Wednesday, January 28, 2015

Call for papers. Special issue of the Journal of World Business

Business Group Affiliation and Internationalization of Emerging Market Firms

Submission Deadline: March 1, 2015

Guest Editors: Ajai Gaur, Jane Lu, Vikas Kumar, Robert Hoskisson

Business groups are prevalent in both developed and emerging markets (Ghemawat & Khanna, 1998) and constitute the dominant organizational form in many emerging markets (Chung & Luo, 2008; Khanna & Rivkin, 2001). Scholars have utilized multiple theoretical perspectives, including institutional economics, sociology and resource-based view to define, characterize and comprehend business groups. Business groups play an important role in emerging markets by filling institutional voids and creating their own internal capital, labor and product markets (Khanna & Palepu, 2000a). There are important differences between group affiliated and unaffiliated firms in emerging economies, in terms of their underlying resource base and embeddedness in the institutional and social fabric of the local market. To add to this complexity, institutional environments in emerging economies are constantly evolving and thereby impacting strategy, particularly of organizations such as business groups that are highly embedded in the domestic context (Hoskisson, Eden, Lau, & Wright, 2000; Hoskisson, Wright, Filatotchev, & Peng, 2013). Internationalization of business group firms under such tumultuous conditions presents a rich context for advancing internationalization theory and, in particular, contributing to a better understanding of the strategic adaptation of emerging market firms.

The extant literature on business group has primarily focused on how groups as a whole and/or firms affiliated to groups perform in their home countries (e.g. Chacar & Vissa, 2005; Chang, Chung, & Mahmood, 2006; Douma, George, & Kabir, 2006; Khanna & Palepu, 2000a; 2000b; Khanna & Rivkin, 2001). There are only a few studies that have explored the impact that affiliation to a business group has on the degree of internationalization of the focal firm, and present inconclusive findings (e.g. Chang, 1995; Kim, Kim, & Hoskisson, 2010). Examining not only institutional differences but also factor market difference between home and host countries also seems to matter with regard to internationalization from emerging economies (Kim, Hoskisson, & Lee, 2014). In the wake of the recent widespread and accelerated internationalization of emerging market firms, including many that are affiliated to larger business groups, the internationalization of business group affiliated firms warrants a deeper and systematic investigation from a variety of theoretical and empirical approaches.

As emerging economies develop and become mid-range economies (Hoskisson, et al., 2013), how does this change the nature of business groups and their internationalization strategies. Do they restructure their portfolios as transaction cost theory would imply (Hoskisson, Johnson, Tihanyi, & White, 2005)? Do they substitute domestic product diversification for more internationalization (Meyer, 2006)? How are they structured and governed differently (Chittoor, Kale, Puranam, 2014) as the country settings change and as they pursue increased innovation and internationalization (Yiu, Hoskisson, Bruton, Lu, 2014)? How does government ownership influence their corporate and internationalization strategies (White, Hoskisson, Yiu, & Bruton, 2008)?

Many studies simply use dummies to distinguish group affiliates from independent firms. This approach assumes all affiliates benefit equally, which is questionable due to differences in value capture.  For example, research shows that affiliate firms differ in their ability to capture benefits from internationalization; in this study more powerful group firms benefit from internationalization compared to less powerful affiliates (Wan, Hoskisson, & Kim, 2004). However, we have limited understanding of differences in power and of value capture among affiliates because few scholars examine heterogeneity among group affiliates.

The special issue solicits scholarly contributions that provide a finer-grained analysis of the internationalization of business group affiliated firms from emerging markets, encapsulating the unique attributes of business groups as well as that of the institutional and cultural contexts where they prosper. The following is an illustrative list of questions:

1.     How is the efficacy of business groups affected due to the rapidly changing institutional environment in EEs?
2.     Business groups are social structures deeply embedded in the broader institutional environment of EEs. How does this embeddnesses affect the internationalization propensity of their affiliates?
3.     What are the similarities and differences between business groups from different emerging economies as well as developed economies and how do these similarities/differences affect their internationalization behavior?
4.     How are business groups organized and managed differently in different country institutional and factor market settings? What organizational transformation are business groups undergoing to respond to the changes in the external institutional environment?
5.     What are the unique resources and capabilities of business groups?  How do these capabilities help group affiliated firms in internationalization?
6.     Are the advantages and/or disadvantages of affiliation to business group context-dependent?  How do individual business affiliate firms benefit more or less from group affiliation?
7.     Do advantages and/or disadvantages transfer to foreign markets when EE firms internationalize their operations?
8.     How do business groups extend their group like structure in foreign markets?
9.     How does the presence of a business group in an industry affect the industry-wide innovation and internationalization?
10.  How do the foreign market entry modes different between group affiliated and unaffiliated firms?

We encourage potential contributors to examine the internationalization of business groups from different theoretical perspectives and empirical approaches, including multi-level models and case studies.  Authors should not merely be testing the existing theories in the context of business groups, but make use of the novel context to develop new theories and explanations, and thereby enrich our understanding of firm internationalization behavior in general, and of business group internationalization behavior in particular.

Submission Process:

By March 1, 2015 all manuscripts should be submitted using the online submission system.  The link for submitting manuscript is:

To ensure that all manuscripts are correctly identified for consideration for this Special Issue, it is important that authors select ‘SI: Business Groups’ when they reach the “Article Type” step in the submission process.

We may organize a workshop designed to facilitate the development of papers. Authors of manuscripts that have progressed through the revision process will be invited to it. Presentation at the workshop is neither a requirement for nor a promise of final acceptance of the paper in the Special Issue.

Questions about the special issue may be directed to any of the following guest editors:

Ajai Gaur, Rutgers University, USA   
Jane Lu, University of Melbourne, Australia 
Vikas Kumar, University of Sydney, Australia
Robert E. Hoskisson, Rice University


Chacar, A., & Vissa, B. (2005). Are emerging economies less efficient? Performance persistence and the impact of business group affiliation. Strategic Management Journal,26(10): 933-946.
Chang, S.J. (1995). International expansion strategy of Japanese firms: capability building through sequential entry.  Academy of Management Journal, 38(2): 383-407.
Chang, S., Chung, C., & Mahmood, I.P. (2006). When and how does business group affiliation promote firm innovation? A tale of two emerging economies. Organization Science, 17(5): 637-656.
Chittoor, R., Kale, P., & Puranam, P. (2014). Business groups in developing capital markets:  Towards a complementarity perspective.  Strategic Management Journal, forthcoming.
Chung, C., & Luo, X. (2008). Human agents, contexts, and institutional change: the decline of family in the leadership of business groups. Organization Science, 19(1): 124-142.
Douma, S., George, R., & Kabir, R. (2006). Foreign and domestic ownership, business groups, and firm performance: evidence from a large emerging market. Strategic Management Journal, 27(7): 637-657.
Ghemawat, P., & Khanna, T. (1998). The nature of diversified business groups: a research design and two case studies.  Journal of Industrial Economics, 46(1): 35-61.
Hoskisson, R.E., Eden, L., Lau, C.-M., & Wright, M. 2000. Strategy in emerging economies. Academy of Management Journal, 43: 249–267.
Hoskisson, R. E., Johnson, R. A., Tihanyi, L. & White, R. E. (2005). Diversified business groups and corporate refocusing in emerging economies. Journal of Management31: 941-965.
Hoskisson, R.E., Wright, M., Filatotchev, I., Peng, M. (2013). Emerging multinationals from mid-range economies: The influence of institutions and factor markets. Journal of Management Studies, 50(7): 1295-1321.
Khanna, T., & Palepu, K. (2000a). Is group affiliation profitable in emerging markets? An analysis of diversified Indian business groups. Journal of Finance, 55(2): 867-891.
Khanna, T., & Palepu, K. (2000b). The future of business groups in emerging markets: long-run evidence from Chile. Academy of Management Journal, 43(3): 268-285.
Khanna, T., & Rivkin, J.W. (2001). Estimating the performance effects of business groups in emerging markets. Strategic Management Journal, 22(1): 45-74.
Kim, H., Hoskisson, R.E., & Lee, S.-H. (2014). Why strategic factor markets matter: ‘New’ multinationals’ geographic diversification and firm profitability. Strategic Management Journal, Forthcoming.
Kim, H., Kim, H., & Hoskisson, R.E. (2010). Does market-oriented institutional change in an emerging economy make business-group-affiliated multinationals perform better? An institution based view. Journal of International Business Studies, 41: 1141-1160.
Meyer, K.E. (2006). Globalfocusing: From domestic conglomerate to global specialist. Journal of Management Studies, 43(5): 1109-1144.
Kim, H., Hoskisson, R. E. & Wan, W. P. 2004. Power dependence, diversification strategy and performance in keiretsu member firms, Strategic Management Journal, 25: 613-636.
White, R. E., Hoskisson, R. E., Yiu, D. & Bruton, G. (2008). Employment and market innovation in Chinese business group-affiliated firms: The role of group control systems,Management and Organization Review, 4: 225-256.
Yiu, D. Hoskisson, R. E., Bruton, G. & Lu, Y. (2014). Dueling institutional logics and the effect on strategic entrepreneurship in Chinese business groups. Strategic Entrepreneurship Journal, 8(3): 195-213.

Monday, January 26, 2015

Call for papers. Special Issue of the European Journal of International Management (EJIM)

European Journal of International Management (EJIM)



Guest Editors

  • Pervez N. Ghauri, King’s College, UK 
  • Byung Il Park, Hankuk University of Foreign Studies, South Kore


As globalization intensifies and new middle classes emerge in most markets, multinational enterprises (MNEs) have significantly increased their international business efforts. The recorded figure for 2010 revealed a more than triple increase of the worldwide foreign direct investment (FDI) activities since the year 2000, amounting to US$20.4 trillion (UNCTAD 2011). The reason for the consistent expansion in MNEs foreign operations is closely associated with the increased realization that the presence of foreign firms is beneficial for both home and host countries. One view is that MNEs possessing sophisticated knowledge often function as a conduit for local firms to acquire foreign technology and know-how. In addition, MNEs also help in the creation of employment opportunities and an increase of exports strengthening the balance-of-payments position of the local economies (Park, 2011; Park and Ghauri, 2011). Likewise, home economies of MNEs achieve market expansion and learn about foreign markets.

However, some scholars (e.g., Chang, 2004; Ziegler, 2005) have shed light on the negative aspects of MNE operations, and even argue that MNEs are one of the primary obstacles inhibiting economic growth in developing countries. The explanations given by these scholars, proposing negative impacts are the following; often MNE activities are too vitalized and excessive, foreign firms attempt to dominate the market they enter and present a challenge to national sovereignty. Moreover, the aggravation of local competition against MNEs inevitably culls locally grown enterprises, which results in the deterioration of employment. In particular, MNEs re-invest only a fraction of their revenues in local economies and drain positive effects from both capital injections and the balance of payments. This leads to serious reductions in foreign exchange reserves, forces local governments to borrow more foreign debt and pushes the local economy into a vicious economic circle. These negative effects cause hardship for local governments and negatively influence their investments in infrastructure, education and technology development. In this vein, they suggest that MNE operations are not much different from the establishment of colonies.

A key problem is that it is perhaps hard to say that an unlimited open-door toward MNEs and limitless competition based on market principles is the only correct answer for economic growth. In other words, we cannot merely overlook the adverse aspects of MNEs, and need to practically assess the value of foreign investment. There is a general consensus that the fundamental goals and aims of MNEs are to pursue corporate profits and increase organizational competitiveness in overseas markets, and thus such gloomy opinions about MNEs are unavoidable to some extent. In this vein, it is time to think about the ways to lessen the skeptical attitudes of FDI by identifying the role of MNEs in local market developments. We also suggest that the negative impression of FDI might be significantly reduced if MNEs engage in actions that go beyond their direct economic and financial interests, involve themselves in activities that are not required by the law but further social good and use their internal resources in ways to benefit local markets through committed participation as members of society.

Taken together, the objective of this special issue is to bring both theoretical and empirical advancements examining the role of MNEs in developing local markets in various areas (e.g., economic, social, institutional and ethical developments).

Subject coverage

We seek both theoretical and empirical papers that may address, but are not limited to, the following list of potential research questions:

  • How does FDI function as a vehicle to enhance economic development in local markets? Does FDI from MNEs based in advanced economies trigger economic growth in developing countries in the long term?
  • Who obtains more benefits from inward FDI between advanced and developing countries? Are there avenues for MNEs based in advanced economies to help developing countries to promote economic growth?
  • Are there any different patterns of economic development through FDI between advanced and developing countries? What implications can be drawn from countries that have successfully leapfrogged into better economic status?
  • What are the key factors promoting the positive spillover effects of FDI in developing economies?
  • In the perspective of developing countries, what are the primary conditions that inhibit the negative economic outcomes from inward FDI?
  • How does FDI contribute to social evolution, particularly in emerging and developing countries?
  • What is the effect of profit remittance by MNEs in the local market economy? What encourages MNEs to re-invest profits in local markets?
  • What motivates corporate social responsibility (CSR) practices in foreign markets? Is there any particular relationship between the level of foreign CSR and economic development in emerging and developing countries?
  • What facilitates knowledge transfer from advanced to developing economies through FDI?
  • Is there a correlation between FDI types (e.g., ‘vertical versus horizontal’ or ‘export-driven versus market-seeking’) and economic contributions in emerging and developing countries?


Chang, H-J. (2004), Globalization, economic development and the role of the State, London, NY: Zed Books.

Park, B. I. (2011), “Knowledge transfer of multinational enterprises and technology acquisition in international joint ventures”, International Business Review, Vol. 20, pp. 75-87.

Park, B. I. and Ghauri, P. N. (2011), “Key factors affecting acquisition of technological capabilities from foreign acquiring firms by small and medium sized local firms”, Journal of World Business, Vol. 46, pp. 116-125.

UNCTAD (2011). World investment report: Non-equity modes of international production and development. Geneva: United Nations.

Ziegler, J. (2005), L'empire de la honte, Paris: Fayard.

Notes for Prospective Authors

Submitted papers should not have been previously published nor be currently under consideration for publication elsewhere.
All papers are refereed through a peer review process. A guide for authors, sample copies and other relevant information for submitting papers are available on the Author Guidelines page.

Deadlines for submission

  • Submission of Manuscripts: April 30, 2015
  • Notification to Authors: July 1, 2015
  • Final Versions Due: December 1, 2015
  • The issue is published: May 2016

Editors and Notes

All papers must be submitted online. To submit a paper, please go to Online Submissions of Papers. If you experience any problems submitting your paper online, please, describing the exact problem you experience. (Please include in your email the title of the Special Issue, the title of the Journal and the names of the Guest Editors).

Guest Editor(s) contact details:

Dr. Pervez N. Ghauri
King’s College London, Department of Management, 150 Stamford Street, London, SE1 9NH, UK
Tel: 00-44-(0)20-7848-4122, Email:

Dr. Byung Il Park
Hankuk University of Foreign Studies, College of Business Administration, 270, Imun-dong, Dongdaemun-gu, Seoul, 130-791, South Korea
Tel: 00-82-(0)10-4157-3532, Email: