Session 19

Global Strategy

Track A

Date: Saturday, December 15, 2012


Time: 11:15 – 12:30

Common Ground

Room: Meeting Room 4


  • Geng Cui, Lingnan University

Title: A Big Puzzle about Chinese Firms: Why They Attack Other Chinese Firms in International Competition


  • Yadong Luo, University of Miami
  • Huaichuan Rui, University of London

Abstract: Chinese firms are widely perceived as cooperative with one another through the history of connecting themselves as joint ventures or through a supply value chain, but recent practice show that in reality, there is fierce intraspecific competition when investing in the same or different foreign countries with firms employing a myriad of legitimate and illegitimate tactics. How did a nation defined by homonymous, coherence, and relational cultures nurture the mindset and behaviour of inter-Chinese competitive attacks? Solving this puzzle is what spurred us to initiate this research. Since 2005 we launched the fieldworks on Chinese firms in 11 countries and interviewed over 100 managers and officials. This study found that inter-Chinese competitive attack phenomenon does not support the central prediction of the mainstream theory on interfirm rivalry.

Title: Agglomeration Effects and FDI Performance in China: The Role of Dynamic Change of Cluster Heterogeneity


  • Yu Li, University of International Business and Economics

Abstract: This study examines the role of dynamic change of cluster heterogeneity in the relationship between agglomeration effects and the performance of FDIs in clusters. We investigate the role of cluster heterogeneity in terms of cluster density and FDI presence in a cluster. We argue that there is inverted U-shaped relationship between cluster density and the performance of FDIs located within a cluster, and inverted U-shaped relationship between the level of FDI presence in a cluster and the performance of FDIs located within the cluster. Controlling for self-selection bias and using the panel on foreign firms in Chinese manufacturing industries during the period of 1998-2002, our results support these hypotheses.

Title: Rapid Geographic Expansion Strategy of Emerging Market Born-Global Firms and Its Performance Consequences


  • Ziliang Deng, Renmin University of China
  • Ruey-Jer Bryan Jean, National Chengchi University
  • Rudolf Sinkovics, University of Manchester

Abstract: Researchers have examined born-global firms extensively from different theoretical perspectives, however the extant literature has neglected the post-entry dynamics of geographic expansion of emerging market born-global firms. This paper examines whether emerging market born-global firms can obtain good financial performance and better probability of survival when implementing rapid geographic expansion strategies. Three contingency conditions under which the above geographic expansion-performance relationship may vary will also be tested, namely external resources, learning capabilities and product quality. A Cox survival analysis model and general method of moments model (GMM) will be developed and tested, using a large panel of firm-level export data (containing information of value, price and destination of every export transaction) of 90 thousand Chinese born global firms over the period 2000-2006.

Title: Subsidiary’s Strategy and Competitiveness in a Changing Environment


  • Jianhong Zhang, Nyenrode Business University
  • Jinmeng Wang, State Taxation Administration of Jiangsu Province

Abstract: This paper aims to contribute to the literature by evaluating the performance of four subsidiary strategies (natural resource seeking, market seeking, low cost seeking, and strategic asset seeking) under a changing investment environment. We focus on a combination of changes of economic factors and institutional factors. Economic factors refer to internal and external market changes; institutions refer to the government policies relevant to subsidiaries in China. Unearthing the relations between host country specific advantages (CSAs), subsidiary’s strategy and competitiveness will help us understand not only the success factors in China, but also the role of subsidiary in MNEs’ sustainability. The information of 5048 subsidiaries over 2003-2010 will be used to test our hypotheses.

Title: The Larger the Merrier? Effects of Firm Size on Foreign-Owned Enterprises’ External Relationships in China


  • Rui Wu, Tsinghua University
  • Wei Chi, Tsinghua University

Abstract: In the rise of foreign direct investments in transition economies, scholars have been paying increasing attentions to foreign firms’ activities in China. However, current research has almost exclusively focused on large or established foreign firms such as multinational enterprises (MNEs), but neglected practices of smaller foreign firms. In this study, we draw from the resource-based and learning perspectives to analyze the differences between small and large foreign firms from the aspect of their relationships with Chinese transaction partners and governments. We propose that, given gaps in capabilities and willingness, small foreign firms differ from larger ones in contracting behaviors, disputes and resolutions, and relationships with local governments. Using a nation-wide firm-level survey in China, we find strong empirical supports for the hypotheses.

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