Alain Verbeke

Corporate strategies and environmental regulations: an organizing framework

An emerging subfield of strategic management is that dealing with the natural environment as it affects corporate strategy. To analyze this we organize the literature on environmental regulations and corporate strategy into a new managerial framework. Next we develop a resource-based view of the interaction between firm-level competitiveness and environmental regulations, including the conditions for the use of green capabilities. Finally, we analyze the green capabilities of multinational enterprises within a standard international business model, using firm-specific advantages (FSAs) and country-specific advantages (CSAs). We then use this FSA/CSA configuration to explore hypotheses on environmental regulations, competitiveness, and corporate strategy.

PROMETHEE and AHP: The design of operational synergies in multicriteria analysis.: Strengthening PROMETHEE with ideas of AHP

Abstract This paper discusses the strengths and weaknesses of the Preference Ranking Organisation MeTHod for Enrichment Evaluations (PROMETHEE) and analytic hierarchy process (AHP) methods. Building upon this analysis, recommendations are formulated to integrate into PROMETHEE a number of useful AHP features, especially as regards the design of the decision-making hierarchy (ordering of goals, sub-goals, dimensions, criteria, projects, etc.) and the determination of weights. As a result of mixing basis features of both methods, operational synergies can be achieved in MCA.

A generalized double diamond approach to the global competitiveness of Korea and Singapore

Globalization is very important for small economies such as Korea and Singapore. The single diamond model (Porter, 1990, The competitive advantage of nations) suggests some important determinants for a nations global competitiveness. However, this model is incomplete, mainly because it does not incorporate multinational activities. A new approach, the generalized double diamond model (Moon et al., 1995, in Research in global strategic management: Volume 5: Beyond the diamond) offers some important extensions to Porters original model. To test the validity of these two models this paper evaluates relevant data for both domestic and international variables in the case of Korea and Singapore. The results generally support the generalized double diamond model

Japanese joint ventures with western multinationals: Synthesising the economic and cultural explanations of failure

Many research studies have been done to explain the reasons for the tensions and failures observed in joint ventures between Japanese and Western multinational enterprises. These studies have identified, with various degrees of sophistication, the existence of cultural differences as a primary determinant of failure. Alternative explanations focus upon a transaction cost approach, emphasising opportunism and the danger of cheating in such strategic alliances. This paper synthesises the literature through the development of a new conceptual framework. This framework, which distinguishes between economic and cultural reasons for failure, provides a new lens to view the literature. It is demonstrated that the simple view of cultural incompatibility needs to be replaced by an awareness of the combined impact of cultural and economic forces on the viability of joint ventures between Japanese and Western firms.

The globalization of service multinationals

Abstract Most frameworks used to aid managerial decision- making in multinationals are largely based upon data collected in the manufacturing sector. This article examines how far these frameworks apply to the service sector. Based upon the analysis of nine case studies of multinational service firms, we conclude that ‘transnationalism’ may require different strategic capabilities in the service sector from those in manufacturing.

Global Corporate Strategy and Trade Policy

Corporate strategic management trade policy and corporate stratgey corporate strategy for trade barriers global corporate strategy and the free trade agreement trade and industrial policy in the triad globalization and the national responsiveness an industrial policy for a small open economy industrial policy and global competition - Ontarios experience.

The Transaction Cost Economics Theory of the Family Firm: Family‐Based Human Asset Specificity and the Bifurcation Bias

We develop a transaction cost economics theory of the family firm, building upon the concepts of family–based asset specificity, bounded rationality, and bounded reliability. We argue that the prosperity and survival of family firms depend on the absence of a dysfunctional bifurcation bias. The bifurcation bias is an expression of bounded reliability, reflected in the de facto asymmetric treatment of family vs. nonfamily assets (especially human assets). We propose that absence of bifurcation bias is critical to fostering reliability in family business functioning. Our study ends the unproductive divide between the agency and stewardship perspectives of the family firm, which offer conflicting accounts of this firm types functioning. We show that the predictions of the agency and stewardship perspectives can be usefully reconciled when focusing on how family firms address the bifurcation bias or fail to do so.

The Impact of Added Cultural Distance and Cultural Diversity on International Expansion Patterns: A Penrosean Perspective

International strategy research has identified a variety of multinational enterprise (MNE) expansion patterns. Some MNEs appear to expand internationally at a stable rate, whereas others expand rapidly in one period and then tend to experience slower growth. The latter pattern suggests the occurrence of the Penrose effect. We identified two determinants of these diverging patterns. First, we propose that high levels of added cultural distance (reflecting expansion into new local contexts) during one period, may negatively affect further international expansion because of dynamic adjustment costs. Second, we suggest that managing a network of subsidiaries operating in a set of local contexts with high cultural diversity, increases environmental and internal governance complexity. Extant cultural diversity of the local contexts where the MNE is active in a first period may therefore discourage adding further cultural distance. We test the hypothesized relationships using a panel of 91 German companies.

Multi-criteria analysis and the resolution of sustainable development dilemmas: A stakeholder management approach

We demonstrate that stakeholder-oriented multi-criteria analysis (MCA) can adequately address a variety of sustainable development dilemmas in decision-making, especially when applied to complex project evaluations involving multiple objectives and multiple stakeholder groups. Such evaluations are typically geared towards satisfying simultaneously private economic goals, broader social objectives and environmental targets. We show that, under specific conditions, a variety of stakeholder-oriented MCA approaches may be able to contribute substantively to the resolution or improved governance of societal conflicts and the pursuit of the public good in the form of sustainable development. We contrast the potential usefulness of these stakeholder-oriented approaches – in terms of their ability to contribute to sustainable development – with more conventional MCA approaches and social cost–benefit analysis.

The generalized double diamond approach to international competitiveness

Porters single, home-based, diamond is relevant for larger triad economies like the United States and Japan. For smaller countries a generalized double diamond approach is required. This approach requires analysis of both the home diamond of the small country and the diamond of its largest trading and investment partner. This new framework is applied to Canada and South Korea. The generalized double diamond is a better way to relate foreign direct investment and the role of government to the competitiveness of firms, industries and nations.