Proceedings - Academy of International Business - Michigan State ...

MONDAY PROGRAMoperations. However, the global integration dimension of an MNC network configuration of international activities ispositively related to performance volatility.The Instability of IJVsJing Li, Indiana University, jinli@indiana.eduThis paper provides a game-theoretical model to examine the determinants of the instability of international joint venturesin developing countries, where “instability” refers to joint venture breakdown. External factors that promote instability arethe relaxation of ownership restrictions upon multinationals by government of developing countries, and intensive marketcompetition in these countries. Internal factors, such as the knowledge gap between multinationals and local partners andcoordination costs between them, contribute to the instability of international joint ventures. The paper also specifiesconditions under which multinationals have incentives to transfer less advanced knowledge to joint ventures. The abovepoints are illustrated by two international automobile joint ventures in China.Session 2.4.2 - Track 10 - WORKSHOPEmerging Issues in Global Supply Chain ManagementRoom: Spyglass 2Time: 10:30 a.m.-12:00 p.m.Chair: G. Tomas Hult, Michigan State University, hult@msu.eduSupply Chain Consequences of Modern Retail Entry in Developing Countries: Supermarkets in VietnamJames M. Hagen, Cornell University, jmh43@cornell.eduThe rapid modernization of food retailing in developing countries represents a technological innovation that has reachingeffects on the food systems in those countries. A very small literature on developing country retail innovations (e.g., theintroduction of supermarkets through foreign direct investment) was published from the 1950s through the 1980s. Thepresent paper argues that this line of scholarship needs to be revisited and extended in light of the recent internationalexpansion of food retailers, especially into Asia and Latin America. As a case example, the beginning stages of food retailmodernization in Vietnam (1995 to 2002) and the process of retail innovation in that country are detailed. The actual andpotential impact of this modernization on the food supply chain (including farmers, processors, and distributors) is great asretail innovations induce further innovations in agricultural production and distribution. While the retail modernizationmay lead to improvements in overall food system efficiency, it also has both positive and negative consequences for themany individuals and firms comprising the system. The process and consequences of innovation in food production (e.g.,improved irrigation) have already been widely explored, and now similar attention should be afforded the process andconsequences of innovation in food retailing.Maintaining Channel Position: An Examination of Distributor Behavior to Deter Manufacturer Forward IntegrationJennifer Nevins, University of South Carolina, nevinjenp4@smail.moore.sc.eduDistributors play a critical role in the export channel relationship by linking manufacturers with end users in distantmarkets. While distributors serve an important function in a domestic context in facilitating the flow of goods frommanufacturers to users, their role in an international channel is even more critical. However, the distributor perspective hasbeen largely overlooked in the international marketing channels literature. This paper proposes that internationaldistributors may use their position in the channel to influence the course of the channel relationship by deterringmanufacturer switching to forward integration of the distribution function. A resource-based perspective is employed toexamine specific actions that may be undertaken by a distributor to create valuable, unique and costly-to-copy resourcesthat serve to deter manufacturer efforts to change channel structure. Distributor actions are grouped according torelationship connectors (information exchange, operational linkages, and business adaptations) linking the distributor andits channel partners, which provide the means by which the distributor builds its resource base and increases switchingbarriers. A conceptual model is developed that relates distributor actions to switching barriers, and switching barriers tomanufacturer propensity to switch to an alternative distribution arrangement. Implications for theory and practice arediscussed.AIB 2003 - Monterey, California, USA July 5-8, 2003 51