Session 319

International Corporate Strategy

Track F

Date: Monday, September 22, 2014

 

Time: 11:00 – 12:15

Paper

Room: Londres


Session Chair:

  • Laurence Capron, INSEAD

Title: Developing Dynamic Capabilities and Offshore Outsourcing of Canadian Manufacturing SMEs

Authors

  • Muhammad Mohiuddin, Laval University
  • Zhan Su, Laval University

Abstract: There are insignificant researches that address the offshore outsourcing as a source of dynamic capabilities development. The objective of this paper is to explore on how manufacturing SMEs enhance their dynamic capabilities through offshore outsourcing in addition to the efficient related advantages that firms gain from this strategy. Organizational dynamic capabilities development process consist of increasing focus on Core competency of the focal firm, developing innovation capabilities, increasing market share, and improving flexibility of the firm. This study shows that offshore outsourcing contributes to the development of dynamic capabilities with varying degrees of success. This article open-up a new horizon on offshore outsourcing research and shed light on growth perspective and sustainable competitive advantages (SCA) that offshore outsourcing bring to manufacturing SMEs despite the size and resource constraints they inherit.

Title: Effects of Strategic Distance and International Context on Post Acquistion Performance

Authors

  • Panagiota Sapouna, Glasgow Caledonian University
  • Dimitrios Kyriazis, University of Piraeus
  • Pavlos Dimitratos, University of Glasgow
  • Spyros Lioukas, Athens University of Economic and Business

Abstract: The volume and value of international Mergers and Acquisitions (M&As) have significantly increased over the past two decades. Yet, empirical evidence suggests that the majority of them tend to fail. With this consideration in mind, we developed an integrative framework to explore the effects of competitive strategies of the merging partners, national cultural distance as well as institutional and macroeconomic environment (i.e., corporate governance distance, economic distance, geographic distance and openness of the target nation) on post-acquisition performance. To test our hypotheses, we collected data for 781 international M&As. The pattern of our findings indicates that strategic distance and national culture distance negatively influence post-acquisition performance while economic distance between the acquirer and the target adds value. The implications of these findings for theory and practice are briefly discussed.

Title: Investor Reaction to Conflicting Institutional Logics: Returns to Cross-Border Acquisitions Made by Chinese Firms

Authors

  • Xiaowei Luo, INSEAD
  • Laurence Capron, INSEAD

Abstract: While organizational scholars have built a strong research agenda that focuses on the internal tensions and processes associated with conflicting institutional logics, we know little about the external tensions associated with firm exposure to conflicting institutional logics. We address this gap by investigating how investors react to cross-border acquisitions made by firms in China’s transitional market, which is influenced by contradicting logics of market and government. Using all publicly listed Chinese firms from 2001 to 2010, we found investors reacted more negatively to the announcement of cross-border M&A made by firms that are more politically embedded, especially in regions with stronger market institutions. Our study contributes to research on conflicting institutional logics and corporate political activities.

Title: Unveiling the Antecedents of International Diversification: An Agency Theory Approach

Authors

  • Giovanni Battista Dagnino, University of Catania
  • Maurizio La Rocca, University of Calabria
  • Claudio Giachetti, Ca' Foscari University of Venice
  • Pasquale Massimo Picone, University of Catania

Abstract: Using a sample panel of 167 Italian firms longitudinally evaluated during the 1980-2010 period, this study tests whether the firm’s choice to spread operations in multiple geographic areas is conditioned by excess of free cash flow and debt, especially in firm-contexts where agency problems are exacerbated by managers or large shareholders’ opportunism. We find that debt has a negative effect on international diversification, while, contrary to our expectation, we find that the effect of cash flow is negative. Results also show that both high ownership concentration and low growth opportunities have a significant moderating effect on the debt - and cash flow - international diversification relationships.

All Sessions in Track F...

Sun: 08:00 – 09:15
Session 400: Teaching Corporate Strategy: Insights and Opportunities
Sun: 11:15 – 12:30
Session 401: Research Synergies in Corporate Strategy and Entrepreneurship
Sun: 15:45 – 17:00
Session 398: Corporate Strategy and Corporate Finance: Continuing the Research Conversation
Sun: 17:15 – 18:30
Session 602: Corporate Strategy IG Business Meeting
Mon: 08:00 – 09:15
Session 308: How do firms grow? Canvasing Different Perspectives
Session 316: Acquisitions and Divestures: Antecedents and Consequences
Mon: 11:00 – 12:15
Session 319: International Corporate Strategy
Mon: 14:45 – 16:00
Session 437: Corporate Structure, Resource allocation, and Portfolio planning
Mon: 16:30 – 17:45
Session 325: Product Scope Strategy in Different Empirical Contexts
Tue: 08:00 – 09:15
Session 327: Market Response to M&A
Tue: 11:00 – 12:15
Session 328: New Angles of Examining Acquisition Strategies
Tue: 15:30 – 16:45
Session 399: The Role of Industry/Environmental Conditions in Corporate Strategy
Tue: 17:15 – 18:30
Session 318: The Boundary of the Firm


Strategic Management Society

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