My specializations include international business and quantitative methods, with a special focus on technology spillovers, strategic international business issues, multinational location choice and entry, exit and survival (firm/industry dynamics). In the area of corporate governance I am interested in networks of firms and boards of directors and its relation to performance and diversity.
The main purpose of this research is to understand the determinants of global integration strateg... more The main purpose of this research is to understand the determinants of global integration strategies of Chinese Multinational Enterprises (MNEs). In this article, we identify four expansion strategies for Chinese MNEs, that is, horizontal, vertical, lateral and risk diversification and we investigate a series of location and firm-level factors that determine the adoption of each strategy. We present empirical evidence based on data from the 2008 Spring edition of the Lexis Nexis Corporate Affiliates Directory. Our results indicate that Chinese MNEs expand internationally through a grid of strategic choices which is diversified geographically and industrially.
This article addresses the role of formal institutions and informal networks on corporate governa... more This article addresses the role of formal institutions and informal networks on corporate governance practices. The existing corporate governance literature has mostly examined the formal institutions, such as the effect of legal systems. Our contribution is to consider the effect of informal "small world" characteristics of ownership and board networks. We use the case of Scandinavia (Denmark, Norway and Sweden) to examine these effects. Our empirical results reveal large differences in formal board and ownership structures between the Scandinavian countries, but strong similarities in terms of law enforcement, political stability, government effectiveness, rule of law, control of corruption as well as voice and accountability. We find that all three countries can be characterized as "small worlds" in which trust, information diffusion and reputation mechanisms are active governance mechanisms.
Supplemental material, sj-pdf-1-wes-10.1177_09500170211018579 for From Presence to Influence: Gen... more Supplemental material, sj-pdf-1-wes-10.1177_09500170211018579 for From Presence to Influence: Gender, Nationality and Network Centrality of Corporate Directors by Florence Villesèche and Evis Sinani in Work, Employment and Society
Foreign Direct Investment (FDI) is expected to generate technology spillovers to indigenous firms... more Foreign Direct Investment (FDI) is expected to generate technology spillovers to indigenous firms in transition economies. This paper disentangles the positive effect of technology transfer on the productivity of domestic firms from that of competition. We use a production function framework to estimate the impact of technology transfer from FDI on the growth of sales of domestic firms in Estonia during the period from 1994 to 1999. Employing panel data techniques, we control for industry and firm specific effects and use a Heckman two-stage procedure to control for sample self-selection bias. We find that the magnitude of the spillover effect depends on the characteristics of incoming FDI and, of the recipient local firm. More specifically, spillovers vary with the measure of foreign presence used, and are is influenced by the recipient firm’s size, its ownership structure and its trade orientation.
By using an empirical approach seldom used in this area for transition economies (namely, stochas... more By using an empirical approach seldom used in this area for transition economies (namely, stochastic frontiers) we investigate the determinants and dynamics of firm efficiency. This approach allows us to simultaneously estimate the parameters of both the efficiency and the production function. We also use most unusual data--a representative sample of Estonian firms for the period 1993-1999 – and are able to address problems that plague much previous work, such as the endogeneity of ownership. Consequently our findings are more reliable and efficient than most previous estimates. Our main findings are that: (i) compared to employee and state ownership, foreign ownership increases technical efficiency; (ii) firm size and higher labor quality enhance efficiency, while soft budget constraints adversely affect efficiency; (iv) Estonian firms operate under constants returns to scale; (v) the percentage of firms operating at high levels of efficiency increases over time. As such our findin...
Using a sample of 603 subsidiaries Chinese Multinational Corporations (MNCs) and 174 subsidiaries... more Using a sample of 603 subsidiaries Chinese Multinational Corporations (MNCs) and 174 subsidiaries Indian MNCs, we explore the regional and industrial pattern of their direct investment strategies. Our analysis reveals several important facts. First, most of outward foeign direct investment (FDI) is directed in finance and real estate and services. Second, by far the majority of investment projects are carried out in the home region of Asia-Pacific. Third, outward FDI is highly concentrated geographically and the average investment project is relatively small. Fourth, establishment of subsidiaries is the most preferred way of carrying out FDI. Finally, firm-specific and location-specific characteristics are important drivers of FDI strategies. Last but not least, a large proportion of Chinese and Indian investments is conducted mainly within those countries themselves, revealing a strong multidomestic character.
CHAPTER SIX Micro-Evidence on Investment Patterns and Motivations of Chinese Multinationals Bersa... more CHAPTER SIX Micro-Evidence on Investment Patterns and Motivations of Chinese Multinationals Bersant Hobdari, Marina Papanastassiou and Evis Sinani Over the last two decades China has made significant progress in at-tracting and promoting foreign direct investment (FDI). By ...
This paper investigates the importance of sunk costs, firm characteristics and spillovers from ne... more This paper investigates the importance of sunk costs, firm characteristics and spillovers from nearby exporters on a firm’s export participation decision. The empirical analysis involves the estimation of a non-structural, discrete choice, dynamic model with firm heterogeneity. The results suggest that both sunk costs and observable firm characteristics are important determinants of export market participation. In addition, previous history matters, in that, if a firm has been exporting the last period or the period before that it significantly increases the likelihood of the firm exporting in the current period. This conclusion is robust across all specifications. Also, larger firms with high capital intensity and foreign owned are more likely be exporters. Finally, while there is no clear evidence on export spillovers, if a firm operates in an exportoriented industry increases the likelihood of exporting.
The enduring lack of diversity in the corporate elite continues to attract attention from scholar... more The enduring lack of diversity in the corporate elite continues to attract attention from scholars and practitioners. However, the issue of representation or ‘body count’ – in particular for women – tends to dominate the discussion and overshadows social-relational dimensions. Adopting a network perspective, this article investigates how gender and nationality interact with human and social capital (i.e. director capital), explaining why particular directors hold more influential positions in the corporate elite. Findings from Swiss data show that some specific aspects of human and social capital matter more than others for being an influential director and that, ceteris paribus, Swiss citizens benefit most from both sources of capital. The discussion engages with the implications of our findings on current approaches intended to increase the numbers of appointments of ‘diverse’ directors, and how these are expected to change the corporate elite and the related job market in the lon...
Switzerland is known by most for its banks, watches, mountains, and chocolates. However, the smal... more Switzerland is known by most for its banks, watches, mountains, and chocolates. However, the small Alpine country is also one where the traditional view of the family is still prevalent and emphasizes the role of the husband as the breadwinner, and where diversity is not generally acknowledged as a business issue. Although gender diversity is increasing only slowly at higher hierarchical levels in Switzerland, there are signs of change, nevertheless. For instance, in December 2015, a draft for non-binding quotas was adopted for both boards of directors and top-management teams, with a recommended minority gender representation of 30 percent and 20 percent respectively (Swissinfo.ch 2015). However, those guidelines have yet to be drafted as legislation, and repeated attempts to introduce binding quotas have all failed. This chapter will give the reader an in-depth insight into the situation in Switzerland to shed light on how the current circumstances came about and the developments ...
By using an empirical approach seldom used in this area for transition economies (namely, stochas... more By using an empirical approach seldom used in this area for transition economies (namely, stochastic frontiers) we investigate the determinants and dynamics of firm efficiency. This approach allows us to simultaneously estimate the parameters of both the efficiency and the production function. We also use most unusual data --a representative sample of Estonian firms for the period 1993-1999 – and are able to address problems that plague much previous work, such as the endogeneity of ownership. Consequently our findings are more reliable and efficient than most previous estimates. Our main findings are that: (i) compared to employee and state ownership, foreign ownership increases technical efficiency; (ii) firm size and higher labor quality enhance efficiency, while soft budget constraints adversely affect efficiency; (iv) Estonian firms operate under constants returns to scale; (v) the percentage of firms operating at high levels of efficiency increases over time. As such our findi...
This paper contributes to the literature on corporate governance by providing evidence on the imp... more This paper contributes to the literature on corporate governance by providing evidence on the importance of owner identity on technology transfer from foreign firms. To this end we use a panel of Estonian firms for 1993-2002 and employ panel data techniques to avoid endogeneity and sample selection bias. We find that across different ownership groups only domestic outsiders benefit from spillovers of technology transfer. However, a large technology gap with foreign firms motivates all local firms to use their existing technology more efficiently and as such successfully cope with the increased open market competition. Furthermore, because of rent seeking and/or asset striping behavior insider owned firms, face financial constraints, and as such cannot invest in new technology as much as domestic outsider owned firms.
The main purpose of this research is to understand the determinants of global integration strateg... more The main purpose of this research is to understand the determinants of global integration strategies of Chinese Multinational Enterprises (MNEs). In this article, we identify four expansion strategies for Chinese MNEs, that is, horizontal, vertical, lateral and risk diversification and we investigate a series of location and firm-level factors that determine the adoption of each strategy. We present empirical evidence based on data from the 2008 Spring edition of the Lexis Nexis Corporate Affiliates Directory. Our results indicate that Chinese MNEs expand internationally through a grid of strategic choices which is diversified geographically and industrially.
This article addresses the role of formal institutions and informal networks on corporate governa... more This article addresses the role of formal institutions and informal networks on corporate governance practices. The existing corporate governance literature has mostly examined the formal institutions, such as the effect of legal systems. Our contribution is to consider the effect of informal "small world" characteristics of ownership and board networks. We use the case of Scandinavia (Denmark, Norway and Sweden) to examine these effects. Our empirical results reveal large differences in formal board and ownership structures between the Scandinavian countries, but strong similarities in terms of law enforcement, political stability, government effectiveness, rule of law, control of corruption as well as voice and accountability. We find that all three countries can be characterized as "small worlds" in which trust, information diffusion and reputation mechanisms are active governance mechanisms.
Supplemental material, sj-pdf-1-wes-10.1177_09500170211018579 for From Presence to Influence: Gen... more Supplemental material, sj-pdf-1-wes-10.1177_09500170211018579 for From Presence to Influence: Gender, Nationality and Network Centrality of Corporate Directors by Florence Villesèche and Evis Sinani in Work, Employment and Society
Foreign Direct Investment (FDI) is expected to generate technology spillovers to indigenous firms... more Foreign Direct Investment (FDI) is expected to generate technology spillovers to indigenous firms in transition economies. This paper disentangles the positive effect of technology transfer on the productivity of domestic firms from that of competition. We use a production function framework to estimate the impact of technology transfer from FDI on the growth of sales of domestic firms in Estonia during the period from 1994 to 1999. Employing panel data techniques, we control for industry and firm specific effects and use a Heckman two-stage procedure to control for sample self-selection bias. We find that the magnitude of the spillover effect depends on the characteristics of incoming FDI and, of the recipient local firm. More specifically, spillovers vary with the measure of foreign presence used, and are is influenced by the recipient firm’s size, its ownership structure and its trade orientation.
By using an empirical approach seldom used in this area for transition economies (namely, stochas... more By using an empirical approach seldom used in this area for transition economies (namely, stochastic frontiers) we investigate the determinants and dynamics of firm efficiency. This approach allows us to simultaneously estimate the parameters of both the efficiency and the production function. We also use most unusual data--a representative sample of Estonian firms for the period 1993-1999 – and are able to address problems that plague much previous work, such as the endogeneity of ownership. Consequently our findings are more reliable and efficient than most previous estimates. Our main findings are that: (i) compared to employee and state ownership, foreign ownership increases technical efficiency; (ii) firm size and higher labor quality enhance efficiency, while soft budget constraints adversely affect efficiency; (iv) Estonian firms operate under constants returns to scale; (v) the percentage of firms operating at high levels of efficiency increases over time. As such our findin...
Using a sample of 603 subsidiaries Chinese Multinational Corporations (MNCs) and 174 subsidiaries... more Using a sample of 603 subsidiaries Chinese Multinational Corporations (MNCs) and 174 subsidiaries Indian MNCs, we explore the regional and industrial pattern of their direct investment strategies. Our analysis reveals several important facts. First, most of outward foeign direct investment (FDI) is directed in finance and real estate and services. Second, by far the majority of investment projects are carried out in the home region of Asia-Pacific. Third, outward FDI is highly concentrated geographically and the average investment project is relatively small. Fourth, establishment of subsidiaries is the most preferred way of carrying out FDI. Finally, firm-specific and location-specific characteristics are important drivers of FDI strategies. Last but not least, a large proportion of Chinese and Indian investments is conducted mainly within those countries themselves, revealing a strong multidomestic character.
CHAPTER SIX Micro-Evidence on Investment Patterns and Motivations of Chinese Multinationals Bersa... more CHAPTER SIX Micro-Evidence on Investment Patterns and Motivations of Chinese Multinationals Bersant Hobdari, Marina Papanastassiou and Evis Sinani Over the last two decades China has made significant progress in at-tracting and promoting foreign direct investment (FDI). By ...
This paper investigates the importance of sunk costs, firm characteristics and spillovers from ne... more This paper investigates the importance of sunk costs, firm characteristics and spillovers from nearby exporters on a firm’s export participation decision. The empirical analysis involves the estimation of a non-structural, discrete choice, dynamic model with firm heterogeneity. The results suggest that both sunk costs and observable firm characteristics are important determinants of export market participation. In addition, previous history matters, in that, if a firm has been exporting the last period or the period before that it significantly increases the likelihood of the firm exporting in the current period. This conclusion is robust across all specifications. Also, larger firms with high capital intensity and foreign owned are more likely be exporters. Finally, while there is no clear evidence on export spillovers, if a firm operates in an exportoriented industry increases the likelihood of exporting.
The enduring lack of diversity in the corporate elite continues to attract attention from scholar... more The enduring lack of diversity in the corporate elite continues to attract attention from scholars and practitioners. However, the issue of representation or ‘body count’ – in particular for women – tends to dominate the discussion and overshadows social-relational dimensions. Adopting a network perspective, this article investigates how gender and nationality interact with human and social capital (i.e. director capital), explaining why particular directors hold more influential positions in the corporate elite. Findings from Swiss data show that some specific aspects of human and social capital matter more than others for being an influential director and that, ceteris paribus, Swiss citizens benefit most from both sources of capital. The discussion engages with the implications of our findings on current approaches intended to increase the numbers of appointments of ‘diverse’ directors, and how these are expected to change the corporate elite and the related job market in the lon...
Switzerland is known by most for its banks, watches, mountains, and chocolates. However, the smal... more Switzerland is known by most for its banks, watches, mountains, and chocolates. However, the small Alpine country is also one where the traditional view of the family is still prevalent and emphasizes the role of the husband as the breadwinner, and where diversity is not generally acknowledged as a business issue. Although gender diversity is increasing only slowly at higher hierarchical levels in Switzerland, there are signs of change, nevertheless. For instance, in December 2015, a draft for non-binding quotas was adopted for both boards of directors and top-management teams, with a recommended minority gender representation of 30 percent and 20 percent respectively (Swissinfo.ch 2015). However, those guidelines have yet to be drafted as legislation, and repeated attempts to introduce binding quotas have all failed. This chapter will give the reader an in-depth insight into the situation in Switzerland to shed light on how the current circumstances came about and the developments ...
By using an empirical approach seldom used in this area for transition economies (namely, stochas... more By using an empirical approach seldom used in this area for transition economies (namely, stochastic frontiers) we investigate the determinants and dynamics of firm efficiency. This approach allows us to simultaneously estimate the parameters of both the efficiency and the production function. We also use most unusual data --a representative sample of Estonian firms for the period 1993-1999 – and are able to address problems that plague much previous work, such as the endogeneity of ownership. Consequently our findings are more reliable and efficient than most previous estimates. Our main findings are that: (i) compared to employee and state ownership, foreign ownership increases technical efficiency; (ii) firm size and higher labor quality enhance efficiency, while soft budget constraints adversely affect efficiency; (iv) Estonian firms operate under constants returns to scale; (v) the percentage of firms operating at high levels of efficiency increases over time. As such our findi...
This paper contributes to the literature on corporate governance by providing evidence on the imp... more This paper contributes to the literature on corporate governance by providing evidence on the importance of owner identity on technology transfer from foreign firms. To this end we use a panel of Estonian firms for 1993-2002 and employ panel data techniques to avoid endogeneity and sample selection bias. We find that across different ownership groups only domestic outsiders benefit from spillovers of technology transfer. However, a large technology gap with foreign firms motivates all local firms to use their existing technology more efficiently and as such successfully cope with the increased open market competition. Furthermore, because of rent seeking and/or asset striping behavior insider owned firms, face financial constraints, and as such cannot invest in new technology as much as domestic outsider owned firms.
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