Session 39

Global Strategies

Track G

Date: Monday, October 8, 2012

 

Time: 16:30 – 17:45

Common Ground

Room: Meeting Room 2.1


Facilitator:

  • Doug Stace, Stace Management Networks Pty Ltd

Title: Consistency of International Strategy

Authors

  • Anders Pehrsson, Linnaeus University

Abstract: An industrial firm’s implementation of international strategy can be hampered where there is limited consistency between the strategy, the firm’s international experience, and the value-adding roles of its foreign subsidiaries. This paper develops a conceptual framework outlining consistent relationships between an international strategy of differentiation, international experience, and decisions on foreign subsidiaries’ value-adding roles. The framework is illustrated with reference to Swedish firms and their subsidiaries in the US market. The paper contributes to strategy consistency theory and puts forward propositions that highlight consistent roles of foreign subsidiaries in relation to international differentiation strategy and international experience.

Title: Institutional Theory and Foreign Ownership Decisions: New Insights from Chinese Firms

Authors

  • Diego Quer Ramón, University of Alicante
  • Enrique Claver Cortés, University of Alicante
  • Laura Rienda García, University of Alicante

Abstract: Institutional theory suggests that each organization is embedded in two types of environment which influence its activities: its own internal institutional environment, including structures, systems and practices established in the past, and the external institutional environment, which it shares with other organizations. This paper examines the importance of both environments for Chinese multinationals (MNEs) foreign ownership structure decisions. Further, we investigate the potential moderating effects of cultural distance and firm´s experience in the environment. We find that Chinese MNEs tend to select ownership structures based on their experience with similar ownership structures in the past. Moreover, later Chinese entrants tend to follow the entry mode patterns established by earlier Chinese entrants.

Title: Local Power in a Global Business

Authors

  • Wim Van Lent, ESSEC Business School
  • Stoyan Sgourev, ESSEC Business School

Abstract: One of the most enduring questions in organizational research is how corporate economic decisions come into being. This paper addresses the role played by corporate power configurations, challenging the notion of agency-centric power that is common in recent institutionalist work. The focus is on a question fundamental to capitalism – the distribution of economic rents. A longitudinal study of the Dutch East India Company's dividend payout decisions sheds light on how locally rooted interests shaped the Company’s dividend policy, resulting in considerable fluctuations in dividend rates over the course of the 17-th century. Dividends payouts reflected the interplay of collective interests rather than economic reasoning.

Title: Strategy in Transition: Examining the Nature of Emerging Market Firms’ Global M&A

Authors

  • Saikat Chaudhuri, University of Pennsylvania
  • Rosa Caiazza, Parthenope University of Naples

Abstract: The past decade has witnessed a surge of cross-border mergers and acquisitions by emerging market firms as they seek to become global players. By investigating the nature of these takeovers, we highlight their unique features and pinpoint questions which have not been adequately addressed by extant theory. We suggest that the distinctive characteristics of emerging market firms create differences in their target selection, acquisition strategy, inherent challenges in deal implementation, and post-deal value creation, compared to acquirers from developed economies. Based on insights from extant literature on both cross-border M&A and emerging market firms, as well as an examination of several illustrative cases, we develop testable propositions for future empirical studies, to enrich our understanding of such growth strategies and the approaches in implementing them.

Title: The Paradox of Good Parenting: A Game-Theoretical Model of Procedural Justice and Headquarters Intervention

Authors

  • Christian Asmussen, Copenhagen Business School
  • Nicolai Foss, Bocconi University
  • Phillip Christopher Nell, WU Vienna

Abstract: We build a model that shows when it is in the interest of the firm to have a ”fairness culture”, i.e. a preference among the subunits for punishing the HQ whenever the HQ intervenes in their work in a way that is perceived as unfair. Our study contrasts with previous procedural justice literature by showing that such a system can also be detrimental as it builds a culture that prevents HQ from making necessary and value-increasing interventions. Thus, we create transparency regarding the conditions under which and mechanism that explains how procedural justice functions. We also argue that parenting is more complex than previously conceptualized. We show that parenting often profits from procedurally just decision-making but that the resulting fairness expectations also constrain management substantially. Thus, paradoxically, good parenting practices might lead to situations in which valuable parenting is not possible.

Title: The Role of Manager’s Entrepreneurial Leadership, Subsidiary Autonomy, and Age on Performance: Evidence from Korea

Authors

  • Daniel Han Ming Chng, China Europe International Business School
  • Fabian Froese, Korea University

Abstract: Drawing on research on global and entrepreneurial strategy, we develop and test theory regarding the role of foreign subsidiary manager on performance. Combining archival data on foreign subsidiaries and survey data of subsidiary managers in Korea, we will test hypotheses about the effect of subsidiary manager’s entrepreneurial leadership on subsidiary performance and the moderating influence of subsidiary autonomy and age. We argue that subsidiary manager’s entrepreneurial leadership is positively related to subsidiary performance. Further, we argue that subsidiary autonomy and age will moderate this relationship, such that the relationship is stronger for subsidiary with greater autonomy and that are younger.

All Sessions in Track G...

Sun: 08:00 – 09:15
Session 129: Strategy Implementation: Global Challenges
Sun: 09:30 – 10:45
Session 130: Practicing Strategy in Transition Economies: Reframing, Rethinking and Renewing
Sun: 11:15 – 12:30
Session 131: Global Strategies in the Service Sector
Sun: 15:15 – 16:30
Session 29: Strategy and Outsourcing
Mon: 08:00 – 09:15
Session 32: The Dynamics of Internationalization
Mon: 09:30 – 10:45
Session 34: Emerging Market/Advanced Market Strategic Interactions
Mon: 13:30 – 14:45
Session 33: Internationalization, Diversification & Performance
Mon: 16:30 – 17:45
Session 35: Entry Modes, Exit and Outcomes
Session 39: Global Strategies
Tue: 08:00 – 09:15
Session 37: Subsidiary Strategy
Tue: 11:00 – 12:15
Session 41: International M&A as an Entry Mode Strategy
Tue: 14:15 – 15:30
Session 30: Politics, Institutions, Political Risk & Global Strategy
Tue: 15:45 – 17:00
Session 40: Knowledge, Innovation and Global Strategy
Session 42: A Q&A with Pilsner Urquell: Strategy from a Small Nation
Tue: 17:30 – 18:45
Session 38: Global Managers and Managing Globally


Strategic Management Society

Prague