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Multimarket Contact and Firm Performance: The Moderating Effect of Confucian Culture
Guiyao Tang, Ji Li, Xinran Wang
Front Bus Res Chin. 2011, 5 (1): 45-62.
https://doi.org/10.1007/s11782-011-0120-9
This paper examines the effect of Confucian cultural value on the relationship between multimarket contact and two dimensions of firm performance, i.e., firms’ innovation and profitability. It is hypothesized that firms with a high level of multimarket contact are more likely to show mutual forbearance towards their competitors, which in turn influences their innovative behavior and financial performance. Taking into account the possible moderating effects of Confucian cultural value, we also hypothesize that the effect of multimarket contact is more pronounced among firms from the Confucian culture. In other words, it is argued that firms from the Confucian culture are more likely to innovate and obtain better financial performance. Empirical tests were conducted after the hypotheses, and the findings support the arguments on multimarket contacts and mutual forbearance hypotheses. Through facilitating tacit collusion, multimarket contact does seem to help create superior economic performance.
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Entry Mode Choice of Chinese Enterprises: The Impacts of Country Risk, Cultural Distance and Their Interactions
Yuehua Xu, Songhua Hu, Xu’ang Fan
Front Bus Res Chin. 2011, 5 (1): 63-78.
https://doi.org/10.1007/s11782-011-0121-8
Recent years have witnessed a phenomenal growth in the number of Chinese enterprises “going global.” Drawing on three leading theoretical perspectives including the transaction cost theory, organizational capability theory and eclectic theory, this paper develops hypotheses to test how country risk and cultural distance are associated with entry mode choices of enterprises from China. Based on a sample of 167 Chinese companies, an empirical investigation has been conducted employing logistic regression and hierarchical regression analyses. Our results show that country risk and cultural distance have significant impact on entry mode choice. With the increase of country risk or cultural distance, businesses prefer non-ownership-based entry modes such as trade and licensing. However, entry mode choice is also noticeably influenced by the interaction between country risk and cultural distance, which is a new finding of international entry mode research. Furthermore, private enterprises are more likely to adopt high-involvement entry mode than the state-owned enterprises, and service enterprises are less likely to use high-involvement entry mode, which suggests that different approaches are used to deal with country risk and cultural distance by various types of enterprises.
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Family Supportive Culture, Work-Life Segmentation and Employee’s Organizational Attachment: The Case of High-Tech Industry in Taiwan
Ting Wu, Jingfeng Uen, Suling Wu, Tzujung Chang
Front Bus Res Chin. 2011, 5 (1): 79-95.
https://doi.org/10.1007/s11782-011-0122-7
This study examines the relationship among family supportive culture, organizational attachment, and work-life segmentation in high-tech service industry in Taiwan, China. Using survey data from 369 professionals, this study shows that family supportive culture has significant influence on organizational attachment, namely, affective commitment. Results indicate that individuals’ work-life segmentation has a significant negative effect on organizational attachment. Meanwhile, our results further apply employees’ segmentation between work and life as a moderator to investigating the impact of individual’s perceptions of family supportive culture and values on a sense of attachment toward organizations. The result illustrates that work-life segmentation does not moderate the relationship between supportive family culture and employees’ organizational attachment. Findings from this research provide insights into the influence of organizational family supportive culture and how it may further encourage employees’ organizational attachment in high-tech industry in Taiwan.
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Institutional Trading in IPOs and Post-IPOs: Value-Based vs Speculative
Dongmin Kong, Yuanyuan Shao, Jing Huang
Front Bus Res Chin. 2011, 5 (1): 144-162.
https://doi.org/10.1007/s11782-011-0125-4
Using a unique dataset from Shanghai Stock Exchange, we study institutional trading behaviors in IPOs and post-IPOs. From the perspective of value-based or speculation, we find that, (1) institutional investors are flippers on the first day of IPOs, (2) trading by institutional investors and the active institutional investors (mutual funds or brokerage) is value-based, and (3) the net buys of institutional investors can predict the long term performance of IPO-firms and shows a negative relation with a bubble in future. Since individual investors are the opponent of institutional investors, our results mean that individuals are speculators in the market. Our study suggest that institutional investors are the sophisticated ones in the market and they can process information more efficiently, whose value-based trading can enhance market price discovery and is good for market stabilization.
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8 articles
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