Emerging Frontiers in International Business Research and Theory 2nd Annual Research Frontiers in International Business Conference September 16-19, 2004 Michigan State University East Lansing, MI The Centers for International Business Education and Research (CIBERs) were created under the Omnibus Trade and Competitiveness Act of 1988 to increase and promote U.S. capacity for international understanding and economic enterprise. Administered by the U.S. Department of Education under Title VI, Part B of the Higher Education Act of 1965, the CIBER program links the human resources and information needs of U.S. business with the international education, language training, and research capacities of universities across the U.S. Together, the CIBERs form a powerful network focused on improving American competitiveness and providing comprehensive service and programs that help U.S. business succeed in global markets. CIBER Co-Sponsors: Brigham Young University Columbia University Duke University Florida International University Georgia Institute of Technology Indiana University Michigan State University Purdue University San Diego State University Temple University Texas A&M University The Ohio State University The University of Texas at Austin UCLA University of Colorado at Denver University of Connecticut University of Florida University of Hawaii at Manoa University of Illinois at Urbana-Champaign University of Kansas University of Memphis University of Michigan University of North Carolina University of Pennsylvania University of Pittsburgh University of South Carolina University of Southern California University of Washington University of Wisconsin Emerging Frontiers in International Business Research and Theory 2nd Annual Research Frontiers in International Business Conference September 16-19, 2004 Michigan State University East Lansing, MI. By Seyda Z. Deligonul S. Tamer Cavusgil G. Tomas M. Hult With the contributions of: Brian R. Chabowski Shaojie Cui Carol Ann Finnegan Tracy Lee Gonzalez-Padron Ferdane Nukhet Harmancioglu Mary Kathryn Hoffman Bernadine Johnson Dykes Andrea McGee Prud’homme Steven H. Seggie Michael A. Stanko Mehmet Berk Talay Burcu Tasoluk Shichun Xu CONTENTS Chapter 1— Introduction Chapter 2 — Epistemological Issues: Developing Perspectives, Conceptualizing, and Theorizing w Advancing the Modeling of the MNC, Niron Hashai (Hebrew University, Jerusalem) w Multinationality of the Firm: Conceptualization and Measurement, Ahmet Kirca (George Washington University) w A Framework for the Study of the Integrated MNC, S. Tamer Cavusgil (Michigan State University), G. Tomas M. Hult (Michigan State University), and Seyda Deligonul (St. John Fisher College) w National Animosity: Conceptualization, Measurement Characteristics and Salience in International Business Decisions, David K. Tse, Bennett C. K. Yim, and Flora F. Gu (Hong Kong University) w A Self-Critical Look at the Status of Current Research in IB, Seyda Deligonul (St. John Fisher College, Rochester) w A Discourse Analysis of IB Research, 1972-2004, Minna Soderqvist (Helsinki Business Polytechnic) and Brian Toyne (St. Mary’s University) Chapter 3 — Modus Operandi: Methodological Rigor, Measurement, and Techniques w Do We Need To Create Our Own Methodologies? Bernard Yeung (New York University) w Methodology and IB/IM: Alternative Approaches and Causal Mechanisms, Timothy Devinney (Australian Graduate School of Management) w Achieving Measurement Equivalence in IB Research, Shaoming Zou (University of Missouri) w Bringing Cases Back in: Qualitative Research in IB, Lorraine Eden (Texas A&M University), Charles F. Hermann, (Texas A&M University), and Dan Li (Texas A&M University) w In Search of Rigorous Case Studies: Patterns of Reliability and Validity, Michael Gibbert (Bocconi University) w EUROCOB(S): Developing a Scale to Identify and Measure ‘Europeanness’ in Consumer Behavior, Elfriede Penz (Vienna University of E&BA) and Barbara Stöttinger (Vienna University of E&BA) w The Method of Comparative Industry Evolution Studies, Peter Murmann (Northwestern University) Chapter 4 — Broader Frameworks w Global Strategy and Emerging Economies: Toward an Institutional-Based View, Michael Peng (Ohio State University) w Dynamics of National Institutional Configurations: Implications for Country, Industry and Firm Adaptation, Michael Witt (INSEAD) and Arie Lewin (Duke University) w Multinational and Multilateral Influence Strategies in Emerging Markets and the Backlash Against Globalization, Witold Henisz (University of Pennsylvania) w Left at the Altar: An Institutional Analysis of Global Mergers and Acquisitions Announcements in the 1990s, Ruth V. Aguilera (University of Illinois), John C. Deckner (University of Illinois at Urbana-Champaign), and Xavier Escandell (University of Illinois at Urbana-Champaign) w An Overview of Strategic Fit Research in IB, Omar N. Toulan (McGill University) w Strategic Fit via Interactive Analysis, Bryan A. Lukas, (University Melbourne) w Strategic Fit via Polynomial Regression Analysis, Matthew B. Myers (University of Tennessee), and David Griffith (Michigan State University) w Strategic Fit via Profile Deviation Analysis, Neil A. Morgan (University of North Carolina) Chapter 5 — Implementation: Management and Practice w Establishing the Moral Basis of Global Capitalism: Implications for MNCs in Emerging Markets, Eden Yin (Cambridge University), and Chong Ju Choi (Australia National University) w Collaborative Entrepreneurship in the International Arena, Charles Snow (Penn State University) and David Ketchen (Florida State University) w From Modes of Entry to Foreign Market Configuration, Bent Petersen (Copenhagen Business School), Gabriel R. G. Benito (Copenhagen Business School), and Lawrence S. Welch (Mt. Eliza Business School) w A Choice Theoretic Examination of FDI, Timothy Devinney (Australian Grad School of Management), Peter J. Buckley (University of Leeds), and Jordan J. Louviere (University of Technology) w Proposal for a Special Issue of JIBS on Political Strategies, Corruption and Corporate Social Responsibility, Peter L. Rodriguez (University of Virginia) Emerging Frontiers in International Business Research and Theory w An Investigation of Three Strategies for Overcoming Negative Country of Origin Stereotypes, Lance Eliot Brouthers (University of Texas, El Paso), John W. Story (University of Texas, San Antonio), and John Hadjimarcou (University of Texas, El Paso) w Innovation and Learning in Multinational Firms, Anupama Phene (University of Utah) w The Organizational Challenge: Transfer Capabilities and the Effectiveness of Knowledge Flows, Bjorn Ambos (Edinburgh University) w Knowledge Sharing and Multinational Strategy: Some Research Directions, Xavier Martin (Tilburg University) w Knowledge in International Markets, Stephen Tallman (University Utah) w Foreign Subsidiary Management: Strategic Evolution, Host Country Impact and Policy, Filip de Beule (University of Antwerp) w Knowledge Governance in MNCs, Torben Pedersen (Copenhagen Business School) w Strategic International Retail Expansion, Brenda Sternquist (Michigan State University) w Value Creation in International Electronic Markets: A Conceptual Framework, Saeed Samiee (University of Tulsa), Peter G.P. Walters (Hong Kong Polytechnic University), and Leslie Yip (Hong Kong Polytechnic University) w How National Corporate Governance Systems Affect Global Integration, Ruth V. Aguilera (University of Illinois) and George Yip (London Business School) w International Entrepreneurial Dynamics, Ivo Zander (Stockholm School of Economics) and John A. Mathews (Macquarie University) w Rethinking Individualism and Collectivism, Daphna Oyserman (University of Michigan) Chapter 6 — Concluding Remarks References Emerging Frontiers in International Business Research and Theory Chapter 1 Introduction Although considerable progress has been recorded in the pursuit of knowledge in international business (IB), the second annual conference on emerging research frontiers has shown once again that much more work remains to be done. The field is entering a fresh phase of evolution. In the new era, success will emanate from studies based on questions native to the discipline. The methodological bar will go higher to ensure rigor; and progressiveness will be the central driver for scholars. Growth can be expected in the area of knowledge refinement as well as discovery and develop- ment of integrative frameworks. On the refinement side, knowledge will be reformed and fine tuned. Research will focus on: (1) divergent findings in empirical investigations indigenous to IB; (2) paradoxes arising because of what is known in sister fields, such as marketing, sociology, anthropology, and eco- nomics; for example, standardization across international markets dampens operational costs at the expense of strategic flexibility; and (3) skepticism about empirical findings and patterns of managerial practices, such as the fact that seemingly minor innovations can undermine the usefulness of embedded knowledge in the system because core capabilities simultaneously enhance and inhibit development. As for discovery, rather then extend studies borrowed from elsewhere, scholars will be creative along three research avenues: (1) paradoxes embedded in the field, such as increased centralization improves control, but increased control stimulates opportunistic behavior; (2) contrasting conclusions between empirical findings and theoretical frameworks, such as the empirical challenge to the popular belief that intrafirm