APPENDIX
Paired-Sample T-Tests and Correlations between Survey and Amadeus Data
Paired Samples Statistics
87,4769 99 22,11375 1,59178 87,1039 99 20,05312 1,58742 Percent Ownership in the subsidiary Amadeusown Pair 1
Mean N Std. Deviation Std. Error Mean
Paired Samples Test
,37306 4,69771 ,33815 -,29391 1,04002 1,103 98 ,271 Percent Ownership in the
subsidiary - Amadeusow Pair 1
Mean Std. Deviation Std. Error Mean Lower Upper 95% Confidence Interval
of the Difference Paired Differences
t df Sig. (2-tailed)
Paired Samples Statistics
8646,62
84
24728,354
1766,311
8587,1837
84
24552,76288
1753,76900
Globempl
Amadeusglobempl
Pair 1
Mean
N
Std. Deviation Std. Error Mean
Paired Samples Test
59,43878 910,07477 65,00534 -68,76502 187,64257 ,914 83 ,362
Globempl -Amadeusglobempl Pair 1
Mean Std. Deviation Std. Error Mean Lower Upper 95% Confidence Interval
of the Difference Paired Differences
t df Sig. (2-tailed)
Paired Samples Correlations
79 ,90 ,017
Percent Ownership in the subsidiary &
Amadeusown Pair 1
N Correlation Sig.
Paired Samples Correlations
79 ,91 ,012
Globempl & Amadeusglobempl Pair 1
Factor Analysis on Survey Variables
Correlation Matrix 1,000 -,100 1,000 ,070 ,465 1,000 ,024 ,233 -,034 1,000 -,063 ,110 -,030 ,020 1,000 ,043 -,074 ,091 -,045 -,058 1,000 ,069 ,182 ,040 ,037 -,033 -,251 1,000 Technological intensit % sales spent on R&D 1=v.low intensity; 5=v high intensity International experien in years CEE experience in ye Worldwide employees time of investment Target market concentration; 1=few competitors; 5=many competitors Ownership restrictions 1=yes; 0=no Technological intensity/ % sales spent on R&D; 1=v. low intensity; 5=v.high intensity Target market concentration; 1=few competitors; 5=many competitors Worldwide employees at time of investment International experience in years CEE experience in years Ownership restrictions; 1=yes; 0=no Percent Ownership in the subsidiary Correlation Percent Ownership in the subsidiaryKMO and Bartlett's Test
,424
91,144 21 ,000 Kaiser-Meyer-Olkin Measure of Sampling
Adequacy. Approx. Chi-Square df Sig. Bartlett's Test of Sphericity Communalities 1,000 ,504 1,000 ,800 1,000 ,755 1,000 ,172 1,000 ,435 1,000 ,645 1,000 ,647 Technological intensity/ % sales spent on R&D; 1=v.low intensity; 5=v. high intensity
International experience in years
CEE experience in years Worldwide employees at time of investment Target market concentration; 1=few competitors; 5=many competitors Ownership restrictions; 1=yes; 0=no Percent Ownership in the subsidiary Initial Extraction
Total Variance Explained 1,581 22,581 22,581 1,581 22,581 22,581 1,251 17,872 40,453 1,251 17,872 40,453 1,127 16,102 56,555 1,127 16,102 56,555 1,000 14,283 70,838 ,932 13,320 84,158 ,702 10,025 94,183 ,407 5,817 100,000 Component 1 2 3 4 5 6 7
Total % of Variance Cumulative % Total % of Variance Cumulative % Initial Eigenvalues Extraction Sums of Squared Loadings
Extraction Method: Principal Component Analysis.
7 6 5 4 3 2 1 Component Number 1,50 1,25 1,00 0,75 0,50 Eigenv alue Scree Plot Component Matrixa ,703 ,869 ,655 ,545 ,360 -,628 ,766 ,432 -,541 ,410 Technological intensity/
% sales spent on R&D; 1=v.low intensity; 5=v. high intensity
International experience in years
CEE experience in years Worldwide employees at time of investment Target market concentration; 1=few competitors; 5=many competitors Ownership restrictions; 1=yes; 0=no Percent Ownership in the subsidiary 1 2 3 Component
Extraction Method: Principal Component Analysis. 3 components extracted.
Factor Analysis International Experience
Correlation Matrix 1,000 ,611 ,611 1,000 International experience in years International experience in years Int.experience in number countries Correlation Int.experience in number countriesKMO and Bartlett's Test
,500 89,041 1 ,000 Kaiser-Meyer-Olkin Measure of Sampling
Adequacy. Approx. Chi-Square df Sig. Bartlett's Test of Sphericity Communalities 1,000 ,806 1,000 ,806 International experience in years Int.experience in number countries Initial Extraction
Extraction Method: Principal Component Analysis.
Total Variance Explained
1,611 80,552 80,552 1,611 80,552 80,552
,389 19,448 100,000
Component 1
2
Total % of Variance Cumulative % Total % of Variance Cumulative % Initial Eigenvalues Extraction Sums of Squared Loadings
Extraction Method: Principal Component Analysis.
Component Matrixa ,898 ,898 Int.experience in number countries International experience in years 1 Compone nt
Extraction Method: Principal Component Analysis. 1 components extracted.
a.
Factor Analysis Regional Experience
Correlation Matrix
1,000 ,543
,543 1,000
CEE experience in years CEE experience in number of countries Correlation CEE experience in years CEE experience in number of countries
KMO and Bartlett's Test
,500 71,840 1 ,000 Kaiser-Meyer-Olkin Measure of Sampling
Adequacy. Approx. Chi-Square df Sig. Bartlett's Test of Sphericity Communalities 1,000 ,772 1,000 ,772
CEE experience in years CEE experience in number of countries
Initial Extraction
Total Variance Explained 1,543 77,158 77,158 1,543 77,158 77,158 ,457 22,842 100,000 Component 1 2
Total % of Variance Cumulative % Total % of Variance Cumulative % Initial Eigenvalues Extraction Sums of Squared Loadings
Extraction Method: Principal Component Analysis.
2 1 Component Number 1,50 1,25 1,00 0,75 0,50 E igenvalue Scree Plot Component Matrix a ,878 ,878 CEE experience in number of countries CEE experience in years
1 Compone
nt
Extraction Method: Principal Component Analysis. 1 components extracted.
a.
Cronbach Alpha Coefficient for Institutional Development Scale Based on World Bank Data
Case Processing Summary
200 95,7 9 4,3 209 100,0 Valid Excludeda Total Cases N %
Reliability Statistics ,957 6 Cronbach's Alpha N of Items Item Statistics ,8197 ,32906 200 ,5285 ,28046 200 ,3204 ,51049 200 ,5363 ,42219 200 ,3303 ,37318 200 ,2733 ,40456 200
World Bank Voice and Accountability; -2.5 to + 2.5
World Bank Political Stability / No Voilence; -2.5 to + 2.5
World Bank Government Effectiveness; -2.5 to + 2.5
World Bank Regulatory Quality; -2.5 to + 2.5 World bank Rule of Law; -2.5 to + 2.5
World Bank Control of Corruption; -2.5 to + 2.5 Mean Std. Deviation N Item-Total Statistics 1,9887 3,397 ,895 ,948 2,2798 3,647 ,808 ,959 2,4880 2,740 ,941 ,945 2,2720 3,188 ,812 ,956 2,4781 3,164 ,970 ,938 2,5351 3,157 ,883 ,947
World Bank Voice and Accountability; -2.5 to + 2.5
World Bank Political Stability / No Voilence; -2.5 to + 2.5
World Bank Government Effectiveness; -2.5 to + 2.5
World Bank Regulatory Quality; -2.5 to + 2.5 World bank Rule of Law; -2.5 to + 2.5
World Bank Control of Corruption; -2.5 to + 2.5 Scale Mean if Item Deleted Scale Variance if Item Deleted Corrected Item-Total Correlation Cronbach's Alpha if Item Deleted Scale Statistics 2,8083 4,591 2,14259 6
Table 1: Means, Standard Deviations and Correlations among All Variables
VARIABLES`` MEAN S.D. 1 2 3 4 5 6 7 8 9 Dependent variable 1. Ownership mode .72 .453 1 Control variables 2. Cultural difference 2.01 1.54 -.007 1 3. Market size 74.86 59.97 .107 -.127 1 4. Firm size 8656.83 24725.80 .085 .136 .085 1 5. Market concentration 2.93 1.30 .009 -.127 .193** .02 1 6. Ownership restrictions .29 .453 -.217** .109 -.013 -.045 -.058 1 Independent variables 7. Technical intensity 2.08 1.06 .085 .00 .074 .024 -.063 .043 1 8. International experience 24.19 26.02 .137 .071 -.016 .233** 0.11 -.074 -.1 1 9. Regional experience 11.67 14.81 -.054 .045 -.066 -.034 -.03 .091 .07 .465** 1 10. Institutional development 2.81 2.14 -.019 -.365** .304** -.012 .068 -.137 -.04 .006 -.006 `` Ownership mode (1= wholly-owned, and 0= joint venture); Ownership restriction (1= present, and 0= without).** Correlation is significant at the .01 level (two-tailed). * Correlation is significant at the .05 level (two-tailed).
One-Way ANOVA: Compare Means of Percentage Ownership between CEE Host Countries
Descriptives Percent Ownership in the subsidiary
8 90,6250 18,60060 6,57630 75,0745 106,1755 50,00 100,00 39 83,4615 23,37773 3,74343 75,8834 91,0397 21,00 100,00 6 72,5000 30,12474 12,29837 40,8860 104,1140 25,00 100,00 19 91,5263 17,54476 4,02504 83,0700 99,9826 50,00 100,00 3 100,0000 ,00000 ,00000 100,0000 100,0000 100,00 100,00 7 90,1429 26,07955 9,85714 66,0233 114,2624 31,00 100,00 62 89,5952 22,71089 2,88429 83,8277 95,3626 13,00 100,00 36 88,0875 19,77184 3,29531 81,3977 94,7773 28,00 100,00 10 84,9000 24,31940 7,69047 67,5029 102,2971 49,00 100,00 3 87,6667 10,78579 6,22718 60,8733 114,4601 80,00 100,00 193 87,6842 21,80465 1,56953 84,5885 90,7799 13,00 100,00 1 2 3 4 5 6 7 8 9 10 Total
N Mean Std. Deviation Std. Error Lower Bound Upper Bound
95% Confidence Interval for Mean
Test of Homogeneity of Variances Percent Ownership in the subsidiary
1,607 9 183 ,116
Levene
Statistic df1 df2 Sig.
ANOVA Percent Ownership in the subsidiary
3235,561 9 359,507 ,747 ,665 88049,473 183 481,145 91285,034 192 Between Groups Within Groups Total Sum of
Squares df Mean Square F Sig.
Interpretations of Regression Coefficients for the ``Main Effects” and ``Moderator Effects” Model
The main effects model is composed of the independent and control variables which are
added to the regression model:
Own
i,= β
0+
β
1* (Ztechints)
i+ β
2* (Zmneyears)
i+ β
3* (Zceeyears)
i+ β
4*
(Zinstdevelopwb)
i+ β
5* (Zcultdiffks)
i+ β
6* (Zhostgdp)
i+ β
7* (Zglobempl)
i+ β
8*
(Zmktconcn)
i+ β
9* (restrict)
iTable 2: Interpretation of Regression Coefficients “Main Effects” Model:
Coefficient:
Interpretation:
β
0A constant, the value of the function when it crosses the Y line: indicates
level of ownership when there is no R&D intensity, 0 numbers of years
of experience abroad/CEE, no institutional development, 0 level of
cultural difference, no host country market and firm size, no market
concentration and no ownership restrictions.
β
1The change in ownership levels when there is a change in the R&D
intensity level.
β
2The change in ownership levels when there is a change in the number of
years of experience of doing business abroad.
β
3The change in ownership levels when there is a change in the number of
years of experience of doing business in the CEE region.
β
4The change in ownership levels when there is a change in the
institutional development index.
Coefficient:
Interpretation:
β
6The change in ownership levels when there is a change in the host
country market size.
β
7The change in ownership levels when there is a change in firm size.
β
8The change in ownership levels when there is a change in the market
concentration index.
β
9The change in ownership levels when there is a change in the level of
ownership restrictions.
Adding the ``moderator terms” to the main effects model results in the following regression
model:
Own
i,= β
0+
β
1* (Ztechints)
i+ β
2* (Zmneyears)
i+ β
3* (Zceeyears)
i+ β
4*
(Zinstdevelopwb)
i+ β
5* (Zcultdiffks)
i+ β
6* (Zhostgdp)
i+ β
7* (Zglobempl)
i+ β
8*
(Zmktconcn)
i+ β
9* (restrict)
i+
β
10* (Cinstdevelopwb)
i∗ (Ctechints)
i+
β
11*
(Cinstdevelopwb)
i∗ (Cmneyears)
i+ β
12* (Cinstdevelopwb)
i∗ (Cceeyears)
iThe moderator terms are obtained by multiplication of the relevant independent variables. In
this way the effect of (Cinstdevelopwb)
i,changing the relationship between (Ctechints)
i,(Cmneyears)
iand (Cceeyears)
ion Own
i,is being measured. Table 3 presents the
interpretations for the estimated coefficients when moderators are added to the model. Note
that the interpretation of the coefficients representing main effects changes when interactive
terms are added.
Table 3: Interpretation of Regression Coefficients “Moderator Effects” Model:
Coefficient:
Interpretation:
β
0A constant, the mean value of Y when all predictors equal 0: indicates
level of ownership for mean scores of R&D intensity, mean number of
years of experience abroad/CEE, mean level of institutional
development, 0 level of cultural difference, no host country market and
firm size, no market concentration and no ownership restrictions.
β
1The change in ownership levels when there is a change in the R&D
intensity level.
β
2The change in ownership levels when there is a change in the number of
years of experience of doing business abroad.
β
3The change in ownership levels when there is a change in the number of
years of experience of doing business in the CEE region.
Coefficient:
Interpretation:
β
5The change in ownership levels when there is a change in the cultural
difference index.
β
6The change in ownership levels when there is a change in the host
country market size.
β
7The change in ownership levels when there is a change in firm size.
β
8The change in ownership levels when there is a change in the market
concentration index.
β
9The change in ownership levels when there is a change in the level of
ownership restrictions.
β
10The unit change in the mean difference of ownership levels for R&D
intensity when institutional development changes.
β
11The unit change in the mean difference of ownership levels for
international experience when institutional development changes.
β
12The unit change in the mean difference of ownership levels for regional
Table 4: Binomial logistic regression results
Notes: two-tailed tests; dependent variable is wholly-owned (=1) or joint venture (=0); Ownership restrictions when present (=1) or without (=0).
† ρ<.10; * ρ<.05; ** ρ<.01; ** ρ<.001 (standard errors in parenthesis)
Variables Model 1 Main Effects Model 2 Including Model 3 Including
Cinstdevelopwb * Ctechints Cinstdevelopwb * Cmneyears
Model 4 Including Cinstdevelopwb * Cceeyears Intercept 1.339*** (0.254) 1.339*** (0.254) 1.367*** (0.260) 1.376*** (0.260) Ztechints .558* (0.237) .563* (0.240) .522* (0.234) .516* (0.236) Zmneyears .828** (0.306) .829** (0.306) .817* (0.339) .833** (0.314) Zceeyears -.730** (0.246) -.728** (0.247) -.750** (0.251) -.783** (0.251) Zinstdevelopwb -.081 (0.232) -.079 (0.233) -.043 (0.244) -.130 (0.243) Zcultdiffks .134 (0.221) .134 (0.222) .109 (0.224) .194 (0.228) Zhostgdp .339 (0.222) .340 (0.222) .335 (0.225) .356 (0.224) Zglobempl .274 (0.449) .277 (0.452) .351 (0.469) .295 (0.464) Zmktconcn -.246 (0.199) -.245 (0.200) -.204 (0.206) -.255 (0.203) Restrict (1) -.824† (0.449) -.826† (0.450) -.785† (0.461) -.888† (0.457) Cinstdevelopwb * Ctechints -.012 (0.109) Cinstdevelopwb * Cmneyears .010* (0.005) Cinstdevelopwb * Cceeyears -.011† (0.007)
Cases in the analysis
(missing in parenthesis) 154 (55) 154 (55) 154 (55) 154 (55)
Overall Omnibus
chi-square 24.879** 24.890** 29.892*** 27.941** -2LL (baseline in parenthesis) (180.473) 155.595 155.583 (180.473) 150.581 (180.473) 152.532 (180.473)
Cox & Snell R
²
.149 .149 .176 .166Nagelkerke R