Session 78

International Corporate Strategy

Track F

Date: Tuesday, October 1, 2013

 

Time: 17:15 – 18:30

Paper

Room: Magnolia Room


Session Chair:

  • Gabriel R G Benito, BI Norwegian Business School

Title: Cross Border Acquisition Pacing and the Synchronization Trap

Authors

  • Yinuo Tang, University of Hong Kong
  • Weilei Shi, City University of New York
  • John Prescott, University of Pittsburgh

Abstract: Serial cross-border acquirers from emerging economies operate in a context where their institutional environment is in a state of transition while their acquisition targets are often located in developed countries. We ask how these firms should pace their cross-border acquisitions to enhance performance. Based on time compression economies, we hypothesize that cross-border acquisition pacing has a positive effect on performance subject to a diminishing return effect. We further hypothesize that a temporal fit between cross-border acquisition pacing and the pace of institutional distance change between the acquirer’s and target’s countries creates a synchronization trap —a potential organizational pathology. A sample of 117 BRIC country firms undertaking 575 acquisitions from 2001-2011 in G7 countries, support for our hypotheses.

Title: Ownership, Internationalization and Performance

Authors

  • Gabriel R G Benito, BI Norwegian Business School
  • Asmund Rygh, BI Norwegian Business School
  • Randi Lunnan, BI Norwegian Business School

Abstract: The relationship between internationalization and performance (I/P-relationship) has been characterized as one of the “big questions” of corporate strategy in a globalized world. The attention seems obvious. If companies cannot expect a positive pay-off from expanding internationally, why would they and their owners want to pursue international business opportunities? Yet, the results of three decades of research are inconclusive; no strong and consistent pattern emerges. One reason may be lack of attention to governance issues. We examine the role ownership potentially plays both as a determinant of internationalization decisions made by companies and as a moderator of the I/P-relationship. Specifically, we consider three distinct effects of ownership: Direct effects (i) on performance and (ii) on internationalization; and (iii) a moderating effect on the I/P-relationship.

Title: Slack Resources and MNE Subsidiary Performance

Authors

  • Yong Li, State University of New York at Buffalo
  • Saehwa Hong, State University of New York-Buffalo

Abstract: This study examines the relationship between slack resources and performance at the MNE subsidiary level. Preliminary empirical analysis of data on MNEs’ subsidiaries in Korea during 2006-2008 shows that both available slack and potential slack of subsidiaries are positively related to subsidiary performance. Furthermore, the analysis indicates that subsidiary technological capability strengthens the positive effect of subsidiary slack resources on subsidiary performance. This study extends research that has focused on the ownership advantages of MNE parent firms and contributes to the literature on subsidiary performance.

Title: Subsidiary Level Determinants of Reverse Knowledge Transfer in Emerging Markets Multinationals

Authors

  • Smitha Nair, University of Sheffield
  • Kamel Mellahi, University of Warwick
  • Mehmet Demirbag, University of Essex

Abstract: We examine the effects of subsidiary level factors on reverse knowledge transfer (RKT) in emerging market multinationals (EM-MNEs). We formulate six hypotheses and test them using firm level data from 101 Indian multinationals. Our results indicate that subsidiaries that perform the role of specialised contributors contribute more towards RKT than subsidiaries that perform the role of world mandate or local implementer, and the higher the competitive index of the host country the greater the level of RKT. Our results also show that higher levels of collaboration between the subsidiary and the parent facilitate RKT and this effect is more prominent in high technology and knowledge intensive industries.

All Sessions in Track F...

Sun: 09:45 – 11:00
Session 160: Leadership and Strategic Change
Sun: 11:15 – 12:30
Session 159: Publishing Strategic Management Research
Sun: 15:15 – 16:30
Session 75: Managing the Boundaries of the Firm: Entry, Exchange, and Exit
Sun: 16:45 – 18:00
Session 297: Corporate Strategy Business Meeting
Mon: 08:00 – 09:15
Session 71: Corporate Diversification and Firm Performance
Mon: 09:45 – 11:00
Session 74: Acquisition Experience, Innnovation, and Performance
Mon: 14:00 – 15:15
Session 72: Corporate Divestiture and Portfolio Restructuring
Mon: 17:00 – 18:15
Session 76: Managers and Corporate Strategy
Tue: 08:00 – 09:15
Session 81: Corporate Strategy: Competition and Growth
Tue: 11:00 – 12:15
Session 77: Resources, Capabilities, and Corporate Strategy
Tue: 15:45 – 17:00
Session 79: Managing the Corporate Portfolio
Tue: 17:15 – 18:30
Session 78: International Corporate Strategy


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