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 CONTENTS VII

Debates and Extensions 327

Implications for Practice 328

GLOBALIZATION 211 12 FOREIGN ENTRY STRATEGIES 337

Strategic Objectives of Establishing

Foreign Subsidiaries 340
Where to Enter? 342
8 EUROPEAN INTEGRATION 213 When to Enter? 344
How to Enter? 346
Overcoming Divisions 216 How to Organize Your Operations 353
The EU as Institutional Framework for Institutions and Foreign Entry Strategies 353
Business 222
Debates and Extensions 355
The Euro as a Common Currency 228
Implications for Practice 357
Debates and Extensions 236
Implications for Practice 239
13 COMPETITIVE DYNAMICS 363

9 GLOBAL INTEGRATION AND Dynamics of Competition 366

MULTILATERAL Competition and Collusion 368
Institutions Governing Competition 372
ORGANIZATIONS 246
Resources Influencing Competition 377
The Multilateral Trade System 249 Debates and Extensions 380
The Multilateral Monetary System 256 Implications for Practice 384
Regional and Bilateral Economic Integration 259
Debates and Extensions 265
Implications for Practice 271 14 GLOBAL STRATEGIES
AND ACQUISITIONS 390
10 SOCIALLY RESPONSIBLE Strategizing Globally 392
Growth by Acquisitions 397
BUSINESS 278
Institutions Governing Acquisitions 403
Stakeholders of the Firm 282 Resource-Based Perspectives on
CSR in the Global Economy 288 Acquisitions 407
Institutions, Stakeholders and CSR 292 Debates and Extensions 408
Debates and Extensions 295 Implications for Practice 411
Implications for Practice 299

PART FOUR

OPERATIONS IN
THE FIRM ON THE GLOBAL MNE 419
THE GLOBAL STAGE 3o7
... ___ .
·- ..
-..,
-~-'

~.
.. - - ~

15 ORGANIZING AND INNOVATING

11 STARTING INTERNATIONAL
IN THE MNE 421
BUSINESS 309
Organizational Structures in MNEs 423
Going International 312
Managing Knowledge in Global MNEs 429
Resources and Internationalization 323
Institutions and the Choice of Organizational
Institutions and Internationalization 326 Structure 438

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Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
VIII CONTENTS

Resource-Based Considerations 439

Debates and Extensions 440
Implications for Practice 442

INTEGRATIVE CASES 5o5

16 PEOPLE IN THE MNE 451

Approaches to Managing People 453

Expatriates 455 1 Xiaomi Challenges Global Smartphone
Managing People Abroad 464 Leaders 506
Institutions and Human Resource 2 Rolls Royce: From Insolvency to World
Management 466 Leadership 511
People as Resources 468 3 Agrana: From Local Supplier to Global Player 520
Debates and Extensions 469 4 Bharti Airtel Acquires Resources and
Implications for Practice 471 Companies 525
5 Enhancing UK Export Competitiveness 528
6 Canada and the EU Negotiate CETA 534
17 CUSTOMERS AND SUPPLIERS
7 German Chamber of Commerce Develops Social
OF THE MNE 477 Responsibility in China 540
Understanding Consumers around the 8 Tackling Corrupt Practices: GSK China 544
World 479 9 Fan Milk in West Africa 550
The Marketing Mix 482 10 ESET: From Living Room to Global Player in
Price 484 Antivirus Software 556
Supply Chain Management 487 11 The LG-Nortel Joint Venture 561
Institutions, Marketing and Supply Chain 12 Beko Washes Clothes Across Europe 566
Management 493 13 SG Group: Managing European Acquisitions 570
Resources, Marketing and Supply Chain 14 Just Another Move to China? 576
Management 494
Debates and Extensions 495 Glossary 581
Implications for Practice 498 Credits 593
Name Index 594
Subject Index 596
Organizations Index 602

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 Chapter 1
Opening Case adidas: sales, suppliers and stakeholders Germany Fashion (sportswear)
around the world

In Focus 1. ~ Setting the Terms Straight

In Focus 1.2 Globalization in the year 1900

In Focus 1.3 GE Innovates from the Base of the Pyramid India, USA Medical instruments

Closing Case Coca-Cola Dives into Africa USA, Africa Soft drinks
'
.! t.:

~.CHapter 2·
I

Opening Case Managing business risks in Turkey .

Turkey -

In Focus 2.1 Elections around the globe France, Germany, -

India, USA
~1 Father of the market economy
~

In Focus 2.2 I Germany -

E!

In Focus 2.3 I
Protecting intellectual property internationally China -

In Focus 2.4 ____J,

Who is breaking whose copyright? Denmark, UK Furniture
I''

Closing Case Carlsberg faces political risk in Russia Russia Brewing

I, I
I·'

r~ -IT
. Phapter 3~ :1
Opening Case Party invitations in Saudi Arabia and in China Saudi Arabia, China, Civil engineering
Switzerland
I I~
~I j Limitations of Hofstede's framework
I"'

In Focus 3.1 - -
,.
In Focus 3.2 Multilinguists in multinational enterprises Finland Elevators
~ l-:

In Focus 3.3 , j The OECD anti-corruption convention - -

Closing Case What's in a (Maasai) name? Kenya, Tanzania Clothing, etc.

<

,....... 1'

Opening Case SAP drives industry 4.0 Germany IT software and

•

~H
serv1ces
.I 1.1
'
In Focus 4.1 I,
Capabilities in distribution: Wai-Mart USA Retail

In Focus 4.2 ~..J Burberry makes Britishness its core capability UK Fashion retail

In Focus 4.3 1,, Poland competes with India for BPO Poland, India Business services

In Focus 4.4 Ostnor offshores and reshores Sweden, China Bathroom engineering

Closing Case Lego 's secrets Denmark Toys

.
IX

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Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
X LIST OF BOXES

Opening Case EU exports: emerging economy opportunities EU

In Focus 5.1 Port of Rotterdam: gateway to the world Netherlands Trading and shipping

In Focus 5.2 Comparative advantage and YOU

Closing Case US anti-dumping against Chinese apple juice USA, China Processed foods
concentrate producers
Ll
;;:~

Chapter 6
~

Opening Case Spanish MNEs enter the global stage Spain -

In Focus 6.1 Grupo Antol in pursues OLI advantages Spain Automotive supplier

In Focus 6.2 Wind energy agglomerates in Jutland Denmark Engineering

In Focus 6.3 State enterprises meet market economy Dubai, China

In Focus 6.4 Corporate taxation drives US FDI in Europe USA, Europe

Closing Case Politics and FDI in Argentina Argentina, Spain

Opening Case The economic crisis upsets exchange rates Poland, Hungary,
Latvia, Slovakia

In Focus 7.1 Hong Kong and Argentina: a tale of two Hong Kong, Argentina
currency boards II .I
.L
~

In Focus 7.2 Local councils mess with taxpayers' funds Germany -

Closing Case Jobek do Brasil's foreign exchange challenges Brazil Furniture

'!-: j.

G~.~pter a~
.:.~

I
I
Opening Case A day in European business Poland IT (software)

In Focus 8.1 Rebuilding institutions in Central and Eastern Europe -

.. Europe II
_,

In Focus 8.2 Mobile students: the Bologna Process EU Education

In Focus 8.3 -;
Boom and bust in the eurozone Spain

In Focus 8.4 Half in, half out: the British UK

'
9

Closing Case The Eco-design Directive: Nokia goes to Finland, EU Mobile phones
Brussels
''
.....

.~C~apter 9
• '

Opening Case WTO mediates between Airbus and Boeing EU,USA Aircraft manufacturing

In Focus 9.1 Russia in the WTO Russia, EU

In Focus 9.2 Beef and shrimp: is the WTO over-reaching? USA,EU Processed Foods

In Focus 9.3 Food versus trade? India

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 .
LIST OF BOXES XI

Locations Industry
In Focus 9.4 ASEAN integrates regional economies ASEAN

In Focus 9.5 Disputes over ISDS tribunals Canada, Germany,

Australia

In Focus 9.6 Why are the rating agencies so powerful? USA Rating agencies

Closing Case The future of globalization: Wartsila scenarios Finland Energy

;:·
..\.
[Chapter 1~1 ]
'

Opening Case Starbucks: standards in the spotlight USA Restaurants

In Focus 10.1 IKEA adapts in Saudi Arabia Norway Aquaculture

In Focus 10.2 Farming salmon Sweden, Saudi Arabia Retail

In Focus 10.3 Working poor Central America Garments

Closing Case M&S: . . . because there is no 'Plan B' UK Retail

"· I ~J

·.• ''•'
l!1l.
~~hapter 11 ..
'

Opening Case Kaspersky Lab is scaling the globe Russia ',,

IT software
l

In Focus 1 1 .~ ~ Tourism: exporting experiences Tourism

ri i··:

In Focus 11.2 Building bridges Bahrain, Qatar Construction

In Focus 11.3 ScandinaviaNS: a small publisher for small Denmark Publishing

people worldwide

Closing Case Better generation: the global generation of UK, China, Hong Green energy
business Kong
I I
!~Chapter 12 ,.

Opening Case Pearl River Piano enters foreign markets China Musical instruments

In Focus 12.1 Tata and Geely acquire capabilities India, China Car manufacturing

In Focus 12.2 1 Thai Union acquires market access Thailand Processed foods

In Focus 12.3 Joint venture ZF Kama in Russia Russia, Germany Automotive supplier

Closing Case Danone and Wahaha: 'failed' joint ventures France, China Processed foods
11
11 •••

![Chapter 13~.L----l,IJJ'
'

Opening Case Gulf Airlines challenge a global industry UAE Airlines

In Focus 13.1 Haier pursues niche in the USA USA, China White goods

In Focus 13.2 Caught colluding in Germany Germany

In Focus 13.3 Is anti-dumping discriminatory? USA,EU

In Focus 13.4 Patent lawsuits: competing in the courts South Korea, USA Mobile phones

Closing Case Brussels vs Microsoft and Google EU,USA IT (software and

services)

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 ..
XII LIST OF BOXES

Opening Case Danisco: the rise and sale of a global leader Denmark Food ingredients

In Focus 14.1 Nomura Japan, Europe Investment banking

In Focus 14.2 Focusing and refocusing Nokia Finland Network infrastructure

Closing Case Daimler merges and demerges Germany Car manufacturing

,. I' :;

cH~pter 15
"''"•' •o•c-

Opening Case 'I The global organizational design of the ~ Consultants

'Big Four' .I
.L II
.
In Focus 15.1 Reverse innovation at McDonalds USA Restaurants

In Focus 15.2 Siemens' ShareNet: a knowledge Germany Engineering

management system

Closing Case Subsidiary initiative at Schenck Shanghai China Automotive supplier

Machinery

Opening Case EADS: managing human resources in a France, Germany, Aircraft manufacturing
European context Spain

In Focus 16.1 Expatriate spouses China

In Focus 16.2 Practical tips for getting started in Asia Hong Kong, Taiwan

In Focus 16.3 Competing for talent in China China .,

-

Closing Case Dallas vs Delhi India, USA -

•
-.,. f..

~~~
·.~ Chapter 1'i"f1
11 I
Opening Case Zara rewrites the rules on marketing and Spain Fashion retail
supply chain management IL
""'---
• ~

In Focus 17.1 Honest Films UK, China Marketing services

In Focus 17.2 C&A: failed European standardization Germany, Fashion retail

Netherlands, Spain

In Focus 17.3 Online shop #1 China E-business

In Focus 17.4 A volcano focuses minds on supply Iceland Airlines

chain agility

In Focus 17.5 828 marketing: BMS plastics for laptops Germany Plastics

Closing Case Li & Fung: from trading company to supply Hong Kong Logistics services
chain manager

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 st
A EUROPEAN VIEW ON INTERNATIONAL BUSINESS
This book offers a European perspective on international business. In the age of
globalization, isn't that a contradiction? Why did we set out to write a textbook
specifically for you as students in Europe? There are five considerations why we have
been writing this book:
• Students learn best from cases and examples that they can relate to. Thus we
have developed a number of cases and examples specifically for this book
that tell the experiences of European businesses. At the same time, we wish
to broaden your horizon and equip you with an understanding of businesses
in different parts of the world. As an international manager you will need to
understand both, the regional and the global dimensions of business. Thus we
also include a large number of cases and examples from all over the world.
• In Europe, international business (IB) is relevant for (almost) every business.
Most textbooks in this field have been written primarily for American
students, and thus treat global business primarily as a phenomenon that big
companies have to deal with, with internationally operating entrepreneurs
being an exception. That is understandable given the vast size of the domestic
market of the USA. However, in Europe, where national markets are much
smaller, even small- and medium-sized firms soon hit the limits of their
domestic markets, and IB becomes a natural part of everything they do. Thus
we relate much more to the needs and challenges faced by smaller firms,
especially in a European context.
• Textbooks written by American authors typically draw primarily on scholarly
work by US-based authors. However, there is important work by European
scholars that is, in our view, not sufficiently appreciated in these textbooks.
Thus we pay special attention to work by European scholars, for example the
work by Hall and Soskice on varieties of capitalism, and by Zweigert and Katz
on legal systems (Chapter 2), by Hofstede and other Dutch authors on culture
and by Marschan-Piekkari on languages (Chapter 3), by Dunning, Buckley and
Casson on foreign direct investment (Chapter 6), by Matten, Moon and others
on corporate social responsibility (Chapter 10), by Nordic scholars in the
tradition of Johansen and Vahlne on internationalization processes (Chapter
11 ), and by scholars across Europe on knowledge management and governance
(Chapter 15) and on expatriate management (Chapter 16).
• European businesses deal with a variety of subtle differences when engaging
in neighbouring countries as well as with big differences when going to,
for example, China. This contrasts with US businesses for whom IBis a
big strategic change from domestic operations (unless they go to Canada),
and thus involves substantial differences. Thus we treat IB as a natural and
integrated part of business activity, but subject to a range of subtle differences
when dealing with nearby yet still foreign institutions and businesses.
...
XIII

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 .
XIV PREFACE TO THE 1ST EDITION

• European businesses do most of their IB elsewhere in the Europe, where

they operate within the institutional framework of the European Union
(EU). Understanding this framework is thus essential. Therefore, we devote
one entire chapter specifically to the institutional framework of the EU
(Chapter 8), and we relate to the EU regulatory framework in later chapters
of the book, for example EU competition policy in Chapters 13 and 14.
Of course, as an alternative to using an English -language 'European' textbook
such as ours, instructors may consider adapting a textbook in local languages, for
example in German or French. This approach has advantages - students may be
more at ease with their own language, and examples are even more local. However,
we would encourage instructors to adopt our textbook as a core or recommended
reading because:
• Engaging in global business in most parts of the world requires competences
in English, and the classroom is an ideal place to acquire and polish English
language skills.
• An important aspect of building competences for IBis to put oneself in the
position of a business partner or competitor in order to understand how they
would handle a certain situation. Successful international managers are also
able to critically reflect on the merits and demerits of their own country, its
institutions and its businesses. The development of these capabilities requires
looking 'beyond the horizon' of your national economy, and engaging with
individuals and businesses in other countries. Our European view encourages
students to broaden their horizon beyond national boundaries.
• Both authors, being non-native speakers of English, remember how hard
it is to start using English in a classroom setting. Thus we have written the
text avoiding unnecessarily complex or colloquial expressions that may be
inaccessible to students whose first language is not English.

OUR PERSPECTIVE AS AUTHORS

We, your authors, have studied, worked and taught global business throughout our
careers. This personal experience and expertise gives us our foundation for writing
this book, and enables us to offer you diverse yet complementary perspectives on
international business:
• We have conducted research ourselves on many of the issues discussed in
this text. Mike Peng has investigated, for example, the institution-based
view of business (Chapters 2 and 3), the resource-based view (Chapter 4)
and strategies of global firms (Chapters 13 and 14). Klaus Meyer has also
contributed to the institution-based view (Chapter 2), and investigated in
particular foreign direct investment (Chapter 6) and foreign entry strategies
(Chapters 11 and 12). This work has been published in leading scholarly
journals in the field, such as the Journal of International Business Studies,
Strategic Management Journal and Journal of Management Studies.
• In our research, we have investigated a wide range of different contexts,
including in particular emerging economies. Mike Peng's research has focused
on contemporary management research in China and other transition
economies, while Klaus Meyer has studied businesses in the countries of
Central and Eastern Europe as well as Asian economies such as Vietnam and
Taiwan, and multinational firms from Germany, Denmark and the UK.

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 PREFACE TO THE 1ST EDITION XV

• We have taught at universities quite literally around the globe, and thus
learned from discussions with students offering a wide variety of perspectives
and experiences. Mike Peng has taught at the University of Hawaii at Manoa,
Ohio State University and University of Texas at Dallas (all USA), as well
as at the Chinese University of Hong Kong and a number of universities in
mainland China. Klaus Meyer has taught at Copenhagen Business School
(Denmark), Hong Kong University of Science and Technology (Hong Kong),
National Cheng-Chi University (Taiwan), as well as the University of Reading
and the University of Bath (both UK). In addition, both of us have given
numerous guest lectures at other universities throughout Europe, Asia and
North America.
• Last but not least, we have lived in different countries, and thus complement
each other's personal experiences. Mike Peng grew up in China and has
spent most of his professional life in the USA, while Klaus Meyer grew up in
Germany and has spent most of his professional life in Denmark and the UK.
These personal experiences help us in linking theory to practice, notably on
cross-cultural matters.

PEDAGOGICAL FEATURES OF THIS BOOK

In designing this book, we have been guided by three main pedagogical ideas:
1 We want to provide a comprehensive yet solidly research-grounded overview
of the field.
2 We want to facilitate learning of the essential concepts and analytical
framework.
3 We want to stimulate students' own critical reflection and discussions that go
beyond rote learning of the material presented in the text.

COMPREHENSIVE, RESEARCH-GROUNDED
International business is a very broad topic that integrates many scholarly disciplines.
In selecting and presenting the material, we have been guided by two objectives: to in-
tegrate complex materials in an accessible style and to build on contemporary research.
First, to provide a consistent structure that helps to analyze this complex subject, we
organize the book around a unified framework that integrates all chapters. Given the
wide range of topics in IB, many textbooks present the discipline item by item: 'This is
how MNEs manage X.' Rarely do authors address: 'Why do MNEs manage X in this
way?' More importantly, What are the big questions that the field is trying to address?
Our framework suggests that the discipline can be united by one big question and two
core perspectives. The big question is: what determines the success and failure of firms
around the globe? To address this question, we introduce two core perspectives: (1) an
institution-based view, and (2) a resource-based view. The unified framework presents
an extension of our own research that investigates international business topics using
these two perspectives. This focus on one big question and two core perspectives en-
ables this book to analyze a variety of IB topics in a coherent fashion.
Second, this book engages leaders through an evidence-based approach. We have
endeavoured to draw on the latest research, as opposed to the latest fads. The com-
prehensive yet research-grounded coverage is made possible by drawing on the most
comprehensive range of the literature. Specifically, we have read and considered

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Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Visit https://testbankfan.com
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 .
XVI PREFACE TO THE 1ST EDITION

every article over the past ten years in the Journal of International Business Stud-
ies, and other leading IB and general management journals. In addition, we have
consulted numerous specialty journals for specific chapters. As research for the book
progressed, our respect and admiration for the diversity of insights of our field and
the relevance of neighbouring disciplines grew substantially. The result is a compre-
hensive set of evidence-based insights on lB. While citing every article is not possible,
we cover work from a wide range of relevant scholars. Feel free to check the authors
found in the N arne Index to verify this claim.
Furthermore, we provide evidence through contemporary examples that illustrate
theoretical concepts in practice. These up-to-date examples are found all over the
world, with an emphasis on European business. They not only encourage students
to build bridges between theoretical frameworks and the contemporary world of
business, but also encourage them to find further examples in newspapers and maga-
zines, such as Financial Times and The Economist. Many of the cases have been
contributed by scholars from around the world, who have first-hand knowledge of
the companies and contexts concerned, including Finland, Italy, France, Germany,
the UK and the USA.

SUPPORTING LEARNING
The comprehensive nature of IB means that students of the subject have to engage
with a wide range of concepts and frameworks based on current research. To facili-
tate the accessibility of this material, we use a clear, engaging, conversational style
to tell the 'story'. Relative to other books, our chapters are generally more lively.
Moreover, we have introduced a number of features aimed to facilitate the learning
of key concepts, facts and frameworks:
• We explicitly state learning objectives at the outset and in the margin
throughout each chapter. These learning objectives are the basis for a brief
chapter summary at the end of each chapter.
• An Opening case about a firm or country provides a taster of the issues from
a real world perspective, and a basis to reflect over issues introduced in the
Chapter.
• Engaging in international business requires knowledge of many concepts. We
therefore state the definitions of key concepts as margin notes when they are
first introduced, and we include a Glossary at the end of the book containing
all key concepts in alphabetical order.
• In Focus boxes illustrate key concepts on the basis of shorter, real world
examples.
• So what? We conclude every chapter with Implications for practice, which
clearly summarizes the key learning points from a practical standpoint in one
or more tables.

CRITICAL REFLECTION AND DISCUSSION

The field of IBis subject to many debates, and many broader debates on globaliza-
tion affect internationally operating MNEs. While it is important to 'learn' concepts
and frameworks, we strongly believe that, it is also important to critically engage
with the 'how' and 'why' questions surrounding the field. It is debates that drive the

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 ..
PREFACE TO THE 1ST EDITION XVII

field of practice and research forward. We therefore aim to encourage students to

critically reflect over the material presented (we expect most students to find at least
one argument where they disagree with us) and to engage in cutting-edge debates.
Several features aim to provoke discussion and critical reflections in each chapter:
• Debates and extensions section for every chapter (except Chapter 1, which is
a big debate in itself).
• Photo questions challenge you to think about the consequences of the
material presented. We use photos not only to illustrate the text, but as a
stimulus for developing your own ideas and arguments.
• Recommended readings provide a basis for further study, for example when
you want to prepare a class assignment of a dissertation on a topic.
• Critical discussion questions at the end of each chapter provide a basis for
group discussions or individual work on the issues in the chapter, and their
broader implications for society. Many of these questions concern ethical
issues that have increasingly come to the forefront of public debates on
international business.
• Closing cases to each chapter provide the story of a specific company engaged
in international business. Analysis of this case along the questions provided
will help gain deeper insights on the topic of the chapter, and help relating
concepts to the real world of business.
• A set of Integrative cases provide further opportunities to deepen the study
material, and to discuss how firms may handle specific challenges they
encounter in international business.
Our ambitions in writing this book have been quite high, aiming to provide a
teaching and learning foundation for students in Europe and beyond that is compre-
hensive and specific, theoretically grounded and hands-on, and explaining concepts
while stimulating critical thought. The writing process has been challenging, but
with the support of numerous colleagues we believe we have produced a solid and
innovative book. We hope you enjoy studying and working with this book and, in
the process, become as enthusiastic about international business as we are. Happy
reading!

Mike W Peng and Klaus E Meyer

Dallas, Texas and Bath, Somerset
June 2010

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Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
 n
In the five years since the publication of the first edition of this textbook, the
international economy has evolved in many ways. Some trends highlighted in our
book, like the rise of emerging economies and heightened volatility, have acceler-
ated. New phenomena, such as emerging economy MNEs and international arbi-
trage tribunals, gained prominence and thus deserve consideration in a broad based
textbook. Therefore, time has come to prepare a second edition.
The main focus of the revision has been on introducing new debate and extension
sections on contemporary issues as well as new business cases, often researched by
ourselves. For example, the eurozone and its crisis are now extensively discussed in
Chapter 8, supported by extensive empirical data. Along with numerous updates on
the global business environment, we also have used the opportunity to sharpen some
of the conceptual frameworks, and to incorporate recent research. For example, the
discussion of mergers and acquisition in Chapter 14 has been substantially extended.
Since the publication of the first edition, I (Klaus Meyer) have relocated to
Shanghai, where I have been teaching at China Europe International Business School.
I thus have able to gather first-hand experiences on international business challenges
that inform several of the case studies in this 2nd edition, especially the Integra-
tive cases on Xiaomi, GSK China, German Chamber of Commerce and SG Group.
Similarly, the discussion of expatriates in Chapter 17 has benefitted from numerous
interactions with expats living in Shanghai and elsewhere in Asia. These and other
updated real world cases strengthen the bridge between theory and practice, making
this textbook not only scholarly grounded, but- we hope- a foundation and stimu-
lation for many international business careers.

Klaus Meyer
Shanghai, May 2015

...
XVIII

Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
 n
The revision of the textbook has benefited from comments and feedback from
our students and colleagues to whom we are grateful. Among them, I would like
to especially thank Grazia Santangelo (University of Catania), Christian Schwens
(Heinrich-Heine-University Dusseldorf), and Lydia Price and Juan Fernandez
(CEIBS) who provided detailed comments on selected chapters. I moreover thank
Alexandra Han, Melody Zhang, Jenny Zhu, Coco Zhao and Vicky Nee for their
research assistance and administrative support.
The CEIBS research centre for emerging market studies, which in turn is funded
by Ernst & Young, has provided financial support for my research, which I great-
ly appreciate. These resources have in particular enabled the preparation of new
original case studies for this book.
Abigail Jones and her colleagues at Cengage EMEA have, as usual, been very
helpful in guiding us through the publishing process, and conveying us the market
feedback.
The publisher would like to thank the following academics for their valuable sug-
gestions for both the first and second editions:
• Ursula Ott, Loughborough University, UK
• Robert Read, Lancaster University, UK
• Sangeeta Khorana, University of Wales, Aberystwyth, UK
• Saleema Kauser, Manchester Metropolitan University, UK
• Gabriel R.G. Benito, BI Norwegian School of Management, Norway
• Erik de Bruijn, University of Twente, Netherlands
• Camilla Jensen, University of Southern Denmark, Denmark
• Christine Mortimer, York StJohn University, UK
The publisher would also like to thank Jason Evans, Marketing and Strategy
Group, Aston University, UK and Mirko H. Benischke, Rotterdam School of Man-
agement, Erasmus University, the Netherlands for their work on the digital resources
that accompany this book.

.
XIX

Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
 Throughout this book, we make extensive reference to publications in scholarly
journals. To report these references in an efficient way, we use abbreviations for
management and economics journals such as JIBS, AM], JMS, or IBR, as reported
below. You will normally find these sources through your university library's data-
bases, though a search through Coogle Scholar may also get you to the right place.
When citing journals in other fields as well as newspapers and magazine, we report
the full name (Business Week, The Economist). To trace newspaper articles, it is
often easiest to go to these publications' own homepage and type the full title of the
article in the search engine.

JOURNAL ACRONYMS
The most frequently cited journals are set in bold.

AE - Applied Economics; AER -American Economic Review; AIM - Advances

in International Marketing; AJS -American Journal of Sociology; AMA- Academy
of Management Annals - AME - Academy of Management Executive; AMJ -
Academy of Management Journal; AMLE - Academy of Management Learning &
Education; AMR -Academy of Management Review; APJM -Asia Pacific Journal
ofManagement; ASR- American Sociological Review; ASQ- Administrative Science
Quarterly; ARS - Annual Review of Sociology; BEQ - Business Ethics Quarterly;
BH - Business History; B&S - Business and Society - BSR - Business Strategy
Review; CBR - China Business Review; CCM - Cross Cultural Management: An
International Review; CES - Comparative Economic Studies; CJAS - Canadian
Journal of Administrative Studies; CJE - Canadian Journal of Economics;
CJWB- Columbia Journal ofWorld Business; CMR- California Management Review;
CPIB - Critical Perspectives in International Business; ECLR - European
Competition Law Review; EER - European Economic Review; EJ - Economic
Journal; EJE - European Journal of Education; EJM - European Journal of
Marketing; EJPE - European Journal of Political Economy; ELJ - European Law
Journal; EMJ - European Management Journal; EMR - European Management
Review; EoT - Economics of Transition; ETP - Entrepreneurship Theory and
Practice; FA - Foreign Affairs; HBR - Haroard Business Review; HR - Human
Relations; HRM - Human Resource Management; HRMR - Human Resource
Management Review; IBR- International Business Review; ICC- Industrial and
Corporate Change; IE - International Economy; IJCCR - International Journal
of Cross-Cultural Management; IJHRM - International Journal of Human
Resource Management; IJKM - International Journal of Knowledge Management;
IJMR- International Journal of Management Reviews; IJPE- International Journal
of Production Economics; IMR -International Marketing Review; JAMS -Journal
of the Academy of Marketing Science; JAP - Journal of Applied Psychology; JB -
Journal of Business; JBE -Journal of Business Ethics; JBF - Journal of Banking
and Finance; JBR - Journal of Business Research; JBV - Journal of Business
Venturing; JCMS -Journal of Common Market Studies; JCR -Journal of Consumer
Research; JEBO- Journal of Economic Behavior and Organization; JEI- Journal
of Economic Issues; JEL - Journal of Economic Literature; JEP - Journal of
XX

Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Exploring the Variety of Random
Documents with Different Content
 CCCLV.
Men verliest soms menschen, die men meer mist dan betreurt
en andere, die men betreurt maar weinig mist.

CCCLVI.
In den regel prijzen wij van ganscher harte slechts hen, die ons
bewonderen.

CCCLVII.
Kleine geesten trekken zich de kleine dingen te sterk aan;
groote geesten zien ze alle en worden er niet door aangedaan.

CCCLVIII.
Deemoed is het ware kenmerk der christelijke deugden: zonder
hem behouden wij al onze gebreken, en zij worden slechts door
hoogmoed bedekt, die ze voor anderen en dikwijls voor ons zelf
verbergt.

CCCLIX.
Ontrouw moest de liefde uitblusschen en men behoorde niet
jaloersch te zijn wanneer men er aanleiding toe heeft. Slechts zij, die
vermijden aanleiding tot jaloezie te geven, zijn waard dat men
jaloersch op hen is.

CCCLX.
Men maakt zich bij ons door de kleinste ontrouw, die ons treft,
veel meer gehaat, dan door de grofste ontrouw tegenover anderen.
 CCCLXI.
Jaloezie wordt met de liefde geboren, maar sterft niet altijd met
haar.

CCCLXII.
De meeste vrouwen beweenen den dood hunner minnaars niet
zoo zeer uit liefde tot hen, als om waardiger te schijnen bemind te
worden.

CCCLXIII.
Het geweld, dat anderen ons aandoen, veroorzaakt ons dikwijls
minder smart dan hetgeen wij ons zelf aandoen.

CCCLXIV.
Men weet voldoende dat men niet veel over zijn vrouw behoort
te spreken, maar men weet niet voldoende dat men dit nog minder
van zich zelf moet doen.

CCCLXV.
Er bestaan goede eigenschappen, die ontaarden in gebreken
wanneer zij aangeboren, en andere, die nooit volmaakt worden
wanneer zij aangeleerd zijn: bij voorbeeld moet het verstand ons
bezit en ons vertrouwen besturen, daarentegen moet de natuur ons
voorzien van goedheid en moed.

CCCLXVI.
Hoe wantrouwend wij ook mogen zijn tegenover hen, die met
ons spreken, wij gelooven altijd dat zij tegenover ons oprechter zijn
dan tegenover anderen.

CCCLXVII.
Er zijn weinig fatsoenlijke vrouwen, die haar beroep niet moede
zijn.

CCCLXVIII.
De meeste fatsoenlijke vrouwen zijn verborgen schatten, die
slechts in veiligheid verkeeren omdat men haar niet zoekt.

CCCLXIX.
Het geweld, dat men zich aandoet om niet te beminnen, is
dikwijls wreeder dan de hardheid, waarmee het voorwerp zijner
liefde hem bejegent.

CCCLXX.
Weinig lafaards weten hoe laf zij zijn.

CCCLXXI.
Bijna altijd is het de fout van hem, die bemint, niet te bemerken,
dat men hem niet meer liefheeft.

CCCLXXII.
De meeste jonge lieden verbeelden zich natuurlijk te zijn terwijl
zij zich slechts onbeschaafd en grof gedragen.

CCCLXXIII.
 Er is een soort tranen, dat dikwijls ons zelf bedriegt, na eerst
anderen te hebben bedrogen.

CCCLXXIV.
Wanneer men zijn meisje meent te beminnen uit liefde tot haar,
vergist men zich zeer.

CCCLXXV.
Middelmatige geesten veroordeelen gewoonlijk alles wat boven
hun bevatting gaat.

CCCLXXVI.
Afgunst wordt door ware vriendschap, behaagzucht door ware
liefde verdreven.

CCCLXXVII.
Het hoofdgebrek der scherpzinnigheid is niet daarin gelegen het
doel niet te kunnen bereiken, maar er voorbij te gaan.

CCCLXXVIII.
Men geeft wel raad, maar men leert niet hoe handelend
optetreden.

CCCLXXIX.
Wanneer onze verdienstelijkheid achteruit gaat, gaat ook onze
smaak achteruit.
 CCCLXXX.
De fortuin brengt onze deugden en ondeugden aan den dag,
zooals het licht de voorwerpen zichtbaar maakt.

CCCLXXXI.
Het geweld, dat men zich aandoet om in de liefde trouw te
blijven, is weinig beter dan ontrouw.

CCCLXXXII.
Onze daden zijn als rijmwoorden, die ieder aanpast aan
hetgeen hem goeddunkt.

CCCLXXXIII.
De lust om van ons zelf te spreken en onze gebreken te laten
zien van de zijde, waarvan wij die willen vertoonen, is een groot deel
van onze oprechtheid.

CCCLXXXIV.
Men behoorde zich alleen te kunnen verwonderen over het feit
zich nog te kunnen verwonderen.

CCCLXXXV.
Men is bijkans even moeilijk te bevredigen wanneer men veel
liefde gevoelt als wanneer men er bijna geen meer bezit.

CCCLXXXVI.
 Niemand heeft vaker ongelijk dan zij, die niet kunnen verdragen
ongelijk te hebben.

CCCLXXXVII.
Een dwaas heeft geen stof genoeg om goed te zijn.

CCCLXXXVIII.
Al werpt de ijdelheid niet alle deugden ten eenenmale omver, zij
brengt haar toch allen aan het wankelen.

CCCLXXXIX.
Wat ons de ijdelheid van anderen zoo onuitstaanbaar maakt, is
dat zij de onze kwetst.

CCCXC.
Liever doet men afstand van zijn belang dan van zijn neiging.

CCCXCI.
De fortuin schijnt niemand zoo blind toe als aan hem, die niet
door haar begunstigd wordt.

CCCXCII.
Men moet de fortuin behandelen als de gezondheid; er van
genieten wanneer zij goed, geduld oefenen wanneer zij slecht is, en
geen krachtige middelen aanwenden zonder dringende
noodzakelijkheid.
 CCCXCIII.
Burgerlijkheid gaat in het leger soms verloren, aan het hof
nimmer.

CCCXCIV.
Men kan slimmer zijn dan een ander, maar niet slimmer dan alle
anderen.

CCCXCV.
Men is soms minder ongelukkig wanneer men door een geliefde
persoon bedrogen dan wanneer men er door teleurgesteld wordt.

CCCXCVI.
Men behoudt zijn eersten minnaar lang, indien men geen
tweeden neemt.

CCCXCVII.
In het algemeen missen wij den moed te zeggen, dat wij geen
gebreken hebben, en dat onze vijanden geen goede eigenschappen
bezitten; maar in bijzonderheden zijn wij er niet ver van verwijderd
het te gelooven.

CCCXCVIII.
Van al onze gebreken is luiheid degene, die wij het
gemakkelijkst erkennen; wij maken ons wijs dat zij zich verdraagt
met alle vreedzame deugden, en dat, zonder de andere geheel te
vernietigen, zij er alleen de werking van verhindert.
 CCCXCIX.
Er is een soort voornaamheid, die niet afhangt van de fortuin: zij
is een zeker voorkomen, dat ons onderscheidt en ons schijnt voor te
bestemmen voor groote dingen; zij is een gewichtigheid, die wij
onmerkbaar onszelf verstrekken. Het is door deze eigenschap dat
wij van anderen eerbied afdwingen; en zij is het gewoonlijk, die ons
nog meer boven hen verheft dan geboorte, waardigheden en zelfs
verdienste.

CD.
Er is verdienste zonder grootheid, maar er is geen grootheid
zonder eenige verdienste.

CDI.
Voornaamheid is voor de verdienste wat opsmuk is voor een
schoonheid.

CDII.
Wat men bij de galanterie het minst vindt is liefde.

CDIII.
De fortuin bedient zich soms van onze gebreken om ons te
verheffen; en er zijn ongemakkelijke menschen, wier verdienste
slecht beloond zou worden, ware het niet, dat men hun afwezigheid
wilde koopen.

CDIV.
 Het schijnt dat de natuur in het binnenste van onzen geest
talenten en een vaardigheid verborgen heeft, die wij niet kennen.
Alleen de hartstochten hebben het recht die aan het licht te brengen
en ons somtijds inzichten te geven, zekerder en volmaakter dan de
kunst zou vermogen.

CDV.
Wij komen geheel nieuw bij elk levenstijdperk aan, en ons
ontbreekt het dan dikwijls aan ervaring, ondanks het aantal jaren.

CDVI.
Coquette vrouwen doen het voorkomen alsof zij jaloers waren
op hun minnaars, om te verbergen, dat zij naijverig zijn op andere
vrouwen.

CDVII.
Zij, die het slachtoffer zijn geworden van onze slimmigheden,
schijnen ons lang niet zoo belachelijk toe als wij onszelf voorkomen,
wanneer anderen ons te slim af zijn geweest.

CDVIII.
De gevaarlijkste belachelijkheid van oude menschen, die
beminnelijk zijn geweest, is te vergeten, dat zij het niet meer zijn.

CDIX.
Wij zouden ons dikwijls schamen over onze schoonste daden
indien de wereld al de drijfveeren zag, die er ons toe gebracht
hebben.
 CDX.
Het grootste bewijs van vriendschap is niet onze fouten aan een
vriend bloot te leggen, maar om hem de zijne te doen zien.

CDXI.
Er zijn haast geen gebreken, die niet eerder verschoonbaar zijn
dan de middelen, die men bezigt om die te verbergen.

CDXII.
Hoe groote schande wij ook verdiend hebben, wij hebben het
bijna altijd in onze macht onzen goeden naam te herstellen.

CDXIII.
Men valt niet lang in den smaak wanneer men slechts één soort
geestigheid bezit.

CDXIV.
Gekken en dwazen zien alles slechts door de bril hunner
luimen.

CDXV.
Het verstand helpt ons soms krachtig dwaasheden te begaan.

CDXVI.
Levendigheid, die met den ouderdom toeneemt, grenst aan
zotheid.
 CDXVII.
Wie in de liefde het eerst genezen is, is altijd het best genezen.

CDXVIII.
Jonge vrouwen, die niet coquet, en mannen van leeftijd, die niet
belachelijk willen zijn, moeten nooit van de liefde spreken als van
iets, waarbij zij betrokken konden zijn.

CDXIX.
Wij kunnen groot schijnen in een werkkring, beneden onze
verdienste, maar wij schijnen dikwijls klein in eenen, die grooter is
dan wij.

CDXX.
Wij gelooven vaak standvastigheid te betoonen in het ongeluk
terwijl het slechts moedeloosheid is en wij dragen het zonder te
durven opzien, zooals de lafaards zich laten dooden uit vrees van
zich te verdedigen.

CDXXI.
Vertrouwen levert aan het gesprek meer stof dan het verstand.

CDXXII.
Alle hartstochten doen ons fouten begaan, maar de liefde voert
tot de belachelijkste.

CDXXIII.
 Weinigen verstaan de kunst oud te worden.

CDXXIV.
Wij zoeken een eer in gebreken, tegenovergesteld aan de onze;
wanneer wij zwak zijn roemen wij er op hardnekkig te zijn.

CDXXV.
Scherpzinnigheid heeft een schijn van eene gave van
voorspellen, die onze ijdelheid meer streelt dan alle andere
eigenschappen van het verstand.

CDXXVI.
De aantrekkelijkheid van het nieuwe en de lange gewoonte,
hoezeer zij tegenover elkander staan, verhinderen ons gelijkelijk de
fouten onzer vrienden op te merken.

CDXXVII.
Het meerendeel der vrienden doen u genoeg krijgen van
vriendschap, en de meeste vromen bezorgen een afkeer van
vroomheid.

CDXXVIII.
Wij vergeven gemakkelijk aan onze vrienden de gebreken,
waarmede wij niet te maken hebben.

CDXXIX.
Vrouwen, die beminnen, vergeven veel gemakkelijker groote
onbescheidenheden dan kleine trouweloosheden.
 CDXXX.
In den ouderdom der liefde, zooals in dien van het leven, leeft
men nog slechts alleen voor de kwalen, maar niet meer voor de
genoegens.

CDXXXI.
Niets dat meer belet natuurlijk te zijn dan de lust het te schijnen.

CDXXXII.
In zekeren zin eischt men een deel op van schoone daden door
die van ganscher harte te prijzen.

CDXXXIII.
Het ware kenmerk van met groote eigenschappen te zijn
geboren, is geboren te zijn zonder afgunst.

CDXXXIV.
Indien onze vrienden ons hebben bedrogen behoeft men hun
vriendschapsbetoon slechts met onverschilligheid te beantwoorden,
maar men behoort altijd gevoelig te blijven voor hun ongeluk.

CDXXXV.
Fortuin en luim regeeren de wereld.

CDXXXVI.
 Het is gemakkelijker den mensch in het algemeen dan als
eenling te kennen.

CDXXXVII.
Men moet de verdienste van een mensch niet beoordeelen aan
de hand zijner groote eigenschappen, maar naar het gebruik, dat hij
er van maakt.

CDXXXVIII.
Er is een soort levendige dankbaarheid, die de ons betoonde
weldaden niet alleen kwijtscheldt, maar die zelfs onze vrienden nog
tegenover ons in schuld laat.

CDXXXIX.
Naar vele dingen zouden wij zeker niet zoo hevig verlangen
indien wij nauwkeurig kenden datgene waarnaar wij verlangen.

CDXL.
Dat de meeste vrouwen voor vriendschap weinig toegankelijk
zijn komt daarvan dat zij flauw is, wanneer men liefde gekend heeft.

CDXLI.
Zoowel in vriendschap als in liefde is men vaak gelukkiger door
het onbekende, dan door hetgeen men weet.

CDXLII.
Wij trachten de fouten, die wij niet willen afleggen, ons als een
eer aan te rekenen.
 CDXLIII.
De hevigste hartstochten laten ons bij wijlen met rust, maar de
ijdelheid houdt ons steeds in beweging.

CDXLIV.
Oude dwazen zijn dwazer dan jonge.

CDXLV.
Zwakheid is grooter tegenstelling van de deugd dan slechtheid.

CDXLVI.
Wat de smarten van vernedering en jaloezie zoo pijnlijk maakt is
dat de ijdelheid niet kan helpen ze te dragen.

CDXLVII.
Welvoegelijkheid is de minste van alle wetten en die welke het
meest wordt opgevolgd.

CDXLVIII.
Een eerlijk gemoed heeft minder moeite om zich aan
dwarsdrijvers te onderwerpen, dan hen te leiden.

CDXLIX.
Wanneer de fortuin ons bij verrassing op een hooge plaats zet,
zonder ons daarheen geleidelijk opgevoerd te hebben, of zonder ons
daartoe te hebben opgeleid door onze verwachtingen, is het bijna
onmogelijk er zich behoorlijk te handhaven en te toonen dat men
haar waardig is.

CDL.
Onze hoogmoed groeit vaak aan met hetgeen wij van onze
andere fouten verliezen.

CDLI.
Geen lastiger zotten dan zij, die geestig zijn.

CDLII.
Er is niemand die zich, in welke hoedanigheid ook, de mindere
acht van den man van aanzien, dien hij het meeste eert.

CDLIII.
In groote zaken moet men niet zoo zeer trachten nieuwe kansen
te scheppen, dan wel de bestaande te benutten.

CDLIV.
Niet vaak gebeurt het dat men een slechten koop deed door
afstand te doen van het goed, dat men van ons spreekt, op
voorwaarde van geen kwaad te spreken.

CDLV.
Hoe zeer de wereld geneigd is verkeerd te oordeelen erkent zij
toch vaker valsche verdienste, dan dat zij ware verdienste onrecht
doet.
 CDLVI.
Men kan soms een zot zijn al bezit men geest, maar nimmer is
men het met gezond verstand.

CDLVII.
Wij zouden verder komen door ons voor te doen zooals wij zijn,
dan door pogen te schijnen, wat wij niet zijn.

CDLVIII.
Onze vijanden komen in hun oordeel over ons dichter bij de
waarheid dan wij zelf.

CDLIX.
Er zijn verschillende geneesmiddelen tegen de liefde, maar niet
één is onfeilbaar.

CDLX.
Wij weten op verre na niet waartoe onze hartstochten ons
kunnen voeren.

CDLXI.
De ouderdom is een tiran, die op verbeurte van het leven alle
vermaken van de jeugd verbiedt.

CDLXII.
 De zelfde hoogmoed, die ons de fouten doet afkeuren, waarvan
wij ons vrij achten, doet ons de goede eigenschappen minachten,
welke wij niet bezitten.

CDLXIII.
Dikwijls is er meer hoogmoed dan goedheid in ons beklag der
ongelukken onzer vijanden; het dient om hen te doen gevoelen, dat
wij door hun bewijzen van medelijden te geven, boven hen staan.

CDLXIV.
Er is een overmaat van goed en van kwaad, dat zich aan onze
waarneming onttrekt.

CDLXV.
Op verre na wordt de onschuld niet zoo goed beschermd als de
misdaad.

CDLXVI.
Van alle hevige hartstochten staat den vrouwen de liefde het
minst slecht.

CDLXVII.
De ijdelheid laat ons meer dingen in strijd met onzen smaak
doen dan het verstand.

CDLXVIII.
Uit slechte eigenschappen zijn soms groote talenten geboren.
 CDLXIX.
Nimmer verlangt men iets vurig wanneer men het alleen met het
verstand verlangt.

CDLXX.
Al onze hoedanigheden zijn onwis en twijfelachtig, zoowel de
goede als de slechte, en zij zijn bijna altijd ten speelbal aan de
omstandigheden.

CDLXXI.
In haar eerste hartstochten beminnen de vrouwen den minnaar,
in de latere de liefde.

CDLXXII.
De hoogmoed heeft zijn grillen even als de andere hartstochten;
men schaamt zich te erkennen jaloersch te zijn, en men gaat er prat
op het te zijn geweest en het te hebben kunnen zijn.

CDLXXIII.
Hoe zeldzaam ware liefde ook moge zijn, zij is het nog minder
dan ware vriendschap.

CDLXXIV.
Van weinig vrouwen duurt de beteekenis langer dan de
schoonheid.

CDLXXV.
 Het verlangen om beklaagd of bewonderd te worden is dikwijls
het grootste deel van onze vertrouwelijkheid.

CDLXXVI.
Onze afgunst duurt altijd langer dan het geluk van hen, die wij
benijden.

CDLXXVII.
De zelfde karaktervastheid, die ons helpt liefde te weerstaan,
dient ook om haar hevig en duurzaam te maken; en zwakke
personen, die altijd door hartstochten bewogen worden, zijn er bijna
nimmer werkelijk van vervuld.

CDLXXVIII.
De verbeelding kan niet zooveel tegenstrijdigheden uitdenken
als er zich van nature in ieders hart bevinden.

CDLXXIX.
Slechts menschen met karaktervastheid kunnen werkelijk
zachtmoedig zijn; zij, die zacht schijnen, zijn gewoonlijk slechts zwak
en worden licht bitter.

CDLXXX.
Verlegenheid is een gebrek, waarover men niet zonder gevaar
de personen berispt, die men er van wil genezen.

CDLXXXI.