Strategic Management Policy Commons^™

Growth And Survival Of International Joint Ventures: An External-Internal Legitimacy Perspective, Jane W. Lu, Dean Xu

Research Collection Lee Kong Chian School Of Business

The authors examine the growth and survival of international joint ventures (IJVs) from a legitimacy perspective. In a sample of 291 Sino-Japanese joint ventures in China, they found that Chinese parent age, Chinese parent size, and IJV industry relatedness to either parent had a positive effect on IJV growth and/or survival. However, IJV industry relatedness to both parents led to lower rates of IJV growth and survival. The findings highlight the importance for IJVs to obtain both external and internal legitimacy, as well as the difficulties IJVs face in acquiring internal legitimacy from both parents simultaneously.

Sustainability Through Profitability: The Triple Bottom Line, Connie I. Reimers-Hild

Kimmel Education and Research Center: Presentations and White Papers

Today’s highly competitive, globalized world requires organizations and businesses to think differently about how they are going to stay in business. Businesses can no longer afford to focus on profits as their sole purpose for existence. Organizations must instead think about the “Triple Bottom Line” and its implications for their ability to grow their brand, customer loyalty and profits.

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 …

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 …

How High Will Russian Aviation Fly?, Tamilla Curtis, Irina Swenson

Management, Marketing and Operations - Daytona Beach

The study provides the historical context of the Russian aviation industry reflecting the periods of its growth and decline. It reveals the competitive advantage strategies that have been implemented by the Russian government in an attempt to revivify an enfeebled nation's aeronautic industry. The paper discusses the newly formed Joint Stock Company (JSC) United Aircraft Corporation (UAC) and its strategies to break into global markets, including UAC innovative product offerings. Whether or not, the recent efforts of the Russian government serve as a fulcrum for the Russian aviation industry that will leverage Russia into the global market, remains to be …

Who Is Taking Your Business Across Borders? Harnessing Human Capital For Successful Regionalization In Asia, Richard Raymond Smith, C. Switzer, E. Craig

Research Collection Lee Kong Chian School Of Business

As the dynamics of globalisation change, Asia has become the focal point for business growth. With the region’s immense diversity across cultures, language, politics, economic development, climate, geography, populations and resources, human capital management is perhaps the most critical and most vexing success factor for companies seeking to invest/operate/grow/expand here. To develop this report, we explored the question of successful regionalisation in Asia from a human capital perspective. We asked, What human capital challenges do business and HR leaders face in their quest to succeed in Asia? What initiatives have they launched to overcome these challenges? And what business outcomes …

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 …

Would Spain Also Restrict Imports To Save Jobs? Why Not Try "Trade Equilibrium" Instead?, Narendra Bhandari

Faculty Working Papers and Articles

Chinese tires, subsidized by its government, are much cheaper than their American counterparts. As a result several American tire plants have been closed and thousands of Americans have lost their jobs. In light of these setbacks, President Obama levied an extra 35% tax on these imports in September 2009.

The purpose of this article is to research which other country, if any, may also follow the U.S. strategy; and why using the theory of Trade Equilibrium would be a better approach instead

The Role Of The Middle Manager In The Strategy Development Process Of The Multinational Subsidiary, Donal O'Brien, Pamela Sharkey Scott

Conference Papers

As multinational corporations (MNC) strive for long term competitiveness in complex business environments the Strategic Development Process has emerged as a potential source of competitive advantage (Grant, 2003). Despite this recognition there is limited knowledge of the strategy development process and the contributors to strategy development at the subsidiary level of the MNC. The essence of strategy development is contributing to competitive advantage through management activities (Papadakis et al, 1998), but much of the focus of research up to this point has been on the strategic relationship between subsidiary top management and corporate headquarters with little attention being paid to …

Motivations For Us Foreign Direct Investment, Christina Buoninfante

Honors College Theses

The purpose of this thesis is to determine US firms’ motivations for foreign direct investment and to explore to what extent US firms continue to invest into China and India. I first correlate the agricultural, industrial, and service sectors in the United States with those of China and India. I find that there is a positive relationship between the correlation of US sectors and the host country’s sectors and foreign direct investment into each sector. This supports the theory of Vernon’s product life cycle hypothesis, which explains that firms expand into lesser developed countries when their product becomes more sensitive …

Futility Of Stimulus Funds In The Middle Of Huge Trade Deficits, Narendra C. Bhandari

Faculty Working Papers and Articles

The U. S. is facing an unprecedented environment of increasing unemployment, declining income, disappearing middleclass, and mounting trade deficit (about $731 billion in 2007). The government is providing stimulus funds to a selected number of organizations to help solve these problems. However, as long as the country continues to have huge trade deficits, these stimulus efforts may not help much, if at all. They may even worsen the economic situation. This could happen if the banking, insurance, construction, transportation, and other companies—receiving the stimulus funds—would offshore part of their production activities. Several American firms send certain number of jobs abroad …

Corporate Brand Management In Higher Education: The Case Of Erau, Tamilla Curtis, Russell Abratt, William Minor

Management, Marketing and Operations - Daytona Beach

There is evidence in the literature that organizations struggle to formulate and implement their corporate branding strategies. This paper aims to provide an overview of the corporate brand building process in higher education. Design/methodology/approach – A qualitative methodology was used in this study. A single case study of a private American university was used to gather information about their corporate brand building process. University administrators and documents were used to gain insights into their brand building process. Findings – The corporate brand building process addressed three key areas; web administration, program marketing and corporate brand positioning. The corporate brand building …

Crm In Russia And U.S. -- Case Study From American Financial Service Industry, Tamilla Curtis, Tom Griffin, Donald Barrere

Management, Marketing and Operations - Daytona Beach

This paper discusses Customer Relationship Management in two sharply contrasting business cultures: the United States and Russia. Included in the present work is a case study of a midsized American financial services firm that illustrates a common path to the decision to have a CRM system: the planning, selection, and the implementation of the CRM program, including a discussion of the likelihood of success. The clients in this case are Financial Advisors, who in turn sell the investment products to the end user individual investors. CRM in Russia is yet in its infancy as the economy emerges from 200 years …

Impact Of Offshore Outsourcing On Competitive Advantage Of U.S. Multinational Corporations, Yoram Benit

Graduate Student Dissertations, Theses, Capstones, and Portfolios

Offshore outsourcing became a common business practice by most U.S. and Western businesses after the Internet became viable. It is expected that by 2015 the U.S. market will outsource 3.3 million employment opportunities and will pay an estimated $136 billion in salaries to Asian countries (Hemphill, 2004). Outsourcing became a necessity for corporations to reduce cost and maintain competitiveness in the marketplace, but its effectiveness in achieving superior performance and competitive advantage needs to be explored.

The relationship among offshore outsourcing, market freedom, and competitive advantage is an important issue for multinational corporations to conduct business and gain competitive advantage. …

Customization Vs. Standardization In Global Hotel Expansion, Nenad Praporski

UNLV Theses, Dissertations, Professional Papers, and Capstones

There are numerous challenges that an international hotel chain faces when opening a property in a foreign country. The company’s response to those challenges will determine the new hotel’s overall success rate. This will in turn directly affect the corporation’s profit levels. The critical issue of this project is to define to what extent the world’s largest hotel chains utilize the theories of customization and standardization when designing a business strategy for a new property. In order to truly grasp the concept, it is essential for one to value the importance of brand standard in regards to globalization in the …

Bringing It All Back Home, Arnoud Cyriel Leo De Meyer, Matthias Holweg

Research Collection Lee Kong Chian School Of Business

There seems little thatcan be positive for the UK manufacturing sector in oil prices above $120 abarrel, rising costs of other natural resources, inflation and growingenvironmental pressure. But there may be a silver lining. Increased transportcosts resulting from higher energy prices and carbon taxes may create anopportunity for a revival in western manufacturing.

Using Van Valens Procedure In Business Research To Assess Consistent Differences In Multidimensional Variability In Two Or More Groups, Mark L. Berenson, Kimberly Killmer Hollister

Department of Information Management and Business Analytics Faculty Scholarship and Creative Works

Much business research involves comparisons in two or more groups on many dimensions. This paper primarily focuses on demonstrating and providing guidance as to how researchers should approach a multivariate analysis in the comparison of sets of corresponding characteristics in two or more independent groups. In particular, this paper demonstrates the utility of a simple but not widely known procedure developed by Van Valen (1978) that should be employed to test for the significance of differences in overall variability in the sets of corresponding characteristics in two or more groups, a test that enjoys much statistical power in detecting significant …

International Growth Strategies Of Service And Manufacturing Firms: The Case Of Banking And Chemical Industries, Ravi Kathuria, Maheshkumar P. Joshi, Stephanie Dellande

Business Faculty Articles and Research

Purpose

– The purpose of this paper is to examine the differences in growth strategies – domestic and international – of manufacturing and service firms. Hardly any literature exists that empirically investigates the differences on account of the distinctive characteristics of goods and services, and such studies rarely draw from the operations management field.

Design/methodology/approach

– Multiple analysis of variance is used to analyze longitudinal data from multiple secondary sources.

Findings

– Mixed services, such as banks, focus more on domestic growth and less on international growth. Manufacturers, such as chemical firms, focus more on international activities as compared to …

Corruption, Foreign Direct Investment And The Cost Of Doing Business In Vietnam, Tom Arnold, Bonnie Buchanan

Finance Faculty Publications

Corruption is a key impediment to: foreign direct investment, an accurate measurement of political risk, and a barrier to effective corporate governance. By examining the political structure of Vietnam and the impediments created by corruption, this paper defines some of the difficulties with investing in Vietnam. However, with regard to the sugar industry, some solutions have emerged with companies taking direct control of contracting, offering credit, and the building of infrastructure.

International New Ventures: Revisiting The Influences Behind The 'Born-Global' Firm, Terence P. C. Fan, Phillip Phan

Research Collection Lee Kong Chian School Of Business

There is a small but theoretically important literature on 'born-globals' or international new venture firms that positions itself in contrast to the more established sequential international entry literature. In this paper we examine the pattern of entry into international markets for a set of international new ventures and show that they need not be a distinct breed of firms, as previous research has portrayed. Absent a specific technological advantage, the decision for a new venture to internationalize at inception is influenced by the size of its home market and by its production capacity, as well as by cultural and economic …

Relationships Between Goal Setting, Innovation, Project Management, Quality, Speed To Market And New Product Success, Ying-Chieh (Andrew) Yang

Graduate Student Dissertations, Theses, Capstones, and Portfolios

Successful new products and services are critical for business success in the global economy. Many companies, however, continue to find successful new product development (NPD) difficult. Few studies have investigated the impact of organizational culture on NPD. The literature suggests that environmental conditions intervene in NPD, but little research has been conducted on relationships between organizational culture, environmental conditions, and NPD success.

This dissertation develops a theoretical framework based on Nakata and Sivakumar's (1996) culture-NPD model which integrates four cultural values, environmental uncertainty, and firm size as keys to NPD success. Research questions and hypotheses originate from this theoretical framework. …

A Capabilities Perspective On The Effects Of Early Internationalization On Firm Survival And Growth, Harry J. Sapienza, Erkko Autio, Gerard George, Shaker A. Zahra

Research Collection Lee Kong Chian School Of Business

Recent critiques of internationalization process models question the wisdom of delaying internationalization. Internationalizing late allows firms to assemble resources and gain experience but also allows inertia to develop. We resolve this tension by positing that internationalization has differing effects on firm survival and growth. These effects are moderated by organizational age, managerial experience, and resource fungibility. Our framework provides insights into the evolution of capabilities across borders and may be tested and built on by organization researchers.

Which Ties Matter When? The Strategic Impact Of Network Linkages On Foreign Subsidiary Survival, Jing'an Tang, Paul W. Beamish

WCBT Faculty Publications

In addition to enriching the network theory by specifying the conditions under which business networks affect firm performance, our study contributes to the international strategic alliances literature in answering the questions of when to ally and with whom to ally for managers dealing with international expansions.

Partnering Strategies And Performance Of Smes' International Joint Ventures, Jane Wenzhen Lu, Paul W. Beamish

Research Collection Lee Kong Chian School Of Business

The international joint venture (IJV) is an important mode in the internationalization of small- and medium-sized enterprises (SMEs). Internationalization in turn is an entrepreneurial behavior in the pursuit of growth. Partnering strategies in the formation of IJVs can have significant effects on the outcome of SMEs' international expansion. In this study, we examine the performance implications of two types of resources contributed by SMEs' IJV partners, host country knowledge and size-based resources. We develop and test three sets of hypotheses about the longevity and financial performance of a sample of 1117 international joint ventures established in 43 countries by 614 …

What Makes And What Does Not Make A Real Option? A Study Of International Joint Ventures, Ilya Cuypers, Xavier Martin

Research Collection Lee Kong Chian School Of Business

This paper examines the boundaries of real options logic, with an application to joint ventures (JVs). We distinguish between forms of uncertainty that are resolved endogenously and those that are resolved exogenously, and theorize that only exogenous uncertainty will have the impact predicted by real options theory on a foreign investor's choice of how large an equity share to take in a JV. We theorize that macroeconomic and institutional variables generate exogenous uncertainty whereas, by contrast, cultural distance and choices pertaining to corporate scope and product or process development activities involve endogenous sources of uncertainty that investors can both assess …

Strategic Management For Economic Development: Remaking The Singapore 'Model', Caroline Yeoh, Wilfred Pow Ngee How

Research Collection Lee Kong Chian School Of Business

The dynamics of international economic competition have far-reaching policy implications for both developing and developed countries. Established industrial and trade policy regimes in most countries are under tremendous strain, and this applies even to the dynamic Newly Industrialising Economies (NIEs). The outward-oriented development strategies of the Asian NIEs, which once seemed unbeatable, have run up against protectionist barriers in the developed countries, and increasingly, against competitive pressures from other up and coming developing countries. Governments in these NIEs have had to re-examine accustomed policies and strategies, and search for alternative strategies and programs, in order to re-position their economies for …

[Introduction To] Cooperative Strategy: Managing Alliances, Networks, And Joint Ventures, Stephen Tallman

Bookshelf

Strategic alliances are increasingly common, as many organizations look towards various partnering arrangements. This second edition of Cooperative Strategy extends the first edition's clear and comprehensive survey of strategic alliances. Presenting different disciplinary perspectives (economics, strategy, organization theory) and numerous examples from the corporate world. The text has been thoroughly revised and updated, taking account of new theoretical models, and its coverage of case studies has been extended. It will be ideal for business students and managers alike wishing to understand the challenges of managing alliances.

Obesity, Educational Attainment, And State Economic Welfare, Martin W. Sivula Ph.D.

MBA Faculty Conference Papers & Journal Articles

For the first time in history, estimates of the overweight people in the world rival estimates of those malnourished. The World Health Organization (WHO, 2002) ranked obesity among the top 10 risks to human health worldwide. In the early 1960s, nearly half of the Americans were overweight and 13% were obese. Today some 64% of U.S. adults are overweight and 30.5% are obese. Even more alarming, twice as many U.S. children are overweight than were twenty years ago, a 66% increase. Non-communicable diseases impose a heavy economic burden on already strained health systems. Health is a key determinant of development …

From Relations To Rules: A Theoretical Explanation And Empirical Evidence, Shaomin Li, Daniel A. Bell (Ed.), Hahm Chiahark (Ed.)

Management Faculty Publications

(First Paragraph) There is a general perception that people in the East rely more on guanxi (relations, or informal social networks) to govern economic transactions and manage business activities than people in the West. A large quantity of literature on the difference has been produced. One of the dominant views argues that the difference is due to culture, which is treated as an exogenous variable.1 These studies on culture as the determinant of different management and governance style have helped us gain insight on how businesses are conducted in different regions of the world and on how cultures differ through-out …

Cameron County/Matamoros At The Crossroads: Assets And Challenges For Accelerated Regional And Binational Development, David V. Gibson, Pablo Rhi-Perez, Margaret Cotrofeld, Oralia De Los Reyes, Mark Gipson, University Of Texas At Brownsville, Texas Southmost College, University Of Texas At Austin

Digital Books

Study of assets and challenges for knowledge-based economic development in the Lower Rio Grande Valley. Includes demographic, economic, and education data for the region, as well as results of a survey of government and business leaders concerning economic development strategy.

© 2003 by UTB-CBIRD and IC² Institute.