The Experts below are selected from a list of 48 Experts worldwide ranked by ideXlab platform
Ying Zhou - One of the best experts on this subject based on the ideXlab platform.
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country specific Advantage firm specific Advantage and multinationality sources of competitive Advantage in emerging markets evidence from the electronics industry in china
International Business Review, 2016Co-Authors: Sumon Kumar Bhaumik, Nigel Driffield, Ying ZhouAbstract:The extant literature on emerging market multinationals (EMNEs) suggest that they derive their Advantages from country-specific Advantages (CSAs) such as economies of scale, as opposed to traditional firm specific Advantage (FSA) such as technology. We use firm level data from the Chinese electronics industry and an empirical methodology that has thus far not been used in the literature to provide clear empirical support for this proposition. Further, we demonstrate that not all emerging market firms can leverage CSAs equally and that EMNEs are better at exploiting CSAs than their non-MNE domestic counterparts. We also demonstrate that developed country MNEs operating in emerging market economies are not as good as leveraging available CSAs as their EMNE competitors, arguably on account of liability of foreignness. Our results have implications for outward investment by emerging market firms as well as for the ability of developed country MNEs to significantly benefit from efficiency-seeking FDI in emerging market economies.
S R H Jones - One of the best experts on this subject based on the ideXlab platform.
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transaction costs and the theory of the firm the scope and limitations of the new institutional approach
Business History, 1997Co-Authors: S R H JonesAbstract:The new institutional approach to the theory of the firm represents a welcome advance over neoclassical theory in that, instead of treating the firm merely as a device to explain equilibrium under different market structures, it delves into the workings of the firm in an effort to understand why enterprises undertake the activities they do and how they grow over time. The theoretical framework for much of the new approach was developed by Oliver Williamson, who argued that firms evolved not because of technological non-separabilities but to economise on transaction costs. The object of this essay is to demonstrate that Williamson's comparative static methodology is ill-suited to explaining how firms actually evolve. It argues that far greater insights are provided by capability- or resource-based theories of the firm, which combine the concepts of transaction costs and Firm-Specific Advantage in order to show that the boundaries of the firm are in fact determined by the non-separability and tacit nature o...
Sumon Kumar Bhaumik - One of the best experts on this subject based on the ideXlab platform.
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country specific Advantage firm specific Advantage and multinationality sources of competitive Advantage in emerging markets evidence from the electronics industry in china
International Business Review, 2016Co-Authors: Sumon Kumar Bhaumik, Nigel Driffield, Ying ZhouAbstract:The extant literature on emerging market multinationals (EMNEs) suggest that they derive their Advantages from country-specific Advantages (CSAs) such as economies of scale, as opposed to traditional firm specific Advantage (FSA) such as technology. We use firm level data from the Chinese electronics industry and an empirical methodology that has thus far not been used in the literature to provide clear empirical support for this proposition. Further, we demonstrate that not all emerging market firms can leverage CSAs equally and that EMNEs are better at exploiting CSAs than their non-MNE domestic counterparts. We also demonstrate that developed country MNEs operating in emerging market economies are not as good as leveraging available CSAs as their EMNE competitors, arguably on account of liability of foreignness. Our results have implications for outward investment by emerging market firms as well as for the ability of developed country MNEs to significantly benefit from efficiency-seeking FDI in emerging market economies.
Alan M. Rugman - One of the best experts on this subject based on the ideXlab platform.
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internal equity financing and the performance of multinational subsidiaries in emerging economies
Journal of International Business Studies, 2015Co-Authors: Quyen T K Nguyen, Alan M. RugmanAbstract:We examine the internal equity financing of the multinational subsidiary which retains and reinvests its own earnings. Internal equity financing is a type of Firm-Specific Advantage (FSA) along with other traditional FSAs in innovation, research and development, brands and management skills. It also reflects subsidiary-level financial management decision-making. Here we test the contributions of internal equity financing and subsidiary-level financial management decision-making to subsidiary performance, using original survey data from British multinational subsidiaries in six emerging countries in the South East Asia region. Our first finding is that internal equity financing acts as an FSA to improve subsidiary performance. Our second finding is that over 90% of financing sources (including capital investment by the parent firms) in the British subsidiaries come from internal funding. Our third finding is that subsidiary-level financial management decision-making has a statistically significant positive impact on subsidiary performance. Our findings advance the theoretical, empirical and managerial analysis of subsidiary performance in emerging economies.
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Fifty Years of International Business Theory and Beyond
Management International Review, 2011Co-Authors: Alan M. Rugman, Alain Verbeke, Quyen T K NguyenAbstract:As the field of international business has matured, there have been shifts in the core unit of analysis. First, there was analysis at country level, using national statistics on trade and foreign direct investment (FDI). Next, the focus shifted to the multinational enterprise (MNE) and the parent’s firm specific Advantages (FSAs). Eventually the MNE was analysed as a network and the subsidiary became a unit of analysis. We untangle the last fifty years of international business theory using a classification by these three units of analysis. This is the country-specific Advantage (CSA) and Firm-Specific Advantage (FSA) matrix. Will this integrative framework continue to be useful in the future? We demonstrate that this is likely as the CSA/FSA matrix permits integration of potentially useful alternative units of analysis, including the broad region of the triad. Looking forward, we develop a new framework, visualized in two matrices, to show how distance really matters and how FSAs function in international business. Key to this are the concepts of compounded distance and resource recombination barriers facing MNEs when operating across national borders.
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the international competitiveness of asian firms
Journal of Strategy and Management, 2008Co-Authors: Alan M. Rugman, Chang-hoon OhAbstract:Purpose – Conventional studies of international competitiveness use country‐level data, but the aim of this paper is to extend this work by using firm level data of large Asian firms.Design/methodology/approach – The authors gathered the regional sales and assets data for large Asian firms listed in latest Fortune Global 500 from their annual reports. They then applied the data to the firm specific Advantage/country specific Advantage matrix and the regional matrix frameworks developed by Rugman.Findings – It is found that most Asian firms do not operate globally, but focus on their home region. Thus, Asian firms exploit and develop their FSAs regionally. Only a few large Japanese and Korean firms have significant sales outside of Asia. Large Asian firms vie with their regional competitors in their home region market.Originality/value – International competitiveness does not necessarily mean globalization or global competition. International strategic management should consider the reality of regional com...
Mats Forsgren - One of the best experts on this subject based on the ideXlab platform.
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in search of centre of excellence network embeddedness and subsidiary roles in multinational corporations
Management International Review, 2000Co-Authors: Ulf Andersson, Mats ForsgrenAbstract:Abstract * In this paper the authors explore the role of a subsidiary as a centre of excellence within the multinational corporation (MNC). It is argued that such a role can be based on the characteristics of a subsidiary's internal resources, its relationships with the rest of the MNC and the business context of which the subsidiary is a part. Based on the perspective of an MNC as a Network the latter aspect is especially focused. Through an analysis of 98 subsidiaries the importance of the subsidiary's embeddedness, in terms of business relationships with specific customers and suppliers for its role as a centre of excellence, is investigated. Key Results * A conceptual result from this paper is that it offers a framework for analysing the role of the business context for the subsidiary's role as a centre of excellence. Productive relationships with external counterparts in the business environment can be used by the subsidiary to enhance its role as a centre of excellence. An empirical result is that the external embeddedness of the subsidiary is an important and significant explanatory variable of the subsidiary's possibilities to be considered important to the MNC as well as a prerequisite to influence the future behaviour of the MNC. Introduction In traditional foreign direct investment theory it is assumed that firms base their internationalisation on specific Advantages created and located at home. These Firm-Specific Advantages make it possible to overcome the disAdvantages associated with carrying out the business activities in foreign markets (Hymer 1976, Kindleberger 1969, Vernon 1966, Buckley/Casson 1976, Johanson/Vahlne 1977, Caves 1982, Hennart 1982, Dunning 1988). But in some of the recent literature about internationalisation, it has been argued that the Firm-Specific Advantage can be located at different places in the organisation, not only in the parent-country (Kogut 1983, Hedlund 1986, Bartlett/Ghoshal 1989, Forsgren 1989). Having different assets in different industrial and commercial contexts is an important driving force for internationalisation as such (Cantwell 1991, 1995, Dunning 1996, Zander/Zander 1997). This new approach to foreign direct investment and the internationalisation process also gives rise to a reformulation of how we look at the structure of the multinational enterprise. Within the former "centre-periphery" view, the firm specific Advantages of the multinational corporation (MNC) are developed and controlled by the parent company, while the foreign subsidiaries exploit these Advantages in the local markets. According to the new perspective, MNCs are considered "multi-centre" structures, where Firm-Specific Advantages also can be located in different subsidiaries (Forsgren et al. 1992). Sometimes the concept "centre of excellence" has been used to describe this new subsidiary role (Surlemont 1996). However, even if the received theory today recognises the existence of "centres of excellence" within the MNC, it tells us very little about why and how they emerge. It has been argued elsewhere that it is difficult to give the concept "centre of excellence" in relation to MNCs a precise definition (Forsgren/Pedersen 1998). For instance, in the literature about product mandates, the possibility for a subsidiary to operate as a full-fledged unit with its own export and R&D is focused (Dhavan et al. 1981, Eteman/Dulude 1986, D'Cruz 1986). Although there is no undisputed definition of what characterises a subsidiary with a product mandate (Fratocchi 1994), most of the literature on product mandate seems to emphasise autonomy rather than interdependence vis-a-vis the rest of the MNC as the crucial factor (Roth/Morrison 1992, Birkinshaw/Morrison 1995). A subsidiary which can function as a quasi-firm in the MNC, because of the independence and completeness of its resources, can also, according to this view, be called a centre of excellence within the corporate family. …