Search results

PurposeBased on a legitimacy perspective, this study aims to investigate when local sourcing, as a strategic legitimacy action, improves or impairs subsidiary performance. The authors investigate the moderating role of regulatory/normative institutional distance in the relationship between local sourcing and subsidiary performance. Particularly, departing from prior relevant research, the authors reflect on the direction of institutional distance, categorizing it as either upward or downward institutional distance.Design/methodology/approachUsing Japanese governmental data, this study performs a panel data analysis using a sample of 1,054 Japanese subsidiaries operating in 37 host countries over a 5-year observation period.FindingsThe authors reveal that downward regulatory/normative institutional distance more positively moderates the relationship between local sourcing and subsidiary performance than upward regulatory/normative distance.Originality/valueThere is little research that specifically discusses the performance effects of local sourcing while considering legitimacy concerns. Moreover, the results of analyses of the relationship between local sourcing and subsidiary performance in existing studies are inconsistent, suggesting that it is necessary to identify the boundary conditions under which local sourcing improves or impairs subsidiary performance. To fill these gaps, this study clarifies when local sourcing improves or impairs subsidiary performance based on a legitimacy perspective. The authors' finding makes a clear contribution to the literature on strategic legitimacy actions and input localization in multinational corporations.

PurposeBy drawing upon social cognitive and legitimacy perspectives, this study aims to explore the role of perceived social legitimacy as an informal institutional force that moderates the effects of female entrepreneurs' self-efficacy and entrepreneurial tenacity on venture growth.Design/methodology/approachThis study uses a data set of 308 Japanese female entrepreneurs, who are a subject of limited extant scholarly attention, to test the hypothesised relationships empirically.FindingsConsistent with the unified framework, the study was able to identify that the acquisition of social legitimacy required by female entrepreneurs serves as a crucial safety net under which entrepreneurial self-efficacy and tenacity can significantly affect venture growth.Research limitations/implicationsThe study highlights that high levels of entrepreneurial traits alone are not necessarily sufficient to guarantee women's venture growth. In doing so, this study stimulates the development of theory on the complementary role of the social legitimacy of entrepreneurship in fueling and mobilising the female entrepreneurs' cognitive resources as the key to venture growth in the Japanese context.Practical implicationsPolicymakers should be dedicated to implementing more gender-specific policies designed to continually cultivate women's cognitive attributes in tandem with the promotion of social awareness to embrace entrepreneurship as a promising career option.Originality/valueThe originality of this study lies in stimulating a debate on the underlying heterogeneity of female entrepreneurs in the performance outcomes of two entrepreneurial cognitive attributes. By integrating the concept of perceived social legitimacy, the study can respond to Miaoet al.(2017), who sought further examination of untested boundary conditions in the cognitive characteristics-venture growth equation.