an institution based view of international business strategy a focus on emerging economies leveraging the recent research interest in emerging economies this perspective paper argues that an institution based view of international business ib strategy has emerged it is positioned as one leg that helps sustain the strategy tripod the other two legs consisting of the industry and resource based views we then review four diverse areas of substantive research 1 antidumping as entry barriers 2 competing in and out of india 3 growing the firm in china and 4 governing the corporation in emerging economies overall we argue that an institution based view of ib strategy in combination with industry and resource based views will not only help sustain a strategy tripod but also shed significant light on the most fundamental questions confronting ib such as what drives firm strategy and performance in ib

citizens of the green world cosmopolitan orientation and sustainability contemporary consumer markets are characterized by both a heightened need for sustainability and an increasingly cosmopolitan lifestyle this article bridges these two trends and studies two untapped questions 1 how do cosmopolitan consumers relate to sustainable behavior and 2 how should environmental messages be framed to successfully target cosmopolitan consumers four studies in three countries show that high cosmopolitan consumers demonstrate environmental concern and engage in sustainable behavior to successfully target this promising segment with sustainable products or messages to promote sustainable behavior marketers and public policymakers should highlight the benefit of these products behaviors for the global rather than the local environment however the findings also show that high cosmopolitan consumers can be successfully targeted to support local environmental initiatives when activating their local identification the article offers implications for businesses non government organizations and public policymakers in designing effective messages to promote sustainable behavior

time series dynamics of us state unemployment rates this paper examines the time series properties of state and national unemployment rates based upon unit root variance ratio and cointegration tests as well as granger causality and error correction model results several important conclusions can be made first forecasting models that include only levels of unemployment rates may produce spurious regression results second in the vast majority of cases there is no long run co movement between the aggregate us unemployment rate and individual state unemployment rates third models that are specified in first differences generally yield reliable insights into state national unemployment relationships

china and intellectual property rights a challenge to the rule of law china is not meeting its international obligations to protect intellectual property rights iprs harming the innovation process in china and elsewhere we review the benefits of ipr protection and discuss the magnitude and cost of china s ipr violations we also emphasize that these violations undermine the international rule of law and impair china s legitimacy as a leader in evolving global governance institutions we criticize the argument that china will endogenously improve ipr protection due to internal pressures from its domestic ip sector as the united states and some other countries did in the past china s governance institutions are very different from those of the liberal western democracies past and present as china has a weak internal rule of law a fragmented governance system and cultural traditions that favor collective over individual rights as china s ip sector develops its ipr governance regime might even be used as a strategic tool to further disadvantage foreign ipr holders we argue that china should play a lead role in any international ipr reforms but that it must first establish legitimacy by meeting its current international ipr commitments we conclude that other countries should take action to pressure china to meet its ipr obligations

responding to public disclosure of corporate social irresponsibility in host countries information control and ownership control we extend the internalization literature by theorizing on how public disclosure of corporate social irresponsibility csi can damage reputation based firm specific advantages of multinational companies mncs and how foreign subsidiary governance can subsequently be used as strategic responses specifically we distinguish between two foreign subsidiary governance mechanisms information control and ownership control that the prior literature has often assumed operate in parallel and posit that they function in divergent directions in this context furthermore we explain how two host country characteristics press freedom and regulatory quality amplify the need for mncs to utilize different governance mechanisms as responses to csi disclosure

regulatory environments and the location decision evidence from the early foreign market entries of new technology based firms new technology based firms ntbfs embarking on a strategy of rapid internationalisation choose foreign market entries that minimise transaction costs and the related risks of failure means to reduce the young firms vulnerability to the appropriation of intellectual capital are particularly important influences on early foreign market choices we explore the effect of the institutional dimension specifically the national regulatory environment on the location choices and the speed of internationalisation by british and german ntbfs we provide evidence that entrepreneurial young firms choose to enter country markets offering better regulatory protection for their intellectual property this decision is moderated by a home regulatory regime bias in contrast we observe that the speed of internationalisation is influenced less by the foreign regulatory regime and more by industry and firm characteristics we also observe that managerial experience influences the location choices of ntbfs facing regulatory hazards

how hurricanes affect wages and employment in local labor markets currently a growing literature is emerging on estimating the impact of exogenous shocks using the difference in difference dd tech nique essentially this technique compares the impact of an unexpected event in a particu lar locale called the treatment experimental group to a location or set of locations called a control group similar to the experimental group in all respects except for the shock itself one challenge many dd studies face is how to choose the control group and there is now a growing literature on this joshua a angrist and alan b krueger 1999 jeffrey d kubik and john r moran 2003 and alberto abadie alexis diamond and jens hainmueller 2007 another challenge is whether one can general ize one s results based on a single experimental group as is typical for most dd analysis this paper adopts a generalized difference in dif ference gdd technique outlined in ariel r belasen and solomon w polachek forthcom ing to examine the impact of hurricanes on the labor market this technique incorporates many experimental as well as many control groups and as such this approach addresses a number of shortcomings in current dd analyses we find that earnings of the average worker in a florida county rise over 4 percent within the first quarter of being hit by a major category four or five hur ricane relative to counties not hit and rise about wa percent for workers in florida counties hit by less major category one to three hurricanes concomitantly employment falls between wi and 5 percent depending on hurricane strength on the other hand the effects of hurricanes on neighboring counties have the opposite effects moving earnings down between 3 and 4 percent in the quarter the hurricane struck to better examine the specific shocks we also observe sectoral employment shifts finally we conduct a time series analysis and find that over time there is somewhat of a cobweb with earnings and employment rising and falling each quarter over a two year time period

corruption and the role of information several studies have explored how certain economic and cultural variables affect a country s corruption level this study extends previous research by not only considering these variables but also taking into account the impact that information and communication technology can have on corruption the results indicate that the greater the access to information the lower the corruption levels therefore bridging the digital disparity across countries can also serve to lessen national corruption levels

intellectual property rights and the governance of international r d partnerships this paper studies the degree to which country differences in intellectual property rights protection affect the choice of companies for a particular mode of international inter firm r d partnering it focuses on the preference of companies for either an equity joint venture or a contractual partnership we find that international differences in intellectual property rights protection are a significant factor with less secure protection firms choose r d joint ventures rather than contractual partnerships the level of technological change in industries has an inverse effect on the preference for international r d joint ventures

being good while being bad social responsibility and the international diversification of us firms this paper contributes to the discussion on international diversification and corporate social responsibility csr by suggesting that firms can be simultaneously socially responsible and socially irresponsible to test our assertions we analyze data from 222 publicly traded us firms from 1993 to 2003 the findings support our hypotheses and have significant implications for the way in which we conceptualize csr

exchange rate volatility and u s monetary policy an arch application this paper examines the effect of shifts in u s monetary policy regimes on the stochastic process that generates foreign exchange rates to account for the observed behavior of the data record the author models nominal dollar exchange rates as univariate autoregressive conditional heteroskedastic processes he then tests the stability of this process across u s monetary policy regimes for four of the currencies in the sample accounting for regime shifts improves the fit of the model regime shifts also appear to diminish the degree of persistence of variance making it less likely that exchange rates are integrated in variance copyright 1989 by ohio state university press

foreign actors and intellectual property protection regulations in developing countries international agreements and institutions affect innovation in developing countries we analyze the impact of advanced country multinational enterprises amnes and supranational organizations on the regulatory adoption of global intellectual property protection standards in particular we investigate 60 developing countries that signed the trade relate aspects of intellectual property rights trips agreement of the world trade organization in 1994 our empirical findings show that a greater involvement of amnes in the domestic innovation systems of developing countries results in more stringent trips adoption and convergence to advanced country ip protection standards this relationship is positively moderated by country dependency on supranational organizations such as the international monetary fund this analysis contributes to the literature on institutional change and institutional voids it provides insights into the influence of external actors on the underlying change processes

a comparative study of u s and japanese patent systems in an era of global competition adequate protection of intellectual property in triad regions of the world particularly in japan has become increasingly important this study focuses on the differences and similarities in patent practices between japan and the united states british and german patent practices are also examined to offer a balanced comparison findings indicate that the japanese patent practices seem to discriminate against foreign applicants with longer pendency periods than for domestic applicants while the u s german and british patent practices appear to discriminate against foreign applicants with lower patent grant ratios than for domestic applicants

corporate strategy and international environmental policy this paper analyzes the interactions between international environmental policy and multinational corporate strategy the main contribution is building a new conceptual framework to analyze the type of corporate strategy developed in the presence of both national an international environmental regulations this framework distinguishes between firm level compliance with environmental obligations and the development of resource based green capabilities it also classifies major environmental regulations and incorporates a discussion of public policy

public sector organizations and agricultural catch up dilemma in emerging markets the orchestrating role of embrapa in brazil abstract how can an emerging economy beset by political economic and resource challenges jump start the technology catch up process in the agricultural sector and then forge an ecosystem to facilitate the continual generation and dissemination of innovations equally important how can it maintain the viability and salience of its catch up initiatives subsequent to the entry and inevitable dominance of multinational companies we answer these questions by studying catch up in brazil s soy seeds sector over four decades 1973 2015 in an environment of political and economic uncertainty embrapa a public sector organization forged partnerships to first develop absorptive capacity and innovation capabilities and then build an ecosystem of diverse organizations to generate and disseminate catch up outcomes to farmers and other end users embrapa also developed critical tacit knowledge and complementary assets that along with its emphasis on environmental sustainability and protecting national interests helped maintain its salience even after the entry and market dominance by multinational agribusinesses in addition to demonstrating critical roles for public sector organizations and public private networks in technological catch up in an emerging economy s agricultural sector our study calls into question the prevalent notion of technological catch up as a rush to reach the technological frontier at any cost

the benefits and costs of strong patent protection a contribution to the current debate abstract today s conventional wisdom is that strong patent rights are conducive to economic progress yet not long ago students of the patent system took a more nuanced position arguing that often strong patents were not necessary to induce invention and entailed significant economic costs several empirical studies have supported this position however the current advocacy invokes theories of the positive benefits of patents that were repressed in the earlier more negative analyses this essay reviews these theories and the empirical evidence that might bear on them the authors conclude that there is reason for concern that the present movement towards stronger patent protection may hinder rather than stimulate technological and economic progress

multinationals and corporate social responsibility in host countries does distance matter prior studies have found that foreign affiliates of multinational enterprises mnes suffer from liability of foreignness lof foreign affiliates may be able to improve their social legitimacy and overcome lof by demonstrating social commitment to host country constituents through corporate social responsibility csr if lof is positively related to the distance between the home and host countries and csr activities confer social legitimacy benefits on foreign affiliates we should expect csr activities and distance to be positively related however we argue that despite this potential motivation foreign affiliates from more distant home countries are in fact less likely to engage in host country csr our argument focuses on the ways in which distance affects the mne s willingness and ability to engage in csr abroad we also predict that host country csr reputation negatively moderates this relationship using community reinvestment act data for foreign bank affiliates from 32 countries in the united states over 1990 2007 we find strong support for our hypotheses the paper enriches our understanding of csr practices in mnes and of when and how mnes try to overcome legitimacy issues in host countries

twister employment responses to the 3 may 1999 oklahoma city tornado this research examined the impact of the 3 may 1999 tornado on the oklahoma city labour market we estimated time series models that allow for time varying variance in employment growth the models include intervention variables designed to capture the tornado s effect at initial impact as well as over the post tornado period in terms of total employment growth the oklahoma city metropolitan statistical area msa experienced an increase in employment growth and a reduction in labour market risk in the sample period following the tornado the analysis also examined the effect of the weather event on eight industrial sectors five of eight sectors experienced significant decreases in labour market risk after the tornado our evidence suggests that oklahoma city and surrounding communities that make up the metropolitan statistical area survived the disaster without suffering any extended adverse labour market effects our results indicate that at least in the aggregate the labour market improved what

effects of local legitimacy on certification decisions to global and national csr standards by multinational subsidiaries and domestic firms we explore the impact of local legitimacy on the imitation of certification by subsidiaries of foreign multinational enterprises and domestic firms we propose that mne multinational enterprise subsidiaries and domestic firms differ in their propensity to imitate geographically proximate firms when deciding whether to adopt national vs global csr corporate social responsibility certifications for two reasons first there are differences in the legitimacy they can expect to gain in different communities from adopting these certifications second there are differences in their knowledge about the local legitimacy of these certifications we test our hypotheses by studying the decisions of automotive suppliers in mexico to certify either to iso 14001 a global certification or to clean industry a national certification we find that geography matters mne subsidiaries imitate national certifications by geographically proximate firms to overcome a liability of foreignness while domestic firms imitate global certifications by proximate firms to overcome the disadvantages of localness we explore the implications of our findings for institutional theory and future research

whole country of origin network development abroad the support that networks offer during the internationalization process is well documented in the international business literature however this work has primarily focused on firm level networks while underappreciating the cooperative behaviors that may emerge among organizations in the pursuit of common network level goals to better understand these concerted and coordinated actions we engaged in a qualitative examination of two clusters of italian organizations abroad we observed that goal directed and governed networks emerged in these clusters bounded by their common desire to support italian firms internationalization this insight underlies our contributions to the international business and whole network literatures we offer a process model outlining the emergence of a particular type of whole network the country of origin network this process is much more distributed emergent and context dependent than previously theorized our model illustrates that network development involves the active and coordinated efforts of diverse actors working to create infrastructure that can be accessed by and shared between new and existing organizations our finding that both networks were governed utilizing a distinct but context appropriate governance structure provides new insight into how networks support internationalization furthermore it illustrates that whole network level support is distinct from but complementary to the firm to firm support highlighted in previous studies

safe nests in global nets internationalization and appropriability of r d in wireless telecom this paper documents the case of the wireless telecom industry to bring new empirical evidence to the debate on the internationalization of research and development r d activities us patent statistics on the four industry leaders ericsson motorola nokia and qualcomm illustrate the growing trend of the internationalization of r d over the 1990s yet we show that the most critical r d projects related to the development of wireless standards remain homebound the paper then leverages qualitative data collected through interviews with informed managers to provide a fresh interpretation for the homeboundedness of critical industrial r d the stickiness of core r d projects to domestic locations is related not only to organizational inertia and the unripe maturation of subsidiaries as suggested by prior literature but particularly to the headquarters centralization of intellectual property ip management which offers a high level of appropriability of r d results the unequal distribution of appropriability across corporate r d networks is at the base of the formation of safe nests domestic r d centers that are sheltered from the forces of globalization because they offer a desirable setting for the exploitation of technologies deriving from a stronger coordination of inventive activities with the management of ip

global connectedness and dynamic green capabilities in mnes we study how global connectedness can help mnes become more environmentally sustainable based on the idea that environmental sustainability requires dynamic capabilities we define dynamic green capability as the ability to build complementary green competences and reconfigure organizationally embedded resources to pursue competitive advantage in a rapidly changing stakeholder environment we argue that mnes with greater global connectedness in terms of international diversification or international environmental certification possess knowledge advantages in cultivating dynamic green capabilities we extend the sensing seizing reconfiguring framework and propose that global connectedness substitutes for sensing as a driver of seizing by providing direct access to relevant green knowledge pools around the world and that it complements seizing as a driver of reconfiguring by strengthening the knowledge routines needed to integrate green competences

domestic alliance network to attract foreign partners evidence from international joint ventures in china partner selection is a critical issue in building international joint ventures ijvs we argue that foreign firms are more likely to select local firms with unique network structural advantages within a local alliance network we frame structural advantages as two network position traits centrality and brokerage specifically network centrality acts as a stronger network trait than brokerage in attracting foreign ijv partners however such a relationship may be moderated by foreign firms local experience and perceived capabilities we contend that when foreign firms have a high level of local market experience and perceived capabilities they may prefer a local broker over a centrally located local firm data on the domestic alliance network in china s electronics and information technology it industries largely support our hypotheses we conclude that as foreign investors become strategic insiders they may not only seek a local partner s capability attributes but also more critically pay attention to a local partner s domestic network

too much of a good thing the dual effect of public sponsorship on organizational performance existing research provides contradictory insights regarding the effect of public sponsorship on the market performance of organizations we develop the nascent theory on sponsorship by highlighting

does stronger patent protection increase export variety evidence from us product level data proponents of global intellectual property rights iprs reforms have argued that developing countries weak iprs limit their access to foreign innovative products and technologies central to our understanding of the effects of iprs on product access is the influence of national differences in patent protection on corporate behavior and business strategy of multinational firms using detailed product data on us exports from 1990 to 2000 this research note assesses the impact of strengthening iprs in developing countries on product variety of us exports colonial origin and cross industry variation in patent effectiveness serve to identify the impact the results show that the strengthening of iprs increased exports of new products in patent sensitive industries the expansion in product variety accounted for the entire increase in us exports the findings substantiate claims that ratification of trips by developing countries promotes access to new foreign products and technologies additionally the results demonstrate that patent protection is a significant institutional factor in us firms business decisions over the introduction of new products and processes into a developing country marketplace

employment fluctuations in u s regions and industries the roles of national region specific and industry specific shocks this study quantifies the roles of national region specific and industry specific shocks in aggregate employment fluctuations in u s regions and industries variation among the growth rates of major regions and industries is decomposed into unobserved national region and industry specific components the results reject the view that any heterogeneity in regional fluctuations is attributable to differences in industry composition after controlling for industry mix effects roughly 40 of the variance of the cyclical innovation in any region s growth rate is particular to that region in addition region specific shocks appear to propagate across regions over time

the early development of intellectual property institutions in the united states the u s was a pioneer in establishing the world s first modern intellectual property system that system was distinguished by the provision of broad access to and strict enforcement of property rights in new inventions coupled with the requirement of public disclosure and it was effective at stimulating the growth of a market for technology and technical change more generally far from being static fundamental modifications were introduced over time in response to changing circumstances that such adjustments so often proved to be constructive owes partly to a private market being a central feature of the system and partly to the democratic structure of u s institutions

dynamics of pro market institutions and firm performance we analyze how pro market institutions affect firm performance in emerging markets integrating transaction costs and signaling theory we advance three arguments first we separate four dynamic components of pro market institutions intensifying and fading pro market reforms and intensifying and fading pro market reversals second we propose an asymmetric dynamic view whereby not only intensifying reforms but also fading reversals improve firm performance while not only fading reforms but also intensifying reversals reduce performance finally we argue that more efficient firms perform better under each of the dynamics we test these arguments on a sample of 1092 firms from 34 emerging markets during 1998 2011

bringing history back into international business we argue that the field of international business should evolve its rhetoric from the relatively uncontroversial idea that history matters to exploring how it matters we discuss four conceptual channels through which history matters illustrating each with a major example first historical variation is at least a worthy complement to contemporary cross sectional variation in illuminating conceptual issues as an example we show that conclusions reached by the literature on contemporary emerging market business groups are remarkably similar to independently reached conclusions about a very similar organizational form that was ubiquitous in the age of empire second historical evidence avoids spurious labeling of some phenomena as new and by so doing may challenge current explanations of their determinants whereas some firm types today were also present earlier some types have disappeared some have appeared and some have disappeared and reappeared later third history can allow us to move beyond the oft recognized importance of issues of path dependence to explore the roots of penrosian resources we argue that the choices made by jardine s and swire s in asia today for example are an outgrowth of strategic choices first in evidence more than a century ago these would remain obscured absent an historical analysis fourth there are certain issues that are unaddressable except in the really long that is historical run exploring the causal relationship if any between foreign direct investment a staple of the international business literature and long run economic development provides one important example throughout we advocate embracing rigorous methods for analyzing small sample and qualitative data when conventional regression techniques do not apply that is we suggest that re embracing history in the mainstream is not tantamount to sacrificing methodological rigor

the globalisation of technology what remains of the product cycle model this paper reexamines two hypotheses associated with earlier versions of the product cycle model the first hypothesis that innovations are almost always located in the home country of the parent company is rejected on the basis of evidence drawn from one hundred years of u s patent office data the second hypothesis that the international dispersion of activity is led by technology leaders is historically valid however over the last twenty years technology leaders have been ahead instead in the globalization of technology that is in developing internal international networks to exploit the locationally differentiated potential of foreign centers of excellence c 1995 academic press inc copyright 1995 by oxford university press

a perspective on multinational enterprises and climate change learning from an inconvenient truth this paper explores whether and how an important environmental issue such as climate change can not only give multinational enterprises the opportunity to develop green firm specific advantages fsas but also help reconfigure key fsas that are viewed as the main sources of firms profitability growth and survival we examine the nature and geography of such fsa development and develop two organizing frameworks which are subsequently applied to climate change using information from global 500 firms implications and future directions for international business research are indicated

a dynamic capabilities based entrepreneurial theory of the multinational enterprise this paper develops a dynamic capabilities based theory of the multinational enterprise mne it first reviews scholarship on the mne with a focus on what has come to be known as internalization theory one prong of this theory develops contractual transaction cost informed governance perspectives and another develops technology transfer and capabilities perspectives in this paper it is suggested that the latter has been somewhat neglected however if fully integrated as part of a more complete approach it can buttress transaction cost governance issues and expand the range of phenomena that can be explained in this more integrated framework dynamic capabilities coupled with good strategy are seen as necessary to sustain superior enterprise performance especially in fast moving global environments entrepreneurial management and transformational leadership are incorporated into a capabilities theory of the mne the framework is then used to explain how strategy and dynamic capabilities together determine firm level sustained competitive advantage in global environments it is suggested that this framework complements contract based perspectives on the mne and can help integrate international management and international business perspectives

extending the theory of the multinational enterprise internalization and strategic management perspectives this paper assesses the continued relevance of buckley and casson s 1976 book on the future of the multinational enterprise mne against a background of increasing criticism of transaction cost related scholarly work we demonstrate that the schism that can currently be observed in the field between international business and international management is misguided as the transaction cost internalization school may offer useful insights to both management scholars and managers for this to occur however it is necessary first to extend the empirical scope of transaction cost based reasoning to include the functioning of differentiated network mnes the paper suggests that buckley and casson s book still represents a beacon of clarity and a superb starting point for the study of the mne even if the complexity of this governance structure has grown far beyond what any international business scholar or even international management scholar could have predicted 25 years ago

global connectedness and local innovation in industrial clusters in today s knowledge economy clusters are a key driver of a country s competitiveness yet a cluster s technological base is now more than ever influenced by constituent firms actions to tap into distant knowledge sources drawing on a social network perspective and distinguishing between horizontal versus vertical organization based linkages we explore the effects of a cluster s connectedness to foreign locations on its innovation performance we show that improvements in horizontal and vertical connectedness both stimulate a cluster s innovation performance but that their relative effects vary across cluster types innovation in knowledge intensive clusters disproportionately benefits from enhancements in their constituent firms horizontal connectedness to foreign knowledge hotspots innovation in labor intensive clusters mostly gains from stronger vertical connections by their firms to central value chain players abroad we discuss the implications of our findings for research on global knowledge sourcing and cluster upgrading

globalization and the environment determinants of firm self regulation in china critics assert that globalization is detrimental to the environment because it encourages location of polluting industries in countries with low environmental regulations we suggest that globalization might also have positive environmental effects because global ties increase self regulation pressures on firms in low regulation countries using survey data from firms in china we find that multinational ownership multinational customers and exports to developed countries increase self regulation of environmental performance

explaining divergence in catching up in pharma between india and brazil using the nsi framework since the mid twentieth century the national objective of india and brazil has been to develop industrial capabilities in essential sectors such as pharmaceuticals at the outset they shared some common features a considerable period of lax intellectual property rights regimes a large internal market and a reasonably strong cadre of scientists and engineers however over sixty years india has had much more success in building indigenous capabilities in pharmaceuticals than brazil at least to date why in exploring the answer to this question we show that in both countries the design of state policy played a crucial role and the endogenous responses in the national system of innovation consisted of two parts on the one hand most of the time the predicted and desired outcome was partially realized and on the other hand there were invariably other unpredicted responses that emerged the latter unexpected elements which were specific to the two countries pushed them along distinctive trajectories

country level institutions firm value and the role of corporate social responsibility initiatives drawing on transaction cost theories and the resource based view of a firm we posit that the value of corporate social responsibility csr initiatives is greater in countries where an absence of market supporting institutions increases transaction costs and limits access to resources using a large sample of 11 672 firm year observations representing 2445 unique firms from 53 countries during 2003 2010 and controlling for firm level unobservable heterogeneity we find supportive evidence that csr is more positively related to firm value in countries with weaker market institutions we also provide evidence on the channels through which csr initiatives reduce transaction costs we find that csr is associated with improved access to financing in countries with weaker equity and credit markets greater investment and lower default risk in countries with more limited business freedom and longer trade credit period and higher future sales growth in countries with weaker legal institutions our findings provide new insights on non market mechanisms such as csr through which firms can compensate for institutional voids

analyzing the evidence of an ipr take off in china and india abstract both china and india have been experiencing a historical take off in the use of intellectual property rights ipr in terms of trademark applications filed with domestic ip offices in 2009 the evidence demonstrates that china now ranks 1st worldwide and india 5th while for patent filings china ranks 3rd worldwide and india ranks 9th this performance is remarkable as both china and india experienced negligible demand for ipr protection as recently as two decades ago the ipr take up trends in these two countries are analyzed in detail highlighting the structure of patent and trademark demand since 1990 specifically the available series are broken down and analyzed according to i national versus foreign origin of patents and trademarks ii technological ipc and trademark nice classes and iii the major individual patent users in each country the data used refers to applications in the chinese and indian ip offices although the demand from residents of these two countries in both the international and other national systems is also assessed beyond the existing momentum in ipr registrations by china and india and their capacity to maintain it into the near future the paper addresses practical questions about the strategies motives and benefits behind the current trends in particular we seek to evaluate the capacity of both china s and india s national innovation systems to internalize the potential returns of this increasing demand for ipr the insight reached finds that should both china and india sustain their current ipr growth rates they will be able to catch up with the most advanced economies within the time span of a few decades

the structural reshaping of globalization implications for strategic sectors profiting from innovation and the multinational enterprise the rapid reshaping of the global economic order requires fundamental shifts in international business scholarship and management practice new forms of protectionist policies new types of internationalization motives and new tools of techno nationalism may lead to what we call bifurcated governance at the macro level and value chain decoupling at the micro level as a result innovation networks will require novel reconfigurations we examine the emerging constraints on multinational enterprises imposed by a bifurcated world order we also discuss how the dynamic capabilities framework can guide scholars and managers alike to achieve new forms of evolutionary fitness

natural disasters and macroeconomic performance recent empirical research has shown that output and gdp per capita in the aftermath of natural disasters are not necessarily lower than before the event in many cases both are not significantly affected and surprisingly sometimes they are found to respond positively to natural disasters here we propose a novel economic theory that explains these observations specifically we show that gdp is driven above its pre shock level when natural disasters destroy predominantly durable consumption goods cars furniture etc disasters destroying mainly productive capital in contrast are predicted to reduce gdp insignificant responses of gdp can be expected when disasters destroy both durable goods and productive capital we extend the model by a residential housing sector and show that disasters may also have an insignificant impact on gdp when they destroy residential houses and durable goods we show that disasters irrespective of whether their impact on gdp is positive negative or insignificant entail considerable losses of aggregate welfare

patent rights and innovative activity evidence from national and firm level data global standards of patent protection have been strengthened and harmonized in recent years despite the heated policy debates and theoretical controversies empirical studies of the consequences for innovative activity are scant this paper contributes to the debate by providing an empirical analysis of the effects of patent strength on different aspects of innovative activity namely firm level research and development r d domestic patenting and foreign patenting the analysis employs an updated index of patent rights the results show the complexity of evaluating the effects of patent reform on innovative activity since the effects vary nonlinearly depending on the initial level of patent strength and vary by a country s level of economic development overall for developing economies patent strength negatively affects domestic patent filings and insignificantly affects r d and foreign patent filings for developed economies patent strength positively affects r d and domestic patent filings and negatively affects foreign patent filings after some critical level of patent protection is reached journal of international business studies 2007 38 878 900 doi 10 1057 palgrave jibs 8400306

appropriate intellectual property protection and economic growth in countries at different levels of development this paper examines how the role of patents and utility models in innovation and economic growth varies by level of economic development using a panel dataset of over 70 countries we find that patent protection is an important determinant of innovation and that patentable innovations contribute to economic growth in developed countries but not in developing instead in developing economies a minor form of intellectual property rights iprs namely utility models is conducive to innovation and growth controlling for other factors using korean firm level data as a case study we find that utility model innovations contribute to firm performance when firms are technologically lagging and that those minor innovations can be a learning device and thus a stepping stone for developing more patentable inventions later on upon reaching higher levels of technological capabilities firms become more reliant upon patents and less on utility models thus the lesson here is that patent protection enhances innovation and economic growth in countries where the capacity to conduct innovative research exists where this capacity is weaker a system that provides incentives to conduct minor incremental inventions is more conducive to growth the significance of this paper is to emphasize the importance not just of the strength of iprs but of the appropriate type of iprs for economic development

how do foreign firms patent in emerging economies with weak appropriability regimes archetypes and motives abstract foreign firms patent in emerging economies with weak appropriability regimes at an increasing rate this phenomenon constitutes a paradox since in such a setting foreign firms should have weak incentives to patent in an attempt to resolve this paradox we conducted an inductive analysis of 11 foreign firms that patent in such a setting using the case of china as our empirical context we identify four archetypes of foreign firms and three key antecedents the interaction of which determines which archetype a firm can be subsumed under our study complements the developed economy focus of the extant appropriation literature by adding an international perspective we extend previous econometric studies by identifying salient factors on the firm level that determine the extent to which a foreign firm patents in emerging economies with a weak appropriability regime highlighting that the extent of a firm s motivation to maintain its freedom to operate can supersede imitability concerns we also comment on the practical implications of these contributions for managers of foreign firms highlighting a structural conflict of interest between foreign firms from developed economies and the development goals of an emerging economy we point to the generalizability of our results to a wide range of other emerging economies worldwide

perspective explaining influence rents the case for an institutions based view of strategy research in strategy has identified and tried to explain four types of rents monopolistic rents efficiency rents quasi rents and schumpeterian rents building on previous work on political and institutional strategies we add a fifth type of rent influence rents influence rents are the extra profits earned by a firm because the rules of the game laws regulations and informal rules are designed or changed to suit it to aid the analysis of the relationship between institutional context and firm performance and to provide a structure to guide research we develop a framework with five key components a an identification of the five fundamental problems of a market economy b a typology that describes the five different types of institutions that emerge to solve these problems c the market ordering mechanisms used by institutions to solve these problems d the common causes of weak institutional performance and e generic strategies used by firms to exploit these weaknesses of an institutional context to enhance firm performance we highlight potential applications of the framework as well as an illustrative research agenda that can advance the development of theory to explain the emergence and persistence of influence rents

a geographic relational perspective on the internationalization of emerging market firms the growth of outward foreign direct investment from emerging markets has led to increased scholarly attention on the internationalization of emerging market firms emfs we break from the recent strategic approach on internationalizing emfs to develop a problematization approach which permits us to introduce a geographic relational perspective we use this perspective to highlight process thinking complex social realities and relational practice as means by which to better develop theory on the internationalization of emfs our emergent approach emphasizes the need to view emf internationalization as deeply situated in multifaceted contextual influences as influenced by path dependence and as manifested in practice these three relational tenets contextuality path dependence and practice are central to our geographic relational approach s ability to generate new challenging research questions for understanding emf internationalization consequently we add novelty to the international business domain by bringing space and process to the forefront of the emf research agenda

aggregate employment dynamics building from microeconomic evidence this paper studies quarterly employment flows of approximately 10 000 u s manufacturing establishments the authors use establishments hours week to construct measures of the deviation between desired and actual employment and use these as the establishments main state variables the main findings are 1 microeconomic adjustment functions are nonlinear with plants adjusting disproportionately to large shortages 2 adjustments are often either large or nil suggesting the presence of nonconvexities in the adjustment cost technologies 3 the bulk of average employment fluctuations is accounted for by aggregate rather than reallocation shocks and 4 microeconomic nonlinearities amplify the impact of large aggregate shocks copyright 1997 by american economic association

patents and innovation evidence from economic history abstract what is the optimal system of intellectual property rights to encourage innovation empirical evidence from economic history can help to inform important policy questions that have been di

russia s innovation policy stubborn path dependencies and new approaches abstract for the last twenty years russia has been struggling to turn itself into an efficient market economy innovation and technological development are considered to be one of the best ways to achieve impressive results the country has succeeded in retaining certain strengths of the soviet science and technology system but it has often failed to address the former weaknesses and emerging challenges there are a number of external and internal factors that make reforms inevitable and urgent in the last five six years the political leadership has started an unprecedented attempt to reverse the negative trends and boost russia s innovation performance this paper studies the new policy approaches and suggests several others that might be considered useful at this stage of the country s development this work contributes to the wider debate on the heterogeneity of national innovation systems and adaptation of the respective analytical approach to the study of technological development of the emerging economies it also provides a detailed review of the literature and data sources on the russian science and technology and aims to start filling in the gap in this seriously understudied research area

state governance and technological innovation in emerging economies state owned enterprise restructuration and institutional logic dissonance in china s high speed train sector can state governance spur firm innovation in an emerging economy and transform state owned enterprises soes from dying dinosaurs to dynamic dynamos we seek an answer to this question by investigating the innovative performance of restructured soes in china s high speed train sector we expect that soe restructuration will improve firm innovation but that the degree of improvement will depend on how the state conducts firm governance building on institutional theory we distinguish state governance via equity ownership and administrative affiliation in an emerging economy with market hierarchy institutional conflicts under such conflicts restructured soes experience institutional logic dissonance which hinders organizational change for technological innovation we hypothesize that state ownership exacerbates institutional logic dissonance at a restructured soe thus limiting innovation improvement from restructuration in contrast state affiliation mitigates firm dissonance and hence augments such improvement we find empirical evidence for these hypotheses in a comprehensive panel of high speed train manufacturers in china between 1989 and 2015 this study contributes to the institution based theory of technological innovation in emerging economies on the practical front our findings suggest that emerging states may adopt arms length governance to spur soe innovation and unleash these dynamic dynamos to fuel sustainable economic growth

liability of foreignness natural disasters and corporate philanthropy this study examines how philanthropy can mitigate liability of foreignness lof in the aftermath of a national disaster a major disaster restructures the social landscape creating an avenue for corporate contributions to play a role in recovery and relief efforts this social restructuring offers a valuable opportunity for multinational enterprises mnes to establish strong local ties in turn mne contributions at such times have a stronger impact on their local acceptance thus mnes can use these events to strengthen their position in the community and mitigate lof using the context of a national disaster in india i test these arguments with a sample of 190 mnes and 660 domestic firms i found that in the aftermath of the disaster the increase in mne contributions was much larger and less strongly tied to promotional activities than the increase in contributions from domestic firms and this difference persisted over time moreover the performance implication of post disaster philanthropy was stronger for mnes than for domestic firms these findings suggest that philanthropy plays a more strategic role for mnes in the aftermath of a disaster and it has a pronounced effect on mitigating lof

the dubious role of institutions in international business a road forward our commentary returns to the conundrum of how institutions matter in international business ib by revisiting the 2018 jibs decade award article by jackson and deeg 2008 on comparing capitalisms we first synthesize their main insights around institutional diversity and track its significant impact within ib and other management fields we then suggest three main takeaways that could move jackson and deeg s agenda further in terms of developing a more nuanced approach to institutions in ib we close with suggestions for future research and urge ib scholars to be more cautious when drawing on different strands of institutions theory

the impact of climate risk on firm performance and financing choices an international comparison increasingly adverse climatic conditions have created greater systematic risk for companies throughout the global economy few studies have directly examined the consequences of climate related risk on financing choices by publicly listed firms across the globe we attempt to do so using the global climate risk index compiled and published by germanwatch kreft eckstein 2014 which captures at the country level the extent of losses from extreme weather events as expected we find the likelihood of loss from major storms flooding heat waves etc to be associated with lower and more volatile earnings and cash flows consistent with policies that attempt to moderate such effects we show that firms located in countries characterized by more severe weather are likelier to hold more cash so as to build financial slack and thereby organizational resilience to climatic threats those firms also tend to have less short term debt but more long term debt and to be less likely to distribute cash dividends in addition we find that certain industries are less vulnerable to extreme weather and so face less climate related risk our results are robust to using an instrumental variable approach a propensity score matched sample and path analysis and remain unchanged when we consider an alternative measure of climate risk finally our conclusions are invariant to the timing of financial crises that can affect different countries at different times

knowledge connectivity an agenda for innovation research in international business the innovation driven multinational enterprise mne has dominated international business ib research for several decades now beginning with the award winning research of dunning there have been calls for ib researchers to rediscover the importance of locations recent work has emphasized that firms and locations co evolve with one another as knowledge is transferred and leveraged across space integrating insights from ib and economic geography we propose a research agenda for ib scholarship on spatially dispersed yet connected innovation processes this agenda is premised on the current reality of global value chains in which mobile mnes people and immobile locations factors interact the research perspective suggested recognizes that locations are host to increasingly fine sliced activities whose nature and composition are continuously changed by mne driven innovation processes as today s specialized activities become tomorrow s standardized ones the shifting distribution of global value creation depends on the pattern of international knowledge connectivity

an institution based view of global ipr history leveraging the use of history to advance international business research this article focuses on the crucial debate over intellectual property rights ipr between the united states and china ironically during the 19th century the united states was not a leading ipr advocate as it is today but was a leading ipr violator developing an institution based view of ipr history we identify three underlying theoretical mechanisms that help to explain ipr in the two countries path dependence long term processes and institutional transitions we argue that both the us refusal to protect foreign ipr in the 19th century and the current chinese lack of enthusiasm to meet us ipr demands embody rational responses to their respective situations however given long term processes with intensifying isomorphic pressures institutional transitions in favor of better ipr protection are quite possible finally going above and beyond these two countries we draw on the ipr history in over ten other countries to develop a more globally generalizable framework which in turn contributes to the key question of how history matters

balancing private and state ownership in emerging markets telecommunications infrastructure country industry and firm influences bargaining between host states and investors over the terms of investment in sensitive sectors of the economy generates political and economic tensions in this study we investigate the factors that contribute to the outcomes of those negotiations as measured by the private vs state owned share of newly consummated telecommunications infrastructure projects we find that private ownership is positively associated with overall economic development and investment liberalization in the host country and with greenfield vs divestiture and joint venture vs wholly owned projects private ownership is negatively associated with existing telecommunications infrastructure higher levels of state ownership of foreign investing firms and the technological sophistication of the projects our analysis also shows a curvilinear inverted u shaped relationship between investment policy hazards and private ownership this finding supports the insight from transaction cost economics that potential gains from internalization are greatest at intermediate levels of uncertainty

theoretical foundations of emerging economy business research in probing theoretically into central and eastern europe transactions resources and institutions we outlined the contributions of research in central and eastern europe cee to theoretical debates in business research in this retrospective we reflect upon the evolution of the field over the past decade with the fading impact of cee s distinct shared history we suggest that cee best be analyzed as emerging economies rather than as a distinct geographic entity emerging economy business research is converging on common themes and shared theoretical ideas while identifying critical variations that constrain generalizations among and beyond emerging economies this research thus highlights the need to develop a better understanding of the boundary conditions of scholarly theories of business knowledge over the past decade the institution based view has emerged from distinct intellectual traditions in institutional economics organizational theory and the analysis of business government bargaining research in these converging lines of theorizing places contextual variations at the center of explanations of business phenomena around the world we suggest that the institution based view is evolving toward a paradigm and offer suggestions on how to advance this research agenda further in particular by exploring how firms engage with different sets of potentially conflicting institutions at multiple levels and locations