AIB 2012 Conference Proceedings - Academy of International ...

TUESDAY
Business under Adverse Home and International Institutions: The Case of International Sanctions against
Myanmar
Klaus Meyer, China Europe International Business School
Htwe Htwe Thein, Curtin University of Technology
We expand the institutional perspective of international business by exploring the range of institutions outside
the host country that influence international business. We use an extreme case, Myanmar, as case study to
explore the dynamics of institutional constraints and the reaction of business to such constraints. Crucially, this
includes adverse formal and informal institutions, namely economic sanctions, created in the home countries
and on the international stage by a variety of institutional actors. The impact of institutional pressures varies
with the characteristics of business activities undertaken in the sanctions country, in particular the market
orientation and the capital intensity. We provide an in-depth analysis of four industries varying by these criteria
between 1996/97, the height of the sanctions, and the late phase when access was eased in 2010/11. On the
basis of our case analysis, we propose a conceptual framework of institutional pressures influencing
multinational enterprises on the international stage, and how the impact of such pressures varies across
industries and firms. (For more information, please contact: Klaus Meyer, China Europe International Business
School, China: kmeyer@ceibs.edu)
Session: 3.3.8 - Competitive
Track: 9 - Cross-cultural Management and HRM
New Perspectives on Expatriate Staffing
Presented On: July 3, 2012 - 13:00-14:15
Chair: Hein Bogaard, George Washington University
Host Country Relative Development Level and Expatriate Staffing: The Case of Korean Multinationals' Overseas
Subsidiaries
Khan-Pyo Lee, Sogang University
Jong-Hun Park, Sogang University
Myung Suk Kim, Sogang University
This study examines how the development level of the host country relative to the home country affects the
extent to which MNEs staff their overseas subsidiaries with home country expatriates. Building on the research
on intergroup relations from social psychology, we hypothesize that the extent of expatriate staffing in a
subsidiary is positively related to the host country's relative level of development. We further predict that host
country relative development level also positively moderates the negative associations between the length of
subsidiary operation and subsidiary performance on the one hand, and the extent of expatriate staffing on the
other. The findings from the analysis of expatriate staffing in 1,294 overseas subsidiaries of 727 Korean firms
operating in 47 host countries provide support for the hypotheses. (For more information, please contact: Khan-
Pyo Lee, Sogang University, Korea, South: khanplee@sogang.ac.kr)
A Multilevel Framework of Expatriate Adjustment and Knowledge Stock on MNE Subsidiary Performance
Subhajit Chakraborty, University of Texas-Pan American
Jorge Gonzalez, University of Texas - Pan American
Multinational enterprises (MNEs) often assign expatriate senior executives to manage their newly formed
subsidiaries, especially those in emerging economies. A multilevel moderated mediation model is proposed
wherein individual level expatriate senior executives' ability to adjust to a variety of foreign conditions moderate
the relationship between organization level expatriate executives' utilization and subsidiary knowledge stock. It
AIB 2012 Conference Proceedings
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