AIB 2012 Conference Proceedings - Academy of International ...

SUNDAY
The authors explore the largely marginalized role of distance or ‘space' in multinationality and performance
research from a liability of foreignness perspective. Treating space as though it is liability forming, the authors
employ frequently contentious research issues in domain of multinationality and performance such as: 1) how
multinationality is measured, 2) what moderating variables are considered, and 3) what performance metric is
appropriate, as a framework to help illustrate the relativistic nature of space. It is argued that regions, and
measures of regionalization, may be considered using multiple dimensions of space and that this is simply
another method for capturing multinationality. Thus, the authors contend that the choice of dimensions along
which the ‘spatial proximity' defining regions is measured, affects the relationship between multinationality and
performance. Furthermore, this relationship is also contingent upon other moderating variables that include:
when (time) a spatial dimension is measured, the nature of the firm's business (industry), the firm's resources
(e.g. human capital), and the measure performance considered (ROS, CSR), inter alia. Consequently, scholars
should adopt a more fine-grained approach when considering which dimensions of space to employ, relative to
the study at hand, to be both theoretically and practically relevant. (For more information, please contact: Keith
Kelley, Florida International University, USA: kkelley@fiu.edu)
Is Opportunism Really Redundant in the Theory of the Multinational Enterprise
Alex Eapen, University of Sydney
Rekha Krishnan, Simon Fraser University
Proponents of transaction cost theory (TCT) argue that MNEs exist due to failure of markets, a main stimulus of
which is opportunism. On the contrary, proponents of the knowledge based view (KBV) argue that the
opportunism assumption is redundant; the existence of the MNE can be explained without recourse to
opportunism. This debate still persists (e.g., Fransson, Hakanson, & Liesch, 2011), but a key feature is that
despite competing causal mechanisms, predictions of TCT and KBV are identical. We see this lack of predictive
uniqueness as the main bottleneck in resolving the question of whether opportunism matters. We contribute to
this debate in two main ways: (1) conceptually, we exploit the contingency logics inherent in KBV and TCT to
build distinctive predictions from both theories, and (2) we empirically test the competing logics of both
theories, bringing empirical evidence to bear on the debate which has this far been on conceptual turf alone.
Our results suggest that opportunism matters. (For more information, please contact: Alex Eapen, University of
Sydney, Australia: alex.eapen@sydney.edu.au)
A Review and Reconceptualization of Uncertainty in International Business
Hannah Xia Han, University College Dublin
Dorota Piaskowska, University College Dublin
The impact of exogenous and endogenous uncertainty on international activities of firms is one of the most
commonly studied topics in international business. Building on theories such as transaction cost economics, real
options, organizational learning, and institutional theory, prior research provided a range of theoretical
arguments and empirical findings regarding how uncertainty impacts internationalization patterns and
outcomes. Yet, inconsistencies persist both at the conceptual level and in empirical findings. In this paper, we
review past research and propose that uncertainty may be usefully understood by highlighting its perceptual
and cognitive aspects. We attempt to offer a definition of uncertainty by drawing insights from past
conceptualizations and clarify some of the conceptual issues identified in prior research. We conclude with an
agenda for future research. (For more information, please contact: Hannah Xia Han, University College Dublin,
Ireland: xia.han@ucdconnect.ie)
An Alternative Approach to Measuring Internationalization
Sandra Seno Alday, University of Sydney
AIB 2012 Conference Proceedings
Page 69