Business Commons^™

Is More Always Better? Risk Trade-Offs Among Internationalizing New Ventures, Stephanie Fernhaber, Patricia Mcdougall-Covin

Stephanie A. Fernhaber

Purpose

Design/methodology/approach

An Overview Of The Low-Cost Carrier Model In The Russian Market, Tamilla Curtis, Dawna Rhoades

Dr. Tamilla Curtis

This study provides an overview of the low-cost carrier (LCC) model in the Russian market. The LCC model seeks to achieve a competitive advantage through the reduction of operating costs, below the traditional airline model. Since Russia is an emerging and developing economy, airlines face a high level of uncertainty. Despite the fact that the Russian aviation market is dominated by a few large carriers, Russian lowcost airlines such as SkyExpress and Avianova have been growing rapidly since starting their operations. While Russian LCCs follow the traditional LCC model, some differences are apparent as a result of the specifics of …

Macroconstants Of Development: A New Benchmark For The Strategic Development Of Advanced Countries And Firms, Andrey Bystrov, Vyacheslav Yusim, Tamilla Curtis

Dr. Tamilla Curtis

This research proposed a new indicator of countries’ development called “macroconstants of development”. The literature review indicates that the concept of "macroconstants of development" is not used at the moment in neither the theory nor the practice of industrial policy. Research of longitudinal data of total GDP, GDP per capita and their derivatives for most countries of the world was conducted. An analysis of statistical information has been done by employing econometric analyses.

Based on the analysis of the statistical data, which characterizes the development of large, technologically advanced countries in ordinary conditions, it was identified that the average acceleration …

Regional Jet Aircraft Competitiveness: Challenges And Opportunities, Tamilla Curtis, Dawna Rhoades

Dr. Tamilla Curtis

The Purpose of the Study is to investigate the current trends in the aviation industry in regards to regional jets and to examine country-level factors that can potentially explain the number of Embraer and Bombardier regional jet deliveries. Possible factors include GDP, price of crude oil, prior aircraft deliveries and the land area of receiving RJ countries.

World Champions In Hospital Privatisation: The Effects Of Neoliberal Reform On German Employees And Patients, Nils Böhlke, Ian Greer, Thorsten Schulten

Ian Greer

[Excerpt] Over the past decade, German hospitals have been privatised at a rate not seen in any other country. In response to massive public-sector debt and the resulting investment backlog, many state and local governments have been privatising hospitals. The most common arguments for privatisation are repeated in a recent study commissioned by the association of private hospital owners (Bundesverband Deutscher Privatkliniken - BDPK) namely that private hospitals manage in a more efficient manner and are economically more successful (Augurzky, Beivers et al., 2009). Indeed, in some cases, private for-profit hospital companies have invested generously and turned inefficient public hospitals …

The Effects Of Within-Country Linguistic And Religious Diversity On Foreign Acquisitions, Douglas Dow, Ilya Cuypers, Gokhan Ertug

Douglas Dow

Issues In Ecolodge Management In Latin America, Gregory Osland, Robert Mackoy

Robert Mackoy

No abstract provided.

Confirmation Bias In Individual-Level Perceptions Of Distance: An Experimental Investigation, Daniel Baack, Douglas Dow, Ronaldo Parente, Don Bacon

Douglas Dow

In this article we draw from social cognition theory to explore the influence of confirmation bias on perceptions of psychic distance. Despite the prominence of psychic distance, and other forms of distance, as potential predictor variables in international business research, very little work has been done exploring the factors and processes that shape a decision maker's perceptions of distance. We argue in this paper that social cognition theory can help fill that void. Specifically, we hypothesize that confirmation bias may influence managers’ processing of information concerning differences between cultures. Such a bias may cause managers to attend more to information …

From Chinden To Chongqing: How Can Idaho Win The Minds And Wallets Of China?, Jack Marr

Jack Marr

When The Wind Blows In Beijing, We Feel It In Boise, Jack Marr

Jack Marr

The Decline Of Global Market Leaders, Xiaowen Tian, John Slocum

Xiaowen Tian

Integrating capability-based and institution-based views in a multilevel framework, we argue that managerial capability to acquire loans to finance business expansion has an inverted U-shaped relationship with global market leadership. The negative effect on global market leadership of excessive loan-acquiring capability is amplified under business-friendly market institutions that ease access to credit. Managerial capability to utilize resources productively positively moderates the relationship between loan-acquiring capability and global market leadership. The role of resource-utilizing capability is attenuated under business-friendly market institutions that facilitate overinvestment. The study helps explain recent decline of global market leaders in advanced market economies.

What Determines Mnc Subsidiary Performance? Evidence From China, Xiaowen Tian, John Slocum

Xiaowen Tian

The paper challenges the view that MNC dictates a subsidiary’s business strategy and operations in accordance with the integration-responsiveness (IR) framework. The paper integrates the IR framework with contingency theory to argue that a subsidiary needs discretion to craft its own effective business strategy in light of the environmental exigencies facing the subsidiary in the host country. It may do so at variance with the MNC’s strategy. Evidence from China supports that subsidiary managers should take strategic initiatives in response to specific host country environment.

Air Service Liberalization: China And Its Top Destinations, Tamilla Curtis, John Ledgerwood, Blaise Waguespack

Dr. Tamilla Curtis

Income Volatility Of Indonesian Banks After The Asian Financial Crisis, Barry Williams

Barry Williams

This paper considers the factors that determine Indonesian bank risk both before and after the Asian Financial Crisis (AFC). In the pre-AFC period, bank capital holdings are positively associated with bank revenue risk, which is attributed to a combination of regulatory laxity as well as laxity of enforcement. In the post-AFC period, capital is found to reduce bank risk in a non-linear manner. Franchise value is associated with lower bank risk, but in a non-linear manner; low levels of franchise value are associated with increased bank risk, while higher levels of franchise value result in lower bank risk. It is …

A Strategic Management Approach To Guanxi In China, Xiaowen Tian, Moxi Song, Ran Tian

Xiaowen Tian

This article adopts a strategic management approach to addressing the issue of how to achieve both corporate profitability and corporate social responsibility in dealing with Guanxi in the Chinese business context. It argues that environment scanning, strategy formulation, strategy implementation and strategy evaluation and control should be the key components of strategic management of Guanxi. The article proposes a practical framework for managing Guanxi strategically in the emerging China market, and illustrates the framework with cases in the real world.

International Business Research Amid Accelerated Globalisation: An Editorial, Xiaowen Tian

Xiaowen Tian

Extract

The landscape of global business has changed dramatically since the 1980’s and the market competition has now become truly global with the rise of emerging market countries such as Brazil, Russia, India and China. Competing in the rapidly changing global business environment, companies face new challenges and have to deal with a wide range of emerging issues that they either have not experienced or have not paid attention to before.

The special issue of the Journal for International Business and Entrepreneurship Development includes six papers that discuss the issues faced by companies in accelerated globalisation today. In the editorial, …

Socially Responsible Foreign Direct Investment: A Challenge To Tncs In Emerging Markets, Xiaowen Tian, Moxi Song, Ran Tian

Xiaowen Tian

A widening gap between the rich and the poor is found in most, if not all, emerging market countries that have recently opened up to FDI and is threatening the sustainability of economic progress in these countries. The study finds strong evidence that FDI contributes to the widening gap between rich and poor regions through negative productivity spillovers in the largest emerging market of China, and provides some theoretical explanations. The study discusses implications of the findings for transnational corporations in making socially responsible investment and for emerging market countries in attracting foreign investors to poor regions.

Post-Keynesian Money Endogeneity Evidence In G-7 Economics, Zatul Badarudin, Mohamed Ariff, Ahmed Khalid

Ahmed Khalid

This study is a methodological evaluation of studies on importance and performance measurement, and importance–performance analysis (IPA) which has gained widespread acceptance in the hospitality and tourism research. A synthesis of IPA literature on conceptual and measurement issues is presented with a view to identifying and mitigating potential validity concerns.

Trade Liberalisation And Growth: A Threshold Expectation, Rod Falvey, Neil Foster-Mcgregor, Ahmed Khalid

Ahmed Khalid

Openness and trade liberalisation variables are consistently estimated to have significant positive coefficients in panel growth regressions. Many arguments have been advanced as to why and how more open or liberalised economies might grow faster, but the specific channels this process uses have begun to be investigated only recently. We continue these efforts by including a variable identifying the date of trade liberalisation in a system of equations that captures the determinants of growth in per capita income. Four ‘channels’ are considered: capital formation, the share of government, the economy’s openness to trade and its price distortions. We include the …

Quantifying Foreign Direct Investment Productivity Spillovers In China: A Computable General Equilibrium Model., Ziliang Deng, Rod Falvey, Adam Blake

Rodney Falvey

For the purposes of this study, we will construct a static monopolisticallycompetitive computable general equilibrium model to quantify the endogenous productivity spillovers from foreign and domestic firms, using the Chinese economy as a case study. Our simulation results indicate: (i) that the net spillover effects are positive in terms of national total output, GDP and welfare; (ii) that both state-owned and privately-owned firms benefit, but that private firms benefit more; (iii) that industries with large volumes of foreign direct investment (FDI) do not necessarily observe the largest spillover effects; and (iv) that the spillover effects become more prominent when the …

Trade Liberalisation And Growth: A Threshold Expectation, Rod Falvey, Neil Foster-Mcgregor, Ahmed Khalid

Rodney Falvey

Openness and trade liberalisation variables are consistently estimated to have significant positive coefficients in panel growth regressions. Many arguments have been advanced as to why and how more open or liberalised economies might grow faster, but the specific channels this process uses have begun to be investigated only recently. We continue these efforts by including a variable identifying the date of trade liberalisation in a system of equations that captures the determinants of growth in per capita income. Four ‘channels’ are considered: capital formation, the share of government, the economy’s openness to trade and its price distortions. We include the …

Perceptions Versus National-Level Differences: A Mediating Model Of Psychic Distance, Douglas Dow, Lars Håkanson, Bjorn Ambos

Douglas Dow

No abstract provided.

Reconciling Differing Models Of The Business: A Key Step In The Transfer Of Production Technology Into China's Export-Led Economy, David Mcarthur, Ronald Schill

David N McArthur

No abstract provided.

Corruption, Democracy And Asia-Pacific Countries, Neil Campbell, Shrabani Saha

Neil Campbell

This paper argues that the relationship between democracy and corruption is nonmonotonic. When a country shifts from autocratic rule to highly imperfect democracy (an ‘electoral democracy’) it is frequently perceived that the level of corruption increases. Conversely, when the democracy level is already relatively high (approaching ‘mature democracy’) an increase in the level of democracy is typically expected to decrease the level of corruption. To assist with our discussion of these issues, before going on to the empirical part of the paper, we look specifically at the case of South Korea to illustrate how corruption responded to an increasing level …

Firm Culture And Performance: Intensity's Effects And Limits., Patrick Murphy, Robert Cooke, Yvette Lopez

Patrick J. Murphy

No abstract provided.

Trading Market Access For Technology? Tax Incentives, Foreign Direct Investment And Productivity Spillovers In China, Ziliang Deng, Rod Falvey, Adam Blake

Rodney Falvey

Tax incentives have been adopted worldwide to attract foreign direct investment (FDI) and its superior technology. However whether tax incentives can promote FDI productivity spillovers remains unknown. We develop a static computable general equilibrium (CGE) model of China to explore it. The results suggest that abolishing differential tax system leads to weaker FDI spillovers in the short term. Nonetheless, the reform lifts up the productivity entry threshold for foreign firms, and the surviving domestic firms become more productive and thus more capable of absorbing productivity spillover.

The Mercantilist Motive For Territorial War, Jonathan Ping

Jonathan H. Ping

No abstract provided.

Global Culture Concerns, Korcel M. Price

Korcel M Price

The following proposal seeks to change hiring, promoting, and firing practices among global and trans-national companies. The changes are intended to fortify the organization through better management, a better employee contract, and by moving closer to a learning organization.

At the heart of the proposal is the desire to move hiring, promoting, and firing practices to an external or internal third party, as means of creating a global culture that consistently applies the values of supra system’s organization.

Pitting Real Options Theory Against Risk Diversification Theory: International Diversification And Joint Ownership Control In Economic Crisis, Chris Chung, Seung-Hyun Lee, Paul Beamish, Colette Southam, Daeil Nam

Colette Southam

This study examines how MNE divestment decisions differ according to real options vs. risk diversification perspectives. We develop competing hypotheses in relation to international diversification and joint ownership control. Empirical results give consistent support to the real options perspective. We find that large MNEs with greater international diversification are less likely to divest their subsidiaries during times of economic crisis. The negative effect of joint ownership control is however manifested in both crisis-stricken and non-crisis country subsidiaries as well as in their interaction effect.

The Theory Of Trade Policy And Reform, Rodney Falvey, Udo Kreickemeier

Rodney Falvey

Extract:
Historically, trade taxes have been an important source of government revenue in subsistence-oriented economies with large informal sectors. As countries developed and economic activity became more market-oriented, governments sourced revenue frorn broader, more efficient tax bases. But trade taxes remained, with protection of domestic import-competing activity, rather than revenue, becoming their primary motivation. This shift of motivation also facilitated the substitution of alternative policies, quantitative restrictions for example, which would limit import competition without necessarily generating revenue.