The Oxford Handbook of International Business

By Alan M. Rugman; Thomas L. Brewer | Go to book overview

Estrin 1999). Businesses moreover face major challenges in understanding the local business cultures and in developing appropriate approaches to cross-cultural management and to change management—areas where applied research could be of great value. Last, but not least, technological advances may permit the region to leap-frog stages of technological development and innovate business, e.g. in E-commerce.

The analysis of business in an unusual context provides a laboratory to explore aspects that are less observable in mature market economies. Novel concepts and analytical frameworks may feed back into theories used in mainstream international business research. In addition to the institutional perspective, Hoskisson et al. (2000) point to the potential of adapting transaction cost theory and the resource-based view of the firm to the specific challenges of emerging markets. However to enrich these frameworks, researchers have to be venturous in their approaches, and apply exploratory research methods. Existing theories help analysts by concentrating attention on important variables and relationships—but they fail if important variables or relationships are missed. Few region specific insights are born out of hypothesis testing of standard theory. We need inductive research to understand new or unconventional business contexts. Longitudinal studies and linkages to related literature in, for example, transition economics and sociology may help to develop new, relevant, and dynamic theoretical frameworks.


References

Ali, Shaukat, and Mirza, Hafiz (1996). 'Entry Mode and Performance in Hungary and Poland: The Case of British Firms', AIB (UK) conference proceedings, Aston University, March: 1-23.

Anderson, James H., Korsun, Georges, and Murrel, Peter (1999). 'Ownership, Exit and Voice After Mass Privatization: Evidence From Mongolia', Economics of Transition, 7: 215-43.

Antal-Mokos, Zoltan (1998). Privatisation, Politics, and Economic Performance in Hungary. Cambridge: Cambridge University Press.

Arens, Patrick, and Brouthers, Keith D. (1999). 'Key Stakeholder Theory and State-owned versus Privatized Firms', London, mimeo.

Arnold, David J., and Quelch, John A. (1998). 'New Strategies in Emerging Markets', Sloan Management Review, 39 (3): 7-20.

Arrow, Kenneth (1985). 'The Economics of Agency', in J. Pratt and R. Zeckhauser (eds.), Principals and Agents: the Structure of Business. Boston, Mass.: HBS Press, 37-51.

Åslund, Anders (1995). How Russia Became a Market Economy. Washington, DC: Brookings Institution.

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