international business research past present and future the editors of the journal of international business studies jibs always try to publish the best international business research unfortunately there will probably never be a simple response to the question what constitutes excellent international business research we might make some progress however if we first attempt to define international business research and then identify several noteworthy examples

scale economies perverse comparative statics results the marshallian stability and the long run equilibrium for a small open economy abstract using a simple general equilibrium model we show that the perverse comparative statics results can occur under scale economies these paradoxes disappear iff the equilibrium is marshallian stable and the latter holds iff it is a stable long run equilibrium under capital adjustment

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

a global survey of international business education in the 1990s this article presents the major findings of the fifth global curriculum survey of the academy of international business aib an examination of the status and trends in international business education around the world as of the early 1990s the survey s findings based on responses from more than 500 business schools encompass different goals and methods of internationalization international linkages and experiential activities organizational issues amounts of internationalization progress achieved and degrees of administrative satisfaction with progress achieved the overall conclusion is that considerable progress has been made but much more remains to be accomplished

the stolper samuelson theorem under decreasing returns to scale abstract the necessary and sufficient condition for the stolper samuelson theorem is derived under decreasing returns to scale this result is interpreted by separating a factor intensity effect and a scale effect and by using the elasticities of substitution and the factor demand elasticities

creation adoption and diffusion of innovations by subsidiaries of multinational corporations this paper reports some of the findings of a multi phased and multi method study on the organizational attributes that facilitate creation adoption and diffusion of innovations by subsidiaries of multinational companies comparison of results obtained through case research in nine companies multiple respondent questionnaire surveys in three companies and a single respondent survey in 66 north american and european multinationals reveal unambiguous and positive impacts of normative integration through organizational socialization and dense intra and inter unit communication on an mnc subsidiary s ability to contribute to the different innovation tasks the findings are less consistent with regard to the effects of local resources and autonomy and it appears that the influences of these two attributes are strongly mediated by the levels of normative integration and organizational communication

multinational parent companies influence over human resource decisions of affiliates u s firms in mexico this study provides empirical evidence for the relationship between the degree of influence u s parent companies have over the human resource decisions of their mexican affiliates and the affiliates resource dependencies on the parent company both wholly owned and joint venture affiliates are examined resource dependence was the factor most closely related to parent influence over affiliate human resource decisions the importance of an affiliate to a parent company the nationality of affiliate managers and the type of ownership arrangements were also found to affect parent influence but to lesser extents than resource dependencies

the ranking of masters programs in international business comment the recent article by lee nehrt on the ranking of masters programs in international business in the fall 1987 issue of jibs aims to remedy the perceived inadequacies of the 1984 ball and mcculloch ranking of leading international business programs in the u s based on opinions of members of the academy of international business by developing a ranking of these schools based on facts nehrt did indeed set himself a formidable task attempting to collect such information in view not only of the growing number of schools introducing international business programs and the variety of data which might be collected but also the complexity of the ranking task nehrt cites the gourman report unreferenced as developing rankings of business school programs based on

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

autonomy and procedural justice a framework for evaluating subsidiary strategy using the well supported dimensions of autonomy and procedural justice a four quadrant model of subsidiary strategy is proposed and a four part typology hypothesized partner collaborator militant and vassal subsidiaries a clustering process is used to develop a four group taxonomy that corresponds with the induced model the four groups of subsidiaries are analysed across seven alternative strategic dimensions integration responsiveness coordination configuration market scope product scope and value added scope the external and internal validity of the framework is confirmed and its utility discussed in terms of subsidiary s movement from one strategy state to another

institutional contributions to the leading finance journals 1975 through 1986 a note in a recent issue of this journal heck cooley and hubbard 2 provided several rankings of finance departments the various rankings were based on publications in the journal of finance since 1946 the year in which the journal began publication separate rankings were generated for the leading institutions on the basis of source of doctorate and current employment the employer rankings were provided for the past forty years 1946 through 1985 and for several ten year subperiods 1946 through 1955 1956 through 1965 1966 through 1975 and 1976 through 1985 the work by heck cooley and hubbard builds on earlier contributions by klemkosky and tuttle 3 4 schweser 6 ederington 1 and moore and taylor 5 in their two papers klemkosky and tuttle measured the contributions to two groups of journals for the period 1966 through 1975 they included the volume of scholarship published in the three leading finance journals journal of finance journal of financial and quantitative analysis and journal of financial economics they also included the contributions to eight leading business and economics journals that publish finance and finance related articles journal of business journal of money credit and banking american economic review review of economics and statistics econometrica quarterly journal of economics journal of political economy and journal of monetary economics in their first paper klemkosky and tuttle 3 measured research performance according to the institutional source of publications in their follow up paper 4 they ranked programs on the basis of the publication output of doctoral students in a related paper schweser 6 analyzed the doctoral origins of contributions to the journal of finance for 1964 through 1975 ederington 1 prepared rankings of the top twenty departments based on total pages published in the journal of finance and journal of financial and quantitative analysis and citations in the social science citation index for works in these journals for the period 1967 through 1972 moore and taylor 5 tabulated the number of articles and pages published during 1972 through 1978 in fifteen leading journals in five academic areas of business including finance marketing management science behavioral management and general business for each area three journals were included and in finance the journals were the journal of finance journal of financial and quantitative analysis and financial management publication performance rankings were provided for all fields combined and for each discipline individually

capital inflows and economic welfare for a small open economy with variable returns to scale abstract in the presence of a production subsidy a tariff and or variable returns to scale this paper shows that a capital inflow improves welfare under certain conditions and that only temporary production subsidy tariff may be needed to generate capital inflows even if the domestic rental rate is initially lower than the world rental rate

corporate control of investments and management styles this article describes how corporate managers of major swedish groups in different industries exert control over investment requests and the direction of the investments of their groups the study

a note on ranking the international business journals 2000 examined the relative quality of 30 international business ib journals the article s objectives were to present an objective analysis of journal quality for tenure and promotion decisions to guide researchers considering submission options and to provide the academic community with an enhanced understanding of ib publication outlets using citation analyses and a survey questionnaire journal rankings were developed as designed the study was carefully executed and provides a comprehensive list of journals that publish ib research within the ib research acad

configurations of strategy and structure in subsidiaries of multinational corporations a three fold typology of subsidiary roles world mandate specialized contributor local implementer was induced from the literature and its empirical validity was confirmed adopting a configurational approach we then explored the ways in which subsidiary structural context varies across subsidiary role types structural context characteristics were determined through a discussion of the underlying principles of the hierarchy and heterarchy models of multinational organization the key findings were a higher strategic autonomy in world mandates than in local implementers b a more internationally configured value chain in world mandates and specialized contributors than local implementers c lower levels of internal product flows in world mandates than the other two types and d a significantly lower performance in specialized contributors implications for a configurational model of subsidiary management and for heterarchy as a higher level conceptualization are discussed

the global integration of business functions a study of multinational businesses in integrated global industries the way that multinational businesses in integrated global industries coordinate and control r d manufacturing and marketing functions across borders has significant implications for performance we propose that in such global industries certain integrating modes will be more effective than others in integrating a function globally we show that each function has a different combination of effective integrating modes for global r d integration people based and information based modes are more effective than formalization based and centralization based modes for manufacturing people information and formalization are more effective than centralization with respect to marketing information and centralization are more effective than people and formalization we also demonstrate that the co alignment between actual and ideal profiles configurations or patterns of integrating modes results in superior performance our results reveal that people based and information based modes are generally more effective than formalization based and centralization based modes in coordinating and controlling business functions worldwide

what happened to the transnational the emergence of the neo global corporation bartlett and ghoshal s transnational solution for managing the mnc remains popular among scholars and practitioners alike however our in depth qualitative study of unilever an exemplary case of a transnational found that in the period 2000 2012 the company evolved into a very different organizational form with a distinct set of characteristics we call this the neo global corporation in explaining how and why this transformation occurred we turn to organizational evolutionary theory and use our case to generate a multi cycle process model of mnc evolution given the dynamism of the mnc and its environments we anticipate that the neo global will also eventually transform and call for more organization level case studies of mncs in future international business research

technical progress terms of trade and welfare under variable returns to scale the implications of variable returns to scale vrs have been extensively studied by trade theorists e g batra 1968 jones 1968 kemp and negishi 1970 and eaton and panagariya 1979 it is however notable that virtually no efforts have been made to examine the welfare implications of growth for an open economy in the presence of vrs the only exception is a recent study by eaton and panagariya 1982 they derived sufficient conditions for growth rising either from factor accumulation or technical progress to improve the welfare of a small country characterized by vrs 1 the purpose of this paper is to analyse the welfare implications of economic growth identified specifically with hicks neutral technical progress for a small as well as a large country in the presence of vrs we obtain several alternative sufficient conditions for growth to be welfare increasing in addition the effects of growth on the terms of trade in the case of a large country as well as the effect of technical progress in both countries on the terms of trade are examined

returns to scale in canadian manufacturing an interprovincial comparison this paper measures the degree of returns to scale at the two digit standard industrial classification sic in canadian manufacturing employing both gross output and value added data using a model developed by r j caballero and r k lyons the study distinguishes between internal and external returns to scale the caballero and lyons model is extended by disaggregation to the provincial level in order to measure the returns to scale of geographic provincial concentration the empirical results suggest that in canada there are increasing returns that are primarily national rather than internal to the province or the industry

the positive theory of production externalities under perfect competition abstract aggregate cost and factor demand functions are used to develop a local envelope function which is applied in a general equilibrium model with production externalities to shed new light on the relationship between the true economy marginal costs and outputs this relationship induces a structure to the relationship between actual prices and outputs by means of the assumption of no factor demand reversals associated with externality effects we also provide generalisations of the stolper samuelson and rybczynski theorems highlighting the role of the externality effects

accumulation of human capital in ldcs in the presence of unemployment this paper takes up an aggregative growth framework to study how human and physical capital evolve over time as households allocate their investment between the two assets in the context of unemployment of educated labor it develops a general equilibrium model of an economy with two sectors a composite good sector and a schooling sector where output is subject to increasing returns to scale a temporary equilibrium for this economy depends on the endowments of physical and human capital as well as on the output elasticity of returns to scale and the price elasticity of education the dynamic evolution of this economy is explored in terms of the accumulation of the two types of capital a rise in education subsidy increases the demand for education at the cost of investment in physical capital and could lead to inefficient substitution between skilled and unskilled workers in the long run copyright 1994 by the london school of economics and political science

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

emerging themes in international business research this study is motivated by two research questions 1 which recent contributions have been driving the research agenda in international business 2 which emerging themes in the literature are likely to set the stage for future work to examine these questions the study examined scholarly work in international business over the time period 1996 2006 in six leading international business journals journal of international business studies management international review journal of world business international marketing review journal of international marketing and international business review next a delphi study of the most prolific authors in these journals over the same time period was conducted to delineate a future research agenda in international business addressing these two research questions provides us with a more complete understanding of the progress made to date in international business research and provides a glimpse of the future

revisiting the stolper samuelson and rybczynski theorems with production externalities by using duality theory this paper reexamines the validity of the stolper samuelson and rybczynski theorems with intra and or interindustrial externalities in particular the author states conditions for the validity of both theorems in terms of the patterns of production externalities and price output responses this paper also examines the second and third assumptions of r w jones 1968 to show that they are equivalent without interindustrial externalities with the assumption the normal price output response is a necessary and sufficient condition for the validity of the theorems while without it the normal price output response is a necessary condition

the globalization of our mental maps evaluating the geographic scope of jibs coverage this article analyzes patterns of country coverage in the journal of international business studies during the twenty five years of its existence the analysis shows a substantial expansion in the journal s geographic reach over the years but also a somewhat narrow mental map with many countries and areas receiving only minimal coverage explanations for country preferences among researchers are explored and implications for the future are discussed

trade factor prices and the gains from trade with increasing returns to scale existing analyses seem to suggest that national increasing returns to scale are not a very useful tool for analysing trade owing to problems such as multiple equilibria and the tendency towards complete specialization the purpose of this paper is to construct a model in which there are in fact determinant relationships among country size the direction of trade the gains from trade and international factor price differences in the model differences in country size determine the direction of trade which in turn determines factor price differences and limits the possible distribution of the gains from trade commerce international prix des facteurs de production et les gains de l change dans un contexte de rendements croissants a l echelle les analyses conventionnelles semblent suggerer que les rendements croissants h l 6chelle au niveau national ne constituent pas une avenue prometteuse dans l analyse du commerce international parce que de tels rendements creent une presomption en faveur de la specialisation complete et conduisent a des situations d 6quilibres multiples le but de ce m6moire est de construire un mod le dans lequel il existe des rapports determinants entre la dimension du pays la direction des 6changes les gains de l echange et les differentiels internationaux entre les prix des facteurs de production dans ce mod le les differences entre les pays en termes de dimension d6terminent la direction du commerce international laquelle d6termine le differentiel entre les prix des facteurs de production et limite l eventail des r6partitions possibles des gains de l echange

international business education programs in american and non american schools how they are ranked by the academy of international business the academy of international business members were polled to elicit their opinions of the relative quality of graduate international business programs in american schools a second part of the questionnaire asked their opinions about business schools in other countries

country familiarity in the initial stage of foreign market selection focusing on the initial stage of foreign market selection i e narrowing a set of potential countries from which to make a final choice we theorize that manager s country familiarity influences both the decision making process and outcome we hypothesize that with increasing country familiarity a manager investment of cognitive effort process first increases and then decreases and b the likelihood of a country being included for further consideration outcome also increases and then decreases we further hypothesize that the effects of country familiarity are contingent on the managers international experience empirical evidence from verbal protocol analyses of managers provides strong support to our arguments these findings contribute to the emergent literature on the critical role of cognition in decision making about foreign markets manager cognition potentially influences sequential non sequential entry decision making possibly explaining some previously observed exceptions to internationalization process theory the contingent role of international experience further stresses that the influence of cognition in internationalization decision making is both important and complex involving at least innate cognitive processes idiosyncratic knowledge and international experience we discuss the theoretical implications along with practice implications of country familiarity and intuitive decision making in foreign market selection

trends in international business research twenty five years later international business ib research has made enormous strides in the quarter century since jibs was inaugurated this article reflects upon the development of ib research during that period it first reviews the findings and recommendations of a comprehensive survey of the embryonic field of ib research conducted twenty five years ago several early trends identified then are discussed the astonishing acceleration in the pace of ib research the broadening of research activity across a greater range of functional areas and an expanding geographic base of research outside of north america especially in europe we then discuss the evolution of ib research since that formative period growing breadth and diversity greater methodological sophistication a move toward research transcending traditional functional boundaries development of new research areas such as management information systems and international coalitions and alliances research on the phenomenon of transnational firms as complete systems and the continued broadening of the geographic base of research emerging research areas such as international entrepreneurship and small business and the greening of business are identified the article concludes with calls for more research collaboration across national boundaries and for greater synthesis of research into broader more integrative frameworks

the transfer of organizational culture overseas an approach to control in the multinational corporation organizational control has traditionally been described within the framework of the ideal type of weberian bureaucracy in which rules and regulations specify desired behavior and rewards are based on explicit performance measures this paper describes an alternative organizational ideal type that relies on an organizational culture for control in this type of system behavior is specified by the organizational culture and performance is maintained via mechanisms of social pressure an example of this letter type of control is found in the type z organization an american organizational form similar in many ways to the japanese form particularly interesting is the way in which a type z organization manages overseas subsidiaries by establishing the organizational culture in the subsidiary the process by which this is accomplished and by which control is maintained are described in a comparative empirical study of the headquarters and subsidiary of a firm representative of each control type the implications of this approach for management of the multinational firm and for the host country are also discussed

internalization advantage and subsidiary performance the role of business group affiliation and host country characteristics we extend internalization theory by examining the contingencies associated with market internalization and its impact on foreign subsidiary survival based on a sample of 6170 subsidiary year observations in 63 countries belonging to 292 mncs from korea during 1995 2013 we find that greater product and labor market internalization have weaker impacts on the survival of subsidiaries operating in countries with more developed institutional environments but stronger for subsidiaries of mncs affiliated with business groups the impact of business group affiliation is further dependent on host country institutional development and the diversification and size of the business group

control changes in multinational corporations adjusting control approaches in practice the issue of control in multinational corporations mncs is central to international business scholarship however prior literature tends to provide a static perspective offering few theoretical insights on control changes especially the practices that enable control adjustments adopting a practice theory perspective we consider control as in the making whereby adjustments emerge through a social accomplishment constituted and reconstituted as headquarters and subsidiaries engage in a co creating process using a longitudinal case study approach we had the rare opportunity to track and compare an unsuccessful and a successful attempt to adjust control in an mnc over time our main theoretical contribution is a model of adjusting control in mncs that details the practices that enable control changes this model offers theoretical implications for organizational control theory in mncs especially in relation to theorizing the subsidiary contribution in the design of control the reconciliation of raised tensions in headquarters subsidiary relationships and the nature of unintended consequences in the adjustment process our study also contributes to theories on mnc change as it details the construction of an ongoing strategy structure alignment for strategic flexibility

new frontiers in international strategy this paper studies a new frontier in the understanding of international strategy is to explore it we propose the analogy of the ecology of firms and places as a way to emphasize that the real problem is the colocation of different places with different types of firms locations are in fact the distinctive content of international business strategy we deal with this problem with four different perspectives first differences across countries must be addressed with integrative frameworks able to represent the multidimensionality of semiglobalization or intermediate states between total localization and total integration second differences in the development of intermediary markets in a particular place influence firm positioning and industry structure in that place but their impact also crosses different places and it is endogenous to the ecology of places and firms in a systemic integrative way that makes simplifications extremely risky in the design of competitive strategy in an international context third places firms and strategies form a complex ecology that can be studied with a framework focused in understanding the geography strategy link that incorporates different levels of analysis new economic actors and a set of primitives finally firms around the ecology of places face the challenge of developing strategies and business models to serve the majority of humanity today excluded from world trade it is a fundamentally different way to think about the ecology of places and firms overall we present an intriguing new frontier with the capacity to impact both research and practice in the field of international strategy based in understanding the interplay among firms and places

an assessment of the measurement of performance in international business research a sizeable body of international business ib research is devoted to building knowledge about the determinants of organizational performance a key precursor to accurately diagnosing why some organizations succeed in the international marketplace while others struggle is operationalizing performance appropriately yet to date no systematic investigation has considered how well ib research measures performance we examine the measurement of performance in 96 articles published in the academy of management journal administrative science quarterly journal of marketing journal of marketing research journal of international business studies management science organization science a nd thestrategic management journal between 1995 and 2005 the findings reveal that most studies do not measure performance in a manner that captures the multifaceted nature of the construct we describe the implications of these results and offer suggestions for improving future practice journal of international business studies 2008 39 1064 1080

implementing global strategy characteristics of global subsidiary mandates implementing a global strategy requires coordinating subsidiary activities across country locations the assumption often made is that such coordination must be managed at headquarters however an alternate approach is decentralized centralized responsibilities in which different subsidiaries within the multinational are given worldwide mandates to manage specific products or products lines this study identifies subsidiary characteristics that are associated with receiving a global mandate by examining foreign subsidiaries located in france germany japan u k u s and canada

an empirical analysis of the integration responsiveness framework in global industries in this study businesses competing in global industries were categorized into three groups according to the integration responsiveness framework for conceptualizing industry pressures confronting business competing internationally using this framework contextual conditions associated with each group were examined competitive attributes distinguishing each group were then identified to clarify alternate business level strategies for competing within a global industry context beyond providing additional insight into the nature of competition in global industries several broad extensions to the integration responsiveness framework are suggested

a note on the neoclassical ambiguity and the specific factor production model under variable returns to scale abstract this note investigates the relationship between commodity price changes and factor rewards in a specific factor production model that admits variable returns to scale the principal result is that in the presence of variable returns to scale the so called neoclassical ambiguity may be resolved without resorting to detailed knowledge of the mobile factor s preferences that is to say the effect of a commodity price change may as it does with the returns to those factors specific to each industry raise or lower the real reward of the mobile factor in terms of either commodity depending only on the characteristics of the technology

the study of international business a plea for a more interdisciplinary approach scholastic efforts to study and teach international business is entirely dependent on our capability to marshal and organise the necessary human and other assets so as to supply a range of end products which are acceptable to the academic community of which we are part our paymasters and the main purchasers of our products viz the business community of course the determinants of success of the practice and study of ib are interrelated and in our particular pursuit for excellence there is no unique or sure fire recipe for success but i observe that in an ever increasingly complex world of international business which is dominated by rapid and far reaching changes in technology and by environmental turbulence this is no less true of successful practitioners rarely in seeking to identify the reasons for business achievement is one able to find a single common denominator sometimes excellence is primarily based on innovatory ingenuity sometimes on the access to or control of key inputs or markets sometimes on aggressive or novel methods of advertising and marketing sometimes on super efficient capital budgeting sometimes on dynamic and imaginative entrepreneurship sometimes on the diversity of operational experiences and capabilities and sometimes on an unusual aptitude to manage human relationships but in most cases success is founded on some amalgam of these and it is the way in which these discrete though increasingly interdependent advantages are ombined with each other and with complementary assets in different countries and cultures which contemporary research suggests is the key competitive advantages of international firms call it what you will e g

foreign subsidiary csr as a buffer against parent firm reputation risk this study examines the influence of parent firm reputation risk on the level of corporate social responsibility activities of foreign subsidiaries we first argue that a strong reputation risk spillover occurs from parent firms to their foreign subsidiaries due to the high visibility of multinationals the control of parent firms over their subsidiaries and the liability of foreignness associated with foreign firms in host countries then we argue that subsidiaries may resort to csr in their host country to reduce the spillover effect thus we hypothesize a positive relationship between parent firm reputation risk and foreign subsidiary csr activities moreover we explore several contingency factors at both the parent firm and subsidiary levels that affect the extent of spillover and the need for subsidiaries to use csr as a buffer against parent firm reputation risk we find that the positive relationship between parent firm reputation risk and foreign subsidiary csr activities is weaker for foreign subsidiaries that directly report to the parent firm with longer operations in the host country and larger institutional distance between host and home countries using a unique sample of subsidiaries of large multinationals in china from 2009 to 2016 we find general support for our arguments

marshallian stability long run equilibrium and the pattern of specialization under factor market distortions in the pure theory of international trade abstract using a simple general equilibrium small open economy model we show that the principal comparative statics paradoxes under factor market distortions disappear if the equilibrium is marshallian stable and that the latter holds if it is a stable long run equilibrium under capital adjustment

multinational corporations control systems and delegation issues the paper has 2 major objectives first to identify control and delegation issues confronting multinational corporation managers second to develop a conceptual model to assist multinational corporation managers in selecting appropriate control systems and determining the extent of delegation to be provided to subsidiary managers finally the paper suggests directions for future research

international business education programs in american schools how they are ranked by members of the academy of international business the academy of international business members were polled to elicit their opinions of the relative quality of international business programs in american schools they were also asked for their criteria

an analysis of significant contributions to the international business literature the growing interest in international business has been accompanied by a dramatic rise in the volume of international business research this note examines the international business publication records for both authors and academic institutions for the ten year period 1980 1989 nine separate publications were reviewed containing some 659 international business articles weighted and unweighted rankings are reported

the theory of tariffs under variable returns to scale and inter industrial externalities the theory of nominal tariff in general and the well known metzler paradox in particular have been rigorously developed by metzler 14 jones 13 johnson 12 and batra 1 ch 5 among others the analysis has been typically conducted under the strong assumption that the economy is devoid of any inter industrial and or intra industrial externalities some aspects of inter industrial externalities which have played a major role in the development of welfare economics in the past three decades have been explored by chang 3 and herberg kemp and tawada 11 and the implications of intra industrial variable returns to scale which are external to the firms have been examined by eaton and panagariya 7 8 panagariya 9 parai 10 choi and yu 4 5 and beladi 2 many of the standard trade theories have been shown to be significantly affected by the presence of either type of the externalities it is notable that the implications of the externalities for the tariff theory however have not been studied the purpose of this paper thus is to examine several aspects of the standard theory of tariffs in a framework allowing various production externalities specifically we will explore the effects of a change in the tariffs and or the terms of trade on the import demand as well as the effects of tariff on the terms of trade and the domestic price ratio several interesting results emerge from this analysis for example in contrast to the conventional results an improvement in the terms of trade for a given tariff may dampen the import demand and a higher tariff for a given terms of trade may raise it an increase in the tariff rate need not improve the terms of trade and hence may raise the domestic price ratio of the importable good by more than the tariff rate although the presence of inter industrial and intraindustrial externalities does not affect the sufficient condition for the metzler paradox it does modify a necessary condition for the paradox this paper is organized as follows section ii delineates the assumptions and the model section iii examines the effects of tariffs and or the terms of trade on import demands section iv

patterns of strategic control within multinational corporations the management of multinational operations is often required to balance conflicting priorities between responsiveness at the national subsidiary level and central coordination for global competitiveness such balancing requires that relevant data be brought to bear on decisions that consensus be created among key managers and that relative power among them be carefully balanced in large complex mncs the balancing process can be institutionalized through the structuring of relationships between headquarters and subsidiaries

ranking the international business journals this study seeks to assess and rank the relative quality of 30 international business journals using both a citation analysis and a survey approach journal rankings are presented using both approaches in addition to a composite ranking the rankings provide an objective analysis of journal quality for tenure and promotion committees for ib researchers considering journal submission options and provide the academic community with a better understanding of which international business publication outlets are the most influential in guiding research in this discipline

market seeking mnes in an emerging market how parent subsidiary links shape overseas success this study extends research on parent subsidiary links applying new theoretical perspectives those of resource dependence and dynamic capability to the new empirical setting of an emerging market we suggest that parent subsidiary links help to mitigate emerging market threats by reducing external dependence and help to capitalize on emerging market opportunities by enhancing local responsiveness

increasing returns and the specific factors model in recent years trade theorists have been increasingly interested in the role of economies of scale in international trade models yet the literature to date seems to lack a simple treatment of income distribution and related issues in the presence of economies of scale the present paper attempts to fill this gap by incorporating increasing returns to scale irs into the standard specific factors model trade theorists have begun to view the specific factors model as the favored vehicle for analyzing the economy wide effects of changes in commodity prices factor endowments and other exogenous variables the strongest case in favor of this model has been presented by neary 16 who argues that the model provides a rigorous general equilibrium foundation for partial equilibrium analysis as far as the supply side of the economy is concerned whereas with icm partial equilibrium reasoning will frequently be misleading 2 he further conjectures that icm is the source of all the paradoxes which are peculiar to international trade theory with the exception of those which arise from the failure to adopt first best policies in light of these views in the literature it is of interest to investigate how robust the predictions of the specific factors model are in the presence of economies of scale the analysis in this paper has important implications for the literature on irs as well as that on the specific factors model the more important of these implications may be summarized as follows first in a small open economy characterized by national intraindustry irs the condition for local dynamic stability is equivalent to the condition for a normal output price response 3 moreover in contrast with the findings of the irs models based on free intersectoral mobility of all factors as exemplified in herberg and kemp 6 this condition may be satisfied everywhere along the production possibilities frontier second stability of an equilibrium in the presence of irs is not sufficient to guarantee the validity of many results of the standard specific factors model responses of a small

publishing international business research a survey of leading journals this paper argues that given the proliferation of journals within which to publish international business research authors need to identify objectives for their research and develop a publishing strategy to ensure the appropriate and timely publication of their work based on archival data and a survey of journal editors this study provides information about seventy nine english language business publications to help authors develop such as strategy

marshallian stability and long run equilibrium in the theory of international trade with factor market distortions and variable returns to scale abstract we show that perverse comparative statistics paradoxes associated with factor market distortions and variable returns to scale vanish if the equilibrium is marshallian stable and that the equilibrium is marshallian stable iff it is a stable long run equilibrium

the evolution of research on coordination mechanisms in multinational corporations the mechanisms of coordination used by multinational corporations mncs are studied through an exhaustive literature review a pattern of evolution is found as time has passed researchers have concentrated more on subtler and informal mechanisms abandoning their unidimensional focus on structural issues it is suggested that the increase in the study of those mechanisms may be due among other reasons to the fact that mncs are indeed making more use of them that could be explained by changes in the international competitive environment which force firms to adjust their strategies requiring ever more multidimensional coordination

the ranking of masters programs in international business several years ago donald ball and wendell mcculloch carried out an opinion survey of members of the academy of international business as to the ranking of international programs in u s business schools jibs spring summer 1984 it included 79 schools in the results

further implications of variable returns to scale abstract among those trade theorists who have studied the implications of variable returns to scale it has been almost standard practice to suppose that the variability of returns in each industry is generated by technical intra industrial externalities in the present paper inter industrial as well as intra industrial externalities are admitted the topology of the set of production possibilities and of the locus of competitive outputs as well as the robustness of several standard trade theorems are examined

the challenge of autonomy and dependence in franchised channels of distribution abstract an enduring challenge for franchise management involves the reconciliation of 1 the franchisor s desire for standardization consistency and control for the preservation of its goodwill and brand equity and 2 the franchisee s quest for autonomy especially because franchises are frequently sold on the platform of be your own boss and have historically attracted would be franchisees with self employment histories and strong streaks of independence and autonomy building on arguments derived from agency theory resource dependence theory the locus of control argument and the countervailing power premise the present study attempts to evaluate 1 the interrelationships between the concepts of autonomy and dependence and 2 the influence of competition success experience and multi unit ownership as determinants of the various autonomy dependence perceptions it is suggested that contrary to the dominant perspective nested in the markets versus hierarchy dichotomy which portrays the sentiments of dependence and autonomy as opposing theoretical variables i e they are envisioned to exist only in high low combinations of these two constructs even their high high and low low combinations can emerge within a franchise setting and that these diverse behavioral settings entail unique management challenges the empirical portion of the study utilizes data drawn from the franchised channel of fastfood restaurants the results support the emergence of all four combinations of dependence and autonomy i e the traditional high low combinations as well as the high high and low low combinations suggesting that behavioral settings of franchises are indeed richer than hitherto imagined it appears that because franchisee franchisor relationships encompass several domains they each feel dependent on the other party in certain domains and simultaneously autonomous in other domains the environmental factor of competition the relationship factor of business success experienced in the franchise system and the structural factor of multi unit ownership emerged as significant predictors of dependence and autonomy notably however the countervailing power argument was not supported by the data the multi unit ownership effects were especially strong and provided a more direct test of the alignment of goals and incentives envisioned by agency theory we conclude by identifying four categories of franchisees with distinct gestalts that franchisors would do well to learn to manage in the spirit of portfolio management

subsidiary autonomy the case of multinational subsidiaries in malaysia this paper argues that the nature and extent of the benefits that fdi confers on host economies depends in part on the degree of autonomy enjoyed by subsidiary management survey evidence of multinational subsidiaries in malaysia indicates that the autonomy conferred on local management is limited even where subsidiary management categorise their organisations as decentralised their autonomy is limited to local operational matters in general the more integrated the subsidiaries in the global activities of the parent the less their autonomy which implies limits to their contribution to the malaysian economy

a note on externalities and taxation the purpose of this paper is to explore the distributional aspects of a tax that is imposed in order to correct the detrimental effects of a production externality in the framework of a two sector general equilibrium model we show that harberger s classic results of tax incidence may change considerably because of the presence of the externality we also show that the tax is effective in reducing the detrimental effect of the externality although the return of the taxed factor may rise relative to the return of the untaxed factors

a comparative analysis of the strategy and structure of united states and australian corporations an analysis of the environments of leading manufacturing firms operating in the united states and in australia produced a series of hypothesized differences in the strategies organization structures and market environments of firms in the two countries parallel hypotheses about differences between domestic australian firms and subsidiaries of foreign multinationals operating in australia were also developed

on negative shadow factor prices in the presence of factor market distortions abstract it has been believed that dynamic stability of factor markets rules out negative shadow factor prices in a two factor two commodity model of production in the presence of factor market distortions this paper derives exact conditions to have negative shadow factor prices and proves that negative shadow factor prices are consistent with stability of factor markets

the stature of the journal of international business studies this article examines the standing of the journal of international business studies jibs among scholarly journals and changes in its influence over a 11 year period 1981 to 1991 using a variety of citation indices we suggested that two new measures a prestige index and a trajectory index are helpful in assessing a journal s influence and reputation we estimate these as well as several standard citation measures to gauge jibs progress in the recent past we find that jibs does well on all measures but room for improvement remains this article discusses options available to the editorial board to raise jibs prestige

factor demand and substitution under decreasing returns to scale an application to the rybczynski theorem in the first part of this paper the elasticity of substitution and factor demand are determined under decreasing returns to scale by applying the properties of homogeneous functions elasticities of marginal products with respect to factor uses are shown to be useful when determining the elasticity of factor substitution and factor demand elasticities second the results are applied to the theorem developed by rybczynski 1955 according to which an increase in the endowment of one factor while the endowment of the other factor and commodity prices remain unchanged will increase production of the good intensive in this factor and will reduce production of the good intensive in the other factor this theorem has been developed within the context of a two good two factor model under constant returns to scale in the more general case under variable returns to scale the conditions for the rybczynski theorem have been derived by jones 1968 panagariya 1980 and herberg kemp and tawada 1982 the case of variable returns to scale includes both decreasing and increasing returns to scale in this paper however we assume the simple model under decreasing returns to scale formulated by hansson and lundahl 1983 we interpret the necessary and sufficient conditions for the rybczynski theorem using the elasticities of substitution and the factor demand elasticities and derive the condition under which expansion can occur in both sectors

nationality cultural distance and expatriate status effects on the managerial network in a multinational enterprise we study the role of three characteristics of international managers nationality cultural distance and expatriate status for their network ties a network analysis of cross subsidiary interactions among 457 managers in an mne demonstrates that managers form strong expressive ties with peers with smaller cultural distance and from the same status group however managers form strong instrumental ties with peers who are different on these background characteristics the implications for international management theory and practice are discussed

the use of process and output controls in foreign markets this study builds upon previous control research to propose a model of formal controls used in managing activities performed in foreign markets theoretically derived contingency relationships are also proposed to assess the performance consequences of different formal control types the findings support the importance of internal and external sources of uncertainty in determining the type of control used partial support was also found for the premise that the fit between the type of control used and the type of uncertainty perceived will contribute to superior performance

an analysis of twenty five years of research in the journal of international business studies the article analyzes the twenty five years of research published in the journal of international business studies jibs since its inception in 1970 the article reviews the authors their institutional affiliations and the discipline content of the published articles

the economic efficiency of backward vertical integration in the international petroleum refining industry a benefit of backward vertical integration in the petroleum refining industry is reduced uncertainly in the supply of crude oil for refining however there is no a priori reason to believe that refiners are more skilful in managing combined refining and crude oil production operations than are specialists in these functions using the concept of frontier production functions efficiency differences between firms with differing degrees of backward vertical integration are estimated backward vertical integration improves scale efficieny and reduces business risk significantly but it reduces both technical and overall economic efficiency this is the first comprehensive empirical test of the efficiency of vertical integration in the literature

international business education a corporate view as a preliminary step in the internationalization of business school curricula 122 major canadian corporations were surveyed for their views on the importance of various management skills and international courses as well as their opinion on the mechanisms institutions and academics for delivering them this article reports on the responses obtained and suggests methods for improving the overall effectiveness of international business education

international human resource strategy and its determinants the case of subsidiaries in taiwan this paper explores how the tension between global integration and local responsiveness affects the dimensions and determinants of international human resource ihr strategy to accomplish this jarillo and martinez s 1990 business strategy framework for parents and their subsidiaries was recast in an ihr strategy setting then the relationships between the two dimensions of ihr strategy that emerged global integration and local responsiveness and a set of interorganizational interdependency variables were explored several new and informative associations between the interorganizational interdependency variables subsidiaries dependence on parent s resources local resources and hot institutions and ihr strategy were observed in a sample of one hundred subsidiaries of japanese u s and european mncs operating in taiwan

membership of editorial boards and rankings of schools with international business orientation using 4 year data 1990 1994 1998 and 2002 we have provided a ranking of schools with international business ib orientation based on the membership of editorial boards of 30 leading international business journals participation on the editorial boards of quality journals is highly selective and should provide a quality indication of the schools both quality unadjusted and adjusted board membership based ranking are calculated in this study several interesting findings are worth noting first us schools play a significant leadership role among the leading ib programs second the findings of this study also show the major contribution of non us schools which confirms the importance of the global nature of the ib discipline third the top ranked schools share a number of characteristics finally the correlation among different ranking criteria can be low particularly for the top ranked schools suggesting that care should be exercised in interpreting school ranking

international business and trade in the next decade report from a delphi study the globalization of business causes major changes in the business environment and in business practices forecasting such changes is crucial for the preparation of responses to them this article reports on a delphi study conducted with a global set of experts drawn from the policy business and academic communities over three rounds of mailings these experts analyzed and debated the likelihood of changes in the international business environment over the next decade and the impact of these changes on corporate practices the findings identify key geographic areas of business growth major sectoral transformations shifts in the trade framework and its institution and strategies for corporate adjustment

offshoring innovation to emerging markets organizational control and informal institutional distance the literature on innovation offshoring has focused on the dichotomous choice between two distinct investment strategies captive offshoring and outsourced offshoring we use the concept of organizational control to investigate how differences in the informal institutions that prevail in the home and host countries influence multinational enterprise mne strategy or the organizational control decision with respect to subsidiaries established to offshore innovation while the relationship between formal institutions and mne strategy has been the subject of considerable academic scrutiny less is known about the role of informal institutions we propose that the type of uncertainty precipitated by informal institutions is critical to understanding the strategic behavior of foreign investing mnes we hypothesize that an mne s organizational control over a subsidiary will be contingent upon the type of informal institutional uncertainty encountered by the subsidiary more specifically we disaggregate the informal institutions construct and develop three new more explicit latent constructs behaviorally oriented informal institutions boii technology oriented informal institutions toii and demand oriented informal institutions doii our theory posits that while an increase in boii distance will precipitate a preference for greater organizational control heightened toii and doii distances will induce the opposite outcome a preference for lower levels of organizational control