Session 379

Emerging Markets: Understanding the Importance of Context

Track G

Date: Monday, September 22, 2014

 

Time: 08:00 – 09:15

Paper

Room: Lisboa


Session Chair:

  • Saikat Chaudhuri, University of Pennsylvania

Title: Business Model Adaptation for Emerging Markets: Case of a German Automobile-Manufacturer in India and Thailand

Authors

  • Christian Landau, EBS University of Business and Law
  • Amit Karna, Indian Institute of Management Ahmedabad
  • Miriam Sailer, EBS University

Abstract: Business models that enable firms to achieve competitive advantage in their home markets are often subjected to innovation when transferred to international markets, especially emerging economies. Based on a case study of a German premium car manufacturer’s successful international strategy for India and Thailand, we develop insights into how to adapt business models for emerging markets. We find that successful firms adjust some components of their business model significantly, in particular content, structure, and governance of their activity systems, to take differences in customer characteristics and institutional differences into account. However, they follow similar value propositions and value capture mechanisms and maintaining the underlying design theme of its home country business model. We propose an inductive framework to explain business model adaptation for emerging markets.

Title: Knowledge-Intensive Acquisitions by Firms from Emerging Countries in Europe: The Role of Governance and Experience in the Ownership Choices

Authors

  • Vittoria Giada Scalera, University of Amsterdam

Abstract: The present work is about the ownership choices by knowledge-intensive Emerging Market Multinational Enterprises (EMNEs) when they invest in Europe through acquisitions, and the relationship with corporate governance and experience. Namely, we claim that EMNEs affiliated to a business group and with previous experience in the host country more likely acquire less control and keep the local partner. Additionally, we claim that the corporate governance characteristics and the role of experience affect differently the ownership decision of Chinese and Indian firms, respectively. Our empirical analysis relies on a dataset of acquisition undertaken by high and medium-high tech Chinese and Indian MNEs in Europe, in the period 2003-2011 (Data sources: SDC Platinum and BvD Zephyr).

Title: Learning to become a High Reliability Organization in the Food Retail Business

Authors

  • Esteban R. Brenes, INCAE Business School
  • Luciano Ciravegna, INCAE Business School

Abstract: This case discusses Selectos, a retail chain based in El Salvador, which was put under severe strain when Walmart entered its domestic market. The case illustrates that Selectos succeeded in competing Vis a Vis Walmart because it implemented the principles of High Reliability Organizations. The case is designed to illustrate how a domestic firm from an emerging market competes with a leading multinational corporation, emphasizing the importance of organizational learning, especially the development of routines and mechanisms that allow for flexibility and adaptability to changes in conditions.

Title: Understanding the Rise of Emerging-Market Companies’ Acquisitions of Developed-Market Firms: A Resource-based Perspective

Authors

  • Saikat Chaudhuri, University of Pennsylvania
  • Rosa Caiazza, Parthenope University of Naples

Abstract: The recent rise of emerging-market companies’ (EMCs) acquisitions of developed-market companies (DMCs) has triggered a debate on the appropriateness of the traditional internationalization paradigm (i.e., OLI framework or internalization theory) in explaining these contemporary developments. We seek to help reconcile the views, by suggesting that assumptions of the existing paradigm must be adapted for the new phenomenon as the latter exhibits features inconsistent with the former’s premises. We do so by offering a resource-based perspective that provides a more balanced focus on the role of both firm-specific and location-specific resources in the value creation of EMCs’ acquisitions of DMCs. Applying our conditional approach, we develop testable propositions on the distinct antecedents, processes, and outcomes of such acquisitions as a point of departure for future work.

All Sessions in Track G...

Sun: 08:00 – 09:15
Session 389: Managing the Multinational Organization in an Increasingly Complex World
Sun: 09:30 – 10:45
Session 221: Global Stakeholder Networks
Session 390: Local Determinants of Competitive Advantage and Disadvantage
Sun: 11:15 – 12:30
Session 2: Offshore Outsourcing, Dynamic Capabilities, and the Changing Nature of Firm Boundaries
Sun: 15:45 – 17:00
Session 270: Innovation in MNCs and Global Networks
Session 371: Inter and Intra Organizational Learning Across Borders: A Knowledge Management Perspective
Session 380: Small, Young and Entrepreneurial Firms: A Unique Perspective in Globalization
Sun: 17:15 – 18:30
Session 603: Global Strategy IG Business Meeting
Mon: 08:00 – 09:15
Session 335: Internationalization and Strategic Decisions
Session 379: Emerging Markets: Understanding the Importance of Context
Mon: 11:00 – 12:15
Session 372: The Challenges of Global Operations: Managing R&D and Complexity
Session 373: Global Diversification: Governance and Performance Implications
Mon: 14:45 – 16:00
Session 375: Changing External Environments: How do Multinationals Respond?
Session 381: Firm boundaries in Multinational Organizations: Antecedents and Consequences
Session 414: Global Networks and Business Groups
Mon: 16:30 – 17:45
Session 226: Culture, Norms and Institutions: The contextual influences on Entrepreneurship
Session 374: Antecedents and Consequences of Multinational Location Decisions
Session 382: Drivers of Multinational Performance:What, Where and When?
Tue: 08:00 – 09:15
Session 383: Globalization of R&D: Implications for Learning and Innovation
Tue: 11:00 – 12:15
Session 376: Headquarters Subsidiary Relationship: New Approaches to an Old Question
Session 384: Multinational Location Decisions: New Approaches Across Different Perspective
Tue: 15:30 – 16:45
Session 263: Innovation Models in Emerging Economies
Session 377: Organizing Assets Across Borders: Drivers and Consequences
Session 385: Multinational firms and the External Environment: The Role of Institutions
Tue: 17:15 – 18:30
Session 378: Global Outsourcing & Offshoring: Implications for Multinational Decisions


Strategic Management Society

Madrid