Do It Right the First Time? Exploring the First Cross-border Acquisition and Expansion Frequency of Emerging Market Multinationals
Sihong Wu, Di Fan, Christine Soo

Abstract: Do it right the first time! But, how? Current dialogue on the expansion of emerging market multinational enterprises (EMNEs) is pervasive. Nonetheless, it ought to have examined strategic attributes and the speed of implementing different strategies for their first venture. Drawing on the springboard perspective, this study tests the impact of EMNEs’ first cross-border acquisition (CBA) strategy and speed on their consequential expansion frequency and performance. We also examine the boundary conditions of comparative nationalism between countries, in view of the resurgence of nationalism in an era of deglobalization. Findings reveal that EMNEs’ rapid adoption of a focused strategy for their first CBA increases their expansion frequency, while the adoption of a conglomerate strategy decreases it. These relationships are affected in reverse by high comparative nationalism, and the performance consequences of expansion vary with firms using different strategies for their first attempt. This study enriches the EMNE literature and highlights the role of national ideologies in international business research.
Keywords: comparative nationalism, conglomerate strategy, emerging market multinationals, expansion frequency, focused strategy, springboard perspective

Exploring the Neo-Colonial Influence of Chinese FDI and Western Power on the Evolution of Labor Market Policies in a Developing Country
Julius Nyiawung, John Geary, Mandiefe Piabuo

Abstract: Despite the influx of Chinese FDI at the dawn of the 21st century and decades of neo-liberal, market-oriented economic policies in Africa, the pervasive nature of institutional voids (particularly in the labor market) has been constantly flagged as an impediment to socio-economic development in the continent. This has prompted calls for more research into the ability of independent African states to pursue viable labor market policy options, from a business system perspective. While institutional theory (specifically the notion of institutional voids) suggests the use of market-supporting and contract-enforcement structures and processes to enable the efficient functioning of the economy, it does not address the effect of strong external ‘powers’ on weak local institutions in developing countries. This study qualitatively explores how the shifting geopolitical landscape (power) from Western to Chinese sources of FDI shaped the nature and evolution of labor market institutions in Cameroon. The findings show that an entrenched parochial and crony Cameroonian institutional context was at the mercy of transnational forces playing a pivotal role, rather than coherent national socio-economic policy options, in shaping labor market institutions in the country. In an act of political complicity, the dynamics that flowed from Chinese FDI have engendered a regressive turn toward the failed nationalistic labor market policies pursued by Cameroon after independence. This article contributes to revealing the debilitating role of Chinese and Western FDI, and the ensuing dynamics, in the creation and sustenance of labor market institutions in a parochial developing economic context characterized by regulative institutional voids.
Keywords: Cameroon, colonial and neo-colonial legacies, FDI, institutional voids, labor market policies

Follow the Giver: Is Chinese MNEs’ Investment in Africa Linked to Official Aid?
Xuanjin Chen, Majid Ghorbani, Zhenzhen Xie

Abstract: Does Chinese aid to African countries trigger Chinese foreign direct investment? Bridging the literature on the impact of foreign aid on foreign direct investment (FDI) and that on state ownership, we consider FDI by China’s state-owned enterprises (SOEs) compared with that of its privately owned enterprises (POEs) and find FDI by the former is more likely to follow Chinese governmental aid to Africa. Borrowing from institutional theory, we posit that FDI by SOEs follows political imperatives while FDI by POEs pursues market motives. Using data from multiple sources on 3,760 Chinese FDI projects in Africa between 2001 and 2015, we find a correlation between SOE FDI and government aid than that of POEs; that aid has a greater impact on the probability of FDI when the policies of the host country and those of China are in sync, especially in the case of SOEs; and that in low-investment-risk countries the link between aid and investment is weakened, especially in the case of POEs. The results are robust and consistent across different measures and analyses. We contribute to the literature on the relationship between aid and FDI, as well as to that on varieties of capitalism.
Keywords: Africa, China, foreign aid, foreign direct investment, institutional forces, multinational enterprises

Isolating the Effect of Social Risk on MNEs’ CSR Reporting: A New Approach Based on China’s Belt & Road Initiative
Jing Zhao, Limin Zhu, Wenlong He, Tony W. Tong

Abstract: This article highlights CSR disclosure as a strategic response of Chinese multinational enterprises (MNEs) to the social risk they face in host countries. Deviating from prior research that aims to directly measure social risk, we offer a new approach to isolate the effect of social risk by leveraging China’s Belt & Road Initiative (BRI) as the research context, under which Chinese MNEs are largely protected from political risk in membership countries but are exposed to substantial social risk from local nongovernment stakeholders. Results from difference-in-differences analyses show that after the enactment of the BRI, Chinese MNEs investing in BRI countries significantly increases their likelihood of CSR disclosure than that of their counterparts investing in non-BRI countries. Further, such effects are more pronounced for state-owned MNEs and MNEs in natural resource industries. This research enriches the international business literature on the relationship between political risk and social risk, and that between corporate political actions and corporate social responsibility.
Keywords: Belt & Road Initiative (BRI), corporate social responsibility (CSR), foreign direct investment (FDI), multinational enterprise (MNE), social risk

Local Gambling Culture and Enterprise Bribery: A Social Norms Theory Perspective
Xi Zhong, Can Huang, Ge Ren

Abstract: Based on social norms theory, we examine the impact of local gambling culture, an unexpected result of government-permitted lotteries, on enterprise bribery. We propose that local gambling cultures can promote active enterprise involvement in bribery activities by reinforcing the speculative psychology of enterprise decision-makers. In addition, we argue that local gambling culture is less likely to lead female (returnee) chairpersons to develop speculative psychology than male (nonreturnee) chairpersons. This, in turn, allows female (returnee) chairpersons to undermine the positive impact of local gambling culture on involvement in enterprise bribery. Based on 11 years of empirical data obtained from privately listed Chinese companies (including 2,637 listed companies with 15,036 firm-year data points), we obtain empirical evidence to support most of these views. This study is the first to explore the relationship between local gambling culture and enterprise bribery, and important insights are provided for shareholders and policy-makers to better curb enterprise bribery.
Keywords: enterprise bribery, female chairperson, local gambling culture, returnee, social norms

CEO Cross-Sector Work Experience and Public–Private Partnership Formation of Private Firms in China
Anni Chen, Yue Wang, Jiayin Zhang

Abstract: As the need for collaboration across multiple organizations to deal with complex social issues such as poverty, crime, and public health grows, Public–Private Partnership (PPP) is of increasing importance. However, little is known about when and why private firms engage in such partnerships. Drawing on upper-echelon theory and the information-processing perspective, we highlight the importance of institutional knowledge and information embedded in CEO cross-sector work experience. We argue that such tacit knowledge and information enables CEOs to better identify the potential risks associated with PPPs. Consequently, CEOs with cross-sector work experience tend to be more cautious in participating in such partnerships, especially in developing economies like China, where private actors face greater information incompleteness concerning post-collaboration hazards due to the government’s selective disclosure. Moreover, we develop a multi-moderator framework in which regional marketization and political connection alter the main effect by serving as supplementary information channels for private actors. A panel dataset of Chinese private listed firms from 2013 to 2021 provides strong support for our hypotheses. This study contributes to our understanding of the micro-foundation of PPP formation and draws attention to CEOs’ prior career experiences in different organizational forms.
Keywords: CEO work experience, information processing, Public–Private Partnership (PPP), upper-echelon

It’s More About ‘We’ Than ‘I’: Employee-Supervisor Fit in Achievement Striving, Organizational Identification, and Employee Voice
Xiaotong (Janey) Zheng, Michele Williams, Xiaoyu (Christina) Wang, Jian Liang

Abstract: By integrating the theory of purposeful work behavior with the person-environment (P-E) fit literature, we employ a bilateral approach to examine how employee-supervisor congruence in purposeful work striving (i.e., achievement striving) influences employee voice behavior via an internal motivation mechanism (i.e., organizational identification). Using polynomial regressions with response surface modeling, we analyze data from 827 employees and their 197 supervisors in two studies. The results show that achievement-driven employees are more likely to speak up when employee-supervisor achievement striving is congruent, regardless of whether it is high or low. Furthermore, employee-supervisor congruence in achievement striving enhances employees’ felt oneness with the organization and organizational identification, which in turn fuels their voice behavior.