How do organizations make strategic choices during the time of fundamental institutional transitions such as those sweeping numerous emerging economies? To answer this question, a two-phase model of institutional transitions is developed in this article. I focus on the longitudinal process to move from a relationship-based, personalized transaction structure calling for a network-centered strategy to a rule-based. Impersonal exchange regime suggesting a market-centered strategy. I then identify the points of inflection; predict strategic choices for incumbent, entrepreneurial, and foreign firms; and delineate their performance implications. How do organizations make strategic choices during the time of fundamental and comprehensive institutional transitions? In three decades of research since the publication of Child's (1972) seminal paper, researchers have produced an impressive body of knowledge on how strategic choices are made (Child, 1997; Oliver, 1991). However, most of their studies focus on strategic choices in relatively stable institutional environments. Even when scholars study how organizations respond to institutional transitions, they typically concentrate on changes in one industry while the overall institutional framework of the country remains mostly unchanged. Such industry-specific changes, however, pale in comparison with the massive institutional transitions taking place in many emerging economies. Unfortunately, little is known about how organizations make strategic

This article identifies the emergence of the institution-based view as a third leading perspective in strategic management (the first two being the industry-based and resource-based views). We (a) review the roots of the institution-based view, (b) articulate its two core propositions, and (c) outline how this view contributes to the four fundamental questions in strategy. Overall, we suggest that the institution-based view represents the third leg of a strategy tripod, overcomes the long-standing criticisms of the industrybased and resource-based views ’ lack of attention to contexts, and contributes significant new insights as part of the broader intellectual movement centered on new institutionalism.

“What determines the scope of the firm? ” is one of the most fundamental questions in strategic management. We argue that, in addition to product relatedness, a focus on institutional relatedness—defined as an organization’s informal linkages with dominant institutions that confer resources and legitimacy—helps answer this question. We address this question both longitudinally (firms in developed and emerging economies over time) and cross-sectionally (developed versus emerging economies), thus contributing to an institution-based theory of corporate diversification. As part of the broader intellectual movement centered on new institutionalism throughout the social sciences in recent decades (North, 1990; Powell & DiMaggio, 1991; Scott, 1995; Williamson, 2000), strategic approaches to organization are considering institutional forces much more explicitly than before (Henisz, 2003; Oliver, 1997; Peng, 2003, 2006). Researchers increasingly realize that institutions are more than background conditions and that “institutions directly determine what arrows a firm has in its quiver as it struggles to formulate and implement strategy” (Ingram & Silverman, 2002: 20; emphasis added). Positioned to deepen our understanding of how an institutional perspective adds to strategy re-

www.jibs.net Since the 1990s, Central and Eastern Europe (CEE) has provided unique societal quasi-experiments, which represent opportunities to test the applicability of existing theories in international business and management studies and to develop new ones. Specifically, three lines of theorising have been advanced: (1) organisational economics theories; (2) resource-based theories; and (3) institutional theories. For each of these theories, we discuss how they contribute to the understanding of key issues, such as entry strategies of foreign investors, restructuring strategies of local incumbents, and entry and growth strategies of entrepreneurs. On this basis, we assess how CEE research has influenced the overall trajectories of theory development. CEE research has in particular highlighted the importance of contextual influences such as institutions. Thus, scholars have aimed at incorporating institutions into theories (such as organisational economics theories and resource based theories) and advancing an institution-based view of business strategy as a complementary perspective. We outline how future research in CEE and other emerging economies may advance this research agenda further.

Abstract. This article contributes to the literature on network strategies and institutional transitions in emerging economies in Asia by identifying a realistic, intermediate phase between the early and late phases of institutional transitions suggested by Peng (2003). Focusing on the intermediate phase, we advance two arguments based on network strength and network content. First, in terms of network strength, we leverage earlier insights that networks can be classified as strong ties and weak ties. Consequently, we suggest that as institutional transitions unfold, strong-tie-based networks, instead of being phased out, are being transformed into weak-ties-based networks. Second, from a network content standpoint, we argue that the various scale and scope of institutional transitions shape the content of different networks which focus on business-to-government (B2G) ties and business-to-business (B2B) relationships. Our propositions delineate how different transitions of political and legal institutions affect the evolution of B2G and B2B networks. Overall, we suggest that networks not only differ in strength but also in content, and that their evolution is driven by the impact of different dimensions of institutional transitions governing B2G and B2B relationships.

Filling a gap in the interlocks literature which has been largely centered on the West, we present preliminary data on the pattern of interlocking directorates among the top 200 largest corporations in pre-1997 Hong Kong. Then we identify four separate groups of firms in Hong Kong, and suggest propositions based on the resource dependence perspective on the critical relationships among their interlocking directorates, firm strategies, and performance. These propositions have the potential to form the building block of an emerging research agenda that will shed light on the role of interlocking directorates in an increasingly important part of the world. 1.

abstract Existing strategic group studies have rarely examined ownership type as a variable to classify firms in an industry. Using Chinese firms of different ownership types, we suggest that ownership type can be a parsimonious and important variable that managers use to cognitively classify firms into different strategic groups. While ownership itself is an objective variable, we contend that different ownership types lead to different managerial outlook and mentality due to a number of macro and micro foundations giving rise to various managerial cognitions. Employing the Miles and Snow typology, we find that state-owned enterprises (SOEs) and privately-owned enterprises (POEs) tend to adopt defender and prospector strategies, respectively, while collectively-owned enterprises (COEs) and foreign-invested enterprises (FIEs) exhibit an analyser orientation that falls between defenders and prospectors on the strategy continuum. Three statistical tests suggest that ownership types can be used to successfully predict strategic group memberships in China’s emerging economy.

abstract Acquisition of capabilities is both imperative and difficult in emerging economies. This study adopts a duel network perspective to examine how the source networks and recipient networks in which international joint venture (IJV) partners operate influence inter-organizational transfer and diffusion of capabilities. We study multiple cases in the Chinese automotive industry to investigate how various factors of MNE source networks and the local recipient networks (business groups in China or qiye jituan) affect knowledge transfer from the MNE source networks into IJVs and knowledge diffusion from IJVs to their local recipient networks. The study suggests ways that the dual networks influence both types of knowledge transfer. We found both positive and negative effects of recipient and source networks on knowledge inflow to the IJVs and knowledge outflow from IJVs. The dual networks perspective is particularly relevant for emerging economies where the asymmetry between the knowledge, power and motivations of the recipient and source networks may significantly affect the knowledge transfer outcome.

réservés pour tous pays. Toute traduction et toute reproduction sous quelque forme que ce soit est interdite. Les textes publiés dans la série Les Cahiers de la Chaire de management stratégique international W-J.- Somers n’engagent que la responsabilité de leurs auteurs. Distribué par la Chaire management stratégique international Walter-J.-Somers, HEC Montréal, 3000 chemin de la Côte-Sainte-Catherine, Montréal, Québec, H3T 2A7. Environment, strategy and leadership patterns as determinants of performance: A study of Cameroonian firms In this article, we use a unique set of microeconomic data on a relatively large sample of Cameroonian firms, gathered during the 1992-1995 period, to describe the nature of these firms institutional and competitive environment, their strategic responses, and the characteristics of their top managers. Then we study the relationships that exist between performance of these firms, and three sets of variables describing environment, strategy and leadership characteristics. We show that there are clear firm behaviors that can be described by configurations of these variables, and such configurations generally explain performance. Important implications for both research and practice are suggested. RÉSUMÉ

Abstract. This article argues that starting with substantial divergence, China strategy research and global strategy research are now converging. This scholarly transformation is largely driven by the recent rise of the Chinese economy, which has emerged from being a peripheral member of the global economy to a core contributor. I trace some of the early roots of China research in our field, outline the beginning of my own China research, and discuss my more recent research which has become more global incorporating substantial China and non-China elements. In addition, I use the emergence of the institution-based view of strategy, which has been largely propelled by China research, to shed light on how China research may make more global theoretical contributions beyond the immediate context of this research. Finally, to further push China research to the center stage of global strategy research, I recommend that scholars “act local, think global.”