Managerial Issues in International Business (Academy of International Business)

234 Pages·2006·0.96 MB·English

by  Felicia M. Fai

Managerial Issues in
International Business
Edited by
Felicia M. Fai and Eleanor J. Morgan
Managerial Issues in International Business
THE ACADEMY OF INTERNATIONAL BUSINESS
Published in association with the UK Chapter of the Academy of International Business
Titles already published in the series:
International Business and Europe in Transition (Volume 1)
Edited by Fred Burton, Mo Yamin and Stephen Young
Internationalisation Strategies (Volume 2)
Edited by George Chryssochoidis, Carla Millar and Jeremy Clegg
The Strategy and Organization of International Business (Volume 3)
Edited by Peter Buckley, Fred Burton and Hafiz Mirza
Internationalization: Process, Context and Markets (Volume 4)
Edited by Graham Hooley, Ray Loveridge and David Wilson
International Business Organization (Volume 5)
Edited by Fred Burton, Malcolm Chapman and Adam Cross
International Business: Emerging Issues and Emerging Markets (Volume 6)
Edited by Carla C.J.M. Millar, Robert M. Grant and Chong Ju Choi
International Business: European Dimensions (Volume 7)
Edited by Michael D. Hughes and James H. Taggart
Multinationals in a New Era: International Strategy and Management (Volume 8)
Edited by James H. Taggart, Maureen Berry and Michael McDermott
International Business (Volume 9)
Edited by Frank McDonald, Heinz Tüselmann and Colin Wheeler
Internationalization: Firm Strategies and Management (Volume 10)
Edited by Colin Wheeler, Frank McDonald and Irene Greaves
The Process of Internationalization (Volume 11)
Edited by Frank McDonald, Michael Mayer and Trevor Buck
International Business in an Enlarging Europe (Volume 12)
Edited by Trevor Morrow, Sharon Loane, Jim Bell and Colin Wheeler
Managerial Issues in International Business (Volume 13)
Edited by Felicia M. Fai and Eleanor J. Morgan
Managerial Issues in
International Business
Edited by
Felicia M. Fai
and
Eleanor J. Morgan
School of Management, University of Bath, UK
Selection and editorial matter © Felicia M. Fai and Eleanor J. Morgan 2006
Foreword © Jeremy Clegg 2006
Individual chapters © the contributors 2006
All rights reserved. No reproduction, copy or transmission of this
publication may be made without written permission.
No paragraph of this publication may be reproduced, copied or transmitted
save with written permission or in accordance with the provisions of the
Copyright, Designs and Patents Act 1988, or under the terms of any licence
permitting limited copying issued by the Copyright Licensing Agency,
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Any person who does any unauthorised act in relation to this publication
may be liable to criminal prosecution and civil claims for damages.
The authors have asserted their rights to be identified
as the authors of this work in accordance with the Copyright,
Designs and Patents Act 1988.
First published 2006 by
PALGRAVE MACMILLAN
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PALGRAVE MACMILLAN is the global academic imprint of the Palgrave
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ISBN-13: 978–0–230–00193–0 hardback
ISBN-10: 0–230–00193–9 hardback
This book is printed on paper suitable for recycling and made from fully
managed and sustained forest sources.
A catalogue record for this book is available from the British Library.
Library of Congress Cataloging-in-Publication Data
Academy of International Business. UK Chapter. Conference (32nd:2005:University
of Bath, School of Management)
Managerial issues in international business/edited by Felicia M. Fai &
Eleanor J. Morgan.
p. cm. — (Academy of International Business)
Selection of papers from the 32nd Annual Conference of the UK Chapter of the
Academy of International Business, held April 8–9, 2005 at University of Bath,
School of Management.
Includes bibliographical references and index.
ISBN 0–230–00193–9
1. International business enterprises—Management—Congresses. I. Fai,
Felicia M., 1971– II. Morgan, Eleanor J. III. Title. IV. Academy of
International Business (Series) (Palgrave Macmillan (Firm))
HD62.4.A223 2005
658′.049—dc22 2005057504
10 9 8 7 6 5 4 3 2 1
15 14 13 12 11 10 09 08 07 06
Printed and bound in Great Britain by
Antony Rowe Ltd, Chippenham and Eastbourne
Contents
List of Tables vii
List of Figures viii
Foreword by Jeremy Clegg ix
Notes on the Contributors xi
1 Managerial Issues in International Business: Introduction 1
Felicia M. Fai and Eleanor J. Morgan
2 The Relevance of Internationalization Theories: a Contingency
Framework 9
Carl Arthur Solberg and Vidar Askeland
3 Cheating and Incentive Schemes in International Joint Ventures 33
Ursula F. Ott
4 Managerial Perspectives on Business Purpose: Values, National
Values and Institutions 50
Simon Harris and Chris Carr
5 A New Perspective on Parenting Spin-offs for Cluster Formation 67
Manuel P. Ferreira, William Hesterly and
Ana Teresa Tavares
6 Towards an Explanation of MNE FDI in the City of London
Financial Services Cluster 85
Naresh R. Pandit, Gary A.S. Cook and
Pervez N. Ghauri
7 International Entrepreneurship and Managing Network
Dynamics: SMEs in the UK Advertising Sector 102
Dev K. Boojihawon
8 Cross-border Management Issues in International Law Firms 123
Susan Segal-Horn and Alison Dean
9 The Performance Management–Training Interface in
Australian Firms in China 141
Susan McGrath-Champ and Xiaohua Yang
v
vi Contents
10 Country of Origin Effects on Knowledge Transfers from MNEs
to their Chinese Suppliers: an Exploratory Investigation 162
Jing-Lin Duanmu
11 Foreign Direct Investment Flows into an Integrating
Europe: MNE Strategy and Location Decisions, 1981–2001 180
Dimitra Dimitropoulou and Robert Pearce
12 New Directions in International Business 195
Simon Collinson, Peter Buckley, John Dunning and George Yip
Index 208
List of Tables
3.1 Definitions of cheating, broadly defined, and examples 36
3.2 Corruption perception index (CPI) and bribe payer’s index (BPI) 39
3.3 Cheating at work in relation to Hofstede’s dimensions 40
3.4 Sabotage and learning 47
4.1 National values orientations and expectations for stakeholders,
aims and time frames in six nations 54
4.2 Congruence between national values and case study observations 62
6.1 General advantages of a City of London location 93
6.2 The importance of close proximity to other firms 95
8.1 The seven managerial challenges 129
9.1 Company profiles 149
9.2 Expatriate profiles 150
9.3 Performance management (PM) components 156
10.1 Composition of firms interviewed 168
11.1 FDI inflows by origin; number of observations in each panel 184
11.2 Regression results, one-way FE and POLS 188
12.1 Multidimensional framework for investigating broad
themes – an example 202
vii
List of Figures
2.1 Framework for classifying internationalization theories 10
2.2 Trajectories of case firms within the framework 20
3.1 Power distance in relation to individualism and masculinity 39
4.1 Broad analytical model of factors underlying strategic decisions 53
6.1 The London financial services cluster 89
7.1 International entrepreneurship and network dynamics:
a conceptual framework 108
7.2 AccentUK 112
7.3 Contactpoint 114
7.4 Finewaters 116
9.1 Model of cross-cultural training and performance management 147
10.1 Knowledge transfer intensity and relationship development 169
12.1 Rigour and relevance in international business 196
viii
Foreword
This is the thirteenth volume to be published by Palgrave Macmillan in the
series of selected papers from the annual conference of the Academy of Inter-
national Business (AIB), United Kingdom Chapter. The 32nd Annual Conference,
on which this volume is based, was held at the School of Management,
University of Bath on Friday 8 and Saturday 9 April 2005, organized by the
joint conference chairs, Eleanor Morgan and Felicia Fai. The conference
achieved a new record in terms of the number of submissions and in terms of
the overall quality of papers presented: 79 papers were accepted for the conference
sessions and 24 students presented their research to panels of experts at the
doctoral colloquium.
The study of international business in the UK has, rather fittingly, become
increasingly international in recent years. This was clearly evident at the Bath
conference, where there were over 170 participants, of which 58 delegates
(staff and research students) came from academic institutions in 21 countries
outside the UK; indeed the challenges faced by those involved in international
business, whether as academics or as practitioners, are universal. John
Dunning, in a powerful contribution at the conference, highlighted ways in
which international business links to the major economic and welfare challenges
faced in the world. In drawing this volume together, the editors have focused
on managerial issues; each of the chapters connects to these challenges in
some way, while addressing issues that affect management in the process of
wealth creation.
Research in the field of international business is conducted on a number of
levels, from the micro to the macro. As international business comes to occupy
a progressively greater role in the creation of wealth, so its impacts and potential
impacts on social and welfare issues necessarily become greater. Thus, cultural
difference matters within multinational firms as well as between countries,
for business as well as economic performance and development. The interna-
tionalization of industries that customarily have been domestically focused,
notably the service industries, is important for growth. The quality of entre-
preneurship and management is critical for the performance of these firms and
the countries that they unite through their activities. Issues such as these, and
many more, are investigated in this stimulating volume arising from an
outstanding conference. A further selection of the best papers from the
conference will be published in a special issue of Management International
ix