Direct foreign investment and expropriation incentives: A mitigating role for match-specific capital

Choi, Yong-Jae; Esfahani, Hadi Salehi

doi:10.1016/s1062-9769(99)80103-3

Cited by 5 publications

(3 citation statements)

References 9 publications

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“…We anticipate that these attributes are readily incorporated into the proffered framework by noting that the investment profile equates, in the TCE framework, to the choice of technology, which has implications for frequency and uncertainty. We note that the choice of resource profile and organization form is interdependent, which means that governance choice, which is influenced by the external institutional environment, may influence resource profile choice (see, for example,Choi and Esfahani, 1998;Henisz, 1998;Williamson, 1991b).…”

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confidence: 99%

Market position, resource profile, and governance: linking Porter and Williamson in the context of international courier and small package services in Japan

Nickerson

Hamilton

Wada

2001

Strategic Management Journal

152

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Two economic theories that have had an immense impact on modern strategic management research are Porter's strategic positioning framework (SPF) and Williamson's transaction cost economics (TCE). While both theories have contributed to our understanding of strategic management and to the choice of strategy and structure, each theory offers managerial prescriptions that are incomplete at best. We contend that if followed in isolation, each theory can lead to inferior performance. This paper, which studies the international courier and small package (IC&SP) services in Japan, improves upon prescriptions from both theories by linking Porter's and Williamson's approaches. Our main proposition is contained in three relationships that predict a fit among three strategic choices: market position, resource profile, and organizational structure. We test our predictions with a three-stage, reduced-form, endogenous selfselection model. While our empirical methodology is complicated and relies on a multilevel analysis, the methodology is necessary both for analyzing a constellation of activities in the vertical chain and for assessing strategy, structure, and performance when data can be drawn from only a limited number of firms. Our results suggest that a firm's market position, resource profile, and organizational choice are related in ways predicted by a positioning-economizing perspective. To be sure, our study is ambitious and suffers from a number of limitations; nevertheless, it provides one of the first attempts to theoretically and empirically link Porter's SPF and Williamson's TCE.

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confidence: 99%

Market position, resource profile, and governance: linking Porter and Williamson in the context of international courier and small package services in Japan

Nickerson

Hamilton

Wada

2001

Strategic Management Journal

152

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“…Business development in a country cannot be separated from investment growth [4]. The importance of investment management is very much realized by the government in its efforts to improve the country's economy [5]. The central government and local governments have a strong commitment to provide business convenience and continue to encourage the maintenance of a conducive business climate [6].…”

Section: Introductionmentioning

confidence: 99%

Analysis of Investment Policy of Local Government in the Era of Industrial Revolution 4.0

Purnomo¹,

Sofia²

2019

Proceedings of the 1st International Conference on Economics, Business, Entrepreneurship, and Finance (ICEBEF 2018)

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Local governments as public service providers have an important responsibility in an effort to improve the welfare of the community within the local government. One of the efforts that can promote the improvement of people's welfare in the financial perspective is to improve the investment climate. West Java Province is one of biggest provinces in Indonesia and also one of the biggest regional investment destinations. As the era of Industrial Revolution 4.0 has started in 2011, investment policies have to be developed in line with the changes occurred. This study aims to 1) identify the Investment Performance of Java Provincial Government; 2) recognize the direction of investment policy of West Java Provincial Government and its relation with Industrial Revolution 4.0. This study used secondary data on investment from 2013 until 2017. The results showed that the investment performance in West Java in the 2013-2017 have fluctuations values and the big decline in 2016-2017. It was also found that some leading sectors have very low investment value compared to other sectors. The central and regional governments must again elaborate each policy in more detail in order to achieve the consistency and sustainability of each program.

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“…In Doyle and Van Wijnbergen (1984), and Bond and Samuelson (1986), the government can commit itself to tax holidays in the initial periods, so that foreign investors have an opportunity to recoup their sunk costs before the government imposes new taxes. In Choi and Esfahani (1998), the government's ability to tax F DI is limited by an M N Cs ability to withhold an important production asset, which causes the specific capital of the host economy to become idle. Our study differs from these papers in the following respects:…”

Section: Introductionmentioning

confidence: 99%

Foreign Direct Investment, Labour Market Regulation and Self-Interested Governments

Palokangas

2003

SSRN Journal

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Direct foreign investment and expropriation incentives: A mitigating role for match-specific capital

Cited by 5 publications

References 9 publications

Market position, resource profile, and governance: linking Porter and Williamson in the context of international courier and small package services in Japan

Market position, resource profile, and governance: linking Porter and Williamson in the context of international courier and small package services in Japan

Analysis of Investment Policy of Local Government in the Era of Industrial Revolution 4.0

Foreign Direct Investment, Labour Market Regulation and Self-Interested Governments

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