GUEST EDITORS' INTRODUCTION
Carlos O. Trejo-Pech and John F. Manley
THE INTERACTION BETWEEN CONSUMER PREFERENCE AND PRODUCT ETHICS: IMPLICATIONS ON COFFEE TRADE IN CHINA
Ping Qing, Wuyang Hu, and Yun Liu
This study examines consumers’ ethics concerns on their product choices in the context of coffee in China. Using an in-person survey, an interval regression technique was used to elicit willingness to pay. Respondents were randomly assigned to one of three different information scenarios including product ethics: basic definition, impact on sustainability and the environment, and information including both environmental and social implications. Results indicated that information played an important role in determining what types of consumers were responsive to ethical production. Furthermore, the amount of information provided and consumer willingness to pay did not follow a linear relationship.
HOW CHINESE "SNAKE" SWALLOWS WESTERN "ELEPHANT": A CASE STUDY OF LENOVO’S ACQUISITION OF IBM PC DIVISION
Shijia Zhou and Xueli Huang
Chinese Cross-Border Mergers & Acquisitions (CBMA) have accounted for a majority of Chinese outward direct investment (OFDI) and thus received much academic attention in recent years. Along with China’s integration with global economies, hundreds of Chinese companies have become multinational corporations (MNCs). Equipped with little internationalisation experiences and resources, Chinese MNCs not only struggle to survive intense competition, but also hunt for new opportunities in the global market. As late comers, Chinese MNCs have faced various problems and challenges, particularly in acquiring Western enterprises. Taking the deal of China’s Lenovo acquisition of IBM PC department (PCD) as a case, this paper offers insights into the specific features and characteristics behind Chinese CBMA. The study reveals Lenovo’s unique integration process and thus contributes to the theoretical development of CBMA literature. This study also evaluates the overall performance of Lenovo before and after acquisition of IBM PCD by using both subjective and objective measures.
ADVERTISING AND CONCENTRATION IN THE BREWING INDUSTRY
Erik Strøjer Madsen and Yanqing Wu
The paper tracks the development in industry concentrations from 2002 to 2012, discusses some of the main drivers behind this development and points to economies of scale in advertising as a main pay-off from mergers and acquisitions. Using firm-level data both from the American market and the world market, the estimations verify significant economies of scale in marketing and distribution costs. Based on information from the annual reports of the eight largest breweries, the estimation proved a reduction in these costs of 10% when doubling the size of the brewing groups.
THE IMPACTS OF INFORMATION SHARING AND LOWER-TIER SUPPLIER SELECTION PROCESS ON THREE KEY ELEMENTS OF LOWER-TIER SUPPLIER VISIBILITY OBJECTIVES
Festus Olorunniwo, Joel Jolayemi, Chunxing Fan, and Xiaoming Li
The purpose of this research is to investigate the impacts of information sharing and lower-tier supplier selection processes on three key elements of lower-tier supplier visibility objectives. Data was collected from a survey of 74 companies and through interviews with 19 industry executives from 15 companies. The analyses of the data show that both the information sharing and lower-tier supplier selection process/approaches are correlated with three key elements of lower-tier supplier visibility objectives, namely: relationships with lower-tiers, lower-tier risks, and lower-tier performance. The analyses also show that most of the information sharing processes/activities and lower-tier supplier-selection approaches are considered to be important by company executives surveyed and interviewed.
THE TRANSFORMATION OF THE TEXTILE AND APPAREL SECTOR IN MEXICO AFTER NAFTA
Raúl Vázquez López
Based on the preparation of a database that estimates production output numbers, working hours, and their ratios for 5 branches and 27 categories of economic activity, this article analyzes the evolution of the textile and apparel industry in Mexico in the 1994-2008 period. A shift-share type methodology reveals that the incipient process of upgrading following the signing of NAFTA has had mixed results and was not based on a generalized technological transformation, while the use of ECLAC’s Competitive Analysis of Nations methodology for the top twenty export products in 2008 showed a sharp loss of competitiveness in the 2001-2008 period.