Prelims

The Multiple Dimensions of Institutional Complexity in International Business Research

ISBN: 978-1-80043-245-1, eISBN: 978-1-80043-244-4

ISSN: 1745-8862

Publication date: 4 March 2021

Citation

(2021), "Prelims", Verbeke, A., van Tulder, R., Rose, E.L. and Wei, Y. (Ed.) The Multiple Dimensions of Institutional Complexity in International Business Research (Progress in International Business Research, Vol. 15), Emerald Publishing Limited, Leeds, pp. i-xviii. https://doi.org/10.1108/S1745-886220210000015026

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Emerald Publishing Limited

Copyright © 2021 Emerald Publishing Limited


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The Multiple Dimensions of Institutional Complexity in International Business Research

Title Page

PROGRESS IN INTERNATIONAL BUSINESS RESEARCH VOLUME 15

THE MULTIPLE DIMENSIONS OF INSTITUTIONAL COMPLEXITY IN INTERNATIONAL BUSINESS RESEARCH

EDITED BY

ALAIN VERBEKE

University of Reading, United Kingdom; Vrije Universiteit Brussel, Belgium;

University of Calgary, Canada

ROB VAN TULDER

Erasmus University, The Netherlands

ELIZABETH L. ROSE

University of Leeds, United Kingdom; Indian Institute of Management Udaipur, India

YINGQI WEI

University of Leeds, United Kingdom

United Kingdom – North America – Japan India – Malaysia – China

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Emerald Publishing Limited

Howard House, Wagon Lane, Bingley BD16 1WA, UK

First edition 2021

Copyright © 2021 Emerald Publishing Limited

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ISBN: 978-1-80043-245-1 (Print)

ISBN: 978-1-80043-244-4 (Online)

ISBN: 978-1-80043-246-8 (Epub)

ISSN: 1745-8862 (Series)

Contents

List of Figures ix
List of Tables xi
List of Contributors xv
INTRODUCTORY SECTION
D. Eleanor Westney: A Biography
Elizabeth L. Rose xvii
Chapter 1  Institutions 2.0: Which Institutions Matter in IB Research?
Alain Verbeke, Rob van Tulder, Elizabeth L. Rose and Yingqi Wei 1
PART I
THE GREAT NEW CHALLENGES FOR IB RESEARCH – ESSAYS IN HONOR OF D. ELEANOR WESTNEY
Chapter 2  International Business and Multi-level Institutional Change: Looking Back and Facing Forward
D. Eleanor Westney 23
Chapter 3  Global Strategic Analysis and Multi-level Institutional Change
Donald R. Lessard 45
Chapter 4  Is a Networked World Economy Sustainable?
Stephen J. Kobrin 63
Chapter 5  Network Effects and Multi-level Dynamics in the Internationalization of Digital Platforms: A Reflection
Mauro F. Guillén 71
Chapter 6  Renewing the Relevance of IB: Can Some History Help?
Geoffrey Jones 77
PART II
HOME COUNTRY INSTITUTIONS AND INTERNATIONAL BUSINESS
Chapter 7  Managing Around Populism
Timothy M. Devinney and Christopher A. Hartwell 95
Chapter 8  Institutions, Corporate Governance, and Internationalization of State-owned Enterprises in a Varieties of Capitalism Framework
Sergio Mariotti and Riccardo Marzano 107
Chapter 9  Business Group Affiliation and Export Propensity in New Ventures
Jonas Eduardsen, Svetla Marinova, Božidar Vlačić and Miguel González-Loureiro 129
Chapter 10  Product and Process Innovations and the Institutional Context of Transition Economies: The Effects of External Knowledge
Virginia Hernández, María Jesús Nieto and Alicia Rodríguez 155
PART III
HOST COUNTRY INSTITUTIONS AND INTERNATIONAL BUSINESS
Chapter 11  Corporate Anti-corruption Policy, Investment Motives, and Foreign Location Choice
Guoliang Frank Jiang and Michael A. Sartor 173
Chapter 12  Host Government Intervention and FDI Inflow: An Empirical Investigation
Gilbert Kofi Adarkwah 193
Chapter 13  Stakeholder Responses and the Interplay Between MNE Post-entry Behavior and Host Country Informal Institutions
Elina Pelto and Anna Karhu 219
Chapter 14  Old Risks, New Reference Points? An Organizational Learning Perspective into the Foreign Market Exit and Re-entry Behavior of Firms
Irina Surdu and Edith Ipsmiller 239
Chapter 15  Intangible Assets of MNE Foreign Subsidiaries: The Role of Internal Financial Resources and Host Country Institution
Quyen T. K. Nguyen 263
Chapter 16  How Do SMEs Face Institutional Challenges in China?
Noémie Dominguez and Ulrike Mayrhofer 287
PART IV
MULTI-COUNTRY AND BELOW-COUNTRY LEVEL INSTITUTIONS AND INTERNATIONAL BUSINESS
Chapter 17  International Services: The Interface between Service Characteristics, Policy, and Institutions
Kristin Brandl, Peter D. Ørberg Jensen, Andrew Jones and Patrik Ström 299
Chapter 18  Creating a Typology of International Alliances with City-level Distance Measures
Juliane Engsig, Bo B. Nielsen, Paul Chiambaretto and Andry Ramaroson 311
Chapter 19  Successful and Unsuccessful Radical Transformation of Multinational Mobile Telephony Companies: The Role of Institutional Context
Frank Elter, Paul N. Gooderham and Inger G. Stensaker 339
Chapter 20  A Note on Changing Regulation in International Business: The World Intellectual Property Organization (WIPO) and Artificial Intelligence
Aldo Alvarez-Risco and Shyla Del-Aguila-Arcentales 363
PART V
INSTITUTIONS AND SUSTAINABILITY STRATEGIES
Chapter 21  Environmental Sustainability Strategy and International Performance: A Review of Literature and a Conceptual Model
Leonardo B. Barbosa, Jorge Carneiro, Camila Costa, Filip De Beule, Rafael Goldszmidt and T. Diana Macedo-Soares 375
Chapter 22  Embeddedness and Interactions in New Public Environmental Management Governance: International and Intertemporal Evidence on Voluntary Standards
Marcus Wagner 399
Chapter 23  Environmental Concerns – Uniting Generations for a Global Cause in Turbulent Times
Susana C. Silva, Paulo Duarte, Carla Martins and Paulo Collaço 417
Chapter 24  The Diffusion of Corporate Sustainability in Global Supply Networks: An Empirical Examination of the Global Automotive Industry
Bruno Barreto de Góes, Masaaki Kotabe and José Mauricio Galli Geleilate 435
Index 459

List of Figures

CHAPTER 3
Fig. 1. Interconnected Levels of Analysis for Global Strategic Management (Lessard, 1998). 50
Fig. 2. RAT Framework: Relevant, Appropriable, Transferable (Westney, 2017). 51
Fig. 3. CAT Framework: Complementary, Appropriable, Transferable (Westney, 2017). 51
Fig. 4. RATs in Relation to Key Strategic Activities (Thun & Samel, 2020). 52
Fig. 5. Sources of Value from Going Global and Being Global (Lessard, 2016). 54
Fig. 6. RATs/CATs and the Value of Internationalization (Lessard, 2016). 55
Fig. 7. Multiple Layers of Institutions, Markets, and Technologies Affecting Global Manufacturing (Lessard, 2014). 56
Fig. 8. Change Over Time of Multi-level International Business Contexts. 58
CHAPTER 7
Fig. 1. Average Vote Share of Populist Parties in Europe, 1990–2018. 96
CHAPTER 8
Fig. 1. Joint Effect of Corporate Governance and Variety of Capitalism on the Internationalization of State-owned Enterprises. 120
CHAPTER 9
Fig. 1. Average Marginal Effect of Business Group Affiliation at Various Firm Sizes. 143
CHAPTER 12
Fig. 1. Growth of Investment Agreements and ICSID Cases 1972–2017. 195
Fig. 2. Inverted U-shaped Relationship between Host Government Interference and FDI. 207
Fig. 3. Inverted U-shaped Relationship between Host Government Interference and FDI by Income Group. 209
CHAPTER 13
Fig. 1. The Role of Stakeholder Responses in the Interplay between an MNE and Informal Institutions in the Host Field. 224
Fig. 2. Stakeholder Responses to Lidl’s Entry into Finland and the Interplay between Company Activities and Informal Institutions. 232
Fig. 3. Stakeholder Responses to Fazer’s Entry into Russia and the Interplay between Company Activities and Informal Institutions. 233
CHAPTER 14
Fig. 1. Foreign Market Entry–Exit–Re-entry Decision-making Map. 243
CHAPTER 18
Fig. 1. Predicted Means of the Five Identified Classes at the City Level. 323
CHAPTER 19
Fig. 1. An Overview of Telenor Group Holding (January 2020). 351
CHAPTER 21
Fig. 1. Descriptive Summary of Selected Studies for this Literature Review. 382
Fig. 2. Generic Conceptual Model of the Determinants and Consequences of the Adoption of Environmentally Sustainable Strategies. 390
CHAPTER 24
Fig. 1. Network-related Firm Attributes and Corporate Sustainability Diffusion. 440
Fig. 2. Power Structures Within Buyer–Supplier Relationships Based on Resource Dependence Asymmetries. 441
Fig. 3. Relative Network Position. 444
Fig. 4. Network Data Structure. 446
Fig. 5. Degree versus Eigenvector Centrality. 448

List of Tables

CHAPTER 3
Table 1 Eleanor Westney’s Multi-level Framing of International Strategy (Westney, 2017). 53
CHAPTER 9
Table 1 Variables Included in the Analysis. 140
Table 2 Correlations. 141
Table 3 Results from Logistic Regression (Baseline = Independent SMEs). 142
CHAPTER 10
Table 1. Correlation Matrix and Descriptive Statistics. 163
Table 2. Results – Product and Process Innovations. 165
CHAPTER 11
Table 1. Descriptive Statistics and Bivariate Correlations. 183
Table 2. Mixed Logit Models of Location Choices for Production Entries. 184
CHAPTER 12
Table 1. Variables, Definitions, and Data Source. 200
Table 2. Countries with the Most Frequent Number of HCDS Cases. 201
Table 3. Descriptive Statistics and Correlations. 204
Table 4. Results of 2SLS Regression of Host Government Intervention and FDI Inflow. 205
Table 5. Results by Income Groups. 208
Table 6. Estimation with Lagged Dependent Variable. 211
CHAPTER 14
Table 1. Summary Statistics and Correlations. 252
Table 2. Sample Key Characteristics. 253
Table 3. OLS Regression Results for ALL Firms. 254
Table 4. OLS Regression Results for LowEXP and HighEXP. 255
CHAPTER 15
Table 1. Descriptive Statistics and Pearson Correlations. 273
Table 2. Multiple Regression Results. 275
Table 3. Two-stage Least Square (2SLS) Regression Results. 277
CHAPTER 18
Table 1. Levels of ISA Predictors. 317
Table 2. Variable Presentation. 321
Table 3. Model Selection. 321
Table 4. Latent Class Marginal Probabilities. 322
Table 5. Typology of International Alliances with City-level Distance Measures. 327
CHAPTER 21
Table 1. Patterns of Conceptualization of Environmental Sustainability Strategies. 383
Table 2. External Factors Influencing the Adoption of Environmental Sustainability Strategies. 385
Table 3. Internal Factors Influencing the Adoption of Environmental Sustainability Strategies. 386
Table 4. Competitive Advantages Arising from the Adoption of Environmental Sustainability Strategies. 388
Table 5. Performance Indicators Most Used in Environmental Sustainability Strategy Studies. 389
CHAPTER 22
Table 1. Items Used for Calculation of the Dependent Variable. 404
Table 2. Pooled Estimation in Europe for 2001 407
Table 3. Estimations by Country in Europe for 2001 408
Table 4. Pooled Estimations in Germany for 2001–2016 and 2001/2011, respectively. 409
Table 5. Estimations by Year in Germany for 2001 and 2011 410
CHAPTER 23
Table 1. Hypotheses. 425
Table 2. Constructs and Items. 426
Table 3. Sample Characterization. 427
Table 4. Item and Scale Statistics. 428
Table 5. Hypothesis Analysis. 428
CHAPTER 24
Table 1. Ranking of Auto Manufacturers by Motor Vehicle Production (2014). 446
Table 2. OLS Regression Results: Effects of Resource Dominance, Resource Substitutability, and Network Centrality on Corporate Sustainability Diffusion Performance. 451

List of Contributors

Gilbert Kofi Adarkwah BI Norwegian Business School, Norway
Aldo Alvarez-Risco Universidad de Lima, Perú
Leonardo B. Barbosa FGV EAESP Sao Paulo School of Business Administration, Brazil
Kristin Brandl University of Victoria, Canada
Jorge Carneiro FGV EAESP Sao Paulo School of Business Administration, Brazil
Paul Chiambaretto Montpellier Business School/Ecole Polytechnique, France
Paulo Collaço Universidade Católica Portuguesa, Portugal
Camila Costa BNDES – Brazilian Development Bank, Brazil
Filip De Beule University of Leuven, Belgium
Bruno Barreto de Góes University of New Haven, USA
Shyla Del-Aguila-Arcentales Escuela Nacional de Marina Mercante “Almirante Miguel Grau” and Universidad Nacional de la Amazonia Peruana, Perú
Timothy M. Devinney University of Manchester, UK
Noémie Dominguez University of Lyon, France
Paulo Duarte Universidade da Beira Interior, Portugal
Jonas Eduardsen Aalborg University, Denmark
Frank Elter NHH Norwegian School of Economics, Norway
Juliane Engsig Toulouse Business School, France
José Mauricio Galli Geleilate University of Massachusetts – Lowell, USA
Rafael Goldszmidt FGV EBAPE Brazilian School of Public and Business Administration, Brazil
Miguel González-Loureiro University of Vigo, Spain and Politécnico do Porto, Portugal
Paul Gooderham NHH Norwegian School of Economics, Norway
Mauro F. Guillén University of Pennsylvania, USA
Christopher A. Hartwell Bournemouth University, UK and Akademia Leona Koźmińskiego, Poland
Virginia Hernández Universidad Carlos III de Madrid, Spain
Edith Ipsmiller Vienna University of Economics and Business, Austria
Peter D. Ørberg Jensen Copenhagen Business School, Denmark
Guoliang Frank Jiang Carleton University, Canada
Geoffrey Jones Harvard Business School, USA
Andrew Jones City University of London, UK
Anna Karhu University of Turku, Finland
Stephen J. Kobrin University of Pennsylvania, USA
Masaaki Kotabe Temple University, USA
Donald R. Lessard Massachusetts Institute of Technology, USA
Svetla Marinova Aalborg University, Denmark
Sergio Mariotti Politecnico di Milano, Italy
Carla Martins Universidade Católica Portuguesa, Portugal
Riccardo Marzano Sapienza University of Rome, Italy
Ulrike Mayrhofer Université Côte d’Azur, France
Quyen T. K. Nguyen University of Reading, UK
Bo B. Nielsen University of Sydney, Australia
María Jesús Nieto Universidad Carlos III de Madrid, Spain
Elina Pelto University of Turku, Finland
Andry Ramaroson Centre Universitaire de Mayotte, France
Alicia Rodríguez Universidad Carlos III de Madrid, Spain
Elizabeth L. Rose University of Leeds, UK and Indian Institute of Management Udaipur, India
Michael A. Sartor Queen’s University, Canada
Susana C. Silva Universidade Católica Portuguesa, Portugal
T. Diana Macedo-Soares Pontifical Catholic University of Rio de Janeiro, Brazil
Inger G. Stensaker NHH Norwegian School of Economics, Norway
Patrik Ström University of Gothenburg, Sweden and Stockholm School of Economics, Sweden
Irina Surdu The University of Warwick, UK
Rob van Tulder Erasmus University, the Netherlands
Alain Verbeke University of Reading, UK; Vrije Universiteit Brussel, Belgium; and University of Calgary, Canada
Božidar Vlačić Universidade Católica Portuguesa, Portugal
Marcus Wagner University of Augsburg, Germany
Yingqi Wei University of Leeds, UK
D. Eleanor Westney Massachusetts Institute of Technology, USA

D. Eleanor Westney: A Biography

Elizabeth L. Rose

This volume is in honor of Professor D. Eleanor Westney, who is Sloan Fellows Professor of Strategy and International Management Emerita at MIT Sloan School of Management (U.S.) and Professor Emerita at York University (Canada), where she was the Scotiabank Professor of International Business and Professor of Organization Studies at the Schulich School of Business at York University (Canada) from 2007 to 2014. It is my pleasure to provide a brief introduction to a scholar who is widely respected – and widely beloved – with in the International Business (IB) community.

Like so many of the key contributors to IB, Eleanor entered the field as something of an “academic immigrant”. An organizational sociologist who had combined Sociology with Japanese Studies throughout her undergraduate, masters, and doctoral programs, she found that her knowledge of Japan provided a natural segue into IB in the early 1980s, at a time when academic and managerial interest in the success of Japanese multinational enterprises (MNEs), especially relative to U.S.-based companies, was very strong. Her sociological research on how Japanese organizations emulated western models in the Meiji period provided a useful base for addressing how western companies might then learn from Japan. She has gone on to make deep and lasting contributions to her adopted field, bringing a sociological perspective to various aspects of cross-border organizational learning, including the internationalization of research and development activities, with an emphasis on the evolutionary and institutional theoretical lenses for studying the MNE.

Although she has spent most of her adult life in the U.S., Eleanor is proudly and resolutely Canadian. She was raised on a dairy farm near Toronto. (This is a fact that I learned during a dinner when she and another person at the table – also with farming experience – were discussing silage. Having grown up in suburban New York, I finally had to ask, sheepishly, what on earth silage was.) She studied at the University of Toronto, earning a BA and an MA in Sociology and Japanese studies. After a stint working at the Canadian pavilion at Expo’70, the World’s Fair in Osaka (she learned Japanese as an undergraduate) she headed to the U.S. – specifically, Princeton University, where she earned a PhD in Sociology. Her first academic position was in the Department of Sociology at Yale University. She then shifted to MIT, which served as her academic home for most of her career, before returning to Canada to join the Schulich School of Business at York University and be closer to her family. She has held visiting appointments at Hitotsubashi University, University of Tokyo, University of Michigan, and Aalto University.

Throughout her career, Eleanor has engaged deeply with the academic community, through a variety of organizations, with a strong focus on helping to develop the next generation of scholars. She served as Chair of the International Management Division of the Academy of Management, and was named the Division’s Eminent Scholar in 2013. She was elected a Fellow of the Academy of International Business (AIB) in 1997, and served as Dean of the AIB Fellows from 2008 to 2011. Among her other honors, Eleanor has been awarded an honorary doctorate from the Stockholm School of Economics.

Eleanor is renowned for her remarkable ability to synthesize apparently disparate lines of discussion; this is informed by the fact that she is a voracious reader with extremely eclectic tastes. She is unfailingly generous with ideas and comments, and has a well-deserved reputation for being able to frame questions in ways that provide stunning clarity to students who are struggling with their research, while simultaneously offering a wealth of ideas for future research that have the potential to drive a full postdoctoral research agenda. I have lost count of the number of times that students have referred to suggestions that Eleanor had made to them years earlier; her impact on young researchers around the world is both vast and deep.

Perhaps the best way in which I can convey the esteem in which I hold Eleanor Westney is to share what I consider to be the best compliment that I have ever received in a professional context – being told that I have done something that reminds a colleague of Eleanor.

On behalf of my co-editors of this volume – Rob van Tulder, Alain Verbeke, and Yingqi Wei – it is a real pleasure to honor Eleanor with Volume 15 of the Progress in International Business Research (PIBR) series. Like the scholars to whom previous PIBR volumes have been dedicated (Danny Van Den Bulcke, Alan Rugman, Lou Wells, Rosalie Tung, Lorraine Eden, and Peter Buckley), Eleanor Westney has made – and she continues to make – an indelible mark on the field of International Business.

Prelims
Introductory Section
Chapter 1: Institutions 2.0: Which Institutions Matter in IB Research?
Part I: The Great New Challenges for IB Research – Essays in Honor of D. Eleanor Westney
Chapter 2: International Business and Multi-level Institutional Change: Looking Back and Facing Forward
Chapter 3: Global Strategic Analysis and Multi-level Institutional Change
Chapter 4: Is a Networked World Economy Sustainable?
Chapter 5: Network Effects and Multi-level Dynamics in the Internationalization of Digital Platforms: A Reflection
Chapter 6: Renewing the Relevance of IB: Can Some History Help?
Part II: Home Country Institutions and International Business
Chapter 7: Managing Around Populism
Chapter 8: Institutions, Corporate Governance, and Internationalization of State-owned Enterprises in a Varieties of Capitalism Framework
Chapter 9: Business Group Affiliation and Export Propensity in New Ventures
Chapter 10: Product and Process Innovations and the Institutional Context of Transition Economies: The Effects of External Knowledge
Part III: Host Country Institutions and International Business
Chapter 11: Corporate Anti-corruption Policy, Investment Motives, and Foreign Location Choice
Chapter 12: Host Government Intervention and FDI Inflow: An Empirical Investigation
Chapter 13: Stakeholder Responses and the Interplay Between MNE Post-entry Behavior and Host Country Informal Institutions
Chapter 14: Old Risks, New Reference Points? An Organizational Learning Perspective into the Foreign Market Exit and Re-entry Behavior of FIRMS
Chapter 15: Intangible Assets of MNE Foreign Subsidiaries: The Role of Internal Financial Resources and Host Country Institution
Chapter 16: How Do SMEs Face Institutional Challenges in China?
Part IV: Multi-Country and Below-country Level Institutions and International Business
Chapter 17: International Services: The Interface Between Service Characteristics, Policy, and Institutions
Chapter 18: Creating a Typology of International Alliances with City-level Distance Measures
Chapter 19: Successful and Unsuccessful Radical Transformation of Multinational Mobile Telephony Companies: The Role of Institutional Context
Chapter 20: A Note on Changing Regulation in International Business: The World Intellectual Property Organization (WIPO) and Artificial Intelligence
Part V: Institutions and Sustainability Strategies
Chapter 21: Environmental Sustainability Strategy and International Performance: A Review of Literature and a Conceptual Model
Chapter 22: Embeddedness and Interactions in New Public Environmental Management Governance: International and Intertemporal Evidence on Voluntary Standards
Chapter 23: Environmental Concerns – Uniting Generations for a Global Cause in Turbulent Times
Chapter 24: The Diffusion of Corporate Sustainability in Global Supply Networks: An Empirical Examination of the Global Automotive Industry
Index