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Probing Theoretically into Central and Eastern Europe: Transactions, Resources, and Institutions

Published on Nov 1, 2005in Journal of International Business Studies 6.20
· DOI :10.1057/palgrave.jibs.8400167
Klaus E. Meyer41
Estimated H-index: 41
(University of Reading),
Mike W. Peng60
Estimated H-index: 60
(University of Texas at Dallas)
Since the 1990s, Central and Eastern Europe (CEE) has provided unique societal quasi-experiments, which represent opportunities to test the applicability of existing theories in international business and management studies and to develop new ones. Specifically, three lines of theorising have been advanced: (1) organisational economics theories; (2) resource-based theories; and (3) institutional theories. For each of these theories, we discuss how they contribute to the understanding of key issues, such as entry strategies of foreign investors, restructuring strategies of local incumbents, and entry and growth strategies of entrepreneurs. On this basis, we assess how CEE research has influenced the overall trajectories of theory development. CEE research has in particular highlighted the importance of contextual influences such as institutions. Thus, scholars have aimed at incorporating institutions into theories (such as organisational economics theories and resource based theories) and advancing an institution-based view of business strategy as a complementary perspective. We outline how future research in CEE and other emerging economies may advance this research agenda further.
  • References (142)
  • Citations (511)
Published on Dec 31, 2010
John H. Dunning62
Estimated H-index: 62
Sarianna M. Lundan14
Estimated H-index: 14
This is the second edition of the celebrated volume by Professor John H. Dunning, first published in 1993, which has now been not only updated but also enriched with the addition of a number of new topics. This addition was not least due to the expertise of the co-author, Sarianna Lundan, in the institutional aspects of international business and the internal governance of transnational corporations (TNCs). It is a comprehensive synthesis of all the theories in International Business based on ex...
4,226 Citations Source Cite
Published on May 29, 2008
Saul Estrin43
Estimated H-index: 43
(London Business School),
Klaus E. Meyer41
Estimated H-index: 41
(University of Reading),
Maria Bytchkova3
Estimated H-index: 3
(London Business School)
104 Citations Source Cite
Published on Apr 1, 2008in Business and Politics
Barak D. Richman11
Estimated H-index: 11
(Duke University),
Jeffrey T. Macher16
Estimated H-index: 16
(Duke University)
This paper provides a comprehensive review of the empirical literature in transaction cost economics (TCE) across multiple social science disciplines and business fields. We show how TCE has branched out from its economic roots to examine empirical phenomena in several other areas. We find TCE is increasingly being applied not only to business-related fields such as accounting, finance, marketing, and organizational theory, but also to areas outside of business including political science, law, ...
375 Citations Source Cite
Published on Mar 1, 2006in Management International Review 2.28
Laar Mindel van de5
Estimated H-index: 5
(Boston Consulting Group),
Neubourg Chris de12
Estimated H-index: 12
(Maastricht Graduate School of Governance)
Abstract Abstract Emotions are largely absent in economic models. Possibly for this reason, many theories fail to explain the actual decisions made by managers. Therefore, we integrate emotions with regular microeconomic theory. We focus on FDI decisions, and include both economic and emotional variables in our analysis of the firm’s decision-making process. In our theoretical analysis, emotions are included in a utility maximization model that considers not only the utility of the firm but also...
26 Citations Source Cite
Published on Jan 1, 2005in Journal of Management Studies 5.33
Mike Wright97
Estimated H-index: 97
(University of Nottingham),
Igor Filatotchev46
Estimated H-index: 46
(King's College London)
+ 1 AuthorsMike W. Peng60
Estimated H-index: 60
(Ohio State University)
This review and introduction to the Special Issue on 'Strategy Research in Emerging Economies' considers the nature of theoretical contributions thus far on strategy in emerging economies. We classify the research through four strategic options: (1) firms from developed economies entering emerging economies; (2) domestic firms competing within emerging economies; (3) firms from emerging economies entering other emerging economies; and (4) firms from emerging economies entering developed economie...
1,157 Citations Source Cite
Published on Oct 1, 2004in Social Science Research Network
Ruta Aidis13
Estimated H-index: 13
(University College London),
Tomasz Mickiewicz21
Estimated H-index: 21
(Aston University)
This paper presents an empirical study based on a survey of 399 small and medium size companies in Lithuania. Applying bivariate and ordered probit estimators, we investigate why some business owners intend to expand their firms, while others do not. Our main findings provide evidence that the characteristics of the owners matter. Those with higher education and 'learning by doing' attributes either through previous job experience or additional entrepreneurial experience are more likely to expan...
15 Citations Source Cite
Published on Sep 1, 2004in Journal of International Business Studies 6.20
Charles Dhanaraj15
Estimated H-index: 15
(Indiana University Bloomington),
Marjorie A. Lyles37
Estimated H-index: 37
(Indiana University Bloomington)
+ 1 AuthorsLaszlo Tihanyi32
Estimated H-index: 32
(University of Oklahoma)
Drawing on organizational learning and economic sociology, we address how relational embeddedness between the foreign parent and international joint venture (IJV) managers influences the type of knowledge (i.e., tacit and explicit) transferred to the IJV, and how the importance of relational embeddedness varies between young and mature IJVs. We also examine the influence of tacit and explicit knowledge on IJV performance. Our results show the importance that tie strength, trust, and shared value...
614 Citations Source Cite
Published on Jun 1, 2004in Journal of Management 8.08
Marjorie A. Lyles37
Estimated H-index: 37
(Indiana University Bloomington),
Todd Saxton9
Estimated H-index: 9
(Indiana University Bloomington),
Kathleen Watson3
Estimated H-index: 3
(California State University San Marcos)
Many formerly controlled economies have undergone discontinuous transformations in their approach to markets, institutional environments, and the role of government in economic activity. We study the factors that affect venture survival in a transitional economy through a two-stage study of private ventures in Hungary. We find that ventures survive under uncertainty, even without significant government support. Industry experience, networking activities, and the strategic orientation of the firm...
96 Citations Source Cite
Published on Mar 1, 2004in Strategic Management Journal 5.48
Mona Makhija10
Estimated H-index: 10
(Max M. Fisher College of Business)
Although the value creating effect of firm restructuring which results in a reduction of internal markets (including spin-offs, carve-outs and other divestitures) is generally well accepted for U.S. firms, there is little evidence on the extent to which such arguments can be extended to firms in emerging economies. This study addresses this void in the literature by examining the issue of restructuring in the newly emerging economy of the Czech Republic. Several hypotheses relating to internal a...
57 Citations Source Cite
Published on Mar 1, 2004in Asia Pacific Journal of Management 2.47
Klaus E. Meyer41
Estimated H-index: 41
(Copenhagen Business School)
Organizations often find it hard to change their corporate strategy radically, even if the need for change is widely recognized as in the Asian crisis of 1997. Such change requires large numbers of stakeholders to change their individual behavior, yet complex governance structures limit the applicability of agency-based models of governance. Rather, the coordination of stakeholder is at the core of governance during radical environmental change.
10 Citations Source Cite
Cited By511
Published on Sep 1, 2018in Journal of World Business 3.99
Alfredo Valentino1
Estimated H-index: 1
(Libera Università Internazionale degli Studi Sociali Guido Carli),
Jan Schmitt1
Estimated H-index: 1
(Vienna University of Economics and Business)
+ 1 AuthorsPhillip Christopher Nell13
Estimated H-index: 13
(Vienna University of Economics and Business)
We investigate the effect of changing national institutions on relocations of intermediary HQs. Using a dataset of 154 cross-border relocations between the period from 2000 to 2015, we draw on the intermediary HQ's middle position within the MNC and investigate how a decrease in institutional quality in the HQ's host country and a change in institutional distance between different MNC units affect the relocation decision. Our findings advance the emergent literature on HQ relocations as well as ...
3 Citations Source Cite
Published on Jun 1, 2019in International Business Review 2.75
Marian Gorynia8
Estimated H-index: 8
(Poznań University of Economics),
Jan Nowak8
Estimated H-index: 8
+ 1 AuthorsRadosław Wolniak7
Estimated H-index: 7
(University of Warsaw)
Abstract Many existing studies on emerging markets and firms have concentrated on the separate effects of institutional reforms and quality of the institutional infrastructure for attracting inward foreign direct investment (FDI) and fostering outward FDI. We argue that both these perspectives should be considered in an interplay, as there are links between inward and outward FDI in a country's economic development, which is captured by the investment development path (IDP) concept. Moreover, wh...
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Published on Mar 1, 2019in Journal of World Business 3.99
Dan Prud’homme1
Estimated H-index: 1
(University of Oxford)
Abstract This article seeks to better explain the complex challenges that intellectual property (IP) regimes pose to foreign multinational corporations (MNCs). It draws on in-depth research into the appropriability and entrepreneurial risks as well as transaction costs that China’s IP regime has posed to foreign MNCs to date, and forecasts how these risks and costs may evolve in the future. I find that, contrary to conventional wisdom, IP regimes are not always best conceptualized as either “wea...
1 Citations Source Cite
Published on Jun 1, 2019in Journal of International Business Studies 6.20
Yadong Luo64
Estimated H-index: 64
(University of Miami),
Huan Zhang (Sun Yat-sen University), Juan Bu (Indiana University Bloomington)
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. We articulate frontier issues that are understudied yet critical to both theorization and practice of DMNEs in developing economies. We discuss the fin...
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Published on May 15, 2019in Management Research Review
Manami Suzuki (Hosei University), Naoki Ando6
Estimated H-index: 6
(Hosei University),
Hidehiko Nishikawa2
Estimated H-index: 2
(Hosei University)
Purpose This paper aims to investigate three different orientations of recruitment (profession-sensitive, language-sensitive and interculture-sensitive recruitment) and their effect on the foreign subsidiaries of multinational corporations (MNCs). Design/methodology/approach This study examines the relationship among three different orientations of recruitment and knowledge transfer from parent firms to foreign subsidiaries. Data are collected from local managers in MNCs’ subsidiaries operating ...
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Published on May 13, 2019in Management Decision 1.52
Laura Rienda12
Estimated H-index: 12
(University of Alicante),
Enrique Claver-Cortés37
Estimated H-index: 37
(University of Alicante)
+ 1 AuthorsRosario Andreu Guerrero6
Estimated H-index: 6
(University of Alicante)
Purpose In recent years, emerging-market multinationals (EMMs) are receiving significant attention in the international business literature. They represent a challenge for the conventional wisdom, mainly derived from the behavior of developed-country multinationals (MNEs). The purpose of this paper is to analyze how different cross-national distances, namely cultural, administrative, geographic and economic, may affect establishment mode choice by Indian MNEs. Design/methodology/approach Data ar...
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Published on Apr 16, 2019in Business & Society 3.21
Jisun Yu2
Estimated H-index: 2
(Concordia University),
Seung Hyun Lee21
Estimated H-index: 21
(University of Texas at Dallas)
We investigate what determines a multinational enterprise’s (MNE) propensity to engage in lobbying and bribing in host countries where the overall institutional development for market exchanges is insufficient, and thus, their governance systems are relatively weak. We extend the current literature on institutional strategies by theorizing and showing the persistent and significant impacts of home country institutions on an MNE’s choice of influencing activities to address institutional constrai...
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Published on Apr 1, 2019in Journal of World Business 3.99
Jianjun Zhu1
Estimated H-index: 1
(New Mexico State University),
Caleb H. Tse3
Estimated H-index: 3
(Nanyang Technological University),
Xu Li (University of Hong Kong)
Integrating agency and institutional perspectives, we describe how China’s socio-political institutions create state-owned corporate empires with unique agency conflicts. We develop a framework demonstrating how economically unjustified firm expansion, i.e. empire building, mediates the relationship between state ownership and performance. We uncover the instrument in empire building and appropriate corporate governance and strategic management remedies. An empirical study on 29,638 Chinese firm...
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Published on Mar 11, 2019in Chinese Management Studies 0.86
Qinghua Zhai (East China Normal University), Jing Su
Purpose This paper aims to evaluate the progress made in understanding the impact of multi-level institutions on entrepreneurship. Design/methodology/approach Based on scientific articles published between 1992 and 2017, the authors take a unique focus on both institutional theory applied and research topics of this area. Bibliometric method and systematic literature review method are used. Findings The results demonstrate that although institutional theory is well prepared for entrepreneurship ...
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Published on Mar 1, 2019in Journal of International Business Studies 6.20
Pete Tashman8
Estimated H-index: 8
(University of Massachusetts Lowell),
Valentina Marano4
Estimated H-index: 4
(Northeastern University),
Tatiana Kostova25
Estimated H-index: 25
(University of South Carolina)
Research shows that emerging market multinational enterprises (EM-MNEs) increasingly use corporate social responsibility (CSR) reporting as a global legitimation strategy. Less is known about when their CSR reporting is decoupled from their CSR performance. Drawing on neo-institutional theory, we argue that EM-MNEs’ CSR decoupling is shaped by their dual embeddedness in their home countries and the global institutional environment. We then examine how EM-MNEs’ home country institutional voids an...
4 Citations Source Cite