Emerging Markets Notes
Indholdsfortegnelse
SECTION A: INTRODUCTION AND THEORY ..........................................................................................................5
1. AN INTRODUCTION TO THE COURSE EMERGING MARKETS .....................................................................................5
LITTERATURE .................................................................................................. FEJL! BOGMÆRKE ER IKKE DEFINERET.
About Institutions and Emerging Markets - Arnoldi ..................................................................................................5
Peng, Sun, Pinkman & Chen 2009. The Institution-Based View as a Third ............................................................11
Leg for a Strategy Tripod..........................................................................................................................................11
SLIDES ............................................................................................................................................................................14
2 – INSTITUTIONS AND ORGANIZATIONS .........................................................................................................................17
LITERATURE ...................................................................................................................................................................17
Institutions, institutional change and economic performance. Douglass C. North 1990.........................................17
SLIDES ............................................................................................................................................................................18
3 - INSTITUTIONAL VOIDS AND TRANSITIONAL ECONOMIES ............................................................................................22
LITERATURE ...................................................................................................................................................................22
International business responses to institutional voids Doh, J., Rodrigues, S., Saka-Helmhout, A. et al. ...............22
Khanna, T., & Palepu, K. G. (2010). Winning in emerging markets: A road map for strategy and execution.
Boston, Mass.: Harvard Business Press. pp. 1-50....................................................................................................25
SLIDES ............................................................................................................................................................................28
4 - TRANSACTIONS COST AND THEIR LINK TO INSTITUTIONS ..........................................................................................31
LITERATURE ...................................................................................................................................................................31
Williamson, O.E. 1991. "Comparative Economic Organization: The Analysis of Discrete Structural Alternatives."
Administrative Science Quarterly, vol. 36, pp. 269-296. ..........................................................................................31
Williamson, O.E The Economics of Organization: The transaction cost approach. American Journal of Sociology.
87(3): 548-577 (focus on pages 552-560). ...............................................................................................................32
SLIDES ............................................................................................................................................................................33
5 - AGENCY COSTS, CORPORATE GOVERNANCE AND THEIR LINK TO INSTITUTIONS ........................................................39
LITERATURE ...................................................................................................................................................................39
Young, M. N., Peng, M. W., Ahlstrom, D., Bruton, G. D. & Jiang, Y. 2008. Corporate Governance in Emerging
Economies: A Review of the Principal–Principal Perspective. Journal of Management Studies, 45 (1): 196-220.39
SLIDES ............................................................................................................................................................................41
6 - VARIETIES OF CAPITALISM AND STATE CAPITALISM: DISTINCTIVE FEATURES OF EMERGING MARKETS..................49
Side 1 af 208
, LITERATURE ...................................................................................................................................................................49
Hall, Peter A., David Soskice. 2001. Varieties of Capitalism. Oxford: Oxford Univ. Press p. 6- 17. .....................49
SLIDES ............................................................................................................................................................................50
7 - INSTITUTIONAL PROTECTION AND THE ECONOMY + CASE SEMINAR .........................................................................56
LITERATURE ...................................................................................................................................................................56
Allen, F., Qian, J., & Qian, M. (2005). Law, finance, and economic growth in China. Journal of Financial
Economics, 77, 57-116..............................................................................................................................................56
SLIDES ............................................................................................................................................................................61
SECTION B: CORPORATE GOVERNANCE IN EMERGING MARKETS ..........................................................66
8 - CORPORATE GOVERNANCE REFORMS IN EMERGING MARKETS ..................................................................................66
LITERATURE ...................................................................................................................................................................66
Chen, V., et al. (2011) 'Are OECD-prescribed 'good corporate governance practices' really good in an emerging
economy?,' Asia Pacific Journal of Management 28(1):115-138. ...........................................................................66
Mutlu, C. C., Van Essen, M. , Peng, M. W., Saleh, S. F. and Duran, P. (2018), Corporate Governance in China: A
Meta-Analysis. Jour. of Manage. Stud., 55: 943-979. doi:10.1111/joms.12331 ......................................................71
SLIDES ............................................................................................................................................................................73
9 - FAMILY OWNERSHIP ..................................................................................................................................................79
LITERATURE ...................................................................................................................................................................79
Bhaumik, S. K. and A. Gregoriou (2010). "'Family' Ownership, Tunnelling and Earnings Management: A Review
of the Literature." Journal of Economic Surveys 24(4): 705-730. ...........................................................................79
SLIDES ............................................................................................................................................................................80
10 - BUSINESS GROUPS IN EMERGING MARKETS .............................................................................................................86
LITERATURE ...................................................................................................................................................................86
Carney, M., et al. (2011). "Business Groups Affiliation, Performance, Context and Strategy: A Meta Analysis."
Academy of Management Journal 54(3): 437-460. ..................................................................................................86
SLIDES ............................................................................................................................................................................87
11 – SOCIAL CAPITAL, SOCIAL TIES AND EMERGING MARKETS .......................................................................................93
LITERATURE ...................................................................................................................................................................93
Wioannsg, C. L. & Chung, H. F. 2013. The moderating role of managerial ties in market orientation and
innovation: An Asian perspective. Journal of Business Research, 66 (12): 2431-2437. .........................................93
SLIDES ............................................................................................................................................................................95
12 - SUMMATION OF FIRST HALF OF THE COURSE AND CASE SEMINAR .........................................................................101
SECTION C: EMERGING MARKET FIRM STRATEGY .....................................................................................103
13 - APPLYING OUR THEORETICAL LENS: AFRICA ........................................................................................................103
LITERATURE .................................................................................................................................................................103
ZOOGAH DB, PENG MW, WOLDU H. Institutions, Resources, and Organizational Effectiveness in Africa.
Academy of Management Perspectives . 2015;29(1):7-31. ....................................................................................103
Side 2 af 208
, doi:10.5465/amp.2012.0033. ..................................................................................................................................103
SLIDES ..........................................................................................................................................................................105
14 - INTERNATIONALIZATION OF EMERGING MARKET FIRMS ........................................................................................109
LITERATURE .................................................................................................................................................................109
Meyer, K. E. (2015). What is “strategic asset seeking FDI”? The Multinational Business Review, 23(1), 57-66.
Deng, P. (2012) ‘The Internationalization of Chinese firms: A Critical ................................................................109
SLIDES ..........................................................................................................................................................................112
15 - ACQUISITIONS AND DIVERSIFICATION ...................................................................................................................117
LITERATURE .................................................................................................................................................................117
Du, J., Lu, Y., & Tao, Z. (2015). Government expropriation and Chinese-style firm diversification. Journal of
Comparative Economics, 43(1), 155-169 ...............................................................................................................117
SLIDES ..........................................................................................................................................................................118
16 - INNOVATION IN EMERGING MARKETS ....................................................................................................................122
LITERATURE .................................................................................................................................................................122
Komera, Surenderrao, PJ Jijo Lukose, and Subash Sasidharan. "Does business group affiliation encourage R&D
activities? Evidence from India." Asia Pacific Journal of Management 35.4 (2018): 887-917. ...........................122
SLIDES ..........................................................................................................................................................................124
SECTION D: MNCS IN EMERGING MARKETS ....................................................................................................128
17 - ENTRY MODE CHOICE ............................................................................................................................................128
LITERATURE .................................................................................................................................................................128
Meyer, K. E., Estrin, S., Bhaumik, S. K., and Peng, M.W. (2009) Institutions, resources, and entry strategies in
emerging economies. Strategic Management Journal, 30(1): 61–80. ....................................................................128
SLIDES ..........................................................................................................................................................................131
18 - PARTNER CHOICE...................................................................................................................................................137
LITERATURE .................................................................................................................................................................137
Shah, R. H., and Swaminathan, V. (2008) Factors influencing partner selection in strategic alliances: The
moderating role of alliance context. Strategic Management Journal 29: 471- 494...............................................137
SLIDES ..........................................................................................................................................................................140
19 - LOCATION CHOICE .................................................................................................................................................148
LITERATURE .................................................................................................................................................................148
Du, J., Lu, Y., and Tao, Z. (2008) FDI location choice: Agglomoration vs. institutions. International Journal of
Finance and Economics, 13(1): 92–107. ................................................................................................................148
Tan, D. and Meyer, K. E. (2011) Country-of-origin and industry FDI agglomeration of foreign investors in an
emerging economy. Journal of International Business Studies, 42: 504–520........................................................148
SLIDES ..........................................................................................................................................................................149
20 - AFTER THE ENTRY: COMPETING IN THE LONG TERM ..............................................................................................154
LITERATURE .................................................................................................................................................................154
Side 3 af 208
, Y. Luo (2007) From foreign investors to strategic insiders: Shifting parameters, prescriptions and paradigms for
MNCs in China, Journal of World Business, 42: 14–34. .......................................................................................154
SLIDES ..........................................................................................................................................................................155
21 - COORDINATION ACROSS EMERGING MARKET SUBSIDIARIES..................................................................................161
LITERATURE .................................................................................................................................................................161
Verbeke, A. & Yuan, W. (2005). Subsidiary Autonomous Activities in Multinational Enterprises: A Transaction
Cost perspective. Management International Review , 45(2), 2005, pp. 31-52 .....................................................161
PANASONIC CASE ................................................................................................................................................162
SLIDES ..........................................................................................................................................................................163
22 - BUSINESS-GOVERNMENT RELATIONSHIPS .............................................................................................................169
LITERATURE .................................................................................................................................................................169
Hillman, A. J. and Hitt, M. A. (1999). Corporate Political Strategy Formulation: A Model of Approach,
Participation, and Strategy Decisions. The Academy of Management Review, 24(4): 825-842. ..........................169
SLIDES ..........................................................................................................................................................................170
23 - FOREIGN FIRM STRATEGIES FOR DEALING WITH POLITICAL RISK ...........................................................................176
LITERATURE .................................................................................................................................................................176
Puck, J. F., Rogers, H., and Mohr, A. T. (2013) Flying under the radar: Foreign firm visibility and the efficacy of
political strategies in emerging economies. International Business Review, 22: 1021–1033. ..............................176
SLIDES ..........................................................................................................................................................................177
24 - WHAT HAPPENS AFTER EMERGENCE? ....................................................................................................................183
LITERATURE .................................................................................................................................................................183
Bruton, Garry D., David Ahlstrom, and Juanyi Chen. "China has emerged as an aspirant economy." Asia Pacific
Journal of Management (2019): 1-15. ....................................................................................................................183
Harrison, Richard, et al. "Beyond institutional voids and the middle-income trap: The emerging business angel
market in Malaysia." Asia Pacific Journal of Management 35.4 (2018): 965-991. ..............................................183
SLIDES ..........................................................................................................................................................................184
EARLIER EXAMS ........................................................................................................................................................191
Side 4 af 208
Indholdsfortegnelse
SECTION A: INTRODUCTION AND THEORY ..........................................................................................................5
1. AN INTRODUCTION TO THE COURSE EMERGING MARKETS .....................................................................................5
LITTERATURE .................................................................................................. FEJL! BOGMÆRKE ER IKKE DEFINERET.
About Institutions and Emerging Markets - Arnoldi ..................................................................................................5
Peng, Sun, Pinkman & Chen 2009. The Institution-Based View as a Third ............................................................11
Leg for a Strategy Tripod..........................................................................................................................................11
SLIDES ............................................................................................................................................................................14
2 – INSTITUTIONS AND ORGANIZATIONS .........................................................................................................................17
LITERATURE ...................................................................................................................................................................17
Institutions, institutional change and economic performance. Douglass C. North 1990.........................................17
SLIDES ............................................................................................................................................................................18
3 - INSTITUTIONAL VOIDS AND TRANSITIONAL ECONOMIES ............................................................................................22
LITERATURE ...................................................................................................................................................................22
International business responses to institutional voids Doh, J., Rodrigues, S., Saka-Helmhout, A. et al. ...............22
Khanna, T., & Palepu, K. G. (2010). Winning in emerging markets: A road map for strategy and execution.
Boston, Mass.: Harvard Business Press. pp. 1-50....................................................................................................25
SLIDES ............................................................................................................................................................................28
4 - TRANSACTIONS COST AND THEIR LINK TO INSTITUTIONS ..........................................................................................31
LITERATURE ...................................................................................................................................................................31
Williamson, O.E. 1991. "Comparative Economic Organization: The Analysis of Discrete Structural Alternatives."
Administrative Science Quarterly, vol. 36, pp. 269-296. ..........................................................................................31
Williamson, O.E The Economics of Organization: The transaction cost approach. American Journal of Sociology.
87(3): 548-577 (focus on pages 552-560). ...............................................................................................................32
SLIDES ............................................................................................................................................................................33
5 - AGENCY COSTS, CORPORATE GOVERNANCE AND THEIR LINK TO INSTITUTIONS ........................................................39
LITERATURE ...................................................................................................................................................................39
Young, M. N., Peng, M. W., Ahlstrom, D., Bruton, G. D. & Jiang, Y. 2008. Corporate Governance in Emerging
Economies: A Review of the Principal–Principal Perspective. Journal of Management Studies, 45 (1): 196-220.39
SLIDES ............................................................................................................................................................................41
6 - VARIETIES OF CAPITALISM AND STATE CAPITALISM: DISTINCTIVE FEATURES OF EMERGING MARKETS..................49
Side 1 af 208
, LITERATURE ...................................................................................................................................................................49
Hall, Peter A., David Soskice. 2001. Varieties of Capitalism. Oxford: Oxford Univ. Press p. 6- 17. .....................49
SLIDES ............................................................................................................................................................................50
7 - INSTITUTIONAL PROTECTION AND THE ECONOMY + CASE SEMINAR .........................................................................56
LITERATURE ...................................................................................................................................................................56
Allen, F., Qian, J., & Qian, M. (2005). Law, finance, and economic growth in China. Journal of Financial
Economics, 77, 57-116..............................................................................................................................................56
SLIDES ............................................................................................................................................................................61
SECTION B: CORPORATE GOVERNANCE IN EMERGING MARKETS ..........................................................66
8 - CORPORATE GOVERNANCE REFORMS IN EMERGING MARKETS ..................................................................................66
LITERATURE ...................................................................................................................................................................66
Chen, V., et al. (2011) 'Are OECD-prescribed 'good corporate governance practices' really good in an emerging
economy?,' Asia Pacific Journal of Management 28(1):115-138. ...........................................................................66
Mutlu, C. C., Van Essen, M. , Peng, M. W., Saleh, S. F. and Duran, P. (2018), Corporate Governance in China: A
Meta-Analysis. Jour. of Manage. Stud., 55: 943-979. doi:10.1111/joms.12331 ......................................................71
SLIDES ............................................................................................................................................................................73
9 - FAMILY OWNERSHIP ..................................................................................................................................................79
LITERATURE ...................................................................................................................................................................79
Bhaumik, S. K. and A. Gregoriou (2010). "'Family' Ownership, Tunnelling and Earnings Management: A Review
of the Literature." Journal of Economic Surveys 24(4): 705-730. ...........................................................................79
SLIDES ............................................................................................................................................................................80
10 - BUSINESS GROUPS IN EMERGING MARKETS .............................................................................................................86
LITERATURE ...................................................................................................................................................................86
Carney, M., et al. (2011). "Business Groups Affiliation, Performance, Context and Strategy: A Meta Analysis."
Academy of Management Journal 54(3): 437-460. ..................................................................................................86
SLIDES ............................................................................................................................................................................87
11 – SOCIAL CAPITAL, SOCIAL TIES AND EMERGING MARKETS .......................................................................................93
LITERATURE ...................................................................................................................................................................93
Wioannsg, C. L. & Chung, H. F. 2013. The moderating role of managerial ties in market orientation and
innovation: An Asian perspective. Journal of Business Research, 66 (12): 2431-2437. .........................................93
SLIDES ............................................................................................................................................................................95
12 - SUMMATION OF FIRST HALF OF THE COURSE AND CASE SEMINAR .........................................................................101
SECTION C: EMERGING MARKET FIRM STRATEGY .....................................................................................103
13 - APPLYING OUR THEORETICAL LENS: AFRICA ........................................................................................................103
LITERATURE .................................................................................................................................................................103
ZOOGAH DB, PENG MW, WOLDU H. Institutions, Resources, and Organizational Effectiveness in Africa.
Academy of Management Perspectives . 2015;29(1):7-31. ....................................................................................103
Side 2 af 208
, doi:10.5465/amp.2012.0033. ..................................................................................................................................103
SLIDES ..........................................................................................................................................................................105
14 - INTERNATIONALIZATION OF EMERGING MARKET FIRMS ........................................................................................109
LITERATURE .................................................................................................................................................................109
Meyer, K. E. (2015). What is “strategic asset seeking FDI”? The Multinational Business Review, 23(1), 57-66.
Deng, P. (2012) ‘The Internationalization of Chinese firms: A Critical ................................................................109
SLIDES ..........................................................................................................................................................................112
15 - ACQUISITIONS AND DIVERSIFICATION ...................................................................................................................117
LITERATURE .................................................................................................................................................................117
Du, J., Lu, Y., & Tao, Z. (2015). Government expropriation and Chinese-style firm diversification. Journal of
Comparative Economics, 43(1), 155-169 ...............................................................................................................117
SLIDES ..........................................................................................................................................................................118
16 - INNOVATION IN EMERGING MARKETS ....................................................................................................................122
LITERATURE .................................................................................................................................................................122
Komera, Surenderrao, PJ Jijo Lukose, and Subash Sasidharan. "Does business group affiliation encourage R&D
activities? Evidence from India." Asia Pacific Journal of Management 35.4 (2018): 887-917. ...........................122
SLIDES ..........................................................................................................................................................................124
SECTION D: MNCS IN EMERGING MARKETS ....................................................................................................128
17 - ENTRY MODE CHOICE ............................................................................................................................................128
LITERATURE .................................................................................................................................................................128
Meyer, K. E., Estrin, S., Bhaumik, S. K., and Peng, M.W. (2009) Institutions, resources, and entry strategies in
emerging economies. Strategic Management Journal, 30(1): 61–80. ....................................................................128
SLIDES ..........................................................................................................................................................................131
18 - PARTNER CHOICE...................................................................................................................................................137
LITERATURE .................................................................................................................................................................137
Shah, R. H., and Swaminathan, V. (2008) Factors influencing partner selection in strategic alliances: The
moderating role of alliance context. Strategic Management Journal 29: 471- 494...............................................137
SLIDES ..........................................................................................................................................................................140
19 - LOCATION CHOICE .................................................................................................................................................148
LITERATURE .................................................................................................................................................................148
Du, J., Lu, Y., and Tao, Z. (2008) FDI location choice: Agglomoration vs. institutions. International Journal of
Finance and Economics, 13(1): 92–107. ................................................................................................................148
Tan, D. and Meyer, K. E. (2011) Country-of-origin and industry FDI agglomeration of foreign investors in an
emerging economy. Journal of International Business Studies, 42: 504–520........................................................148
SLIDES ..........................................................................................................................................................................149
20 - AFTER THE ENTRY: COMPETING IN THE LONG TERM ..............................................................................................154
LITERATURE .................................................................................................................................................................154
Side 3 af 208
, Y. Luo (2007) From foreign investors to strategic insiders: Shifting parameters, prescriptions and paradigms for
MNCs in China, Journal of World Business, 42: 14–34. .......................................................................................154
SLIDES ..........................................................................................................................................................................155
21 - COORDINATION ACROSS EMERGING MARKET SUBSIDIARIES..................................................................................161
LITERATURE .................................................................................................................................................................161
Verbeke, A. & Yuan, W. (2005). Subsidiary Autonomous Activities in Multinational Enterprises: A Transaction
Cost perspective. Management International Review , 45(2), 2005, pp. 31-52 .....................................................161
PANASONIC CASE ................................................................................................................................................162
SLIDES ..........................................................................................................................................................................163
22 - BUSINESS-GOVERNMENT RELATIONSHIPS .............................................................................................................169
LITERATURE .................................................................................................................................................................169
Hillman, A. J. and Hitt, M. A. (1999). Corporate Political Strategy Formulation: A Model of Approach,
Participation, and Strategy Decisions. The Academy of Management Review, 24(4): 825-842. ..........................169
SLIDES ..........................................................................................................................................................................170
23 - FOREIGN FIRM STRATEGIES FOR DEALING WITH POLITICAL RISK ...........................................................................176
LITERATURE .................................................................................................................................................................176
Puck, J. F., Rogers, H., and Mohr, A. T. (2013) Flying under the radar: Foreign firm visibility and the efficacy of
political strategies in emerging economies. International Business Review, 22: 1021–1033. ..............................176
SLIDES ..........................................................................................................................................................................177
24 - WHAT HAPPENS AFTER EMERGENCE? ....................................................................................................................183
LITERATURE .................................................................................................................................................................183
Bruton, Garry D., David Ahlstrom, and Juanyi Chen. "China has emerged as an aspirant economy." Asia Pacific
Journal of Management (2019): 1-15. ....................................................................................................................183
Harrison, Richard, et al. "Beyond institutional voids and the middle-income trap: The emerging business angel
market in Malaysia." Asia Pacific Journal of Management 35.4 (2018): 965-991. ..............................................183
SLIDES ..........................................................................................................................................................................184
EARLIER EXAMS ........................................................................................................................................................191
Side 4 af 208
