AIB 2012 Conference Proceedings - Academy of International ...

MONDAY
Both social movements and national political institutional structures have been shown to influence or facilitate
the emergence of new organizational forms. But, little research has examined the interactive role that civil
society, the state, and incumbent industries play in the emergence of new markets. Building on institutional
theory, this study builds a theoretical framework for categorizing the actions and reactions of social movements
and incumbent industries as they interact with the institutional arrangements particular to each nation.
Developing a 2x2 of state strength and the disruption to entrenched institutions, the framework depicts the
typical path taken by social movements and incumbent firms in engaging the public and government in
discourse on socially relevant issues. The varying paths to the successful emergence of new organizational
forms through the iterative interactions of private, public, and civil actors are explored. (For more information,
please contact: Jocelyn M. Leitzinger, University of Wisconsin-Madison, USA: jleitzinger@wisc.edu)
Government-Business Relations and Financial Crises
Robert Grosse, George Mason University
Albert Wocke, GIBS University of Pretoria
The global financial crisis of 2008-9 affected government-international business relations importantly, leading to
adjustments of both government policies and company strategies. The crisis disrupted this relationship,
affecting the relative resources of governments and companies, as well as what each had at stake in their
relationships, and also the similarity of their interests during the difficult macroeconomic and financial times.
This paper presents a dynamic conceptual framework for viewing the government-international business
relationship, and uses four empirical bargaining contexts to demonstrate the usefulness of the model. In
addition, evidence on government policy and financial crises is presented to show how in times of crisis the
government side of the bargaining relationship has shifted. (For more information, please contact: Robert
Grosse, George Mason University, USA: rgrosse@gmu.edu)
Informal Institutions and Limits to International Convergence in Corporate Governance: The Reaction to Hedge
Fund Activism in Japan
John Buchanan, University of Cambridge
Dominic Chai, Seoul National University
Simon Deakin, University of Cambridge
Using the example of the reaction to recent hedge fund activism in Japan, we observe how informal institutions,
namely norms and conventions shaping the behaviour of managers and investors, mediate the effect of more
formal ones based on laws and regulations. In our Japanese study, informal norms expressing the logic of the
"community firm" are seen to subvert the impact of formal institutions potentially supportive of the principle of
"shareholder primacy". The effect we identify helps to explain why global convergence of corporate governance
practices, despite growing similarity of formal laws and regulations, has yet to take place. (For more
information, please contact: Dominic Chai, Seoul National University, Korea, South: dchai@snu.ac.kr)
Culture and Corruption: A Concurrent Application of Hofstede's, Schwartz's and Inglehart's Frameworks
Hamid Yeganeh, Winona State University
This study aims at investigating the effects of cultural values on corruption by integrating Hofstede's,
Schwartz's, and Inglehart's frameworks. The empirical analysis confirms that after controlling for the effects of
socio-economic development, cultural values have considerable influence on the level of perceived corruption.
More specifically, it is found that Hofstede's High Power Distance, High Uncertainty Avoidance, Masculinity and
Collectivism, Schwartz's Conservatism and Harmony, and Inglehart's Survival and Traditional-religious
dimensions are associated with the corrupt behavior. By contrast, the opposite values namely Hofstede's Low
Power Distance, Low Uncertainty Avoidance, Femininity, and Individualism, Schwartz's Autonomy and Mastery,
and Inglehart's Self-Expression and Rational-secular dimensions tend to impede corruption. Building on a
principal-agent perspective, the theoretical and practical implications are discussed and an integrative model is
AIB 2012 Conference Proceedings
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