AIB 2012 Conference Proceedings - Academy of International ...

TUESDAY
We investigate subsidiary innovation of MNEs, which is influenced by both subsidiaries and headquarters.
Through a qualitative study, we analyse tradeoffs in knowledge flows faced by MNEs setting up R&D
subsidiaries in India. Our findings indicate a slow inflow of external, i.e. local knowledge into the subsidiary.
There is also decreasing and later increasing internal, i.e. non-local knowledge flow between headquarters and
subsidiary. A framework of knowledge flows points at tradeoffs between the two. This study contributes by
strengthening linkages between subsidiary evolution and knowledge flows. It has implications for subsidiary
management, in particular those aimed at innovation. (For more information, please contact: Amit Karna, EBS
Business School, Germany: amit.karna@ebs.edu)
The Role of Government-business Interdependence in Firm Growth: A Contingent Perspective
Zheng Yan, National University of Singapore
Prior literature on business-government relations has mainly focused on the dependence of firms on
government for resources. In this study, we advance this literature by investigating the governments'
dependence on business and its effect on firm growth, using China's steel industry as the empirical context.
Considering the divergent interests between governments at different levels, we propose that local governments
depend on firms for tax revenue and foreign investment, while the central government favors firms with higher
state ownership and technological capability. Furthermore, the performance effects of governments'
dependence are moderated by firm size, central government's policies, and the province's significance in the
national economy, leading to different levels of firm growth. Our results supported these propositions. (For
more information, please contact: Zheng Yan, National University of Singapore, Singapore:
zhengyan@nus.edu.sg)
A Contextual Examination of the Strategic Investment Decision Making Process in Singapore
Christine Soh, University of Edinburgh
Chris Carr, University of Edinburgh
Konstantinos Bozos, University of Leeds
In today's internationalisation, the ASEAN countries have merged to develop a global identity for enhanced
trade relations and increased competitiveness. The continuous institutional and governmental encouragement
for more MNEs to enter the local economy of Singapore have contributed to its status as the only developed
economy out of the 6 countries, with the highest GDP. The inputs of strategic investments by companies largely
contribute to the success of the Singaporean economy. It is therefore important to understand the influence of
contextual factors shaping the strategic investment decision making process (SIDMP) in Singapore for further
collaboration globally. We interviewed 18 decision makers from 9 companies using a detailed, semi-structured
questionnaire. The mapping of the 9 companies in a 4-category contextual typology and the GLOBE framework
suggests that Singaporean firms are more financially focused in comparison to their Asian counterparts.
Decision making (DM) speed is higher in unpredictable environments of rapid change. Decision rationality is
found to be independent of organisational type and decision topic. These divergences from the more often
researched Asian examples of China and Japan and convergence to the Anglo-Saxon context give room for
further cross-cultural research. (For more information, please contact: Christine Soh, University of Edinburgh,
United Kingdom: christineclarissesoh@hotmail.com)
Session: 3.1.12 - Interactive
Track: 12 - Value Creation and Work
Sourcing, Outsourcing and Offshoring
Presented On: July 3, 2012 - 09:00-10:15
Chair: Barry Scholnick, University of Alberta
AIB 2012 Conference Proceedings
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