Session 14

Internationalization I

Track A

Date: Sunday, December 16, 2012

 

Time: 15:30 – 16:45

Paper

Room: Meeting Room 230B


Session Chair:

  • Yu Li, University of International Business and Economics

Title: Do Diversification and Internationalization Create Value For Companies of Emerging Countries? The Case of Large Chinese Groups

Authors

  • Jie Fu, University of Toulouse 1 Capitole
  • Denis Lacoste, Toulouse Business School

Abstract: Institutional environment in where companies do business shape the strategy-performance relationship. Thus, the conclusions conducted in Western context must be reviewed in emerging countries. We investigated the product diversification-performance relationship and the geographic diversification-performance relationship of Chinese companies. Conducting research on strategy and performance of Chinese companies is all the more important than if institutional voids still exist in this country, the institutional context of China has changed a lot over the last ten years. Using 79 Chinese groups publicly listed in SSE from 2006 to 2010, we found (i) a negative association between the product-diversification (particularly, unrelated diversification) and performance. (ii) An inverted U relationship between internationalization and performance. (iii) that the institutional distance between China and host countries has a negative impact on performance.

Title: Global Equity Offerings as a Stage of Internationalization Process

Authors

  • Xueji Liang, National University of Singapore
  • Jane Lu, University of Melbourne

Abstract: The internationalization process model suggests that firms internationalize through incremental steps in global markets, with accumulated knowledge and enhanced commitment. This study extends this model by arguing that listing in global equity markets is a stage of internationalization process. More specifically, firms gain international recognition and reputation through global equity offerings, which affect their knowledge accumulation and perceived opportunities in global markets. Greater knowledge and more opportunities enhance firm commitment and thus facilitate further internationalization process. We aim to test this model by using data from Chinese listed firms. We hypothesize that for Chinese firms, global IPO increases the degree of internationalization and leads to better firm performance. Additionally, the strategic value of global IPO are contingent on corporate governance structure of Chinese listed firms.

Title: Overcoming the Dual Liabilities: The Host Market-Seeking Subsidiary Transformation of Multinational Enterprises From Emerging Economies

Authors

  • Chun-Pu Lin, University of Bath
  • Klaus Meyer, China Europe International Business School
  • Michael Mayer, University of Bath

Abstract: In recent decades, multinational enterprises (MNEs) increasingly focus on emerging economies as potential markets. However, subsidiaries of MNEs initially positioned as export-oriented in emerging economies thus face the challenge of reconfiguring their resource bases to fit with the altered strategic positioning, including adapting historical resources and acquiring new resources from host environments. This study focuses on a unique group of MNEs, MNEs from emerging economies (EMNEs), which hold limited marketing capabilities or brand equity. Their subsidiaries face apparent resource gaps, or the “liability of emergingness”, as they turn to explore the host markets. Moreover, they face “liability of foreignness” when externally acquiring resources with the aim to overcome, the institutional voids common in emerging economies. Examining two Taiwanese MNEs operating the Chinese domestic market, this study aims to identify the strategic features regarding how subsidiaries overcome the dual liabilities during after-entry period, caused by resource circumstances and host environments respectively.

Title: Value Chain Activities, Location Choice and Entry Mode of Chinese Multinationals

Authors

  • Geng Cui, Lingnan University
  • Ling-yee Li, Lingnan University
  • Tsangsing Chan, Lingnan University

Abstract: The changing pattern of OFDI has attracted increasing scholar attention to investigate extent to which extant knowledge is adequate to account for the OFDI decisions made by MNCs from emerging markets such as China. The leading theories of internationalization are largely based on studies of firms from industrialized economies and emphasize the firm-specific-advantages and the gradual process of knowledge development. These theories cannot adequately explain the internationalization process of firms from developing countries which lack FSAs and operate in essentially emerging market contexts. This study draws from the knowledge-based theory and examines the effect of value chain activities including production, marketing, and research and development on EMMNCs’ location choice and entry mode strategies in their overseas expansion.

All Sessions in Track A...

Sat: 09:00 – 09:30
Session 35: Conference Welcome
Sat: 09:30 – 10:45
Session 30: Keynote Plenary Panel: Competing and Cooperating in and for China
Sat: 11:15 – 12:30
Session 4: Competition and Adaptation
Session 11: Firm Boundaries and Growth
Session 19: Global Strategy
Session 26: Entrepreneurship in China
Sat: 13:45 – 15:00
Session 31: Plenary Panel II: Collaborative Strategies in and for China
Sat: 15:30 – 16:45
Session 6: CSR and Sustainable Development
Session 7: Entrepreneurship
Session 9: Executives and Incentives
Session 22: Panel: Innovation
Session 24: Managing Innovation Strategies
Sat: 17:00 – 18:15
Session 5: Corporate Governance
Session 8: Evolution and Ecosystems
Session 10: FDI
Session 12: Innovation Strategy
Session 27: FDI and Institutions
Sun: 09:00 – 10:15
Session 32: Plenary Panel III: Corporate Governance and Executive Leadership in the Age of Globalization
Sun: 10:45 – 12:00
Session 13: Institutions
Session 15: Internationalization II
Session 16: Networks
Session 29: Resources and Capabilities
Sun: 13:45 – 15:00
Session 33: Plenary Panel IV: Strategic Management Research in China - What is Next?
Sun: 15:30 – 16:45
Session 3: Alliances and Cooperation
Session 14: Internationalization I
Session 17: Social Capital
Session 28: Governance, Knowledge, and Cooperation
Sun: 17:00 – 18:00
Session 34: Executives Plenary Panel: Innovation Strategy in China


Strategic Management Society

China