Session 127

Institutional Context

Track G

Date: Tuesday, October 6, 2015


Time: 11:00 – 12:15

Common Ground

Room: Plaza Court 2


  • Felipe Monteiro, INSEAD

Title: A Process View of Compliance to Global Intellectual Property Standards: Effect of Local vs. Foreign Firms and Supra-National Institutions


  • Izzet Sidki Darendeli, California State University, East Bay
  • Kristin Brandl, Copenhagen Business School
  • Ram Mudambi, Temple University
  • Robert Hamilton, Temple University

Abstract: We study the different approaches of developing countries to fully comply with TRIPS and consequently secure intellectual property standards in the countries domestic innovation systems. We seek to understand the impact of local firms, foreign firms and supra-national institutions on this compliance. Though a study of ratification periods of 60 developing countries (from 1995 to full compliance) we conclude that the pressure of foreign firms in developing countries results in faster TRIPS compliance, positively moderated by the existence of on-going dependency to the supra-national institutions; domestic firms pressure for slow TRIPS compliance regardless the impact of supra-national institutions on the process.

Title: How Does Capitalism Vary? Moving Toward a Global and More Up-To-Date Perspective


  • Stav Fainshmidt, Florida International University
  • Ruth Aguilera, Northeastern University
  • Adam Smith, Old Dominion University

Abstract: The Varieties of Capitalism (VOC) approach is increasingly embraced by international business (IB) and strategy scholars as a framework for looking at nation-states as configurations of institutions. However, the VOC framework classifies nation-states based on outdated archival data, and has traditionally focused on advanced economies. In this paper, we address these two issues by proposing a global VOC typology and asking scholarly experts to categorize national economies into four main archetypes. In doing so, we provide an updated country classification based on collective expert knowledge; extend the VOC framework to developing economies; and identify new areas of inquiry for better understanding the institutional context in which IB and strategy phenomena take place.

Title: How Subsidiaries Sustain Their Charters Despite Loss of Mandate: The Mediating Role of Relational Attributes


  • Edward Gillmore, Mälardalen University
  • Peter Ekman, Mälardalen University

Abstract: Excluding Garcia-Pont et al, (2009) and Ciabuschi et al, (2011) few studies have addressed how the subsidiary’s internal embeddedness is a foundation for subsidiary charter enhancement. In this study we conceptualize captive offshoring as the explicit gain and loss of mandate and adopted a qualitative case study research design, as the study was exploratory. We used multiple case studies based on two offshoring initiatives for more robust findings. Our study identifies internal network embeddedness as the motor through which the subsidiary’s charter is sustained or depleted (Ghoshal and Bartlett, 1990; Andersson and Forsgren, 1996; Birkinshaw and Hood, 1998). This study contributes to the subsidiary strategy research by developing a model that addresses the mediating role of relationship attributes and its impact on the subsidiary distinctiveness

Title: Inward FDI and Institutions in Italy: A Grounded Theory Approach


  • Paolo Boccardelli, LUISS Guido Carli University
  • Ilaria Supino, LUISS Guido Carli University

Abstract: The aim of this study is to provide new theoretical insights and empirical evidence on the effect of country-specific institutional structures on national FDI attractiveness. A grounded theory approach will be applied, investigating the relationship between FDI choices and institutional drivers by the means of questionnaire returns and interviews with experts and company representatives. Thus, this work hopes to enrich the existent literature concerning the relatively weakly conceptualized categories of foreign investment behaviours in Italy’s institutional framework.

Title: Market Response to Environment Regulation Stringency Difference between Acquirer and Target Country


  • Gunae Choi, Rutgers University
  • Petra Christmann, Rutgers University
  • Ajai Gaur, Rutgers University

Abstract: We examine how the market responds to differences in environmental regulation stringency between acquirer and target countries for acquisitions in environmentally sensitive industries. We propose that the market negatively (positively) responds to acquisitions announcements when the acquirer country has more (less) stringent environmental regulations than the target country. This is because acquiring a target in a low regulation country can reduce the environmental reputation and increase the environmental risk of the acquirer. Further, we propose that this negative effect will be more prominent in diversifying acquisitions due to its potential to reduce environmental practices in the target country but this could be mitigated by the potential of green technology diffusion. Our findings provide robust support to our theoretical arguments.

Title: Subsidiary Dual Strategizing in Relation to Host Country Institutions and Corporate Strategy


  • Patrick Regnér, Stockholm School of Economics
  • Ivar Padrón Hernández, Stockholm School of Economics

Abstract: Through a comparative in-depth case study of multiple subsidiaries in a single MNC, this paper explores and explicates how subsidiaries with one foot in the corporate context and another in the local environment form strategies. Through micro-level examinations of subsidiary managers’ dealings with local institutional settings and corporate strategy, the paper demonstrates how subsidiaries strategize around these partly conflicting demands. We expose the inner workings of their strategy activities and propose a typology of four strategizing types, depending on institutional conflict with corporate strategy on the one hand, and the direction and control of corporate strategy on the other. By linking subsidiary managers’ strategy process and content activities to strategy outcomes in a multinational context, we contribute to international business and strategic management research.

All Sessions in Track G...

Sun: 08:00 – 09:15
Session 32: Microfoundations of international strategic management: Opportunism, trust, and bounded reliability
Sun: 09:45 – 11:00
Session 279: Formal theory in strategy - A primer
Sun: 11:15 – 12:30
Session 33: Methodological challenges in publishing international strategy research
Sun: 16:15 – 17:30
Session 209: Institutions and Emerging Markets
Sun: 17:45 – 00:00
Session 315: Global Strategy Business Meeting
Mon: 08:00 – 09:15
Session 126: Entry Mode & Cross-Border Acquisitions
Mon: 11:15 – 12:30
Session 149: Management and Coordination of Multinationals
Mon: 13:45 – 15:00
Session 128: Emerging Markets
Mon: 16:45 – 18:00
Session 151: Networks and Collaborative Arrangements
Tue: 08:00 – 09:15
Session 129: Foreign Direct Investments
Tue: 11:00 – 12:15
Session 127: Institutional Context
Tue: 14:15 – 15:30
Session 266: Offshoring
Tue: 15:45 – 17:00
Session 130: International Diversification
Session 150: Location and Geography
Tue: 17:30 – 18:45
Session 208: Internationalization Strategies and Performance

Strategic Management Society