Session Details: Session 1005

Emerging Markets

Track G

Date: Monday, October 13, 2008

 

Time: 17:00 – 18:15

Common Ground

Room: Salon 7


Facilitator:
Mike Peng, University of Texas at Dallas

Title: Achieving Via Adaptive Tension: Evidence from GE’ Performance in Emerging Economies

Authors

  • Mary Han, Ryerson University
  • Bill McKelvey, University of California-Los Angeles

Abstract: Building from the complexity approach used by GE in US, 1981–2001, and archival research on General Electric’s strategy in India and China, we propose that superior performance in emerging economies depends on the firm’s capability to: 1) manage opportunities resulting from imposed adaptive tensions in emerging economies; 2) leverage knowledge created via positive feedback processes; and 3) stabilize the emergent complexity designs in “far-from-equilibrium” positions. We also propose emergent complexity designs as new kinds of dynamic capabilities and/or firms’ inimitable resources leading to superior outcomes. Our findings relate to international management research on transnational corporate strategy in emerging economies, as well as new theory about international new ventures, knowledge, learning and adaptation. Our propositions may be treated as guides for future research.

Title: Comparative Analysis of Strategic Practices of High-tech Firms in China and Poland

Authors

  • Krzysztof Obloj, Kozminski University
  • Garry Bruton, Texas Christian University
  • Chung-Ming Lau, Chinese University-Hong Kong

Abstract: We tested the impact of institutional environment, in different stages of transformational development, on firms’ strategies by studying small and medium high-tech (software and hardware) firms in Poland and China. In particular, we confirmed that Chinese high-tech firms follow more proactively incremental, growth-oriented strategies than Polish firms. We also hypothesized that Chinese firms invest more in upstream activities (R&D, new technologies), while Polish firms invest primarily in downstream activities (marketing and service), and that mature institutional environment enforce more financial and operational discipline on Polish firms than it takes place in China. Finally we confirmed in accordance with ‘industry recipe’ model, that team orientation and dynamics of TMTs in both countries is very similar, in spite of different strategies followed by firms.

Title: Finding Knowledge: The Role of Reputation in Knowledge-Transfer To Chinese Companies

Authors

  • James Robins, WU-Vienna
  • Kathleen Yi Jia Low, WU-Vienna

Abstract: Knowledge-transfer relationships are vital to firms in emerging and transitional economies, but they are challenging. Firms face uncertainties about the knowledge they need and where to find it. We use concepts from the knowledge-based view of the firm and research on reputation to examine knowledge-transfer activities of a sample of Chinese SME manufacturing companies. Findings suggest that the status of potential partner firms can serve as a guide to the distribution of valuable knowledge among them. The study addresses an important gap in research on knowledge-transfer; few studies actually have examined the link between knowledge-transfer and performance (Williams, 2000). It also contributes to the limited body of work that examines emerging economy business from the standpoint of local firms (Hitt et al., 2000).

Title: Institutional Transformation and Strategic Renewal in the Indian Pharmaceutical Industry

Authors

  • MB Sarkar, Temple University
  • Preet Aulakh, York University
  • Sougata Ray, Indian Institute of Management - Calcutta
  • Raveendra Chittoor, University of Victoria
  • Indrajit Mukherjee, XLRI Xavier School of Management

Abstract: We investigate how Indian pharmaceutical firms, facing a discontinuous change in their institutional environment, undertook strategic renewal through accessing international resources and entering foreign markets. Our central thesis is that internationalization of resources and markets constitutes an important driver of renewal of capabilities for local firms from developing economies. Using longitudinal data on 206 Indian pharmaceutical firms from 1995-2004, we find that product market internationalization, which is enabled by a firm’s access to international technological and financial resources, helps firms renew their innovative capabilities and enhance their performance. Further, we find that the impact of these two types of resources on internationalization of product-markets is conditioned by time and business group affiliation. We outline several implications for theory and practice.

Title: Orchestrating Localized Knowledge Co-Creation - Bringing Western and Eastern Perspectives

Authors

  • Johan Wallin, Synocus Group
  • Yuanqiang Zhou, Tsinghua University
  • Ismo Laukkanen, Helsinki University of Technology

Abstract: Today innovation is more than ever top strategic priority. This has also created interest in open innovation. Business ecosystems are seen as sources for innovation. Subsequently the scope of innovation is expanded. Not only product innovations are of interest, but also innovations in operations as well as business model innovations are sought after. A key challenge is how collaboration partners can be motivated and directed for purposeful innovative behavior. Orchestrating innovation becomes a key capability. This paper presents both conceptual and empirical findings regarding how to approach innovation in an eco-system context. It puts particular emphasis on the global – local dimension of the governance of the innovation process by providing an in-depth longitudinal study of a global manufacturing company and its experiences in China.

Title: The Limits of Our Knowledge: Competing in Emerging Markets

Authors

  • Naveen Jain, University of Akron
  • Vikas Kumar, University of Sydney
  • Sumit Kundu, Florida International University
  • Shaker Zahra, University of Minnesota

Abstract: The prominence of emerging economies has challenged our assumptions about the nature of global competition and corresponding strategy. Established global strategy theories have been founded in environments where executives have discretion in decision making, resource allocations, and choosing markets and strategies. These theories emphasized the role of established institutions in shaping the strategic moves companies made in global markets. They have also highlighted the importance of intellectual capital in mapping global strategies. Though emerging economies vary in their structures, they are dominated by poorly developed institutions, dated management systems, and mixed public policy policies. These differences require a different framework for understanding the challenges emerging economies firms (EMFs) face as they internationalize their operations. This paper addresses these issues, contributing to literature on EMFs’ internationalization.

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