The Asian Management Institute was formally established in April 1997 and is based at the Ivey Business School at Western University in London, Ontario, Canada. AMI represents Ivey’s commitment to the development and dissemination of a leading body of research and teaching materials on Asian business..
The three primary activities of the Asian Management Institute are:
This knowledge is being developed first hand by Ivey faculty in Asia, working directly with Asian business to:
This experiential knowledge base is enabling Ivey to achieve the following:
The Impact of Vicarious Experience on Foreign Location Strategy
MNEs can learn from the foreign investment experiences of other firms when evaluating their own foreign entry strategies. We argue that other firms’ experiences reduce investment barriers arising from formal and informal institutional environments in host countries that are dissimilar from an MNE’s home country, thereby encouraging new entry. Our empirical analysis of foreign entries by Japanese public manufacturing firms over more than a thirty-year period indicates that the prior experiences of other firms in a host country mitigate the negative effect of formal and informal institutional distance on entry decisions: as other firms’ experiences in a host country increase, a firm is less deterred by greater institutional distance from entering the country. We also find that the distance-mitigating effect of other firms’ experiences in different industries is less significant when a larger body of same-industry firm experience exists in a country, implying a substitution effect between different types of vicarious experience.
by Paul Beamish, Guoliang Jiang, Guy Holburn, September 30, 2014. Journal of International Management
Ivey Business School Selected Cases
by William Wei, Paul Beamish, August 01, 2014. Truth and Wisdom Press
The Effect of Host Country Long Term Orientation on Subsidiary Ownership and Survival
This paper examines the role which the long term orientation (LTO) dimension of host country culture plays in transforming multinational corporations' (MNCs') focus from transaction cost to transaction value in the context of MNC subsidiary ownership and survival. We used a sample of 10,236 overseas subsidiaries established by 1,291 Japanese MNCs in 29 host countries with varying levels of LTO to test our hypotheses. Results first showed that LTO has a direct positive effect on ownership levels. Second, we observed that there were positive interactions between LTO and cultural distance, and between LTO and geographic distance, on ownership levels. Third, we found that there were positive interactions between LTO and subsidiary ownership level, and between LTO and cultural distance, on subsidiary survival. The theoretical and practical implications of these findings are discussed in terms of the vital role LTO plays in determining whether transaction value or transaction cost considerations prevail in MNCs' ownership strategies, and how MNCs can better take advantage of host country LTO and improve the survival likelihood of their subsidiaries.
by Paul Beamish, George Peng, June 19, 2014. Asia Pacific Journal of Management
Protecting Intellectual Property in China
Intellectual property (IP) protection is the No. 1 challenge for multinational corporations operating in China. According to the U.S. government, China accounted for nearly 80% of all IP thefts from U.S.-headquartered organizations in 2013, amounting to an estimated $300 billion in lost business. Among European manufacturers, the loss of IP in China reduced potential profits by 20%.The effects from IP leakage in China are ubiquitous. They are visible in counterfeited items including toys, luxury goods, automotive and aircraft parts, pharmaceuticals and other complex high-tech products. But IP violations go beyond products. They extend to pirated operational processes and the replication of entire business and service models.
Although multinational corporations can’t afford to stay away from China, in order to remain competitive they must develop mechanisms that enable them to shift some of their innovation capabilities to China safely, without losing critical know-how. To learn about how companies are managing the China IP protection challenge, we studied more than 50 multinational corporations. We identified nine IP protection practices that can be used as a web of protection including (1) Developing strategic clarity; (2) Collecting business intelligence; (3) Following legal fundamentals; (4) Creating interest alignment; (5) Disaggregating processes; (6) Implementing a controls discipline; (7) Creating dynamism; (8) Managing human resources strategically and; (9) Engaging in focused corporate social responsibility activities. These practices allow corporations to expand faster within China and across other emerging markets while enhancing local and global innovativeness, which leads to improved performance.
by Andreas Schotter, Mary Teagarden, June 19, 2014. Sloan Management Review (MIT)
Financial support is essential to the ongoing work of developing materials for Asia.