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  • 1.
    Blankenburg Holm, Desirée
    et al.
    Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Business Studies.
    Johanson, Martin
    Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Business Studies.
    Kao, Pao T.
    Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Business Studies.
    From outsider to insider: Opportunity development in foreign market networks2015In: Journal of International Entrepreneurship, ISSN 1570-7385, E-ISSN 1573-7349, Vol. 13, no 3, p. 337-359Article in journal (Refereed)
    Abstract [en]

    By applying the network position concept, we untangle the firm’s recognition and exploitation of opportunities during the internationalisation process. We view the transition of network position from outsidership to insidership, in terms of the strength and number of relationships in the foreign market network. Departing from the revised Uppsala model, we argue that opportunity development in the business network consists of recognition and exploitation. Path dependence impacts how a firm exploits opportunity in the network as well as the next opportunity to be recognised, as they are contingent on the network position. Four opportunities are identified from a historical case study of Elekta, a Swedish medical device manufacturer that entered China between 1980 and 2010. We analyse the initial network position of the firm, its opportunity recognition and exploitation, and the network position of the firm in return. Based on the cases we demonstrate that outsidership tends to lead to discovery, while insidership results in creation. The insidership enables direct and indirect relationships, which are involved in the exploitation of the opportunity.

  • 2.
    Johanson, Martin
    et al.
    Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Business Studies.
    Kao, Pao
    Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Business Studies.
    Networks in internationalisation2010In: Reshaping the Boundaries of the Firm in an Era of Global Interdependence / [ed] Pla-Barber, José and Alegre, Joaquín, Bingley: Emerald Group Publishing Limited, 2010, p. 119-142Chapter in book (Other academic)
    Abstract [en]

    Purpose – The purpose of this chapter is to provide a review of literaturethat analyses the internationalisation of the firm, through the function androle of networks.

    Design/methodology/approach – A total of 23 papers (published between1988 and 2008) explicitly using network as a research framework to studythe internationalisation process of the firm were selected. They have beenanalysed according to a range of factors, including the author, journal,time frame in which they were published, type of focal firm, country oforigin of focal firms, market entered, methods applied in the studies,theories adopted and research topic.

    Findings – Networks have emerged as one of the dominant frameworksused to explain the phenomenon of internationalisation. Having originallybeen applied in studies of firms from developed countries entering similarmarkets, network theories are now as popular in studies of firms bothoriginating in and entering emerging markets. This review also finds thatboth qualitative and quantitative methods have been adopted in thestudies; however, few papers have tried to combine the two. Furthermore,the network approach has been used for comparative analysis withfindings from FDI theory, as well as to supplement international newventure (INV) and born global theories. Lastly, this review highlightstopics that have been explored in previous studies and suggests areas forfurther research.

    Originality/value – This is the first review paper on this subject and assuch it contributes to the growing body of knowledge on the networkapproach and assists in understanding the internationalisation phenomenonof the firm.

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  • 3.
    Johanson, Martin
    et al.
    Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Business Studies. Mid Sweden University .
    Kao, Pao T.
    Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Business Studies.
    Emerging market entry and institutional change – three Swedish manufacturing firms in China between 1980 and 20102015In: Management & Organizational History, ISSN 1744-9359, E-ISSN 1744-9367, ISSN 1744-9359, 1744-9367Article in journal (Refereed)
    Abstract [en]

    Firms enter emerging markets to capture untapped opportunity and pursue high growth potential. Yet emerging markets are also characterized by unstable institutions that may affect firms’ market entry behavior. Although most existing studies have taken a rather short-term and static perspective to addressing foreign market entry, we specifically draw on the Uppsala internationalization process model and use a long-term approach to examine the China market entry of three Swedish firms in terms of their market knowledge and market commitment. We argue that the relation between institutional change in the host market and the market entry behavior of a particular firm evolves over time. The findings also show that the type of institutional change, as well as the accumulated market knowledge and commitments firms have made, can influence the relation between them. 

  • 4.
    Kang, Olivia
    et al.
    Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Business Studies.
    Kao, Pao
    Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Business Studies.
    Contextual Transfer Barriers, Social Interaction, and Innovation Transfer Performance2019In: The Changing Strategies of International Business / [ed] Agnieszka Chidlow; Pervez N.Ghauri; Thomas Buckley; Emma C. Gardner; Amir Qamar; Emily Pickering, Palgrave Macmillan , 2019, p. 73-94Chapter in book (Refereed)
    Abstract [en]

    This chapter explores and explains the influence of social interaction on multinational corporations (MNCs) dealing with contextual transfer barriers. A sequential mixed-method research design is adopted to include both quantitative and qualitative studies on MNCs and their innovation transfer projects. The findings show that social interactions can improve transfer effectiveness when differences exist in market conditions, technology standard, and cultural and institutional settings in sender’s and receiver’s countries, as the social capital accumulated through individual connections can facilitate the quality of knowledge sharing. However, the transfer efficiency might be jeopardized because of the time and resource spent on the social interaction.

  • 5.
    Kao, Pao T.
    Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Business Studies.
    Institutional Change: Transitional and turbulent changes and how they impact market entry firms2016Conference paper (Refereed)
    Abstract [en]

    This study aims to understand recurring changes in regulative institutions through the market entry and expansion of Höganäs in China between 1980 and 2010. We distinguish transitional and turbulent institutional changes, and the differences between them, and their influences a firm’s market entry behaviour are identified. China’s accession to WTO in December 2001 is used as a delimiting point to form two comparable periods for examining how institutional changes occur and how Höganäs responds to these changes. The discussion points out that the process of institutional change evolves over time and is contingent on the past, present and future.

  • 6.
    Kao, Pao T.
    Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Business Studies.
    Let’s Work Together - MNCs’ Collaborative Activities During Periods of Turbulent Change in Emerging Markets2017Conference paper (Refereed)
    Abstract [en]

    This paper explores the unique case of an MNC working with the host government and local actors during a period of turbulent change in an emerging market. While the literature overlooks non-business strategies of MNCs and suggests they avoid uncertainty, there is growing evidence of this cross-sector collaboration to achieve collective goods. Drawing on archival and interview data, we show how the Swedish dairy equipment manufacturer DeLaval collaborated with China’s government and local business and nonbusiness actors following the 2008 melamine milk scandal. The findings shed light on prerequisites for MNCs to collaborate, their motivations to engage, and the role of turbulent change in these collaborations. This study contributes to the continuing discussion of MNCs’ social role in emerging markets. 

  • 7.
    Kao, Pao T.
    Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Business Studies.
    MNCs’ Collaborative Activities in Emerging Markets during Periods of Turbulent Change2016Conference paper (Refereed)
    Abstract [en]

    This paper explores MNCs’ collaborative activities in the context of emerging markets during periods of turbulent change. While the common view suggests MNCs practice uncertainty avoidance and literature overlooks the non-business strategies of these firms, there is growing evidence of increasing MNC collaboration with host governments and local actors. Drawing on archival and interview data, this study presents a single case of DeLaval in China, and its collaboration with the Chinese government and local businesses and non-business actors after the dairy industry was hit by the melamine milk scandal in 2008. This study aims to understand the prerequisite for MNCs to collaborate, MNCs’ motivation to engage, and the role of turbulent change in these collaborations. The findings show that experience, legitimacy, trust, and commitment are necessary for MNCs to engage in collaborative activities, while increased local embeddedness and fulfilment of responsibilities as societal stakeholders are possible motivations for collaboration. Lastly, turbulent change may provide opportunities for collaboration to occur by creating urgency, inducing future institutional change, and prompting MNCs to take a proactive approach to the host market. 

  • 8.
    Kao, Pao T.
    et al.
    Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Business Studies.
    Chung, Hsi-Mei
    Department of Business Administration, I-Shou University.
    Dahms, Sven
    Department of International Business Administration, I-Shou University.
    Overcoming Institutional Distance - The Employment ofInstitutional Capital In Foreign Subsidiaries2017Conference paper (Refereed)
    Abstract [en]

    Foreign subsidiaries face challenges in balancing the external institutional pressures faced in host countries, with the internal institutional pressures associated with adopting organizational practices and routines from their parent firms. Informed by institutional theory, we argue firms are likely to employ and utilize institutional capital when expanding into countries with greater institutional distance. We operationalize institutional capital as the family ties that exist within family business groups, and propose hypotheses to explain how institutional capital is employed to deal with greater institutional distance. Our hypotheses are tested using a Multilevel Mixed-effects Linear Model to analyze a sample of Taiwanese family business groups. Our results show firms are more likely to utilize institutional capital when entering countries with greater regulative and cognitive institutional distances. However, contrary to our expectations, firms are less likely to utilize institutional capital when entering countries with greater normative distances. Our research provides a framework for a firm’s employment of institutional capital in foreign operations, and contributes to the continuing discussion of institutional distance and foreign market entry and expansion strategy. 

  • 9.
    Kao, Pao T.
    et al.
    Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Business Studies.
    Johanson, Martin
    Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Business Studies.
    Lundberg, Heléne
    Department of Business, Economics and Law, Mid Sweden University .
    Business is pleasure and pleasure is business: A study on how Swedish managers build and sustain private and professional ties during firms’market entry into Russia2016Conference paper (Refereed)
    Abstract [en]

    While social networks are considered to facilitate the internationalization of the firm, the tie building activities of the foreign manager in host markets are largely overlooked. This study expands our understanding of network theory in the context of the internationalization of the firm. It focuses on how managers build and maintain ties in foreign markets, and how these ties support personal gain and the firm's market entry. We propose a theoretical framework to understand the characteristics of tie carrier, the nature of the ties, and the outcomes facilitated by the ties. Employing an exploratory case study design, we conduct interviews with Swedish managers living and working in Russia. Our findings suggest that knowledge, experience, and capabilities of the foreign managers can be accumulated over time. Other aspects of the tie carrier's characteristic, such as identity, are unique to the individuals and difficult to cultivate. Additionally, while private ties are built with family members and friends in a social environment and provide emotional support, professional ties exist mainly in the workplace with colleagues and work acquaintances and offer information exchange. Moreover, tie building activities in foreign markets can lead to both expressive and instrumental outcomes for the manager personally, and help the firm they work for to obtain business opportunities and market legitimacy. 

  • 10.
    Kao, Pao T.
    et al.
    Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Business Studies.
    Kang, Olivia
    Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Business Studies.
    Contextual transfer barriers, social interaction, and innovation transfer performance2018Conference paper (Refereed)
    Abstract [en]

    This paper explores and explains the influence of social interaction on MNCs dealing with contextual transfer barriers. We adopt a sequential mixed-method research design and conduct both quantitative and qualitative studies on MNCs and their technology transfer projects. Our findings show social interactions can improve transfer effectiveness when differences existed in market conditions, technology standard, and cultural and institutional setting in sender’s and receiver’s countries, as the social capital generated through individual connections can facilitate the quality of knowledge sharing. However, the transfer efficiency might be jeopardized because of the time and resource spent on the social interaction. 

  • 11.
    Kao, Pao T.
    et al.
    Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Business Studies.
    Redekop, William
    Department of Economics, Swedish University of Agricultural Sciences.
    Mark-Herbert, Cecilia
    Department of Economics, Swedish University of Agricultural Sciences.
    Sustainable supply chain management: The influence of local stakeholder expectations in China's agri-food industry2012In: Journal on Chain and Network Science, ISSN 1569-1829, E-ISSN 1875-0931, Vol. 3, no 12, p. 273-289Article in journal (Refereed)
    Abstract [en]

    Multinational food processing corporations are facing rapid growth in emerging markets like China and a concurrent need for sustainable supply chain management (SSCM). These firms attempt to address supply risk and threat to the triple bottom line through managing suppliers and inputs, and at the same time need to overcome the uncertainty raised by the unfamiliar host environment. An exploratory qualitative case study of two multinational food processing corporations in China finds their SSCM practices are impacted by the nature of the raw material inputs as well as local stakeholder expectations. In particular, government policy and media attention seems to influence the direction and choice of SSCM activities engaged in by the focal firms. Furthermore, the discussion also suggests a possible permanent effect may occur as stakeholder expectations and host country institutions evolve. The implication of this study is that food processors preparing to enter emerging markets should be aware that local stakeholder expectations may affect operations significantly more than previously expected. As such, these firms need to carefully evaluate their operations in the host market and seek balance between SSCM practices and local stakeholder expectations. This study extends existing research on SSCM, exploring practices among the agri-food industry in a developing economy, and points out a theoretical extension to the existing sustainable purchasing portfolio matrix.

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  • 12.
    Kao, Pao-Tsung
    Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Business Studies.
    Institutional Change and Foreign Market Entry Behaviour of the Firm: A Longitudinal Study of Three Swedish Firms in China2013Doctoral thesis, monograph (Other academic)
    Abstract [en]

    China’s status as the world’s top destination for foreign direct investment and the largest trading nation is likely to attract more international firms seeking market entrance, and increase the speed of expansion by those already present in the market. Its progress in reaching this point has been accompanied by significant changes in laws and regulations. This study sets out to understand the events of foreign market entry to emerging markets experiencing recurring changes in laws and regulations, and asks the research question: How may institutional change in the host market influence the market entry behaviour of the firm over time?

    Based on retrospective longitudinal case studies of DeLaval, Elekta and Höganäs from 1980 to 2010, the findings show that institutional change taking place in the host market plays a signal role that enables firms to recognise the availability and accessibility of market opportunity. Firms also make market commitment accordingly to capture the market opportunity recognised. Additionally, institutional change comes in different forms (transitional change and turbulent change), and plays out differently in various industries and at various points in time. They also have varying influences on market opportunity in terms of the source through which it is recognised (structural opportunity and relational opportunity), and the direction in which market commitment is made (commitment toward the host market, relationships, and organisational integration).

    Furthermore, depending on the point in time, the relations among institutional change, market opportunity, and market commitment may change. While a consistent level of institutional change encourages firms to recognise structural opportunity, the escalation of institutional change over time seems to influence firms to form stronger relationship commitment with local actors and leads to stronger recognition of relational opportunity.

    This study’s findings imply that recurring institutional changes in emerging markets have an overarching impact on foreign market entry of the firm, and needs to be understood from a long-term perspective. Foreign firms that have acquired experience in emerging markets over time face less of a threat from ongoing institutional changes. Actively engaging in the host market and remaining alert to information from various sources will enable firms to recognise market opportunity in emerging markets.

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