AIB 2012 Conference Proceedings - Academy of International ...

TUESDAY
emerging markets or developed economies. We illustrate the framework using case study examples of different
emerging multinationals. The paper concludes with fruitful avenues for future research. (For more information,
please contact: Margarete Kalinowski, ESADE Business School, Spain: margarete.kalinowski@esade.edu)
Turning Lead into Gold: The Case of Chinese and Indian Multinationals' Internationalization
Filip De Beule, KU Leuven
This paper analyzes the internationalization pattern of Chinese and Indian multinationals by looking into the
location determinants of their greenfield subsidiaries. On the basis of a conditional logit gravity model, it
analyzes whether these determinants vary by the type of activity –such as extraction, manufacturing, sales of
products or services, and R&D- being internationalized. Given that these Emerging Market Firms (EMFs) have
developed competitive advantages that fit their home country environment, the analysis shows that they
predominantly go to similarly economic environments but not to similarly institutional environments. In fact, a
greater positive institutional distance attracts more investments, while a greater economic distance deters
investment. This result is robust for all types of investment, except extraction. This latter type of subsidiary is
predominantly drawn to resource intensive countries. R&D subsidiaries are also shown to significantly locate in
countries with similar market and better institutional environments, indicating that both Chinese and Indian
firms largely carry out knowledge exploiting greenfield investments abroad. (For more information, please
contact: Filip De Beule, KU Leuven, Belgium: filip.debeule@lessius.eu)
Resources and Multinational Expansion of ASEAN Firms
Nuruzzaman Arsyad, International University of Jakarta
Peter Hwang, International University of Jakarta
This study investigates the type of resources that firms draw upon to expand internationally in the ASEAN
context. This paper seeks to understand the impact of technological, networking, and accumulated knowledge
resources on ASEAN firms' multinationality, moderated by labor intensity, the type of ownership and the stage
of economic development. We found that technology resource is positively associated with multinationality.
Moreover, the high labor intensity firms will benefit more from the impact of technology resource on
multinationality than low labor intensive firms. For manager industry experience, we found an inverted U-shape
relationship and for manager education we found a positive relationship with multinationality. Lastly, while
networking is important across firms in ASEAN, over-networking applies to foreign firms but not local firms. As
such, over-networking appears to be situation specific rather than a generalized concept. (For more information,
please contact: Nuruzzaman Arsyad, International University of Jakarta, Indonesia: nuruzzaman@ssb.ac.id)
Session: 3.4.4 - Competitive
Track: 4 - Strategy, Alliances, and Competitiveness
Governance and Innovation in International Alliances
Presented On: July 3, 2012 - 14:30-15:45
Chair: Jean-Francois Hennart, Tilburg University; Queens University; Singapore Management University
Non-Complementary Governance Mechanisms in International Technology Alliances and Innovation Capabilities
Yong Kyu Lew, University of Hull
This paper investigates governance mechanisms in international technology alliances (ITAs), firm-level
innovation capabilities, and performance outcomes in the mobile computing market. This high-tech market is
characterized by numerous cross-border strategic technology collaborations between software and hardware
AIB 2012 Conference Proceedings
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