Session Details: Session 1002

Competing in a Global Economy

Track G

Date: Monday, October 13, 2008


Time: 15:30 – 16:45


Room: Salon 23

Session Chair:
Kamel Mellahi, University of Warwick

Title: Firms’ Strategies In Networked Systems: Winning The Standard Game


  • Farah Abdallah, Swiss Federal Institute of Technology-Lausanne

Abstract: As more and more products work in conjunction to form networked systems, compatibility standards play a bigger role in strategy. Research has been organized around three main questions. Why some firms choose to introduce compatible products with its competitors? When should the firms introduce the standard? How should the firm establish the standard, through the market or through standardization committees? In course of reviewing the literature, we identify the gaps and indicate some future empirical and theoretical work to be explored. The empirical part of this paper draws on a case study of the so-called International Postal System (IPS) standard. IPS is a standard which was developed in 1995 by the Postal Technology Center of the Universal Postal Union. The case analysis will solely focus on why firms choose to collaborate to set a standard through committees, and how they strategize to reach a consensus.

Title: How Does National Antagonism Affect Managerial Decision Making?


  • Ilgaz Arikan, Kent State University
  • Oded Shenkar, Ohio State University

Abstract: How does animosity between nations affect managerial decisions in selecting potential partners to form strategic alliances and/or choose targets for M&As? We constructed a large sample panel data of all countries and their verifiable conflicts between 1816-2001, and matched it with SDC alliance, as well as the M&A dataset for the entire population between 1988-2003. We find that managers are inclined to select partners from favorable nations, and managers from enemy nations declined to cooperate with potential partners regardless of the potential rewards given that conflict in partners’ histories existed. Our findings conflict with the traditional internationalization theories and models of selection and retention of alliance partners, and heuristics describing the optimal target identification in the international M&A literature.

Title: Increasing Openness: The Co-evolution of MNEs' Innovation Strategies, Locations and Business Networks


  • Lucia Piscitello, Polytechnic University of Milan
  • John Cantwell, Rutgers University

Abstract: The recent shift toward internationally integrated strategies and complex systems of distributed innovation within MNEs entails the evolution of (a sub-set of) their subsidiaries from a competence-exploiting role, where they simply adapt competencies from the parent company to the local context, to a more explorative and competence-creating role. Previous literature suggests that whether a subsidiary achieves a competence-creating role depends on the qualities of location, and on the ability of the subsidiary to become embedded in the local business networks. Relying on the framework of the open innovation paradigm, we argue that the MNE corporate trend toward greater openness co-evolve with both the local business networks, in which sub-units of MNEs are involved, and the locations towards greater international openess/connectedness.

Title: Industry Architectures and Globalization: Institutional Modularity, Value Chain Similarity and Ease of Foreign Expansion


  • Michael G. Jacobides, London Business School
  • Alina Kudina, University of Warwick

Abstract: Much research to date on international expansion has focused on the methods through which firms expand, and the relative difficulties of international expansion. Far less attention has been paid to why some industries seem more amenable to globalisation than others, and why some firms fail to ‘export’ the competitive advantage they enjoy at home. This paper looks beyond these ‘company’ and ‘country’ perspectives to focus on industry architectures, or the comparative structures of value chains in different countries. Value chains and industries evolve independently through path-dependent processes, hence the modularity or integration of the value chain and the nature of supplier and partner relationships can vary widely between countries. We summarise this logic in a set of hypotheses which we will be subsequently testing.

All Sessions in Track G...

Sun: 10:00 – 11:30
Session 1503: Explaining Knowledge Flows within the MNC: Organizational vs. Individual-Level Perspectives
Sun: 13:00 – 14:30
Session 1603: Internationalization among Financial Service Firms
Sun: 15:00 – 16:30
Session 1703: Exploring the Limits of Corporate Social Responsibility
Mon: 11:15 – 12:30
Session 1010: Internationalization Strategy
Mon: 15:30 – 16:45
Session 1002: Competing in a Global Economy
Mon: 17:00 – 18:15
Session 1000: Knowledge Flows in MNCs
Session 1005: Emerging Markets
Tue: 11:15 – 12:30
Session 1003: International Knowledge Diffusion
Session 1110: Social Issues in International Business
Tue: 14:30 – 15:45
Session 1001: MNC Structure
Session 1009: Under Assault: How Companies Can Fight Organized Crime
Wed: 10:00 – 11:15
Session 1004: Foreign Entry Modes
Wed: 11:30 – 12:45
Session 1008: The Impact of Climate Change: Lessons from the Field
Session 1084: Internationalization of Research and Development (R&D)

Strategic Management Society

Cologne Conference