Browsing Department of International Economics and Management (INT) by Year Published
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A Relationship-based ApproachLi, Xin (Frederiksberg, 2011)[More information][Less information]
Abstract: This paper argues that the existing four major theories of the firm, i.e., the transaction cost theory, resource-based view, the entrepreneurial theory, and the stakeholder theory, are all insightful yet partial because each of them has a particular focus on the phenomenon of the firm. To better understand the nature and behaviors of the firm, we need a comprehensive yet integrative theory. Toward this end, this paper proposes a relationship-based theory of the firm (R’BT) which claims that it is the relationships between the entrepreneur and other individuals or firms that determine the existence, boundary, internal organization and competitive advantage of the firm. URI: http://hdl.handle.net/10398/8361 Files in this item: 1
Xin_Li_INT_2011.pdf (275.3Kb) -
Sigurjonsson, Throstur Olaf (Frederiksberg, 2011)[More information][Less information]
Abstract: Currently, the corporate governance has the agenda of categorizing reality and thereby determining which systems are more effective and efficient in a given context. A question is posed; how has the internationalization of markets, liberalization, deregulation, and privatization adapted to rapid changes in traditionally based models of corporate governance? When corporate governance practices are exported from one country to another, they tend to be translated and customized to local practices before being adopted. The objective of this thesis is to examine this type of adaptation and explain the circumstances that led to a collapse of governance mechanisms, using Iceland as an example. URI: http://hdl.handle.net/10398/8336 Files in this item: 1
Throstur Sigurjonsson.pdf (3.434Mb) -
Gammeltoft, Peter; Tarmidi, Lepi T. (Frederiksberg, 2011)[More information][Less information]
Abstract: China‟s increasing integration with the world economy is met with much anticipation and much anxiety in the Southeast Asian region. In Indonesia, there is intense interest in Chinese foreign direct investment (FDI), not only among academics but also among policy makers, industrialists and the general public. So much more surprising is the fact that no systematic study of Chinese FDI in Indonesia has been undertaken to date. The current paper contributes to filling this gap and analyses the current composition as well as the historical evolution of Chinese FDI in Indonesia. Relying on a survey conducted in 2008 among Chinese invested enterprises supplemented with available official statistics and secondary data, the study finds that Chinese FDI in Indonesia is performed by mixed entities: some are owned by central government, some by regional government and some are private firms. In the case of joint ventures, their local partners are mostly local Chinese, except in the infrastructure, mining and energy sector where their local partners are Indonesian state-owned enterprises. Where the local developmental effects are concerned, a picture emerges where Chinese investments, at this early period of their internationalization, are likely to give rise to a more modest extent of positive spillovers than investor from more economically advanced countries. This stems from the sectors, investment motives and operational strategies of Chinese investors, the heritage of ethnic tension and segmentation of the economic system along ethnic lines in Indonesia, and the likelihood that Chinese MNCs as latecomers are more vertically integrated than their developed-country counterparts. Finally, considering the evolution of Chinese investments in Indonesia over time, investments have evolved from being individual and isolated projects to acquiring more systemic properties. Chinese companies have acquired a broader sectoral presence in Indonesia and Chinese invested companies in e.g. extractive or manufacturing activities can increasingly rely on complementary Chinese investments in logistics, travel, finance etc. URI: http://hdl.handle.net/10398/8397 Files in this item: 1
Peter_Gammeltoft_2011.pdf (575.2Kb) -
Non-linearity and Absorptive CapacityChen, Taotao; Kokko, Ari; Tingvall, Patrik Gustavsson (Frederiksberg, 2010)[More information][Less information]
Abstract: Using a fixed effect variance decomposition model, we estimate SUR models to analyze FDI spillovers from contagion and spillovers from competition on local firms in China. While the former type of spillover mainly depends on the degree of foreign presence in the local industry, the latter kind is related to how foreign and local firms interact. The main conclusion is that FDI has been beneficial for the Chinese economy, but that spillovers are not evenly distributed across firms and industries. Spillovers from contagion tend to exhibit an inverse U-shaped pattern with respect to the degree of foreign presence at the industry level, whereas spillovers from competition are more linear with respect to the level of technological sophistication of foreign firms. Industries with high absorptive capacity and/or high efficiency are the ones best equipped to take advantage of spillovers from foreign-owned firms. Moreover, there are signs of substantial competition between foreign-owned firms. URI: http://hdl.handle.net/10398/8033 Files in this item: 1
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Munar, Ana María (Frederiksberg, 2010)[More information][Less information]
Abstract: A development in Information and Communication Technologies promising to have a large impact on tourism is the phenomenon known as the Web 2.0. A key to this development is the encouraging of interactivity due to User Generated Content (UGC). This paper focuses on a specific type of UGC: Tourist Created Content (TCC). Based on an exploratory examination of the Web and an extensive analysis of the content, the study systematizes the knowledge about TCC, presents a classification system and provides an overview of its characteristics. The paper shows the processes that allow the tourist to digitalize content and reveals how TCC relates to the cultures of the Internet and shapes the tourism experience. URI: http://hdl.handle.net/10398/8034 Files in this item: 1
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Kokko, Ari; Ljungwall, Christer; Tingvall, Patrik Gustavsson (Frederiksberg, 2010)[More information][Less information]
Abstract: This paper investigates to what extent income growth in the Chinese provinces is linked to growth and income levels in neighboring provinces. We find that the rate of income growth in a province is positively related to income and growth in neighboring provinces. However, we find no evidence of such positive interdependence between growth in rich coastal provinces and their immediate inland neighbors. This suggests that there has been little synchronization in economic growth rates between these regions, and/or that the immediate hinterland of the coastal growth centers might have been bypassed as China’s manufacturing sector has migrated westward. URI: http://hdl.handle.net/10398/8032 Files in this item: 1
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An Empirical Reconciliation of Two Critical ConceptsOhnemus, Lars (Frederiksberg, 2010)[More information][Less information]
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An empirical analysis of Economics and ManagementÓladóttir, Ásta Dis (Frederiksberg, 2010)[More information][Less information]
Abstract: This dissertation consists of an introductory chapter, followed by four papers that approach the topic of internationalization of small economies and the multinational firm from different angles. The concluding chapter deals with what happened in Iceland after the crisis that started in October 2008 with the collapse of the Icelandic financial system and how the very fast internationalization of Icelandic firms was possible, but only as further issues that need to be researched. Each of the papers can be read individually as well as in the larger context of this dissertation. URI: http://hdl.handle.net/10398/7993 Files in this item: 1
Ásta_Dis_Óladóttir.pdf (2.005Mb) -
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Abstract: A number of influential studies have documented a considerable value premium for US stocks over long periods of time. Value stocks, defined as companies that trade at low price-earnings or price-book values, are reported to have given a higher mean return than growth stocks trading at high multiples. Outside the US, there is also robust evidence of a value premium for the UK, but otherwise the evidence is more uncertain due to data shortages. Studies of continental European and Asian markets are, for example, based on data that typically only covers 20 years of market history. The purpose of this paper is to report evidence for the Danish market using a consistent data set that extends over the period 1950-2008. On the basis of these data the paper investigates whether the value premium is a stylized fact or just a phenomenon that pops up every few decades only to disappear again. The results show that the Danish value premium exists and is significant over the long run. However, this paper also shows that the premium is not a simple constant but is volatile even across decades. URI: http://hdl.handle.net/10398/8241 Files in this item: 1
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Abstract: This paper is intended to propose a relationship-based theory of the firm (R’BT), an alternative to the transaction cost theory. The R’BT takes relationship disharmony (rather than transaction costs) as its basic unit of analysis of the nature of the firm, and argues relationship disharmony derives from conflict of interests, a problem faced by any human organizations; to reduce the conflict of interests, the best way is to harmonize relationships by mutually accommodating or internalizing the other party’s interests into its own consideration; the degree of harmony or disharmony in the relationships will in turn determine the performance of the organization in question. This paper provides a completely different explanation from the transaction cost economics when addressing issues such like the existence, boundary and internal organization of the firm. Also discussed are its implications for organizational management and economy. URI: http://hdl.handle.net/10398/7828 Files in this item: 1
wp3-2009-xl.pdf (160.1Kb) -
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Abstract: This paper presents a critique of Freek Vermeulen’s synthesis of rigor and relevance in management research, and argues (1) at the first glance, Vermeulen’s papers are very appealing; (2) but with a closer scrutiny, we can unveil the weak and shaky foundations of his argument; (3) as a consequence, his solution of ‘adding a second loop’ to make management research meet dual needs of rigor and relevance is illusory and merely an applied science fiction; (4) and finally, there are two real contributions of his papers to the irrelevance debate, but they are not like what we might have thought. URI: http://hdl.handle.net/10398/7827 Files in this item: 1
wp2-2009-xl.pdf (223.8Kb) -
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Abstract: This paper gives an overview over how far transition has proceeded and what is still lacking in the process. First the analytical framework – the PIE model for Politics, Institutions, Economy – is introduces. The model is first used to point to the main reasons for the fall of the command economy. Then it is used to identify the barriers for transition of the institutional system and the restructuring of the economy. This includes an analysis of the different factors behind the steep fall in production in the first years of transition. It is shown that countries implementing a tough stabilization and a comprehensive and consequent liberalization have been most successful in the process. A fast and comprehensive privatization, on the other hand, has not been sufficient for the necessary restructuring of enterprises. Decisive for success in transition has been transformation of the state as a crucial part of the development of new political and economic institutions implementing well functioning, clear and stable rules of the game for private enterprises. The institutional development has been important for the attractiveness of foreign investments - important for restructuring enterprises as part of a positive circle for the transition process. URI: http://hdl.handle.net/10398/7983 Files in this item: 1
transition_-_PIE_feb_2009-1.pdf (108.5Kb) -
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Abstract: This paper describes the current state of the management academia as a naked carnival, namely, most of the management researches have no such a clothes called practical relevance. It is intended to provide an explanation why management research has become irrelevant to the real management practice. It argues there are three factors behind the irrelevance problem: first, the ‘scientific model’ of management studies generates an initial and internal force which pushes the management research away from practice management studies supposed to serve; second, paradigm maintenance effort of the mainstream management scholars prevents the irrelevant management academia moving back towards management practice; third, the surrounding environment provides the management academia anything but a strong counter force to change the irrelevance reality. This paper also argues any solutions under the ‘scientific model’ are doomed to failure; and the only way out is to completely abandon the ‘scientific model’ and adopt a ‘professional model’ of management studies. Unfortunately, this paper argues such a radical change from within is highly unlikely to happen. URI: http://hdl.handle.net/10398/7826 Files in this item: 1
wp1-2009-xl.pdf (264.4Kb) -
The Norwegian maritime sectorWallevik, Kristin (Frederiksberg, 2009)[More information][Less information]
Abstract: The four papers in this thesis investigate corporate governance in family firms from different angles, with emphasis on industry and industry networks. I divide the industry networks into social and commercial networks, where social networks are measured by interlocking boards and commercial networks by investments in other firms in the same industry. Focus is on the governance structures in family firms, how industry and networks may be determinants of family ownership, and the effect of family ownership and strong industry networks on financial performance in certain industries (such as the maritime industry). Two of the papers are theoretical papers and two are empirical papers. The empirical papers are based on the same hand-collected dataset comprising 167 Norwegian listed companies from 1996-2005. The first paper - “Corporate Governance in Family firms” comprises a survey of the corporate governance literature on family firms, paying attention to the unique issues in the governance of these firms. I discuss different forms of ownership and how different agency contexts and business environments may suit family ownership better than other ownership structures. I also discuss how firms can reap the benefits of family ownership, by using a relational governance model, if there is an atmosphere of positive relationships, trust and shared visions. A relational governance model focuses on the social capital embedded in personal relations between owners, managers and board members. A contractual governance model, however, focuses on finding the optimal incentives in the relations between owners and managers, in addition to having greater focus on the monitoring role of the board. These two models may complement and supplement each other in a governance structure. The question is how these different governance models affect firms’ operations, decision-making, and competitiveness. The second paper - “The Effect of Industry Networks on Family Ownership” deals with possible effects of industry networks on the prevalence of family firms in different industries. I discuss how various networks can be determinants of family ownership, in addition to elements like incentives, monitoring, and altruism, as well as firm, industry and nation specific factors. I also discuss whether family firms can gain more from these industry networks than other firms due to a higher degree of ”thick trust”, strong owner-manager relations and the use of a relational governance structure. This paper proposes that strong social and commercial networks affect the number of family firms in an industry, as a result of the social capital embedded in these relations. Paper three - “Social and Commercial Networks as Determinants of Family Ownership - The Norwegian Shipping Industry” is an empirical paper testing whether industry networks are among the determinants of family ownership in the Norwegian shipping industry. The overall question is why family ownership is more prevalent in some industries, and which elements that influence this ownership structure. I focus on industry effects such as the number of firms in an industry and the social and commercial industry networks between firms. These are potential determinants of family ownership. I find that both industry and various industry networks have a significant and positive effect on family ownership in the shipping industry. The fourth paper - “Family Ownership, Networks and Financial Performance” takes up the question whether family ownership and various networks affect financial performance, measured by Tobin’s q and ROA lagged, or not. Earlier studies come to different conclusions regarding the relationship between family ownership and firm performance, which may be due to differences in the agency context of the studies. I add industry and industry networks as central variables to disentangle some of the contextual factors in this relationship. This paper argues that it is not necessarily the family ownership that affects performance, but how this ownership is used in a strategic manner. Establishing and using networks are seemingly a means of operation in some industries, sometimes with a positive effect on performance. URI: http://hdl.handle.net/10398/7901 Files in this item: 1
Kristin_Wallevik.pdf (3.039Mb) -
Håkanson, Lars (København, 2008)[More information][Less information]
Abstract: Based on a social-constructivist conceptualization of knowledge as residing in groups of practitioners, epistemic communities, this paper proposes a new perspective on the knowledge based view of the firm and sketches the outline of a new research agenda. It argues that the cost of governing knowledge processes depends as much on the cognitive background of the exchange partners as on the tacitness of the knowledge. Firms exist because they may form epistemic communities in their own right with enabling and motivational properties superior to those of markets in the governance of knowledge processes across epistemic boundaries. Establishing a firm as an epistemic community requires transaction specific investments that are difficult to realize under market forms of governance. URI: http://hdl.handle.net/10398/6534 Files in this item: 1
wp4-2008.pdf (121.6Kb) -
Entry timing and mode choiceJakobsen, Kristian (København, 2008)[More information][Less information]
Abstract: This dissertation consists of an introduction followed by four papers on issues related to the choice of entry timing and entry mode in transition economies. Below is a list of the papers that is included in the dissertation with information about their current publication status and coauthorships. * Jakobsen, K. 2007. First mover advantages in Central and Eastern Europe: A comparative analysis of performance measures, Journal of East-West Business, 13(1), 35-61. * Jakobsen, K. 2008. Competition for Markets in the Brewing Industry in Central and Eastern Europe. In J. Larimo (Ed.) Perspectives on Internationalization and International Management, Vassan Yliopiston Julkaisuja, p. 299-316. ISBN 978-952-476-228-1 * Jakobsen, K., & Meyer, K. E. 2008. Partial Acquisition: The overlooked entry mode. In J. H. Dunning and P. Gugler (eds.) Progress in International Business Research 2, Elsevier Science, p. 203-226. ISBN 978-0-7623-1475-1. * Jakobsen, K., & Meyer, K. E. 2007. Negotiating entry modes: Partial acquisitions in transition economies. Revise and resubmit at International Business Review URI: http://hdl.handle.net/10398/7681 Files in this item: 1
kristian_jakobsen.pdf (1.922Mb) -
Dieng, Sebastian; Dörrenbächer, Christoph; Gammelgaard, Jens (København, 2008)[More information][Less information]
Abstract: This paper analyses the moves global brewery companies undertake towards the distribution of decision making authority in their multinational organization and the likelihood of newly acquired subsidiaries to influence these moves. In this consumer goods industry, brands are suggested to be the primary subsidiary specific resource to influence these distribution processes. Empirically this paper explores three European acquisitions of the Dutch brewery corporation Heineken in Switzerland, Slovakia, and France. We explore whether differing brand value (regional/international, standard/premium) has had an impact on the subsidiaries‟ ability to maintain a certain degree of decision making authority after the take-over. The results of our case studies show, however, that the ownership of valuable brands may not be considered as a critical resource for subsidiaries here. URI: http://hdl.handle.net/10398/6601 Files in this item: 1
wp2-2008.pdf (295.9Kb) -
Risager, Ole (København, 2008)[More information][Less information]
Abstract: A number of influential studies have documented a considerable value premium for US stocks over long time periods (Fama and French (1992, 2008), Lakonishok et al. (1994)). Stocks with low price-earnings multiples, price-book values and other measures of value are reported to have given a higher mean return than stocks with high multiples and high asset growth (Cooper et al. (2008)). Outside the US, the evidence is more uncertain due to data shortages. On the basis of a unique data set that extends over more than half a century, this paper not only shows that there is a value premium in the Danish market but also that growth stocks only produce high earnings growth in the run-up to portfolio formation. Growth stocks are therefore likely to have disappointed investors. We therefore also estimate the proportion of the premium that can be explained by growth stocks’ earnings disappointment. URI: http://hdl.handle.net/10398/6560 Files in this item: 1
wp1-2008.pdf (193.1Kb) -
Håkanson, Lars; Ambos, Björn (København, 2008)[More information][Less information]
Abstract: This study investigates the antecedents of psychic distance. Building on original data in 25 of the world’s largest economies, we investigate potential drivers of the perceived distance among a given pair of countries. Results confirm that psychic distance is indeed a multifaceted construct which is determined by cultural, geographic and economic factors. Furthermore, our results indicate that geographic distance accounts for the largest share of the explained variance, suggesting that future studies should attribute geographic distance a more prominent role when it comes to empirically investigating international business decisions for which psychic distance perceptions may be important. They also suggest that, used in isolation, cultural distance – as measured by the so called Kogut and Singh index – is a poor predictor of distance perceptions. URI: http://hdl.handle.net/10398/6583 Files in this item: 1
wp3-2008.pdf (189.2Kb) -
Comparing networks and formal institutionsSinani, Evis; Thomsen, Steen; Staffsud, Anna; Randoy, Trond; Edling, Christofer (København, 2007)[More information][Less information]