Session 28

Governance, Knowledge, and Cooperation

Track A

Date: Sunday, December 16, 2012


Time: 15:30 – 16:45


Room: Meeting Room 4

Session Chair:

  • Claudia Schoonhoven, University of California-Irvine

Title: A New Classification on MNE Strategy, Structure and Subsidiary: Headquarters Versus Subsidiary Perspective


  • Xufei Ma, Chinese University of Hong Kong
  • Andrew Delios, National University of Singapore
  • Shu Yu, National University of Singapore

Abstract: This study systematically reviewed the literature on the MNE (multinational enterprise) strategy and structure and MNE subsidiary with a focus on six major research streams: strategy-structure, headquarters-subsidiary relationships, MNE process, subsidiary role, subsidiary evolution, and subsidiary networks. Based on this systematic review, I proposed a new classification: a headquarters (HQ) perspective versus a subsidiary perspective. I pointed to the limitations of prior studies as well as the research opportunities, which included an intermediate-level perspective (the totality of an MNE’s subsidiaries within a single host country) and the bridges to theory (foreign direct investment theory and institutional theory) and context (emerging economies).

Title: Alternative Solutions to the Agency Conflict in the Firm


  • Xin Li, Copenhagen Business School

Abstract: Agency theory is concerned about the conflict of interests in the employer-employee relations. But the theory is framed purely from the perspective of the principal (i.e., the owners or stockholders of the firm), without taking into consideration of the perspective of the agent (e.g., managers or employees), the conventional mechanism, i.e., monitoring and bonding, though useful, are not always effective and efficient for motivating employees. In this paper, we propose two alternative solutions to the agency conflict problem, i.e., aspiration facilitation and aspiration internalization, that adopts a promotion mindset in contrast to the prevention mindset in the agency theory and the conventional mechanisms. We argue, to facilitate and internalize some (if not all) aspirations of their employees, the firms will not only gain talents-based competitive advantages but become truly humanistic organizations for the ultimate purpose of life is the realization of human aspirations.

Title: Reaching for the Future and Reclaiming the Past: Cross-strait Cooperation


  • Ching Horng, National Chung Cheng University

Abstract: Informed by the local media and relevant literature, this proposal sketches out a framework of learning, identity and government (LIG). To explore the potential of LIG, I draw on MTK and Franz as two illustrating cases of cross-strait cooperation between firms in Taiwan and China. While MTK helps the Chinese wireless handset makers move from 2G to 3G, Franz assists Chinese fine china makers to reclaim their past. Although the cooperation may evolve into competition in the future, at present it forms a unique partnership that proves difficult for firms from the West to surmount. LIG offers us a start to pursue a significant local phenomenon with implications for firms beyond greater China. In contrast, focusing on competition alone is likely to miss the point

Title: The Impact of Firm's Cooperative Behaviour on Its Competitive Behaviour: An Empirical Study of the Asia Pacific Region


  • Famara Hyacinthe Sanou, University of Montpellier 1
  • Frédéric Le Roy, University of Montpellier

Abstract: In this research, we present and test a dynamic model of the relationship between the propensity of a firm to cooperate and its competitive behaviour. From a longitudinal analysis of competitive and cooperative actions of 60 mobile telephone operators over a period of six years, we show that the biggest operators, such as China Mobile or China Unicom, are the more competitive. We also show a significant and positive relationship between the propensity to cooperate of the firm and its competitive behaviour. We build upon previous research, by showing the moderating effect of industry concentration and the firm’s presence outside its domestic market on the relationship between cooperate and competitive behaviours.

Title: Uncertainty, Relational Governance and Performance: An Empirical Study on the Exchange Between Agribusiness and Farmers


  • Can Chen, South China Agricultural University

Abstract: Relational governance is often related with high uncertainty, but the researches on their relationship haven’t reached consensus yet. This article argues that uncertainty does not directly affect relational governance, but mediates the relationship of relational governance and exchange performance. With the samples from the exchange between 33 agribusinesses and 507 of their cooperative farmers, we studied how relational governance affects performance and the mediation effects of uncertainty. The results show that, (1) relational governance improves farmers’ satisfaction; (2) uncertainty promotes the positive effect of process-based relational governance to exchange performance; and (3) uncertainty has no positive but even negative effects on the relationship between norm-based relational governance and exchange performance.

Title: You Cannot Have it Both Ways: The Choice Between Growth and Profit in Emerging Markets


  • Nan Zhou, Moscow School of Management

Abstract: This study examines the critical choice between growth and profit for firms from emerging markets. We first argue that pursuing growth requires exploration capability while pursuing profit requires exploitation capability. Since the development of these two capabilities competes for scarce firm resource, there will be a trade-off between pursuing growth and profit. Next, because there are ample growth opportunities in emerging markets for firms to explore and firms in emerging markets generally lack existing resource bases to exploit from, developing exploration capabilities is easier than developing exploitation capability. As a result, firms with existing exploitation capability are more likely than firms with existing exploration capability to achieve profitable growth. We empirically test these ideas in a sample of firms in China.

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