Session 221

National Institutions and Firm Behavior

Track A

Date: Monday, October 8, 2012

 

Time: 13:30 – 14:45

Common Ground

Room: Meeting Room 2.1


Facilitator:

  • Bennet Zelner, University of Maryland

Title: Foreign Ownership and Corporate Governance Patterns: The Board-Auditor Relationship in Japan

Authors

  • Kurt Desender, University Carlos III
  • Rafel Crespi-Cladera, University of the Balearic Islands

Abstract: Research studying board characteristics typically invokes an agency approach, which assumes that the board’s main function is monitoring. We draw on the configurational approach which conceptualizes corporate governance as a system of interrelated elements having strategic or institutional complementarities and claims that particular governance practices will only be effective in certain combinations which may lead to different corporate governance patterns. We claim that the relationship between boards and auditors is contingent on the ownership of the firm, and in particular on the degree of foreign ownership. To test this logic, we focus on the relationship between board characteristics and audit fees in Japan—an institutional setting which differs substantially from the U.S., and has witnessed a high increase in Anglo-American institutional investors.

Title: How Inter- and Intra-organisational Regulatory Forces Influence Exploitative Behaviour within Multi-unit Firms

Authors

  • Marten Stienstra, Erasmus University - Rotterdam

Abstract: Although deregulation programmes have been introduced in many industries to keep pace with shifting macro environmental developments, regulation continues to remain an important tool for governmental policy. In this study, we apply a neo institutional theory perspective to investigate how inter- and intra-organisational regulatory forces, both separately and jointly influence exploitative behaviour. Exploitative behaviour is defined as those activities that continue, strengthen, or optimise current organisational practices.We empirically probe our theoretical relationships using survey data of 111 organisational units from two Dutch multi-unit energy firms. Combined, our preliminary findings show that the degree of inter-organisational regulatory forces positively moderates the relationship between intra-organisational regulatory forces and exploitative behavior, which contributes to a deeper understanding of how institutional processes at various levels are linked.

Title: Institutional Environment and Entrepreneurial Orientation in Emerging Markets

Authors

  • Liubov Sokolova, St. Petersburg University
  • Galina Shirokova, St. Petersburg University

Abstract: This research proposal presents the major aspects of the research devoted to the influence of institutional environment on entrepreneurial orientation of small and medium sized companies in emerging markets. As a basis the authors took the model of Covin and Slevin (1989) of entrepreneurial orientation. The institutional factors analyzed in the research include dynamism, hostility and heterogeneity of government behavior, protection of companies by property rights and contract law, dependence on personal contacts, compliance with administrative norms and tax law. The results of regression analysis on 500 Russian SMEs showed that dynamism, property rights protection, compliance with administrative norms and dependence on personal contacts has positive influence on entrepreneurial orientation, while contract law protection and compliance with tax law have negative relation to entrepreneurial orientation.

Title: Institutions and Persistence of First Mover Advantages

Authors

  • Jaime Gomez, La Rioja University
  • Gianvito Lanzolla, City University London
  • Juan Maicas, University of Zaragoza

Abstract: We advance FMA literature by bringing in the institutional context, a hitherto missing dimension. We identify two components of the institutional context - a country’s market orientation and a country’s cultural orientation towards uncertainty - which can help capturing its interplay with the FMA isolating mechanisms which protect first mover’s performance. We argue that market supporting institutions are detrimental for first mover’s performance and that uncertainty avoiding societies tend to favour first’s mover performance. We test our hypotheses in the context of the world telecommunication industry (40 countries, 136 firms, 20 years of data) and we find strong support for our hypotheses. We also draw empirical implications on the relative importance of a country’s market orientation and a country’s cultural orientation towards uncertainty in first mover’s performance.

Title: Once Learned, Not Forgotten? Institutional Imprint Persistence in Transition Economies

Authors

  • Aldas Kriauciunas, Purdue University
  • George Shinkle, University of New South Wales

Abstract: Imprinting theory is generally utilized to explain how founding conditions constrain the ability of firms to adapt to new conditions. In contrast, we argue imprinted capabilities may lie dormant for decades and then aid firms in adapting to new conditions. We also consider how such imprints may differentially influence the functions of the firm through segmentation imprinting. We test our predictions using the natural experiment created by the shift from market-oriented to controlled and back to market-oriented economies in former Communist countries. We find institutional imprinting is a persistent force on firm performance. However, this force exhibits different levels of influence depending on the level of internal control of specific organizational functions. In this, we inform the relationship between structure and agency regarding organization-level outcomes.

Title: The National Entrepreneurship Infrastructure as Catalyst for Domestic Business Creation in Transition Environments

Authors

  • David Major, Indiana University

Abstract: This cross-national study investigates the factors that encourage the development of homegrown businesses in emerging and transitional nations. Local factors contributing both to recognition of entrepreneurial opportunities and abundance of opportunities together constitute the nation’s entrepreneurship infrastructure. The condition of this infrastructure is predictive of the nation’s success at encouraging the creation of local businesses. Others have already shown that urban policies play some role in constructing supportive infrastructures for business creation. This study makes contribution by examining the relationship between national institutional dynamics and the rate of domestic business creation. The proposed methodology includes both statistical and qualitative examination and the final results should yield prescriptions that leverage factors of the national entrepreneurship infrastructure to encourage local business creation.

All Sessions in Track A...

Mon: 08:00 – 09:15
Session 147: Emerging Market Firms and Complex Institutional Environments
Mon: 09:30 – 10:45
Session 220: Political Strategies in Transition Contexts
Mon: 13:30 – 14:45
Session 221: National Institutions and Firm Behavior
Mon: 16:30 – 17:45
Session 154: Embeddedness, Networks and Non-Market Strategies
Tue: 08:00 – 09:15
Session 153: Cognition, Bounded Rationality and Strategy
Tue: 11:00 – 12:15
Session 151: Coevolution of Institutions and Firm Strategy
Session 152: Institutional Change and Innovation
Tue: 14:15 – 15:30
Session 155: Institutional Transitions and Internationalization Strategies
Tue: 15:45 – 17:00
Session 219: Strategic Responses to Institutional Change
Tue: 17:30 – 18:45
Session 150: Legitimacy, Liabilities and Institutions


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