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Full-Text Articles in Business

China Inc. And The World's Response, Shaomin Li Jan 2022

China Inc. And The World's Response, Shaomin Li

Management Faculty Publications

This article is based on the author’s new book, China, Inc.: How the Chinese Communist Party Transformed China into a Giant Corporation (Cambridge University Press, 2022). The author argues that leveraging its absolute power, low human rights advantage, and tolerance by other countries, the Chinese Communist Party has transformed China into a giant corporation. Living, working, and investing are not rights but privileges granted by the party. The party is the management of China, Inc., with the politburo standing committee as the board of directors and the party’s general secretary as the CEO. The various ministries are the functional departments …


The Liability Of Disruption, Valentina Marano, Stephen Tallman, Hildy J. Teegan Feb 2020

The Liability Of Disruption, Valentina Marano, Stephen Tallman, Hildy J. Teegan

Management Faculty Publications

Research summary. We study the internationalization-related legitimacy challenges of firms with disruptive business models by using a case comparison of leading sharing economy companies Airbnb and Uber. We show that they are insulated from many traditional legitimacy challenges to multinationals entering host markets, but exposed to others that have not been noted previously. Specifically, we identify a novel market-entry legitimacy challenge, ‘liability of disruption,’ which manifests as regulatory, incumbent business and societal pushback against firms with disruptive business models. After presenting our cross-case analysis, we theorize about the nature and impacts of these three distinct but interconnected forms of host …


Human Capital Is Not Enough: How Offshore Bpo Professionals Use Social Support To Deal With Strenuous Work Conditions, Jonathan W. Whitaker, Violet Ho, Sunil Mithas, Dongwon Lee Jan 2020

Human Capital Is Not Enough: How Offshore Bpo Professionals Use Social Support To Deal With Strenuous Work Conditions, Jonathan W. Whitaker, Violet Ho, Sunil Mithas, Dongwon Lee

Management Faculty Publications

The past decade has witnessed explosive growth in the segment of information technology (IT) professionals who work in the offshore business process outsourcing (BPO) industry. BPO positions are highly regimented and standardized with coercive and normative controls to deter employees from deviating from prescribed work procedures and exercising independent judgment. Coping with these challenges requires a different set of skills than human capital and technical competencies that are discussed in most prior information systems (IS) research. This paper develops theory on the role of social support in employee compensation, and tests the theory using a unique data set of 8,000+ …


Digital Transformation Of Global Business Processes: The Role Of Dual Embeddedness, Peter Ekman, Peter Thilenius, Steven M. Thompson, Jonathan W. Whitaker Jan 2020

Digital Transformation Of Global Business Processes: The Role Of Dual Embeddedness, Peter Ekman, Peter Thilenius, Steven M. Thompson, Jonathan W. Whitaker

Management Faculty Publications

While much existing research on MNC digital transformation has followed a linear design and implementation logic using cross-sectional data, the multiple and divergent needs of headquarters (HQ) and subsidiaries suggest that MNC digital transformation actually involves a more iterative journey. In this paper, we apply the theoretical perspective of embeddedness to better define the complexities of MNC digital transformation, and identify how HQ and subsidiaries can navigate the complexities. This paper presents a longitudinal multi-case study of five Forbes Global 2000 firms that are HQ in Europe with large subsidiaries in the U.S. We find that the process of digital …


The Role Of The Chinese Communist Party In The Covid-19 Crisis, Matthew Farrell Jan 2020

The Role Of The Chinese Communist Party In The Covid-19 Crisis, Matthew Farrell

Management Faculty Publications

The Chinese Communist Party (CCP) has received plaudits from international press and organizations for their handling of the COVID-19 crisis, with some describing it as a win for China in terms of propaganda. In this essay, I explore an alternative view: That the CCP is responsible for the origin and extent of the pandemic, and that much of their perceived altruism is carefully disguised opportunism and propaganda. Facts are drawn from scholarly work and the popular press to support my arguments. This essay carries strong implications for interpretation of recent events.


Greenfield Or M&A? An Institutional And Learning Perspective On The Establishment Mode Choice Of Chinese Outward Investments, Ilan Alon, Stefano Elia, Shaomin Li Jan 2020

Greenfield Or M&A? An Institutional And Learning Perspective On The Establishment Mode Choice Of Chinese Outward Investments, Ilan Alon, Stefano Elia, Shaomin Li

Management Faculty Publications

We develop and test a model of Chinese greenfield investments using institutional and learning theories. Both the host country institutional context and the firm's international characteristics affect the establishment mode. Using 152 Chinese emerging market multinationals (EMNEs) with 401 subsidiaries distributed in 26 countries from 2003 to 2013, we build a database of 284 pairs of host country/Chinese firms to test two hypotheses. We find that, first, governance environment affects the establishment mode: greenfield investments are preferred over acquisitions in relation-based host markets, and M&As are preferred in rule-based countries. Second, the depth of Chinese EMNEs' international experience (i.e. the …


The Impact Of Internationalized Education On Student Competency And Innovation In The Workplace, Abeni El-Amin Ph.D., Cai Yuzhou Jan 2020

The Impact Of Internationalized Education On Student Competency And Innovation In The Workplace, Abeni El-Amin Ph.D., Cai Yuzhou

Management Faculty Publications

Incorporating innovation in higher education curriculum significantly improves student's professional competencies in the workplace. For instance, innovation theory is developed with the purpose of improving management practices. Innovation learning is a practical teaching and learning methodology that supports student populations (Carracedo et al., 2018). Innovative instructional strategies, particularly those with a creative element, helps students to connect theory to practice. Students also develop conceptual and hypothetical skills that professionals need in the workplace. Innovation education trains students on the concept of system-based relationships in which individuals can profit from their contributions when their innovations make it to the marketplace.


United Or Divided? Antecedents Of Board Cohesiveness In International Joint Ventures, Rene Olie, Elko Klijn, Hugo V. Leenders Jan 2020

United Or Divided? Antecedents Of Board Cohesiveness In International Joint Ventures, Rene Olie, Elko Klijn, Hugo V. Leenders

Management Faculty Publications

We combine board process research with the literature on international joint ventures (IJVs) by investigating the antecedents of cohesiveness of IJV boards of directors. Even though that corporate governance scholars have frequently emphasized the crucial role of cohesiveness for board effectiveness, cohesiveness has received limited research attention. We investigate the determinants of board cohesiveness by specifically focusing on an understudied organizational form, namely the IJV. IJVs are formed by two or more independent parent organizations originating from geographically dispersed home countries with disparate cultural backgrounds. We argue that the inherent features related to the international and partner-specific context of these …


The Relocation Of Supply Chains From China And The Impact On The Chinese Economy, Shaomin Li Dec 2019

The Relocation Of Supply Chains From China And The Impact On The Chinese Economy, Shaomin Li

Management Faculty Publications

The U.S.-China trade war has had a huge impact on the supply chains in China, accelerating their relocation that had already begun due to rising taxes, costs of labor, and other input factors. The exodus reported in the past year is only the tip of the iceberg, as more serious effects will not become apparent immediately. A major effect of the relocation on China is job losses, which may reach as many as 5 million in the coming years. Given the unlikeliness of a quick end to the trade war and the reluctance of the Chinese Communist Party (CCP) to …


China's Intellectual Property Rights Provocation: A Political Economy View, Shaomin Li Jan 2019

China's Intellectual Property Rights Provocation: A Political Economy View, Shaomin Li

Management Faculty Publications

It is well recognized that intellectual property rights (IPR) violations are at the heart of the economic conflict with China. Little agreement, however, exists about the origin and solutions for this provocation. Broadly speaking, two prescriptions have been proposed: the natural evolutionary and the rule of law views. While both have merits and add to our understanding, they do not go far enough to address the more fundamental IPR policy issue: China has benefited from a rule of law overseas and a rule through law at home, manufacturing unfair advantage to its firms, many of which are owned and/or influenced …


Business Models In Global Competition, Stephen Tallman, Yadong Luo, Peter J. Buckley Jan 2018

Business Models In Global Competition, Stephen Tallman, Yadong Luo, Peter J. Buckley

Management Faculty Publications

Multinational enterprises create and capture value through appropriate business models that fit both distinctive capabilities and dynamic markets. The key elements of a global business model include propositions for adding customer value and capturing a share of that value, methods to control, deploy and utilize critical resources, and integrated processes that deliver value to target global customers. These factors explain the diversity in business models, with international competition in geographically dispersed markets further fortifying this diversity and complexity. This paper demonstrates ways forward in theorizing about business models, applying these models in the global context, discussing capabilities and strategies necessary …


How Client Capabilities, Vendor Configuration And Location Impact Bpo Outcomes, Jonathan W. Whitaker, Sanjeev Kumar, M. S. Krishnan Jan 2018

How Client Capabilities, Vendor Configuration And Location Impact Bpo Outcomes, Jonathan W. Whitaker, Sanjeev Kumar, M. S. Krishnan

Management Faculty Publications

Despite the increasing use of onshore and offshore business process outsourcing (BPO), a comprehensive literature review [38] finds that there has been limited empirical research on BPO outcomes. This article responds to the call for research by developing and testing a conceptual model for BPO outcomes using data from 50 firms publicly traded in the U.S., including 38 firms in the Forbes Global 2000. We find that client firm capabilities, vendor configuration, and country location lead to interesting tradeoffs in the BPO quality, cost, and time outcomes. For example, while multi-sourcing offers advantages such as risk mitigation, client firms encounter …


How Multinational Corporations Use Information Technology To Manage Global Operations, Jonathan W. Whitaker, Peter Ekman, Steven M. Thompson Jan 2017

How Multinational Corporations Use Information Technology To Manage Global Operations, Jonathan W. Whitaker, Peter Ekman, Steven M. Thompson

Management Faculty Publications

Despite a generally-acknowledged importance of information technology (IT) in enabling global strategy and a broad understanding of the manner in which IT enhances coordination and reduces cost, few studies have focused precisely on how multinational corporations (MNCs) use IT to facilitate globalization. To address this gap in the literature, we conduct a case study across four large MNCs, and use primary data to develop theoretical propositions on the characteristics of products, processes and customers that impact the ways in which MNCs use IT to manage their global operations.


Introduction To The Special Issue: Towards A Theoretical Understanding Of Innovation And Entrepreneurship In India, Sanjay Jain, Anil Nair, David Ahlstrom Jan 2015

Introduction To The Special Issue: Towards A Theoretical Understanding Of Innovation And Entrepreneurship In India, Sanjay Jain, Anil Nair, David Ahlstrom

Management Faculty Publications

Over the past few decades, India has become one of the world’s most vibrant economies (Chari & Banalieva, 2015). While the first forty years after India’s independence in 1947 was characterized by a sluggish annual growth rate (of approximately 3%), economic reforms initiated in 1991 have resulted in the GDP growing at a rate of around 6.8% in the last quarter century (Chari & Banalieva, 2015;McCloskey, 2010). Conversely, while the pre-reform institutional environment generally underemphasized and undermined entrepreneurial and innovative activity (Bardhan, 1994; Baumol, Litan, & Schramm, 2009;Sivaraman, 1991), the post-reform period has been characterized by a much wider acceptance …


Industry-Specific Human Capital And Wages: Evidence From The Business Process Outsourcing Industry, Keongtae Kim, Sunil Mithas, Jonathan W. Whitaker, Prasanto K. Roy Jan 2014

Industry-Specific Human Capital And Wages: Evidence From The Business Process Outsourcing Industry, Keongtae Kim, Sunil Mithas, Jonathan W. Whitaker, Prasanto K. Roy

Management Faculty Publications

Human capital is becoming more critical as the global economy becomes more information intensive and service intensive. While IS researchers have studied some dimensions of human capital, the role of industry-specific human capital has remained understudied. The IT-enabled business process outsourcing (BPO) industry provides an ideal setting to study returns to human capital, because jobs in this industry are standardized and many professionals in this new industry have come from other industries. We build on IS and Economics literature to theorize returns to human capital in the BPO industry, and we test the theory using data for over 2,500 BPO …


The Search For Externally Sourced Knowledge: Clusters And Alliances, Stephen Tallman Jan 2013

The Search For Externally Sourced Knowledge: Clusters And Alliances, Stephen Tallman

Management Faculty Publications

External sources of knowledge have become more important to firms as they have dispersed their value-adding operations around the globe and outsourced them to alliances. The global network firm has access to a rich store of external knowledge – but what do we know about accessing this treasure trove? The purpose of this paper is to summarize key ideas behind the research on alliance networks with clusters to better understand when, how, and why firms would use one or the other, or both, approaches to accessing external sources of knowledge, and to suggest new directions for both practice and scholarship.


Organization Design For Foreign Subsidiaries Of Multinational Enterprises: A Contingency Perspective, William Q. Judge, Shaomin Li Feb 2012

Organization Design For Foreign Subsidiaries Of Multinational Enterprises: A Contingency Perspective, William Q. Judge, Shaomin Li

Management Faculty Publications

There has been considerable research suggesting ways to design foreign subsidiaries for multinational enterprises. Unfortunately, much of this research is fragmented and some is even contradictory. This study seeks to comprehensively integrate this research stream by distilling the extant literature around two key contingency factors: (1) governance environment of the host country, and (2) the strategic role of the foreign subsidiary. Specifically, we distilled the multi-national organizational design literature using the institutional economics logic coupled with Galbraith’s classic organizational design framework. This approach yielded twelve new theoretical propositions that better integrates previous theory and research around the four dimensions of …


Identifying Resources For Going Global, Stephen Tallman May 2011

Identifying Resources For Going Global, Stephen Tallman

Management Faculty Publications

Business firms have been described as bundles of resources and capabilities (or assets and skills, or a variety of other terms indicating a combination of hard, or at least clearly identifiable, components and soft, or at least somewhat undefined, abilities and processes), bound together by ownership, contracts, common management, organizational culture, identity, and a variety of other processes. This chapter focuses on resources and capabilities, and considers how such component parts can enhance or discourage globalization, and how the firm's stock of resources and capabilities is altered by processes of globalization.


The Strategic Assembly Of Global Firms: A Micro-Structural Analysis Of Local Learning And Global Adaptation, Mitchell P. Koza, Stephen Tallman, Aylin Ataay May 2011

The Strategic Assembly Of Global Firms: A Micro-Structural Analysis Of Local Learning And Global Adaptation, Mitchell P. Koza, Stephen Tallman, Aylin Ataay

Management Faculty Publications

Strategic Assembly - the comprehensive and coordinated use of internal development, mergers, acquisitions, joint ventures, and alliances - is a novel approach to the construction and management of global firms. This paper describes the role and characteristics of strategic assembly in the construction and management of the Global Multi-Business Firm, an emerging form of global organization. We present a study of Group Renault and its relationship with two key players in the lucrative and emerging market for autos in Turkey, emphasizing the coevolutionary processes through which local players enter and dominate a local market and the global parent, utilizing local …


Organizational Learning And Capabilities For Onshore And Offshore Business Process Outsourcing, Jonathan W. Whitaker, Sunil Mithas, M. S. Krishnan Jan 2011

Organizational Learning And Capabilities For Onshore And Offshore Business Process Outsourcing, Jonathan W. Whitaker, Sunil Mithas, M. S. Krishnan

Management Faculty Publications

This paper identifies and analyzes firm-level characteristics that facilitate onshore and offshore business process outsourcing (BPO). We use organizational learning and capabilities to develop a conceptual model. We test the conceptual model with archival data on a broad cross section of U. S. firms. Our empirical findings indicate that firms with experience in onshore information technology (IT) outsourcing and capabilities related to IT coordination applications and process codification are more likely to engage in BPO, and firms with experience in internationalization are more likely to engage in offshore BPO. We also find that IT coordination applications have a greater impact …


Offshoring, Outsourcing, And Strategy In The Global Firm, Stephen Tallman Jan 2011

Offshoring, Outsourcing, And Strategy In The Global Firm, Stephen Tallman

Management Faculty Publications

Offshore outsourcing of many of the activities of the firm has become a major issue of concern in welfare economics, politics, business management, and international business scholarship. From both practical and scholarly perspectives, though, we must recognize that this is not a new phenomenon, and that neither outsourcing nor offshoring is necessarily the problem that has been represented in the popular and scholarly press (Contractor et al., 2010: Engardio, 2006). The production of goods in locations other than those in which they are sold has been an established strategy of multinational firms for decades--as has the subset of situations in …


Globalization Of Chinese Firms: Theoretical Universalism Or Particularism, Ilan Alon, John Child, Shaomin Li, John R. Mcintyre Jan 2011

Globalization Of Chinese Firms: Theoretical Universalism Or Particularism, Ilan Alon, John Child, Shaomin Li, John R. Mcintyre

Management Faculty Publications

Research on the globalization of Chinese and other emerging markets' companies has only just begun and is on the verge of taking off. As it does so, additional thought should be given to the ontological and epistemological underpinnings of the theories attempting to capture the phenomenon. Should Western-centric theory prevail? Be adapted? Or abandoned in favour of new indigenous approaches to theorizing, based on context? Finally, should the context itself be the basis of theorizing? While the debate will not stop here, the future may hold a multiplicity of approaches, both indigenous and internationalized, for explaining emerging markets' contexts and, …


What Level Of Analysis Is Most Salient For A Global Theory Of Corporate Governance?, William Q. Judge Jan 2011

What Level Of Analysis Is Most Salient For A Global Theory Of Corporate Governance?, William Q. Judge

Management Faculty Publications

W e have five rigorous and relevant new comparative corporate governance studies in this issue. Each of these studies contributes to our journal’s overarching mission of moving toward a rigorous and relevant theory of corporate governance that can be meaningfully applied throughout the world. In this editorial, I would like to focus on the multiple levels of analysis involved with arriving at a global theory.


My Life As An Art Soldier In Mao's China: Art And Politics, Shaomin Li Jan 2011

My Life As An Art Soldier In Mao's China: Art And Politics, Shaomin Li

Management Faculty Publications

The author narrates how in Mao's China his personal experience took unexpected turns when China dramatically transformed politically, economically, and culturally, and how in reacting to these overwhelming changes he evolved from the role of artist to student activist, businessman, political prisoner and academic. The article focuses on the relationship between art and politics in Mao's China and how the two evolved into what the author characterizes as "market communism" in today’s China.


Global Diffusion Of The Internet Xvi: The Role Of Economic Development And Firm Internationalization In Internet Business Practices, Jonathan W. Whitaker, Nigel Melville, Robert Plice, Jason Dedrick Nov 2010

Global Diffusion Of The Internet Xvi: The Role Of Economic Development And Firm Internationalization In Internet Business Practices, Jonathan W. Whitaker, Nigel Melville, Robert Plice, Jason Dedrick

Management Faculty Publications

Firms from emerging economies are rapidly becoming formidable competitors to established industry leaders from developed economies. Aside from anecdotal reports, there is little scholarly evidence concerning the operational details of how emerging economy firms are becoming competitive with developed economy firms. This article addresses the gap by building on the International Business, Strategy and Information Systems literature, and through an empirical analysis of original survey data for 468 firms across ten countries. We develop three primary empirical findings. First, despite the differences between emerging economy firms and developed economy firms, we find that emerging economy/high internationalization firms use marketing- and …


Utilisation Of Foreign Trade Zones In The Global Supply Chain: An Exploratory Study, Hokey Min, Thomas E. Lambert Jan 2010

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 …


The Shifting Geography Of Competitive Advantage: Clusters, Networks And Firms, Mark Jenkins, Stephen Tallman Jan 2010

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 …


Asian Corporate Governance Or Corporate Governance In Asia?, Shaomin Li, Anil Nair Jan 2009

Asian Corporate Governance Or Corporate Governance In Asia?, Shaomin Li, Anil Nair

Management Faculty Publications

Corporate governance has become an important issue for Chinese and Indian firms as they increasingly interact with regulators and investors from developed markets. For instance, tapping into global capital markets to raise funds to finance their domestic and international growth requires firms from China and India to demonstrate strong corporate governance credentials, so that investors do not discount their stock (LaPorta, Lopez-de-Silanes, Shleifer, & Vishny, 2000). The swift action of Chinese and Indian authorities in response to recent corporate scandals – such as the one at Satyam Computers – reveals that even governments in emerging countries such as China and …


Hybrid Data Envelopment Analysis And Simulation Methodology For Measuring Capacity Utilisation And Throughput Efficiency Of Container Terminals, Hokey Min, Byung-In Park Jan 2008

Hybrid Data Envelopment Analysis And Simulation Methodology For Measuring Capacity Utilisation And Throughput Efficiency Of Container Terminals, Hokey Min, Byung-In Park

Management Faculty Publications

As growth in international trade slowed down in the recent years, inter-modal traffic volume declined and subsequently led to reduction in demand for container services. The reduced demand in container services and the ongoing glut of container port facilities throughout the world have sparked fierce competition among international container terminals. In an effort to help the port authorities to develop a winning strategy in the increasingly competitive container market, this paper develops a meaningful set of benchmarks that will set the standard for best practices. In particular, we propose a hybrid Data Envelopment Analysis (DEA)/simulation model that is designed to …


Is The World Flat Or Spiky? Information Intensity, Skills, And Global Service Disaggregation, Sunil Mithas, Jonathan W. Whitaker Sep 2007

Is The World Flat Or Spiky? Information Intensity, Skills, And Global Service Disaggregation, Sunil Mithas, Jonathan W. Whitaker

Management Faculty Publications

Which service occupations are the most susceptible to global disaggregation? What are the factors and mechanisms that make service occupations amenable to global disaggregation? This research addresses these questions by building on previous work by Apte and Mason (1995) and Rai, Patnayakuni, and Seth (2006) that focuses on the unbundling of information and physical flows. We propose a theory of service disaggregation and argue that high information intensity makes an occupation more amenable for disaggregation because the activities in such occupations can be codified, standardized, and modularized. We empirically validate our theoretical model using data on more than 300 service …