How much does country matter? An analysis of firms growth options

Journal of International Business Studies

Volumn 39, Issue 3, 2008, Pages 387-405

  Tong, Tony W ^a   Alessandri, Todd M ^b   Reuer, Jeffrey J ^c   Chintakananda, Asda ^d  

^a UNIVERSITY OF COLORADO   (United States)

^b SYRACUSE UNIVERSITY   (United States)

^c UNIVERSITY OF NORTH CAROLINA   (United States)

^d MARQUETTE UNIVERSITY   (United States)

Author keywords

Countries and locations; Growth options; International strategy; Valuable growth opportunities

Indexed keywords

EID: 38349110975     PISSN: 00472506     EISSN: 14786990     Source Type: Journal    
DOI: 10.1057/palgrave.jibs.8400355     Document Type: Article

References (78)

1. Alessandri, T. M., Lander, D. M., & Bettis, R. A. 2007. Strategic implications of valuation methods. Advances in Strategic Management, 24: 473-499.
2. Barro, R. J. 1997. Determinants of economic growth: A crosscountry empirical study. Cambridge, MA: MIT Press.
3. Bartlett, C. A., & Ghoshal, S. 1989. Managing across borders: The transnational solution. Boston, MA: Harvard Business School Press.
4. Bowman, E. H., & Helfat, C. E. 2001. Does corporate strategy matter? Strategic Management Journal, 22(1): 1-23.
5. Bowman, E. H., & Hurry, D. 1993. Strategy through the options lens: An integrated view of resource investments and the incremental-choice process. Academy of Management Review, 18(4): 760-782.
6. Brealey, R. A., & Myers, S. C. 2000. Principles of corporate finance (6th ed.). Boston, MA: Irwin/McGraw-Hill.
7. Brouthers, L E. 1998. Explaining MNC profitability: Country-specific, industry-specific, and country-industry interactive influences. Management International Review, 38(4): 45-361
8. Chang, S. -J., & Singh, H. 2000. Corporate and industry effects on business unit competitive position. Strategic Management Journal, 21 (7): 739-752.
9. de Mooij, M., & Hofstede, G. 2002. Convergence and divergence in consumer behavior, Journal of Retailing, 78(1): 61-69.
10. Dharwadkar, R., George, G., & Brandes, P. 2000. Privatization in emerging economies: An agency theory perspective. Academy of Management Review, 25(3): 650-669.
11. Douglas, S. P., & Wind, Y. 1987. The myth of globalization. Columbia Journal of World Business, 22(4): 19-29.
12. Dunning, J. H. 1993. Multinational enterprises and the global economy. Reading, MA: Addison-Wesley.
13. Dunning, J. H. 1998. Location and multinational enterprise: A neglected factor? Journal of International Business Studies, 29(1): 45-66.
14. Franke, R. H., Hofstede, G., & Bond, M. H. 1991. Cultural roots of economic performance. Strategic Management Journal, 12(Special Issue): 165-173.
15. Gedajlovic, E., & Shapiro, D. 1998. Management and ownership effects: Evidence from five countries. Strategic Management Journal, 19(6): 533-553.
16. Govindarajan, V. J., & Gupta, A. K. 2001. The quest for global dominance. San Francisco: Jossey Bass.
17. Guillen, M. F. 2002. Structural inertia, imitation, and foreign expansion: South Korean firms and business groups in China, 1987-1995. Academy of Management Journal, 45(3): 509-525.
18. Hawawini, G., Subramanian, V., & Verdin, P. 2004. The home country in the age of globalization: How much does it matter for firm performance? Journal of World Business, 39(2): 121-135.
19. Hayes, R. H., & Garvin, D. A. 1982. Managing as if tomorrow mattered. Harvard Business Review, 60(3): 70-79.
20. Hoskisson, R. E., Eden, L., Lau, C. M., & Wright, M. 2000. Strategy in emerging economies. Academy of Management Journal, 43(3): 249-267.
21. Hoskisson, R. E., Cannella Jr., A. A., Tihanyi, L., & Faraci, R. 2004. Asset restructuring and business group affiliation in French civil law countries. Strategic Management Journal, 25(6): 525-539.
22. Hurry, D., Miller, A. T., & Bowman, E. H. 1992. Calls on high-technology: Japanese exploration of venture capital investments in the United States. Strategic Management Journal, 13(2): 85-101.
23. Johnson, J. P., & Lenartowicz, T. 1998. Culture, freedom and economic growth: Do cultural values explain economic growth? Journal of World Business, 33(4): 332-356.
24. Kester, W. C. 1984. Today's options for tomorrow's growth. Harvard Business Review, 62(2): 153-160.
25. Khanna, T., & Rivkin, J. W. 2001. Estimating the performance effects of business groups in emerging markets. Strategic Management Journal, 22(1): 45-74.
26. Kogut, B. 1983. Foreign direct investment as a sequential process. In C. P. Kindleberger & D. B. Audretsch (Eds) The multinational corporation in the 1980s: 62-75. Boston, MA: MIT Press.
27. Kogut, B. 1989. A note on global strategies. Strategic Management Journal, 10(4): 383-389.
28. Kogut, B. 1991. Country capabilities and the permeability of borders. Strategic Management Journal, 12(Special Issue): 33-47.
29. Kogut, B., & Chang, S. -J. 1996. Platform investments and volatile exchange rates: Direct investment in the US by Japanese electronics companies. Review of Economics and Statistics, 78(2): 221-231.
30. Kogut, B., & Kulatilaka, N. 1994. Operating flexibility, global manufacturing, and the option value of a multinational network. Management Science, 40(1): 123-139.
31. Krugman, P. R., & Obstfeld, M. 1997. International economics. New York: Addison-Wesley.
32. Kulatilaka, N., & Perotti, E. 1998. Strategie growth options. Management Science, 44(8): 1021-1031.
33. La Porta, R., Lopez-de-Silanes, F., Shleifer, A., & Vishny, R. W. 1997. Trust in large organizations. American Economic Review, 87(2): 333-338.
34. La Porta, R., Lopez-de-Silanes, F., Shleifer, A., & Vishny, R. W. 1998. Law and finance. Journal of Political Economy, 106(6): 1113-1154.
35. Lang, L. H. P., & Stulz, R. M. 1994. Tobin's q, corporate diversification, and firm performance. Journal of Political Economy, 102(6): 1248-1280.
36. Lee, K. C., & Kwok, C. C. Y. 1988. Multinational corporations vs domestic corporations: International environmental factors and determinants of capital structure, Journal of International Business Studies, 19(2): 195-217.
37. Levitt, T. 1983. The globalization of markets. Harvard Business Review, 61(3): 92-102.
38. Long, M. S., Wald, J., & Zhang, J. 2005. A cross-sectional analysis of firm growth options. In L. Trigeorgis (Ed.) Innovation, organization and strategy: New developments and applications in real options. Cambridge: Cambridge University Press.
39. Luo, Y. 2003. Industrial dynamics and managerial networking in an emerging market: The case of China. Strategic Management Journal, 24(13): 1315-1327.
40. Luo, Y., & Chen, M. 1996. Managerial implications of guanxibased business strategies. Journal of International Management, 2(4): 293-316.
41. Makhija, M. V., Kim, K., & Williamson, S. D. 1997. Measuring globalization of industries using a national industry approach: Empirical evidence across five countries and over time, Journal of International Business Studies, 28(4): 679-710.
42. Makino, S., Isobe, T., & Chan, C. M. 2004. Does country matter? Strategic Management Journal, 25(10): 1027-1043.
43. Marshall, A. 1890. Principles of economics. New York: Macmillan Press.
44. Mauri, A. J., & Michaels, M. P. 1998. Firm and industry effects within strategic management: An empirical examination. Strategic Management Journal, 19(3): 211-219.
45. McGahan, A. M. 1999. The performance of US corporations: 1981-1994. Journal of Industrial Economics, 47(4): 373-398.
46. McGahan, A. M., & Porter, M. E. 1997. How much does industry matter, really? Strategic Management Journal, 18(Special Issue): 15-30.
47. McGahan, A. M., & Porter, M. E. 2002. What do we know about variance in accounting profitability? Management Science, 48(7): 834-851.
48. McGahan, A. M., & Porter, M. E. 2005. Comment on "Industry, corporate, and business-segment effects and business performance: A non-parametric approach" by Ruefli and Wiggins. Strategic Management Journal, 26(7): 873-880.
49. McGrath, R. G. 1997. A real options logic for initiating technology positioning investments. Academy of Management Review, 22(4): 974-996.
50. Miller, M. H., & Modigliani, F. 1961. Dividend policy, growth and the valuation of shares, Journal of Business, 34(4): 411-433.
51. Myers, S. C. 1977. Determinants of corporate borrowing. Journal of Financial Economics, 5(2): 147-175.
52. North, D. C. 1990. Institutions, institutional change, and economic performance. Cambridge, MA: Harvard University Press.
53. Pantzalis, C. 2001. Does location matter? An empirical analysis of geographic scope and MNC market valuation. Journal of International Business Studies, 32(1): 133-155.
54. Peng, M. W. 2000. Business strategies in transition economies. Thousand Oaks, CA: Sage.
55. Peng, M. W. 2003. Institutional transitions and strategic choices. Academy of Management Review, 28(2): 275-296.
56. Penrose, E. T. 1959. The theory of the growth of the firm. New York: John Wiley.
57. Pindyck, R. S. 1988. Irreversible investment, capacity choice, and the value of the firm. American Economic Review, 78(5): 969-985.
58. Porter, M. E. 1980. Competitive strategy. New York: Free Press.
59. Porter, M. E. 1990. The competitive advantage of nations. New York: Free Press.
60. Porter, M. E. 1991. Toward a dynamic theory of strategy. Strategic Management Journal, 12(Special Issue): 95-117.
61. Prahalad, C. K., & Doz, Y.L 1987. The multinational mission: Balancing local demands and global vision. New York: Free Press.
62. Reuer, J. J., & Tong, T.W 2007. Corporate investments and growth options. Managerial and Decision Economics doi: 10.1002/mde.1335.
63. Ricardo, D. 1817. On the principles of political economy and taxation. London: John Murray.
64. Ricart, J. E., Enright, M. J., Ghemawat, P., Hart, S. L., & Khanna, T. 2004. New frontiers in international strategy. Journal of International Business Studies, 35(3): 175-200.
65. Rumelt, R. P. 1991. How much does industry matter? Strategic Management Journal, 12(3): 167-185.
66. Scherer, F. M. 1980. Industrial market structure and economic performance. Boston, MA: Houghton-Mifflin.
67. Schmalensee, R. 1985. Do markets differ much? American Economic Review, 75(3): 341-351.
68. Shin, H-H., & Stulz, R. M. 1998. Are internal capital markets efficient? Quarterly Journal of Economics, 113(2): 531-552.
69. Stewart, G. B. 1991. The quest for value: A guide for senior managers. New York: Harper.
70. Stewart, G. B. 2004. Champions of profitable growth. Harvard Business Review, 82(7/8): 59-63.
71. Strebel, P. J. 1983. The stock market and competitive analysis. Strategic Management Journal, 4(3): 279-291.
72. Sundaram, A. K., & Black, J. S. 1992. The environment and internal organization of multinational enterprises. Academy of Management Review, 17(4): 729-757.
73. Tong, T. W., & Reuer, J. J. 2006. Firm and industry influences on the value of growth options. Strategic Organization, 4(1): 71-95.
74. Tong, T. W., Reuer, J. J., & Peng, M. W. 2008. International joint ventures and the value of growth options. Academy of Management Journal, forthcoming.
75. Trigeorgis, L. 1996. Real options: Managerial flexibility and strategy in resource allocation. Cambridge, MA: MIT Press.
76. Wernerfelt, B., & Montgomery, C. A. 1988. Tobin's q and the importance of focus in firm performance. American Economic Review, 78(1): 246-250.
77. Yip, G. S. 1992. Total global strategy: Managing for worldwide competitive advantage. Englewood Cliffs, NJ: Prentice-Hall.
78. Young, S. D., & O'Byrne, S. F. 2001. EVA and value-based management. New York: McGraw-Hill.