Presented On: July 5, 2013 - 13:20-14:35 Chair: Daniel Bello, Georgia State University
How Firm-Specific Marketing and Technology Capabilities Matter in Geographic Expansion of Emerging Market Firms?
Jie Wu, University of Macau
Nitin Pangarkar, National University of Singapore
This study links regional diversification to global diversification and examines the moderating role of firm-specific technological and marketing capabilities in this relationship. Drawing on the organizational learning theory and the resources/capabilities view, this study develops and tests hypotheses on a sample of 687 manufacturing firms across multiple industries in China. Our analysis reveals that: regional diversification has a positive impact on global diversification, both technological capability and marketing capability positively moderate the effect of regional diversification on global diversification, and, interestingly, this interactive effect is stronger for marketing capability than for technological capability. (For more information, please contact: Jie Wu, University of Macau, Macau: [email protected])
Network Positions and Internationalization: A Panel Data Analysis of the Distribution Channels in Semiconductor Industry
Joseph Shyh-Yeu Tzou, National Taiwan University Y.L. Jaw, National Taiwan University
This study argues that firm’s network positions play important roles in its internationalization, and intends to provide a network explanation for the purported relationship between firm’s network positions and its
internationalization in the context of semiconductor industry. This study adopts the quantitative methodology to explore the research questions. Drawing on thirty years of observations for each of the five years from 1980 to 2010 for distributor firms in the semiconductor industry, this study utilizes panel data regression to examine the effects of a firm’s network positions on its internationalization. The sample of this study is the 113 franchised semiconductor distributor firms in Taiwan of the WSTS’s (World Semiconductor Trade Statics) 63 member companies. WSTS’s member companies represent more than 75% of the world semiconductor market.
Worldwide top 20 semiconductor suppliers are WSTS members. This virtually includes all major semiconductor manufacturers from 4 major regions, namely America, EMEA(Europe, Middle East, and Africa), Japan and Asia Pacific. Results of this study support the positive relationship between firm’s centrality of its network positions and its internationalization, the positive relationship between firm’s structural holes of its network positions and its internationalization, and the positive relationship between firm’s brokerage of its network positions and its internationalization. The moderator effects of firm’s joining association and going initial public offering (IPO) in the structural holes-internationalization relationship are supported by this study, while the moderator effects of firm’s joining association and going IPO in the centrality-internationalization relationship are not supported by this study. (For more information, please contact: Joseph Shyh-Yeu Tzou, National Taiwan University, Taiwan:
Page 154
AIB 2013 Conference Proceedings
The Effects of the Salesperson Characteristics on Buyer-Seller Relationships Yonghoon Choi, Doshisha University
Ying Huang, University of Massachusetts Lowell Brenda Sternquist, Michigan State University
This study examines the influence of the salesperson characteristics (organizational commitment and disposition to innovate) on buyer behaviors in buyer-supplier relationships. A model is proposed depicting the effects of the salesperson’s organizational commitment and disposition to innovate on buyer long-term orientation and opportunism through partner-specific value to the buyer. Data were collected from 155 sales professionals of Japanese manufacturers. Structural equation modeling was used to analyze the data. As predicted, the salesperson’s organizational commitment and disposition to innovate enhance buyer long-term orientation through providing partner-specific value to the buyer, and in turn, buyer long-term orientation mitigates
opportunism. The salesperson plays an important role for developing and maintaining buyer-seller relationships.
Based on our results, firms should promote salespeople’s organizational commitment because a highly committed salesperson is likely to be more innovative when managing the relationship with the buyer, and in turn, increase the relationship specific value to the buyer. (For more information, please contact: Ying Huang, University of Massachusetts Lowell, USA: [email protected])
The Role Asset Specificity in Trust Buling Process: An Emperical Study of Strategic Alliances between MNE Subsidiaries and Local Suppliers in Thai Manufacturing Sector
Rapeeporn Rungsithong, University of Bath Anthony Roath, University of Bath
This study investigates an under-researched topic: the role of asset specificity in personal trust and inter-organizational trust building process in strategic alliances. We combine the concept of relationship asset specificity and the social exchange perspective of intensity of the alliance partner relationships that transform key resources into the level of trust. Employing a sample of 156 alliance projects between MNE subsidiaries and local suppliers in Thai manufacturing sector, our investigation demonstrates intensity of inter-personal
relationship and inter-organizational facilitate the level of trust in strategic alliances while asset specificity has negative impact on the level of inter-personal trust between alliance partners. However, our research shows that asset specificity enhances trust through the mediating effect of intensity of personal and inter-organizational relationships. Moreover, our research supports the link transference from inter-personal trust to inter-organizational trust. The implications of these findings for theoretical development and future research are discussed. (For more information, please contact: Rapeeporn Rungsithong, University of Bath, United Kingdom:
The Influence of Non-Verbal Communication on B2B Negotiations: Some Preliminary Evidence from France and Germany
Laetitia Dreyer, ESC Rennes Business School Mohammad Niamat Elahee, Quinnipiac University
The role of non-verbal communication in business negotiations is well documented. Based on empirical data collected from people engaged in face-to-face negotiations in business-to-business contexts in France and Germany, this paper examines how the importance of non-verbal behaviour is perceived by the French and German negotiators and how different aspects of non-verbal communication affects their negotiation style. The paper also examines the impact of gender and age on the use of non-verbal communication, and consequently, how they affect business-to-business negotiations. The paper also discusses the managerial implications of the findings and makes appropriate recommendations for further studies. (For more information, please contact:
Mohammad Niamat Elahee, Quinnipiac University, USA: [email protected])
Page 155
AIB 2013 Conference Proceedings
Global Account Management: A Boundary Spanning Capabilities Approach Linda Hui Shi, University of Victoria
Anthony Goerzen, Queen's University
Global Account Management (GAM), defined as the centralized selling activities to serve key global account customers, is an emerging research area in International Marketing. Given the importance of global key accounts, GAM research lies at heart of Customer Relationship Management (CRM). A major concern of global account management studies relates to the capabilities the global account managers need and how these capabilities can be cultivated and moderated in different cultural contexts. According to previous scholars, the capabilities possessed by managers can be examined in terms of the cognitive and affective systems at both the organizational and the individual level. Thus, this study will address the aforementioned key concern by
applying boundary spanning capability framework and incorporating cognitive and affective systems at both levels as antecedents. (For more information, please contact: Linda Hui Shi, University of Victoria, Canada:
Session: 2.3.15 - Interactive
Track: Track: 4 - Strategy, Alliances, and Competitiveness
Managing Alliance Partners and Portfolios
Presented On: July 5, 2013 - 13:20-14:35 Chair: Ali Taleb, MacEwan University
Unpacking Cross-border Knowledge Transfer and Learning Paradoxes: Contextual Differences Matter Mia Hsiao-Wen Ho, Soochow University
This research unpacks the paradoxes in knowledge transfer and learning processes in international strategic alliances by highlighting the contextual differences between partner firms. We distinguish country- from firm-level differences and argue that although institutional distance facilitates knowledge transfer because it lessens the need of knowledge protection, it negatively influences the alliance performance because it restricts the firm’s realized absorptive capacity to apply the acquired knowledge into the alliance context. To overcome such inherent, perplexing challenges resulting from contextual differences, our findings suggest that relational capital accumulated by partner firms during collaborations positively moderates the effects of institutional distance on cross-border knowledge transfer and learning processes. Theoretical and managerial implications are provided.
(For more information, please contact: Mia Hsiao-Wen Ho, Soochow University, Taiwan: [email protected])
Partner Selection in International Technological Alliances: The Role of Institutional Differences, Historical Ties and Size of the Focal Firm
Sorin M.S. Krammer, Groningen University
This study posits that institutional distance has a negative influence on partner selection in international
technological alliances. Empirical results based on a dataset of firms in the global tire industry confirm that firms prefer technological partners from closer cognitive, normative and regulatory environments. Moreover, the analysis indicates that formal (economic treaties) and informal (colonial past) historical ties, and focal firm size moderate positively this relationship through different institutional channels. (For more information, please contact: Sorin M.S. Krammer, Groningen University, Netherlands: [email protected])
Page 156
AIB 2013 Conference Proceedings
Modeling Strategic Partnership in International and Domestics Relations Justyna Swiatowiec-Szczepanska, Poznan University of Economics
The paper analyses research trends in the development of international relations based on strategic partnership.
The literature review stresses the need to consider today’s perceived partnership risk, including relational and performance risk. This aspect is included in a developed definition of partnership, where the key problem is relational governance. The paper presents a strategic partnership model including partnership risk and mechanisms to control it. Hypotheses are put forward and tested by means of a structural equation modelling (SEM) procedure. The study uses a sample of 215 large and medium-sized companies (with over 50 employees) operating in Poland. The research sample includes 98 companies making up international strategic partnerships and 117 enterprises in strategic relations with domestic partners. The aim of the research is to identify a universal strategic partnership model which could be applied in the global economy. The analysis demonstrates a great significance of behavioural aspects of cooperation – including relational norms and goodwill – in the reduction of partnership risk. Formal mechanisms of cooperation control play a considerably lesser role. (For more information, please contact: Justyna Swiatowiec-Szczepanska, Poznan University of Economics, Poland:
Learning Strategies as an Interfirm Ambidexterity in Reconciling Interorganizational Relational Outcomes Tension
Pei-Li Yu, National Cheng Kung University
Achieving high interfirm adaptation and low ex-post opportunism enable superior interfirm relational outcomes, but raise challenging tensions. Combining both types of activities and achieving organizational ambidexterity, however, leads to the presence of multiple and often conflicting goals, and poses considerable challenges to develop the effective learning strategies in ambidextrous organizations. This study explores the role of learning strategies in reconciling conflicting interests in interfirms and achieving organizational ambidexterity. While there seems to be little doubt about the positive impact of learning strategies on interorganizational
releationships (IORs), the author posits that the direct effect is mitigated by a variable specific to the interfirm context, namely cultural differences. This study finds partial empirical support for the developed theory in the context of high technology industry. The results show positive interaction effects between the exploitation of learning strategies and a lower cultural difference on a higher interfirm adaptation of interfirm ambidexterity.
(For more information, please contact: Pei-Li Yu, National Cheng Kung University, Taiwan:
The Effects of Asset Specificity in International Partnerships and in Domestic Partnerships: Comparisons and Research Propositions
Yanhui Zhao, Michigan State University Thomas P. Murtha, Michigan State University Stefanie Lenway, Michigan State University
Drawing on transaction cost economics (TCE) framework, we attempted to compare the effects of asset
specificity in international partnerships with that in domestic partnerships. It was proposed in this study that the association between asset specificity and transaction hazards was stronger in international partnerships than in domestic partnerships. Nevertheless, our research did not discourage firms from dedicating specific investments to international partnerships, instead it was suggested that asset specificity in international partnerships
generated higher positive outcomes than that in domestic partnerships – the positive impacts of asset specificity on collaborative performance and radical innovations were argued to be higher in international partnerships than in domestic partnerships. This study is an explorative study providing testable propositions for future research. (For more information, please contact: Yanhui Zhao, Michigan State University, USA:
Page 157
AIB 2013 Conference Proceedings
Alliance Portfolio Diversity Configuration and Multinational Firms’ Continuing Foreign Expansion—Examination from a Real Options Perspective
Wei He, Purdue University North Central Jinlin Zhao, Florida International University
In this conceptual paper we propose a conceptual model to explain the determinants of multinational firms’
strategic choices of continuing foreign expansion. This conceptual work advances the extant literature on the process of internationalization by bridging two lines of research—firms’ external collaboration and firms’
internationalization through a real options approach. Built from a real options perspective, the conceptual framework in this study identify some key exploratory factors across firm-, industry-, country- levels on multinational firms’ propensities of continuing foreign expansion. In particular, we investigates the two-directional continuing internationalization, which takes into account both the depth and breadth dimension of foreign expansion comparing to prior studies that mainly focuses on one-directional subsidiary growth or new-country entry. This study especially highlights the strategic roles of existing alliance portfolio configuration in influencing a firm’s strategic decision-making. By examining how firms’ propensities of continuing foreign expansion are influenced by existing alliance portfolios’ diversity configuration, this study extends the current international business and strategic management research by bridging the research gap between determinants of initial entry mode and driving forces of post-entry expansion in the foreign counties. (For more information, please contact: Wei He, Purdue University North Central, USA: [email protected])
Match Making, Structural Holes, and Arranged Marriages: The Process of Small Multinational Enterprises International Alliance Formation
Clifford Wymbs, Baruch College-CUNY
I analyzed conceptual and practical issues related to the changing role third parties play in bringing together alliance partners for small businesses from two distant countries. I found that to share in the gains of
globalizing economy, smaller multinational enterprises find surrogates outside their firm, third party enablers, to help bridge informational structural holes and build multi-nodal social networks that link cross-cultural alliances partners. Propositions are developed that explain similarities and differences between large and small firms, the role third parties play with small firms, and then how these third-party behaviours co-evolve with the alliance partners. A qualitative case study of a successful international strategic alliance is used to develop propositions and additional cases in different industries are used to triangulate these findings. (For more information, please contact: Clifford Wymbs, Baruch College-CUNY, USA: [email protected])
Strategies for Making Global-Local Alliances Work in Emerging Markets Private Equity Markus D. Taussig, National University of Singapore
Pavel Zhelyazkov, Harvard Business School
We study the factors affecting whether US venture capital and private equity firms select partners with host country origins when they engage in syndicated deals outside of the US. Our sample covers the years 2005 to 2011 and covers deals in 46 host countries. We find evidence that host country origins increase the likelihood of co-investing with a diversifying US firm, especially if the host country contracting institutions are weak. We find evidence of that direct ties, overlap in geographic experience, and overlap in industry experience on the
likelihood all have stronger positive influences on partner selection decisions involving a host country firm. US firms with host country experience are also more likely to partner with a host country firm. We discuss the implications for international alliance strategy. (For more information, please contact: Markus D. Taussig, National University of Singapore, Singapore: [email protected])
Page 158
AIB 2013 Conference Proceedings Session: 2.4.1 - Special Session