International Business Commons^™

The Impact Of Monetary Regimes On International Trade Are Eu Experiences Relevant For Asia?, Apanard P. Angkinand, Clas Wihlborg

Business Faculty Articles and Research

We extend much research that has been devoted to the effects of the European Monetary Union (EMU) on international trade by introducing monetary regime variables in bilateral export equations with the objective of capturing the effects on trade of changes in monetary regimes relative to the pure EMU effects. To make the analysis relevant from an Asian perspective trade effects of the EU’s internal markets are also separated from EMU effects. To identify these different effects we include three groups of countries in our sample: EMU countries which are also members of the EU, EU countries outside the EMU and …

Competitive Priorities And Strategic Consensus In Emerging Economies: Evidence From India, Ravi Kathuria, Stephen J. Porth, N. N. Kathuria, T. K. Kohli

Business Faculty Articles and Research

Purpose

– The purpose of this paper is to understand the competitive priorities of manufacturers in India, and examine the level of agreement or strategic consensus between senior executives and manufacturing managers on manufacturing competitive priorities in light of the prevalent culture.

Design/methodology/approach

– Survey data collected from 156 respondents from 78 manufacturing units based on a national sample in India are used to test the hypotheses using the paired samples t‐tests and multivariate analysis of variance.

Findings

– A relatively high emphasis by both levels of managers on quality, compared to the other three competitive priorities, is noteworthy and …

Towards A Center For Modeling And Simulation: The Case For Jordan, Ghaith Rabadi, Hazem Kaylani, Joseph Barjis (Ed.), Murali Mohan Narasipuram (Ed.), Ghaith Rabadi (Ed.), Jolita Ralyt (Ed.), Pierluigi Plebani (Ed.)

Engineering Management & Systems Engineering Faculty Publications

Modeling and Simulation (M&S) has recently become an important area that is pursued by many researchers and practitioners due to the role it plays in understanding complex systems and problems. We have therefore witnessed the establishment of many M&S organizations in the last two decades especially in the more developed world. Less developed countries are starting to recognize the need for such capability especially that the problems they face are not less complex. In this paper, we present a preliminary study towards a business plan for establishing a scientific center for Modeling, Analysis, Simulation and Animation in Jordan (JoSAMA) and …

The Impact Of Interorganizational Imitation On New Venture International Entry And Performance, Stephanie A. Fernhaber, Dan Li

Scholarship and Professional Work - Business

We examine the impact of interorganizational imitation on new venture international entry and subsequent performance. Using a sample of 150 U.S.-based publicly held new ventures, we find that new venture international entry is in part an imitative response to the internationalization of other firms in the venture's home country industry and/or subsets of firms with certain traits or outcomes. We also find that interorganizational imitation moderates the relationship between new venture international entry and profitability, but not the relationship between new venture international entry and sales growth. These findings contribute to the growing body of literature on new venture internationalization.

Tunneling As An Incentive For Earnings Management During The Ipo Process In China, Jiwei Wang, Joseph Aharony, Hongqi Yuan

Research Collection School Of Accountancy

Using a sample of 185 Chinese IPO firms listed on the Shanghai Stock Exchange during the period 1999-2001, we show that related-party (RP) sales of goods and services could be used opportunistically to manage earnings upwards in the pre-IPO period. We also provide evidence that such behavior may be motivated by the prospect of tunneling opportunities in the post-IPO period, i.e., exploiting economic resources from minority shareholders for the benefit of the parent company. We provide evidence of one such opportunistic tunneling tool: non-repayment by Chinese parent companies of net outstanding corporate loans made to them by their newly listed …

Do Values Or Goals Better Explain Intent? A Cross-National Comparison, Marianela Fornerino, Alain Jolibert, Carol M. Sanchez, Mengxia Zhang

Peer Reviewed Articles

Among six major lines of inquiry on motivations, two theories are especially pertinent to consumer behavior studies: values and goals. Several studies show that consumer behavior can be predicted on the basis of values or goals; this study examines which are the stronger predictors by presenting a cross-cultural comparison of the values and goals that may influence the behavioral intentions of U.S., Chinese, and French students to study abroad. As a service, study abroad has financial implications, represents a choice, and competes with other educational products. Therefore, goals appear to explain behavioral intentions better than do values, except among U.S. …

Immigrant Business Enterprises: A Classification Framework Conceptualization And Test, Roberto Curci, Robert Mackoy

Scholarship and Professional Work - Business

This article proposes the Immigrant Business Enterprises Classification Framework to organize immigrant-owned businesses into categories associated with different levels of business integration into a host country's mainstream business community. The article applies the framework and reports the findings of structured face-to-face interviews with 199 Hispanic business enterprises (HBEs) in Indianapolis. The authors find Hispanic-owned businesses hold different characteristics depending upon the integration category in which they are classified; the findings suggest that to support immigrant entrepreneurship, governments, business development organizations, and researchers should address category-specific challenges, opportunities, and needs.

Utilisation Of Foreign Trade Zones In The Global Supply Chain: An Exploratory Study, Hokey Min, Thomas E. Lambert

Management Faculty Publications

Foreign Trade Zones (FTZs) are considered duty-free areas and, thus, not governed by the usual customs and tariff controls. In other words, the merchandise permitted in the FTZ may be stored, sold, exhibited, labelled, repacked, assembled, distributed and mixed with other merchandise without paying customs duty until merchandise is released from the zone. Deferred customs duties in the FTZs can contribute significantly to the profitability of the Multinational Firms (MNFs) that get involved in global supply chain activities. Thus, the utilisation of FTZs is believed to have a positive impact on export/import operations and the location decisions of MNFs. Despite …

Spain And The 2004 Expansion Of The European Union: A Case Of Fdi Diversion?, Christopher M. Preston

CMC Senior Theses

With the expansion of the European Union there have been concerns over increasing competition for FDI attraction between member states. This study will examine to what extent, if to any extent at all, the admission of the Central and Eastern countries to the EU has raised completion for FDI in Spain. Spain and the CEECs will be compared in terms of advantages in FDI attraction. Ultimately, evidence and analysis will suggest that given current trend, there is no serious threat to diverting foreign assets from Spain to the CEECs.

A Study Of The Effect Of Economic Policies On The Domestic Film Market, Gyeoreh Lee

MPA/MPP/MPFM Capstone Projects

These days, the U.S. films’ market share in the world is almost 70 percent and many countries have devised various means, including import quota, screen quota, subsidy, and tax concessions to protect the domestic film industry by preserving local film’s market share against U.S. film domination. Retaining these policies has important symbolic reasons because market share of the domestic film is related to preserving each country’s cultural sovereignty. However, the effectiveness of the economic policies is murky. If the policies do not bring any advantageous effect to the domestic film industry, there is no rational justification for sticking with them. …

Cyber Transportation Logistics: Architecting A Global Value-Chain For Services, Yupo Chan, Jaouad Boukachour, Chia-Chu Chiang, Madan Mohan Dey, Charles-Henri Fredouët, Hing-Po Lo, Farhad Moeeni, Albert K. Toh

Faculty Publications

In today’s global economy, products and services are provided across international borders. The sourcing of these products and services becomes an integral part of international businesses. Information, communication and transportation technologies (ICTT) have made this job significantly more streamlined. However, there is an advantage that big companies, such as Wal-Mart, have over small and medium size ones. While the big companies have the ICTT resources to source globally at will, small and medium enterprises (SME) are much less prepared to do so, resulting in a large competitive disadvantage. By contrasting SMEs with their more successful “big brothers,” we highlight the …

Internationalization And Organizational Resources Of Chinese Firms, Chung-Ming Lau, Hang-Yue Ngo, Daphne W. Yiu

Research Collection Lee Kong Chian School Of Business

Purpose - The internationalization of Chinese firms has been gaining importance in recent years Informed by Dunning s eclectic paradigm this paper examines the factors leading to the going international decisions of Chinese firms in the very early days of the go global call before the central government offered substantial supportDesign/methodology/approach - It is suggested that two types of organizational factors are relevant to these decisions the firm s management capability and core competencies A survey of data of chief executives from over 3 000 firms in the year 2000 was analyzedFindings - Empirical results indicate that different resources endowments …

The Shifting Geography Of Competitive Advantage: Clusters, Networks And Firms, Mark Jenkins, Stephen Tallman

Management Faculty Publications

We consider the dynamics of knowledge-based sources of advantage as they move between geographical locations and multinational and other firm level networks using the specialist context of Formula 1 motor over a fifty nine year period. We suggest that shifts in competitive advantage are underpinned by the movement of both architectural and component knowledge at both the firm and cluster level, and in particular we suggest that isolated firms can both benefit from and add to cluster level knowledge. We conclude by suggesting ways in which MNEs can adapt their approach to both location and knowledge development in order to …

From Federations To Global Factories: Assessing The Contribution Of The Subsidiary Middle Manager In Today’S Mne, Donal O'Brien, Pamela Sharkey Scott, Pat Gibbons

Articles

The evolution of MNEs (Multinational Enterprises) from rigid and hierarchical structures to more distributed authority and autonomy led to the theoretical justification for conceptualising them as a federative rather than unitary organisations (Ghoshal and Bartlett, 1990). Fundamental to the Federative MNE is the suggestion that subsidiary units, through their own actions, can modify the power base and influence MNE strategy ‘from below’ (Andersson et al., 2007). Considerable research highlights the potential of subsidiary units for knowledge creation and initiative (Birkinshaw, 1997, Rugman and Verbeke, 2001, Williams, 2009), but to date it has failed to confirm that MNEs actually operate as …

Capm In Up And Down Markets: Evidence From Six European Emerging Markets, Jianhua Zhang, Clas Wihlborg

Business Faculty Articles and Research

The pricing of equity in six European emerging capital markets is analysed using both the conventional CAPM and a ‘conditional’ CAPM wherein up and down markets are separated. International influences on the stock markets are also analysed. The empirical evidence from a sample of 1,131 firms from the six markets indicates that there exists a significant relationship between beta and returns when up and down markets are separated. The international CAPM performs well in some markets that have become increasingly integrated with the world market. The general implication of the analysis is that beta can be a useful risk-measure for …

How Does Foreign Direct Investment Affect Growth In Developing Countries? An Empirical Investigation, E. M. Ekanayake, John R. Ledgerwood

Publications

This paper analyzes the effects of foreign direct investment on the economic growth of developing countries. The study uses annual data on a group of 85 developing countries covering Asia, Africa, and Latin America and the Caribbean for the period 1980-2007. We explore the hypothesis that foreign direct investment can promote growth in developing countries. We test this hypothesis using panel data series for foreign direct investment, while accounting for regional differences in Asian, African, Latin American, and the Caribbean countries as well as the differences in income levels. While the findings of previous studies are generally mixed, our results …

The Real Exchange Rate Volatility And U.S. Exports: An Empirical Investigation, E. M. Ekanayake, John R. Ledgerwood, Sabrina D'Souza

Publications

This paper investigates effects of exchange rate volatility on U.S. exports, using disaggregated sectoral data on U.S. exports to its major trading partners. In this paper, we use a generalized ARCH-type model (GARCH) to generate a measure of exchange rate volatility which is then tested in a model of U.S. exports. The analysis uses monthly trade data for the period from January 1990 through December 2007. Testing sectoral trade data allows us to detect whether the direction or magnitude of the impact of volatility differs depending on the types of goods that are traded. The results obtained in this paper …

Can We Shop Sustainably?, Stacy D. Vandeveer

The University Dialogue

No abstract provided.

Globalization Of Entrepreneurship: Policy Considerations For Sme Development In Indonesia, Balbir B. Bhasin, Sivakumar Venkataramany

WCBT Faculty Publications

SMEs are of overwhelming importance to the young and growing economies of most Southeast Asian nations, including Indonesia. The country is a vast polyglot archipelago, struggling with poverty and unemployment, poor and inadequate infrastructure, rampant corruption, insufficient capital, and unequal distribution of resources. It has recently experienced fundamental changes in political governance, regional empowerment, and economic structures as a result of the Asian Financial Crisis, coupled with widespread social unrest which resulted in the ouster of the authoritarian regime of President Suharto. This paper evaluates the existing private sector development policy in Indonesia, which has been found to be both …

The Extreme Risk Problem For Monetary Policies Of The Euro-Candidates Countries, Hubert Gabrisch, Lucjan T. Orlowski

WCBT Working Papers

We argue that monetary policies in euro-candidate countries should also aim at mitigating excessive instability of the key target and instrument variables of monetary policy during turbulent market periods. Our empirical tests show a significant degree of leptokurtosis, thus prevalence of tail-risks, in the conditional volatility series of such variables in the euro-candidate countries. Their central banks will be well-advised to use both standard and unorthodox (discretionary) tools of monetary policy to mitigate such extreme risks while steering their economies out of the crisis and through the euroconvergence process. Such policies provide flexibility that is not embedded in the Taylor-type …