AIB 2012 Conference Proceedings - Academy of International ...

TUESDAY
Natural disasters create damage not only to a country's people and infrastructure but also to their firm's assets.
The aftermath of a disaster brings uncertainty and changes to markets near and far the epicenter of the event.
We posit that firms will respond to this uncertainty via expanding their global footprint, in particular sales
abroad. We test our hypothesis using a large sample of almost one hundred thousand firm year observations
and more than two thousand five hundred natural disasters in fifty countries from 1990 – 2004. We find that
disaster damage is positively correlated with foreign sales, furthermore we show that this effect is persistent
over time. Even 3 years after a disaster firms continue to increase their level of foreign sales. More interestingly
we show that this effect is more pronounce for smaller firms and those from poorer countries. (For more
information, please contact: Andres Ramirez, Bryant University, USA: aramirez@bryant.edu)
Model of Corporate Culture, Strategic Change and Corporate Performance: Evidence from the Chinese
Construction Industry
Mingming Liu, Dalian University of Technology
Susan Freeman, University of Adelaide
Md. Wahid Murad, University of Adelaide
The extent to which corporate culture, strategic change and corporate performance influence each other has
not been studied methodically, leaving a critical gap in the international business and strategy literature.
Drawing upon strategy and organizational theories, we build a hypothetical model of corporate culture, strategic
change and corporate performance. We extend current conceptualizations of ‘corporate culture' (team spirit,
science and technological innovation, customer orientation, organizational learning, and social responsibility)
and ‘strategic change' (strategic change speed, magnitude and depth). We surveyed 244 Chinese firms in the
construction sector, using structural equation analysis and reliability test. The path coefficients were measured
and relationships of significance were identified using confirmatory factor analysis, full measurement model
analysis and competitive model analysis. We contribute new understanding, showing that team spirit and social
responsibility have a positive influence, while science and technological innovation and organizational learning
have a negative influence on strategic change speed, magnitude and depth. Customer orientation did not meet
the requirements of factor analysis. Finally, we identify that strategic change has no intervening influence on
the relationship between corporate culture and corporate performance. We conclude by outlining our new
model of strategic change, and include suggestions for future research and managerial implications. (For more
information, please contact: Md. Wahid Murad, University of Adelaide, Australia:
wahid.murad@adelaide.edu.au)
The Effects of Structural Embeddedness on Innovative Capability and Internationalization of Business Group.
Constrain or Opportunity
Ying-Yu (Kerri) Chen, National Taiwan University
Yi-Long Jaw, National Taiwan University
This study successful links the research questions from sociological and economic aspects through investigating
related economic effects under the context of group structural embeddedness. We test the research model by
incorporating both business group and focal firm from different databases, which include 5,227 affiliated firms
in 77 Taiwanese business groups and 77 corresponding focal firms, representing 16 industries in Taiwan. Using
lagged cross-sectional regression models, this study extends prior business group research in effects of group,
cross, and focal firm dimensions. In group dimension, we investigate previously untested role of group structure
through using small world structure as proxy to verify its relationship with group diversification, and confirmed
positively. Drawing upon social network theory and organizational theory, this study finds small world structure
can facilitate group industrial diversification. Group diversification was also tested and found related to group's
internationalization. In cross dimension effects, we found internationalization in group has positive effect on
focal firm's internationalization. However, small world structure in group is not related to firm innovative
capability. In focal firm dimension, the firm's innovative capability is positively related to its internationalization.
Drawing on the results, embedded group structure creates both constrains and opportunities for focal firm. (For
AIB 2012 Conference Proceedings
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