Business Commons^™

Is China’S Outward Investment In Oil A Global Security Concern?, Ilan Alon, Aleh Cherp

Faculty Publications

The dramatic increase in investment by Chinese SOEs in overseas oil assets is primarily driven by energy security concerns. Whether such investment will benefit or harm energy security of other countries is hotly contested. On one hand, this investment can supplement the overall lack of investment in the sector, benefiting all consumers. On the other hand, it may exacerbate environmental and political problems associated with fossil fuels.

The Globalisation Of Chinese Capital, Ilan Alon

Faculty Publications

The globalisation of Chinese capital will be one of the hallmarks of 21st-century economics, shaping debates over state capitalism, ‘free’ markets and international institutions. China internationalised its product markets and upgraded its manufacturing prowess towards the end of the 20th century by allowing inward foreign direct investment (FDI) and by promoting export trade. This was supported in part by cheap labour, and resulted in growing trade surpluses with key trading partners—particularly the US. Outward FDI was discouraged in order to preserve foreign reserves, and together these policies have helped China accumulate significant amounts of capital, now making it a multi-trillion …

The Impact Of Corruption On Firm Tax Compliance In Transition Economies: Whom Do You Trust?, Anna Alon, Amy M. Hageman

Faculty Publications

Tax compliance is an important issue for governments and the public alike. To meet public needs and fund public mandates, firms around the world are expected to comply with tax laws. Factors that are related to organizational (firm) tax compliance have not been sufficiently examined in the literature. Due to the increasing global influence of transition economies, factors associated with firm tax compliance in transition economies are particularly of interest. Based on a sample of over 5,000 firms from 22 former Soviet Bloc transition economies, we find that higher levels of corruption and higher levels of particularized trust (reliance on …

Regional Differences In Preferences For Managerial Leader Behavior In China, Romie F. Littrell, Ilan Alon, Ka Wai Chan

Faculty Publications

This study demonstrates the complexities of analyzing determinants of cultural differences between and within national cultures. Ralston, Yu, Wang, Terpstra, and He (1996) investigated geographic regional differences in values in China, finding significant differences among the regions. This study investigates geographic regional differences in preferred managerial leader behavior in four provinces. In 2002, 2003, 2004, and 2005 the Leadership Behavior Description Questionnaire XII (LBDQ XII) was administered to people working in business organization in Zhengzhou City, Henan Province; Suzhou City, Jiangsu Province; Guangzhou City, Guangdong Province; and in the Macau Special Administrative Region, in the Peoples’ Republic of China. Significant …

Macroeconomic Prospects For China’S Outward Fdi, Ilan Alon, Tanya Molodtsova, Jian Zhang

Faculty Publications

This article presents evidence from panel data on overseas foreign direct investment (OFDI) by Chinese firms in 103 countries during 2003-2007. The data suggest that Chinese imports, unlike Chinese exports, stimulate investment in the country of origin. This article supports the theory that Chinese investment abroad is horizontal and designed to serve the Chinese local market (import platform investment). Estimates suggest that a 1% change in imports from China will lead to a 0.15% change in Chinese OFDI. We also find that an appreciation of the Chinese exchange rate will have a strong influence on firm entry decisions.

Examining The Determinants Of Hotel Chain Expansion Through International Franchising, Ilan Alon, Liqiang Ni, Youcheng Wang

Faculty Publications

This study proposes and tests an agency-based organizational model of internationalization through franchising in the hotel sector. Using data obtained from a Franchisor Questionnaire 2001-2008, we analyzed a panel of 117 observations of 17 U.S.-based hotels. Our analysis reveals that a hotel franchisor’s decision to internationalize through franchising is positively related to the percentage of franchises, the ratio of franchised units to the total number of units. The article contributes to the literature by empirically modeling international franchising of hotels, which present unique characteristics among franchising companies, with a high investment capital requirement, maturity in the product life cycle, and …

The Globalization Of Chinese Enterprises, Christoph Lattemann, Ilan Alon, Marc Fetscherin, John Mcintyre, Julian Chang

Faculty Publications

The question of how and why Chinese firms globalize is one of the most pressing issues for businesses today. China's globalization process is nothing less than remarkable. The twenty-first century will feature a developing country as the leader of the global economy by 2020, when, by most estimates, China's purchasing power parity (PPP) gross domestic product (GDP) surpasses America's. With China's new role on the world's stage, global economic and political institutions are likely to change. China's foray into Latin America, for example, has changed the traditional role that America has played in its “backyard.” While the Chinese government was …

A Study Of Visual Puffery In Fragrance Advertising: Is The Message Sent Stronger Than The Actual Scent?, Mark Toncar, Marc Fetscherin

Faculty Publications

Purpose - This paper investigates visual exaggerations of fragrance advertisements by comparing subjects’ expectations resulting from print ads to their subsequent product evaluations. It then considers whether the actual scents fall short, meet or exceed these expectations.

Design/methodology/approach - By means of a semiotic analysis we capture the corresponding literary attributes of the ads to develop adjective pairs describing the meaning of the ads. Interviews are conducted to assess the meaning that consumers draw from the fragrance ads and we supplement these findings by performing a blind olfactory product evaluation of the fragrances. Paired sample t-tests are used to compare …

The Importance Of The Historical Tang Dynasty In Place Branding Contemporary Xi'an, Norman Harry Rothschild, Ilan Alon, Marc Fetscherin

Faculty Publications

Purpose – The purpose of this paper is to discuss the opportunity of utilizing Tang dynasty history, heritage, buildings and names in the effort to place brand the contemporary city Xi'an.

Design/methodology/approach – The paper presents a conceptual framework for place branding cities consisting of two main dimensions. The first describes the continuum of functional versus emotional values within a city; the second measures the degree to which the image of a place is historical or contemporary. The paper then employs historical analysis to examine the meaning and construction of a Tang dynasty brand for place branding twenty-first century Xi'an. …