Human Development and Foreign Direct Investment in Developing Countries: The Influence of FDI Policy and Corruption

Summary While policymakers place great importance on foreign direct investment (FDI) in advancing development in developing countries, the links between FDI, economic development, and human development remain tenuous. We attempt to better understand these relationships by looking at the influence of FDI policy and corruption on these relationships. We find that FDI inflows are more strongly positively related to improvement in human development when FDI policy restricts foreign investors from entering some economic sectors and when it discriminates against foreign investors relative to domestic investors. The relationship between FDI and improvement in human development is also more strongly positive when corruption is low.foreign direct investment economic development human development developing countries

The compensatory relationship between technological relatedness, social interaction, and knowledge flow between firms

Knowledge flow between two firms has been found to be enhanced by both technological relatedness and social interaction. We build on work in education psychology and consider how cognitive and social aspects of learning may be compensatory. Using a sample of 61 alliances involving Eli Lilly and its partners, we find the importance of social interaction between Lilly and its partner to partner learning decreased as their technological relatedness increased. Likewise, the importance of technological relatedness to partner learning decreased as social interaction increased. This study provides nuance on the criticality of technological relatedness and social interaction for learning

The influence of R&D investment on the use of corporate venture capital: An industry-level analysis

We consider how internal research and development (R&D) influences the use of corporate venture capital (CVC) and how this relationship varies across industries. We find that, in general, R&D investments increase the number of CVC deals in an industry. We also find that R&D investment has a particularly strong influence on the use of CVC in industries that are growing rapidly and changing technologically. Our analysis provides greater clarity on the relationships involving R&D and CVC in the presence of contingencies by integrating insights of absorptive capacity and real options reasoning.Absorptive capacity R& D Options CVC Exploration

Attitudes Toward Cooperative Strategies: A Cross-Cultural Analysis of Entrepreneurs

Because entrepreneurs mature within a societal context, their attitudes toward cooperation are likely to be influenced by the underlying values of their society. Using a seven-nation sample, we find that entrepreneurs from feminine, collective, and uncertainty-avoiding societies have a greater appreciation for the strategic importance of cooperative strategies than their counterparts. Moreover, entrepreneurs from feminine societies place greater emphasis on partner commonality in terms of objectives and values to ensure cooperative success, whereas those from individualistic societies emphasize contractual safeguards.© 2000 JIBS. Journal of International Business Studies (2000) 31, 591–609

The influence of parent control structure on parent conflict in Vietnamese international joint ventures: an organizational justice-based contingency approach

There has been significant interest in understanding how the distribution of parental control over international joint ventures (IJV) influences IJV outcomes (e.g., parent conflict, survival, performance). Yet, the accumulation of research on the relationship between control structure and IJV outcomes has been somewhat inconclusive and even contradictory. We contribute to this research stream by developing an organizational justice-based contingency model relating parental control structure to parent conflict. We suggest that the level of conflict between IJV parents will depend on the consistencies between the control structure and parents’ contribution of proprietary resources, and between control structure and the parents’ abilities to effectively monitor operations. Our analysis of Vietnamese joint ventures provides some support for our model, and suggests that the relationship between parent control structure and IJV outcomes is perhaps more complex than previously thought. Journal of International Business Studies (2005) 36, 156–174. doi:10.1057/palgrave.jibs.8400121

The evolution and internalization of international joint ventures in a transitioning economy

Although international joint ventures (IJVs) may mature over time and develop competitive viability, they maintain some risk of instability owing to their shared ownership. Such instability can ultimately lead to their internalization by one of the partners. In this study, we consider factors that influence (1) whether IJVs evolve toward becoming a wholly owned subsidiary, and (2) which parent (foreign or local) gains ownership of the venture. We use a sample of Hungarian joint ventures, and find that only when there is both a power imbalance between the parents and high levels of conflict is the likelihood that the joint venture converts to a wholly owned subsidiary enhanced. The extent to which the joint venture has learned from the foreign parent indirectly determines which parent gains full ownership. Extensive knowledge transfer to a joint venture in a transitioning economy combined with high levels of conflict increases the likelihood of the foreign parent gaining full ownership. In contrast, when there is extensive knowledge transfer and low conflict between the parents, the local parent is more likely to internalize the venture. Our results suggest that the relationship between partner power and outcomes in ventures is more complex than originally believed, and is contingent upon the level of conflict between the parents of the IJV