Contrasting with traditional meta-analyses that employ statistical methods to assess overall research impact, this article employs narrative synthesis for investigating various streams of international management research and identifying prevalent themes across domains (e.g. financial, operational or overall effectiveness).
Different countries vary on various dimensions of performance and this may influence how multinational corporations select locations for their foreign subsidiaries, design their business strategies and hire local talent. Such variations create variety that warrant further investigation.
Methods
International management (IM) refers to the practice of overseeing multinational corporations across countries and cultures. While its fundamental functions — production, marketing, finance and human resources– remain unchanged by global operations, international business presents unique challenges due to differences in culture, customs, laws and languages that must be understood to successfully oversee global operations. To be effective managers of global operations.
One of the hallmarks of international management (IM) lies in its ability to transfer concepts from home country contexts to foreign markets. This process involves isolating components of home country practices suitable for international applications; however, cultural differences often prevent complete knowledge transference.
Time can have a dramatic impact on IM. Nationalism plays a part, too: different cultures may place different value on time than short-term goals or relationships; employees may also hold differing attitudes about work, money and productivity that influence hiring policies – these issues must all be carefully taken into consideration when designing research to measure IM.
Findings
The findings demonstrate a need for further work on operationalizing measurement of performance in international business (IB) research, as it is imperative for studies which look into determinants of performance to use measures capable of reflecting multiple dimensions such as financial, resource-based and strategic results.
Studies that assess the effect of internationalization on overall performance must take account of both financial and operational modes of performance to fully grasp all effects (Kuivalainen et al. 2007).
Other important areas for future research include: i) unravelling performance determinants across various thematic clusters in IB literature, ii) exploring how measurement type affects IB research results, and iii) conducting more work to understand how measurement influences validity and usefulness in international management effectiveness research. The authors would like to express their thanks and appreciation for all their help with this study; particularly Academy of International Business members as reviewers who provided invaluable assistance.
Conclusions
Measuring managerial effectiveness is an integral aspect of international business. Measuring managerial effectiveness allows organizations to identify areas for improvement and reach strategic goals more easily. Metrics such as financial performance, employee engagement/satisfaction rates, leadership/team performance evaluations, communication/collaboration rates and customer service levels provide insight into a manager’s effectiveness.
For our meta-analysis to identify key factors of managerial effectiveness, we conducted a systematic literature review. Articles were coded according to domain (financial, operational or overall), mode (operational or perceptual), and dimension (uni- or multidimensional). Our analysis revealed a matrix highlighting our results of research. Organizational fit was found to be the single most critical factor for predicting managerial effectiveness, followed by strategic focus and then leadership style. We identified several limiting factors when measuring managerial effectiveness, such as sample selection bias, measurement error and confounding variables. However, these limitations can be addressed through using appropriate econometric techniques and creating an effective study design.
Recommendations
Though challenging, international management research remains important as it can assist companies to enhance performance, increase margins, and bolster competitive edge. To make it work successfully, it is necessary to establish an objective definition of international performance which matches up with firm goals.
Additionally, when measuring international performance of firms it is vital to use appropriate measurement techniques and take account of the cultural environment within which they exist. This is especially crucial when conducting qualitative analyses or cross-national investigations.
To aid this endeavor, the authors of this paper suggest creating an index of international managers’ mindset which encompasses aspects such as global competences, motivation and commitment, resource acquisition and global strategy. Furthermore, they propose conducting a test-retest to assess its reliability and validity; finally they suggest including this index into models with regression analyses performed to ascertain its impact on firm’s international business performance.