THE IMPACT OF CORRUPTION AND INSTITUTIONAL RESTRICTIVENESS ON ENTRY STRATEGY: EVIDENCE FROM TELECOMMUNICATION PROJECTS IN DEVELOPING COUNTRIESE
Arash Amirkhany, Pouya Seifzadeh, and Isar Kiani
This research investigates effects of host country corruption and formal and informal institutional restrictiveness on the entry strategies of foreign multinational enterprises. Using data of over 400 telecommunication projects in developing markets between 2005 and 2011, we find that both formal and informal restrictiveness encourage the MNE to enter using an equity-mode with balanced ownership rather than a wholly owned subsidiary or a partnership with large differential in ownership. However, informal restrictiveness is a stronger force than the formal restrictiveness. We theorize and find a triple interaction effect which shows that this effect is stronger at lower levels than higher levels of informal restrictiveness.
LEARNING FROM THE GIANTS: CRITICAL SUCCESS FACTORS FOR PHARMACEUTICAL EMNES FROM INDIA
Sneha Bhat and Kirankumar S. Momaya
Indian pharmaceutical EMNEs, with significant cost competitiveness, have the potential to partially address the vexing problems of global
healthcare industry, including rising cost of the healthcare. In this context, we explore the Critical Success Factors (CSFs) of the pharmaceutical industry, which can help firms focus their resources sharply to break-out faster. Using case study method, we studied two global dominant firms for identifying industry CSFs. Product innovation capabilities emerged as the most important CSF, having the potential to provide competitive advantage for long-term competitiveness of the firms. Other two factors that emerged as CSFs are marketing capabilities and financial capabilities. The study contributes to the literature by linking the success factors to firm capabilities and also specifically to international business literature of EMNE capability building. The study also has implications to practitioners in strategic decision making.
A NEW PERSPECTIVE ON CHINA'S OUTWARD FOREIGN DIRECT INVESTMENT: THE HYPOTHESIS OF SUPER-OWNERSHIP ADVANTAGE
Feihu Zheng, Wenyan Yin, and Zhiwei Niu
This paper proposes the hypothesis of “super-ownership advantage” for China’s outward foreign direct investment (OFDI). This study incorporates the mainstream FDI theories, extended theories proposed by East Asian scholars, and new institutional economics. We argue that under an uncertain environment, when firms can deal with “normal risks” and external barriers within their capabilities, OFDI based on static and dynamic advantages and country-specific advantages will be effective. On the other hand, when firms cannot overcome “abnormal risks” and barriers within their capabilities, they will pursue OFDI based on a hybrid governance mode, which includes “market” governance. These findings provide practical and meaningful implications for explaining OFDI by Chinese firms and the strategic guidelines for the synergistic interaction between business and government.
IMPACT OF EXPORT PROMOTION PROGRAMS ON EXPORT PERFORMANCE: REVIEW OF INDIAN CLASSICAL LITERATURE WITH SPECIAL REFERENCE TO ECONOMIC REFORMS
Rashmi Arora and Rakesh Joshi
In Indian context, contours of exports promotion as a result of eventual liberalisation of trade policies during the pre and post economic reforms have been captured by several eminent scholars at the macro as well as micro level. However, exclusive studies pertaining to impact of export promotion programs on India’s export performance are very limited. To develop the understanding about the same, existing literature relating to impact of government promotional measures on export performance has been extensively reviewed in three broad categories. Based on the findings of research work, a structuralized summary and gaps in literature are identified to set the agenda for the future research and conceptual framework in the said area.
ARE VIETNAMESE BUSINESSES READY FOR A CRISIS? AN ANALYSIS OF CRISIS READINESS AMONG VIETNAMESE BUSINESSES
Talha Harcar and John E. Spillan
Crisis management is a management function that tries to mitigate the impact of crisis events when they occur in a business or organization. Since crises are inevitable, it is important that businesses and organizations have crisis management plans ready for the eventuality of a crisis. Little has been written about crisis in emerging nations. As such, this exploratory study investigates the perceptions and experiences of Vietnamese managers regarding crisis preparedness. The results indicate that a majority of the organizations do not have formal crisis management plans. The results of this study suggest that crisis planning at both the organizational and individual level are needed among Vietnamese businesses.