Showing papers in "Journal of International Business Studies in 1987"
TL;DR: In this article, the authors extend the internalization approach to the theory of the multinational enterprise to include an expanded role for equity joint ventures, and explain why joint ventures may sometimes be preferred over wholly owned subsidiaries.
Abstract: This paper extends the internalization approach to the theory of the multinational enterprise (MNE) to include an expanded role for equity joint ventures. Using the transaction cost paradigm of Williamson, this paper explains why joint ventures may sometimes be preferred over wholly owned subsidiaries. Also presented is empirical work on joint-venture performance in developing countries which demonstrates that under certain conditions joint ventures can be the optimal mode of foreign direct investment.
723 citations
TL;DR: This paper found that the profitability of multinational growth over the whole period was independent of its destination, supporting the view that the primary source of the superior performance of multinationals was competitive advantage rather than the higher rate of profit in the industries of other countries.
Abstract: Over the period 1972–84, profitability among 304 large, British manufacturing companies was positively related to their degree of multinationality. Moreover, increases in overseas production were strongly associated with increases in sales and profitability. The profitability of multinational growth over the whole period was independent of its destination, supporting the view that the primary source of the superior performance of multinationals was competitive advantage rather than the higher rate of profit in the industries of other countries.
589 citations
TL;DR: In this paper, the impact of three factors that affect the psychometric rigor of cross-national consumer research comparisons is measured, and the interactions among these factors and the resultant deterioration in the quality of the data are analyzed.
Abstract: The impact of three factors that affect the psychometric rigor of cross-national consumer research comparisons is measured in this study. Conclusions are also drawn about the interactions among these factors and the resultant deterioration in the psychometric quality of the data.
423 citations
TL;DR: One hundred and fifty-two Brazilian companies that were exporting in 1978 were interviewed again six years later in 1984 to determine the factors that were correlated with the continuance of exporting as discussed by the authors.
Abstract: One hundred and fifty-two Brazilian companies that were exporting in 1978 were interviewed again six years later in 1984 to determine the factors that were correlated with the continuance of exporting. Firm characteristics, export management practices and manager perceptions were each found to be correlated with exporting success thus supporting the basic contention that it is possible to predict export performance. Firms that discontinued exporting relied more on the Brazilian government export incentives, possibly to be competitive in international markets without making the necessary structural changes, thereby raising important questions about the long-run impact of the Brazilian export programs.
419 citations
348 citations
TL;DR: In this paper, an empirical assessment comparing board composition (proportion of outside/nonmanagement board members) and CEO duality (role of CEO and chairperson held simultaneously) between samples of Japanese, United Kingdom, and United States industrial firms is provided.
Abstract: This paper provides an empirical assessment comparing board composition (proportion of outside/nonmanagement board members) and CEO duality (role of CEO and chairperson held simultaneously) between samples (n=150) of Japanese, United Kingdom, and United States industrial firms. Results indicate marked differences in these corporate governance dimensions. Implications regarding board independence, and differences in corporate governance internationally are discussed.
234 citations
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TL;DR: In this paper, the authors extend the internalization approach to the theory of the multinational enterprise to include an expanded role for equity joint ventures, and explain why joint ventures may sometimes be preferred over wholly owned subsidiaries.
Abstract: This paper extends the internalization approach to the theory of the multinational enterprise (MNE) to include an expanded role for equity joint ventures. Using the transaction cost paradigm of Williamson, this paper explains why joint ventures may sometimes be preferred over wholly owned subsidiaries. Also presented is empirical work on joint-venture performance in developing countries which demonstrates that under certain conditions joint ventures can be the optimal mode of foreign direct investment.© 1987 JIBS. Journal of International Business Studies (1987) 18, 1–16
234 citations
TL;DR: This article used a research design that attempts to isolate the influence of culture in cross-cultural studies and found unique persistent cultural characteristics with the cultural effect varying among the three groups of managers, including Japanese, Chinese and Mexican managers, their ethnic-American counterparts, and Anglo-Americans.
Abstract: Cross-cultural studies are inherently difficult because the typical research design fails to differentiate cultural from other environmental influences. The present study uses a research design that attempts to isolate the influence of culture. Japanese, Chinese and Mexican managers, their ethnic-American counterparts, and Anglo-Americans are used to test the model. Results indicate unique persistent cultural characteristics with the cultural effect varying among the three groups of managers.
190 citations
TL;DR: In this article, the results of four surveys related to the efforts of the AACSB to internationalize the curriculum of the business schools are reviewed and the question of whether the faculty members are trained or prepared to do this is raised.
Abstract: This note reviews the results of four surveys related to the efforts of the AACSB to internationalize the curriculum of the business schools. The first, a survey of the 1071 participants in the 30 workshop/seminars which have been organized by the AACSB, showed that the workshops have been very beneficial for the participants and affected the courses they teach. The second survey, of all AACSB member schools, showed that most of them plan to internationalize their curriculums by introducing an international dimension into the core courses. But this raises the question of whether the faculty members are trained or prepared to do this. The third survey found that only 64 out of 564 AACSB member schools have one or more exchange programs with foreign business schools, and that only about 125 professors go overseas each year under the aegis of these programs. Finally, a fourth survey, of the 53 largest doctoral programs, indicated that only 17% of the graduates of our doctoral programs study any international courses during their graduate (masters and doctoral) studies. Thus, the next generation of faculty members will have difficulty in introducing any international content into the courses they teach.
122 citations
TL;DR: In this paper, the authors assess the viability of a bank's strategy of entering into retail banking worldwide, wherever regulations permit, via a review of literature and evidence on foreign direct investment in banking.
Abstract: We assess the viability of a bank's strategy of entering into retail banking worldwide, wherever regulations permit, via a review of literature and evidence on foreign direct investment in banking. Issues we discuss include the roles of regulation, the costs of operating at a distance and in an unfamiliar environment, and the advantages or offsetting factors which foreign banks may possess relative to their local competitors. The factors the paper examines are uncompetitive host markets, product differentiation, economies of scale, management and technology, cost of capital, government support, and vertical integration.
120 citations
TL;DR: In this article, the authors investigated empirically whether industrial organization-oriented FDI theories explain the recent phenomenon of reverse foreign direct investment in the U.S. based on the distribution of FDI in two-digit SIC manufacturing industries.
Abstract: This paper investigates empirically whether industrial organization-oriented FDI theories explain the recent phenomenon of reverse foreign direct investment in the U.S. Based on the distribution of FDI in two-digit SIC manufacturing industries, we find that capital and advertising intensities act as entry barriers to foreign investments in the U.S. We also observe that foreign multinationals are attracted by the U.S. market size, and that they invest heavily in industries with intensive R&D combined with marketing efforts.
TL;DR: The authors examined whether several situational variables serve as moderators of the effects of leader reward and punishment behaviors for Taiwanese workers, and found that none of the situational variables was found to reverse the positive relationship between leader contingent reward behavior and subordinate performance or satisfaction.
Abstract: This study was designed to examine whether several situational variables serve as moderators of the effects of leader reward and punishment behaviors for Taiwanese workers. Contrary to what would be expected from Kerr and Jermier's (1978) substitutes for leadership model, none of the situational variables was found to reverse (1) the positive relationship between leader contingent reward behavior and subordinate performance or satisfaction, or (2) the generally negative relationship between leader noncontingent punishment behavior and these subordinate criterion variables. Potential limitations of these findings, and their implications for the study of leadership effectiveness across cultures are then discussed.
TL;DR: In this paper, the authors analyzed the responses of 411 AACSB member schools with respect to their offerings in international business and found that international business material is often incorporated into functional courses, and that among AACSB schools the accredited ones are not significantly different from the non-accredited ones in terms of curricula composition.
Abstract: The study analyzes the responses of 411 AACSB member schools with respect to their offerings in international business. The findings of this study are that international business material is often incorporated into functional courses, and that among AACSB schools the accredited ones are not significantly different from the non-accredited ones in terms of curricula composition.
TL;DR: An analysis of the environments of leading manufacturing firms operating in the United States and in Australia produced a series of hypothesized differences in the strategies, organization structures, and market environments of firms in the two countries as discussed by the authors.
Abstract: An analysis of the environments of leading manufacturing firms operating in the United States and in Australia produced a series of hypothesized differences in the strategies, organization structures, and market environments of firms in the two countries. Parallel hypotheses about differences between domestic Australian firms and subsidiaries of foreign multinationals operating in Australia were also developed.
TL;DR: In this paper, minimum risk-hedging ratios and the hedging effectiveness of forward foreign exchange markets for the British pound and the German mark during the period January 4, 1982-April 30, 1984 were investigated.
Abstract: This study investigates minimum risk-hedging ratios and the hedging effectiveness of forward foreign exchange markets for the British pound and the German mark during the period January 4, 1982—April 30, 1984. These currencies are selected because of their importance in foreign exchange markets and their use as international currencies. Evidence is strong that the presence of autocorrelation not only overstates optimal hedge ratios but also overstates hedging effectiveness for these two currencies. The lower optimal hedging ratios found in this study than in earlier works is thus largely attributed to the adjustment for autocorrelation.
TL;DR: This article conducted an opinion survey of members of the Academy of International Business as to the ranking of international programs in U.S. business schools (JIBS, Spring/Summer 1984).
Abstract: Several years ago Donald Ball and Wendell McCulloch carried out an opinion survey of members of the Academy of International Business as to the ranking of international programs in U.S. business schools (JIBS, Spring/Summer 1984). It included 79 schools in the results.
TL;DR: The authors tested the extent of similarity between 1708 American senior vice-presidents and those of 418 British counterparts, drawn from the Fortune 500 and the Times 500, being representative of the top management teams of the largest national companies dominating domestic economies.
Abstract: This study tested for the extent of similarity between 1708 American senior vice-presidents and those of 418 British counterparts. The sample was drawn from the Fortune 500 and the Times 500, being representative of the top management teams of the largest national companies dominating domestic economies.
TL;DR: In this article, the authors investigated differences between users and non-users of foreign trade zones in terms of firm characteristics, the awareness of zone benefits, and the importance of the benefits to the firms surveyed.
Abstract: Recent research has investigated the internationalization process of the firm. This study provides insight into the role that foreign trade zones play in that process. It investigates differences between users and non-users of foreign trade zones in terms of (1) firm characteristics, (2) the awareness of zone benefits, and (3) the importance of the benefits to the firms surveyed. Zone users were found to import significantly more than non-users and exported more as well. Users tended to be smaller in size (sales and number of employees) than non-users. Users were more aware of the benefits of foreign trade zones and, for the most part, rated the benefits as being more important in facilitating their global marketing and logistics functions.
TL;DR: In this article, the authors assess the costs to American companies of U.S. export controls and suggest business policies to minimize their adverse effects, using the 1982 Soviet gas pipeline case as a concrete example.
Abstract: The objectives of this study are to assess the costs to American companies of U.S. export controls, and to suggest business policies to minimize their adverse effects. The 1982 Soviet gas pipeline case is used as a concrete example. Original field research among business people and government officials in Europe and the U.S. is the main data source. The main findings of the study are that the costs of export controls to American business that can be measured are very high, and much above government estimates. The optimum strategy for business to follow is to influence the executive branch of government rather than to press for compensation schemes or legislative changes.
TL;DR: The authors presented information on the educational backgrounds, institutional affiliations, and research interests of the Academy of International Business (AIB) membership, where appropriate, a distinction is made between members affiliated with U.S. institutions and non-U.S institutions.
Abstract: The AACSB accreditation guidelines of 1974, and the subsequent growth in international business education, add considerably to the need for a clearer understanding of the academic qualifications and research activities of those who are called upon to teach international business subjects. This paper presents information on the educational backgrounds, institutional affiliations, and research interests of the Academy of International Business (AIB) membership. Where appropriate, a distinction is made between members affiliated with U.S. institutions and members affiliated with non-U.S. institutions.
TL;DR: In this paper, the relevance of paradigms focusing on rational and sociopolitical power in strategic decision-making is explored among three country clusters and the predictive validity of a model incorporating political and rational sources of power is established across the clusters.
Abstract: The relevance of paradigms focusing on rational and sociopolitical power in strategic decision-making is explored among three country clusters. The predictive validity of a model incorporating political and rational sources of power is established across the clusters. Moreover, country clusters appear to moderate the power relationships.
TL;DR: In this paper, the authors discuss whether financial managers should hedge these cash flows independently or combine them under one integrative hedging scheme, and show that, while the independent approach does not lead to the lowest risk, its hedging effectiveness is close to that of the integrative approach.
Abstract: Many financial managers think that foreign exchange hedging decisions are mainly a choice between to hedge or not to hedge. Nevertheless, previous researchers applied Ederington's portfolio approach and found that even for risk minimization, a complete hedge does not lead to the lowest risk. Instead, there exists an optimal hedging ratio which yields the lowest variance. However, the discussions of these former studies were concentrated on a single foreign currency cash flow. In the real world, financial managers are more likely to expect multiple cash flows arriving at different times even for the same foreign currency. This paper therefore discusses whether financial managers should hedge these cash flows independently or combine them under one integrative hedging scheme. It is shown that, while the independent approach does not lead to the lowest risk, its hedging effectiveness is close to that of the integrative approach. Given the time and resource constraints of financial managers, the simpler independent approach appears to be a better choice.
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