Institutional distance and location choice: an experimental approach to the perception puzzle

While the literature has generated impressive insights on why emerging market multinationals enterprises (EMNEs) select certain foreign locations over others, we still lack an understanding of how the home country institutional image creates barriers to EMNEs’ foreign location choices and the mechanisms through which EMNEs overcome this effect. In this study, we investigate how the home country institutional image affects EMNEs’ foreign location choices and how EMNEs can use home country nonmarket political strategy to overcome the effect. We argue that EMNEs struggle with poor home country institutional images that are carried over in host countries and create barriers when EMNEs enter into developed or more institutionally distant markets from their home country. Specifically, we suggest that EMNEs are more likely to choose institutionally similar countries as their foreign direct investment (FDI) targets to help them offset the additional liability they carry. While nonmarket political strategy can serve as a response to such disadvantages, it will not completely nullify the home country institutional image effect. This strategy can provide proximity to nonmarket elements and help EMNEs overcome the barriers created by poor home country institutional image on foreign location choice. We test and find support for our theoretical framework using a longitudinal dataset from 2002 to 2017 of outward FDI (OFDI) by Brazilian firms.

We develop a theoretical framework to explain how hometown network among firms affects MNE entries into a foreign country. We leverage insights from the social network theory to argue that common province of home country among firms can become unique channels of knowledge, providing firms with idiosyncratic benefits in foreign places, and overcome liability of outsidership. Such connections to network centrality of province should positively influence location choice through degree of knowledge sharing. Furthermore, if a firm is state-owned and the industry where it belongs to is more competitive, the positive influence of the network centrality of province on the location choice of firms is weakened; while if a firm is from a province where the merchant culture is strongly advocated, the positive influence of the network centrality of province on the location choice of firms is strengthened. Using data from a sample of foreign subsidiaries established in the Belt and Road countries by firms from China between 2013 and 2020, the results support those predictions. The study adds to research on social network, location choice strategy, and informal institution.

The question that motivated this editorial was, “where are the IB experiments?” The short answer is that experiments are largely absent from the IB literature; and we argue that they shouldn’t be. Experimental methods offer the opportunity to significantly improve the evidence for the causal relationships in international business research in a variety of ways. In this article we highlight the value and limitations of experiments in IB research, and explain the basic tenets of experimental design and thinking with the goal of encouraging the submission of more papers with an experimental design to JIBS.

We examine how leader optimism and leader-member exchange (LMX) influence follower career optimism, self-efficacy, and perceived leader effectiveness across military and civilian contexts. Drawing on relational leader theory, the Pygmalion effect, and positive organizational behavior, we contribute to the understanding of how leadership behaviors may differentially affect followers based on the environment in which they operate. An experimental vignette methodology (EVM) was used, manipulating leader optimism and LMX across eight conditions. The sample (n = 343) included both military personnel and civilian employees from 42 U.S. states to explore contextual differences. Results from independent samples t-tests revealed significant differences between groups in key follower outcomes. Perceived leader effectiveness (PLE) was significantly higher for followers with optimistic leaders and high-quality LMX relationships across both contexts. However, the most striking contextual difference emerged in self-efficacy (SE), as civilian employees’ self-efficacy was negatively impacted by pessimistic leadership, while military personnel showed resilience to such pessimism. These findings suggest that military personnel, potentially due to their training in high-stress environments, may maintain higher self-efficacy in the face of negative leadership behaviors, unlike their civilian counterparts. This study highlights the importance of considering follower experience and background in leadership research, offering practical implications for tailoring leadership approaches in civilian and military organizations. Theoretical contributions include insights into the role of leader-follower dynamics and the interaction effect of follower experience and background on follower outcomes. Keywords: Leadership, optimism, LMX, self-efficacy, leader effectiveness, military, civilian, experimental vignette methodology

Among studies on performance outcomes of entry mode choices disagreement fueled by ambiguous research findings is apparent as regards whether the best performers are those firms that enter foreign countries with high or low entry mode degree of control. To solve this dilemma and test new hypotheses, the relationship between entry mode degree of control and firm performance is examined by meta-analyzing 133 studies (740,114 observations) covering entry mode choices from 1980 to 2010. We find that (a) overall high-control entry modes lead to higher performance, and (b) adopting high-control entry modes is particularly important for firms entering developing countries.

This study examined determinants of behavioral discrimination (i.e. social distance) against persons with Alzheimer's disease (AD). Face-to-face interviews were conducted with a total of 206 Jewish Israeli adults (mean age = 59.7) using an experimental vignette methodology, varying in the severity of the disease. Information regarding participants' preferences for social distance from a person with AD was elicited. The effects of emotional reactions, perceptions of dangerousness of the person depicted in the vignette, personal experience with the disease, and perceptions about the susceptibility of developing AD were examined. Results of the study provide partial support for an extended version of the attribution model, in that prosocial feelings were found to decrease the behavioral discrimination against the person described, whereas feelings of rejection increased the discrimination. A direct, unmediated effect of the severity of the disease on social distance was found, as well as a direct effect of familiarity with someone with the disease. Findings of this study stress the importance of increasing government and advocacy initiatives that would provide the lay public with accurate knowledge about the disease, its symptoms, and treatments. These campaigns should be aimed at clarifying misconceptions and communicating empathetic feelings towards people diagnosed with AD.

Kinship ties and employee theft perceptions in family-owned businesses

We aimed to provide causal evidence on the contradictory effects of projection‐based intelligent assistance systems (IASs) for nine motivational work characteristics (MWCs). IASs are increasingly implemented in assembly to counteract rising cognitive workload due to individualized manufacturing processes. However, how IASs enhance or restrict MWCs is largely unknown. We conducted two studies with experimental vignette methodology. In Study 1 (N1 = 169 German employees), we manipulated an assembly workplace (with IAS vs. without IAS) and tested whether findings indicating only positive effects of IASs in the support of a simple assembly process can be transferred to more complex assembly processes. In Study 2 (N2 = 176 German employees), we manipulated again the assembly workplace (with IAS vs. without IAS) and in addition the dynamic of product changes (task rotation after 1 h vs. no task rotation). Analyzing the data with SPSS 27, we found increased feedback from job and information processing and decreased work scheduling, decision‐making, and work methods autonomy when working with IAS. In Study 2, we did not find the main or interaction effects of task rotation on MWCs. Our experimental evidence suggests that working with IASs represents a double‐edged sword regarding MWCs and that the effect of task rotation is limited. Hence, our results provide vital theoretical implications for a much‐needed work design theory that delineates how new technologies shape work design and practical implications for modern assembly.

Antimicrobial resistance (AMR) is a pressing threat to public and animal health. There is evidence that antimicrobial prescribing and stewardship behaviors by veterinarians (vets) are influenced by non-clinical factors, such as psychological, social, and environmental factors. This study explored the role of context, beliefs, and values on vets’ antimicrobial prescribing decisions. UK-based practicing farm vets (n = 97) were recruited to an online study. Using an experimental vignette methodology, vets were randomly assigned across four conditions, to examine the effects of different contexts (pressure on farm economics, the farmer, or the vet-farmer relationship, compared to a control condition) on vets’ likelihood of prescribing antibiotics. Vets’ beliefs about different groups’ responsibility for causing and preventing AMR and vets’ values were also measured. Key findings were that context alone, values, and beliefs about groups’ responsibilities for causing AMR were not predictive of vets’ likelihood of prescribing antibiotics. However, vets’ beliefs about groups’ responsibilities for preventing AMR were predictive of an increased likelihood of prescribing antibiotics, when vets were exposed to the experimental condition of the vignette in which the vet–farmer relationship was under pressure. Farm vets also believed that different groups have different levels of responsibility for causing and preventing AMR. Results should be interpreted cautiously, given the smaller than planned for sample size, and the possibility for both false negatives and false positives. Further research is needed to explore how these findings could inform antimicrobial stewardship interventions in veterinary medicine.

Physical activity and exercise are essential to individuals’ psychological and physical health. However, inactivity remains a worldwide problem. In response, researchers have begun applying identity leadership to physical activity and exercise domains to consider how the development of shared group identities can encourage greater activity levels. The present research advances our theoretical and applied understanding of this approach by examining how perceptions of an exercise instructor engaging in identity leadership are associated with individuals’ perceptions of mobilisation of effort, mental well-being, and overall physical health. In Study 1, regression analyses indicated that after controlling for group identification, identity leadership accounted for a significant amount of variance in mobilisation of effort, mental well-being, and physical health. Further, all mediation models indicated significant indirect effects between identity entrepreneurship on perceptions of mental well-being and physical health through group identification and mobilisation of effort. In Study 2, we manipulated the four principles of identity leadership within an exercise setting using an experimental vignette methodology. We found that observing an exercise leader in a photo slideshow vignette engaging (vs. not) in identity leadership, produced greater perceptions of group identification, mobilisation of effort, positive affect, intention to return to class, and lower negative affect both in participants who met (MVPA-M) and did not meet (MVPA-NM), current moderate–to–vigorous physical activity guidelines. Together, our two studies extend the current literature by recognising the potential of group exercise instructors’ engagement in identity leadership to positively influence perceptions of mental well-being and physical health of individuals.

Depression and diabetes are two of the most common health conditions experienced by those from Latino backgrounds. However, community-based stigma toward these health conditions may discourage those experiencing symptoms of depression or diabetes from seeking professional assistance. To assess stigma in the Latino community toward these common health conditions, a community-based sample of 469 Latino participants in a major urban area in the [Southwestern United States — Houston, TX] completed a face-to-face survey using an experimental vignette methodology. Participants were asked to name the problem that the subject of the vignette was experiencing based on the symptoms described in the vignette. This survey also inquired about public stigma toward individuals experiencing symptoms of depression and/or diabetes. Results indicate that although the majority (60%) of the sample were able to correctly identify symptoms of depression, it was more difficult for them to identify symptoms of depression with co-occurring diabetes. Overall levels of public stigma toward those experiencing depression were moderate, and co-occurring symptoms of diabetes did not moderate stigma toward those experiencing depression. These findings indicate a need for intervention approaches within the Latino community to increase health literacy related to depression and type 2 diabetes, as well as an ongoing need to reduce stigma toward those experiencing symptoms of depression. Implications for future research, practice, and health promotion are discussed.

Social judgments of electronic multitasking in the workplace: The role of contextual and individual factors

The aim of the present study was to assess lay persons' perceptions about the competence of a person with AD and its relationship to social distance. Face-to-face interviews were conducted with a total of 206 Jewish Israeli adults (mean age = 59.7) using an experimental vignette methodology, varying in the severity of the disease. Participants were requested to rate the competence of the person described in the vignette in the areas of driving, health-decision making, financial decisions, and the performance of instrumental activities of daily living. Results of the study showed that lay persons are able to make a distinction between different types of competence, and that their perceptions about competence affect greatly their behavioral discrimination toward a person with AD. Findings of this study stress the importance of clarifying the concept of competence among the lay public, in order to reduce the stigmatization of persons with Alzheimer's disease.

Intelligent assistance systems (IAS) are designed to counteract rising cognitive demands caused by increasingly individualized manufacturing processes in assembly. How IAS affect work characteristics which are crucial for promoting work motivation of employees is yet unclear. Based on the cyber-physical systems transformation framework, the model of routine-biased technological change, and a comprehensive model of work design, we expected in- and decreases in motivational work characteristics (MWC) when working with IAS. Furthermore, we posited a buffering effect of the option of voluntary use on decreasing knowledge characteristics. Applying an online case study with experimental vignette methodology (EVM) allowed us to identify effects of the IAS on MWC before it is widely implemented. 203 German and British blue-collar workers evaluated an assembly workplace according to three experimental conditions (work without IAS, work with IAS, work with voluntary use of IAS). We identified enhanced feedback from the job and information processing in work with IAS in contrast to a traditional assembly workplace but found no restrictions (or elevations) in terms of other task (i.e., autonomy) or knowledge characteristics (i.e., job complexity, problem solving, specialization, skill variety). Thus, our results indicate that the IAS improves some motivational work characteristics of the assembly workplace, although it misses the primary goal of cognitive relief. Our study highlights the need for work design theories that specify the effect of IAS on motivational work characteristics and the potential benefit of IAS in assembly of the future.Supplementary InformationThe online version contains supplementary material available at 10.1007/s10845-023-02086-4.

PurposeThe purpose of this study is to explore how cognitive heterogeneity between managers and entrepreneurs-owners of exporting firms and firm size affect internationalization decisions in terms of resource commitment under competitive threat in the home market.Design/methodology/approachThis study applies experimental vignette methodology (EVM) to test the research hypotheses on a sample of 200 participants (100 entrepreneurs and 100 managers). Mann-Whitney U-tests were used to analyze the data.FindingsThis study finds that the condition of competitive threat in the home market increases entrepreneurs’ (but decreases managers’) willingness to decrease commitment in foreign markets (de-internationalize) and decreases their (but increases managers’) intention to increase international commitment.Research limitations/implicationsAs with all experimental studies, the vignette methodology suffers from limited external validity, although it ensures a high level of causal relationship. The relatively simple experimental scenario did not account for other potential factors and their combinations, limiting the reality of the considered situation (the effect of high competitive pressure on decision-making). However, this limited reality opens paths for future research, which could consider additional boundary conditions affecting decision-making in international business.Practical implicationsThe findings indicate the importance and nature of decision-making in internationalization, driven by cognitive, firm-level and industry factors. How a given event is perceived by a decision-maker depends on the interplay between cognitive factors and the firm’s resources. Our results reveal that organizational design and corporate governance of large diversified firms should account for the alignment of risk preferences between owners and appointed executive managers.Social implicationsThis study’s findings raise attention to owners–managers relationships in terms of hiring processes in terms of alignment of the owners’ and appointed managers’ risk attitudes. Furthermore, in the case of small firms led by an entrepreneur-owner (CEO), this study raises awareness of his/her potential internationalization choices and associated team building and overall orientation towards foreign vs. home market.Originality/valueThis study demonstrates how behavioral theory predictions contribute to the strategy tripod perspective in explaining determinants of resource commitments in foreign markets. It sheds new light on internationalization choices, by demonstrating how differences between the cognitive processes of entrepreneurs and managers and firm size affect their decisions about resource commitment in foreign vs. home market.