Session 138

Doing Business in China

Track G

Date: Monday, October 12, 2009

 

Time: 12:45 – 14:00

Paper

Room: Meeting Room 15


Session Chair:
Anja Tuschke, University of Munich

Title: Experiential Effects on Strategic Preferences: The Case of the Chinese Upper Echelons

Authors

  • Gerry Sanders, University of Texas - San Antonio
  • Anja Tuschke, University of Munich

Abstract: Firms facing similar institutional and competitive environments often pursue different strategies. Some of this strategic heterogeneity is a function of varying resource and capability endowments. However, firms’ upper echelons (e.g., top management and board of directors) also possess varying experiences, which shape their views of the competitive landscape and affect their perceptions of attractive opportunities. Firms directed by upper echelons possessing more diverse experience sets should manifest different strategic preferences in the face of global complexity. In this study, we explore how the educational and professional experiences of the corporate upper echelons of large Chinese public firms influence these firms’ strategic direction through resource allocations and other strategic commitments. Specifically, we focus on the (a) international education, (b) foreign assignment work experiences, and (c) political and professional embeddedness ties within the Chinese socio-political system as antecedents of the likelihood of strategic commitments.

Title: How Executives' Evaluations of Foreign Direct Investment Opportunities in China Differ: Buyer's and Seller's Perspectives

Authors

  • Beverly Tyler, North Carolina State University
  • Jeffrey Reuer, University of Colorado, Boulder
  • Shujun Zhang, Sun Yat-sen University

Abstract: Despite the growing literature on FDI in China, little is known about what the Chinese executives selling the equity in their business are looking for in an IJV partner. Even less known regarding the differences between what the executives looking to invest (buyer) and executives accepting the investment (seller) focus on when evaluating Chinese investments and investor selection opportunities respectively. In this research, we apply multiple theoretical perspectives and use a policy capturing technique to investigate differences in information processing of U.S. top executives, as they evaluate FDI opportunities in China, and Chinese executives, as they evaluate potential U.S. investors in their company. Our research makes several theoretical and practical contributions to research on executive decision making and foreign direct investment.

Title: Is There a Liability of Foreignness or Localness in China? Local Chinese Firms' Perspectives

Authors

  • Fuming Jiang, Curtin University
  • Bruce Stening, Peking University

Abstract: This study provides an extension to the conventional model of liability of foreignness (LOF), positing that local Chinese firms could face a liability of localness (LOL) due to the presence of foreign firms. Based on survey data from 185 purely local Chinese firms, we tested several hypotheses. Local Chinese firms were found to enjoy significant location-based advantages over their foreign counterparts, contributing to LOF. However, the adverse effects of LOF on foreign firms appear to be off-set by the foreign firms’ superior firm-specific and multinationality advantages over local Chinese firms. Conversely, due to a lack of firm-specific and multinationality advantages, local Chinese firms may face significant LOL at home.

Title: Managing Uncertainty in International Mergers and Acquisitions: Ownership Strategies of Chinese Firms

Authors

  • Jiatao Li, Hong Kong University of Science and Technology
  • Zhenzhen Xie, Tsinghua University

Abstract: The evidence on the relationship between uncertainty and ownership strategies in international mergers and acquisitions has been inconclusive in the strategy literature. We reexamine this relationship by decomposing uncertainties from two different resources. Relational uncertainty due to investors’ unfamiliarity with the host environment is expected to increase the investor’s ownership stake in acquisitions abroad; while external uncertainty due to exogenous instability in the host environment is expected to reduce the acquirer’s ownership stake. The hypotheses are largely supported with data on 260 international mergers and acquisitions (M&A) made by Chinese firms during the 1987-2004 period.

All Sessions in Track G...

Sun: 10:00 – 11:30
Session 270: Globalizing the Young Venture: A Conversation with Four High Tech CEOs
Sun: 13:00 – 14:30
Session 271: The Duke Offshoring Research Network Project: Implications for Research and Practice
Sun: 15:00 – 16:30
Session 272: Location, Knowledge, and Competitive Dynamics: New Research Directions
Sun: 16:30 – 17:30
Session 311: Global Strategy, IG Meeting
Mon: 12:45 – 14:00
Session 138: Doing Business in China
Mon: 15:45 – 17:00
Session 139: Offshoring & Outsourcing
Mon: 17:15 – 18:30
Session 142: Liability of Foreignness
Tue: 10:00 – 11:15
Session 140: Global Diversification and Firm Performance
Tue: 11:30 – 12:45
Session 145: Institutions and Governance in an Uncertain World
Tue: 14:30 – 15:45
Session 141: Entry Strategy & Location Choice
Session 143: Managing MNC Subsidiaries: Innovation, Control and Subsidiary Initiatives
Wed: 10:00 – 11:15
Session 146: Global Knowledge Search
Wed: 11:30 – 12:45
Session 147: Internationalizing the Firm: Institutions, Emerging Markets and Performance Considerations


Strategic Management Society

Washington DC