Management International Review

New Institutional Economics and Fdi Location in Central and Eastern Europe

This paper links the new institutional economics with organizational decision making on foreign direct investment (FDI). We examine the relationship between FDI inflows in Central and Eastern Europe (CEE) and institution building - particularly governments' efforts to create a more favorable FDI environment by reducing uncertainty and, concomitantly, costs associated with long-term capital investments. By combining institutional constructs with traditional factors that contribute to FDI decis...

The Influence of Internationalization On Time-Based Competition

This paper focuses on the use of time-based strategies by firms to compete more effectively in global markets. Time-based competition focuses on reducing cycle time from every facet of the value-delivery system. Time is regarded as a "fixed" variable and is the pivotal focus of cycle time reduction. The current study examines the relationship between internationalization and cycle time, and how their interaction relates to firm performance.

Competence Development Through Business Relationships or Competitive Environment? - Subsidiary Impact On Mnc Competitive Advantage

This paper examines the question as to whether two alternate environmental factors - competence development in subsidiary business relationships and competitive pressure of the subsidiary business environment - relate to the impact of subsidiaries on the competence development and performance of the larger MNC organisation. Using data from 501 foreign-owned MNC subsidiaries in three Nordic countries; Sweden, Finland and Denmark, the paper develops and tests four hypotheses using the Lisrel pa...

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Reform and Restructuring in a Chinese State-Owned Enterprise: Sinotrans in the 1990s

This paper traces the reform process within Sinotrans, a Chinese state-owned enterprise (SOE) in the service sector. Government acting as regulator as well as sole owner creates conflicts of interests that complicate the management strategy of SOEs. The core problem facing the management of Sinotrans was to resolve the conflict between changing government policy and need to control an integrated logistic network. Effective organizational change in Chinese services SOEs requires the withdrawal...

Local Partner Acquisition of Managerial Knowledge in International Joint Ventures: Focusing On Foreign Management Control

This study examined managerial knowledge acquisition by Chinese companies through IJVs, focusing on the effect of management control by US partners. Factors influencing control include Chinese partners' learning intent and JV performance commitment. A conceptual model was developed using field interview data and subsequently tested among a sample of Chinese IJV managers. The statistical technique of structural equation modeling was used to test the model.

Effective Mnc Knowledge Resources During a Radical Environmental Shift

To learn and adapt are key challenges confronting MNCs. While knowledge resources can be accumulated over time through experience and learning, sometimes prior learning can be a hindrance in adapting to radically shifted environments. We investigated the types of knowledge resources and capabilities that provided flexibility or acted as rigidities during the recent Asian economic crisis.

Subsidiary Autonomous Activities in Multinational Enterprises: A Transaction Cost Perspective

This paper investigates the implications of subsidiary autonomous activities for the governance of the multinational enterprise (MNE). Bounded rationality constraints faced by MNE corporate level management lead to severe limits imposed on subsidiary autonomous activities. The bounded rationality construct is revisited, and decomposed into information selection and information judgment in the context of subsidiary autonomous activities.

Knowledge Transfer in Multinational Corporations - an Evolving Research Agenda (Guest Editor's Introduction)

Knowledge Transfer Within the Multinational Firm: What Drives the Speed of Transfer?

This paper examines the process of knowledge transfer in an intra organizational context. We first hypothesize that internal transfers will occur faster than external imitation due to the conceptual view of the multinational corporation as a social community that specializes in the creation and transfer of knowledge. We then present an analysis of the determinants of the speed of intra firm knowledge transfer by using a dyadic level of analysis, involving sender and recipient subsidiaries, ex...

Knowledge Transfers in Acquisitions - an Exploratory Study and Model

Although knowledge transfers can be a significant source of value creation in acquisitions, the realization of knowledge-based synergies is frequently hindered by a number of organizational, individual, and knowledge-related factors. Based on existing literature and a small exploratory study, this article develops a comprehensive model of likely facilitators of, and impediments to, postacquisition knowledge transfers.

The Impact of Knowledge Management On Mnc Subsidiary Performance: The Role of Absorptive Capacity

To date, empirical studies on the impact of knowledge management on the performance of MNC subsidiaries remain few in number. This study examines the effect of knowledge management tools upon absorptive capacity, knowledge-flows and performance with unique data from subsidiary units in a large German MNC - HeidelbergCement. Treating absorptive capacity as an endogenous construct subject to managerial discretion, we show how knowledge management tools unfold their performance impact through th...

Foreign Research and Development and Host Country Environment: An Empirical Examination of U.S. International R&Amp;D

Multinational corporations (MNCs) are continuing to internationalize their research and development (R&D) activities. Some country environments are more conducive to such investments than others. In this study, we evaluate the influence of host country factors on foreign R&D investment. Using the just-released US government 1999 benchmark survey of US MNC activities abroad, and country-level data compiled from a variety of sources, we measure the impact of host country economic, insti...

Multinational Enterprise Knowledge Flows: The Effect of Government Inward Investment Policy

Governments around the world compete with each other to attract foreign direct investment from multinational enterprises (MNEs), using a variety of incentives and supports. Policy makers generally have two objectives for MNE investment that may be summarized under the headings of employment generation and knowledge creation. However, past research has provided little empirical evidence regarding which policies have the most effect on employment and knowledge flows. Using patent data on foreig...