what s theoretically novel about emerging market multinationals we review the classic theory of the mne and past attempts to use it to understand the internationalization of firms from emerging markets we offer two criteria to determine whether emnes modify classic theory or not 1 establishing appropriate theoretical reference points and 2 distinguishing between theoretical constructs and empirical variables we suggest that the literature can benefit from moving beyond comparing emnes to dmnes and focusing instead on more fruitful issues specifically emerging markets offer the opportunity to observe the origin of the capabilities of mnes in general and the development of the institutional ecosystem that supports internationalization

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

competition cooperation and innovation organizational arrangements for regimes of rapid technological progress abstract discussions of the link between firm size and innovation are outmoded because the boundaries of the firm have become fuzzy in recent decades strategic alliances constellations of bilateral agreements among firms are increasingly necessary to support innovative activities such alliances can facilitate complex coordination beyond what the price system can accomplish while avoiding the dysfunctional properties sometimes associated with hierarchy antitrust law and competition policy need to recognize that these new organizational forms are often the functional antithesis of cartels though they may have certain structural similarities a more complete understanding of bilateral contracts and agreements ought to reveal when and how cooperation can support rather than impede innovation and competition

the sustainable supply chain network competition with environmental tax policies abstract this paper captures different environmental tax policies in a multi tiered supply chain network competition context we derive the governing equilibrium conditions for the noncooperative game theory models for each firm and provide the equivalent variational inequality formulations the numerical examples investigate the impacts of emission tax policies and product differentiation on the competing firms and compare the effects of different environmental policies flat emission tax rates progressive emission taxes and the government command and control regulations with emission standards on equilibrium product demands prices total emissions and overall profits the computational results indicate that the implementation of environmental tax policies along with an increase in consumers environmental concerns can not only motivate the firms to perform sustainable operations but also reduce the total carbon footprint furthermore the low cost progressive emission tax policies can be as effective as the high flat emission tax rate in terms of reduction in carbon footprint therefore the model developed in this paper can be used by the policymakers and the firms to evaluate the effects of different environmental tax policies in a supply chain competition context

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

the liability of localness in innovation i analyze differences in the innovativeness of domestic firms and subsidiaries of foreign firms operating in the same country i argue that domestic firms suffer a liability of localness in innovation or a competitive disadvantage in product innovation relative to subsidiaries of foreign firms i propose that this liability of localness is driven by the relatively lower levels of multiculturalism in employees of domestic firms in comparison with subsidiaries which limit the identification transfer and integration of a large diversity of knowledge that supports product innovation i also propose that managers of domestic firms can compensate for this liability of localness in two ways by investing in the training of their employees and by exporting training modifies the mindsets and abilities of employees and enables them to become more cognitively multicultural which facilitates product innovation exporting changes employees mindsets as they become exposed to new ideas available abroad which also facilitates product innovation i test these arguments on a sample of manufacturing firms and find that although domestic firms introduce fewer new products than subsidiaries of foreign firms they introduce more new products than subsidiaries at the same level of investment in language training and of exports

research advances in environmentally and socially sustainable operations abstract consumers and governments are pressuring firms to strike a balance between profitability and sustainability however this balance can only be maintained in the long run if the firm can take a holistic approach to sustain the financial flow profit resource flow planet and development flow people for the entire ecosystem comprising poor producers in emerging developing markets global supply chain partners consumers in developed countries and the planet by considering the flows associated with different entities within the ecosystem we classify and summarize recent operations research management science or ms research developments also we identify several gaps for future research in this important area

durable goods monopolists durable goods monopolists face special problems because the sale of their products creates a secondhand market not controlled by the monopolist to the extent the monopolist is able to rent his product rather than sell it or to make binding promises about his future production such problems are ameliorated given the inability to do the above the monopolist is led to producing goods less durable than those produced by either competitive firms or monopolist returns a reverse averch johnson result that monopolist sellers may invest less in fixed costs including plant modernization and research and development than would the renters is shown it is also shown that even though sellers have less monopoly power than renters and nondurable goods monopolists it is possible that the seller will cause a greater deadweight loss than the other types of monopolies

a test of a theory of strategically retaliatory trade barriers within a game theoretic lobbying model the formation of strategic trade barriers is examined trade barriers are modeled as comprising a political component as well as a strategically retaliatory component that serves to deter foreign protectionism within this theoretical framework the optimal policy is to erect retaliatory barriers against all imports even though the partner country protects only a subset of goods that are traded the theory is described and tested using cross industry u s nontariff barrier ntb data against nine developed countries in 1983 a three equation simultaneous tobit model is estimated for this purpose whether u s ntbs against these partner countries are retaliatory and if so whether the cross industry structure of protection validates the predictions of the theory are empirically addressed

an empirical examination of multinational corporate capital structure this paper examines whether there are systematic differences in the traditional capital structure determinants between mncs and dcs and if there are additional uniquely international factors that may help explain the capital structure choice of multinational corporations the results suggest that specific international factors such as political risk and exchange rate risk are relevant to the multinational capital structure decision that multinationals have higher agency costs than purely domestic firms and that international diversification does not lower earnings volatility for multinational corporations

bargaining and waiting until recently the final word on bargaining with full information had been rubinstein s 1982 seminal work which concluded that an agreement will be reached immediately and the first mover will have the advantageous share rubinstein s model was one of alternating offers made at fixed time intervals many variations of the model have emerged and until recently they mainly focus on asymmetric information with some having the uninformed agent making all the offers the conclusion from examining these variations is that the equilibrium is highly sensitive to the exact specification of the institutional structure in more recent work perry and reny 1990 perry and reny 1993 sakavics 1993 and nickerson sadanand and sadanand 1994 endogenize the structure of the bargaining by allowing the order and timing of play to be determined endogenously the first three papers endogenous structure models deal with the full information setting and the last is an asymmetric information model 2 in addition to the exogenously given minimum reaction time for responding to offers made by the other player the endogenous structure models introduce the important innovation of an exogenous waiting time a time between a player s offer and his next offer they also allow players to make simultaneous offers which sakovics later disallows the findings in this recent literature are rather startling i the waiting time has a profound impact the longer the time the greater the share the player can command 3 ii the consequence of simultaneous offers is multiple equilibria when the reaction time is zero a continuum of shares lying between the two unique rubinstein shares can result and additional continua of shares arise with delayed agreement when the reaction times are positive iii equilibrium paths are almost exclusively characterized by simultaneous offers in this paper we examine the question of simultaneous offers and reconcile the conflict between the infrequency of simultaneous offers in real life bargaining and their prevalence in the endogenous structure models we

foundations of dynamic monopoly and the coase conjecture subgame perfect equilibria are characterized for a market in which the seller quotes a price each period assume zero costs positive interest rate continuum of buyers and some technical conditions if buyers valuations are positive then equilibrium is unique buyers strategies are stationary and the price sequence is determinant along the equilibrium path but possibly randomized elsewhere otherwise a continuum of stationary equilibria can exist but at most one with analytic strategies coase s conjecture is verified for stationary strategies reducing the period length drives all prices to zero or the least valuation connections to bargaining models are described journal qf economic literature classification

the past is prologue moving on from culture s consequences in this article we examine the theoretical and empirical understanding of culture within the international business discipline post the publication of kirkman lowe gibson 2006 in their paper kirkman et al 2006 provide a comprehensive retrospective on the impact of hofstede s seminal publication culture s consequences in addition to looking at what followed on from hofstede they laid out a research program they believed was necessary to move the study of culture forward unfortunately in their current review published in this issue they outlined how little if any of their thoughtful guidance was taken to heart in our perspective we believe that this signals that the study and use of culture in the international business field has become stuck in a theoretical and methodological rut and more radical thinking is necessary if we are going to advance beyond more of the same science that simply reiterates repeatedly that that culture matters without any coherent advancement of the key role that it plays in the international arena

countervailing power revisited abstract the paper uses the nash bargaining concept to study the predictions of the theory of countervailing power within two theoretical models a cournot model and a model of perfect competition within the cournot model a decrease in the number of retailers unambiguously leads to an increase in equilibrium consumer prices in the model of perfect competition the reverse is true one may thus conclude that countervailing power can have positive effects for the consumers only if competiton at the retail level is very fierce

choice of foreign market entry mode impact of ownership location and internalization factors firms interested in servicing foreign markets face a difficult decision with regards to the choice of an entry mode the options available to a firm include exporting licensing joint venture and sole venture several factors that determine the choice of a specific foreign market entry mode have been identified in previous literature these factors can be classified into three categories ownership advantages of a firm location advantages of a market and internalization advantages of integrating transactions this study examines the independent and joint influences of these factors on the choice of an entry mode multinomial logistic regression model is employed to test the hypothesized effects

platform based mobile payments adoption in emerging and developed countries role of country level heterogeneity and network effects platform based payment services such as mobile wallets mwallet provide a unique value proposition to both customers and firms over other digital payment methods interestingly the story of platform based mobile payments adoption is unfolding differently across countries with some emerging countries china and india outperforming developed countries using extant literature in international business international marketing industry reports and qualitative interviews we present a conceptual framework for mobile payments adoption at an aggregate level for customers and retailers we present a set of hypotheses and derive the explanations using the literature on network effects and institutional theory we test our framework on a diverse set of 30 countries and confirm the presence of network effects and the differential impact of perceived value inertia and culture on the adoption level of innovators and imitators importantly we find a significant level of within and between country heterogeneity for mobile payment adoption which provides further evidence for leapfrogging by emerging countries in the context of the mass adoption of mobile payments these findings have significant implications for theory and practice in multinational organizations

bargaining and boldness abstract we study a multiperson bargaining problem with general risk preferences through the use of shaked s game of cycling offers with exogenous breakdown if preferences are smooth then as the risk of breakdown vanishes the limiting outcome is one in which bargainers are equally marginally bold where a bargainer s marginal boldness measures his willingness to risk disagreement in return for a marginal improvement in his position under smoothness any ordinal nash solution is an equally marginally bold outcome however unlike the concept of the ordinal nash solution a unique equally marginally bold outcome exists in natural cases in particular if all bargainers have risk averse preferences of the rank dependent expected utility type for these preferences the equally marginally bold outcome maximizes a bargaining power adjusted asymmetric nash product where the degree of asymmetry is determined by the disparity in the marginal valuation of certainty among bargainers journal of economic literature classification numbers c72 c78 d81

low carbon production with low carbon premium in cap and trade regulation abstract manufacturers face a choice of whether to reduce their carbon emissions through employing low carbon technologies though many carbon regulations are set up to curb carbon emissions some firms choose not to take low carbon production because the additional cost of low carbon progressing is high however low carbon production would be a better alternative when we consider consumer s low carbon premium in the cap and trade system in this work we solve the manufacturer s multi product joint pricing and production problem when consumers value the low carbon product higher than the ordinary product our findings provide firms with conditions where low carbon production is profitable furthermore we find that the cap and trade would constrain the total carbon emissions and promote low carbon production simultaneously under certain conditions

the impact of culture on the strategy of multinational enterprises does national origin affect ownership decisions this paper tests the proposition that national origin affects the strategies of multinational enterprises by looking at the determinants of the choice they make between entering the united states through partially versus wholly owned subsidiaries we pool entries into the united states made by firms based in two countries japan and finland which differ both in their cultural characteristics and in their cultural distance to the united states after carefully controlling for the known firm and industry level determinants of subsidiary ownership strategies we find that cultural distance between the home base of the investor and the target country or perhaps political risk exerts a powerful influence on ownership of subsidiaries but cultural characteristics of the home base do not

solving the single country sample problem in cultural distance studies selecting appropriate samples in cultural distance research is vital to producing valid empirical results over 80 of empirical cultural distance studies use a sample comprised of either a single home country with varying host countries or a single host country with varying home countries when difference scores are used in the calculation of cultural distance based on single country samples the resulting cultural distance measures typically are highly correlated with one or more of the varying countries underlying national culture dimensions making it impossible to determine whether findings are due to cultural distance or to varying countries national culture effects this is referred to as a confounded variables problem and means that for an overwhelming number of cultural distance studies we cannot with certainty have confidence in the verity of their findings to resolve this uncertainty we propose that cultural distance scholars select samples comprised of at least two home host countries we empirically demonstrate that two country samples where most of the national culture dimensions for the two countries differ create certitude with respect to results eliminating the cultural distance confounded variables problem we describe the single country sample problem illustrate the proposed a priori two country solution and suggest avenues for future research

design of sustainable supply chains under the emission trading scheme increase in environmental concerns together with legislations are forcing industries to take a fresh look at the impact of their supply chain operations on the environment this paper introduces a mixed integer linear programming based framework for sustainable supply chain design that considers life cycle assessment lca principles in addition to the traditional material balance constraints at each node in the supply chain indeed the framework distinguishes between solid and liquid wastes as well as gaseous emissions due to various production processes and transportation systems the framework is used to evaluate the tradeoffs between economic and environmental objectives under various cost and operating strategies in the aluminum industry the results suggest that current legislation and emission trading schemes ets must be strengthened and harmonized at the global level in order to drive a meaningful environmental strategy moreover the model demonstrates that efficient carbon management strategies will help decision makers to achieve sustainability objectives in a cost effective manner

client profitability of diffusion segments across countries for multi generational innovations the influence of firm market and cross national differences there is scant research on the important managerial question of how to maximize returns on investments in either international business or international marketing literature we propose and test a conceptual framework using data from a large technology manufacturer service provider despite early adoption by innovators and early adopters the early majority segment is most profitable however the late majority segment and the early adopters segment are the next most profitable in the developed and emerging countries respectively we propose a decision support framework incorporating cross national distances on single generation and multi generation profitability for mnes offering multi generational products in multinational markets to be more profitable

inventory management under joint product recovery and cap and trade constraints abstract the influence of environmental legislation in inventory control policies is explored previous work on product recovery is extended using the introduction of a cap and trade mechanism in an infinite horizon inventory system in which demand and returns are uncertain demand is met through two different sources namely manufacturing and remanufacturing which differ in cost and greenhouse gas emissions the main contributions of this paper are 1 comparison of system operation in terms of cost and environmental performance under conventional and green inventory policies and 2 managerial insights into the structure of green inventory policies to illustrate the impact of a cap and trade scheme a numerical example is used we solved the problem as a markov decision process and characterized the inventory policies based on the optimal replenishment strategy we also conducted a sensitivity analysis to examine the effect of underlying environmental parameters such as the emission cap and the allowance price in the policy structures the results indicate that decisions are sensitive to carbon prices the inventory policy could play an important role in compliance with environmental legislation although there is threshold carbon price beyond which the company must focus on strategic decisions rather than tactical decisions

agricultural trade negotiations as a strategic game abstract this study views multilateral trade negotiations as a strategic game among nations or regions including taxpayer consumer and producer components payoffs are calculated from an intermediate run international trade model initialized with 1989 data for the public at large the nash equilibrium and socially optimal outcome is liberalization of trade unilateral or multilateral maintenance of the status quo of market distortions costing the world billions of dollars each year is rational only if producer payoffs are sovereign so that strategies optimal for producers are considered optimal for nations remedial policies are discussed including opportunities for economic education political system reform and less incentives for producers to scuttle multilateral trade negotiations

do carbon taxes work analysis of government policies and enterprise strategies in equilibrium abstract to achieve the goal of carbon emission reduction a number of countries have implemented carbon tax policies and carbon pricing has become an important tool this paper discusses the interactions between a government and an enterprise for implementing carbon taxes over time or by level of tax considering greenhouse gas emission we examine the impacts of various carbon tax policies on enterprises investments in new technology their reductions in production quantity and governments tax remittances a case study of the strategic responses of three firms in taiwan s electronics cement and steel industries to two carbon emission policies promulgated by government shows that appropriate levels of tax can induce an enterprise to alter its production processes to achieve emission reduction as part of a long term business strategy

bargaining with incomplete information an infinite horizon model with two sided uncertainty the resolution of any bargaining conflict depends crucially on the relative urgency of the agents to reach agreement and the information each agent has about the others preferences this paper explores within the context of an infinite horizon bargaining model with two sided uncertainty how timing and information affect the rational behaviour of agents when commitment is not possible since the bargainers are uncertain about whether trade is desirable they must communicate some of their private information before an agreement can be reached this need for learning due to incomplete information about preferences results in bargaining inefficiencies trade often occurs after costly delay thus the model provides an explanation for the inefficient bargaining behaviour that appears to occur often in practice

recent advances in oligopoly theory from a game theory perspective abstract this paper surveys the contribution that recent developments in game theory have made to the understanding of oligopoly theory it is argued that conventional models suffer from the problem that there are a number of solution concepts offered with little guidance as to which should be selected and this is related to the static nature of the models employed one important development in game theory has been the analysis of repeated games and when applied to oligopoly theory this suggests that outcomes may be more cooperative than conventional theory suggests related to this is the requirement that firms employ credible threats to punish cheating from cooperative outcomes and the paper examines the extent to which imperfect information may restrict the scope of firms to employ such punishments one way in which firms may seek to make threats credible is through strategic investments for example in production capacity and the paper explores how competition over price or output is integrated with competition over instruments for strategic investment

research note multinational diffusion models an alternative framework the literature on cross national diffusion models is gaining increased importance today due to the needs of present day managers new product sales growth in a given nation or society is affected by many factors rogers 1995 and of these sociocontagion or word of mouth has been found to be the most important factor that characterizes the diffusion process bass 1969 moore 1995 hence it is interesting and perhaps challenging to analyze what would happen if a new product diffuses in parallel in two neighboring but culturally different countries not only will we expect the diffusion process in the two countries to be different but we will also expect some interaction among them especially if the two societies mingle with each other there are two streams of research in cross national diffusion the first type focuses on exploring the differences between diffusion processes in two countries and finding out whether those differences can be attributed to social and cultural differences between the countries involved examples of this type of research are found in takada and jain 1991 gatignon et al 1989 helsen et al 1993 and kumar et al 1998 these studies did find some relationship between the cultural differences of the countries studied and the differences in the diffusion process the second stream of research focuses on modeling explicitly the interaction between the diffusion processes in two countries the interaction is typically captured through lead lag effect eliashberg and helsen 1996 kalish et al 1995 where the sales process in the lead country i e the country where the product was first introduced is modeled to affect the sales process in the lag country i e the country where the product was introduced a few years later another method to study the interaction among the diffusion processes in two countries was suggested by putsis et al 1997 who used a mixing model to empirically explore the existence of such interactions these studies basically observed that when a new product is introduced early in one country and with a time lag in subsequent countries the consumers in the lag countries learn about the product from the lead country adopters resulting in a faster diffusion rate in the lag countries ganesh and kumar 1996 formulized this effect as the learning effect and subsequently ganesh et al 1997 found this learning effect to be influenced by country specific factors cultural similarity economic similarity and time lag elapsed between the lead and the lag countries and product specific factors continuous vs discontinuous innovation and the presence or absence of a standardized technology a careful analysis of the extant literature on the second stream of research would reveal that neither the learning effect model nor the mixing model can be modified to accommodate the other model our contribution to the literature exactly addresses this point in this paper an alternative framework is proposed that has two unique features first the framework is flexible enough to not only account for the lead country affecting the lag countries and vice versa but also to accommodate the simultaneous interaction among countries in explaining the diffusion processes in the countries concerned using multiple product categories and a variety of new product introduction situations we empirically demonstrate the flexibility and efficiency of our proposed framework we found strong evidence of all types of interactions namely lead lag lag lead and simultaneous which evidence suggests that one cannot afford to omit any of the interactions the second unique feature of our paper is the estimation procedure that we used because statistical estimation of a dynamic process that includes lead lag lag lead and simultaneous types of causality within a single framework is not straightforward we suggest an iterative estimation procedure for the estimation this new procedure not only proved to be flexible in accommodating different types of interaction but also converged rather quickly in all of the cases that we empirically tested noting that the statistical properties of these estimators are not generally available we carried out a simulation exercise that clearly revealed the efficiency of the proposed estimation procedure after analyzing the interaction we went further and showed that the magnitude of the cross national influences is affected by certain country specific and product specific factors the flexibility of the proposed method over the existing methods is demonstrated through obtaining superior forecasts with the proposed method several interesting insights for managers concerned with formulating international marketing strategies are offered

predicting the path of technological innovation saw vs moore bass gompertz and kryder competition is intense among rival technologies and success depends on predicting their future trajectory of performance to resolve this challenge managers often follow popular heuristics generalizations or laws such as moore s law we propose a model step and wait saw for predicting the path of technological innovation and we compare its performance against eight models for 25 technologies and 804 technologies years across six markets the estimates of the model provide four important results first moore s law and kryder s law do not generalize across markets neither holds for all technologies even in a single market second saw produces superior predictions over traditional methods such as the bass model or gompertz law and can form predictions for a completely new technology by incorporating information from other categories on time varying covariates third analysis of the model parameters suggests that i recent technologies improve at a faster rate than old technologies ii as the number of competitors increases performance improves in smaller steps and longer waits iii later entrants and technologies that have a number of prior steps tend to have smaller steps and shorter waits but iv technologies with a long average wait time continue to have large steps fourth technologies cluster in their performance by market

low carbon product selection with carbon tax and competition effects of the power structure abstract this paper considers product selection strategies of two competitive firms in the presence of carbon tax optimal strategies are developed for product selection of the firm with two game structures namely the nash game and the stackelberg game by which the paper conducts an analytical examination of the effect of power structure on the product selection strategy of the firm over various levels of carbon tax rate the critical managerial findings derived with the studies are as follows i two competitive firms will always adopt the same product strategy with the nash pricing game regardless of the carbon tax rate which is in contrast to that they will adopt a differentiated product strategy over the low carbon tax rates with the stackelberg pricing game ii two competitive firms will both select the common or low carbon product with randomness over the middle carbon tax rates with the nash product selection game which is contrast to that the randomness in their product selections is removed with the stackelberg product selection game which leads to an existence of the pure strategy stackelberg equilibrium for their product selection strategies over the middle carbon tax rates the inherent mechanisms leading to these essential differences are also discussed in the paper

non cooperative bargaining theory an introduction the paper provides an informal introduction to some of the main themes of the recent literature on non cooperative or sequential bargaining models it focuses in particular on the relationship between the new approach and the traditional axiomatic approach exemplified by nash bargaining theory it illustrates the new insights offered by the non cooperative approach by reference to a detailed analysis of the manner in which the presence of an outside option available to one of the parties will affect the negotiated outcome finally the difficulties which arise in extending this analysis to two person bargaining with incomplete information and to n person bargaining are discussed this is a revised version of the fourth review of economic studies lecture presented in april 1985 at the joint meeting of the association of university teachers of economics and the royal economic society held in oxford the choice of lecturer is made by a panel whose members are currently professors hahn mirrlees and nobay and the paper is refereed in the usual way this paper aims to provide an informal and elementary introduction to an approach to bargaining which has received a great deal of attention over the past few years the approach involves writing down some particular sequence of moves offers and replies to be made over time in the course of negotiations and then looking for a non cooperative equilibrium in the game thus specified in practice a perfect equilibrium or in games of incomplete information a sequential equilibrium while the approach appears at first sight to be very different in spirit from the traditional axiomatic approach in which a bargaining solution is specified by appealing to a number of general requirements which are deemed appropriate on the basis of some a priori considerations the two approaches are in fact complementary while the

the dynamics of the liability of foreignness a global study of survival in financial services we study the impact of foreignness on survival in interbank currency trading worldwide over the period 1974 93 in particular we develop hypotheses on the behavior of the liability of foreignness over time and on the consequences of evolving sources of firm level competitive advantage on this liability we test these hypotheses on the population of 2667 market making trading rooms located in 47 countries worldwide that either existed in 1974 or entered the industry between 1974 and 1993 the results show that there is a liability of foreignness and that it changes over time further strategic and organizational factors such as the adoption of technology by these firms and their mode of internal control significantly influenced survival as did location related factors such as the intensity of local and foreign competition 1997 by john wiley sons ltd

tactical supply chain planning under a carbon tax policy scheme a case study greenhouse gas emissions are receiving greater scrutiny in many countries due to international forces to reduce anthropogenic global climate change industry and their supply chains represent a major source of these emissions this paper presents a tactical supply chain planning model that integrates economic and carbon emission objectives under a carbon tax policy scheme a modified cross entropy solution method is adopted to solve the proposed nonlinear supply chain planning model numerical experiments are completed utilizing data from an actual organization in australia where a carbon tax is in operation the analyses of the numerical results provide important organizational and policy insights on 1 the financial and emissions reduction impacts of a carbon tax at the tactical planning level 2 the use of cost emission tradeoff analysis for making informed decisions on investments 3 the way to price carbon for maximum environmental returns per dollar increase in supply chain cost

the economics of organization the transaction cost approach the transaction cost approach to the study of economic organization regards the transaction as the basic unit of analysis and holds that an understanding of transaction cost economizing is central to the study of organizations applications of this approach require that transactions be dimensionalized and that alternative governance structures be described economizing is accomplished by assigning transactions to governance structures in a discriminating way the approach applies both to the determination of efficient boundaries as between firms and markets and to the organization of internal transactions including the design of employment relations the approach is compared and contrasted with selected parts of the organization theory literature

emission policies and their analysis for the design of hybrid and dedicated closed loop supply chains abstract government legislation and consumer awareness on carbon emissions have required industries to seek alternative ways to reorganize their supply chains therefore industries have to consider not only the activities in the forward supply chain but also in the reverse supply chain an integrated supply chain that combines the activities of both the forward and reverse supply chains is referred to as the closed loop supply chain clsc there are two main types of clsc structures hybrid and dedicated in this research we analyze the effect of carbon emissions consideration on the design of both hybrid and dedicated clscs in particular we develop a set of integrated mixed integer linear programming milp models to quantify and compare both of the environmental and economic impacts of carbon emissions policies carbon cap carbon tax and carbon cap and trade and market factors scale effect product return rate and the customer demand on the design of clscs with respect to both clsc structures our analysis shows that when market conditions are considered total cost and total emissions are more sensitive to customer demand than to the scale effect and the product return rate when an industry faces fluctuation on the quantity of the returned products adopting a dedicated clsc would lead to a lower total cost under cap and trade policy dedicated clsc can produce less total emissions we also observe that dedicated clsc is more cost efficient under carbon cap policy and hybrid clsc is more emissions efficient when the carbon tax is introduced

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

tariff retaliation from a strategic viewpoint one of the most perplexing questions in international trade concerns the rationale for the existence of widespread barriers to trade in the current world economy 1 the numerous explanations that have been offered for the existence of tariffs are generally based on one of the following four arguments a the existence of market imperfections monopolies externalities etc invalidates the free trade theorem and thus free trade is not desirable or perhaps not obtainable b sluggish adjustment of the world economy to free trade implies that the existing tariffs are a temporary phase c non economic phenomena such as nationalism induce political or institutional tariff arrangements or d protectionist motives to improve the welfare of a country or a group of individuals in that country induce all countries to simultaneously impose tariffs while all of these factors can be important in the explanation of the existence of tariffs the purpose of this paper is to develop an extended analysis of the protectionist view the protectionist view is based on the optimal tariff theorem which states under very restrictive assumptions that a country can improve its welfare by imposing a tariff 5 12 a serious difficulty with this explanation is that the optimal tariff theorem assumes that no retaliation occurs as scitovsky 12 points out a country that could benefit from charging a tariff has monopoly power in trade surely a country sophisticated enough to exercise monopoly power in trade would expect its rivals to respond when tariffs are erected hence scitovsky argues that if protection is the monopolistic behavior of a collectivity two countries raising tariffs against each other are bilateral monopolists and we know that bilateral monopoly results in the two parties coming to some working agreement whose terms depend on their bargaining skill and are analytically indeterminate scitovsky concluded that a tariff war would result in an indeterminate solution with both countries worse off johnson 6 formalized scitovsky s agrument by allowing each country to adopt a cournot type assumption regarding its rival s reaction to a change in its own tariff thus

psychic distance and organizational performance an empirical examination of international retailing operations we develop a reconceptualization and operationalization of psychic distance that broadens the concept we then empirically test this operationalization and investigate the relationship between psychic distance and organizational performance our results suggest that psychic distance as a summary construct explains a significant proportion of the variance in financial performance and strategic effectiveness however disaggregation of the construct substantially increases its explanatory power the results also support a psychic distance paradox where psychic distance has a positive relationship with organizational performance

global takeoff of new products culture wealth or vanishing differences the authors study the takeoff of 16 new products across 31 countries 430 categories to analyze how and why takeoff varies across products and countries they test the effect of 12 hypothesized drivers of takeoff using a parametric hazard model the authors find that the average time to takeoff varies substantially between developed and developing countries between work and fun products across cultural clusters and over calendar time products take off fastest in japan and norway followed by other nordic countries the united states and some countries of midwestern europe takeoff is driven by culture and wealth plus product class product vintage and prior takeoff most importantly time to takeoff is shortening over time and takeoff is converging across countries the authors discuss the implications of these findings

a bargaining model with incomplete information about time preferences etude d un jeu de negociation strategique sequentiel avec information incomplete caracterisation d une classe d equilibres sequentiels appeles equilibres sequentiels de negociation et demonstration de l unicite de cet equilibre

national culture the missing country level determinant of corporate governance it is well known that firm level corporate governance practices vary mainly between rather than within countries but country level factors such as legal and financial institutions explain less than 50 of this cross country variation in this article we show that two dimensions of national culture individualism and uncertainty avoidance capture about 90 of the country fixed effects and outperform the country level explanatory variables used in prior literature we argue that culture works through a tradeoff between managerial expertise and certainty of control a tradeoff largely overlooked by prior literature that captures a country s preference for the anglo saxon approach versus the direct control approach for governance consistent with this argument we find that the effect of culture on corporate governance varies across firms with different needs for managerial expertise and certainty of control we also find that culture interacts with other factors to determine firm level governance

explaining the national cultural distance paradox past studies of the relationship between national cultural distance and entry mode choice have produced conflicting results some scholars find cultural distance associated with choosing wholly owned modes others find cultural distance linked to a preference for joint ventures in this paper we provide both theoretical and empirical evidence to explain the discrepant findings and thus help to resolve the national cultural distance paradox

trade negotiations in a nash bargaining model abstract this paper examines the impact on trade negotiation outcomes due to different feasible utility payoff sets when a country s tastes or endowment patterns are biased towards a single commodity or rely heavily on international exchange to improve utility the negotiated outcome in a two country nash shapley bargaining framework generally benefits its opponent

the effect of cultural distance on entry mode choice international diversification and mne performance a meta analysis although a growing literature indicates that cultural distance that is differences between national cultures is an important determinant of organizational actions and performance both empirical and theoretical concerns abound in this study the relationships of cultural distance with entry mode choice international diversification and mne performance are examined by meta analyzing data from 66 independent samples with cumulative sample sizes ranging from 2 255 to 24 152 regression results failed to provide statistical evidence of significant relationships between cultural distance and entry mode choice international diversification and mne performance the examination of moderator effects however yielded important results we found a strong negative association between cultural distance and entry mode choice for us based mnes the cultural distance international diversification relationship was negative for high technology industries while it was positive for other industries cultural distance also had a strong positive effect on mne performance for developed country investments a similar strong positive relationship was found between cultural distance and international diversification in studies with more recent samples results of this study indicate that substantial additional research is needed before the role of cultural distance is fully understood

asia s materialists reconciling collectivism and materialism materialism has an ugly face the dominant view of materialism regards materialists as self prioritizing individuals who oppose collective and prosocial goals in favor of a lifestyle led by money possessions and status the present research argues that there is a side of materialism that is concerned with collective oriented interests we examine the nature and consequences of collective oriented materialism the belief system that ascribes importance to possessions for their symbolic and signaling capacities to construct desirable social attributes drawing from cultural and consumer theories we find considerable support that materialists espouse a collective oriented quality to an otherwise self oriented interest towards possessions

developing countries and mnes extending and enriching the research agenda foreign direct investment fdi through multinational enterprises mnes has emerged in the last decade as the principal source of foreign capital for developing countries meyer this issue underlines the need for international business ib scholars to understand the impact of these investments on host developing countries he offers a useful assessment of the literature and proposes a rich set of questions for further research however his research agenda can be extended and enriched in two ways first ib scholars must study as they always have causation in the opposite direction namely the impact of developing country context on mne behavior and the co evolution of these two variables over time in doing so they must incorporate into their models contemporary issues such as the continued inadequacy of rules for fdi in infrastructure sectors or the clever means by which mnes are rewriting the global rules under which they operate in developing countries e g on intellectual property rights second ib scholars must pay more attention to topics that are not mainstream within the field but are of great importance to developing countries examples include the behavior and performance of a new generation of home grown mnes the role of diaspora in homeland fdi in countries like china and india and the implications of global outsourcing of services

an institutional approach to cross national distance cross national distance is a key concept in the field of management previous research has conceptualized and measured cross national differences mostly in terms of dyadic cultural distance and has used the euclidean approach to measuring it in contrast our goal is to disaggregate the construct of distance by proposing a set of multidimensional measures including economic financial political administrative cultural demographic knowledge and global connectedness as well as geographic distance we ground our analysis and choice of empirical dimensions on institutional theories of national business governance and innovation systems in order to overcome the methodological limitations of the euclidean approach we calculate dyadic distances using the mahalanobis method which is scale invariant and takes into consideration the variance covariance matrix we empirically analyze four different foreign expansion choices of us companies to illustrate the importance of disaggregating the distance construct and the usefulness of our distance calculations which we make freely available to managers and scholars

carbon pricing versus emissions trading a supply chain planning perspective abstract carbon pricing taxes and carbon emissions trading are two globally practiced carbon regulatory policy schemes this paper presents an analytical supply chain planning model that can be used to examine the supply chain performance at the tactical operational planning level under these two policy schemes model implementation and analyses are completed using actual data from a company operating in australia where these environmental regulatory policies are practiced numerical results provide important managerial and practical implications and policy insights in particular the results show that there are inflection points where both carbon pricing and trading schemes could influence costs or emissions reductions an erratic nonlinear emissions reduction trend is observed in a carbon pricing scheme as the carbon price increases steadily whereas emissions reduction in a carbon trading scheme follows a relatively linear trend with a nonlinear cost increase overall a carbon trading mechanism although imperfect appears to result in better supply chain performance in terms of emissions generation cost and service level even though a carbon tax may be more worthwhile from an uncertainty perspective as emissions trading costs depend on numerous uncertain market conditions

cultural diversity and the performance of multinational firms we test the hypothesis that culturally related international diversification will have a positive impact on firm performance and that the opposite will be true for culturally unrelated globalization cultural diversity for fortune 500 firms was used to predict performance over a ten year period 1985 1994 controlling for several organizational and industry characteristics regression tests using nine indicators of cultural diversity revealed no significant cultural effects alternate interpretations are offered

the impact of carbon pricing on a closed loop supply chain an australian case study concerns about industrial and supply chain implications on our natural environment have existed for decades climate change and greenhouse gas emissions have caused countries to implement various instruments ranging from taxes permits and voluntary incentives to required regulatory policies given this environment we develop a unified optimization model for a closed loop supply chain in which the carbon emission is expressed in terms of dollar carbon cost this study is one of the first to evaluate the forward and reverse supply chain influences on the carbon footprint a comparative analysis is completed with a decomposition of cost and environmental influences across supply chain functions we utilize data from a company located in australia where the government is currently introducing a carbon pricing scheme we find that variations in cost and environmental impacts occur over ranges of carbon pricing characteristics and patterns of the numerical results over these ranges provide insights for corporate key strategies and potential additional government policies these results and implications are analyzed along with limitations and directions for future research

bilateral trade negotiations and trade diversification abstract this paper employs the nash bargaining framework to bilateral trade negotiations since country specific goods are imperfect substitutes for each other the amount of imperfection dictates a country s overall diversification or trade options which in turn determine bargaining gains evidence for semi industrialized countries tends to support this hypothesis

a diffusion theory model of adoption and substitution for successive generations of high technology products this study deals with the dynamic sales behavior of successive generations of high technology products new technologies diffuse through a population of potential buyers over time therefore diffusion theory models are related to this demand growth furthermore successive generations of a technology compete with earlier ones and that behavior is the subject of models of technological substitution building upon the bass bass f m 1969 a new product growth model for consumer durables management sci 15january 215 227 diffusion model we develop a model which encompasses both diffusion and substitution we demonstrate the forecasting properties of the model by estimating parameters over part of the data and projecting shipments for later periods

supply chain design for efficient and effective blood supply in disasters abstract the emergency supply of blood in natural and anthropogenic disasters has proved challenging this article presents a stochastic bi objective supply chain design model for the efficient cost minimizing and effective delivery time minimizing supply of blood in disasters the blood supply network under investigation is comprised of blood donors mobile blood facilities local and regional blood centers and demand points a hybrid solution approach combining the e constraint and lagrangian relaxation methods is developed to solve the proposed model our numerical experiments and subsequent discussions focus on 1 investigating the utility of the proposed model in solving different size problems 2 exploring possible tradeoffs between supply chain cost and delivery time 3 identifying the areas along the supply chain where investments can be made to improve supply chain efficiency and effectiveness and 4 performance benchmarking of the proposed stochastic programming approach

sequential bargaining with incomplete information this paper describes a simple two person two period bargaining game and solves it using the concept of perfect bayesian equilibrium in which the actions of each player convey information which is used by his opponent the paper examines the effects of changes in bargaining costs the size of the contract zone and the length of the bargaining process on such aspects of the solution as the probability of impasse and the likelihood of concessions the combination of information transfer and the lack of pre commitment embodied in perfectness yields many surprising results common perceptions about the effects of parameter changes on bargaining processes are suspect and should be checked in the particular game being discussed

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