To examine the impact of acquisition announcements on the stock market returns of rivals of the acquiring firms, we propose a growth probability hypothesis: When an acquisition is announced, it signals the potential for future growth in the acquirer's industry to the market, resulting in...

Purpose: Does product diversification constrain or boost international expansion of business groups from emerging markets? What is the role of international orientation and group resources in moderating this relationship? Given the dominance of business groups as an organizational form in...

Liability of foreignness (LOF) is a well known concept in international business domain. At the core of LOF is the insight that firms face social and economic costs when they operate in foreign markets. Extant literature acknowledges that the ability of firms to overcome LOF in host locations...

Although trust and commitment are important for the success of any alliance activity, there is only a minimal attention given to the 'soft' side of alliance management. In this article we propose a dynamic framework for the development of trust and commitment in different alliance types. We...

We argue that the effectiveness of aligning incentives through greed and fear reductions cannot be examined independent of the relational context molded by trust and time horizon. We propose that trust and time horizon jointly give rise to apprehension and temptation, which in turn generate...

Research on internationalization of emerging market firms (EMFs) has received an increasing attention in the international management field. A central argument in a majority of these studies is that the internationalization of EMFs is different from that of firms from developed economies, and...

This study surveys recent work, published in four International Business journals, that has focused on the non-manufacturing sector which includes the 'services' sector. It documents the nature of scholarship in this area, identifies opportunities for future work, highlights some important...

We investigate the effect of product diversity and geographic diversity on the performance of SMEs. We propose an inverted U shaped relationship between product (geographic) diversification (PD/GD) and the performance of SMEs. We also propose that PD and GD positively interact with each other to...

We propose that formal and informal enforcement mechanisms have a substituting as well as complementing effect. Building on the literature on cooperation in the provision F public good, we argue that the effectiveness of punishment vs. protection as a formal mechanism hinges on the extent to...

We identify and examine the efficacy of organizational mechanisms through which diversified firms are effectively managed without loss of control. Building on the resource based view of business groups, we argue that business groups in emerging markets use these mechanisms more often and derive...