Session Details: Session 1010

Internationalization Strategy

Track G

Date: Monday, October 13, 2008

 

Time: 11:15 – 12:30

Common Ground

Room: Salon 7


Facilitator:
William Newburry, Florida International University

Title: Can CEO Compensation and Power Drive Decisions on the Internationalization of MNCs?

Authors

  • Cheng-li Tien, National Taiwan Normal University
  • Cheng-Min Chuang, National Taiwan University

Abstract: This paper extends agency-based research to examine the role of CEO compensation schemes and their relationship to the internationalization of multi-national corporations. The results indicate that CEO pay at all levels (short-term, long-term, total pay, and pay leverage) is negatively related to firm internationalization. Furthermore, CEO duality can positively moderate the effect of CEO pay at all levels on firm internationalization, and that CEO tenure can positively moderate the effect of CEO total pay on firm internationalization. The findings provide mixed support for the agency perspective on the impact of CEO compensation schemes at all levels to firm internationalization and the moderating impact of CEO power (CEO duality, directorship and tenure). As such, it suggests new avenues of research for corporate governance and firm internationalization.

Title: International Ambidexterity - Developing Third-Order Capabilities for Foreign Market Success

Authors

  • Christiane Prange, Tongji University
  • Sylvie Cellard, EM LYON

Abstract: Strategies of internationalization have long been in the focus of international business and global strategy research. While two of the major theories – process theory and new venture theory – have provided substantial input into selected types of internationalization processes, they have only selectively explained the contradictory results of international growth and profitability. Adopting a dynamic capability perspective, we argue that there are two classes of explorative and exploitative capabilities differentially linked to these output variables. Consistent with the dynamic capability view, we introduce a framework of third-order capabilities in order to maximize internationalization performance. Findings from five case studies are used to examine this framework.

Title: International Professional Service Firms and the Deskilling of the Professions

Authors

  • Susan Segal-Horn, Open University
  • Alison Dean, University of Kent

Abstract: This paper explores the deskilling of the professional within international professional service firms. Our data are drawn from a knowledge-intensive service industry: international corporate law firms. Building the global law firm has increased control through managerial practices and protocols and shifted the balance of knowledge and practice towards the organization and away from the profession. Both deskilled jobs and deskilled workers are occurring within the corporate legal sector. Our data show that non-legal professionals, para-legals and outsourced contractors now play a role in professional service delivery. Outsourcing and off-shoring are creating a new division of labour and a new division of knowledge within professional work. Two parallel trends are occurring: polarization within the profession towards a new professional elite; and an outsourced, deskilled majority.

Title: Local Knowledge and Customization as Determinants of Service-Firm Entry Modes

Authors

  • Susan Storrud-Barnes, Cleveland State University
  • Richard Reed, Cleveland State University
  • Raj Javalgi, Cleveland State University

Abstract: The selling of services in foreign markets is one of the fastest-growing areas of business, and existing theory is ill-suited to providing guidance on how to manage the process. In this work we are concerned with how required local-knowledge and the tacit knowledge embedded in service customization affect a firm’s entry mode into those foreign markets. Much of the extant literature on foreign entry assumes that required local-knowledge always is important, and that customization is either non-existent or, at best, is a constant. Here we assess the effects of the varying degrees of each. Using a local-knowledge-and-customization contingency framework we identify five modes of entry that minimize the service-performance gaps that lead to service failure.

Title: Pre-Acquisition Influences Of Performance And Regulatory Constraint On Cross Border Acquisitions

Authors

  • Stephen Childs, Mabledon Pty Ltd

Abstract: Despite over thirty years of research in demonstration of an association between acquisition strategy type and ex post (after the fact) performance, inconsistent result continue to be recorded. This paper in consideration of a recent sample of Australian acquisitions, where finance literature suggests a cross border discount applies, finds increased performance for regulated industry members who demonstrate high ex ante (before the fact) performance after controlling for acquisition size.

Title: Relation Relevance and Competitive Advantage: Implications for International Strategy in Network Economy

Authors

  • Øystein Fjeldstad, BI Norwegian Business School
  • Jinsong Gao, BI Norwegian School of Management
  • Ulas Burkay, BI Norwegian School of Management

Abstract: We examine how local entrepreneurial network facilitating firms can gain competitive advantage over the dominant international market leaders, even if the latter have the advantage of large network sizes, advanced technologies and well-established brands. We use the value network activities configuration model to diagnose competitive advantage in two China-US paired cases. Our findings point to the relevance of the relations facilitated, rather than the size of the network or brand, for competition in networking services.

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