Managing Transnational Firms: Resources, Market Entry and Strategic Alliances

285 Pages·2002·3.96 MB·English

by  Michael A. Hitt

LIST OF CONTRIBUTORS
Jaideep Anand University of Michigan Business School,
University of Michigan, USA
Africa Ari~o IESE, Universidad de Navarra, Barcelona,
Spain
Christopher A. Bartlett Harvard Business School, Harvard
University, USA
Jeanette N. Cleveland Department of Psychology, Pennsylvania
State University, USA
Deepak K. Datta School of Business, University of Kansas,
USA
Yves Doz INSEAD, France
Sumantra Ghoshal London Business School, London, UK
Patrick Gunnigle Department of Personnel and Employment
Relations, University of Limerick, Ireland
Noreen Heraty Department of Personnel and Employment
Relations, University of Limerick, Ireland
Pol Herrmann College of Business, Iowa State University,
USA
Alfred M. Jaeger Faculty of Management, McGill University
Montreal, Quebec
Masaaki Kotabe Institute of Global Management Studies,
Temple University, USA
Gianni Lorenzoni Faculty of Economics, University of Bologna,
Italy
vii
VIII ...
Michael Morley Department of Personnel and Employment
Relations, University of Limerick, Ireland
Stephen L. Mueller Department of Management, Texas Christian
University, USA
Kevin R. Murphy Department of Psychology, Pennsylvania
State University, USA
Abdul A. Rasheed College of Business Administration,
University of Texas at Arlington, USA
Peter Smith Ring College of Business Administration, Loyola
Marymount University, USA
Alan M. Rugman Kelley School of Business, Indiana
University, USA
Anisya S. Thomas Department of Management and International
Business, Florida International University,
USA
Jos~ de la Torre The Alvah .H Chapman Graduate School of
Business, Florida International University,
USA
Srilata Zaheer Carlson School of Management, University
of Minnesota, USA
EDITORIAL BOARD
Paul Beamish EdwinM iller
ytisrevinU of nretseW Ontario ytisrevinU of Michigan
Schon Beechler Motohiro Morishima
Columbia University Hitotsubashi University
Michael Bond Nancy Napier
Chinese University of Hong Kong Boise State University
Tailan Chi Richard Peterson
University of Illinois ytisrevinU of notgnihsaW
Luis Gomez-Mejia
Joan Ricart i Costa
Arizona State University
IESE
C. R. Hinings
Thomas Roehl
University of Alberta
nretseW notgnihsaW University
Andrew Inkpen
Kendall Roth
:dribrednuhT American The
University of South aniloraC
Graduate School of International
Management
Richard Steers
ytisrevinU of nogerO
Masaaki Kotabe
elpmeT University
Sully Taylor
James Lincoln Portland State University
yelekreB-CU
David Thomas
Patricia McDougall Simon Fraser University
Indiana ytisrevinU
Anne Tsui
Mona Makhija Hong Kong University of Science and
State Ohio University ygolonhceT
xi
LAIROTIDE DRAOB
X
Rosalie Tung Shaker Zahra
Simon Fraser University Georgia State University
Mary Ann Von Glinow
Florida International University
REVIEWER ACKNOWLEDGMENT
The editors would like to thank the following individuals who have assisted
the AIM editorial board in reviewing manuscripts submitted for the present
volume.
Sharon Alvarez Ohio State University
Jay Anand University of Michigan
Preet Aulakh Temple University
Lance Brouthers University of Texas at San Antonio
Roland Calori E M Lyon
Chao Chen New York University
Peter Dorfman New Mexico State University
Lorraine Eden Texas A&M University
Carolyn Egri Simon Fraser University
Larry Farh Hong Kong University of Science and
Technology
Robert Gephart University of Alberta
Mikki Hebl Rice University
Amy Hillman Arizona State University
Balaji Koka Arizona State University
David Lei Southern Methodist University
Jiatao Li Hong Kong University of Science and
Technology
Robert Liden University of Illinois at Chicago
Daniel McCarthy Northeastern University
Roger Mayer University of Akron
Mark Mendenhall University of Tennessee
Richard Osborn Wayne State University
Les Palich Baylor University
Mike Peng Ohio State University
Betty Jane Punnett University of the West Indies
David Ralston University of Oklahoma
Abdul Rasheed University of Texas at Arlington
Jeffrey Reuer Ohio State University
Dow Scott Loyola University of Chicago
ix
iix REWEIVER TNEMGDELWONKCA
Anju Seth University of Illinois
Ritch Sorenson Texas Tech University
Gregory Stephens Texas Christian University
Linda Stroh Loyola University of Chicago
Justin Tan Creighton University
Brian Toyne St. Mary's University
Linda Trevino Pennsylvania State University
David Waldman Arizona State University
William Wan Thunderbird: The American Graduate School of
International Management
PREFACE
In this volume, we continue the AIM-IMD Distinguished Scholar Award and
Research Forum. This feature recognizes individuals who have made
outstanding scholarly contributions to the study of international management.
AIM publishes in the volume that honors the Scholar(s) a biographical profile
highlighting his/her/their research activities and accomplishments. Addition-
ally, the Scholar(s) prepare an invited article for publication in the same
volume. The editors invite three or more leading researchers in the Scholar's
area of specialization to write commentaries. These commentaries, along with
the Scholar's invited article, are published as a Research Forum.
We are delighted to announce that Professors Christopher Bartlett of Harvard
University and Sumantra Ghoshal of the London Business School are the co-
recipients of the 2001 Distinguished Scholar Award. Professors Bartlett and
Ghoshal received the award at the 2001 Academy of Management Meeting in
Washington DC in August, where they also made a research presentation based
on the invited AIM article. Following are short biographical descriptions of
these two outstanding scholars.
Christopher Bartlett
Professor Christopher Bartlett received an economics degree from the
University of Queensland, Australia (1964), and both the masters and doctorate
degrees in business administration from Harvard University (1971 and 1979).
Prior to joining the faculty of Harvard Business School, he was a marketing
manager with Alcoa in Australia, a management consultant in McKinsey and
Company's London office, and a general manager at Baxter Laboratories'
subsidiary company in France.
Since joining the faculty of Harvard Business School in 1979, his interests
have focused on the strategic and organizational challenges confronting
managers in multinational corporations and on the organizational and
managerial impact of transformational change. He served as faculty chair of the
International Senior Management Program from 1990 through 1993, and as
area head of the School's General Management Unit from 1995 to 1997. Since
1998, he has been faculty chairman of HBS's international executive program,
Program for Global Leadership.
xiii
xiv PREFACE
He has published eight books, including (co-authored with Sumantra
Ghoshal) Managing Across Borders: ehT lanoitansnarT Solution, reissued by
Harvard Business School Press in a new edition in 1998 and named by the
Financial Times as one of the 50 most influential business books of the century;
dna ehT Individualized ,noitaroproC published by HarperBusiness in 1997, and
winner of the Igor Ansoff Award for the best new work in strategic
management. Both books have been translated into more than 10 languages. He
has authored or co-authored over 50 chapters or articles that have appeared in
journals such as Harvard Business Review, Sloan Management Review,
cigetartS Management Journal, Academy of Management Review, dna Journal
oflnternational Business Studies. He has also researched and written over 100
case studies and teaching notes.
Professor Bartlett maintains ongoing research interests in the organization
and management of multinational enterprise and in the impact of radical
corporate transformation on management roles and responsibilities. Currently,
he is building on these research streams as he examines the strategic and
competitive impact of human resource management.
He has been elected by his academic colleagues as a Fellow of both the
Academy of Management and the Academy of International Business. In
addition to his academic responsibilities, he maintains ongoing consulting and
board relationships with several large corporations, particularly in areas
relating to his current research.
Sumantra Ghoshal
Sumantra Ghoshal is Professor of Strategic and International Management at
the London Business School. He also serves as the Founding Dean of the
Indian School of Business in Hyderabad, of which the London Business School
is a partner.
Described by ehT Economist as an Euroguru, Professor Ghoshal's research
focuses on strategic, organizational and managerial issues confronting large,
global companies. He has published nine books, over 50 articles and several
award-winning case studies. Managing Across Borders: ehT lanoitansnarT
,noituloS a book he co-authored with Christopher Bartlett, has been listed in the
Financial Times as one of the 50 most influential management books. ehT
Differentiated Network: Organizing eht Multinational noitaroproC for eulaV
,noitaerC a book he co-authored with Nitin Nohria, won the George Terry
Book Award in 1997. ehT Individualized Corporation, co-authored with
Christopher Bartlett, won the Igor Ansoff Award in 1997, and has been
translated into seven languages. His last book, Managing Radical Change, won
the Management Book of the Year award in India.
ecaferP xv
Sumantra serves as the Chairman of the Supervisory Board of Duncan-
Goenka, a large diversified business group in India, and sits on the boards of
several institutions including Mahindra-British Telecon Ltd, the Lufthansa
School of Business and Swiss Re at Rtischlikon. He also maintains teaching
and consulting relationships with several American, European and Asian
companies.
With doctoral degrees from both the MIT School of Management and the
Harvard Business School, Sumantra serves on the Editorial Boards of several
academic journals and has been nominated to the Fellowships at the Academy
of Management, the Academy of International Business and the World
Economic Forum.
Present Volume
This volume focuses on the transnational firm. Bartlett and Ghoshal prepared
a chapter for this volume entitled, "The Transnational and Beyond: Reflections
and Perspectives at the Millennium." Ending their chapter is a debate about the
future of international management research involving several individuals
invited by Chris and Sumantra, to include Julian Birkinshaw (London Business
School), Yves Doz (INSEAD), Eleanore Westney (MIT) and a friend, Simon
Caulkin. At our invitations, three leading scholars in the international
management field were asked to comment on Bartlett and Ghoshal's work as
well as to add their perspectives on future international management research.
The three scholars providing commentary are Michael Kotabe (Temple
University), Alan Rugman (Indiana University) and Srilata Zaheer (University
of Minnesota). Each of these scholars prepared an interesting and thought-
provoking chapter.
The present volume also presents five other articles selected through a
double-blind review process among the manuscripts submitted. Each of these
articles makes a contribution to the main theme of the book. Together, they
cover an interesting set of topics in international management studies,
including: process issues and the evolution of collaboration in the management
of international strategic alliances (alliances), the antecedents and outcomes
from international entry modes (market entry), examination of the localization
of HRM practices in American and European multinationals (resources), and
the cultural, economic and political effects on national entrepreneurial potential
(resources). These articles, along with the four Research Forum papers, present
a rich diversity of theoretical and methodological approaches. They also
represent the state of the art and some of the best thinking in the field on
managing transnational firms focused on resources, market entry and
alliances.
xvi ECAFERP
We hope you will enjoy the exciting works published in the present
volume.
Michael A. Hitt
Joseph L. C. Cheng
Series Co-editors