Adjustment of MNE Geographic Market Strategy in Responding to the Rise of Local Competitors in an Emerging Market
J.T. Li and Zhenzhen Xie
Emerging economies are characterized by weak institutions but also a very dynamic competitive landscape. This chapter proposes that MNE subsidiaries may have to adjust their geographic market strategies as a response to the rise of local competitors. Information on 25,161 manufacturing subsidiaries exporting from China during 2005–2007 was analyzed to show that the export intensity of an MNE subsidiary first increases and then decreases with the export volume of the subsidiary’s local Chinese competitors in the same industry and with the same destination country. Subsidiaries that are older or more tightly controlled by their MNE parents are less likely to respond to the exporting of their Chinese competitors by changing their exporting intensities. Better developed market-supporting institutions make MNE subsidiaries more sensitive to the impact of Chinese local exporters.
Co-operatives have played a significant role in the agricultural sector in China, particularly since the promulgation of a first national co-operative law in 2007. This chapter offers an analysis of the evolution, diversity, and dynamics of agricultural co-operatives in contemporary China and the institutional environments in which the development of these organizations took place. A multi-dimensional typology of co-operatives is proposed in order to provide a framework of analysis. This analysis enables one to understand the diversified driving forces, the operational patterns, and the organizational missions of agricultural co-operatives in China. The significant contributions provided by each type of co-operative to poverty reduction, work integration, and local community development is emphasized. The chapter concludes with a discussion on the challenges and opportunities for Chinese co-operatives’ future development.
Johnny Sung and Arwen Raddon
The developmental state model was proposed in the early 1990s as a better means of understanding the mechanisms underlying the rapid growth of the Asian Tiger economies, when compared to classic economic models. The national skills systems of South Korea and Singapore are examined in order to consider how the Asian developmental state approach has worked in practice. It is shown that, whilst the state identifies and firmly guides the direction of economic development, the market plays a fundamental role in the concrete delivery of long-term economic objectives. Within this approach, education and training act as a vehicle to achieve broader economic and social development goals. Examples are used to consider how these systems changed throughout the industrialisation process. We reflect on some of the challenges faced over time, which have put the long-term viability of the developmental state approach in question. Most notable is the gradual erosion of the state’s ability to lead capital and labour in order to achieve long- rather than short-term goals, particularly in the face of globalisation.
Chiara Carini and Maurizio Carpita
There is a widespread belief that co-operatives are small-sized enterprises. However, some reports highlight that co-operatives have larger dimensions in certain areas than other types of companies. Starting from this premise, this paper contributes to the existing literature by providing empirical evidence on the size of co-operatives in different areas of the world, and by analysing data from approximately 2,000 co-operatives and mutual organizations from fifty-six different countries. These data are taken from the World Co-operative Monitor, a project promoted by the International Co-operative Alliance (ICA) in collaboration with the European Research Institute on Co-operative and Social Enterprises (Euricse). The purpose of the project is to take a step forward in measuring the dimensions of co-operatives and to make an initial attempt at quantifying the economic and social impact of the largest co-operatives worldwide.
Asian Business Systems: Implications and Perspectives for Comparative Business Systems and Varieties of Capitalism Research
Michael A. Witt and Gordon Redding
This chapter of the Oxford Handbook of Asian Business Systems presents a synthesis and summary of the preceding chapters. It undertakes an institutional comparison of thirteen major Asian business systems—China, Hong Kong, India, Indonesia, Japan, Laos, Malaysia, the Philippines, Singapore, Korea, Taiwan, Thailand, and Vietnam—with one another and five major Western economies—France, Germany, Sweden, UK, and the USA. We find five major types of Asian business systems: (post-)socialist, advanced city, emerging South-East Asian, advanced North-East Asian, and Japanese. Except Japan, all Asian forms of capitalism are distinct from Western types. We conclude that the Varieties of Capitalism dichotomy is not applicable to Asia; the existing major frameworks do not capture all Asian types of capitalism; and Asian business systems (except Japan) cannot be understood through categories identified in the West. Our analysis further suggests a need to invest in research on social capital, culture, informality, and multiplexity.
Gordon Redding and Michael A. Witt
This concluding chapter of the Oxford Handbook of Asian Business Systems presents implications growing out of the handbook, for managers working across the business systems of Asia. It focuses on eight areas: understanding the business context; regional organization; the problem of ‘same bed, different dreams’; trust, mistrust, and corruption; employment relations; finance; government involvement; and the contrast between modern and traditional societies. For each of these areas, the chapter summarizes the key insights relevant to managerial practice and links them to common issues in Asian varieties of capitalism.
This chapter outlines the creation and development of the Australian Future Fund (FF), showing how and why policy makers adopted this option to manage the challenges presented by the “good economic fortune” that occurred in Australia from the mid-1990s to 2010. It discusses the politics behind the governing structure of the FF, which is copied from its neighbor, New Zealand. Despite its initial emphasis on independence, political influence was inevitable when selecting and appointing the chairman of the Board of Guardians. The chapter examines the two key issues of “ethical investment” and “ethical operation” and shows the difficult balance of demands between diverse constituents; it identifies the space created by the expectation that the FF will behave in a similar fashion of all profit-maximization investors.
Solee Shin and Gary G. Hamilton
This article examines the changes that have occurred in the domestic economies of Japan, Taiwan, and Korea in the past two decades. It examines, first, the process through which these three economies have changed from relatively insulated manufacturing economies to multi-sector economies whose capacities are closely tied to regional and global economic currents. It then examines how these economies have gone through major economic events—recessions, depressions, and global economic crises—and how these changes have led business groups to refocus on domestic markets. It particularly focuses on the development of the retail sector of these economies, on the adoption of lean retailing techniques, and on the variation in business strategies across the three markets. This examination shows how firms and business groups structure the economies of which they are part. The article contributes to the literature on business systems and varieties of capitalism.
Pacey Foster and Richard E. Ocejo
Brokerage roles in creative industries have been widely recognized but rarely studied systematically. In the research that has been done, the term gatekeeper has been used to define actors at many different positions in the networks that connect creative producers with audiences for their products. Using the concept of brokerage from social network theory, we clarify existing research on gatekeepers and cultural intermediaries by distinguishing among different structural positions, functions and motivations of brokers in creative industries. In addition to the familiar tertius gaudens and tertius iungens orientations identified by Burt (1992) and Obstfeld (2005), we add a third tertius transferens (‘the third who translates’) brokerage motivation which captures the translation and symbolic work of intermediaries in creative industries. We offer several empirical examples from the music industry and new service professions that highlight unanswered questions about the operation of modern cultural brokers.
Eduardo Fracchia, Luiz Mesquita, and Juan Quiroga
This article presents the origins and recent evolution of Argentine business groups. It provides a brief basic profile of these business groups in terms of size, ownership, governance, and structure. For that, this article reviews the origins and evolution of business groups, addressing in particular the way they have responded to recent transformations in the business environment. In short, this article is intended to offer research on an exploratory basis on the experience of business groups in emerging countries, in an attempt to enrich the understanding of their strategic decisions and behaviors. One interesting feature of this study is that it combines qualitative and quantitative data, collected both through in-depth interviews and from public information sources on Argentine business groups.