AIB 2012 Conference Proceedings - Academy of International ...

TUESDAY
support the argument that FDI reinforces competition. In this paper we analyze the impact of FDI on market
concentration considering the Portuguese manufacturing industries in the period 2006-2009. Using panel data
estimation we found a significant negative impact of FDI on industry concentration, which is in line with the
results of other studies for developed countries, and gives support to arguments that FDI has positive effects on
domestic firms, eventually through positive externalities. (For more information, please contact: Rosa Portela
Forte, University of Porto, Portugal: rforte@fep.up.pt)
The Effects of Institutional Actors on Investments in International Business Relationships
Sara Jonsson, Royal Institute of Technology
Kent Eriksson, Royal Institute of Technology
Oystein Fjeldstad, Norwegian Business School
This paper contributes to global strategy research by connecting institutional theory with relationship level
international business research in the internationalization process of firms. The paper provides empirical
evidence that one kind of institutional actor assumes different functions depending on whether it operates in
host or home country and can have different effects on investments in international business relationships.
These effects occur because different institutional actors contribute differently to the knowledge development in
the internationalization process of firms. The findings suggest that management of institutional actors is a key
strategic issue that should be included in the business plans of global firms. (For more information, please
contact: Sara Jonsson, Royal Institute of Technology, Sweden: sara.jonsson@abe.kth.se)
Confidence in Learning from Salient Failures: Why (not) Un-adopt the Failed Strategy in Other firms
Jing Yu Yang, University of Sydney
Jiatao Li, Hong Kong University of Science and Technology
Andrew Delios, National University of Singapore
We examine how other firms' failures of a strategy affect a focal firm's adoption of the strategy. Drawing on the
outcome-based learning perspective, a firm generally responds to others' failures in a strategy by un-adopting
the strategy. We argue the intensity of such response is affected by the salience of each failure and the
observers' confidence in learning from the overall failures. Our analysis of 925 Japanese firms' entries into China
from 1979 to 2000 largely supports the argument. We find that (1) a firm is in general less likely to launch new
entries when observing more salient failure experiences of early entrants in the host market, reflected in the
failures' timing, duration, and also their investors' status; whilst (2) such effects become weaker when the
causes to the failures are perceived diverse or transient, making the firm less confident in learning from the
failures. This study highlights important conditions why not firms always avoid adopting the failed strategy in
other firms. (For more information, please contact: Jing Yu Yang, University of Sydney, Australia:
gracy.yang@sydney.edu.au)
The Decision of Entry Mode in International Cooperation Strategies: Cultural Distance or Relative Size of the
Host Country
Francisco Figueira de Lemos, Uppsala University
Miguel Matos Torres, University of Aveiro
This paper proposes a decision model wherein International Joint Ventures and International Alliances play as
two possible entry strategies. The conceptual model, based on the risk management conceptualization of
Figueira de Lemos, Johanson and Vahlne (2011), was tested on a probabilistic model with a dataset of 9263
alliances and joint ventures established in 65 different countries, being at least one partner from the United
States. Having cultural distance and country economy size as dependent variables, the model's results show
that US firms prefer to engage in alliances to enter more culturally distant countries, whereas the use of joint
ventures more probable as larger the host country's economy. Important to notice at theoretical level is this
AIB 2012 Conference Proceedings
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