Wiley: Global Strategy Journal: Table of Contents

Emerging market partners and reputational risk in the petroleum industry

Ivar Kolstad, Arne Wiig — Wed, 25 Mar 2026 06:47:28 -0700

Abstract

Research Summary

This paper analyzes how reputational risk of petroleum companies from industrialized economies is affected by partnerships with companies from emerging markets with weaker regulatory standards. Using panel data analysis with company-host country pair and year fixed effects, we find that increased collaboration with companies from corrupt countries is associated with an increase in negative attention regarding local pollution. This negative reputational effect is driven by collaboration in corrupt host countries where emerging market companies have a comparative institutional advantage. Looking into mechanisms, we find no effect of collaboration on environmental conduct or policy, which is inconsistent with the mechanisms implied by institutional theory. Our results instead indicate that partnerships provide access to institutional capabilities of emerging market partners, suggesting collaboration is transactional rather than transformative.

Managerial Summary

When an American multinational corporation starts collaborating with a Chinese multinational, what happens to the reputation of the American company? More generally, when a company from a home country with strict rules and institutions decides to collaborate with a company from a country with less strict institutions, does this carry a reputational risk? Using data on petroleum company collaboration, we find that collaboration with companies from corrupt countries has a reputational cost. Western companies incur this cost to access emerging market companies' comparative institutional advantage in corrupt host countries. Our results provide guidance on size of reputational costs from collaboration, discusses strategic use of such partnerships for new entrants, and points out potential negative implications for international policy to address corruption in oil producing countries.

March to your own beat or follow the band? A configurational analysis of rhythm in serial cross‐border acquisitions

Lulu Yan, Cong Cheng, Fuming Jiang — Wed, 25 Feb 2026 07:18:13 -0800

Abstract

Research Summary

High-tech firms often pursue serial cross-border acquisitions (CBAs) to sustain innovation and competitive advantage, thereby—intentionally or unintentionally—creating distinct patterns of temporal rhythm. While prior research highlights intra-firm rhythm dimensions (frequency, regularity, scope) or inter-firm dimensions (tempo, phase, scope entrainment), the empirical findings remain ambivalent. Drawing on fuzzy-set Qualitative Comparative Analysis (fsQCA) of 22 US high-tech serial cross-border acquirers, we identified four equifinal configurations—opportunistic experimentation, focused adaptation, cautious synchrony, and disciplined independence—linked to high performance, and three—rigid imitation, sporadic alignment, and erratic expansion—associated with low performance. Abductive theorizing from qualitative data reveals how firms manage change–stability and conformity–differentiation contradictions through the mechanisms of intensification, tilting, and suppression.

Managerial Summary

Analyzing serial CBAs, we show how rhythm dimensions combine into configurations that shape performance. Four rhythm configurations enhance outcomes, while three hinder them. Managers should avoid treating attributes such as frequency or regularity as “silver bullets” and instead orchestrate rhythms holistically across firm and industry levels. In an era of rapid technological change, geopolitical risk, and rising nationalism, effective strategies often involve combinations characterized by high frequency, irregularity, narrow scope, and selective non-entrainment, assembled either to sustain independent rhythms or to pursue change-seeking and differentiation-seeking paths. By contrast, low-performing patterns tend to over-rely on external synchrony while neglecting internal constraints. Managers should adopt a configurational mindset, tailoring acquisition rhythms to their firm's strategic context rather than imitating competitors.

Issue Information ‐ TOC

Wed, 04 Feb 2026 18:50:24 -0800

Global Strategy Journal, Volume 16, Issue 1, Page 1-2, February 2026.

Ownership discrimination and outward FDI by China's privately‐owned enterprises

Hongbin Tan, Zhaowei Chen, Bin Hao, Andrew Delios — Wed, 04 Feb 2026 18:50:24 -0800

Abstract

Research Summary

We introduce the concept of ownership discrimination to better understand the outward FDI (OFDI) of privately owned enterprises (POEs) from transition economies. In a transition economy, POEs may perceive ownership-based discrimination and thus suffer disadvantages in domestic market competition. Such perceived ownership-based discrimination could motivate POEs to engage in OFDI as a strategic response to the resulting disadvantages. We test this idea using a sample of POEs from 31 provinces in China. We find a positive relationship between perceived ownership discrimination and POEs' engagement in OFDI. This relationship is weaker for POEs with membership in political organizations that help them obtain benefits that counter the negative impact of ownership discrimination.

Managerial Summary

Firms may face institutional misalignment and, consequently, competitive disadvantages in their home country. Our study helps managers identify an important type of institutional misalignment for POEs in transition economies, which we call ownership-based discrimination. We argue that POEs can engage in OFDI as a strategic response to address the disadvantages in their domestic market caused by ownership discrimination. Based on the experiences and decisions of POEs in China, we see how such ownership-based discrimination leads to more OFDI by these firms. One action POEs can take is to develop stronger connections in the local market through membership in political organizations, which helps counter the negative impact of ownership-based discrimination.

Protecting CSR‐based reputation abroad: Intra‐firm trade as a governance mechanism

Jae Chul Jung, Yoonjeoung Heo, Unjung Whang — Wed, 04 Feb 2026 18:50:24 -0800

Abstract

Research Summary

This study investigates how multinational enterprises' (MNEs') commitment to corporate social responsibility (CSR) affects intra-firm trade in international subsidiaries. While CSR-committed MNEs need to protect their reputation, intra-firm trade can facilitate monitoring and coordinating the behavior of MNEs' international subsidiaries. Such governance functions help these MNEs mitigate challenges related to bounded rationality and reliability, ultimately reducing governance costs. Thus, we expect CSR-committed MNEs to be more likely to engage in intra-firm trade in their international subsidiaries. We further predict that the positive relationship is contingent upon host country corruption and MNE alliance experience, which may amplify or mitigate the levels of bounded rationality and reliability, respectively. We tested our theories using Korean MNE data during the 2006–2013 period and found empirical support.

Managerial Summary

While MNEs are increasingly embracing CSR, CSR's impact on MNE governance choices (particularly in international subsidiaries) is not fully understood. This study proposes that intra-firm trade serves as both formal and informal governance mechanisms which protect the CSR-built reputation of MNEs internationally. Our analysis of Korean MNE data shows that MNEs' CSR commitment increases intra-firm trade in international subsidiaries. This effect is pronounced in corrupt host countries but is attenuated in MNEs with more alliance experience. Our findings suggest that MNEs' CSR-built reputation should be protected by preventing irresponsible behavior in their international subsidiaries. Additionally, this study underscores that intra-firm trade plays a pivotal role as a governance tool for MNEs.

Imitation of location choices for rare foreign ventures: Tax‐motivated relocations of headquarters

Aleksi Eerola, Arjen H. L. Slangen, Rene Belderbos — Wed, 04 Feb 2026 18:50:24 -0800

Abstract

Research Summary

Peer firms tend to imitate each other's location choices for foreign subsidiaries. We examine whether they also engage in location choice imitation when undertaking rare, high-stakes foreign ventures in the form of tax-motivated relocations of headquarters. Although location choices for such relocations will likely be made meticulously, we propose that these choices are nevertheless subject to imitation among compatriots, and particularly among domestic rivals. Applying organizational institutionalism, we argue that by imitating these peers, relocating firms reduce the uncertainty they perceive and partly legitimize their relocation. We also predict moderating effects of relocating firms' presence in a location and of their subnational home region's cultural tightness. We find support for these ideas studying the location choices announced by US relocating firms between 1996 and 2017. Our study extends global strategy research on location choice imitation to the corporate level, revealing that such imitation even occurs among firms undergoing international transformations.

Managerial Summary

Similar companies, or “peers,” often follow each other to the same location when setting up operations abroad. We examine whether peers also imitate each other's location choices when relocating their headquarters abroad for tax reasons. While firms making this rare and bold move will likely choose a destination carefully, we argue that they nevertheless tend to imitate their compatriots' and especially their domestic rivals' location choices, so as to reduce the uncertainty they experience about countries' attractiveness and justify their relocation domestically. We also propose that a firm's tendency to imitate peers' most popular location choices depends on the firm's knowledge of foreign locations and the strength of social norms in its subnational home region. We find support for these ideas in a study of US firms that announced relocations between 1996 and 2017. Firms thus even engage in location choice imitation when undergoing international transformations.

Governing sustainability in multinational companies: Headquarter‐subunit strategic alignment and control mechanisms

Stefano Franco, Alfredo Valentino, Valentina Marano, Matteo Caroli — Wed, 04 Feb 2026 18:50:24 -0800

Abstract

Research Summary

We contribute to extant research on subunit sustainability governance by introducing the concept of sustainability-specific strategic alignment, that is, the pre-implementation degree of similarity in importance assigned by headquarters (HQ) and subunits to sustainability issues. We theorize and find that subunit-perceived divergence between HQ's and local stakeholders' priorities undermines alignment, clarifying why early attention alignment can stall sustainability diffusion even without implementation frictions. We furthermore examine the moderating effect of three HQ's control mechanisms (i.e., monitoring, direct management, and resource control), and find that direct management attenuates alignment loss even in high divergence contexts, whereas monitoring and resource control often fall short or backfire. Findings show that control mechanisms are not uniformly effective and must be tailored to subunits' agency problems and local contexts.

Managerial Summary

We argue that effective sustainability governance requires headquarters (HQ) and subunits to similarly prioritize sustainability issues. Our research shows that this sustainability-specific alignment depends, in part, on the extent to which HQs' sustainability priorities reflect those of local stakeholders. When this perceived divergence is high, alignment suffers. We examine how HQ can respond through three control mechanisms: monitoring, direct management, and resource control. We find that only direct management supports alignment under high divergence. These findings highlight that not all control tools are equally effective and that multinational companies need to carefully manage sustainability goals across borders to ensure coherent and credible sustainability efforts across their subunits' networks.

Stay or go? Exogenous shocks and small and medium‐sized enterprises' export market portfolios

Manon Meschi, Antonio Majocchi, Ulrike Mayrhofer — Wed, 07 Jan 2026 21:34:46 -0800

Abstract

Research Summary

How do small and medium-sized enterprises (SMEs) respond to multiple exogenous shocks in export markets? Drawing on real options theory (ROT), we analyze a unique data set of 2975 French SMEs over the period 2015–2020. We show that, when facing low-intensity shocks, SMEs expand the breadth of their export market portfolio, thereby enhancing switching options across regions. As shock intensity increases, they reduce the breadth while sharply increasing the depth of their export market portfolio, thereby strengthening growth options within their home region. Moreover, SMEs react more strongly to natural shocks (natural and climatic disasters, epidemics) than to human-induced shocks (armed conflicts, terrorist attacks, and industrial disasters). We advance our understanding of SME internationalization under uncertainty and contribute to embedding ROT into international business research.

Managerial Summary

This study provides insights for SME managers on how to optimize export strategies in the face of exogenous shocks. Initially, diversifying export markets can offer SMEs the flexibility to switch and grow, effectively navigating uncertainties. However, as shock exposure intensifies, concentrating efforts on fewer, safer markets can mitigate risks and ensure business stability, making it essential to prioritize export market portfolio depth over breadth. Understanding that SMEs react more strongly to natural shocks than human-induced shocks can guide managers in tailoring their export strategies based on the type of shock to enhance resilience. Integrating real options reasoning into international decision-making processes can improve strategic planning, enabling managers to better assess and respond to dynamic market conditions.

How data barriers shape international strategy

Vegard Kolbjørnsrud, Linda Rademaker — Tue, 25 Nov 2025 17:05:29 -0800

Abstract

Research Summary

Parallel with the growing volume and value of data in business operations, governments increasingly impose restrictions on the use, storage, and transfer of data across borders. In this paper, we examine how these data barriers can influence firms' global strategies. First, we propose a conceptual framework specifying five key dimensions of data barriers: the type of data, the data action they restrict, their source, motivation, and direction. Using an institutional perspective, we discuss how these features can influence the relative attractiveness of host countries, entry decisions, and important contingencies. We propose strategies that firms can pursue to respond to these constraints and develop a research agenda for further work in this area, thereby contributing to the literature on institutional strategy and global digital strategy.

Managerial Summary

Digitalization has become essential to firms' operations, yet governments increasingly impose restrictions on the unobstructed use, transfer, and storage of data. For firms that operate in different countries, adhering to these regulations requires them to understand the trade-offs involved in this process. In this paper, we explain what data barriers are and how and when these influence firms' foreign investment choices. In particular, we discuss how and when data barriers may require firms to physically locate in host countries, what the consequences are for firms' global footprint and innovation, and how they can strategically respond to mitigate the effects of data barriers.

A temporal variance decomposition of home country effects on firm performance

Feng Wan, Daniel S. Andrews, Ke Rong, Peter Williamson, Markus Fitza — Sun, 23 Nov 2025 18:42:54 -0800

Abstract

Research Summary

Understanding the sources of firm performance is central to global strategy research, with home country differences traditionally viewed as critical. However, empirical evidence on home countries' evolving influence remains limited. Using variance decomposition techniques, we analyze 43,304 firms (589,149 observations) across 102 countries from 1993 to 2022. While home country effects remain significant, their importance has consistently decreased alongside rising firm effects. Supplemental analyses reveal variation in the magnitude and pace of change across contexts. Our findings nuance assumptions about stable home country-level influences, demonstrating that country characteristics increasingly operate through firm-specific channels rather than providing uniform advantages. This evidence suggests the need to reconceptualize how global strategy research theorizes country effects, moving beyond an emphasis on direct country-level advantages toward understanding heterogeneous, firm-mediated processes.

Managerial Summary

For decades, firms have relied on their home country's advantages to compete globally. Our analysis of over 43,000 firms across 102 countries from 1993 to 2022 explores this evolving reality. Home country advantages now explain less than half the performance variation they did 30 years ago, while individual firm-specific resources and capabilities have become substantively more important. This shift accelerated following major global events. We suggest that firms can no longer count on inherited national advantages for success. Instead, they proactively develop firm-specific advantages that transcend domestic constraints. While home country characteristics remain relevant, firms now bear a greater responsibility for crafting competitive positions that are independent of their national origins.