportunities and gain early mover advantages. We examine the relevance of this construct and its internal and external contingencies. Specifically, we argue that the impact of alliance proactiveness is enhanced by complementary technological and leadership capabilities, as well as market growth opportunities. We test hypotheses derived from these arguments using dual response survey data of firms in China and find empirical support.

  Link(s) to publication:

  http://dx.doi.org/10.1016/j.indmarman.2019.01.010

• Rosenbusch, N.; Gusenbauer, M.; Hatak, I.; Fink, M.; Meyer, K. E., 2019, "Innovation offshoring, institutional context and innovation performance: A meta analysis", Journal of Management Studies, January 56(1): 203 - 233.
  Abstract: Innovation offshoring (IO) has become a widespread management practice. Yet, evidence on the performance implications is inconsistent, and scattered across disciplines and contexts. We argue that the benefits firms can derive from IO depend on the institutional environment at home. Drawing on recent work on institutional theory in international business, we explore institutions that facilitate reverse knowledge transfer and/or institutional arbitrage with respect to innovation‐related activities. The results of our meta‐analysis that synthesizes evidence from 48 samples show that IO is related positively to innovation performance. As predicted, this relationship is moderated by differences in the institutional environments across countries. Specifically, when national innovation systems are weak at home, IO appears to enable institutional arbitrage strategy whereas Confucian cultures enable more effective reverse knowledge transfer. However, contrary to our expectations, the beneficial effects of IO appear to have diminished over time.

  Link(s) to publication:

  http://dx.doi.org/10.1111/joms.12407

• Cui, L.; Hu, H.; Li, S.; Meyer, K. E., 2018, "Corporate Political Connections in Global Strategy", Global Strategy Journal, August 8(3): 379 - 398.
  Abstract: The role of corporate political connections (CPC) in global strategy has been examined in a variety of institutional contexts and analyzed from different theoretical perspectives. This literature along with the papers in this special issue, demonstrate the importance of contextualization in understanding the motivations, processes, and outcomes of firms developing and utilizing CPC in global strategy. We argue that context specific aspects of CPC, such as the political system in which the firm is operating, need to be incorporated more systematically to advance theory development globally. Future studies on CPC can advance this agenda through cross‐country comparative research, deeper engagement with political science literature, linking CPC with other non‐market strategies, and configurational analysis of the multidimensional context of CPC.

  Link(s) to publication:

  https://onlinelibrary.wiley.com/doi/abs/10.1002/gsj.1325

  http://dx.doi.org/10.1002/gsj.1325

• Li, J.; Meyer, K. E.; Zhang, H.; Ding, Y., 2018, "Diplomatic and corporate networks: Bridges to foreign locations", Journal of International Business Studies, August 49(6): 659 - 683.
  Abstract: © 2017 Academy of International Business Firms and governments operate in broad networks in which the home government and its diplomatic service are a critical node – or a “referral point” – between firms and potential partners in foreign locations. Thus diplomatic relations between countries matter for the choice of foreign investment location. Using a network perspective, we argue that the extent to which good diplomatic relations induce firms to invest in friendly host countries depends on their political connections to home governments. Those with stronger ties to home governments can better access and leverage intergovernmental diplomatic connections, thus benefiting potentially from enhanced access to information, reduced political risks, and increased legitimacy. Such ability of politically connected firms is more useful where weak institutional impartiality in the host country inhibits neutral treatment of foreign investors. Empirically, using overseas investment location decisions by Chinese firms, we find that the types of home government ties (i.e., whether they are organizational or personal and whether those relationships are with central or local goverments) and the impartiality of host institutions are both important contingencies affecting firms’ utilization of diplomatic relations. We discuss the implications of our study to research on network theory, political ties, and internationalization of emerging market firms.

  Link(s) to publication:

  https://link.springer.com/article/10.1057/s41267-017-0098-4

  http://dx.doi.org/10.1057/s41267-017-0098-4

• Estrin, S.; Meyer, K. E.; Pelletier, A., 2018, "Emerging economy MNEs: How does home country munificence matter?", Journal of World Business, June 53(4): 514 - 528.
  Abstract: Multinational Enterprises (MNEs) from emerging economies (EEs) are establishing operations in advanced economies (AEs), apparently departing from traditional models of internationalization. We explore an under-explored difference between EE MNE and their AE counterparts concerning their country of origin: EEs have less munificent business environments. This leads EE MNEs to make different location choices than AE MNEs when entering AEs, specifically because they are more deterred by barriers to entry. We therefore predict EE MNEs to be relatively more deterred by distance and weak intellectual property protection and relatively more attracted by diaspora of migrants and by markets. Our empirical results are consistent with these predictions.

  Link(s) to publication:

  https://www.sciencedirect.com/science/article/pii/S1090951618301743

  http://dx.doi.org/10.1016/j.jwb.2018.02.004

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