acquisition or greenfield start up institutional cultural and transaction cost influences in this paper we develop and test a model of diversification mode choice how firms decide between acquisitions and greenfield start up ventures which includes institutional cultural and transaction cost variables using a sample of japanese firms entering western europe our results show the model correctly predicts over eighty seven percent of the mode choices thus we provide strong initial evidence to support using institutional cultural and transaction cost variables to predict firms choices between acquisitions and greenfield start ups in international expansion our findings also suggest that organizations which have developed strong intangible capabilities may be able to more readily leverage these capabilities through greenfield start ups copyright 2000 john wiley sons ltd

proximity strategies in outsourcing relations the role of geographical cultural and relational proximity in the european automotive industry several trends that affect the manufacturing of sophisticated goods increasing international fragmentation of production and lean and modular process technologies have increased the importance of proximity in the supply chain we use the case of the european automotive industry to simultaneously evaluate the relative importance of three dimensions geographical cultural and relational proximity using a rich and novel data set we find that carmakers value some aspects of each dimension independently in their sourcing strategy the estimates indicate which proximity measures provide the largest independent benefits but also that the positive effects the literature has attributed to some measures tend to reflect past relationships rather than predict new ones in particular co location and a low cultural distance should be interpreted as outcomes of a sourcing strategy not as predictors for sourcing success finally we investigate to what extent firms from different countries follow different strategies and which choices suppliers can make to boost their attractiveness as outsourcing partners

technical and environmental efficiencies and best management practices in agriculture an input distance function idf is estimated to empirically evaluate and analyse the technical and environmental efficiencies of 210 farms located in the chaudiere watershed quebec where water quality problems are particularly acute because of the production of undesirable outputs that are jointly produced with agricultural products the true idf is approximated by a flexible translog functional form estimated using a full information maximum likelihood method technical and environmental efficiencies are disaggregated across farms and account for spatial variations our results show that there is a significant correlation between the two efficiencies the idf is used to compute the cumulative malmquist productivity index and the fisher index the two indices are used to measure changes in technology profitability efficiency and productivity in response to the adoption of two selected best management practices bmps whose objective is to reduce water pollution we found significant differences acro

developing acquired foreign subsidiaries the experience of mnes in transition economies drawing on subsidiary evolution and dynamic capabilities research i test how development and growth of subsidiaries recently acquired in transition economies are affected by multinational enterprise mne and target capabilities these subsidiaries often lack important resources their cross border transfer enhancement and exploitation are problematic however data on 170 acquisitions in central and eastern europe confirmed the importance of the pre acquisition experiences of both target and mne for subsidiary growth although cultural differences moderated the predicted effects notably

specialized supplier networks as a source of competitive advantage evidence from the auto industry this study examines the relationship between interfirm asset specificity and performance in the auto industry more specifically i examine the extent to which differences in supplier automaker asset specialization may explain performance differences between japanese automakers nissan and toyota and u s automakers chrysler ford general motors the findings indicate a positive relationship between supplier automaker specialization and performance in particular the data suggest a positive relationship between interfirm human asset cospecialization and both quality and new model cycle time moreover site specialization is found to be positively associated with lower inventory costs the findings suggest that in the auto industry a tightly integrated production network characterized by proximity and a high level of human cospecialization will outperform a loosely integrated production network characterized by low levels of interfirm specialization

cost value and foreign market entry mode the transaction and the firm this paper compares and contrasts the mode of foreign market entry decision from the transaction cost internalization and organizational capability perspectives each of these perspectives operates at a different level of analysis respectively the transaction and the firm and consequently differs in the primary arena of attention namely transaction characteristics and the capabilities of firms in making the comparison a key distinction is made between the cost and the value aspects in the management of know how based on which issues pertaining to the transfer of knowledge within and across firm boundaries and the exploitation and enhancement of competitive advantage are closely examined the main purpose of this paper is to demonstrate the implications of a shift in frame from cost to value in the analysis of decisions related to firm boundaries entry into foreign markets is used primarily as a vehicle for the accomplishment of this purpose the paper shows how the value based framework of the organizational capability perspective radically and fundamentally shifts the approach towards the governance of firm boundaries and argues that even though tc internalization theory raises some valid concerns the organizational capability framework may be more in tune with today s business context some of the assumptions of the tc internalization perspective both direct opportunism exploitation of existing advantage and indirect preservation of the value of know how across locational contexts asymmetry between bounded rationality for transaction and production purposes are critically examined and questioned implications of a shift from a cost to a value based framework are discussed and the need for a shift in research focus is emphasized

the pace of mnes sequential entries cumulative entry experience and the dynamic process this study examines the pace with which multinational enterprises undertake sequential entries in a foreign market we focus on learning effects from cumulative entry experience of different modes within a host market moreover we investigate the dynamic process of entry mode switch and how cumulative entry experience reduces the expansion constraint using a dataset of sequential entries by us firms in china during 1979 2002 we find that the impact of cumulative entry experience on the pace of sequential entries varies across different modes further firms with more cumulative entry experience can cope with the constraint of entry mode switch

analysis of environmental efficiency variation in this article we develop and implement a methodology for analyzing the sources of variation in environmental efficiency across producers we formulate a two stage model in the first stage we use stochastic frontier analysis to estimate both technical and environmental efficiency in the second stage we again use stochastic frontier analysis to regress estimated environmental efficiency scores against a variety of technology physical environment and management variables in this stage we estimate the impact of each explanatory variable on environmental efficiency and we derive conditional estimates of environmental efficiency from the one sided error component we illustrate our methodology with an empirical application to a panel of dutch dairy farms we find evidence of relatively low levels of environmental efficiency and we find that environmental efficiency can be improved through a number of policy options including the provision of farmers with more insight into the nutrient balance of their farms

national systems of biotechnology innovation complex interdependence in the global system this paper explores the relationship between national institutional context and the development of biotechnology in the united states united kingdom japan and germany national patterns in biotechnology r d are linked to the configuration of county specific institutional features into a system of innovation which supports or impedes the accumulation and diffusion of knowledge between the scientific and industrial communities building on this comparative analysis it is argued that the particular characteristics of national systems of biotechnology innovation form the basis for complex interdependence within the global system through international technological cooperation and the cross border adoption and adaptation of institutional forms and practices implications for national technological advantage and the stability of national institutional systems are discussed

does globalization affect growth evidence from a new index of globalization the study develops an index of globalization covering its three main dimensions economic integration social integration and political integration using panel data for 123 countries in 1970 2000 it is analysed empirically whether the overall index of globalization as well as sub indexes constructed to measure the single dimensions affect economic growth as the results show globalization indeed promotes growth the dimensions most robustly related with growth refer to actual economic flows and restrictions in developed countries although less robustly information flows also promote growth whereas political integration has no effect

the impact of order and mode of market entry on profitability and market share market share performance and profitability of overseas business activities has long been an important issue in international business in this study we explore the impact of order and mode of market entry into an overseas market we find that early entrants have significantly higher market shares and profitability than late followers we also find that equity joint ventures have a higher profitability than either wholly owned operations or contractual joint ventures a significant interaction exists between order and mode of market entry as expected firm efficiency and size affect the performance of firms these results are based on the business activities of a sample of 14 466 foreign firms in china in 1995

provision of environmental output within a multi output distance function approach this paper redefines technical efficiency by incorporating provision of environmental goods as one of the outputs of the farm the proportion of permanent and rough grassland to total agricultural land area is used as a proxy for the provision of environmental goods stochastic frontier analysis was conducted using a bayesian procedure the methodology is applied to panel data on 215 dairy farms in england and wales results show that farm efficiency rankings change when provision of environmental outputs by farms is incorporated in the efficiency analysis which may have important political implications

cooperation between rivals informal know how trading it has long been recognized that it is difficult for an innovating firm to fully appropriate the benefits arising from its innovations and that desired research might therefore not be performed nelson 1959 pp 297 306 one sometimes possible solution to this dilemma is cooperative r d conducted by firms who share the costs and benefits of particular r d projects johnson 1973

the impact of sources of energy production on globalization evidence from panel data analysis abstract greenhouse gas ghg emission is one of the major reasons for global warming and climate change among various sources responsible for ghg emission energy generation is found to be the leading one increased economic activities facilitated by the ever expanding level of globalization lead to substantial accumulation of ghg in the atmosphere hence the relationship between economic growth and environmental degradation remains a primary concern to policymakers as well as concerned stakeholders this study aims at investigating the relationship between the sources of energy production fossil sources and renewables and the level of globalization a panel data consisting of 26 countries from the list of annex i parties to the united nations framework convention on climate change unfccc for 21 years has been analyzed the study finds that an increase in the electricity production from fossil based sources i e oil and coal reduces the level of globalization it also supports the argument that coal is more detrimental to the environment moreover this study finds a significant negative influence of the use of renewables for energy production on the level of globalization this finding supports the premise that renewable energy is used domestically and works as import substitute for energy demand leading to a negative effect on globalization further study in developing countries with larger sample may help compare and contrast the effect of sources of energy on globalization

hierarchies markets and power in the economy an economic perspective this paper adopts the transaction cost economics perspective for purposes of examining hierarchies markets and power in the economy transaction cost economics works out of an economizing perspective in which markets and hierarchies are alternative modes of governance and the object is to ascertain which transactions go where and why the role of power in this setup is strictly limited partly because power tends to be myopic transactions are not examined in their entirety and partly because it is tautological power needs to be operationalized whereupon the refutable implications that accrue to this perspective can be derived copyright 1995 by oxford university press

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

do land markets improve land use efficiency evidence from jiangsu china inefficient use of scarce and fragmented land challenges the sustainability of agriculture land markets may improve land use efficiency in recent years china has employed various instruments to

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

the international biotechnology industry a dynamic capabilities perspective this paper extends our understanding of the diffusion of technology across firms and nations the dynamic capabilities perspective in its micro and macro version provides the theoretical framework for an explanation of the international organization of the biotechnology industry we address two interrelated aspects of the phenomenon of international diffusion organizational form and geographical flows an examination of the empirical profile lends support to the dynamic capabilities argument

the influence of customer scope on supplier learning and performance in the japanese automobile industry most studies of japanese supplier automaker relationships have focused on the nature of the dyadic interfirm relationship and the performance of the assembler we examine the relationship from the point of view of the supplier and argue that a broad customer scope strategy i e number of customers leads to superior performance primarily because of learning opportunities in addressing these learning opportunities we draw attention to the important distinction between relation specific and re deployable knowledge and the complementary relationship between them our analysis of 125 japanese suppliers supports the key argument that less exclusive ties may be a superior strategy the argument has important implications for vertical integration and the structure of buyer supplier relations

entrepreneurship in the global firm introduction and overview types of subsidiary initiative fighting the corporate immune system how the initiative process works the consequences of initiative perspectives on the theory of entrepreneurship mapping the process of subsidiary evolution perspectives on theory of the multinational firm an internal market model of the multinational firm implications for management practice

is globalization reducing absolute poverty summary using data from 114 countries 1983 2007 we examine the relationship between globalization and world bank absolute poverty estimates we find a significant negative correlation between globalization and poverty robust to several econometric specifications including a fixed effect panel a long run first difference and a pooled ols regression introducing two instruments for globalization we also show that results are robust to correction for potential endogeneity we motivate and test the instruments in several ways in particular information flows and more liberal trade restrictions robustly correlate with lower absolute poverty

econometric estimation of technical and environmental efficiency an application to dutch dairy farms in this article we estimate the technical and environmental efficiency of a panel of dutch dairy farms nitrogen surplus arising from the application of excessive amounts of manure and chemical fertilizer is treated as an environmentally detrimental input a stochastic translog production frontier is specified to estimate the output oriented technical efficiency environmental efficiency is estimated as the input oriented technical efficiency of a single input the nitrogen surplus of each farm the mean output oriented technical efficiency is rather high 0 894 but the mean input oriented environmental efficiency is only 0 441 intensive dairy farms are both technically and environmentally more efficient than extensive farms

the close but adversarial model of supplier relations in the u s auto industry while cooperative buyer supplier relations are an important source of sustainable competitive advantage noncooperative behavior persists widely this paper tests a model incorporating noncooperative behavior within a context of formal commitment using data from the u s auto industry this close but adversarial model appears to be reasonably well supported by the data suggesting that even within professed cooperative buyer supplier relationships adversarial behavior persists in contrast a small but significant minority of the relationships were found to be characterized by high levels of trust as well as informal commitment the results suggest specific strategies for developing cooperative supplier relations 1998 john wiley sons ltd

mimetic and experiential effects in international marketing alliance formations of us pharmaceuticals firms an event history analysis alliances are recognized as an indispensable tool for managers operating in a global business environment and as a fundamental stage of the internationalization process of the firm drawing on a co evolutionary framework this article investigates the mimetic and experiential effects in international alliance formation we focus on a critical unresolved issue in the literature what is the role of mimetic behavior and previous alliance experience in mitigating the uncertainty associated with engaging in cross border operations an event history analysis of 792 international marketing alliance formations initiated by 317 firms in the us pharmaceutical industry is employed to test the hypotheses the findings of two different hazard rate models reveal significant complex effects of density and cross border alliance experience on the propensity to engage in new international marketing alliances

the impact of economic globalization on renewable energy in the oecd countries abstract this paper analyzes the determinants of renewable energy consumption in the panel data of 30 oecd countries for the period from 1970 to 2015 the unique role is given to the effect of economic globalization on renewable energy we consider several measures of economic globalization and apply different econometric techniques we find the positive impact of the per capita income the per capita carbon dioxide emissions and the real price of oil on renewable energy also a higher level of economic globalization promotes renewable energy and the evidence is robust to the different measures of economic globalization in line with our findings promoting the economic aspects of globalization will enhance renewable energy thus it can suppress the adverse effect of climate change and global warming on living human beings and natural habitats in the long run therefore we need to enhance our knowledge of how globalization promotes renewable energy not only for the oecd countries but also for other developing and developed economies from a policy perspective we suggest that policymakers and governments in oced countries should consider economic globalization as a renewable energy promoting mechanism while designing their energy demand policy for the protection of natural environmental health

analysis of environmental efficiency variations a nutrient balance approach recent literature has argued that environmental efficiency ee which is built on the materials balance mb principle is more suitable than other ee measures in situations where the law of mass conversation regulates production processes in addition the mb based ee method is particularly useful in analysing possible trade offs between cost and environmental performance identifying determinants of mb based ee can provide useful information to decision makers but there are very few empirical investigations into this issue this article proposes the use of data envelopment analysis and stochastic frontier analysis techniques to analyse variation in mb based ee specifically the article develops a stochastic nutrient frontier and nutrient inefficiency model to analyse determinants of mb based ee the empirical study applies both techniques to investigate mb based ee of 96 rice farms in south korea the size of land fertiliser consumption intensity cost allocative efficiency and the share of owned land out of total land are found to be correlated with mb based ee the results confirm the presence of a trade off between mb based ee and cost allocative efficiency and this finding favouring policy interventions to help farms simultaneously achieve cost efficiency and mp based ee

what happens to gazelles the importance of dynamic management strategy the starting point of this study is gibrat s law which is contrasted with strategic management this logic is subsequently applied to a group of remarkably dynamic high growth firms gazelles strategic management theory emphasises the importance of firms adjusting strategies in response to changes in the external environment in our study it is used to explain several key empirical findings using a novel british data set containing information on more than 100 gazelles these findings help explain 1 why gibrat s law of random firm growth processes does not generally hold 2 which strategy and environmental variables have a predictable influence on firm performance and 3 why routine application of best practice strategies is unlikely to foster firm growth in a changing economic environment in so doing this paper contributes to the large body of literature on small firm growth

causes of the difficulties in internationalization we study the causes of the difficulties faced by firms when they internationalize in search of new markets we build on the resource based theory to argue that the difficulties in internationalization can be separated into three main sets based on their relationship to advantage loss of advantage provided by resources transferred abroad creation of a disadvantage by resources transferred abroad and lack of complementary resources required to operate abroad in each set we further distinguish difficulties that are specific to a firm from those that are common to a set of firms we argue that only a few of the resulting types of difficulties of internationalization are exclusive to the cross border expansion and propose solutions that address the root cause of each type

crossroads the organization of economic activity transaction costs firm capabilities and the nature of governance in a recent 1993 paper in organization science hennart discussed the underlying logic based on transaction cost and agency theory for explaining the choice between firms and markets and the reason why most transactions have both firm like and market like properties relying on williamson s comparative institutional approach which studies economic organization from a transaction cost minimizing point of view under the assumption of opportunism the argument was made that transaction cost tc logic provides a complete theory of the organization of economic activity in this paper i argue that with its purely incentive based logic governed by assumptions of opportunism tc economics is fundamentally incapable of being a complete theory of economic organization the notion of the firm as a bundle of transactions or contracts is an inadequate and shallow basis for a theory of the firm since it basically ignores the essential notion of the firm as a bundle of knowledge and the underlying processes there

reverse globalization does high oil price volatility discourage international trade this paper examines whether higher oil price volatility causes a reversal in globalization using a large annual panel data set covering 84 countries all over the world from 1984 to 2008 we investigate the impacts of oil price fluctuations on international trade namely exports and imports we present strong and robust evidence that international trade flows will be lower when oil prices fluctuate significantly we therefore conclude that oil price volatility hurts globalization

understanding the structural characteristics of a firm s whole buyer supplier network and its impact on international business performance building on the network theory and the concept of organizational ambidexterity we investigate the impact of structural characteristics of a firm s whole buyer supplier network network density betweenness centralization and average clustering coefficient on its international business ib performance we also explore the moderating roles of average path length and pagerank centrality using a manually collected dataset and a robust empirical methodology we find that while network density is negatively related betweenness centralization and average clustering coefficient have an inverted u shape and a u shaped relationship with ib performance respectively we also find significant moderation effects and in the process we show the economic importance of firms whole buyer supplier network to their ib performance we contribute to the international business and whole buyer supplier network literature

developing a social perspective to farm performance analysis abstract this paper examines how traditional farm productivity analysis can be extended to produce a performance measure from the perspective of society a biophysical model is used to measure inputs from the environment which are combined with conventional marketed inputs to develop an environmentally sensitive malmquist productivity index to determine social productivity growth data envelopment analysis dea is used to analyze data collected from selected farms in south east australia and includes a measure of leaching and run off as a proxy measure of the impact the application of fertilizers has on ground and surface water the results show measured productivity growth increases for some farms and decreases for others when environmental factors are considered

global co2 efficiency country wise estimates using a stochastic cost frontier this paper examines global carbon dioxide co2 efficiency by employing a stochastic cost frontier analysis of about 170 countries in 1997 and 2007 the main contribution lies in providing a new approach to environmental efficiency estimation in which the efficiency estimates quantify the distance from the policy objective of minimum emissions we are able to examine a very large pool of nations and provide country wise efficiency estimates we estimate three econometric models corresponding with alternative interpretations of the cancun vision conference of the parties 2011 the models reveal progress in global environmental efficiency during a preceding decade the estimates indicate vast differences in efficiency levels and efficiency changes across countries the highest efficiency levels are observed in africa and europe while the lowest are clustered around china the largest efficiency gains were observed in central and eastern europe co2 efficiency also improved in the us and china the two largest emitters but their ranking in terms of co2 efficiency deteriorated policy implications are discussed

measuring and explaining scale efficiency with the parametric approach the case of greek tobacco growers estimates of technical and scale inefficiencies of tobacco farms in greece during the period 1991 1995 are obtained by using the parametric approach the degree of technical efficiency was found to be lower than the degree of scale efficiency and thus a greater portion of overall inefficiency is due to producing below the production frontier than to producing at an inefficient scale in addition the vast majority of farms in the sample exhibited suboptimal scale implying that output should be expanded to reach the optimal scale empirical results are provided to determine the impact of various socioeconomic demographic and geoclimatic indicators on technical and scale efficiency

sme internationalization modes in the german biotechnology industry the influence of imitation network position and international experience in this article we reveal how network enabled imitation processes impact young small and medium sized enterprises smes internationalization and how a firm s network position as well as its experiential knowledge moderate imitative behavior in internationalization modes building on institutional network and organizational learning theory we suggest that firms imitate the internationalization modes of their peers in their network moreover we argue that a firm s imitation propensity depends on two important boundary conditions network position and past experience applying a longitudinal event history analysis to analyze the complete population of 977 german biotechnology firms between 1996 and 2012 largely supports our hypotheses our findings reveal that firms imitate the internationalization modes of their peers in a precise manner this implies that the imitation of others can initially serve as a presumably convenient low risk shortcut to a planned or experience driven internationalization process furthermore our results confirm that this imitation process is channeled through formal network relations and that central network positions that are associated with superior information access enhanced legitimacy and status may promote deviating behavior acknowledging the interplay of different learning sources our findings additionally show that initial internationalization mode choices of smes can have a lasting effect on subsequent internationalization behavior overall our study contributes to a more nuanced view of imitative behavior of internationalizing smes and its boundary conditions and highlights future research opportunities that exist for considering imitation and its implications in international business research

multi output efficiency with good and bad outputs abstract cherchye de rock dierynck roodhooft and sabbe 2013 introduced a dea methodology that is specially tailored for multi output efficiency measurement the methodology accounts for jointly used inputs and incorporates information on how inputs are allocated to outputs in this paper we present extensions that render the methodology useful to deal with undesirable or bad outputs in addition to desirable or good outputs interestingly these extensions deal in a natural way with several limitations of existing dea approaches to treat undesirable outputs we also demonstrate the practical usefulness of our methodological extensions through an application to us electric utilities

revisiting multinational firms tolerance for joint ventures a trust based approach in spite of the increasing popularity of international joint ventures managers express a high level of dissatisfaction with them this paper argues that overemphasis on the outcome has resulted in a neglect of the social processes underlying the outcome the paper elaborates upon the rationale for a cooperative approach towards interorganizational collaborative relationships based on trust and discusses it in the context of joint ventures this is then applied towards understanding multinational ownership preferences and tolerance for joint ventures it is argued that trust centered logic is largely consistent with approaches that emphasize the issue of ownership and deepens and enriches the insights provided by the latter a shift in focus from ownership to relational dynamics is encouraged

the value of environment across efficiency quantiles a conditional regression quantiles analysis of rangelands beef production in north eastern australia in agricultural systems the value of environmental inputs can be measured using the production function approach whereby the marginal contributions of factors are associated with a shadow value under perfect competition and rationality assumptions however empirical studies show that inefficiency in production is common indicating that the rationality assumption is not met furthermore substantial evidence exists to suggest that the contributions of environmental inputs in particular may be differentiated across the efficiency distribution this means that the frontier technology may not be an appropriate reflection of the technology in use by inefficient enterprises this article presents the use of conditional regression quantiles to consider how the value of environmental inputs measured by their contributions to production vary across efficiency quantiles we employed a case study of rangelands beef production in australia to consider how environmental health differentially contributes to production values across efficiency quantiles our approach generates detailed insights into the nature of environmentally sourced technical inefficiency and suggests that conditional quantile regression approaches are ideal for consideration of issues wherein substantial heterogeneity exists limiting the information content of conditional mean based analyses

financial performance and survival of multinational corporations in china this study investigates the impact of entry timing mode of entry market focus and location advantages on the financial performance and survival of multinational corporations mncs in china three major results were found first mncs that entered china in an earlier year had a higher level of profit than those that entered in a later year second equity joint ventures ejvs had a higher profit level than cooperative operations or wholly foreign owned subsidiaries third mncs that utilized well the location advantages in china had a higher profit we also found that ejvs were more likely to survive compared to cooperative operations while wholly owned subsidiaries did not differ from ejvs the findings are based on a 2 year study of about 1000 mnc operations in china copyright 1999 john wiley sons ltd

licensing duration in foreign markets a real options perspective licensing can be considered an initial trial of a foreign market before a firm fully commits to it through other investment modes the length of trial has great importance because licensing duration represents part of the licensing agreement when it is too short the firm may not acquire the necessary experience and knowledge of the foreign market but if it is too long the firm misses optimal expansion timing arguing that licensing can be considered as a european style real option with a fixed holding period we develop and test a model of the determinants of licensing duration in foreign markets empirical results based on a sample of firms in various countries show that uncertainty and threat of competitive pre emption in the foreign market are related to shorter duration of the technology licensing agreements we also find that irreversibility of the impending investment moderates the relationships between uncertainty and duration specifically market and technology uncertainties in the foreign market induce shorter contracts under low levels of irreversibility

split management control and international joint venture performance a framework is presented to characterize four different ways in which management control is partitioned between a multinational enterprise mne and local partners within international joint ventures jvs split control management shared management mne partner dominant management and local partner dominant management the framework was tested using a sample of international jvs in korea we found that jvs following the split control management performed better than any other approach no performance differences were found among the remaining three types of management control this suggests that mnes and local partners should split control that is choose the activities to control so that those chosen activities can be matched with their respective firm specific advantages

the measurement and sources of technical inefficiency in the indonesian weaving industry production function models are estimated with a time series of cross section data on indonesian weaving establishments the sources of technical inefficiency are investigated three firm attributes are identified as being potentially related to firm efhciency tbey are firm ownership age and size the importance of these attributes as sources of inefficiency in the indonesian weaving industry is investigated and the implications of the find ings discussed

the role of globalization on the recent evolution of energy demand in india implications for sustainable development using annual data for the period 1971 2012 this study explores the relationship between globalization and energy consumption for india by endogenizing economic growth financial development and urbanization the cointegration test proposed by bayer hanck 2013 is applied to estimate the long run and short run relationships among the variables after confirming the existence of cointegration the overall results from the estimation of an ardl energy demand function reveal that in the long run the acceleration of globalization measured in three dimensions economic social and overall globalization leads to a decline in energy demand in india furthermore while financial development is negatively related to energy consumption economic growth and urbanization are the key factors leading to increased energy demand in the long run these results have policy implications for the sustainable development of india in particular globalization and financial development provide a win win situation for india to increase its economic growth in the long run and become more environmentally sustainable

sequencing the expansion of geographic scope and foreign operations by born global firms born global firms are not actually born global but rather internationalize rapidly from their inception by expanding their geographic scope and extent of foreign operations however it remains unclear whether such firms 1 simultaneously expand along both dimensions 2 focus on expanding along a single dimension at a given time and switch interchangeably between expanding geographic scope and extent of foreign operations in subsequent periods or 3 stick solely to a specific internationalization path over several subsequent periods this study theorizes and empirically demonstrates that born global firms stick to a dominant internationalization path over subsequent periods arguably this phenomenon reflects managerial efforts to reduce the perceived risk of internationalization and their preference to develop and leverage capabilities that are specific to either of the internationalization paths until the economies of further expanding this path are exhausted