AIB 2012 Conference Proceedings - Academy of International ...

SUNDAY
Building on scholarly assessments of extant measures of firm internationalization, this paper proposes an
alternative measure grounded in transaction cost and internalization theories of international business. The
proposed Internationalization Coefficient (IC) is designed to address the major issues of the most common
measures, and suggested as a more robust operationalization of the concept of internationalization in theory.
Implications on empirical international business research and potential contributions to theory testing and
development are discussed. (For more information, please contact: Sandra Seno Alday, University of Sydney,
Australia: sandra.seno-alday@sydney.edu.au)
The Location and Co-Evolutionary Dynamics of Multi-National Enterprise in the Global Knowledge Economy
Brian Hilton, Nottingham University Business School
It is argues that the life cycle of technological cluster location is effected by the needs of design and
governance in the value chain of Buckley's "Global Factory" This is sometimes not within Multi-National
(Corporate) Enterprises (MNEs) but within networks of Multi-National Enterprise (MNE). International location is
within the ambit of co-evolving institutions not just global ownership structures. This managerial fragmentation
in the MNE value suggests that IB needs a frame of reference going beyond trade and FDI encompassing the
location of knowledge creation in design cluster and supply chain value governance permitting those owning
marketing (brand) equity to situate where they can best realise their equity. We argue that these two high
value adding activities seem to locate in what North describes as Open Access Order (developed) societies that
facilitates this, the new economic geographer's "North" and not in Local Access Orders (underdeveloped )
societies, the "South", which do not. The theory developed is tested against the experience of the textile and
garment industry where it is clear location occurs over periods far longer than the long run of capital flow but
the even longer runs when technology and even the institutions of governance move. (For more information,
please contact: Brian Hilton, Nottingham University Business School, China: brian.hilton@nottingham.edu.cn)
Session: 1.4.13 - Interactive
Track: 6 - Innovation and Knowledge Mgmt.
Innovation in Emerging Economies
Presented On: July 1, 2012 - 14:30-15:45
Chair: Sheila M. Puffer, Northeastern University
A Comparative Analysis of Innovation Outsourcing to China and India: The Location of Clinical Trials
Klaus Nielsen, Birkbeck, University of London
Tariq Malik, Dongbei University of Finance & Economics
This study explores the reasons why foreign pharmaceutical firms prefer China rather than India as their
location for innovation activities. We use clinical trials as the innovation activity and empirically compare the two
locations with evidence for 2010 and 2011. Based on 1185 observations in two countries, we find that China is
obviously the preferred choice and is increasingly becoming so. Large firms in particular tend to prefer China.
European firms have relatively a higher preference for China as the location for clinical trials compared to
American companies. Relatively small firms prefer India. The clinical trials in India are at earlier stages
compared to the trials located in China which are typically at later stages. It appears that firms in China have
entered earlier than those who locate in India for clinical trials. The paper discusses some possible explanations
and suggests some implications. (For more information, please contact: Klaus Nielsen, Birkbeck, University of
London, United Kingdom: k.nielsen@bbk.ac.uk)
AIB 2012 Conference Proceedings
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