Session 116

Emerging Market Institutional Reform

Track A

Date: Saturday, March 12, 2011

 

Time: 15:45 – 17:00

Paper

Room: Room 1-D


Session Chair:

  • Sergio Forte, University of Fortaleza

Title: Economic and Political Transitions and Corporate Political Strategy in Emerging Countries: Evidence from Chile

Authors

  • Marcelo Bucheli, University of Illinois
  • Erica Salvaj, University of Desarrollo

Abstract: In this paper we study the appointment of directors with political ties to the incumbent government as a corporate political strategy. By studying both domestic and multinational corporations operating in an emerging economy with recent drastic economic and political transitions and powerful business groups (Chile), we attempt to determine what type of firms are more inclined to follow this kind of political strategy and whether doing this helps the firms to improve their economic performance. We find that the firms more likely to appoint directors linked to the incumbent government are those that did not benefit from the previous regime and multinationals originating in countries with relatively high state intervention in the economy. We also find that having directors linked to the incumbent government does not have a significant effect on the companies’ performance, while having directors linked to the opposition party has a positive effect on performance.

Title: Reforms and Multilatinas

Authors

  • Luis Dau, Northeastern University

Abstract: I study the internationalization strategy response of Latin American multinational firms (or multilatinas) to pro-market reforms. I argue that these firms tend to increase their profitability by establishing multinational operations in response to pro-market reforms, because doing so allows them to utilize and upgrade their knowledge capabilities to increase their economies of scale, reduce their costs, and increase their sales. However, I propose that the benefits are greater in the short term for firms that establish operations in equally or less developed countries relative to their home market, whereas they are greater in the long term for firms that establish operations in more developed countries. I test these predictions on a panel of the largest firms from Latin America.

Title: Service Characteristics, Deregulation, and Firm reputation: Comparing Relecom and Banking Industries in Latin America

Authors

  • Keith Kelley, Florida International University
  • Kun Yang, Central Michigan University
  • William Newburry, Florida International University

Abstract: This paper explores the effect of service characteristics on firm reputation in the context Latin America, a region characterized by regulatory system reform and deregulation. Using data from the Reputation Institute, the authors compare individual assessments of firm reputation in the Telecom and Banking industries. It is argued that the supposed negative impact of reform on reputation assessments will not be uniform due to the different nature of the services provided by telecom and banking firms. The authors hope to show that when discordance is created by deregulation, as it has been with credence-type services such as banking, firms will have lower individual reputation assessments than in experience-type services such as telecommunications. This relationship is expected to be moderated by individual-level and country-level characteristics.

Title: The Effects of Institutional Changes on Business Landscapes: Evidence From Brazil

Authors

  • Rodrigo Bandeira-de-Mello, Getulio Vargas Foundation
  • Carlos Caldeira, Insper
  • Rosilene Marcon, Itajai Valley University
  • David Kallas, Insper

Abstract: Business landscapes are a way of describing how clustered firm performance varies across industries in a country (Ghemawat, 2000). Despite the fact that the importance of industry effects has been empirically examined (Rumelt, 1991; McGahan and Porter, 1997), there is still an empirical gap concerning how institutional changes affect the configuration of business landscapes. Intititutional changes are typical to emerging markets. From the hyperinflation era in the 1980s to monetary stabilization and liberalization in the 1990’s, institutional change is an important part of business life. We propose to fill this empirical gap using evidence from Brazil. In this country, the analysis focusing on the importance of industry on performance has had a rapid development since the first half of the 2000’s (Brito and Vasconcelos 2004, 2005).

All Sessions in Track A...

Fri: 11:30 – 12:45
Session 103: CSR and Environmental Issues in Emerging Markets
Session 111: Performance Issues
Session 114: Internationalization Strategies
Session 117: Learning in Emerging Markets
Session 120: The Characteristics and Effects of the BRIC Economies as Hubs for Regional Economic Development
Fri: 14:15 – 15:30
Session 102: Resources in Emerging Markets
Session 106: Multilatina FDI Strategies
Session 110: Global Competition
Session 112: CSR and Environmental Issues
Session 124: Research Methods for the Study of Competitive Advantage
Fri: 15:30 – 16:45
Session 101: Institutions in Emerging Markets
Session 104: Alliances and Networks
Session 105: Knowledge and Innovation
Session 108: Knowledge and Resources
Session 115: Developing Country Firms
Sat: 10:45 – 12:00
Session 107: Multilatina Performance
Session 113: CEOs and Other Human Resources
Session 123: Banks and their Influence
Session 125: Reviewing Latin America’s Strategic Role in Global Development
Session 126: Publishing and Not Perishing: Strategies for Publishing in Top Journals
Sat: 15:45 – 17:00
Session 100: Entrepreneurship in Emerging Markets
Session 109: Social Issues and Local Development
Session 116: Emerging Market Institutional Reform
Session 118: Management Innovation in Emerging Markets
Session 127: Teaching in Latin America


Strategic Management Society

Rio De Janeiro