Capítulo 3 Diseño del proyecto de intervención
3.3 Recursos del proyecto
Presented On: July 5, 2013 - 14:50-16:05
Chair: William Newburry, Florida International University
Firm, Industry and Country Effects in Emerging and Developed Economies: Paradigm Shifts in the Post-Recession Era
Vassiliki Bamiatzi, Leeds University Konstantinos Bozos, Leeds University Tamer Cavusgil, Georgia State University Tomas Hult, Michigan State University
In this study we offer new insights on the influences of firm, industry and country effects on firm profitability.
We consider the role of the global economic crisis and how this impacts on the underlying relationships between countries at different development stages, namely developed and emerging. Using a 3-Level HLM model, we examine 15,280 firms in 68 SIC2 industries within ten emerging and ten developed countries, and compare and contrast firm, industry and country effects on profitability during the period 2005-2011. We find that firm-specific effects are predominant determinants of profitability, while industry and country effects are also present. The latter two are more important in emerging than in developed countries. When country-industry interactions are accounted for, they overtake the main industry and country effects, especially for firms in emerging economies, suggesting that the capabilities, attributes and expertise a country shares in certain industries can be more important in emerging markets. Under conditions of economic adversity, firm effects are strengthened to the expense of industry and country effects, both across developed and emerging countries, thus rendering firms even more responsible for their own fate. (For more information, please contact: Vassiliki Bamiatzi, Leeds University, United Kingdom: [email protected])
Branding and Performance Implications in Emerging Markets Katharina Maria Hofer, Johannes Kepler University Linz
This study examines the impact of branding aspects on firm performance in the emerging markets of Central and Eastern Europe. Specifically, the question of standardization versus adaptation of brand promotion is the focus of attention. After literature review, a conceptual model suggests that the standardization of brand promotion as well as a long-term brand vision provided by management positively influence target market performance. Furthermore, the model considers external environmental factors. Data gathered from a survey with managers allow testing the hypotheses through structural equation modelling. The results of the
quantitative study largely support the hypotheses. (For more information, please contact: Katharina Maria Hofer, Johannes Kepler University Linz, Austria: [email protected])
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The Effect of Product Innovativeness, Channel Networking and Competitive Intensity on Export Performance:
Evidence from Ghana
Nathaniel Boso, University of Leeds Vicky M. Story, University of Nottingham John W. Cadogan, Loughborough University
Emerging markets offer substantial growth opportunities for firms that are operating in, or out of, these countries. However, only few studies have examined product innovativeness and its relationship with export performance in emerging market firms, and none of these have investigated non-linear associations. The purpose of this study is, therefore, to develop a model of the export success outcomes of product
innovativeness in emerging markets, focusing on the potential for curvilinear associations to be present, as well as to incorporate an understanding of the possibility that channel networking and competitive intensity may act to moderate any curvilinear relationships present. The model is tested using longitudinal data from exporting firms operating in Ghana. Results show that the impact of product innovativeness on export performance is U-shaped; and that this curvilinear relationship between product innovativeness and export success is
strengthened as channel networking increases, and becomes invert U-shaped as competitive intensity increases.
The paper concludes that, for emerging market firms seeking to compete in foreign markets, the product innovation activity undertaken should be planned with optimal levels of product innovativeness sought given firms’ channel networking levels, and degree of competitive activities in their export markets. (For more information, please contact: Nathaniel Boso, University of Leeds, United Kingdom: [email protected])
Auditor Quality, CEO Turnover and Firm Performance
Jie Zhang, Peking University & China HuaRong Asset Management Co., Ltd.
Xiyou Liu, Peking University
Jiawen Yang, George Washington University
This paper investigates whether boards are more likely to fire CEOs for poor performance or reward CEOs for good performance as the perceived earnings credibility signaled by audit quality in a sample of China’s listed firms from year 2000 to 2007 The results show that audit quality enhance the sensitivity of chief executive officer (CEO) turnover to firm performance, which indicates that audit quality plays an important role in
determinants of CEO turnover and do have a corporate governance role by alleviating the manager-shareholder conflicts. The results also show that the link between Audit quality and CEO turnover-Performance sensitivity is greater in the listed firms that have a non-state controlling shareholder. Since a potential issue with the
research design we employ is that CEO turnover and auditor choice may be determined simultaneously, we also examine auditor switches in a sub-sample, which contains firms that have switched across auditor class groups, and the result is robust. (For more information, please contact: Jie Zhang, Peking University & China HuaRong Asset Management Co., Ltd., China: [email protected])
Session: 2.4.6 - Competitive
Track: Track: 3 - IB Theory, FDI, and Entry Mode
Internationalization Theory
Presented On: July 5, 2013 - 14:50-16:05 Chair: Sokol Celo, Suffolk University
Resource-Capability Recombinations and Multinational Enterprise Theory Lars Matysiak, Justus Liebig University Giessen
Alan M. Rugman, University of Reading
Andreas Bausch, Justus Liebig University Giessen
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According to the resource-based view (RBV), resources and capabilities (RCs) that exhibit value, rarity, inimitability and organizational appropriability are the foundations of competitive advantages. Dynamic capabilities which allow to continuously achieve recombinations of RCs (that serve to exploit evolving opportunities or neutralize surfacing threats) are the basis of sustaining competitive advantages. Yet, this explanation of sustainable competitive advantages of firms largely disregards the location/country aspects of multinational enterprises (MNEs). In contrast, internalization theory, the dominant theory of the MNE, incorporates location aspects but was not intended primarily to explain competitive advantages. Here we explicitly integrate RBV insights into internalization theory. This allows us to carefully reconceptualize and clarify key constructs of MNE theory. We develop the multinational advantages vector space (MAVS) framework as a new integrative theoretical model. This explains that competitive advantages of MNEs consist of three
dimensions: (i) country-specific, (ii) non-location bound firm-specific, and (iii) location bound firm-specific advantages. We extend MNE theory by conceptually distinguishing between these endogenous advantages and their causal RCs. We find that, from a dynamic point of view, MNEs need higher-order firm-specific advantages, conveyed by dynamic capabilities to continuously attain new advantages via recombining RCs, in order to sustain competitive advantages. (For more information, please contact: Lars Matysiak, Justus Liebig University Giessen, Germany: [email protected])
Dynamics of International Business Research: A Relational Cluster Perspective Werner Kunz, University of Massachusetts Boston
Stephan Manning, University of Massachusetts Boston Torben Pedersen, Copenhagen Business School
This study examines the evolution of the field of international business (IB) research based on a relational cluster analysis of co-citations in the Journal of International Business Studies (JIBS) from 1982 to 2011.
Particularly, we examine the changing role of theory in relation to empirical IB research. Based on a factor and network analysis, we identify distinct clusters of IB research and their relations over time. We show that the initial focus of IB research on issues of international expansion has shifted towards issues of governance and implementation. In this process, debates on foreign entry mode and culture have served as important
integrating themes. At the same time, theory debates in IB have expanded from a narrow focus on explaining international expansion, to a rather heterogeneous conglomerate of approaches which have assisted
increasingly differentiated empirical research. Our findings have important implications for evaluating the present state and potential future of IB as a research field. (For more information, please contact: Stephan Manning, University of Massachusetts Boston, USA: [email protected])
Internationalization of Emerging Market Firms: Capability Renewal through Competitive Dynamics Joon-Ho Shin, ESADE Business School
Matthew Allen Hawkins, ESADE Business School Xavier Mendoza, ESADE Business School
In this paper, we argue that FDI (Foreign Direct Investment) of emerging market firms is driven by the strategic interaction of firms operating within a competitive environment. Through the competitive dynamics approach, based on the action and reaction of competitors, a framework to discuss how emerging market firms react to foreign entrants at home and how this reaction motivates a firm to expand internationally in a fast and risky way is developed. The framework explains the outward FDI mechanisms emerging market firms pursue as they become emerging market multinational enterprises, supporting the springboard behavior of EM MNEs. Firms from emerging markets are not just passive reactors who become multinational enterprises by defending their positions with available resources, but who become MNEs by aggressively searching and acquiring the
necessary resources to enhance their competences to secure their key markets and to pursue further expansion. This view helps explain the renewal process were initial competitive advantages mainly based on location advantages of home markets transition into advanced firm-specific advantages, which prior literature has been unable to fully explain. (For more information, please contact: Joon-Ho Shin, ESADE Business School, Spain: [email protected])
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Inertia and the Change of State in the Uppsala Internationalization Process Model Douglas Dow, Melbourne Business School
Peter Wayne Liesch, University of Queensland Lawrence Welch, Melbourne Business School
Even in its most recent formulations, the Uppsala model focuses on a narrow set of factors - uncertainty, risk, trust and lack of awareness of opportunities - to explain the mechanisms that delay a firm's internationalization.
By introducing inertia to the Uppsala model, we propose that a broader range of mediating factors may be at work. This development has implications for the role of experiential learning in the internationalization process, re-introduces managerial intentionality to the internationalization debate and illustrates how changes in the external environment may trigger changes in a firm’s commitment to a market or network. (For more information, please contact: Peter Wayne Liesch, University of Queensland, Australia: [email protected])
Session: 2.4.7 - Competitive
Track: Track: 10 - Economics, Finance and Accounting