AIB 2012 Conference Proceedings - Academy of International ...

TUESDAY
on exports was shown insignificant unlike of the cases of developed economies. This finding shows the limited
influence of outside directors in managing Korean enterprises. Further business implications are discussed at the
end of the manuscript. (For more information, please contact: Young Soo Yang, Yonsei University, Korea,
South: seoukore@yonsei.ac.kr)
Employment Protection and Delocation with Firm Heterogeneity
Yama Temouri, Aston University
Gerda Dewit, NUI Maynooth
Holger Gorg, Kiel University
This paper examines the determinants of the decision to delocate activities abroad for MNEs that are located in
32 OECD countries. Higher employment protection in the home country discourages firms' delocation activity.
Larger firms or firms with higher labour intensities have, ceteris paribus, higher propensities to delocate. Firm
heterogeneity also plays a role for the link between employment protection and delocation, as suggested by our
theoretical model. Employment protection lowers the propensity to delocate more for firms that are large or
labour intensive. We also find, as expected, an inverted U-shape relationship between delocation and
productivity. Hence, firms with medium levels of productivity are most likely to locate affiliates abroad.
Employment protection, however, also affects those firms most, as the interaction terms of productivity and
employment protection indicate. The results are consistent for firms operating in the manufacturing sector as
well as the services sector. (For more information, please contact: Yama Temouri, Aston University, United
Kingdom: y.temouri1@aston.ac.uk)
Managerial Status and International Diversification
K. Skylar Powell, University of Michigan-Flint
This research looks at the status, or reputation, of a firm's managerial ranks as a factor that may be related to
the propensity towards international geographic diversification in contexts that meet certain boundary
conditions. Using hand-collected longitudinal data in the empirical context of large US corporate law firms,
results suggest that there is an inverted U-shaped relationship, where firms with managers at mid-to-high levels
on the status hierarchy are more likely than firms with managers at the very highest or very lowest status levels
to maintain greater numbers of foreign offices. In addition, this inverted U-shape appears to be further
enhanced when firms are from highly competitive home markets. (For more information, please contact: K.
Skylar Powell, University of Michigan-Flint, USA: kristans@umflint.edu)
Session: 3.3.13 - Interactive
Track: 6 - Innovation and Knowledge Mgmt.
MNE Innovation and Knowledge Diffusion
Presented On: July 3, 2012 - 13:00-14:15
Chair: Ziliang Deng, Renmin University of China
Global Collaboration in MNE Patenting from Emerging Economies: Does it Protect IP
Suma Athreye, Brunel University
Tufool Al-Nuaimi, Imperial College
Phanish Puranam, London Business School
Studies on MNE patenting from emerging economies have noted the larger than average shares of patents from
these economies that feature global collaboration (i.e. where inventors that are resident outside these
AIB 2012 Conference Proceedings
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