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

operating flexibility global manufacturing and the option value of a multinational network the multinational corporation is a network of activities located in different countries the value of this network derives from the opportunity to benefit from uncertainty through the coordination of subsidiaries which are geographically dispersed we model this coordination as the operating flexibility to shift production between two manufacturing plants located in different countries a stochastic dynamic programming model treats explicitly this flexibility as equivalent to owning an option the value of which is dependent upon the real exchange rate the model is extended to analyze hysteresis effects and within country growth options we show that the management of across border coordination has led to changes in the heuristic rules used for performance evaluation and transfer pricing

going the distance the pros and cons of expanding employees global knowledge reach while some scholars have suggested mnes to be superior to markets for managing knowledge across geographically distant boundaries how they actually accomplish this has not been fully considered we address this void by developing and testing a model that highlights the critical role of organizational incentives in enhancing employees internal search and use of knowledge data from 166 knowledge intensive projects support our argument that in contrast to process based incentives that influence more local search outcome based incentives motivate employee teams to reach well beyond their immediate location which in turn enhances performance at the same time we demonstrate that expanded reach also increases the likelihood of accessing more codifiable knowledge which can hurt performance our model examines the contradictory and previously unknown effects of global knowledge reach

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

strategic offering for a wind power producer as a result of subsidies and technological maturity renewable electricity producers have grown in some jurisdictions to clearly dominant positions in the market under this context we propose an offering strategy for a wind power producer with market power that participates in the day ahead market as a price maker and in the balancing market as a deviator uncertainty pertaining to wind power production and balancing market price is represented through a set of correlated scenarios the proposed model is a stochastic mathematical program with equilibrium constraints mpec that can be recast as a tractable mixed integer linear programming milp problem which is solvable using available optimization software results from an illustrative example and two case studies show the effectiveness of the proposed model

do landowners respond to land retirement incentives evidence from the conservation reserve enhancement program previous research on incentive responsivness in voluntary land retirement programs has utilized either hypothetical contingent response methods or actual aggregate enrollment data both of which suffer from potential biases in this paper we analyze program participation in the binary choice setting of the conservation reserve enhancement program crep using data from six states our results suggest that landowners react positively to the incentives that are offered and that increases in one time incentives offered at the time of signup are a more cost effective means to increase enrollment than increases in the incentives offered on an annual basis

a managerial decision model of international cooperative venture formation this paper develops a model of international cooperative venture formation that is centered on the decisionmaking process of mne executives central issues for managerial decisions are developed from the organizational studies literature a framework delineating the sequence and criteria used in the decision to form international cooperative ventures is developed from these defined issues and from existing models propositions pertaining to the venture formation decision process are outlined

the expansion of foreign direct investments discrete rational location choices or a cultural learning process it is recognized in the literature that experience may affect the cost and the uncertainty of operating in foreign markets and experience and market knowledge may therefore influence the location decisions of fdis economic theory does not however predict a general expansion pattern of fdis across industries on the other hand the theory associated with the internationalization process approach highlights the importance of cultural distance and predicts a movement from close to more distant markets as more experience is acquired by the firm the internationalization process approach is rooted in a behavioral theory of the firm

addressing social dilemmas with mascots information and graphics acknolwedgements this research was supported by funding from the national science foundation for the north east water resources network newrnet grant iia 1330406 and from the center for behavioral and experimental agri environmental research cbear which is supported by the u s department of agriculture economic research service we are grateful for comments received during the 2015 northeastern agricultural and resource economics association annual meeting and the 2015 behavioral and experimental economists of the mid atlantic conference authors listed in alphabetical order

foreign entry cultural barriers and learning this paper examines the longevity of foreign entries hypotheses are developed on the mode start ups vs acquisitions and ownership structure wholly owned vs joint ventures in relation to cultural distance the hypotheses are tested within a framework of organizational learning using data on 225 entries that 13 dutch firms carried out from 1966 onwards results show that the presence of cultural barriers punctuates an organization s learning cultural distance is a prominent factor in foreign entry whenever this involves another firm requiring the firm to engage in double layered acculturation we also identify locational paths of learning the longevity of acquisitions is positively influenced by prior entries of the firm in the same country similarly the longevity of foreign entries in which the firm has a majority stake improves whenever the expanding firm engaged in prior entries in the same country and in other countries in the same cultural block

a causal model of linkages among environmental dimensions macro organizational characteristics and performance an integrative model of relationships among environmental dimensions diversification strategy firm size structural divisionalization and economic performance was developed and tested using environmental and organizational data from 110 large manufacturing firms the results suggested that among those organizations 1 higher levels of environmental instability were associated with lower levels of divisionalization and diversification 2 strategy followed structure and 3 size did not mediate the strategy structure relationship furthermore both environmental instability and diversification were positively related to market determined performance and instability was negatively related to operating performance the results provided support for portions of each of three models the external control strategic management and inertial models

nonpoint pollution control inducing first best outcomes through the use of threats abstract this paper develops an economic model to analyze the use of a policy that combines a voluntary approach to controlling nonpoint source pollution with a background threat of an ambient tax if the voluntary approach is unsuccessful in meeting a pre specified environmental goal we show that such a policy can be designed to induce cost minimizing abatement without actually imposing the tax because the threat of imposition of the tax is sufficient to induce voluntary compliance thus the combined policy approach can not only be more effective in protecting environmental quality than a pure voluntary approach but can also be less costly than a pure ambient tax approach however whether the cost minimizing choices are a unique equilibrium or not depends on the design of the tax policy and whether or not it can be applied retroactively all results still hold if the background threat takes the form of a reducing in government subsidies

the effect of rental rates on the extension of conservation reserve program contracts given that the majority of conservation reserve program crp contracts on approximately 36 million acres of enrolled land expire concurrently re enrollment decisions by farmers and the federal government have high budgetary implications using a survey of over 8 000 crp contract holders we apply an ordered response discrete choice model to explicitly model the range in rental rates over which the representative farmer may be ambivalent to renewing the crp contract given the empirical results from the ordered response model we estimate acreage re enrollment as a function of the rental rate and compare them to results of a binomial choice model

experimental evidence on dynamic pollution tax policies abstract this paper uses laboratory experiments to provide primary empirical evidence on dynamic pollution tax policies in particular we investigate a setting where a regulator with incomplete information uses a pollution tax mechanism with a simple endogenous tax rate adjustment rule to cost effectively meet a pollution standard this mechanism provides the opportunity for firms to strategically abate in order to reduce future tax rates the experiments vary important policy design features such as the type of tax ambient or emissions the initial tax rate and the tax rate adjustment speed we find that in equilibrium the pollution standard is met on average for each of these settings the observed long run tax rates vary considerably across policy designs which can be explained with a theory that allows for a mix of strategic and myopic firms along with the recognition that the incentives generated by the policy design can influence whether an agent plays myopically or strategically

subsidiary absorptive capacity and knowledge transfer within multinational corporations the paper reviews extant literature on subsidiary absorptive capacity and knowledge transfer within multinational corporations mncs and proposes an agenda for future research on the relationship between these two constructs it suggests that motivation should be viewed as a moderating factor between subsidiary absorptive capacity and mnc knowledge transfer and that future research should make a clear distinction between the choices of mnc headquarters and those of subsidiaries regarding knowledge transfer the paper proposes that a more comprehensive multi level framework and dynamic model of the determinants of subsidiary absorptive capacity and mnc knowledge transfer be developed in future studies

a framework for integrated risk management in international business treatments of risk in the international management literature largely focus on particular uncertainties to the exclusion of other interrelated uncertainties this paper develops a framework for categorizing the uncertainties faced by firms operating internationally and outlines both financial and strategic corporate risk management responses

wind power investment a benders decomposition approach investment in wind power facilities involves a high level of uncertainty to properly model such uncertainty we consider a large number of scenarios and formulate this investment problem as a mathematical program with equilibrium constraints the target of this problem is to maximize the profit from wind power investment in a target year and it is subject to complementarity constraints describing a large number of market clearing conditions since the profit as a function of the investment variables has as sufficiently convex envelope the considered problem can be solved by benders decomposition thus we propose describe and analyze a benders decomposition algorithm to efficiently tackle the wind power investment problem

trading wind generation in short term energy markets even with state of the art forecasting methods the short term generation of wind farms cannot be predicted with a high degree of accuracy in a market situation these forecasting errors lead to commercial risk through imbalance costs when advance contracting this situation is one that needs to be addressed due to the steady increase in the amount of grid connected wind generation combined with the rise of deregulated market orientated electricity systems in the presence of imbalance prices and uncertain generation a method is required to determine the optimum level of contract energy to be sold on the advance markets such a method is presented here using markov probabilities for a wind farm and demonstrates substantial reductions in the imbalance costs the effect of market closure delays and forecasting window lengths are also shown

absorptive capacity socially enabling mechanisms and the role of learning from trial and error experiments a tribute to dan levinthal s contribution to international business research the concept of absorptive capacity ac of firms cohen and levinthal 1989 and 1990 is a foundational feature of organizational learning and adaptation that has had enormous influence in international business ib and innovation studies and management research in general in this tribute to dan levinthal we discuss the close connection between ac and learning two areas central to dan levinthal s research in relation to different contexts where ac comes into play in extant ib research we discuss four specific aspects of the nexus of ac and learning in the context of ib 1 bridging between intra and inter firm learning 2 a routine based framing of ac that emphasizes processes and capabilities underlying seeking assimilating and innovation in a global setting 3 the role of socially enabling mechanisms and 4 the logic of learning through trial and error experiments within firms and countries

explaining the effect of rapid internationalization on horizontal foreign divestment in the retail sector an extended penrosean perspective we adopt a penrosean perspective to study the effect of rapid international expansion on the subsequent divestment of international operations we draw on regional strategy theory and differentiate penrosean managerial resources by their geographical fungibility to argue that the effect of rapid international expansion on the divestment of international operations varies with the regional patterns of firms international expansion and international experience we test our hypotheses using two stage least squares 2sls estimation on data that capture the international expansion and divestment of retailers over the period 2003 2012

offering strategy of wind power producer a multi stage risk constrained approach given the significant amount of installed generation capacity based on wind power and also due to current economic downturn the subsidies and incentives that have been widely used by wind power producers to recover their investment costs have decreased and are even expected to disappear in the near future in these conditions wind power producers need to develop offering strategies to make their investments profitable counting solely on the market this paper proposes a multi stage risk constrained stochastic complementarity model to derive the optimal offering strategy of a wind power producer that participates in both the day ahead and the balancing markets uncertainties concerning wind power productions market prices demands bids and rivals offers are efficiently modeled using a set of scenarios the conditional value at risk metric is used to model the profit risk associated with the offering decisions the proposed model is recast as a tractable mixed integer linear programming program solvable using available branch and cut algorithms results of a case study are reported and discussed to show the effectiveness and applicability of the proposed approach

characterizing environmental variation a hypothesized relationship between environmental variation and organizational actions is central to organization theory this study shows that conventional summary measures of instability do not capture all dimensions of environmental variation this problem is addressed with frequency amplitude and predictability measures that characterize the pattern of environmental variation the hypothesis that there is a relationship between longitudinal environmental variation and organizational structures actions and outcomes is common to most of the major perspectives of organization theory child 1972 hannan freeman 1977 pfeffer salancik 1978 thompson 1967 although there has been little agreement across theories about the causal mechanisms linking environmental variation with organizational characteristics organizational theorists have generally agreed that there is some relationship between longitudinal environmental change and organizing problems as a result environmental variability is a central independent construct in models of processes as disparate as strategic choice firm failure and executive turnover organizations experience longitudinal environmental variation as variation in the availability of the resources required for organizational survival dess beard 1984 52 these resources include sales and knowledge about product design and manufacturing processes in private enterprises budget allocations in the public sector personnel and other production factors researchers have typically characterized variation in the availability of such resources over time with measures of volatility dynamism or instability that attempt to capture total environmental variation with a single dimension we propose a characterization of the pattern of longitudinal environ

voluntary threat approaches to reduce ambient water pollution this article considers the regulation of nonpoint source water pollution through the use of a voluntary threat approach which allows a polluter group to meet a standard voluntarily but imposes an ambient tax upon noncompliance in particular we develop an endogenous voluntary threat approach that can be parameterized to induce compliance as a unique subgame perfect nash equilibrium and eliminate zero abatement equilibria experimental evidence on the proposed approach as well as the exogenous approach of segerson and wu 2006 suggests that the severity of the threatened tax and the opportunity for communication are critical in determining policy outcomes

performance of the ambient tax does the nature of the damage matter the ambient tax is often considered as an efficient instrument to achieve a first best outcome of ambient pollution when the regulator cannot observe individual emissions or when monitoring costs are prohibitive while this view is supported to a large extent by experimental findings there remains several hurdles that hinder the implementation of the ambient tax in the field one of these hurdles is the nature of the damage experimental findings suggest that the efficiency of the ambient tax is higher under external damage i e if ambient pollution affects non polluters spraggon in j public econ 84 427 456 2002 than under internal damage i e if ambient pollution affects polluters themselves cochard et al in environ resour econ 30 393 422 2005 but this result rests on very different experimental settings therefore we designed a new experiment that allows to compare external and internal damage within a common setting our main finding is that the ambient tax is equally efficient under internal and external damage

local knowledge transfer and performance implications for alliance formation in asia foreign firms in host country environments frequently face location based disadvantages this study proposes three means channels of overcoming local knowledge disadvantages based on a sample of 558 japanese joint ventures jvs located in southeast and east asia we find that partnering with local firms the first channel can be a primary strategy for accessing local knowledge and improving jv performance jv experience in the host country the second channel also mitigates local knowledge disadvantages and leads to increased jv performance the third channel the foreign parent s host country experience leads to increased performance in the absence of a local partner however when a jv is formed with a local partner increased parent experience in the host country leads to decreased performance suggesting that the need for a local partner declines as parent experience in a host country increases

performance effects of added cultural distance in the path of international expansion the case of german multinational enterprises this paper contributes to the debate on the performance impact of added cultural distance in the multinational enterprise s mne s expansion path our research focuses on the ability of mnes to handle complexity associated with added cultural distance in international expansion and on the effect this may have on profitability we hypothesise that firms that make expansion moves involving a high level of added cultural distance per unit of time and those that expand in culturally distant countries in an irregular fashion that is with a higher variability will be less profitable we test these hypothesised relationships using detailed data on 2404 expansion moves undertaken by our panel of 91 german mnes whose expansion paths we tracked during periods ranging between 5 and 20 years

minimization of imbalance cost trading wind power on the short term power market present power markets are designed for trading conventional generation for wind generation to participate in a short term energy market lengthy wind power production forecasts are required although wind speed forecasting techniques are constantly improving wind speed forecasts are never perfect and resulting wind power forecast errors imply imbalance costs for wind farm owners in this paper a new method for minimization of imbalance costs is developed stochastic programming is used to generate optimal wind power production bids for a short term power market a wind power forecast error is represented as a stochastic process the imbalance costs resulting from this strategy are then compared to the case when wind power production bids on a short term power market are based directly on a wind speed forecast

partner selection and venturing success the case of joint ventures with firms in the people s republic of china it has been hypothesized in the international joint venture ijv literature that partner selection affects interpartner fit which in turn influences a synergistic effect on ijv performance this study investigates the relationship between ijv success and the strategic and organizational traits of local partners we address this issue in the context of an emerging economy p r china newly emerging economies have in recent years become major hosts of direct investment by multinational corporations mncs because these rapidly expanding economies characterized by an exploding demand previously stifled by ideologically based government intervention provide tremendous opportunities which mncs can preempt mncs in such economies however face the challenges of structural reform weak market structure poorly specified property rights and institutional uncertainty right local partners can help mncs boost market expansion obtain insightful information mitigate operational risks and provide country specific knowledge the analysis of the data obtained from china suggests that both strategic and organizational traits of local partners are significantly associated with some individual dimensions of ijv performance among strategic traits absorptive capacity product relatedness and market power are favorable to ijvs market and financial outcomes market power and experience significantly reduce ijvs operational uncertainties of organizational traits international experience and organizational collaboration are important for ijvs not only profitability and stability but also local market expansion and export growth organizational form and size influence ijvs local market performance the findings provided by this study can help mncs determine what criteria they should use in opting for local partners and what criteria are vital to their goal accomplishment those investors seeking local market expansion should select those local partners that have rich market experience superior market position high absorptive capacity and related product diversification with the ijvs those seeking profitability and stability should select local firms that have superior international experience longer organizational collaboration and greater market power while mncs should use appropriate strategic and organizational criteria to select local partners the host government or local firms can try to make these traits available to attract more stable and profitable foreign direct investment

the eclectic paradigm of international production a restatement and some possible extensions this article reviews some of the criticisms directed towards the eclectic paradigm of international production over the past decade and restates its main tenets the second part of the article considers a number of possible extensions of the paradigm and concludes by asserting that it remains a robust general framework for explaining and analysing not only the economic rationale of economic production but many organisational and impact issues in relation to mne activity as well

efficiency of nonpoint source pollution instruments an experimental study in nonpoint source pollution problems the regulator does not observe each polluter s individual emission which prevents him from using the conventional policy instruments therefore new instruments have been designed to regulate this type of pollution in an experiment we compare the efficiency of some of these instruments an input based tax an ambient tax subsidy an ambient tax and a group fine we assume that polluters themselves are affected by environmental damages a control session without any regulation is also carried out in order to study the status quo situation our experimental data show that the input tax and the ambient tax are very efficient and reliable and the group fine is fairly efficient and reliable these instruments improve social welfare with respect to the status quo on the contrary the ambient tax subsidy decreases social welfare with respect to the status quo and its effect is very unreliable

voluntary environmental agreements good or bad news for environmental protection abstract there has been growing interest in the use of voluntary agreements vas as an environmental policy tool this article uses a simple model to determine whether vas are likely to lead to efficient environmental protection we consider cases where polluters are induced to participate either by a background threat of mandatory controls the stick approach or by cost sharing subsidies the carrot approach the results suggest that the overall impact on environmental quality could be positive or negative depending on a number of factors including the allocation of bargaining power the magnitude of the background threat and the social cost of funds

capabilities as a mediator linking resources and the international performance of entrepreneurial firms in an emerging economy this study investigates an under researched topic the relationships between capabilities resources and international performance among entrepreneurial firms in an emerging economy we combine the resource based view of the firm and the capability building perspective of rent creation to shed light on the crucial role of firm specific capabilities that transform key resources into performance outcomes employing a large sample of chinese entrepreneurial firms our investigation demonstrates that while the resources of institutional capital and managerial ties are important in the internationalization effort their effects on international performance are channeled through each firm s adaptive capability this adaptive capability is the firm s ability to coordinate recombine and allocate resources to meet the different requirements of foreign markets specifically our research is able to demonstrate support for the mediating role of capabilities in the relationship between resources and international performance the implications of these findings for theoretical development and future research are discussed

a test for parameter homogeneity in co2panel ekc estimations this paper casts doubt on empirical results based on panel estimations of an inverted u relationship between per capita gdp and pollution using a new dataset for oecd countries on carbon dioxide emissions for the period 1960 1997 we find that the crucial assumption of homogeneity across countries is problematic decisively rejected are model specifications that feature even weaker homogeneity assumptions than are commonly used furthermore our results challenge the existence of an overall environmental kuznets curve for carbon dioxide emissions

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

contextualising organisational learning lyles and salk in the context of their research hungary has been the focus of lyles and salk 1996 because their research interest organisational learning was of particular concern in joint ventures in that country at that time this allowed them to investigate in greater depth what drives knowledge acquisition and how it influences the performance of joint ventures this commentary reviews the contribution by lyles and salk as reflected in the subsequent literature the setting of the study in hungary 1993 raises the challenging question of how this particular context may have influenced the research outcomes i argue that the national context of radical environmental change and the organisational context of joint ventures incorporating privatised state firms crucially influence processes of organisational learning the importance of context suggests modifying future research agendas in international business and in organisational learning in particular i thus suggest that future research should incorporate context more explicitly to establish boundary conditions for theory and to develop managerially relevant insights

epa s voluntary 33 50 program impact on toxic releases and economic performance of firms abstract this paper examines the motivations for participation in the voluntary 33 50 program and the program s impact on the toxic releases and economic performance of firms in the u s chemical industry it demonstrates that the benefits due to public recognition and the potentially avoided costs of liabilities and compliance under mandatory environmental regulations provide strong incentives for participation after controlling for sample selection bias and the impact of other firm specific characteristics this paper shows that program participation led to a statistically significant decline in toxic releases over the period 1991 93 the program also had a statistically significant negative impact on the current return on investment of firms but its impact on the expected long run profitability of firms was positive and statistically significant

trading wind generation from short term probabilistic forecasts of wind power due to the fluctuating nature of the wind resource a wind power producer participating in a liberalized electricity market is subject to penalties related to regulation costs accurate forecasts of wind generation are therefore paramount for reducing such penalties and thus maximizing revenue despite the fact that increasing accuracy in spot forecasts may reduce penalties this paper shows that if such forecasts are accompanied with information on their uncertainty i e in the form of predictive distributions then this can be the basis for defining advanced strategies for market participation such strategies permit to further increase revenues and thus enhance competitiveness of wind generation compared to other forms of dispatchable generation this paper formulates a general methodology for deriving optimal bidding strategies based on probabilistic forecasts of wind generation as well as on modeling of the sensitivity a wind power producer may have to regulation costs the benefits resulting from the application of these strategies are clearly demonstrated on the test case of the participation of a multi mw wind farm in the dutch electricity market over a year

the performance of cross border units in china a test of natural selection strategic choice and contingency theories this study tests the explanatory power of three theoretical frameworks for the performance of cross border affiliates by examining the experience of 615 hong kong firms managing operations in mainland china the frameworks tested are the natural selection approach focused on the influence of the environment the strategic choice approach focused on managerial action and the contingency approach which emphasises the fit between environmental contingencies and internal organisation the results show that natural selection and strategic choice have a role to play even when controlling for each other they also support a simple approach to contingency but not a more complex version involving interactions although the business and institutional environments do have a significant influence on the performance of cross border affiliates in a transition economy performance can be improved through strategic managerial action in particular leveraging local resources by developing trust between parent and affiliate and maintaining close control and integration with the parent are associated with enhanced performance

dynamic pricing design for demand response integration in power distribution networks this paper presents optimal pricing design for demand response dr integration in the distribution network in particular we study the energy scheduling problem for a load serving entity lse that serves two types of loads namely inflexible and flexible loads inflexible loads are charged under a regular pricing tariff while flexible loads enjoy a dynamic pricing tariff that ensures cost saving for them moreover flexible loads are assumed to be aggregated by several dr aggregators the interaction between the lse and its customers is formulated as a bilevel optimization problem where the lse is the leader and dr aggregators are the followers the optimal solution of this problem corresponds to the optimal pricing tariff for flexible loads the key advantage of the proposed model is that it can be readily implemented thanks to its compatibility with existing pricing structures in the retail market extensive numerical results show that the proposed approach provides a win win solution for both the lse and its customers

the experience factor in foreign market entry behavior of service firms the paper examines the effect of international experience on service firms selection of foreign markets and entry modes the investigation utilizes survey date from 151 united states based service firms results on market selection suggest that as their experience increases and becomes geographically more diversified service firms tend to choose markets that are culturally less similar to their home country on entry mode choice the paper departs from traditional linear conceptualizations and hypothesizes a u shaped relationship between experience and propensity for integrated entry modes results generally support the hypothesis the paper explains these findings and describes how service firms resemble and differ from manufacturing firms in their foreign market entry behavior

organizational learning and diversification employing concepts of lateral and longitudinal learning we examined the dissolution of 462 expansions of dutch firms both acquisitions and new ventures we interpreted the endurance of an expansi

timing of investment and international expansion performance in china this study examines the multivariate and univariate performance effects of timing of fdi in an emerging economy at the business unit level a longitudinal analysis of industry wide firm specific data on fdi timing and foreign venture performance in china reveals that timing has a significant influence on overall as well as on individual aspects of venture performance it is observed that early entrants outperform late movers in terms of local market expansion and asset turnover whereas late movers are superior to early entrants with regard to risk reduction and accounting return during the initial period of international expansion factor analysis confirms that the importance of timing in affecting fdi decisions is as significant as that of internalization ownership or location factors

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

a damage based tax mechanism for regulation of non point emissions in a recent paper segerson 1988 proposed a novel incentive mechanism for stochastic non point emissions based on ambient pollution concentrations in nature for specification of the mechanism when the damage function is nonlinear the regulator must know polluters cost and emission functions the mechanism also gives incentives to form coalitions among polluters which if they are formed render the mechanism inefficient in this paper we propose a revised mechanism which eliminates the need for knowledge of polluters cost and emission functions and reduces the probability of coalition forming a standards and pricing version of the revised mechanism with both properties mentioned is also developed

the regulation of non point source pollution under imperfect and asymmetric information abstract this paper develops a bayesian framework for discussing the role of information in the design of non point source pollution control mechanisms an ambient concentration tax is examined allowing for spatial transport among multiple zones imposition of the tax requires costly measurement of concentrations in selected zones and the selection of zones for measurement must be undertaken without perfect information regarding several parameters of the problem potentially crucial information issues discussed include a the impact of asymmetric priors regarding fate and transport b the cost of measuring ambient concentration and c the optimal acquisition of information regarding fate and transport

nonpoint source pollution taxes and excessive tax burden if a regulator is unable to measure firms individual emissions an ambient tax can be used to achieve the socially desired level of pollution with this tax each firm pays a unit tax on aggregate emissions in order for the tax to be effective firms must recognize that their decisions affect aggregate emissions when firms behave strategically with respect to the tax setting regulator under plausible circumstances their tax burden is lower under an ambient tax relative to the tax which charges firms on the basis of individual emissions firms may prefer the case where the regulator is unable to observe individual firm emissions even if this asymmetric information causes the regulator to tax each firm on the basis of aggregate emissions

environmental policy under imperfect information incentives and moral hazard abstract when net emissions of individual polluters cannot be efficiently monitored then emissions charges controls on emissions levels or subsidies for emissions reduction are not effective as environmental policy instruments this paper proposes instruments that can be applied in such limited information situations these instruments take the form of contracts between a pollution control agency and individual polluters the contracts include a combination of fines and subsidies that induces dischargers to follow optimal environmental policies in the absence of individual monitoring

collusion as public monitoring becomes noisy experimental evidence this paper uses laboratory experiments to test the implications of the theory of repeated games on equilibrium payoffs and estimate strategies in an infinitely repeated prisoners dilemma game with imperfect public monitoring we find that subjects payoffs i decrease as noise increases and ii are lower than the theoretical maximum for low noise but exceed it for high noise under the assumption that the subjects strategy uses thresholds on the public signal for transition between cooperation and punishment states we find that the best fitting strategy simply compares the most recent public signal against a single threshold

a resource based theory of the firm knowledge versus opportunism this paper develops a resource based knowledge based theory of the firm its thesis is that the organizational mode through which individuals cooperate affects the knowledge they apply to business activity we focus on the polar cases of organization within a firm as compared to market contracting there will be a difference in the knowledge that is brought to bear and hence in joint productivity under the two options thus as compared to opportunism based transaction cost theory we advance a separate yet complementary answer to the question why do firms exist our aim is to develop an empirically relevant and complementary theory of why firms are formed a theory based on irreducible knowledge differences between individuals rather than the threat of purposeful cheating or withholding of information we assume limited cognitive abilities on the part of individuals bounded rationality and assume that opportunistic behavior will not occur the latter allows us to determine whether resource based

ambient based pollution mechanisms a comparison of homogeneous and heterogeneous groups of emitters abstract over the last two decades ambient based tax mechanisms have been offered as a potential solution to the problem of nonpoint source water pollution previous theoretical analyses suggest that the performance of ambient based tax mechanisms does not depend on firm characteristics such as size whilst policy discussions advocate that such mechanisms are best suited for regulating relatively homogeneous firms using controlled laboratory experiments we provide empirical evidence that the distribution of firm sizes does have a significant impact on observed group decision making and further that heterogeneity has the potential to generate both some relatively desirable outcomes as well as some outcomes that are not attractive these results suggest that richer theoretical models that capture important strategic interactions and social preferences are needed to better describe laboratory behavior and by extension behavior in potential policy settings

regulation of non point emissions a variance based mechanism non point emission problems such as pesticide nitrate and phosphorus pollution of lakes and ground water are often characterised by a small number of polluters convex damage functions and stochastic emissions some regulatory mechanisms proposed in the literature for stochastic non point emissions implement the optimal abatement vector in dominant strategies ensuring that non nash conjectures cannot be rationalized however specification of these mechanisms requires firm level information and differentiated rates when the damage function is convex other mechanisms eliminate the need for firm level information and rate differentiation but only implement optimum in nash strategies where non nash conjectures that cause equilibrium to stray from optimum can be rationalized in this paper we propose a mechanism which eliminates the need for firm level information and rate differentiation while retaining implementation in dominant strategies

impact of historical conflict on fdi location and performance japanese investment in china historical relations between countries bring important explanatory power for foreign direct investment fdi decisions yet little is known on whether a home host country relation exhibits heterogeneous effects on fdi across the country s subnational regions in this study we examine the long term impact of historical conflict on fdi location choices and performance using a sample of 8 646 japanese fdi in china we show that civilian casualties in different provinces of china during the second sino japanese war exert deterring effects on japanese fdi location choices furthermore we demonstrate that civilian casualties negatively affect japanese fdi performance and political capital accumulation strategies in the forms of excessive tax payment and local employment can reduce this negative effect this study contributes to the discussion on how within country differences of historical factors affect fdi location decisions and performance the findings on firms political capital accumulation strategies also provide important implications for fdi operation in an environment characterized by historical animosity

self regulation taxation and public voluntary environmental agreements an increasingly popular instrument for solving environmental problems is the public voluntary agreement va in which government offers technical assistance and positive publicity to firms that reach certain environmental goals prior papers treat such agreements as a superior low cost instrument that can be used to preempt a threat of traditional inefficient regulation we present a more general model in which public vas may instead be weak tools used when political opposition makes environmental taxes infeasible we explore the conditions under which taxes public vas and unilateral industry actions are to be expected and the welfare implications of the various instruments notably we also show that welfare may be reduced by the introduction of public vas 2002 elsevier b v all rights reserved

capital structure in transition the transformation of financial strategies in china s emerging economy during economic transition firms must dramatically reduce their financial dependence on the state and begin to borrow from nonstate capital sources this paper draws on institutional and resource dependence theories to examine this fundamental transformation of firm capital structure during china s transition i propose that managers borrowed from external sources even when internal funds were available because retained earnings were considered state assets firms used retained earnings to signal financial health but borrowed externally to reduce dependence on the state uncertainty during transformation produced interfirm imitation of borrowing strategies particularly imitation of local and high status others i argue that the dynamics of market development shaped firm borrowing strategies and that these strategies are best viewed as trajectories over time analysis of survey data on the 1980 1989 capital structure of formerly state owned firms provides support for these arguments and highlights the importance of institutional context in understanding corporate borrowing and strategic decision making

ambient taxes when polluters have multiple choices economic research on environmental policy design has largely been concerned with the merits of emissions based economic incentives e g emissions charges emissions reduction subsidies transferable discharge permits ambient based tax subsidy schemes have drawn considerable interest in nonpoint pollution literature as alternatives to emissions based instruments expanding especially on segerson s seminal article this article examines the optimal design and budget balancing properties of ambient tax subsidy schemes under more realistic assumptions about the dimensions of firms choice sets than prior research

pool strategy of a price maker wind power producer we consider the problem of a wind power producer trading energy in short term electricity markets the producer is a price taker in the day ahead market but a price maker in the balancing market and aims at optimizing its expected revenues from these market floors the problem is formulated as a mathematical program with equilibrium constraints mpec and cast as a mixed integer linear program milp which can be solved employing off the shelf optimization software the optimal bid is shown to deliver significantly improved performance compared to traditional bids such as the conditional mean or median forecast of wind power distribution finally sensitivity analyses are carried out to assess the impact on the offering strategy of the producer s penetration in the market of the correlation between wind power production and residual system deviation and of the shape of the forecast distribution of wind power production

what differences in the cultural backgrounds of partners are detrimental for international joint ventures an international joint venture implies that a firm has to cooperate with a partner with a different cultural background in this study hypotheses about which differences in national culture are most disruptive for international joint ventures were developed and tested using hofstede s five dimensions the study focused on how these dimensions affect the survival of international joint ventures as well as their incidence relative to wholly owned subsidiaries the hypotheses were tested on longitudinal data about 828 foreign entries of twenty five dutch multinational in seventy two countries between 1966 and 1994 the database which spans almost three decades was also used to provide new evidence on a key assumption of hofstede s work that cultural values are stable over time

on the internationalization process of firms a critical analysis even though international marketing has been challenged because of theoretical and methodological shortcomings very few researchers have actually attempted to analyze the weaknesses based on principles of theory evaluation in this article the author examines two types of models addressing the individual firm s internationalization process a theory evaluation is performed based on the explanation and the falsification criteria in order to improve the internationalization models some measures are proposed

a microfoundations approach to transnational capabilities the role of knowledge search in an ever changing world scholars seeking to understand the origin of dynamic capabilities have struggled to articulate specific capabilities and locate their source of variation within the firm we propose that the transnational imperative and a microfoundations approach to knowledge search can help to develop this topic adopting an engaged scholarship approach hypotheses are tested in a global consulting company counter to traditional capabilities arguments we find that drawing from globally dispersed colleagues will more strongly impact local responsiveness than drawing from locals outside the company though both may still be needed efficiency increases when teams draw upon codified knowledge but decreases when they draw upon embedded tacit knowledge finally through continual learning teams can change and re direct the composition of their responsiveness and efficiency activities in ways sensitive to an ever changing world

knowledge acquisition from foreign parents in international joint ventures an empirical examination in the hungarian context in this paper we examine organizational characteristics structural mechanisms and contextual factors that influence knowledge acquisition from the foreign parent in international joint ventures ijvs we in turn relate assessments of knowledge acquisition to ijv performance the data come from a survey of ijvs in the hungarian context where learning and knowledge acquisition from the foreign parent is thought to be particularly critical adaptation mechanisms such as capacity to learn articulated goals and structural mechanisms such as the provision of training technology and managerial assistance by foreign parents all were positively associated with the degree to which ijvs reported acquiring knowledge from their foreign parents we also found limited support for the belief that cultural conflicts can impede knowledge acquisition but only for two party joint ventures with 50 50 equity arrangements we also looked at the relationship between knowledge acquisition and different dimensions for evaluating ijv performance the relationship between knowledge acquisition and performance was significant for all indicators of performance through knowledge acquisition from the foreign parent and the organizational characteristics hypothesized to enhance ijv knowledge acquisition affected assessments of some dimensions of performance more than others our findings contribute to advancing knowledge about the relationship between organizational characteristics and organizational knowledge acquisition in ijvs as well as the relationships between knowledge acquisition and different dimensions of ijv performance

wind power bidding strategy in the short term electricity market abstract this paper presents an analytical trading electricity model for wind power producers wpps in the short term electricity market in the u s this model addresses four specific uncertainties real time rt wind power generation day ahead da locational marginal prices lmps rt lmps and deviation penalty rates the model is designed to find the optimal bidding strategy to maximize the expected revenue under these uncertainties in addition this paper shows that advanced forecasting techniques could be used with the proposed bidding strategy to help wpps trade energy in short term markets a case study is presented to illustrate the effectiveness of this proposed bidding strategy and advanced forecasting techniques using a set of real data taken from a wind farm in the pjm electricity market

environmental risks and joint venture sharing arrangements multinational enterprises mnes have responded to the open door policies of socialist countries in recent years by investing in their economies through joint ventures mnes must formulate their investment strategies to control and manage the environmental risks peculiar to a traditional centrally planned economy cpe in which contextual and transactional environments are blurred joint venture sharing arrangements may be structured to control exposures to uncertainties and to align the interests of transactional parties mostly state owned enterprises to those of the venture this study tests the hypothesis that a foreign investor s share in a joint venture in a cpe is inversely correlated with 1 the amount of uncertainties and risks and 2 the external dependency of the venture on the contextual and transactional relationships of the host country the hypothesis is supported by empirical evidence from data on american joint ventures in china

the effect of own firm and other firm experience on foreign direct investment survival in the united states 1987 92 we argue that foreign firms operating in a host country generate information spillovers that have potential value for later foreign direct investment we test two predictions first we expect foreign direct investments by firms with experience in a host country to be more likely to survive than investments made by first time entrants second foreign direct investments will be more likely to survive the greater the foreign presence in the target industry at the time of investment subject to two contingencies the first contingency is that the relationship will be weak or nonexistent among firms with no experience in the host country because these firms have difficulty evaluating and taking advantage of the information spillovers the second contingency is that the presence of other foreign firms will not affect investment survival among firms that already have a presence in the target industry and undertake expansion these firms already possess general information about the target industries and are unlikely to gain additional benefit from information spillovers we find supportive evidence based on the survival to 1992 among 354 u s investments undertaken by foreign firms in manufacturing industries during 1987 1997 by john wiley sons ltd strat management j vol 18 811 824 1997 no of figures 1 no of tables 3 no of references 35

developed country mnes investing in developing economies progress and prospect this study reviews research from 1970 through 2016 on developed country multinational enterprises dmnes entering and competing in developing economies to identify the current state of knowledge of this research and push it further we review the literature using bibliometric and qualitative content analyses covering leading journals and books we articulate frontier issues that are understudied yet critical to both theorization and practice of dmnes in developing economies we discuss the findings and conclusions from prior research along five key areas 1 entering developing economies 2 organizing local activities 3 managing alliances and joint ventures 4 competing in dynamic environments and 5 dealing with institutions governments and society we offer prospective insights into future agenda that have important implications for mne strategies and decisions and propose frontier directions that encompass strategic localization reverse transfer and adaptation co evolution with local business ecosystems reorganizing and restructuring and strategic responses to institutional and market complexity

collective versus random fining an experimental study on controlling ambient pollution this paper presents an experimental study oftwo different pollution compliance games collective vis a vis random fining as ameans to regulate non pointpollution using samples from both costa ricancoffee mill managers and costa rican students we find that the two games perform equivalentlybut although they lead to efficient outcomesthrough nash play in the majority of cases theobserved frequency of nash play is lower thantheoretically predicted moreover we rejectthe hypothesis that managers and studentsbehave equally off the equilibrium managerstend to over abate whereas students tend tounder abate this result suggests theimportance of considering subject pooldifferences in the evaluation of environmentalpolicies by means of experiments particularlyif those policies involve certain forms ofmanagement decisions

non point source regulation a self reporting mechanism abstract information feasible regulatory mechanisms that do not require the regulator to acquire firm level information have been proposed long ago for stochastic non point emission problems these mechanisms do not take polluter cooperation and firm entry exit incentives simultaneously into account nor are these issues addressed in an informationally efficient way in this paper we propose an informationally feasible self reporting mechanism that is robust to cooperation among polluters while giving participating firms correct abatement incentives as well as giving entry exit incentives that are correct to a first order approximation

the effects of information voids on capital flows in emerging markets information voids reflect a lack of publicly available information about a country s investment climate and represent the information problems associated with institutional voids we argue that foreign investors differ in their sensitivity to information voids based on their own private information and their flexibility in responding rapidly to change we predict that foreign banks will be least hampered by information voids due to their privileged access to private information about local conditions and ability to adapt quickly to new information portfolio investors while impeded by information voids due to their severely limited access to local private information are able to quickly respond to new information foreign direct investors have moderate access to local private information yet their inability to adapt quickly creates problems dealing with information voids using time series cross sectional data on local public information and capital flows to the thirty largest emerging markets from 1994 to 2012 we find preliminary support for our hypotheses regarding the sensitivity of different investors to information voids we find that direct investors are most sensitive to information voids and banks are least sensitive while portfolio investors are moderately sensitive

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

what factors cause foreign banks to stay in london the banking literature focuses extensively on the phenomenon of bank entry and pays less attention to the factors driving the continuation of banking activities in foreign markets in this paper we analyze this important but overlooked issue by constructing a unique database of foreign banks that continue operating and those that have withdrawn from arguably the world s most international banking center london this new data set comprises information on 408 offices from 77 countries spanning the period from 1945 to 1999 giving us 4643 observations of which 2795 represent offices that continue operating and 1848 that withdrew from london during this period our empirical work shows that the continuation of international banking activity in london is positively related to the setup of locally integrated organizational forms at entry the experience in the local market and the size of local operations continuation of banking activities is however negatively related to the setup of organizational forms integrated into the parent bank at entry and to the geographic distance of the home country to london we also find that higher global economic activity increases the likelihood of international banking operations continuing in london however the more volatile the global economic environment the greater the prospect of a cessation of this activity