Yadong Luo

Yadong Luo
University of Miami | UM · Department of Management

PhD

About

183
Publications
164,089
Reads
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26,445
Citations
Additional affiliations
August 2000 - present
University of Miami
Position
  • Emery Findley Distinguished Chair and Full Professor
August 2000 - March 2016
University of Miami
Position
  • Professor (Full)

Publications

Publications (183)
Article
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Competing in an era of de-globalization presents new challenges for multinationals, particularly for those from large emerging economies. Emerging market MNEs (EMNEs) in the past benefited from an open, globalizing context that facilitates springboard and compositional strategies. De-globalization makes it significantly harder for them to continue...
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Research Summary This study focuses on three prevalent societal issues—crime, corruption, and informal sector—that constitute the dark side of informal institutions in developing countries. We argue that the dark side of informal institutions has the potential to impede foreign firms' desire and ability to commit to the host countries. The effects...
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Digital global connectivity offers multinational enterprises new opportunities, but it also brings unique risks, an area not yet well examined in international business. This article presents an organizational information-processing framework, which elucidates what (risk types and sources), how (risk assessing and managing), and whom (vulnerable fi...
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International springboard is an entrepreneurial act that requires international entrepreneurial orientation (IEO). An important aspect of international springboard is the establishment of a deeply localized flagship foreign subsidiary to help pursue diverse international strategic goals. We model parent-level IEO as a mediator in the relationships...
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The cultural distance metaphor dominates international management research, promoting a sterile, detached view where static antecedents in the form of artificially constructed differences serve as the dominant lens through which culture is viewed and its impact assessed. We examine culture and its positivist treatment in the foreign direct investme...
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A growing body of research probes into the unique ownership advantages of emerging market MNEs (EMNEs) to uncover the sources of their counterintuitive success, when judged from the perspective of traditional theories in international business. Although research documents that EMNEs expand into spatially distant countries to prompt a global catch-u...
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Developing compositional capability is critical for small-and-medium enterprises to compete in emerging markets. We advance a strategy tripod model embedding compositional capability in three conditions that promote the compositional blend of imitation and innovation. In a sample of 163 SMEs from China, we find that industry-level competitive inten...
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This study reviews research from 1970 through 2016 on developed country multinational enterprises (DMNEs) entering and competing in developing economies. To identify the current state of knowledge of this research and push it further, we review the literature using bibliometric and qualitative content analyses covering leading journals and books. W...
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Organizations face a common intertemporal choice problem, where actions suitable in the short‐term are different from those that work in the long‐term. Building on the organizational ambidexterity theory, we argue that organizations can reconcile their short‐term and long‐term tensions, but this does necessitate managerial endeavors that orchestrat...
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Research summary This study examines the endogenous conditions under which emerging market multinationals (EMNEs) are more risk‐taking in entering and competing abroad. We argue that strategic asset‐seeking intent, financial abundance, and inward internationalization enable EMNEs to better manage uncertainty and capture benefits, resulting in great...
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The springboard view has become one theoretic lens to analyze emerging market multinationals (EMNEs) in the past decade. A decade after its first introduction in 2007, new developments offer keen insights on these firms and MNEs in general that aggressively engage in critical asset-seeking. We compare this view with other IB theories, highlighting...
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By proposing an integrated strategic choice framework, we theorize the distinctive dynamics of international expansion by emerging economy enterprises. Specifically, we explicate how these firms build international presence based on combined strategic entry (i.e., prompted by internal capabilities such as innovation and diversification) and strateg...
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As emerging markets have been playing more and more important roles in the global outsourcing markets, many companies from industrialized countries started to outsource various complex business processes oversea intending to take advantage of talented workforce at low cost. In this study, we focus on the challenging aspects and identify complex rel...
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We study private firm innovation at an advanced stage of institutional transition in Central and Eastern Europe and the Commonwealth of Independent States. We adopt an integrated view, where the institution-based view of strategy is complemented by institutional imprints and entrepreneurial agency to argue that innovation at that stage of transitio...
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Multinational Enterprises create and capture value through appropriate business models that fit both distinctive capabilities and dynamic markets. The key elements of a global business model include propositions for adding customer value and capturing a share of that value, methods to control, deploy and utilize critical resources, and integrated p...
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We present a composition-based logic toward international expansion by emerging market firms (EMFs) – firms that use compositional investment, compositional competition, and compositional collaboration to create a unique competitive advantage in global competition. This view explains how EMFs creatively adopt a composition-based international strat...
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Alleviating poverty in the least developed countries (LDCs) requires raising the income level of local workers. We look at the poor as producers and explore drivers of higher employee wages. We focus on small and medium enterprises (SMEs) because they are a major driver of employment growth and poverty alleviation in these countries. To pay higher...
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This study examines personal ties between boundary-spanning personnel in interorganizational exchanges in emerging markets. Drawing on social embeddedness theory and boundary spanning theory, we propose that strong ties between boundary spanners may benefit exchange parties in their interorganizational relationships through two heightened boundary-...
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The growth of emerging market multinational enterprises (EM MNEs) has enriched existing international business theories but conveyed also new puzzles and questions for these theories and perspectives. To synthesize what we know and what we do not concerning international expansion of EM MNEs, we use the qualitative content analysis method, systemat...
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Purpose This article is a commentary on The “Global Implications of the Indigenous Epistemological System from the East: How to Apply Yin-Yang Balancing to Paradox Management” (Li, 2016), which is a timely and important piece. Li (2016) offers epistemological insights into what Yin-Yang is, why Yin-Yang can serve as a guiding frame of thinking, and...
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Purpose – Contrasting local adaptation, which focusses on foreign multinationals learning about and adapting to local (host country) culture and environment, reverse adaptation refers to the case where an MNE’s local employees learn, assimilate and modify their personal behavior (e.g. values, norms) and professional competence (e.g. standards, goal...
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This article presents a composition-based view (CBV), which explicates the growth of enterprises that compete and develop without the benefit of resource advantages, core technology, or market power. The CBV emphasizes how ordinary firms with ordinary resources may generate extraordinary results through their creative use of open resources and uniq...
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Management scholarship has grown tremendously over the past 60 years. Most of our paradigms originated from North America in the 1950s to the 1980s, inspired by the empirical phenomena and cultural, philosophical, and research traditions of the time. Here following, we highlight the contextual differences between the East and the West in terms of i...
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Building on social exchange theory, we study the role of justice perceptions in curtailing opportunism and, in turn, improving performance and reducing governance cost in buyer–supplier relationships. Our analysis of 225 dyads in the Chinese home appliance industry indicates that distributive justice is negatively linked to strong form opportunism,...
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Issues of ethics, justice, and social responsibility are as fundamental to organizational behavior as they are to society at large. As contracts are forged, individuals employed, and power differentials created, opportunities for exploitation, oppression, and victimization emerge. In contrast, as social structures evolve, coordinated opportunities...
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Building on the co-opetition perspective, this study takes a unified approach to examine relationship benefits and transaction costs in buyer–supplier relationships. We argue that buyer–supplier vertical dyads fall into one of four distinct co-opetition types based on their respective degrees of cooperation and competition. Each co-opetition situat...
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Building on the co-opetition perspective, this study takes a unified approach to examine relationship benefits and transaction costs in buyer–supplier relationships. We argue that buyer–supplier vertical dyads fall into one of four distinct co-opetition types based on their respective degrees of cooperation and competition. Each co-opetition situat...
Chapter
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In the aftermath of the global economic crisis, the pursuit of new perspectives and different growth models is imperative. One of the most significant trends of our time is the rise of Asia in the world economy. After centuries of Western economic dominance, China, India, and the rest of the East, alongside emerging economies more broadly, are begi...
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This article theoretically proposes and empirically verifies an understudied issue in the business ethics (BE) and corporate social responsibility (CSR) literature—how moral degradation (MD) in a society influences the relationship between BE or CSR and firm performance (i.e., corporate legitimacy and competitive advantage). Building on strategic c...
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Current theory on foreign subsidiary autonomy is insufficient to examine a situation where a multinational lacks experience to organize global operations, and yet intends to compete extensively with established multinational enterprises (MNEs) from advanced economies. By building on theoretical perspectives developed for emerging-market multination...
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Business process offshoring (BPO) has emerged as an important strategy and a prevalent landscape in global service operations management. As one of the first attempts to analyze this challenging issue in an emerging market, this study examines how firms develop a set of global expansion strategies, including where (location), when (timing), and wha...
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As emerging markets increasingly rely on service businesses through offshore outsourcing, we examine the role of governance control mechanisms in improving performance among business process outsourcing (BPO) service providers in India. Using data collected from 205 emerging market-based BPO service providers in India, we examine the antecedents an...
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We explore how home country conditions affect outward foreign direct investment (OFDI) strategies (scale, timing, location) employed by developing country multinational corporations (DMNCs). Extending from the springboard and LLL (leverage, linkage, and learning) perspectives, we illustrate that DMNCs rely on their home base during their internaliz...
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This study presents an analysis exploring how four types of justice (distributive, procedural, interpersonal, and informational) influence dyadic relationship performance in the buyer–supplier context. Underpinned by loose coupling theory, we build a mediating framework in which we propose that a high level of justice (or fairness) as mutually perc...
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This study addresses an important issue in designing and managing business process offshoring (BPO): process integration between an offshore service provider and its global BPO client. We applied the information-processing lens in global BPO and developed the logic that internationally disaggregated process integration requires a fit between proces...
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abstractGuanxi, a social network tie drawing on connections in business relations, has been identified as a powerful strategic tool helping organizations maintain competitive advantages and achieve superior performance. However, prior empirical studies on the guanxi–performance link provide indefinite conclusions. The purpose of this study is to sy...
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This study presents a dual strategic intent perspective, elucidating that international venturing by emerging economy private firms is prompted by exploiting firm-specific advantages, as well as circumventing market imperfection residuals embedded in home country economic transformation. Our analysis of 1,355 Chinese private enterprises shows that...
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Special Issue on ‘Behavioral Ethics, Organizational Justice, and Social Responsibility across Contexts’ - Volume 7 Issue 2 - Deborah E. Rupp, Patrick M. Wright, Samuel Aryee, Yadong Luo
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Success in foreign emerging markets is increasingly critical to the global market leadership for many multinational enterprises (MNEs). However, corruption in emerging markets is pervasive and rampant. This study addresses how MNE subunits strategically respond to perceived corruption in the business segment of a foreign emerging market wherein the...
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Emerging economy enterprises nowadays relentlessly scale the value chain in a quest to compete on the world stage in part by copying the products of others. They develop new products and services that are dramatically less expensive than their Western equivalents. In this article we discuss what these copycats are and how they have grown in their u...
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This study identifies variations of contractual and relational control mechanisms used in governing channel relationships and explores how such variations are related to channel cooperation. Building on the loose coupling logic, assuming that control and cooperation coexist in any loosely structured partnership, we develop a taxonomy that illustrat...
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This article introduces a new lens that addresses cultural interaction in global business. Shifting away from viewing culture in terms of its differences, the cultural friction lens captures the nature and magnitude of interaction between the cultural systems engaged in cross-border businesses. In this study we present that (1) cultural distance ma...
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Special Issue on ‘Behavioral Ethics, Organizational Justice, and Social Responsibility across Contexts’ - Volume 7 Issue 1 - Deborah E. Rupp, Patrick M. Wright, Samuel Aryee, Yadong Luo
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As service processes become candidates for outsourcing, interest in the global business process outsourcing (BPO) industry has grown considerably. In this study, drawing on information processing theory, we examine the role of integration in BPO and its effect on BPO firm performance. BPO Integration is concerned with the overall coordination of bu...
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MOR Special Issue Behavioral Ethics, Organizational Justice, and Social Responsibility across Contexts - Volume 6 Issue 3 - Deborah E. Rupp, Patrick M. Wright, Samuel Aryee, Yadong Luo
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Large scale outward foreign direct investment (OFDI) by emerging market enterprises has become common in today's business world. Nested within the political economy perspective, this article elucidates why and how emerging market governments enthusiastically stimulate OFDI. Drawing upon our detailed analysis of the Chinese context, we developed the...
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This research investigates how distributive justice (DJ) affects cooperation-related outcomes in international joint ventures (IJVs) through several routes that intersect with reciprocal commitment, organizational attachment and contractual specification. Grounded in the convergent insights of IJV theory and justice theory, this study argues that D...
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In this article we present an ambidexterity perspective on the international expansion of emerging economy enterprises, highlighting the unique strategic behavior of emerging market multinational enterprises (EM MNEs). Specifically, we conceptualize ambidexterity as a multidimensional term comprising co-evolution, co-competence, co-opetition, and c...
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This study explores how relationship-specific investment (RSI) enhances interfirm cooperation in buyer-supplier partnerships in an emerging market. Building upon the logic of economic sociology, we argue that the contribution of RSI to the success in buyer-supplier partnerships will be mediated by reduced opportunism and reduced conflict and by hei...
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This study examines the organizational and personal level conditions under which boundary spanners in an international joint venture (IJV) tend to disagree with each other regarding procedural justice. Nested within the logic of boundary spanning and building on the integrated justice theory and joint venture theory, this study develops an overarch...
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This article addresses how foreign subsidiaries formulate their relational political strategy by responding to the unique parameters of the economic and institutional environment in an emerging market in an attempt to improve their performance. To this end, the authors have developed a model that assesses economic environment antecedents characteri...
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Building on economic and social exchange theories, this study investigates the different roles transactional and relational mechanisms have in hindering opportunism and improving relationship performance in an emerging economy. Our study applied to manufacturer–distributor dyads in China and used matched survey data (225 paired sample firms) to tes...
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In this study we examine how a firm's engagement in graft in emerging economies is shaped by its organizational attributes. Building on the logic of organizational ecology, we envisage that a firm's engagement in graft is influenced by its (1) institutional structure (e.g., public ownership, foreign ownership, and government ownership), (2) market...
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This study examines the organizational and personal level conditions under which boundary spanners in an international joint venture (IJV) tend to disagree with each other regarding procedural justice. Nested within the logic of boundary spanning and building on the integrated justice theory and joint venture theory, this study develops an overarch...
Article
Full-text available
The cultural distance metaphor dominates international management research, promoting a sterile, detached view where static antecedents in the form of artificially constructed differences serve as the dominant lens through which culture is viewed and its impact assessed. We examine culture and its positivist treatment in the foreign direct investme...
Article
Although product recalls are neither new nor unique to China, China bears much of the bitter criticism from the media and negative reactions from the public. This essay discusses the reasons behind recalls from a moral degradation perspective, grounded in the larger framework of anomie theory. While making remarkable economic progress, China is als...
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This study addresses a new dimension that describes interdependence between alliance members, namely, economic integration–the extent to which resources contributed by different alliance members and subsequent operations using these resources are effectively blended into an alliance's value chain to the point where if one member withdraws, the rema...
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This study examines how private enterprises in emerging economies politically respond to government bureaucracy they face. With an emphasis on two political responses, engagement and influence, we propose that private enterprises react to bureaucracy differently, depending on their entrepreneurial traits, and this leads to different susceptibilitie...
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Abstract and Key Results This study investigates (1) how capability exploitation and capability upgrading are associated with IJVs’ financial and competitive outcomes in an emerging market, and (2) how environmental dynamism (the key construct characterizing an emerging market) and interpartner cooperation (the key construct describing an IJV) mode...
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Despite the enormous economic progress it has made over the past thirty years, China is increasingly demoralized, manifested in part in the intertwinement between guanxi and corruption. This change has fundamental repercussions on business culture, practices, and performance, and even more so in years ahead if corruption continues to be ubiquitous...
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This article applies the dialectical logic of loose coupling to interpartner exchanges in order to analyze the dynamics of global strategic alliances. We develop a typology of control and cooperation that defines alliance states or situations according to their level of cooperation under private and collective control. In the private control–cooper...
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This study applies the justice theory to address interpartner cooperation in strategic alliances. It emphasizes how procedural fairness as perceived by boundary spanners in these alliances influences cooperation outcomes. We theorize that procedural fairness improves cooperation results through enhancing relational value and curtailing relational r...
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Abstract and Key Results▪ This study separates joint venture control into private and collective control and examines how these two distinct types of control in IJVs are influenced by dyadic relations between cross-cultural partners. ▪ Private control involves unilateral actions taken by an individual party to maximize its own interests and gain, w...
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We develop a mediation model in which the number of partners in a joint venture affects venture performance through contract completeness and partner cooperation. In a sample of 224 international joint ventures, we find that the number of partners is negatively related to venture contract completeness and partner cooperation, both of which are posi...
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Building on economic and social exchange theories, this study develops an integrated model in which curtailing opportunism in international joint ventures (IJVs) requires four interrelated sets of suppressing forces: (1) contractual ordering (contractual inclusiveness and contractual obligatoriness); (2) structural ordering (managerial governance a...
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This article elucidates an increasingly prevalent facet of global competition: simultaneous competition and cooperation between global rivals (i.e., coopetition). In order to develop an overall framework to analyze coopetition, this article explains why coopetition occurs, discusses situations in which cooperation or competition increases or decrea...
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This study extends research on strategic alliances by exploring independent and combined effects of distributive, procedural, and interactional justice in these alliances. An integrated framework links cooperation payoffs with organizational justice as perceived by boundary-spanning alliance executives, through whom justice perceptions become paren...
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Executive Overview Conventional wisdom in value chain strategy assumes a one-directional flow of primary activities, starting from inbound logistics to operations, outbound logistics, marketing and sales, and finally to service. Our recent study, extensive discussions with executives, and on-site visits suggest that this wisdom may not be complete...
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Multinational corporations (MNCs) entering and operating in China have been significantly changing their dominant strategies over the past two decades to cope with China's shifting competitive and regulatory environments. The new strategies have resulted in a status shift such that MNCs are no longer merely "foreign investors"; they have become "st...
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Guanxi or interpersonal relationships is one of the major dynamics of Chinese society. A pervasive part of the Chinese business world for the last few centuries, it binds literally millions of Chinese firms into a social and business web. Any business in this society, including local firms and foreign investors and marketers, inevitably faces guanx...
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In supply chain co-opetition, firms simultaneously compete and co-operate in order to maximize their profits. We consider the nature of co-opetition between two firms: The product supplier invests in the technology to improve quality, and the purchasing firm (buyer) invests in selling effort to develop the market for the product before uncertainty...
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In this article, we present a springboard perspective to describe the internationalization of emerging market multinational corporations (EM MNEs). EM MNEs use international expansion as a springboard to acquire strategic resources and reduce their institutional and market constraints at home. In so doing, they overcome their latecomer disadvantage...
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This study examines how joint venture partners' opportunism is influenced by environmental volatility in a drastically changing emerging economy. Building on transaction cost and information-processing theories, we develop the hypothesis that opportunism increases to cope with industry structural instability, information unverifiability, and law un...
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This study unites the three lenses – political behavior, corporate social responsibility, and corruption – and evaluates the way in which multinational enterprises (MNEs) manage political and social forces in a foreign emerging market. Using the theory of structuration as the conceptual foundation, we propose that an MNE's propensity to cooperate w...
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The – This study uses an information processing view to assess how autonomy of foreign R&D units in a major emerging market is influenced by the organizational and environmental conditions they face. – We argue that specification of the autonomy is an optimal decision requiring a balance between the costs of information processing capacity and...