in search of appropriate methodology from outside the people s republic of china looking in choosing a methodology determines what we can study as well as the range of possible results and conclusions this study took an instrument that had been developed in the west and used extensively in europe and north america to investigate managerial behavior in the people s republic of china for a number of reasons it failed to produce a valid and reliable description of chinese managerial behavior this paper investigates some of the methodogical issues involved in extending western organizational knowledge to the east it raises some fundamental questions about being outside looking in

nonrenewable resources with switching costs abstract this paper considers a firm s decision to commence or to suspend extraction of a nonrenewable resource when there are start up or shut down costs for a given level of reserves the critical price that would cause an inactive mine to be opened exceeds the price that would induce an active mine to be closed as one would expect greater switching costs cause firms to be less inclined to change status this impact can be substantial even for modest switching costs possible implications of switching costs are considered including the potential for firms to abandon mines with economically valuable remaining reserves

does culture affect behavior and performance of firms the case of joint ventures in china this study applies a resource based view of the firm to analyze data from a sample of 898 joint venture firms in china including both joint ventures established by overseas chinese and by firms from western cultures it is hypothesized that culture could influence the timing of entry of joint ventures their investment preferences and performance anovas and regressions were conducted and the results suggest the impact of cultural as well as technological resources this paper concludes with a discussion on the implications of the findings

tension and trust in international business negotiations american executives negotiating with chinese executives the purpose of the study is to shed light on the antecedents and consequences of tension felt during international business negotiations a total of 176 american and chinese executives participated in simulated international business buyer seller negotiations the negotiations were videotaped and the participants completed questionnaires each participant was also asked to review his her videotaped negotiation rate the tension felt on a videotape review form and briefly describe the antecedents of the tension felt the data collected were then analyzed using first a structural equations approach and then a more exploratory content analysis both chinese and american executives felt tension during the negotiations for the chinese greater levels of tension led to an increased likelihood of agreement but also led to lower levels of interpersonal attraction and in turn lower trust for their american counterparts for the americans tension felt decreased marginally the likelihood of an agreement did not affect interpersonal attraction but did have a direct negative effect on trust a series of other cultural differences are also reported the measure of tension felt developed in the study appears to be useful methodologically theoretically and practically

the private and social value of information exploration for exhaustible resources abstract in this paper i develop a model where exploration yields information about the size and location of the stock of an exhaustible resource this information is valuable in two ways first before production takes place reserves must be located through exploration the process of exploration changes unproven reserves which cannot be produced into proven reserves which can one value of exploration then is that it allows total production over time to expand the expansion effect second by exploring in an early time period a producer gains information about the true stock size prior to making a decision about how fast to exploit reserves with better information the extraction rate chosen by the producer will yield higher expected returns from the stock the timing effect i show that the expansion effect is undervalued by a firm relative to a social planner an increase in proven reserves increases production and lowers prices improving consumer welfare the timing effect however can be over or undervalued by a firm relative to a social planner if the exploring firm makes up a relatively small portion of industry and if consumers are not highly risk averse then the firm will overvalue the timing effect as a result firms may not explore some tracts where it is efficient to do so if however a firm finds it valuable to explore a tract it may explore earlier in time than is optimal

the role of key stakeholders in the international joint venture negotiations case studies from eastern europe recent literature has suggested that a key stakeholder may be able to shift the balance of bargaining power during a joint venture negotiation and thus change the outcome of the process this paper explores the role of central and eastern european transitional governments as key stakeholders and how they influence international joint venture negotiations this role is described and analyzed by examining eight dyads of western european and central eastern european enterprises that have recently negotiated agreements the findings suggest that transitional governments as key stakeholders intervene at different stages of the negotiation process have both direct and indirect influences on the process and that they can change the balance of power in the negotiations sometimes to the detriment of their own state owned enterprise

a cross national comparison of consumer research measures the impact of three factors that affect the psychometric rigor of cross national consumer research comparisons is measured in this study conclusions are also drawn about the interactions among these factors and the resultant deterioration in the psychometric quality of the data

product stereotypes strategy and performance satisfaction the case of chinese exporters does following a product strategy of price leadership result in superior performance satisfaction for chinese exporters does branding products and targeting less developed countries significantly improve chinese exporters satisfaction with export performance results indicate performance satisfaction decreased when chinese firms pursued price leadership product strategies while performance satisfaction increased when chinese exporters used a branding product strategy branding products and targeting other less developed countries with these brands significantly increased performance satisfaction over branding alone

brexit negotiations from negotiation space to agreement zones brexit is decidedly a big question we agree with international business scholars who say that such questions need to be addressed using an inter disciplinary approach we use bargaining theory models of rational behavior and the negotiation literature to explain various brexit options and predict their consequences considering the lack of relevant experiential knowledge and the multidimensional high stakes negotiations underway it is little wonder that anxiety is growing across all 28 european union member states our analysis supports a coherent approach from rational bargaining model to real life international negotiation we position outcome scenarios in different agreement zones and explore their ramifications

empirical research in international marketing 1976 1982 this paper reviews empirical research in international marketing published during the period 1976 82 the review focuses on what has been researched and how the research has been conducted this research is evaluated a cooperative multidisciplinary empirical research program in international marketing is then proposed

differences in managerial values a study of u s hong kong and prc managers in this study of convergence divergence of managerial values four western developed measures machiavellianism locus of control intolerance of ambiguity and dogmatism and the four dimensions of the eastern developed chinese value survey confucian dynamism human heartedness integration and moral discipline were the measures used the findings indicate that often times both culture and the business environment interact to create a unique set of managerial values in a country

selling machinery to china chinese perceptions of strategies and relationships chinese perceptions of machinery suppliers from six countries are used to evaluate supplier strategies and the customer relationships formed strategies based on product quality and service had the greatest impact on preferences the relationship formed seemed to reflect mainly the perceived value of the product service package offered friendship in the traditional chinese sense did not seem to be a strong characteristic of these relationships

cross cultural examination of the fishbein behavioral intentions model most of the principal theories associated with consumer behavior have been developed and tested in the united states a question that has been posed by some consumer researchers concerns the applicability of these theories outside of the united states the study reported in this paper is a cross cultural examination of the applicability of the fishbein behavioral intentions model in korea and the united states korea can be characterized as a collectivist culture that is different from the individualist culture dominant in the united states the findings of the study suggest that the fishbein model can be employed to explain consumers behavioral intentions formation in a confucian culture as well as in the united states

doing business in the 21st century with the new generation of chinese managers a study of generational shifts in work values in china our goal is to develop a profile of chinese managers and in particular a profile of the new generation of chinese managers the purpose for developing this profile is primarily to provide relevant information for non chinese business people especially westerners who plan to engage in business in china this profile is based on measures of individual values individualism collectivism and confucianism relevant to china and business our findings suggest that the new generation manager is more individualistic and more likely to act independently while taking risks in the pursuit of profits however these new managers are likewise not forsaking their confucian values thus they may be viewed as crossverging their eastern and western influences while on the road of modernization

u s china trade negotiations practices procedures and outcomes this study sought to examine and identify 1 the mechanics of u s china trade negotiations 2 how a company prepares for such negotiations 3 the factors that contribute to the success or failure of such negotiations and 4 the outcomes of such negotiations data pertaining to these characteristics were collected from 138 u s firms engaged in china trade relationships between certain variables such as extent of preparation for the negotiations type of programs used and incidences of success were examined based on these results implications for management were drawn

tax incentives and the demand for private health insurance we analyze the effect of an individual insurance mandate medicare levy surcharge on the demand for private health insurance phi in australia with administrative income tax return data we show that the mandate has several distinct effects on taxpayers behavior first despite the large tax penalty for not having phi coverage relative to the cost of the cheapest eligible insurance policy compliance with mandate is relatively low the proportion of the population with phi coverage increases by 6 5 percentage points 15 6 at the income threshold where the tax penalty starts to apply this effect is most pronounced for young taxpayers while the middle aged seem to be least responsive to this specific tax incentive second the discontinuous increase in the average tax rate at the income threshold created by the policy generates a strong incentive for tax avoidance which manifests itself through bunching in the taxable income distribution below the threshold finally after imposing some plausible assumptions we extrapolate the effect of the policy to other income levels and show that this policy has not had a significant impact on the overall demand for private health insurance in australia

complementarity free riding and the military expenditures of nato allies abstract this paper examines the major influences of an ally s demand for military expenditures demand equations are estimated for a sample of nato nations using the iterative seemingly unrelated regressions technique evidence is presented indicating that structural changes occured in these equations in the early 1970s this instability is the predicted effect of the doctrine of flexible response adopted by nato during this time period the statistical tests show that the medium sized nuclear powers military expenditures responded identically to income and defense spillins the same held true for the lowland allies

cross cultural interaction the international comparison fallacy international management studies have been based primarily on the comparison of managerial behavior in countries around the world often these studies have implied that business people behave similarly with their domestic colleagues as with their foreign counterparts in questioning that assumption this study tests whether intra cultural behavior accurately predicts cross cultural behavior using a negotiation simulation and a sample of 462 japanese american and canadian businesspeople behaviors in cross cultural negotiations were found to differ in some important ways from those in intra cultural negotiations

employees willingness to adopt a foreign functional language in multilingual organizations the role of linguistic identity language holds a central role in sustainable international expansion for multinationals the choice of the functional language can facilitate or hinder communication between headquarters and subsidiary locations in order to communicate effectively with the parent organization host country employees often have to adopt a language that is not native to the subsidiary region we take a subsidiary employee perspective in presenting an interdisciplinary theoretical model of host country employees willingness to adopt a foreign language in multinational organizations the construct of linguistic identity shaped by the linguistic landscape of the host location is introduced as an important determinant in this process specifically the foreign functional language may pose a threat to the employees existing linguistic identity willingness to adopt the foreign functional language may depend upon the extent of this perceived threat we incorporate the effects of foreign language proficiency and individuals motivation for enhancement in the theoretical model both high proficiency in a foreign language and need for social economic and career enhancements can increase individuals willingness to adopt the foreign functional language finally we develop and present implications of the linguistic identity processes for entry mode location and language strategies

the impact of journals and authors on international business research a citational analysis of jibs articles in this paper we use citational analysis to examine the influence of individuals and disciplines on international business research we collected citational data over the ten year period 1984 to 1993 from every issue of the journal of international business studies we found that management economics marketing and finance disciplines have had significant influence on international business research and identified researchers such as dunning porter vernon casson rugman and hofstede as having made significant contributions to international business research

exploration information and aec regulation of the domestic uranium industry abstract for roughly twenty years following the second world war the atomic energy commission was the only purchaser of domestically produced uranium such monopsony power implicitly allowed the atomic energy commission s to regulate the u s uranium industry this paper investigates the atomic energy commission s implicit regulation asking if an efficient allocation of resources was induced the main finding is that undesirably high levels of exploration were induced

rationing by waiting lists an empirical investigation abstract many social systems rely on a waiting list rather than price as a rationing device we present a model of the waiting list for elective surgery in the british national health service waiting time is allowed to influence both supply of and demand for surgery the resulting models of supply and demand are estimated empirically using over 4000 observations the results indicate low elasticity of demand with respect to waiting time suggesting that increased resources may reduce waiting times without greatly stimulating utilization the policy implications are important for the british national government when choosing the level of public expenditure to be devoted to health care

cross national comparison of export promotion services the views of canadian and austrian companies export promotion systems in canada and austria are contrasted and their services evaluated from a company perspective the canadian system is government based while the austrian one operates in the private sector apart from the philosophy under which these export support systems operate they differ also in strategic orientation a survey of stratified samples of exporters in canada 271 and austria 312 shows significant differences in perceived usefulness of services given similar exporter needs companies desire more tailored support as well as greater involvement of private sector institutions which are not currently providing export support overall austrian companies appear more inclined to use export support and generally seem more willing to acquire exporting know how externally compared to canadian firms conclusions are offered with respect to improving the respective export promotion systems

tax incentives and the decision to purchase health insurance evidence from the self employed the tax reform act of 1986 introduced a new tax subsidy for health insurance purchases by the self employed we analyze the changing patterns of insurance demand before and after tax reform to generate new estimates of how the after tax price of insurance affects the discrete choice of whether to buy insurance we employ both traditional regression models and difference in difference methods that compare changes in insurance coverage across groups around tra86 the results from our most carefully controlled comparison suggest that a 1 percent increase in the cost of insurance coverage reduces the probability that a self employed single person will be insured by 1 8 percentage points

methodological and theoretical issues and advancements in cross cultural research this paper summarizes the issues and concerns of critics of cross cultural research and discusses how they are being addressed by researchers given the state of the art and the complexity of this field of research the author recommends more inductive research and the pursuit of appropriate but not overambitious sampling designs so as to increase our understanding of cultures and encourage the building of richer theory bases taking an optimistic view of the field the author predicts useful contributions by researchers which will enrich the art and science of cross cultural management

on equilibrium in resource markets with scale economies and stochastic prices abstract in this paper i show the existence and the characteristics of equilibrium in a non renewable resource market where extraction costs are non convex and market price is subject to stochastic shocks an empirically relevant setting in my model firms may be motivated to hold inventories to facilitate production smoothing which allows them to continue producing at a smooth pace at any instant when extraction ceases e g when reserves are exhausted this aspect of the model then supports a competitive equilibrium in the presence of non convex costs casual empirical evidence is provided that supports the central features of my model for a variety of non renewable resources lending credence to the explanation for equilibrium i propose

japan vs silicon valley quality cost trade off philosophies while japanese manufacturing philosophies are said to be based on quality is free notions it is commonly accepted that u s manufacturing centers on a quality is costly belief this paper provides empirical data that test this conceptual division seeking evidence about the quality tradeoff philosophies of u s and japanese electronics manufacturing managers

diagnosing measurement equivalence in cross national research many researchers have pointed out that it is necessary to ensure measurement equivalence in cross national comparative research three aspects of measurement equivalence translation metric and calibration equivalence are necessary to establish the cross national reliability and validity of items used to measure theoretical constructs this paper discusses these issues and proposes two recently developed empirical techniques multiple group lisrel and optimal scaling for use in diagnosing cross national measurement equivalence these techniques are illustrated by reanalysis of a pioneering u s and japanese study the two techniques yield convergent results indicating measurement equivalence for some but not all ordinal level items under consideration the findings demonstrate that the proposed methods are useful diagnostic tools for exploring measurement equivalence several suggestions for reducing the likelihood of problems with measurement equivalence and a number of methods for dealing with items where lack of equivalence persists are also discussed

multiparty cooperation and performance in international equity joint ventures previous studies have examined the relationship between cooperation and performance in international equity joint ventures ejvs mostly at the partner level this study revisits the issue at multiple levels and considers vertical and horizontal cooperation among the foreign partners the local partner and the venture management team the study also examines how goal incongruence between partners and market uncertainty affect the tripartite relationships between cooperation and performance the test results show a strong positive impact of cooperation between partners on performance as perceived both by the partners and by the venture management team one partner s cooperation with the venture management team is perceived favorably by that party but not necessarily by the other party unless both partners share the same goal market uncertainty requires stronger cooperation at all levels to improve performance in ejvs

an empirical comparison of soviet and american business negotiations fifty six soviet businesspeople and 160 american businesspeople participated in simulated intracultural one on one buyer seller negotiations all participants completed questionnaires after the negotiation sessions and six negotiators from each cultural group were videotaped during the interactions analysis of the questionnaire data indicated that soviet negotiators achieved higher individual profits when using a competitive approach in negotiations this result is in contrast to a more cooperative approach associated with higher profits for the american participants analysis of the videotapes suggests both similarities and differences in observed bargaining behaviors across the two cultural groups

linking product and process innovations and modes of international sourcing in global competition a case of foreign multinational firms in increasingly complex global competition multinational firms u s and foreign alike have stepped up international sourcing of components and finished products to serve various markets since an increasing portion of global competition is shaped by european and japanese multinational firms with due emphasis on product quality and manufacturing it is an opportune time to examine the like among their product development manufacturing and sourcing activities those european and japanese multinational firms marketing products in the united states are chosen as subjects of this study

using notches to uncover optimization frictions and structural elasticities theory and evidence from pakistan we develop a framework for nonparametrically identifying optimization frictions and structural elasticities using notches discontinuities in the choice sets of agents introduced by tax and transfer policies notches create excess bunching on the low tax side and missing mass on the high tax side of a cutoff and they are often associated with a region of strictly dominated choice that would have zero mass in a frictionless world by combining excess bunching observed response attenuated by frictions with missing mass in the dominated region frictions it is possible to uncover the structural elasticity that would govern behavior in the absence of frictions and arguably capture long run behavior we apply our framework to tax notches in pakistan using rich administrative data while observed bunching is large and sharp optimization frictions are also very large as the majority of taxpayers in dominated ranges are unresponsive to tax incentives the combination of large observed bunching and large frictions implies that the frictionless behavioral response to notches is extremely large but the underlying structural elasticity driving this response is nevertheless modest this highlights the inefficiency of notches by creating extremely strong price distortions they induce large behavioral responses even when structural elasticities are small

management style and productivity in two cultures global competition has motivated an increasing number of united states firms to set up production facilities in mexico this study examines productivity and management style differences in a mexican maquiladora operation and its u s parent plant likert s system 4 theory was used as the theoretical basis of comparison as hypothesized significant differences were found in the management systems while productivity at the two facilities was equal

the long path to the ibm mexico agreement an analysis of the microcomputer investment negotiations 1983 86 studies of negotiation have proliferated but few especially in international business have systematically detailed the complexity of negotiations in situ this paper describes and explains the widely publicized controversial talks between ibm and the mexican government that followed ibm s proposal to established a 100 owned personal computer assembly plant near guadalajara

opening the black box of csr decision making a policy capturing study of charitable donation decisions in china this policy capturing study conducted in china investigated the cognitive basis of managerial decisions to make a corporate charitable donation a global issue in the context of corporate social responsibility csr research and practice participants n 376 responded to a series of scenarios manipulating pressure from the five stakeholders government customers competitors employees and shareholders most commonly addressed by csr research the independent variables examined included organizational factors industry ownership previous company donation firm size firm age and perceived ceo attitudes toward charity and the participants personal values results indicate a large positive effect of shareholder and governmental pressure on the decision with lesser positive effects from customers and competitors surprisingly employee pressure had a negative effect on the decision to make a charitable donation further personal values and perceived ceo attitudes toward charity were significantly related to the decisions participants made in line with our theorizing the findings indicate that a combination of personal organizational and institutional factors was salient in the minds of decision makers

adjustment costs firm responses and micro vs macro labor supply elasticities evidence from danish tax records we show that the effects of taxes on labor supply are shaped by interactions between adjustment costs for workers and hours constraints set by firms we develop a model in which firms post job offers characterized by an hours requirement and workers pay search costs to find jobs we present evidence supporting three predictions of this model by analyzing bunching at kinks using danish tax records first larger kinks generate larger taxable income elasticities second kinks that apply to a larger group of workers generate larger elasticities third the distribution of job offers is tailored to match workers aggregate tax preferences in equilibrium our results suggest that macro elasticities may be substantially larger than the estimates obtained using standard microeconometric methods

exploration information and regulation in an exhaustible mineral industry abstract the paper presents a model of exploration and production in an uncertain environment exploration provides a by product of information that helps predict future finds more accurately when this information is not equally valued at the margin by society and industry socially inefficient levels of exploration are chosen by industry in this event government intervention may be warranted a regulator could control future prices to encourage industry to select socially preferred levels of production and exploration alternatively by making public varying amounts of exploration information incentives to industry could be adjusted conditions where such regulation might yield sufficient gains to society to offset regulatory costs are considered

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

uncovering regulators social welfare weights this article describes a procedure that can be used to infer interesting information about the preferences of regulators from the pricing decisions they make this is done by using an adaptation of the familiar ramsey pricing model which allows benefits derived from the consumption of different goods or derived by different consumers to carry different social weights these weights are then exposed by inverting the first order conditions of the constrained maximum problem

learning to compete in a transition economy experience environment and performance does organizational learning as measured by experience in a host country affect international expansion performance if so does such a relationship between experience and performance hold over time how do the environmental forces in the host country affect such a relationship focusing on organizational learning by multinational enterprises mnes operating in a transition economy this study answers these three critical questions by exploring the relationships among experience environment and performance at the subsidiary level based on a recent survey of 108 mne subunits operating in china we find that the intensity and diversity of host country experience is an important predictor of subunit performance while the positive effect of the intensity of experience on performance diminishes over time the impact of the diversity of experience on performance remains unchanged moreover for mnes experiencing greater environmental dynamism complexity and hostility there is a stronger positive relationship between experience and performance