scholarly journals The Stages of International Growth of the Business Groups From Emerging Economies

2015 ◽  
Vol 6 (2) ◽  
pp. 22-34
Author(s):  
Roderick Bugador
Keyword(s):  
Emerging Economies ◽  
Dynamic Capabilities ◽  
Transaction Cost Economics ◽  
Institutional Environment ◽  
Business Groups ◽  
Theory Of The Firm ◽  
Analytical Framework ◽  
Growth Stages ◽  
Firm Level ◽  
International Growth

The previous studies have focused on weak institutional environment in explaining the growth of business groups in emerging economies. The recent events, however, show that business groups continue to grow even when the institutions are getting better. This is evident both in the domestic and international growth stages. This paper addresses this by providing a group and a firm-level analytical framework as an alternative in examining the international growth of business groups. The focus is putting the institutional environment in the background and the business groups in the forefront. The paper builds on the endogenous growth of business groups and proposes that their persistence, regardless of institutions and level of economy, can be explained not only through their environment but also by the internal dynamics of their organizational structure and group-specific advantages. This proposition is based on the theory of the firm through the combined application of transaction cost economics, resource-based and dynamic capabilities views.

Behind the length of contract during market transitions

2020 ◽  
Vol 35 (11) ◽  
pp. 1801-1815
Author(s):  
Xin Chen ◽  
En Xie ◽  
Mike W. Peng ◽  
Brian C. Pinkham
Keyword(s):  
Emerging Economies ◽  
Transaction Cost Economics ◽  
Institutional Environment ◽  
Research Question ◽  
Empirical Method ◽  
Supplier Relationships ◽  
Content Type ◽  
Specific Investments ◽  
Market Transitions ◽  
Practical Implications

Purpose The purpose of this paper is to examine an important yet underexplored research question in the literature: What determines the length of contract governing buyer–supplier relationships during market transitions? The length of contract is a solid indicator of the comprehensiveness of a contract. By integrating transaction costs economics, the embeddedness perspective and the institution-based view, the paper develops a model that incorporates specific investments and perceived opportunism, strategies to select suppliers and buyer firms’ confidence in the institutional environment. It further posits how buyer firms’ dependence on suppliers moderates these relationships. Design/methodology/approach Data were collected nationwide via face-to-face interviews with 328 executives in 164 Chinese firms who shared information pertaining to 774 buyer–supplier contracts. A fine-grained mixed-empirical method was designed to test the proposed hypotheses, to confirm the reliability and to generalize the research findings. Findings All the proposed factors significantly influence the length of the contract. Results obtained through a moderated mediating model suggest that buyers with supplier-specific investments and that choose market-based selection relative to a relationship-based tend to perceive more opportunism in buyer–supplier relationships, which will lead to shortening the length of the contract. However, the buyer’s perception of opportunism will decrease when buyers perceive higher levels of confidence in their legal institutions. Practical implications The study discusses several practical implications for B2B managers who typically involve in interfirm exchanges as well as for emerging economies’ institutions. Originality/value Leveraging theoretical insights from transaction cost economics, the institution-based view and buyer–supplier relationships literature, this empirical study adds unique contributions to B2B research in general and emerging economies’ institutional literature in particular.

Dynamic Capabilities

2016 ◽  
Author(s):  
Mari Sako ◽  
George Chondrakis
Keyword(s):  
Organizational Design ◽  
Dynamic Capabilities ◽  
Theory Of The Firm ◽  
Capabilities Approach ◽  
Top Management Teams ◽  
Organizational Routines ◽  
Firm Level ◽  
Knowledge Domains ◽  
Firm Boundary ◽  
Heterogeneous Firm

Among various theories of the firm, the dynamic capabilities approach has not fully drawn its implications for firm boundary and organizational design. Firm boundary and structural design are abstracted away when strategy scholars study capabilities and firm-level heterogeneity. This chapter corrects for this deficiency by developing a coevolutionary model, with variations in combinations of entrepreneurial management and organizational routines as primitives of coevolution. Firms choose their boundary and structure as they select and replicate different combinations of knowledge domains and organizational routines to develop ordinary capabilities. Distinct from ordinary capabilities, dynamic capabilities embodied in top management teams enable firms to break or redefine their evolutionary paths, creating heterogeneous firm choices in boundary and structure. The model demonstrates the importance of looking at dynamic capabilities, alongside transactional and contractual characteristics, to provide a robust theory of the firm.

Globalization, Capabilities, and Distance

2016 ◽  
Author(s):  
Pankaj Ghemawat ◽  
Thomas M. Hout
Keyword(s):  
Emerging Economies ◽  
Dynamic Capabilities ◽  
Multinational Companies ◽  
Horizontal Distance ◽  
Baseline Model ◽  
Chinese Firms ◽  
Firm Level ◽  
R And D ◽  
Advanced Economies ◽  
China Market

This article examines how firm-level capabilities relate to competitive outcomes between multinational companies (MNCs) from advanced economies and challengers from emerging economies. It examines John Sutton’s theory of the “capability window” in light of new empirical evidence on competition in particular between MNCs and Chinese firms inside China. Market share leadership by MNCs in China is found to be positively related to industry R and D- and advertising-intensities; and where leadership varies by segment, MNCs tend to lead in high-end segments and Chinese firms in low-end segments. The empirical research provides support for Sutton’s model but also suggests a set of extensions to it—most significantly, the incorporation of horizontal distance alongside the vertical distance emphasized in his baseline model. And since dealing with both kinds of distance requires firms to do things that they have not done before, dynamic capabilities are essential to success in this context.

Ronald Coase and the Difference between Markets and Firms

2018 ◽  
Author(s):  
Abraham A. Singer
Keyword(s):  
Transaction Cost ◽  
Economic Activity ◽  
Transaction Cost Economics ◽  
Theory Of The Firm ◽  
Tabular Form ◽  
Specific Investment ◽  
The Difference ◽  
Marginal Revolution ◽  
The Way

This chapter reviews the development of transaction cost economics and unpacks its theory of the firm. The chapter begins with the marginal revolution in economics and how it altered the way economists understood the corporation. It then reviews the work of Ronald Coase and Oliver Williamson, explaining how they provided a novel account of firms. Transaction cost economics emphasizes how firms use hierarchy and bureaucracy to overcome problems of opportunism and asset-specific investment to coordinate some types of economic activity more efficiently than markets can. The transaction cost account of the corporation’s productivity component is shown in tabular form in comparison with its historical forerunners reviewed in the previous chapter.

scholarly journals An Exploratory Study of How Latecomers Transform Strategic Path in Catch-Up Cycle

2021 ◽  
Vol 13 (9) ◽  
pp. 4929
Author(s):  
Xiaoli Li ◽  
Hongqi Wang
Keyword(s):  
Technological Innovation ◽  
Industrial Policy ◽  
Emerging Economies ◽  
Evolutionary Process ◽  
Sustainable Growth ◽  
Rolling Stock ◽  
Innovation Capability ◽  
Firm Level ◽  
Industrial Leadership ◽  
Catch Up

In catch-up cycles, the industrial leadership of an incumbent is replaced by a latecomer. Latecomers from emerging economies compress time and skip amplitude by breaking the original strategic path and form a new appropriate strategic path to catch up with the incumbents. Previous studies have found that the original strategic path is difficult to break and difficult to transform. This paper proposes a firm-level framework and identifies the impetus and trigger factors for latecomers to transform the strategic path. The impetus is the mismatch between strategic mode and technological innovation capability. The trigger is the progressive industrial policy. Based on a Chinese rail transit equipment supplier’s (China Railway Rolling Stock Corporation; CRRC) catch-up process, this paper finds that the strategic path transformation is an evolutionary process from mismatch to rematch between strategic mode and technological innovation capability. With the implementation of industrial policy, the technological innovation capability will change. The original strategic mode does not match with changed technological innovation capability, which leads to performance pressure. With the adjustment of industrial policy, a new strategic mode adapted to new technological innovation capability emerges. This paper clarifies the source that determines successful catch-up practices for latecomers and contributes to latecomers’ sustainable growth in emerging economies.

Wining and Dining Government Officials: What Drives Political Networking in Chinese Private Ventures?

2020 ◽  
Vol 16 (5) ◽  
pp. 1084-1113
Author(s):  
Jianjun Zhang ◽  
Pei Sun ◽  
Kunyuan Qiao
Keyword(s):  
Emerging Economies ◽  
Resource Dependence ◽  
Institutional Environment ◽  
Resource Dependence Theory ◽  
Political Activity ◽  
Corporate Political Activity ◽  
Dyadic Relationship ◽  
Political Actors ◽  
Government Relations ◽  
The Government

ABSTRACTManagerial networking with political actors has long been recognized as a crucial co-option strategy to navigate the challenging institutional environment in emerging economies. However, we know much less about what drives the variation of political networking investment by private ventures. Drawing on resource dependence theory, we unpack the dyadic business-government relations and identify the key organizational and environmental factors that shape the power dependence relationships between private ventures and the government. By examining power imbalance and mutual dependence in this dyadic relationship and considering both the necessity and the capability of political networking, we develop hypotheses regarding the ways in which size-, connection-, and location-based dependencies affect firms’ political networking intensity. These hypotheses are tested through a unique survey of Chinese private ventures. Our study finds that political networking intensity (1) has an inverted U-shaped relationship with firm size, (2) is negatively associated with the presence of embedded political ties while positively associated with that of achieved political connections, and (3) is smaller when the focal firm is located in business development zones. This research bears rich implications for our understanding of corporate political activity in emerging economies from a resource dependence lens.

Diversified Business Groups and Corporate Refocusing in Emerging Economies

2005 ◽  
Vol 31 (6) ◽  
pp. 941-965 ◽  
Author(s):  
Robert E. Hoskisson ◽  
Richard A. Johnson ◽  
Laszlo Tihanyi ◽  
Robert E. White
Keyword(s):  
Emerging Economies ◽  
Business Groups

Innovation-orientation, dynamic capabilities and evolution of the informal Shanzhai firms in China

2016 ◽  
Vol 8 (1) ◽  
pp. 45-59 ◽  
Author(s):  
Rongwei Ren ◽  
Lei Yu ◽  
Yunxia Zhu
Keyword(s):  
Emerging Economies ◽  
Dynamic Capabilities ◽  
Theoretical Perspective ◽  
Leading Edge ◽  
Industrial Cluster ◽  
Innovation Development ◽  
Content Type ◽  
Damage Degree ◽  
Enhance Property ◽  
Communication Equipment

Purpose – This paper aims to study the evolution of innovation-based dynamic capabilities in informal copycat-style firms. As a kind of informal economical organizations, copycat-style firms in many emerging economies play an important role in their development of the economics. The development of Shanzhai firms, Chinese-style copycat firms, from imitation to innovation has become an important micro-foundation of China’s economic growth and the manufacturing development. With the cluster development of the Chinese mobile phone industry as the macro and industrial environment background, this paper chose Beijing Tianyu Communication Equipment Co. Ltd as the typical example of innovation in Shanzhai firms and studied the evolution of innovation-based dynamic capabilities in this company. Design/methodology/approach – This paper chose Beijing Tianyu Communication Equipment Co. Ltd as the typical example of innovation in Shanzhai firms and studied the evolution of innovation-based dynamic capabilities in this company by adopting the leading-edge dynamic capability theory, innovation theory and industrial cluster theory. The authors further discussed how to improve the dynamic capabilities in Shanzhai firms in China. Findings – It is finally suggested that Shanzhai firms should reduce innovation failures and lower damage degree of dynamic capabilities through consistent innovation and paying attention to their innovation improvement. Originality/value – It will be very significant to research the survival or diminishing of Shanzhai firms from a theoretical perspective, which will eventually enhance property right protection and innovation development in China.

Addressing the COVID-19 challenges by SMEs in the hotel industry – a Czech sustainability message for emerging economies

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Radka MacGregor Pelikanova ◽  
Eva Daniela Cvik ◽  
Robert Kenyon MacGregor
Keyword(s):  
Emerging Economies ◽  
Negative Impact ◽  
Hotel Industry ◽  
Analytical Framework ◽  
Behavioral Strategies ◽  
Content Type ◽  
Socratic Questioning ◽  
Entrepreneurial Readiness ◽  
Entrepreneurial Strategies

Purpose Emerging economies have to address positive challenges such as sustainability, digitalization, entrepreneurial readiness and planning and behavioral strategies and negative challenges, such as corruption and bureaucracy. The COVID-19 pandemic hit all economies and arguably made hotel businesses that are from less typical emerging economies, such as the Czech Small and medium-sized enterprises (SMEs), to deal with similar challenges to that of their counterparts from typical emerging economies. How do Czech hotel SMEs address the COVID-19 challenges and what sustainability message can be extracted from that with the relevance for not only businesses from emerging economies? The purpose of this paper is to explore how Czech hotel SMEs address the COVID-19 challenges and what sustainability. Design/methodology/approach A consolidated parsing of the literature, legislative and analytical framework, along with an investigative case study of 11 Czech hotel SMEs was performed, based on the questionnaire survey and semi-structured in-depth direct interviews. The holistic thematic analysis processed this fresh data and allowed Socratic questioning and glossing while addressing both research questions. Findings The performed case study reveals that typical challenges faced by entrepreneurs in emerging economies became, via COVID-19, universal challenges, these challenges are a valuable impulse for digitalization and changes of entrepreneurial strategies, but not so much for sustainability, and the omnipresent negative impact of corruption and bureaucracy. Originality/value This paper presents a pioneering study regarding the addressing COVID-19 and sustainability concerns by SMEs in a less typical emerging economy and offering a universal, partially comparative and sadly not so sustainable, message which is not just limited to emerging economies.

DECONSTRUCTING LAWSON AND SAMSON’S CONCEPT OF INNOVATION CAPABILITY: A CRITICAL ASSESSMENT AND A REFINEMENT

2019 ◽  
Vol 23 (06) ◽  
pp. 1950053 ◽  
Author(s):  
ARMAND DJOUMESSI ◽  
SHU-LING CHEN ◽  
STEPHEN CAHOON
Keyword(s):  
Factor Analysis ◽  
Dynamic Capabilities ◽  
Innovation Management ◽  
Empirical Studies ◽  
Capabilities Approach ◽  
Three Dimensions ◽  
Innovation Capability ◽  
Maritime Industry ◽  
Firm Level ◽  
Confirmatory Factor

For almost 20 years, research on firm level innovation have relied upon [Lawson and Samson (2001). Developing innovation capability in organisations: A dynamic capabilities approach. International Journal of Innovation Management, 5(3), 377–400] concept of innovation capability (IC). Of note, these authors stated that this concept needs to be ‘refined, validated and tested using other research methods’ [Lawson and Samson (2001). Developing innovation capability in organisations: A dynamic capabilities approach. International Journal of Innovation Management, 5(3), 377–400], p. 396. To date, empirical studies heeding this call have been challenging to find. By researchers relying on this untested concept, they risk not attaining comprehensive insights into the firm level mechanisms underpinning the transformation idea and knowledge into innovations. This paper proposes a rethinking of the IC concept. The analysis is based on survey data of 69 firms involved in the Australian maritime industry using exploratory factor analysis (EFA) and confirmatory factor analysis (CFA). The results suggest that the IC concept might be refined from seven dimensions, initially conceptualised, to three dimensions. The three dimensions are renamed as institutionalising innovation, implementing innovation and stimulating innovation.

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