IMS-6v04 Ph.D.

Seminar in International Business

Fall, 2007

Instructor: Professor Seung-Hyun Lee

Monday 2:30 – 5:15 SOM 2.901
Office Number: SOM 4.409

Tel: 972-883-6267
e-mail: lee.1085@utdallas.edu
Office hours: by appointment.

Course Description:

This course is designed to provide a strong foundation for critical thinking in the area of
international business. This course will be run as a seminar examining theories and empirical
studies of international business. The course will be inter-disciplinary. Many non-technical
economics and finance articles are included in the reading list. To avoid overlap with the
International Management course taught by Professor Jane Salk, this seminar will not cover
theory such as Dunning’s eclectic paradigm and topics such as MNC structure, alliances, and
culture.

We may invite more advanced students to share their papers that they have written in their 2nd
years in the program related to the IB topics. (Kenny Oh and Yasu Yamakawa).

Session coordination and integration:

One student volunteer will act as an integrator for each session. The student assigned as the 'integrator'
for a session will not be required to turn in a paper summary for that session.

Reviewing for other class members:

A 2-4 page blind review of the research proposal is a required element of this course (due by September
24th 5:00 PM). We will discuss the elements of good reviewing before the review is due.

Research Project:

Each student will be required to turn in a research proposal on September 24th before the class and
research paper by November 28th 5:00 PM. The research project will involve writing a major
publishable paper focusing in IB/IM issues. The research paper should be an empirical paper of
15 – 20 pages long plus references. It is going to be an empirical paper without data and results
sections even though it is encouraged to include empirical analyses (especially for the second
years). The format required by the Academy of Management Journal is recommended. You will
need to read beyond the readings in the syllabus to write a research paper. Ideally, you may work
on the empirical side of the paper during the winter break and send it to major conferences such
as Academy of International Business or Academy of Management. Project already underway can

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be extended as a research paper for the class. The topic of the research paper is not limited to the
topics we cover in class. However, the research paper has to have international dimensions.

Collaboration with your colleagues in writing research projects is discouraged to minimize free-
riding problems. Project underway with faculty member(s) is valid for a research paper.

** Late paper will not be accepted **

Given that theoretical pieces are hard to publish, you may want to consider doing an empirical
study. You are free to use any datasets you may have access to. Just in case some of you do not
have any source of data, but need some datasets, I provide one source of datasets below.

http://econ.worldbank.org/WBSITE/EXTERNAL/EXTDEC/EXTRESEARCH/0,,contentMDK:2
0388241~menuPK:665266~pagePK:64165401~piPK:64165026~theSitePK:469382,00.html

It includes large number of datasets that the World Bank compiled. You are more than welcome
to make full use of the free data.

Especially WBES data would be helpful. http://info.worldbank.org/governance/wbes/

You may also want to visit www.worldbank.org/wbi/governance/data

Research Project Presentation:

On November 26th, all students are required to present his or her research paper in front of the
class. Each student will have 15 minutes for presentation and 5 minutes for Q & A following the
Academy of Management presentation convention.

Structure and Responsibilities:

To encourage learning, students are expected to actively participate in class discussions. You
should read all required readings before the class time. Basic readings are for those who do not
have enough background to understand the required readings. You should be ready to talk about
the main message, methodological sophistication, and possible extension of the papers under
required readings.

Each week, a specific paper on which they will lead the class discussion will be individually assigned. A
one to two page (typed, single spaced) critical summary of the assigned paper will be required from each
student, before class (Bring enough paper summaries to the class to distribute to all the participants).
The summary should include:

1. What is the main research question of the paper? Is this an important question?
2. What are the assumptions in the paper? Are they valid? Why or why not?
3. How is the paper designed? Is the empirical method appropriate?
4. What are the conclusions of the paper? Does the paper answer the questions proposed?
5. What is the possible way of extension? How would you proceed?

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 6. How would you position the article among the assigned readings or in the field?

The integrator will first briefly tie together the day's readings and place them in the context of the field.
Then the integrator will facilitate discussions for each paper after summaries by assigned students.

Occasionally the instructor may give quizzes for the assigned readings of the class at the beginning of the
class. Not all the quizzes will be graded. However, some of them will be graded and will count toward
course grade.

Required textbook:

North, D. 1990. Institutions, institutional change, and economic performance. Cambridge:

Harvard University Press.

Readings:

Required readings are attached to this syllabus. You must come to each class after thoroughly
reading all the required readings. Basic readings are for those who do not have background
knowledge for the topics. Recommended readings are for those who want to pursue more into the
topics. Most readings can be downloaded from library search engines such as JSTOR or
Business Source Premier. They are also available for copying from the instructor.

Evaluation:

Your final grade will be determined as follows.

Research paper: 50%

Attendance, coming late to classes, and class participation: 20%
Research proposal review: 10%
Class quizzes: 20%

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1. International Business and Institutions (8/20/07)

Integrator: Seung-Hyun Lee

Required readings:

Cheng, J. 1994. Notes: On the concept of universal knowledge in organizational science:

Implications for cross-national research, Management Science, 40(1): 162-168.

Shenkar, O. and M. von Glinow (1994). Paradoxes of organizational theory and research: Using
the case of China to illustrate national contingency. Management Science, 40(1): 56-71.

North, D. 1990. Institutions, institutional change, and economic performance. Cambridge:

Harvard University Press.

2. Institutional Differences and Institutional Change (8/27/07)

Integrator:_______________

Required readings:

Rajan, R., & Zingales, L. 2003. The great reversals: The politics of financial development in the
20th century. Journal of Financial Economics, 69(1): 5-50.

La Porta, R., Lopez-de-Silanes, F., Shleifer, A., & Vishny, R. 1997. Legal determinants of
external finance. Journal of Finance, 52: 1131-1150.

Greenwood, R., & Hinings, C. R. 1996. Understanding radical organizational change: Bringing
together the old and the new institutionalism. Academy of Management Review, 21: 1022-1054.

Khanna, T., & Rivkin, J. 2001. Estimating the Performance Effects of Business Groups in
Emerging Markets. Strategic Management Journal, 22: 45-74.

Globerman, S., & Shapiro, D. 2003. Governance infrastructure and US foreign direct investment.
Journal of International Business Studies, 34(1): 40-65.

Peng, M., Lee, S., & Wang, D. 2005. What determines the scope of the firm?: An institutional
perspective, Academy of Management Review, 30(3), 622-633.

Recommended Readings:

Newman, K. 2000. Organizational transformation during institutional upheaval. Academy of

Management Review, 25: 602-19

Rajan, R., & Zingales, L. 1998. Financial dependence and growth. American Economic Review,
88: 559-586

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Stulz, R., & Williamson, R. 2003. Culture, openness, and finance. Journal of Financial
Economics, forthcoming.

Biggart, N., & Guillen, M. 1999. Developing Difference: Social Organization and the Rise of the
Auto Industries of South Korea, Taiwan, Spain, and Argentina.” American Sociological Review,
64(5):722-747.

DiMaggio, P., & Powell, W. 1991. Introduction. In Powell W, DiMaggio P. (eds.). The new
institutionalism in organizational analysis. Chicago: University of Chicago Press.

Zucker, L. G. 1988. Where do institutional patterns come from? Organizations as actors in social
systems, In L. G. Sucker (Ed.), Institutional patterns and organizations: Culture and
environment: 23-49. Cambridge, MA: Ballinger

Scott, R. 2001. Institutions and Organizations, Sage. (1995 version is also doable)

9/3/07 – Labor day (no class)

3. Industry and Competition (9/10/07)

Integrator:_______________

Required readings:

Hanssens, D., & Johansson, J. 1991. Rivalry as synergy? The Japanese automobile companies'
export expansion. Journal of International Business Studies, 22(3): 503-526.

Martin, X., Mitchell, W., & Swaminathan, A. 1995. Recreating and extending Japanese
automobile links in North America. Strategic management Journal, 16: 589-619.

Nohria, N., & Garcia-Pont, C. 1991. Global strategic linkages and industry structure. Strategic
Management Journal, 12: 105-124.

Ito, K. 1997. Domestic competitive position and export strategy of Japanese manufacturing
firms: 1971-1985. Management Science, 43(5): 610-622.

Sakakibara, M., & Porter, M. 2001. Competing at home to win abroad: evidence from Japanese
industry, Review of Economics and Statistics, 83(2)-311-322.

Recommended Readings:

Scherer, F. M. 1980. The price and profit consequences of market structure. In Industrial Market
Structure and Economic Performance (2nd ed.). Chicago: Rand McNally, Chapter 9.

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Martin, X., Swaminathan, A., & Mitchell, W. 1995. Organizational evolution in the
interorganizational environment: Incentives and constraints on international expansion strategy.
Administrative Science Quarterly, 43: 566-601.

Teece, D. 1985. Multinational enterprise, internal governance, and industrial organization.

American Economic Review, 75: 233-238.

Porter, M. 1979. The structure within industries and companies' performance. Review of
Economics and Statistics, 61, 214-227.

Caves R. 1998. Industrial organization and new findings on the turnover and mobility of firms.
Journal of Economic Literature 36: 1947-1982.

Knickerbocker, F. 1973. Oligopolistic reaction and the multinational enterprise. Harvard

Univeristy Press. Cambridge, MA.

Mascarenhas, B. 1992. Order of entry and performance in international markets. Strategic

Management Journal, 13: 499-510.

Hennart, J., & Park, Y-R. 1994. Location, governance, and strategic determinants of Japanese
manufacturing investments in the United States. Strategic Management Journal, 15: 419-436.

Basic Readings:

Caves, R.E. 1980. Industrial organization, corporate strategy and structure. Journal of Economic
Literature, 18: 64-92.

Porter, M. 1981. The contributions of industrial organization to strategic management. Academy of

Management Review, 6, 4, 609-620.

Caves, R., & porter, M. 1977. From entry barriers to mobility barriers: Conjectual decisions and
contrived deterrence to new competition. Quarterly Journal of Economics, 91: 241.262.

4. Internalization/ Transaction Cost Economics (9/17/07)

Integrator:_______________

Required readings:

Anderson, E. and H. Gatignon (1986). Modes of foreign entry: A transaction cost analysis and
propositions. Journal of International Business Studies, 17: 1-26.

Hill, C., & Kim, W. 1988. Searching for a dynamic theory of the multinational enterprise: A
transaction cost model. Strategic Management Journal, 9: 93-104.

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Hennart, J., & Park, Y-R. 1993. Greenfield vs. acquisition: The strategy of Japanese investors in
the United States. Management Science, 39: 1054-1070.

Recommended Readings:

Buckley, P. and M. Casson (1998). Analyzing foreign market entry strategies: Extending the
internalization approach. Journal of International Business Studies, 29: 539-562

Hill, C., P. Hwang, and W. C. Kim (1990). An eclectic theory of the choice of international entry
mode. Strategic Management Journal, 9: 93-104.

Teece, D. 1986. Transactions cost economics and the multinational enterprise: An assessment.
Journal of Economic Behavior & Organization, 7: 21-45.

Chang, S., & Choi, U. 1988. Strategy, Structure, and Performance of Korean Business Group: A
Transactions Cost Approach, Journal of Industrial Economics, 37(2): 141-158.

Williamson, O. 1996. Economic Organization: The Case for Candor. Academy of Management
Review, 21, 1, 48-57.

Rugman, A., & Verbeke, A. 1992. A note on the transactional solution and the transaction cost
theory of multinational strategic management. Journal of International Business Studies, 23:
761-771.

Ito, K. 1995. Japanese spinoffs: Unexplored survival strategies. Strategic Management Journal,
16(6): 431-446.

Basic Readings:

Coase, R. 1937. The Nature of the Firm. Economica, 4, 386-405.

Williamson, O. 1979. Transaction Cost Economics: The Governance of Contractual Relations.

Journal of Law and Economics, 22, 233-261.

Klein, B.,Crawford, R., & Alchian, A. 1978. Vertical Integration, Appropriable Rents, and the
Competitive Contracting Process. The Journal of Law and Economics, 297-326.

Ouchi, W. 1980. Markets, Bureaucracies, and Clans. Administrative Science Quarterly, 25, 129-
141.

Alchian, A., & Demsetz, H. 1972. Production, Information Costs, and Economic Organization.
The American Economic Review, 62, 777-795.

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5. Resource-based View (9/24/07)

Integrator:_______________

Required readings:

Morck, R., & Yeung, B. 1991. Why investors value multinationality. Journal of Business, 64(2):
165-187.

Makhija, M. 2003. Comparing the resource-based and market-based views of the firm: Empirical
evidence from Czech Privatization. Strategic Management Journal, 24 (5): 433 - 451

Guillen, M. 2000. Business groups in emerging economies: A resource-based view. Academy of

Management Journal, 43: 362-380.

Recommended readings:

Barkema, H., & Vermuelen, F. 1998. International expansion through start-up or acquisition: A
learning perspective. Academy of Management Journal, 41(1): 7-26.

Tallman, S. 1991. Strategic management models and resource-based strategies among MNEs in a
host market. Strategic Management Journal, 12: 69-82.

Chang, S. 1995. International expansion strategy of Japanese firms: Capability building through
sequential entry. Academy of Management Journal, 38: 383-407.

Almeida, P. 1996. Knowledge sourcing by foreign multinationals: Patent citation analysis in the
U.S. semiconductor industry. Strategic Management Journal, 17: 155-165.

Kogut, B. 1991. Country capabilities and the permeability of borders. Strategic Management
Journal, 12: 33-47.

Kogut, B., & Chang, S. 1991. Technological capabilities and Japanese foreign direct investment
in the United States. Review of Economics and Statistics, 12: 33-47.

Penrose, E.T. 1959. The Theory of the Growth of the Firm. Oxford: Blackwell, 1-87.

Basic readings:

Lippman, S. and R. Rumelt. 1982. Uncertain imitability: An analysis of interfirm differences in

efficiency under competition. Bell Journal of Economics, 13, 418-438.

Barney, J. 1986. Strategic factor markets: Expectations, luck, and business strategy. Management
Science, 32, 1231-1241.

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Barney, J. 1991. Firm resources and sustained competitive advantage. Journal of Management, 17,
1, 99-120.

Conner, K. 1991. An historical comparison of resource-based theory and five schools of thought
within industrial organization economics: Do We Have a New Theory of the Firm Here? Journal
of Management, 17, 121-154.

Wernerfelt, B. 1984. A resource-based view of the firm. Strategic Management Journal, 5, 171-
180.

Dierickx, I. and K. Cool. 1989. Asset stock accumulation and sustainability of competitive
advantage. Management Science, 35, 1504-1511.

Peteraf, M. 1993. The cornerstones of competitive advantage: A resource-based view. Strategic

Management Journal, 14, 179-192.

Amit, R. and P. Schoemaker. 1993. Strategic assets and organizational rent. Strategic
Management Journal, 14, 33-46.

Godfrey, P. C. and C. W. L. Hill. 1995. The problem of unobservables in strategic management

research. Strategic Management Journal, 16, 519-533.

6. Real Options and Flexibility (10/1/07)

Integrator:_______________

Required readings:

Allen L, Pantzalis C. 1996. Valuation of the operating flexibility of multinational corporations,

Journal of International Business Studies 27: 633-653.

Kogut B, Kulatilaka N. 1994. Operating flexibility, global manufacturing, and the option value
of a multinational network. Management Science 40: 123-139.

Reuer J, Leiblein M. 2000. Downside risk implications of multinationality and international joint
ventures, Academy of Management Journal 43: 203-214.

Tang C, Tikoo S. 1999. Operational flexibility and market valuation of earnings. Strategic
Management Journal 20: 749-761.

Hurry, Dileep, 1993, Restructuring in the global economy: The consequences of strategic
linkages between Japanese and U.S. firms, Strategic Management Journal, vol. 14, 69-82.

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Rangan S. 1998. Do multinationals operate flexibly? Theory and evidence, Journal of
International Business Studies 29(2): 217-237.

Beaulieu, M., Cosset, J., & Essaddam, N. 2005. The impact of political risk on the volatility of
stock returns: The case of Canada. Journal of International Business Studies, 36(6), 701-18

Recommended Readings:

Kogut, B. 1991. Joint ventures and the option to expand and acquire. Management Science, 37:
19-33.

Henderson R, Clark K. 1990. Architectural innovation: The reconfiguration of existing product

technologies and the failure of established firms. Administrative Science Quarterly 35(1): 9-30.

Chang, Sea Jin, 1995, International expansion strategy of Japanese firms: Capability building
through sequential entry, Academy of Management Journal, vol. 38, no. 2, 383-407

Chang, Sea Jin, 1996, An evolutionary perspective on diversification and corporate restructuring:
Entry, exit, and economic performance during 1981-89, Strategic Management Journal, vol. 17,
587-611

Chang S, Rosenzweig P. 2001. The choice of entry mode in sequential foreign direct investment.
Strategic Management Journal 22: 747-776.

Kogut B, Kulatilaka N. 1994b. Options thinking and platform investments: Investing in

opportunity. California Management Review 36(2): 52-71.

Kogut B, Kulatilaka N. 2001. Capabilities as real options. Organization Science 12: 744-758.

Campa, J. 1994. Multinational investment under uncertainty in the chemical processing

industries, Journal of International Business Studies, Third Quarter: 557-578.

Rivoli, P., & Salorio, E. 1996. Foreign direct investment and investment under uncertainty.
Journal of International Business Studies, 27: 335-357.

Basic Readings:

Dixit A, Pindyck R. 1994. Investment under uncertainty. Princeton University Press: Princeton,
NJ. (Chapter 1)

McGrath R. G. 1999. Falling forward: Real options reasoning and entrepreneurial failure.
Academy of Management Review 24: 13-30.

Bowman E, Hurry D. 1993. Strategy through the option lens: An integrated view of resource
investments and the incremental-choice process. Academy of Management Review 18:760-782.

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7. Political Connection and Government (10/8/07)

Integrator:_______________

Required readings:

Eden, L., Valdez, L., & Li, D. 2005. Talk softly but carry a big stick: transfer pricing penalties
and the market valuation of Japanese multinationals in the United States. Journal of
International Business Studies, 36(4): 398-414.

Fisman, R. 2001. Estimating the value of political connections. American Economic Review, 91:
1095-1102.

Milner, H., & Yoffie, D. 1989. Between free trade and protectionism: Strategic trade policy and
a theory of corporate trade demands. International Organization, 43 (2): 239-272.

Lenway S, Morck R, Yeung B. 1996. Rent seeking, protectionism and innovation in the
American steel industry. The Economic Journal 106: 410-421.

Anderson, J.1992. Domino dumping, 1: Competitive exporters. American Economic Review,

March: 65-83.

Makhija, M. 1993. Government intervention in the Venezuelan petroleum industry: An empirical

investigation of political risk. Journal of International Business Studies, 24(3): 531-555.

Recommended Readings:

Hanson, B. 1998. What happened to fortress Europe? External trade policy liberalization in the
European Union. International Organization, 52(1): 55-85.

Evans, P. 1995. Embedded autonomy: States and industrial transformation. Princeton: Princeton
University Press.

Wells, L. (1998). Multinationals and the developing countries. Journal of International Business
Studies, 29: 101-114.

Murtha, T., & Lenway, S. 1994. Country capabilities and the strategic state: How national
political institutions affect multinational corporations’ strategies. Strategic Management Journal,
15: 113-29.

Ramamurti R. 2001. The obsolescing “bargaining model”? MNC-host developing country

relations revisited. Journal of International Business Studies 32: 23-39.
Loree D, Guisinger S. 1995. Policy and non-policy determinants of U.S. equity foreign direct
investment. Journal of International Business Studies 26: 281-299.

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Brahm R. 1995. National targeting policies, high-technology industries, and excessive
competition. Strategic Management Journal 16: 71-91.

Brewer, T. L. 1993. Government policies, market imperfections, and foreign direct investment.
Journal of International Business Studies, 24(1): 101-120

Boddewyn, J. J. & Brewer, T. L. 1994. International-business political behavior: New theoretical

direction, Academy of Management Journal, 19(1): 119-143.

8. Diversification (10/15/07)

Integrator:_______________

Required readings:

Hitt, M., Hoskisson, R., & Kim, H. 1997. International diversification: Effects on innovation and
firm performance in product-diversified firms. Academy of Management Journal, 40(4): 767-798.

Wan, W, & Hoskisson, R. 2003. Home country environments, corporate diversification

strategies, and firm performance. Academy of Management Journal, 46(1): 27-35.

Davis, G., Diekmann, K., & Tinsley, C. 1994. The decline and fall of the conglomerate firm in
the 1990s: The deinstitutionalization of an organizational form. American Sociological Review,
59: 547-570.

Hill C. 1983. Conglomerate Performance over the Economic Cycle. Journal of Industrial
Economics 32(2): 197-211.

Geringer, J. Michael; Tallman, Stephen. 2000. Product and international diversification among
Japanese multinational firms. Strategic Management Journal, 21(1): 51-80.

Kogut, B, Walker, G, & Anand, J. 2002. Agency and institutions: National divergence in
diversification behavior, Organization Science, 13(2): 162-178.

Recommended Readings:

Baker, G. 1992. Beatrice: A study in the creation and destruction of value. Journal of Finance,
47: 1081-1119

Kock, C. & Guillen, M. 2001. Strategy and Structure in Developing Countries: Business Groups
as an Evolutionary Response to Opportunities for Unrelated Diversification. Industrial &
Corporate Change, 10(1):1-37

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Markides, Constantinos C.; Ittner, Christopher D. 1994. Shareholder Benefits From Corporate
International Diversification: Evidence From U.S. International Acquisitions. Journal of
International Business Studies, 25(2): 343-267.

Lins, K., & Servaes, H. 2002. Is corporate diversification beneficial in emerging markets?
Financial Management, summer: 5-31.

Pederson, T., & Thomsen, S. 1997. European pattern of corporate ownership: a twelve country
study. Journal of International Business Studies, 28(4): 759-778.

9. Export (10/22/07)

Integrator:_______________

Required readings:

Mansfield, E. 1992. The concentration of capabilities and international trade. International

Organization, 46(3): 731-764.

Sakakibara, M., & Porter, M. 2001. Competing at home to win abroad: evidence from Japanese
industry, Review of Economics and Statistics, 83(2)-311-322.

Ito, K., & V. Pucik. 1993. R&D spending, domestic competition, and export performance of
Japanese manufacturing firms. Strategic Management Journal, 14: 61-75.

Ito, K. 1997. Domestic competitive position and export strategy of Japanese manufacturing
firms: 1971-1985. Management Science, 43(5): 610-622.

Hundley, Greg; Jacobson, Carol K. 1998. The Effects of the Keiretsu On the Export Performance
of Japanese Companies: Help or Hindrance?. Strategic Management Journal, 19(10): 927-937.

Mascarenhas, Briance. 1986. International strategies on non-dominant firms. Journal of

International Business Studies, 17(1): 1-25.

Recommended Readings:

Sullivan, D. 1994. Measuring the degree of internationalization of a firm. Journal of

International Business Studies, 25: 325-342.

Filatochev, I., Dyomina, N., Wright, M., & Ruck, T. 2001. Effects of post-privatization
governance and strategies on export intensity in the former Soviet Union. Journal of
International Business Studies, 32(4): 883-851.

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Bonnaccorsi, A. 1992. On the relationship between firm size and export intensity. Journal of
International Business Studies, 23(4), 605-635.

10. International Entrepreneurship (10/29/07)

Integrator:_______________

Required readings:

Baumol W. 1990. Entrepreneurship: Productive, unproductive, and destructive. Journal of

Political Economy 98(5): 893-921.

Oviatt, B. and P. McDougall (1994). Toward a theory of international new ventures. Journal of
International Business Studies, 25: 45-61.

Busenitz L, Gomez C, Spencer J. 2000. Country institutional profiles: Unlocking entrepreneurial

phenomena. Academy of Management Journal 43: 994-1003.

McDougall P, Oviatt B. 2000. International entrepreneurship: The intersection of two research

paths. Academy of Management Journal 43: 902-906.

McDougall, Patricia P., Scott Shane, and Benjamin M. Oviatt, 1994. Explaining the Formation of
International New Ventures: The Limits of Theories from International Business Research,
Journal of Business Venturing, 9(6): 469-487.

Djankov, S., La Porta, R., Lopex-De-Slanes, F., & Shleifer, A. 2002. The regulation of entry.
Quarterly Journal of Economics, 117: 1-37.

Lee, S., & Peng, M., & Barney, J. 2005. Bankruptcy law and entrepreneurship development: A
real options perspective. Academy of Management Review, 32 (1): 257-272

Recommended Readings:

Landier, A. 2001. Entrepreneurship and the stigma of failure. Paper presented at the New York
University, NY.

Stevenson H, Jarillo J. 1990. A paradigm of entrepreneurship: Entrepreneurial management.

Strategic Management Journal 11: 17-27.

Low, M., & MacMillan, I. 1988. Entrepreneurship: Past research and future challenges. Journal
of Management, 14: 139-161.

11. Institutional Distance (11/5/07)

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Integrator:_______________

Required readings:

Westney E. 1993. Institutionalization Theory and the MNE. In S. Ghoshal and E. Westney (eds.)
Organization Theory and the Multinational Corporation, St Martin’s Press: New York,
pp: 53–76.

Kostova T. 1999. Transnational transfer of strategic organizational practices: A contextual

perspective. Academy of Management Review 24(2): 308–324.

Kostova T, Roth K. 2002. Adoption of an organizational practice by subsidiaries of multinational

corporations: Institutional and relational effects. Academy of Management Journal 45:
215–233.

Kostova T, Zaheer S. 1999. Organizational legitimacy under conditions of complexity: The case
of the multinational enterprise. Academy of Management Review 24: 64–81.

Eden L, Miller S. 2004. Distance matters: Liability of foreignness, institutional distance and
ownership strategy. Theories of the Multinational Enterprise: Diversity, Complexity, and
Relevance. Advances in International Management 16: 187-221.

Xu D, Shenkar O. 2002. Institutional distance and the multinational enterprise. Academy of

Management Review 27(4): 608-618.

12. Invited talks by 3rd and 4th year students (Kenny Oh and Yasu Yamakawa) (11/12/07)

Oh, K., Lee, S. 2007. Bribing Patterns of Multinational Enterprise Subsidiaries Under Dual
Institutional Pressure: A case of corruption in transition economies, working paper

Lee, S., Yamakawa, Y., & Peng, M. 2007. How does bankruptcy law affect entrepreneurship
development around the world? working paper

13. Research project preparation (11/19/07)

Spend time to write term papers

14. Research project presentation I (11/26/07)

Each student will have 15 minutes for presentation and 5 minutes for Q & A following the
Academy of Management presentation convention.

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Each student will have several days to revise the paper reflecting the comments from the
presentations. Research papers are due by November 28th 5:00 PM.

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Sample selection bias: topics in statistics (For research method class – Professor Livia

Markoczy)

Required readings:

Shaver, M. (1998). Accounting for endogeneity when assessing strategy performance: Does
entry mode choice affect FDI survival? Management Science, 44: 571-585.

Hitt, M., Bierman, L., Uhlenbruck, K., & Shimizu, K. (2006). ‘The importance of resources in
the internationalization of professional service firms: The good, the bad, and the ugly’,
Academy of Management Journal, 49: 1137-1157.

Lee, S., Makhija, M., & Paik, Y. 2008. The value of real options investments under abnormal
uncertainty: the case of the Korean economic crisis, Journal of World Business,
forthcoming

Lee, S., Oh, K., & Eden, L. 2007. A residual contract theory or bribery. Working paper

Recommended:

Heckman, J. (1979). ‘Sample selection bias as a specification error,’ Econometrica, 47: 153-161.
Sartori, Anne E. (2003). ‘An estimator for some binary-outcome selection.models without
exclusion restrictions’, Political Analysis, 11:111-138.

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