control and performance of international joint ventures control is a critical concept for successful management and performance of international joint ventures ijvs this paper reviews and synthesizes prior studies addressing the conceptualization and operationalization of control within ijvs as well as the ijv control performance relationship the paper also presents a new conceptualization of ijv control as well as a conceptual frame work for studying control of ijvs

foreign entry cultural barriers and learning this paper examines the longevity of foreign entries hypotheses are developed on the mode start ups vs acquisitions and ownership structure wholly owned vs joint ventures in relation to cultural distance the hypotheses are tested within a framework of organizational learning using data on 225 entries that 13 dutch firms carried out from 1966 onwards results show that the presence of cultural barriers punctuates an organization s learning cultural distance is a prominent factor in foreign entry whenever this involves another firm requiring the firm to engage in double layered acculturation we also identify locational paths of learning the longevity of acquisitions is positively influenced by prior entries of the firm in the same country similarly the longevity of foreign entries in which the firm has a majority stake improves whenever the expanding firm engaged in prior entries in the same country and in other countries in the same cultural block

geographic diffusion and the transformation of the postcommunist world since the collapse of communism the states of postcommunist europe and asia have defined for themselves and have had defined for them two primary tasks the construction of viable market economies and the establishment of working institutions of representative democracy the variation in political and economic outcomes in the postcommunist space makes it without question the most diverse region in the world what explains the variation all of the big winners of postcommunism share the trait of being geographically close to the former border of the noncommunist world even controlling for cultural differences historical legacies and paths of extrication the spatial effect remains consistent and strong across the universe of postcommunist cases this suggests the spatially dependent nature of the diffusion of norms resources and institutions that are necessary to the construction of political democracies and market economies in the postcommunist era the authors develop and adduce evidence for the spatial dependence hypothesis test it against rival hypotheses and illustrate the relationships at work through three theoretically important case studies

economic reforms and democracy evidence of a j curve in latin america this article explores the relationship between economic reforms and democracy in latin america between 1970 and 1995 existing theories suggest divergent effects across time horizons the implementation of reforms economic liberalization may initially destabilize democracy due to popular backlash or overzealous reformers usurpation of democratic institutions however the potential outcome of reforms greater economic liberalism may later foster or reinforce democracy by dispersing economic assets making rulers more susceptible to international constraints or demobilizing social groups that may otherwise make politically destabilizing redistributive demands time series cross section analyses using an error correction model provide evidence of this j curve relationship although countries engaging in economic reforms may experience a temporary deterioration of democracy they tend to become more democratic in the long run findings are robust to numerous control variables country and time fixed effec

what moves policy sentiment in spite of the fact that political eras in the united states are widely and often ambiguously defined in terms of a general policy sentiment or mood political scientists have done little in the way of rigorous analysis regarding this subject i argue that shifts in domestic policy sentiment along a liberal conservative continuum may be understood in part as responses to changing economic expectations specifically expectations of a strong economy result in greater support for liberal domestic policies whereas anticipation of declining economic conditions pushes the national policy mood to the right using quarterly data for the period 1968 88 i present a multiple time series error correction model that lends considerable support to the hypothesis

bundling as a facilitating device a reinterpretation of leverage theory tying good monopolists that extract full consumer surplus from independent sales of their tying good may nevertheless choose to bundle in order to induce a favorable response by their tied market rivals in particular bundling may facilitate supracompetitive prices for the tied good copyright 1991 by the london school of economics and political science

patterns of transition from plan to market patterns of transition from plan to market martha de melo cevdet denizer and alan gelb hungary s bankruptcy experience 1992 1993 cheryl w gray sabine schlorke and miklos szanyi why and when do governments initiate public enterprise reform jose edgardo campos and hadi salehi esfahani roads land use and deforestation a spatial model applied to belize kenneth m chomitz and david a gray industrial centralization in indonesia j vernon henderson and ari kuncoro guidlines on searching for a dalton improving tax reform an illustration with data from indonesia shlomo yitzhaki and jeffrey d lewis a new data set measuring income inequality klaus deininger and lyn squire

swallowing the bitter pill sources of popular support for neoliberal reform in latin america what accounts for the surprisingly widespread popular approval that painful neoliberal reforms elicited in several latin american countries this article compares the explanatory power of two rival hypotheses which draw on conventional rational choice and psychological decision theory the compensation hypothesis claims that governments can engineer support for costly reforms by compensating the losers through targeted social benefits the rescue hypothesis questions this claim and maintains that draconian adjustment only finds support if it promises to revert a deep crisis and avert further losses data from argentina bolivia brazil mexico peru and venezuela suggest that the rescue hypothesis accounts much better for the initial endorsement of neoliberal shock programs immediately after their enactment when these shock programs bring about economic stabilization and recovery targeted social benefits help consolidate support for neoliberalism which a statistical analysis of the impact of social s

will a second mouse get the cheese learning from early entrants failures in a foreign market we examine the conditions that can facilitate or hinder the effectiveness with which a new entrant learns from the failures of prior entrants by analyzing the experiences of 822 japanese subsidiaries in china founded between 1979 and 2000 our conceptual arguments and empirical findings demonstrate that learning from the failure experiences of prior entrants increases a new entrant s survival chances when entering china further we find that the value of this learning is less effective when there is a greater level of heterogeneity in the causes of these failures however this learning is more effective when a new entrant s parent firm has ownership ties with investors who had ventures that failed previously in china

performance and survival of joint ventures with non conventional ownership structures the international joint venture jv literature has focused on two parent jvs formed between one foreign and one local firm yet other types of jvs exist this paper identifies four distinct forms of jvs based on the jv partners nationality and equity affiliation these are i jvs that are formed between affiliated home country based firms ii jvs that are formed between unaffiliated home country based firmsl iii jvs that are formed between home country based and local firms and iv jvs that are formed between home country and third country based firms our analysis of 737 japanese jvs in asia demonstrates that the conventionally assumed form of jv represented only 30 percent of the total further each of the four jv forms significantly differed in terms of incidence performance and survival likelihood

democratization and economic liberalization in the postcommunist world how does economic liberalization affect political regime economic liberalization is widely regarded as inimical to democratization the washington consensus which generally endorses shock therapy and envisions a basic compatibility between economic liberalization and democratization is widely disdained in social science many scholars hold that neoliberal economics depresses popular living standards and exacerbates socioeconomic inequalities thereby compromising democratization focusing on the postcommunist region this article tests this hypothesis it examines the data that have been used to assess the relationship between economic liberalization and political democratization and presents analyses using more appropriate and differentiated techniques the authors find that economic liberalization advances rather than undermines democratization using engle granger analysis they find that although economic liberalization has no discernible impact on democratization in the short term democratiza

parchment equilibria and institutions institutions are rules that constrain political behavior although there is consensus that being written down is neither necessary nor sufficient for an institution to be effective much research on comparative institutions focuses on formal parchment institutions this article argues that parchment can contribute to the generation of shared mutual expectations among political actors which are essential to the effectiveness of institutions next the article distinguishes between research that emphasizes the role of institutions in aggregating preferences into political decisions and research that relies on coordination models to identify conditions favoring certain equilibrium outcomes when multiple equilibria are possible the article notes the increasing prominence of such coordination models in research on comparative institutions and concludes with some reflections about the prospects for this trend to foster connections between institutional analysis and the field of comparative politics more bro

tying foreclosure and exclusion in recent years the leverage theory of tied good sales has faced heavy and influential criticism in an important sense though the models used by its critics are actually incapable of addressing the leverage theory s central concerns here the author reconsiders the leverage hypothesis and argues that tying can indeed serve as a mechanism for leveraging market power the mechanism through which this leverage occurs its profitability and its welfare implications are discussed in detail copyright 1990 by american economic association

the effect of national culture on the choice of entry mode characteristics of national cultures have frequently been claimed to influence the selection of entry modes this article investigates this claim by developing a theoretical argument for why culture should influence the choice of entry two hypotheses are derived which relate culture to entry mode choice one focusing on the cultural distance between countries the other on attitudes towards uncertainty avoidance using a multinomial logit model and controlling for other effects the hypotheses are tested by analysing data on 228 entries into the united states market by acquisition wholly owned greenfield and joint venture empirical support for the effect of national culture on entry choice is found

comparative democracy the economic development thesis in comparative politics an established finding that economic development fosters democratic performance has recently come under challenge we counter this challenge with a dynamic pooled time series analysis of a major but neglected data set from 131 nations the final generalized least squares autoregressive moving averages estimates n 2 096 appear robust and indicate strong economic development effects dependent in part on the nation s position in the world system for the first time rather hard evidence is offered on the causal relationship between economics and democracy according to granger tests economic development causes democracy but democracy does not cause economic development overall the various tests would seem to advance sharply the modeling of democratic performance

does high income promote democracy the authors construct a statistical model with which to test whether the regularity that democracy is more commonly found among wealthy countries stems from a democratizing effect of high income or is due entirely to other factors such as the historical context various features of the institutional setting and simultaneity with the process of leadership change even after correcting for these many other influences the democratizing effect of income remains as a statistically significant factor promoting the emergence of democratic political institutions the authors go on to find that leaders risks of losing power rise during their time in office and that these risks are higher in more democratic countries the authors confirm the finding by burkhart and lewis beck that the democracy promoting effect of income is stronger among the european countries they suggest that high income has a more powerful democratizing effect among the southern european countries because it interacts with pressure from major trading partners to democratize this suggests a revaluation of policies designed to foster the replacement of authoritarian regimes by democratic ones through free trade

comparative democratization big and bounded generalizations comparative studies of democratization have produced two types of generalizations those having nearly universal application and those applying to a range of countries within a region in the first category are such arguments as the role of high levels of economic development in guaranteeing democratic sustainability the centrality of political elites in establishing and terminating democracy and deficits in rule of law and state capacity as the primary challenge to the quality and survival of new democracies in the second category are contrasts between recent democratization in post socialist europe versus latin america and southern europe for example in the relationship between democratization and economic reform and in the costs and benefits for democratic consolidation of breaking quickly versus slowly with the authoritarian past the two sets of conclusions have important methodological implications for how comparativists understand generalizability and the emphasis placed on historical versus pr

a strategic motivation for commodity bundling the analytical literature on commodity bundling explains the practice of selling two or more differentiated products in a single package as a surrogate for direct price discrimination in contrast this paper shows that imperfect competition creates a strategic incentive to bundle the profitability of bundling whether it adversely affects rival producers and whether it yields an overall efficiency gain depends inter alia on the nature of product market competition the role of complementarity in explaining why firms bundle is also explored copyright 1990 by blackwell publishing ltd

the political foundations of post communist regimes marketization agrarian legacies or international influences this article explores the causes of differing post communist regime transitions in eastern europe and the former soviet union emphasizing the increasingly prominent thesis that economic liberalization promotes political democratization we explore this argument in light of findings from other regions that have emphasized modernization agrarian class structure and international influences our results are based on a multilevel design strategy first analyzing data on 26 post communist countries over a 7 to 9 year period using time series cross sectional methods and then turning to a comparative analysis of four purposively selected cases to explore the causal mechanisms implied but not tested in the quantitative analysis our results suggest that faith in economic liberalization as a cause of democratization may be misplaced however there is support for the notion that large agrarian sectors are unfavorable to democratic development whereas positive democratic conditionality from outside agents can p

adjusting to and learning from institutional diversity toward a capability building perspective this paper identifies two main dimensions institutional diversity and dynamism in the research stream that has substantively engaged with the important contribution of jackson and deeg j int bus stud 39 4 540 561 2008 taking into account their core criticism that institutional analysis in international business research is often de contextualized and building on these two dimensions we present two possible paths for institutional analysis that are sensitive to context the first is a methodological shift towards configurational analyses and specifically the analysis of counterfactual scenarios that could reveal new information about decision alternatives the second is a shift away from a focus on costs and towards the possibility of mnes building capabilities in an exploratory manner when confronted with institutional diversity both approaches build on an understanding of mnes as strategic actors that co evolve with their environments

political repression and economic doctrines the case of argentina recent studies linking political repression to free market economic policy have failed to explain fully the relationship to uncover important theoretical linkages this article will examine the principles behind policy and argue that increases in governments use of force are principally a function of 1 shifts in economic stabilization doctrines from structuralist to orthodox which are prompted by severe economic crises and 2 strengthened alliances between ruling elites and international financial institutions partial to orthodox deflationary strategies multiple regression analysis on time series data from argentina over a 23 year period provides a strong statistical confirmation for these suppositions even when holding constant for particular regime types a historical narrative has been provided to buttress these results by establishing the precise timing and sequence of events that precipitated the use of coercion by state leaders

ascap versus bmi versus cbs modeling competition between and bundling by performance rights organizations andrew n kleit bundling has been a long standing issue in industrial organization in recent years bundling has gained renewed controversy as it has been employed by computer software manufacturers this article examines bmi v cbs 1979 which dealt with bundling by performance rights organizations pros a model of competition between pros using blanket licenses is presented the usage of blanket licenses is shown to generate both higher profits for pros and higher costs for the users of musical compositions when there are a small number of competing pros in addition the model explains why blanket licenses are observed in unregulated pro markets jel l41 k21 i introduction the question of bundling has been a longstanding issue in industrial organization economics dating back at least to stigler 1963 this article looks at bundling in the context of the famous antitrust case bmi v cbs 441 u s 1 1979 the defendants in the case were two performance rights organizations pros the american society of composers and publishers ascap and broadcast music inc bmi pros monitor the usage of copyrighted songs by users of music collect fees from those users and pay member composers whose songs are played pros have historically offered blanket licenses where for a certain fixed fee a station can use all the music in a pro s catalog blanket licenses are thus equivalent to bundling or block booking at issue in the case was cbs s petition to require pros to switch from offering blanket to per use licenses where a station would pay per usage for each composition here i will model competition between pros using either blanket or per use licenses pros will compete against each other both for the compositions of songwriters and for offering their products licenses for compositions to producers of television programs i will show the circumstances under which the usage of blanket licenses generates higher profits for the pros and or higher costs for the users of musical compositions i will also show which license is likely to arise in equilibrium helping explain why cbs felt compelled to sue bmi of which it was a part owner as well as the reluctance of ascap to issue attractive per program licenses as an antitrust consent decree nominally requires it to do bundling in general and the economic questions raised by the bmi case are staples in the economics of industrial organization and antitrust see for example kaserman and mayo 1995 173 4 yet up to this time there has apparently been little modeling of bundling of several products by competing firms in addition there has been little written on competition between pros an important exception being besen et al 1992 even that article does not formally examine the competition between pros and the differentiated products they sell to their users this article attempts to fill this void the remainder of the article is organized as follows section ii briefly describes the origins of the major pros and the questions raised by the bmi litigation section iii generates a market equilibrium for pros using blanket licenses section iv generates an equilibrium using per use licenses and compares that equilibrium to the one derived in section iii section v discusses which form of license will arise in equilibrium and section vi contains some concluding remarks ii the origins of pros and the cbs litigation the origins of pros pros exist because of the following problem copyright owners of compositions have property rights to their material and therefore no one is allowed to use that material without the payment of agreed on fees thus any time a copyrighted song is played for commercial purposes the copyright owner is entitled to compensation but it would be very costly for live theater owners and later radio and television stations to locate and pay the copyright owner of each score just as it would be very difficult for copyright owners to monitor users to determine if their compositions are being played

the simplicity of competitive repertoires an empirical analysis this research explores the notion of competitive simplicity a tendency of some firms to concentrate intensely on just a few central activities our focus here is the simplicity inherent in the repertoire of concrete market oriented actions used by companies to compete these actions include product introductions pricing or advertising decisions and changes in market scope the simplicity of a competitive repertoire can be assessed by its range of actions and its degree of concentration on one or a few dominant types of actions we argue that competitive simplicity is largely a function of organizational and environmental properties that attenuate managerial search or restrict knowledge of competitive alternatives these properties include good performance munificent homogeneous or certain markets a lack of breadth in competitive experiences and the complacency that may accompany age and size paradoxically although good past performance may contribute to simplicity simplicity can hurt subsequent performance especially during periods of uncertainty and growth many of these ideas were borne out in a study of the major carriers of the post deregulation domestic airline industry

why no backsliding the european union s impact on democracy and governance before and after accession this article documents and explains the puzzling lack of backsliding in political reforms among the new postcommunist eu members even though these countries are no longer subject to the powerful incentives of the eu membership promise using a combination of cross national statistics expert interviews and public opinion data the authors show that the new eu members have experienced at most a slowdown in reforms rather than a genuine backlash the authors attribute this finding to the fact that the loss of leverage after the countries joined the european union was balanced by a combination of alternative leverage and linkage mechanisms including greater dependence on eu aid and trade and greater exposure to the west for both elites and ordinary citizens for the latter expanded work and travel opportunities seem to be associated with higher expectations of government performance and greater political involvement which may be crucial for future governance reform in the region

confidence in imitation niche width strategy in the uk automobile industry our study examines the imitation behavior of uk automobile manufacturers from 1894 to 1981 and supports previous studies on interorganizational imitation by showing that manufacturers tend to imitate other manufacturers that are similar we also find that the degree of confidence manufacturers have in their imitating behavior affects the intensity of that behavior where an organizations confidence is determined by the variance of the routines used by its reference group and the number of firms in the reference group our results show that 1 manufacturers whose reference groups showed large variance in niche width changes during the previous year are less likely to imitate the mean of those changes 2 manufacturers who have large reference groups are more likely to imitate the changes and 3 the negative effect of variance on the imitating behavior is strengthened as the number of reference organizations increases

the effect of own firm and other firm experience on foreign direct investment survival in the united states 1987 92 we argue that foreign firms operating in a host country generate information spillovers that have potential value for later foreign direct investment we test two predictions first we expect foreign direct investments by firms with experience in a host country to be more likely to survive than investments made by first time entrants second foreign direct investments will be more likely to survive the greater the foreign presence in the target industry at the time of investment subject to two contingencies the first contingency is that the relationship will be weak or nonexistent among firms with no experience in the host country because these firms have difficulty evaluating and taking advantage of the information spillovers the second contingency is that the presence of other foreign firms will not affect investment survival among firms that already have a presence in the target industry and undertake expansion these firms already possess general information about the target industries and are unlikely to gain additional benefit from information spillovers we find supportive evidence based on the survival to 1992 among 354 u s investments undertaken by foreign firms in manufacturing industries during 1987 1997 by john wiley sons ltd strat management j vol 18 811 824 1997 no of figures 1 no of tables 3 no of references 35

developed country mnes investing in developing economies progress and prospect this study reviews research from 1970 through 2016 on developed country multinational enterprises dmnes entering and competing in developing economies to identify the current state of knowledge of this research and push it further we review the literature using bibliometric and qualitative content analyses covering leading journals and books we articulate frontier issues that are understudied yet critical to both theorization and practice of dmnes in developing economies we discuss the findings and conclusions from prior research along five key areas 1 entering developing economies 2 organizing local activities 3 managing alliances and joint ventures 4 competing in dynamic environments and 5 dealing with institutions governments and society we offer prospective insights into future agenda that have important implications for mne strategies and decisions and propose frontier directions that encompass strategic localization reverse transfer and adaptation co evolution with local business ecosystems reorganizing and restructuring and strategic responses to institutional and market complexity

commodity bundling by single product monopolies consider two products that have independent demands in the sense that all individual buyers consider them neither substitutes nor complements then if the two products are priced separately the demand for either is independent of the price of the other in his classic analysis of block booking of feature films george stigler shows that it may be profitable for a monopoly seller of two such products to bundle them by requiring a buyer to take both in order to get either his work provides a rationale for tying arrangements that does not depend on technological or other dependencies among the products involved 2 adams and yellen extend the analysis of multiproduct monopoly with independent demands 3 they discuss two different bundling strategies pure bundling in which the seller only offers the products in fixed proportions and mixed bundling in which buyers may either buy the products separately or purchase a bundle with fixed proportions of each in this note i consider a single product monopoly and investigate the profit and welfare implications of bundling its product for some other

political choice public policy and distributional outcomes i address the functioning of the u s governing system by analyzing distributional outcomes from 1947 to 2000 the key question is whether public policy influences distributional outcomes the macropolitics model and power resource theory suggest that left policies should equalize the distribution of income i utilize single equation error correction models to assess the impact of policy on income inequality through two mechanisms market conditioning and redistribution since nearly every government action influences markets in some way i examine policy in the aggregate rather than focusing only on policies explicitly designed to redistribute income the analysis indicates that policy influences inequality through both mechanisms with left policy producing more equality the results are consistent with power resource theory and strongly support the macropolitics model furthermore i find that market conditioning is as important as and works in tandem with explicit redistribution

opportunity and constraint organizations learning from the operating and competitive experience of industries organizational learning is central to a number of strategic theories recent arguments however identify risks associated with learning from own experience in the form of overattention to the short term and local conditions the experience of the industry may offer opportunities for organizational learning that the experience of the organization does not because industry experience is more varied and not tied to the path dependent history of any one organization we investigate the influence of own experience and of two types of industry experience on the failure rates of u s hotel chains the two types of industry experience are operating experience which is a discounted sum of the units operated by u s hotel chains in the history of the industry and competitive experience which is a discounted sum of the number of failures of u s hotel chains in the history of the industry we find that a organizations initially benefit from their own experience but are harmed in the long run b generalist organizations are more weakly affected by their own experience than specialists c organizations benefit from their industry s operating experience accumulated both before and after the organization s entry and d organizations benefit from their industry s competitive experience but only after the organization s entry 1997 by john wiley sons ltd

distributional coalitions and the politics of economic reform in latin america for much of the discipline of economics a closed economy is seen as the result of efforts of distributional coalitions and rent seekers to maintain sector specific protections accordingly economic liberalization is explained by the policy consistency of uncompromising reform elites students of the politics of economic adjustment in the developing world in turn have argued that reform programs concentrate costs in the present and disperse benefits in the future hence losers are prepared to engage in collective action whereas prospective winners facing uncertainty about payoffs remain disorganized they thus posit the cohesiveness and insularity of policymakers as the main variable for explaining successful reform both economists and political scientists therefore adopt a collective action approach that overlooks how groups organize in support of liberalization in the recent latin american experience however these reforms have preserved market reserves for firms that provided vital political support to and often colluded with policymaking elites this setting has thus reproduced incentives for rent seeking behavior even in the presence of comprehensive liberalization this evidence supports two interrelated theoretical claims first distributional coalitions may proliferate when the state withdraws from the economy not only when it intervenes second interest based variables retain explanatory power in political economy which state autonomy arguments disregard irrespective of whether the economy is closed or open which neoclassical perspectives overlook to highlight the centrality of interest groups favoring marketization therefore the article suggests modifications to the dominant theories of collective action and the literature on the politics of economic adjustment

do pro market economic reforms drive human rights violations an empirical assessment 1981 2006 liberals argue that economic policy reforms will benefit most in terms of better access to goods less inflation and better economic opportunities critics of market reforms among them marxists critical theorists skeptics of globalization as well as a large portion of the ngo community see the majority as losers from such reform expecting resistance that would lead to political repression they suggest that free market policy reforms are analogous to swallowing the bitter pill we make use of the change in the index of economic freedom as a measure of market liberalizing reforms employing data from a panel of 117 countries for the period from 1981 2006 our results show a strong positive association between reforms towards more free markets with regard to governments respect for human rights controlling for a host of relevant factors including the possibility of endogeneity the results are robust in relation to sample size alternative data and methods and a sample of only developing countries and they are substantively quite large our results support those who argue that freer markets generate better economic conditions and higher levels of social harmony and peace and it seems as if getting there is less problematic than people generally think in fact halfhearted measures and backsliding that prolong crises could be more dangerous to human rights