AIB 2012 Conference Proceedings - Academy of International ...

TUESDAY
study's pioneer explanation of International Cooperation Strategies within the Uppsala Model's assumptions.
(For more information, please contact: Francisco Figueira de Lemos, Uppsala University, Sweden:
francisco.lemos@fek.uu.se)
Session: 3.1.15 - Interactive
Track: 1 - Institutions, Governance, and CSR
Corporate Strategy and Structure in International Business
Presented On: July 3, 2012 - 09:00-10:15
Chair: Chang Hoon Oh, Simon Fraser University
The Influence of Home Country Institutions on the Effectiveness of Firms' Geographic Diversification Strategies
Brian R. Tan, Nanyang Technological University
Asda Chintakananda, Nanyang Technological University
This paper develops an institutional framework to explain and test how various institutional factors influence the
effectiveness of a firm's geographic diversification strategy. The results indicate that while firms operating from
countries with politically stable environments have more effective geographic diversification strategies, an
increase in regulatory effectiveness actually reduces the effectiveness. From a social institutional perspective,
the level of in-group collectivism positively influences the effectiveness of a firm's geographic diversification
strategy, while the level of uncertainty avoidance reduces the effectiveness. These findings highlight the
importance for researchers to develop specific theoretical grounding as to how different institutional constructs
influence the effectiveness of firm strategy. (For more information, please contact: Asda Chintakananda,
Nanyang Technological University, Singapore: asda@ntu.edu.sg)
Japan's Orientation towards Foreign Investments: Inertia Effects and Driving Force of Institutional Changes
Nir Kshetri, University of North Carolina
Ralf Bebenroth, Kobe University
We use an institutional perspective to develop a framework for understanding the contexts, mechanisms and
processes associated with institutions and institutional changes related to foreign investment in Japan. We
examine power dynamics and relational boundaries between diverse actors and analyze why and how some
components of institutions have changed and others have not. Also explored in this paper are the conflicting
discourses that have been raised in regards to the participation of foreign investors. We also examine purposive
efforts of various institutional entrepreneurs to change prevailing institutions in Japan. We assess structural
factors working as sources of inertia in Japan's openness to FDI including the nature of capitalism, power of
bureaucracy and culture and analyze various internal and external sources associated with exogenous shocks
and gradual changes in institutions. (For more information, please contact: Nir Kshetri, University of North
Carolina, USA: nir.kshetri@gmail.com)
National Culture and Takeover Activity
Astrid Juliane Salzmann, RWTH Aachen University
Wolfgang Breuer, RWTH Aachen University
We investigate the influence of national culture on takeover activity in a cross-disciplinary study across nations.
Cultural differences are measured with the individualism index developed by Hofstede (2001), which is related
to overconfidence. Overconfident managers overestimate their ability to create value through mergers and
acquisitions. We argue that higher individualism induces more takeover activity as managers exhibit more
AIB 2012 Conference Proceedings
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