Preet S Aulakh

York University · Schulich School of Business

We write this retrospective piece on our article, “Trust and Performance in Cross-Border Marketing Relationships: A Behavioral Approach,” (Aulakh et al. 1996; hereafter, referred to as the ‘1996 Trust Paper’) after more than twenty-five years since its publication in the Journal of International Business Studies Special Issue on cooperative strateg...

Existing research on international partnerships focuses primarily on the ex ante structuring of interorganizational relationships. This study departs from this research by taking a behavioral approach to understand the ex post maintenance of cross-border marketing partnerships. A conceptual model is developed by identifying the antecedents of trust...

Suchetana Chattopadhyay, Voices of Komagata Maru: Imperial Surveillance and Workers from Punjab in Bengal. New Delhi: Tulika Books, 2018, 178 pp.

This article investigates the journey of the Komagata Maru in 1914, and the multiple exclusions of its primarily Sikh passengers from various colonial jurisdictions, through the lenses of global and local legitimacy contestations across the British Empire at the beginning of the twentieth century. The paradox of its subjects’ mobility (i.e. accommo...

This paper investigates the role of pluralistic ignorance as a credible governance mechanism mitigating the emergence of the dark side in peer-to-peer transactions. Using the empirical context of the Indian banking industry, this paper identifies three underlying dimensions of pluralistic ignorance arising from firm, relationship, and institutional...

Mobilities of Labour and Capital in Asia - edited by Preet S. Aulakh January 2020

The objective of this paper is to examine the representation of shifting legalities in Amitav Ghosh’s novel Sea of Poppies within the context of emerging legal regimes in early nineteenth-century British India. I argue that the novel makes two important interventions in the corpus of research interested in intersections of colonial histories and th...

Business groups emerged in developing economies through direct or indirect support from the state in order to overcome a variety of institutional voids and/or to further state objectives of economic growth. However, the efficacy of this organizational form and its associated governance structures have been debated given the dual possibility of busi...

We assess the theoretical underpinnings and associated empirical findings of the three-stage sigmoid–curve relationship between degree of internationalization (DOI) and performance by re-examining the results reported in one of the prominent studies in the literature. We further conduct our own analyses of 23,474 observations of 2,620 US manufactur...

Research Summary In this article, we examine the influence of owner CEOs’ motivations and authority on strategic risk‐taking behavior of firms as reflected by their investments in foreign markets. We theorize that owner CEOs, aided by their strategic leadership, long‐term orientation, and less‐restricted decision‐making powers, will facilitate thei...

Since its independence in 1947, India has undertaken several different paths towards economic development and growth. These paths have evolved due to the unique internal political-economic context emanating from a history of colonization and the external pressures arising from global institutional and economic considerations. The need to accommodat...

This paper investigates whether and when affiliation to business groups enables or constrains firms' international search behavior during institutional transitions. We theorize that given the unique structure and complex form of business group organizations, the search behavior of affiliated firms is influenced by the degree of (mis)alignment in ou...

We examine the role of internationally acquired knowledge and supra-firm institutional infrastructure on developing firms' innovation orientation. Empirical results, based on a panel of 11,048 Indian manufacturing firms during the period 1990 to 2009, show that the macro- and micro-institutional context in which firms are embedded condition the eff...

Overseas acquisitions as a mode of international expansion entail a high level of risk, especially for firms from emerging economies which face considerable liabilities of foreignness and newness in international markets. Building on the behavioral risk-taking perspective, we examine the role of ownership characteristics on the propensity of Indian...

In this paper, we study the effects of deinstitutionalization and examine how institutions at multiple levels interact with one another in influencing firm-level outcomes. Our empirical context is the global textile industry. The global trade in textiles was governed by Multi-Fibre Agreement (MFA) since 1974, which provided for bilaterally negotiat...

In an era of global competition, there is a growing interest within the strategy field to study how the institutional environments influence firm strategies and competitive advantage. In this paper, we further this research by examining how institutional stimulus through a government program (Technology Upgradation Funds Scheme (TUFS)) influenced t...

This study examines the relationship between power dependence and practice standardization in the context of cross-border alliances. Existing studies have typically assumed that standardization or adaptation is a unilateral decision made by multinational corporations (MNCs) but ignored the influence of the relative power of multinational and local...

The relationship between contractual and relational arrangements in interorganizational relationships has been subject to an ongoing debate. We propose that in the context of cross-border partnerships, the governance mechanisms can be both substitutes and complements depending upon contingencies posed by uncertainties of two different origins: envi...

We reassess the theoretical underpinnings and associated empirical findings of the three-staged sigmoid-curve relationship between the degree of internationalization (DOI) and performance. Our empirical results, based on 20,186 observations of 2,159 US manufacturing firms over the period 1980-2008 and a re-examination of the findings reported in on...

We examine the performance persistence of business group affiliates in the two largest emerging economies in the world by applying the resource-based view in a comparative institutional setting. We argue that although business group affiliation enhances performance persistence, the effects of this affiliation are moderated by the institutional envi...

Although interorganizational licensing is increasingly being used as a strategic tool to compete in global markets, achieving these strategic objectives depends on the effective transfer of tacit managerial knowledge to foreign licensees. Using resource dependence theory, we test a model of managerial knowledge transfer in cross-border licensing ag...

Granting of exclusive rights is an important consideration for firms using licensing as a mode of entry into foreign markets, as exclusive contracts reduce licensors’ flexibility in a given market during the term of the agreement. By granting exclusivity to a licensee with greater technological potential, the exchange partners can increase the pote...

Interfirm relationships among partners from institutionally distant environments are subject to governance difficulties, owing to the paucity of shared cognitive and regulatory frameworks. We examine the potential of formal contracting and relational governance developed at the partnership level to overcome the formal and informal institutional gap...

As firms increasingly use licensing to exploit knowledge-based assets in global technology markets, appropriate structuring of these agreements has become an important line of research inquiry. One area that has received less attention is the nature of rights granted in inter-firm licensing relationships, although it is an important clause that has...

While overseas acquisitions by emerging-economy firms are gaining increased attention from the business press, our understanding of whether and why this inorganic mode of international expansion creates value to acquirer firms is limited. We argue that international acquisitions facilitate internalization of tangible and intangible resources that a...

The article presents a discussion of the costs and benefits of affiliation of business firms to business groups (BGs). Research examining the role of BGs on the internationalization of affiliate firms and the effects of the affiliates' internal resources and position in the domestic market is presented. The author reports that through the use of a...

This paper develops a multidimensional, process-based conceptualization of alliance portfolio management capability. Arguing that such a capability consists of organizational processes to proactively pursue alliance formation opportunities, engage in relational governance, and coordinate knowledge and strategies across the portfolio, we examine the...

Licensing can be considered an initial trial of a foreign market before a firm fully commits to it through other investment modes. The length of trial has great importance, because licensing duration represents part of the licensing agreement. When it is too short, the firm may not acquire the necessary experience and knowledge of the foreign marke...

This article investigates how Indian pharmaceutical firms, facing discontinuous institutional changes in their domestic environment due to economic liberalization and intellectual property reforms, have undertaken organizational transformation. Internationalization of resources and product markets constitutes an important component of organizationa...

This paper examines the strategic response of the Indian pharmaceutical industry to the dual institutional changes arising from economic liberalization of the Indian economy and the WTO mandated intellectual property regime. An analysis of the relative position and growth of Indian firms vis-à-vis foreign multinationals, changes in the resources an...

An important component of globalization during the last two decades is the increased participation of developing economies in the global economy both as markets for goods and services as well as production sites. Institutional changes emanating from evolving political landscapes within individual countries and pressures from supra-national bodies h...

Exporting relationships between manufacturers and foreign importers pose unique coordination problems because, on the one hand, transactions are recurrent and both firms make non-trivial relationship-specific investments, but at the same time, the exchange partners maintain separate legal entities with individual profit claims. This study examines...

This paper investigates the factors leading to multinationality of Indian information technology services firms, despite an institutional environment characterized by low resource munificence. The paper proposes that business group and internationalization of resource-bases serve as two unique mechanisms to overcome the internationalization barrier...

Existing research on international licensing focuses on firm decisions related to the choice of licensing versus alternative modes of entry into foreign markets, the timing of licensing within the technology life cycle, and appropriate compensation structures to collect rents. This paper complements and extends this stream of research by focusing o...

This study contributes to an understanding of plural forms of governance by integrating research on norms-based and control-based mechanisms in managing interorganizational relationships. The authors develop a model of structural antecedents and performance consequences of these two dis- tinct governance forms. Based on data from 129 relationships...

This paper integrates insights from internalization theory and recent advancements related to internal capital markets to understand the efficiency of markets and hierarchies in explaining financial flows in multinational enterprises (MNEs). In particular, we examine how the efficiency of external capital markets in MNE home countries impact the fi...

This paper investigates the source of heterogeneity in the distribution of alliance capabilities among firms, and relates it to business processes that enable firms to generate collaborative value. Complementing the existing view of dyadic value creation, and the emerging experience and structural perspectives of alliance capabilities, we argue the...

Researchers in international business have long been interested in understanding the relationship between the multinationality of a firm and its market performance. This article contributes to this research stream by incorporating firm heterogeneity in examining the multinationality-performance relationship. The findings, based on a time series cro...

Value creation through alliances requires the simultaneous pursuit of partners with similar characteristics on certain dimensions and different characteristics on other dimensions. Partnering firms need to have different resource and capability profiles yet share similarities in their social institutions. In this article, the authors empirically ex...

This article builds upon and extends previous control research by examining the effect of different control mechanisms on behavioral and economic performance in international principal–agent relationships. To this end, a contingency model is advanced and tested that explores the role governance structure plays in influencing the performance effects...

This article builds upon and extends previous control research by examining the effect of different control mechanisms on behavioral and economic performance in international principal–agent relationships. To this end, a contingency model is advanced and tested that explores the role governance structure plays in influencing the performance effects...

Brazil, Chile, and Mexico constitute the leading newly industrialized countries (NICs) of Latin America. It is within these markets that the world expects significant economic gains over the next decade. Local companies in these countries are allying with foreign companies to enhance their competitive positions, yet little is understood about such...

This study develops a framework for examining the export strategies of firms from emerging economies and their performance in foreign markets, Hypotheses derived from this framework were tested on a sample of firms from Brazil, Chile, and Mexico. Findings suggest that cost-based strategies enhance export performance in developed country markets and...

Most contemporary discourses on globalization are articulated around the increasing role of transnational (or multinational) corporations (TNCs) in overseeing national and cross-national economic activities. Policies and practices of TNCs are linked to neo- or Coca-colonization, homogenization of cultural practices, and the decline of the nation-st...

Contributors from diverse disciplinary, ideological, and theoretical perspectives, examine the multiple aspects and dimensions of globalization. By employing a variety of methodological approaches, the authors provide insights into the role of numerous agents in furthering the process and project of present and future globalization(s), as manifeste...

This paper examines the internationalization process of telecommunication carriers. In this industry, early entrants gain substantial first-mover advantages due to the transient nature of the windows of market opportunity, and the potential to influence the regulatory process as an incumbent. To capture these strategic and economic advantages, firm...

This article proposes that relational bonding, a concept that measures the strength of a collaborative relationship, mediates between ex-ante alliance variables, namely compatibility, role clarity, resource interdependence, and termination costs and collaborative behavioral processes. The authors theorize bonding to be manifest through two underlyi...

This study examines licensing agreements between independent firms based on their compensation structures. We first suggested that a licenser's ability to monitor and influence foreign licensees is related to the type of compensation used in structuring the relationship. Next, we identify a set of factors, related to host country conditions where t...

This study enhances our understanding of channel integration in foreign markets on two fronts. First, the eclectic approach to foreign entry mode, proposed by Hill, Hwang and Kim [1990] and Kim and Hwang [1992], is used to examine transaction-specific, organizational capability and strategic factors that influence channel choices in foreign markets...

Existing studies on global sourcing strategy have implicitly adopted a cJosed-systems perspective in which sourcing activities are managed within a multinational company across national boundaries. Produd and process innovations and components procurement that are jointly managed by a consortium of cooperating firms have not been examined. In this...

Existing research on international partnerships focuses primarily on the ex ante structuring of interorganizational relationships. This study departs from this research by taking a behavioral approach to understand the ex post maintenance of cross-border marketing partnerships. A conceptual model is developed by identifying the antecedents of trust...

In the context of mode of entry into new markets, existing theory tends to identify technology licensing as a step toward or an alternative to wholly owned subsidiaries. However, recent trends in technology licensing indicate that technology licensing is used increasingly as a conscious, proactive component of a technology-based firm's global produ...

In the context of mode of entry into new markets, existing theory tends to identify technology licensing as a step toward or an alternative to wholly owned subsidiaries. However, recent trends in technology licensing indicate that technology licensing is used increasingly as a conscious, proactive component of a technology-based firm's global produ...

This study builds upon previous control research to purpose a model of formal controls used in managing activities performed in foreign markets. Theoretically derived contingency relationships are also proposed to assess the performance consequences of different formal control types. The findings support the importance of internal and external sour...

This study examines the state of the art in international marketing research published in the 1980–90 period, and probes significant changes in the field, both in terms of the substance of research and methodologies employed. A major conclusion of the previous review articles (Albaum and Peterson 1984; Boddewyn 1981; Cavusgil and Nevin 1981) was th...

Thesis (Ph. D.)--University of Texas at Austin, 1995. Vita. Includes bibliographical references (leaves 208-220).