Session Details: Session 1006

Emerging Economies: The Dynamic Influence of the Institutional Environment on Firm Strategies

Track E

Date: Saturday, December 13, 2008


Time: 11:15 – 12:30


Room: Lecture Theatre 5

Session Chair:
Prashant Salwan, Indian Institute of Management - Indore

Title: Changing Institutional Logics and Organizational Adaptation – A Theory of Organizational Hibernation


  • Rajiv Krishnan Kozhikode, Simon Fraser University

In this paper, I propose a theory of organizational hibernation to examine organizational adaptation to hostile institutional logics in their organizational fields. Specifically, I argue that when faced with a hostile institutional logic, organizations undergo a period of cautious inactivity until a favorable institutional logic return, a process I call organizational hibernation, characterized by mimetic behavior, avoidance of competition and avoidance of environmental uncertainty. Data from a panel of commercial banks in the Indian banking industry from 1951-2003 would be used to test this theory of organizational hibernation.

Title: Dynamics of Founding Conditions and Strategic Choice: a Longitudinal Study of Emerging Economy Firms


  • Indrajit Mukherjee, XLRI Xavier School of Management
  • Sougata Ray, Indian Institute of Management - Calcutta
  • Raveendra Chittoor, University of Victoria
  • Sathyajit Gubbi, University of Groningen

We investigate how different founding contexts of firms, delineated by economic liberalization and business group affiliation, and strategic choice of managers, interacting dynamically, influence firm performance in emerging economies. Our multiple industry longitudinal study using secondary data on 3160 Indian firms for five years reveal: diversity of founding contexts results in variation of firm performance, but the strategic choices exercised by managers and entrepreneurs tend to overcome these variations by dynamically moderating these effects and lead to convergence of firm performances. The study validates the organizational imprinting hypothesis for broad macroeconomic founding contexts specific to emerging economies, provides insight on strategic transformation, has implications on research on business groups, and has implications for entrepreneur and managers who have to face the challenge of transforming organizations.

Title: Longitudinal Analysis of the Performance Implications of Cross Listing: An Institutional Legitimacy Approach


  • Sudhir Nair, University of Victoria
  • Bruce Skaggs, University of Massachusetts-Amherst

Cross listing of shares may have both financial and non-financial implications for firms. While the economic factors surrounding cross listing have been well researched by financial scholars, the associated non-economic impact of cross listing has not been deeply examined by organizational scholars. This paper addresses that gap by an empirical analysis of two sets of firms, one from a developed country (USA) and another from an emerging market (India). We use the institutional legitimacy perspective to examine the secondary impact of cross listing on firm performance of 362 firms that have differential needs for legitimacy based on country of origin. Our longitudinal analysis suggests that the impact of legitimacy is non-linear and that legitimacy effects for firms may occur through aggregation processes.

Title: Micro-effects of Export Policy Changes on Indigenous Capability Creation


  • Preet Aulakh, York University
  • Oana Branzei, University of Western Ontario
  • Raveendra Chittoor, University of Victoria

This study contributes to the literature on early internationalization by explaining how policy changes come to systematically pattern capability creation by firms from emerging economies. We begin to explain which, when and how export promotion interventions may foster or inhibit the development of indigenous capabilities during sequential stages of internationalization. Using panel data for over 5000 firms from 1990 to 2007, we test the micro-level consequences of export promotion policies for Indian exporters since the start of India’s liberalization process in 1991. Our findings offer theoretical arguments and empirical evidence for the hypothesized moderating role of the type, intensity and duration of export promotion policies on the relationship between exporting strategies and firm-level capabilities.

All Sessions in Track E...

Sat: 11:15 – 12:30
Session 1006: Emerging Economies: The Dynamic Influence of the Institutional Environment on Firm Strategies
Sat: 13:30 – 14:45
Session 1010: Creating Advantage through Offshoring and Global Disintegration of the Value Chain
Sun: 13:30 – 14:45
Session 1014: Competition and Strategy
Sun: 15:00 – 16:15
Session 1034: The Future of Off-Shoring Services

Strategic Management Society

India Initiative

2008 Special Conference

2010 Bangalore Workshop

2011 Calcutta Workshop