Session 147

Internationalizing the Firm: Institutions, Emerging Markets and Performance Considerations

Track G

Date: Wednesday, October 14, 2009

 

Time: 11:30 – 12:45

Common Ground

Room: Meeting Room 12


Facilitator:
Alvaro Cuervo-Cazurra, Northeastern University

Title: Dynamic Globalization of Emerging Multinational Corporations

Authors

  • Hwy-Chang Moon, Seoul National University
  • Jin-Sup Jung, Chungbuk National University
  • Jin Uk Kim, Seoul National University

Abstract: The purpose of this study is to present the success factors of emerging multinational corporations (EMNC). First, based on previous literatures, this paper identified two apparently contradicting trends which are unconventional firm specific advantage and accelerated internationalization. Through various examples, this paper identifies the link between the two concepts in order to reconcile the apparent contradiction. Next, additional distinct characteristics of EMNCs such as entry mode, dynamic global strategy and adaptation to emerging market are identified to present a broader picture of EMNCs. Last, the above findings are organized into a modified version of Porter’s diamond model in order to provide a comprehensive analytical perspective. This paper concludes that accelerated globalization enables EMNCs to overcome their disadvantage and amplify their unconventional advantages.

Title: Facing Revenues Uncertainties in Public Industries: The Design of Business Models For Satellite Services

Authors

  • Lucia Marchegiani, LUISS Guido Carli University
  • Enzo Peruffo, LUISS Guido Carli University
  • Luca Pirolo, LUISS Guido Carli University

Abstract: With the internationalization and the emergence of new and more powerful technologies, innovative business models are at the core of international firms’ success. Nevertheless, business models have been confined on the private industries, In light of the recent debate about the management of the public sector, it is possible to affirm that in public management the opportunity to protect the public interest is paired with the need of reaching higher degree of efficiency and effectiveness. This leads to introduce the logics of private management into public projects. From this standpoint, the study of business models could provide insights on the management challenges that public administrators face nowadays, which is the goal of this paper, focusing on a dynamic, international, and innovative industry, namely the aerospace.

Title: Institutional Environment, Firm Motives, Entry Strategy: When Certainty is a Source of Uncertainty

Authors

  • Rimi Zakaria, Florida International University
  • Sumit Kundu, Florida International University

Abstract: Reflecting upon institutional theory, transaction cost economics, resource-dependence theory, agency theory, and eclectic paradigm we examine institutional uncertainties encountered by service MNEs that venture into emerging economies. Given the entry motivations of the firms, a wide array of hypotheses are presented to predict that there is a linkage between different sources of institutional uncertainty and service MNEs equity and non-equity mode of entry. Synthesizing a number of prior studies, we propose that corruption, government policy instability, economic uncertainty, and cultural distance are negatively correlated with firms’ equity entry; whereas, risks from the regulatory environment is positively correlated with firms’ equity entry strategy. Based on the theoretical perspectives, we offer a research design to empirically test the relationship.

Title: Regulatory Governance, Multinational Firms and Entry Strategies

Authors

  • Bertrand Quelin, HEC-Paris
  • Santiago Urbiztondo, Latin American Economic Research Foundation
  • Jean-Philippe Bonardi, University of Lausanne

Abstract: In this paper, we analyze the international development of firms in regulated industries. We analyze the impact of the regulatory governance on the entry and performance level of firms in such environment. We focus on the case of mobile telecommunications. The article explores the relationship between the existing national regulatory governance, competitive environment and performance of mobile network operators (MNO) in Europe. We exploit a unique dataset comprising firm-level information for a sample of 60 companies and 20 European countries over the 2000-2007 period. The results indicate that the market size and geographical proximity explain the entry. The transparency and credibility of regulation also help entry. Moreover, the size, financial strength and international experience of the firm determine the economic its economic performance.

Title: The Synergy of Business Groups in the Emerging Economy

Authors

  • Chien-Nan Chen, National Dong Hwa University
  • Wenyi Chu, National Taiwan University

Abstract: A number of studies have compared the overall financial characteristics of the group-affiliated firms and the independent firms in emerging economies. However, there are no studies that compare the financial characteristics of the overall group-level and independent firms. To understand the notion of synergy in diversified business groups in emerging economies, this study attempt to do the comparison of financial characteristics between business groups, group-affiliates, and non-group-affiliates.
The preliminary results show that the profitability of firms affiliated with groups is significantly higher than that of non-group-affiliates. Meanwhile, business groups and group-affiliates both show a significantly higher level of growth in size, and a higher level of debt capacity than non-affiliates. It is also found that business groups demonstrate higher expansion capability and obvious financial synergies. However, they also have lower operating efficiency, implying that managing an overall business group is more difficult than managing an independent firm.

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