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In the absence of well-developed, formal institutional frameworks, informal network-based strategies have been argued to be especially viable in emerging economies. However, some empirical research has challenged these earlier theoretical arguments. In light of new evidence, this chapter develops a contingency perspective differentiating firms' networks as strong ties and weak ties. It suggests that while strong-tie networks are typically found during the early phase of institutional transitions, weak-tie networks are more likely to be developed and leveraged during the late phase of transitions. The upshot is that as the performance benefits of strong ties decline during institutional transitions, emerging weak ties' impact on firm performance is likely to increase.

The purpose of this paper is to examine an important yet underexplored research question in the literature: What determines the length of contract governing buyer–supplier relationships during market transitions? The length of contract is a solid indicator of the comprehensiveness of a contract. By integrating transaction costs economics, the embeddedness perspective and the institution-based view, the paper develops a model that incorporates specific investments and perceived opportunism, strategies to select suppliers and buyer firms’ confidence in the institutional environment. It further posits how buyer firms’ dependence on suppliers moderates these relationships.

Data were collected nationwide via face-to-face interviews with 328 executives in 164 Chinese firms who shared information pertaining to 774 buyer–supplier contracts. A fine-grained mixed-empirical method was designed to test the proposed hypotheses, to confirm the reliability and to generalize the research findings.

All the proposed factors significantly influence the length of the contract. Results obtained through a moderated mediating model suggest that buyers with supplier-specific investments and that choose market-based selection relative to a relationship-based tend to perceive more opportunism in buyer–supplier relationships, which will lead to shortening the length of the contract. However, the buyer’s perception of opportunism will decrease when buyers perceive higher levels of confidence in their legal institutions.

The study discusses several practical implications for B2B managers who typically involve in interfirm exchanges as well as for emerging economies’ institutions.

Leveraging theoretical insights from transaction cost economics, the institution-based view and buyer–supplier relationships literature, this empirical study adds unique contributions to B2B research in general and emerging economies’ institutional literature in particular.

This study explains the international opportunity development of SMEs from emerging economies during institutional transition. This research enriches our understanding of how these firms adopt different approaches to developing international opportunities when they confront the turbulent institutional environment. We develop a phase-based framework for the evolution of transitional institution for SMEs’ internationalization and the SMEs’ internationalization process in that framework. By providing an empirical case study of a privately owned SME from China, the main finding is that SMEs from emerging economies become more entrepreneurial and proactive in developing the international opportunity during the institutional transition.

This paper points out new directions for the deepening and broadening of the institution-based view, by drawing on three streams of research with which I have been involved recently: (1) outward foreign direct investment from emerging economies, (2) bankruptcy laws and entrepreneurship development, and (3) institution-based research focusing on Africa. Such deepening has been accomplished by enhancing our institution-based understanding of foreign direct investment with a focus on emerging multinationals, while broadening has been done both substantively by probing into the impact of bankruptcy laws on entrepreneurship development around the world and geographically by calling for enhanced research attention on Africa via an institution-based lens.

Drawing on the resource-based view and network theory, the purpose of this paper is to investigate the role of external networks (ENs) and absorptive capacity (AC) in export market location decision of emerging economy firms (EEFs) and the performance implication of this decision.

This study employs structural equation modeling to test three hypotheses: first, ENs influence an EEF manager's propensity to enter culturally/psychically distant markets for exports. Distant markets are more likely to be chosen by managers of firms with abundant ENs. Second, AC moderates this network-market location relationship. Third, superior performance results from the fit between managers’ propensity to enter a market and firms’ levels of ENs and AC.

An analysis of 196 Chinese exporting firms supports the hypotheses.

Though the theoretical discussion is general, the empirical context is specific to Chinese export manufacturers. Replicating the study is necessary in different contexts.

The study identifies to managers the importance of external (i.e. ENs) and internal resources and capabilities (i.e. AC) and linkages between resources and capabilities, strategy and performance.

The study is novel in conceptually addressing the role of ENs and AC in firms’ decision making and performance and in testing hypotheses with robust methodology and data.

The purpose of this paper is to draw from organizational ecology and institutional theory, the authors suggest that there will be a curvilinear relationship between legal system uncertainty and foreign direct investment (FDI) attraction in Southeast Asia. The authors extend theory by arguing that this is because uncertainty will provide opportunities for FDI that seek this form of operating environment, leveraging legal system uncertainty as a basis for competitive advantage.

The authors test and find support for the hypotheses using FDI data from nine Southeast Asian countries for the years 1995-2005.

In this paper, the authors hypothesize and find that the relationship between legal system uncertainty and FDI attraction is curvilinear in nature, such that FDI attraction decreases with legal system uncertainty down to an inflection point, but then increases beyond this point; and that the relationship between legal system uncertainty and FDI attraction is moderated by government intervention in the host country economy, such that the strength of this relationship is greater when government intervention is high rather than when it is low. Implications of the findings and suggestions for future inquiry are presented.

Conventional wisdom suggests that legal system uncertainty will negatively affect FDI attraction. However, to date, research on the effects of legal system uncertainty on FDI attraction in emerging markets has received very little attention. The aim of this research study is to shed new light on how, under certain conditions, legal system uncertainty will attract FDI in Southeast Asia.

This chapter focuses on the influence of the home government on the internationalization of Russian multinational enterprises (MNEs). It views government involvement and political connectedness as a form of informal connections and networks that seriously impact operations in general and internationalization, in particular in the case of Russian multinationals. Using the literature on MNEs from emerging markets and our familiarity with Russian business and political specificities, we develop a set of five propositions devoted to the subject. We further discuss the research and management implications of our analysis.

Firms’ strategic responses to environmental shifts under conditions of uncertainty in the wake of institutional changes are far from understood. We utilize data from over 1,200 firms in seven Central Eurasian transition economies to examine the extent to which institutional inefficiency is predictive of the response strategies employed by the firms in their environments. We also examine how firms maneuver in the environment through an innovative effort in developing new products, opening new plants or upgrading product lines and technologies. Our results seem indicative of both an adaptive and an innovative effort by firms in these countries. The results are discussed with respect to empirical limitations and future research avenues in these transition economies.

This paper aims to investigate the scheduling and loading problems of tow trains for mixed-model assembly lines (MMALs). An in-plant milk-run delivery model has been formulated to minimize total line-side inventory for all stations over the planning horizon by specifying the departure time, parts quantity of each delivery and the destination station.

An immune clonal selection algorithm (ICSA) combined with neighborhood search (NS) and simulated annealing (SA) operators, which is called the NSICSA algorithm, is developed, possessing the global search ability of ICSA, the ability of SA for escaping local optimum and the deep search ability of NS to get better solutions.

The modifications have overcome the deficiency of insufficient local search and deepened the search depth of the original metaheuristic. Meanwhile, good approximate solutions are obtained in small-, medium- and large-scale instances. Furthermore, inventory peaks are in control according to computational results, proving the effectiveness of the mathematical model.

This study works out only if there is no breakdown of tow trains. The current work contributes to the in-plant milk-run delivery scheduling for MMALs, and it can be modified to deal with similar part feeding problems.

The capacity limit of line-side inventory for workstations as well as no stock-outs rules are taken into account, and the scheduling and loading problems are solved satisfactorily for the part distribution of MMALs.

This paper aims to investigate the part feeding scheduling problem with electric vehicles (EVs) for automotive assembly lines. A point-to-point part feeding model has been formulated to minimize the number of EVs and the maximum handling time by specifying the EVs and sequence of all the delivery tasks.

First, a mathematical programming model of point-to-point part feeding scheduling problem (PTPPFSP) with EVs is presented. Because the PTPPFSP is NP-hard, an improved multi-objective cuckoo search (IMCS) algorithm is developed with novel search strategies, possessing the self-adaptive Levy flights, the Gaussian mutation and elite selection strategy to strengthen the algorithm’s optimization performance. In addition, two local search operators are designed for deep optimization. The effectiveness of the IMCS algorithm is verified by dealing with the PTPPFSP in different problem scales.

Numerical experiments are used to demonstrate how the IMCS algorithm serves as an efficient method to solve the PTPPFSP with EVs. The effectiveness and feasibility of the IMCS algorithm are validated by approximate Pareto fronts obtained from the instances of different problem scales. The computational results show that the IMCS algorithm can achieve better performance than the other high-performing algorithms in terms of solution quality, convergence and diversity.

This study is applicable without regard to the breakdown of EVs. The current research contributes to the scheduling of in-plant logistics for automotive assembly lines, and it could be modified to cope with similar part feeding scheduling problems characterized by just-in-time (JIT) delivery.

Both limited electricity capacity and no earliness and tardiness constraints are considered, and the scheduling problem is solved satisfactorily and innovatively for an efficient JIT part feeding with EVs applied to in-plant logistics.