National University of Singapore

NUS Business School

BMA5419 Global Management of Asian Multinationals

Session: Semester 1, AY2012/13

Department:Management & Organisation

Instructor:Professor Audrey H. H. Tsui

Email:

Office: Mochtar Riady Building

BIZ1-07-35

Course Objectives

With the U.S. and most EU economies being confronted by heavy sovereign debts and huge unemployment, Asia is deemed to have emerged as an engine of growth in the next phase of global development. One also witnesses there is an increasing representation of Asian multinationals among the rank of the world’s leading corporations. What is Asia’s position in the emerging world economic order? What role will Asian enterprises play in an increasingly interconnected global supply chain? How can Asian multinationals compete in the world market once dominated by the much more established global conglomerates?

This module aims to expose students to the challenging paths of selected Asian multinationals in their journey of globalization. Students will understand the major driving forces, both externally and from within the corporate, that stimulate some pioneer Asian multinationals from Japan, S. Korea and Taiwan in going global, and the critical factors that constitute their rise and fall.

Next, the module will study the rapid rise of some emerging Asian MNCs, especially those from China, India and selected S.E. Asian countries. Students will learn how rapid changes in the domestic and global business contexts have shaped the international strategies of these Asian MNCs.The module also aims to expose students to a better appreciation of the difficulties Asian multinationals face in nurturing global brands; in overcoming inadequacies in international market know-how and foreign regulations; and in the management of complexities and diversities.

Major References:

  1. Antoine van Agtmael. The Emerging Markets Century: How a New breed of World-Class Companies is Overtaking the World. New York: Free Press, 2007
  2. PremachandraAthukorala (Edited) The Rise of Asia: Trade and Investment in Global Perspective. New York: Routledge, 2010
  3. Lowell Dittmer and George T. Yu (Ed.) China, the Developing World, and the New Global Dynamic, Boulder, Colorado: Lynne Rienner Publishers, Inc. 2010

Other References:

  1. Anil K. Gupta, Toshiro Wakayama and SriniRanganGlobal Strategies for Emerging Asia. Jossey-Bass, July, 2012
  2. Jean-Paul Larcon (Ed.) Chinese Multinationals. Singapore: World Scientific, 2009
  3. A compilation of journal articles and published reports of relevance to the course themes.

Teaching Methodology

The class sessions will be highly interactive in nature. Students are held responsible for their own learning with the facilitation of case studies, role plays, debates, learning projects, buzz group discussions, videos, guest talks and lectures.

Assessments

Case Analysis, Oral Presentation & Written Report40%

Critique on Case Presentation 10%

Learning ProjectEssay Report 40%

Class Participation 10%

Major Topics

  1. Globalization of Emerging Economies: A Rebalance of World Order

Readings:

1) SharadVerma, Kanika Sanghi, HolgerMichaelis, Patrick Dupoux, DinishKhanna, and Philippe Peters, 2011 BCG Global Challengers “Companies on the Move: Rising Stars from Rapidly Developing Economies are Reshaping Global Industries”

  1. Asia’s Intra-regional Trade and Investment: NewTrends and Developments

Readings:

1)PremAthukorala and Hal Hill, The Rise of Asia: Trade and Investment in Global Perspective, Chap.2 “Asian Trade and Investment: Patterns and Trends:, 2010

2)UNCTAD World Investment Report 2012: Towards a New Generation of Investment PoliciesCHAPTER II Regional Trends in FDI: EastAsia, SE Asia and South Asia, pp.42-47

3)Lowell Dittmer and George Yu China, the Developing World, and the New Global Dynamic,2010,Chap.4 JornDosch, “China and Southeast Asia: A New Regional Order in the Making”

  1. Emergence of Asian Multinationals: Opportunities and Challenges

Readings:

1)Huei-Ting Tsai and Andreas B. Eisingerich, “Internationalization Strategies of Emerging Markets Firms”, California Management Review, Vol. 53, No. 1 Fall 2010

2)Anil K Gupta and Haiyan Wang Getting China and India Right, Chap. 3 “ Megamarkets and Microcustomers—Fighting for Local market Dominance” Jossey Bass, 2009

3)Rajesh K. Pillania, Guest Editorial, “Special Issue on Emerging Markets and Multi-national Enterprises”, The Multinational Business Review, Volume 17 • Number 2, 2010

  1. Building Resilience of An Established Asian Brand

Readings:

1)Sierk A. Hornaand Adam R. Cross, “Japanese Management at a Crossroads? The Changing role of China in the Transformation of Corporate Japan”, Asia Pacific Business Review, Vol. 15, No. 3, July 2009, 285–308

2)Jos Gamble, Jonathan Morris and Barry Wilkinson, “Mass Production is Alive and Well: the Future of Work and Organization in East Asia” Int. Journal of Human Resource Management 15:2 March 2004, 397-409

(Case 1: Sony’s Management Reshuffling)

  1. Technical Superiority and Customer Connection

Readings:

1)Hongshik Lee “Decision to Invest abroad: The Case of South Korean Multinationals” 50Pacific Economic Review, 15: 2 (2010)81..302

2)Hongshik Lee “The Destination of Outward FDI and thePerformance of South Korean Multinationals”Emerging Markets Finance & Trade / May–June 2010, Vol. 46, No. 3, pp. 59–66.

3)Donna Kelley and Hyunsuk Lee “Managing Innovation Champions: The Impact of Project Characteristics on the Direct Manager Role” Journal of Production and Innovation Management 2010, 27:1007–1019

(Case 2: Samsung setting new trend)

  1. From Imitation to Innovation: Competitive Advancement of Taiwan’s Electronics Industry

Readings:

1)Wen-Bin Chuang and Hui-lin Lin, “Interdependence between Overseas and

Domestic R&D Activities: Evidence from Taiwanese Multinationals”, Asian

Economic Journal 2010, Vol. 24 No. 4, 305–332

2)ChingChingChang, “The Effectiveness of Using a Global Look in an Asian Market” Journal of Advertising Research, June 2 0 0 8

  1. Managing Business Portfolio for A Balanced Growth: Insights Drawn from The Business Empire of Li KaShing

Readings:

1)Mark Johnson “Fortune Alights in Singapore” Asia Money, Sept. 2003, Vol 14, Issue 7, p. 2; Josephine, Lee “Ka-Ching!” Forbes Asia, 03/29/2004, Vol. 173 Issue 6, p54-556; Thean, Lee Cheang, “HK Tycoon Li KaShing Firm Buying Malls in Malaysia”, Asia News Network, 27/05/2011; Compiled Notes on “LKS’s Investments in Technology Sector”

  1. Growth through International Mergers and Acquisitions

Readings:

1)Anil Gupta, Toshiro Wakayama and U.SrinivasaRangan (Ed.) Global Strategies for Emerging Asia, Chap.6 “Dubious Value of International Acquisitions by emerging Economy Firms: The Case of Indian Firms” by AnnelKarnani, 2012

2)Sunny Li Sun, Mike W. Peng, Bing Ren, Daying Yan “A Comparative Ownership Advantage Framework for Cross-border M&As: The Rise of Chinese and Indian MNEs”, Journal of World Business 47 (2012) 4–16

(Case 3: Tata Motors Goes Global)

  1. China’s New Globalization Strategy

Readings:

1)Dilip K. Das, “China in the domain of international business”Human Systems Management 30 (2011) 71–83

2)BalaRamasamy, Matthew Yeung and Sylvie Laforet “China’s Outward Foreign Direct Investment: Location Choice and Firm Ownership” Journal of World Business, 47 (2012) 17-25

3) Marco Sanfilippo, “Chinese FDI to Africa: What Is the Nexus with Foreign Economic Cooperation?” African Development Review, Vol. 22, No. S1, 2010, 599–614

  1. Building and Managing a Chinese Global Brand

Readings:

1)Adele Parmentola, “The Internationalization Strategy of New Chinese

Multinationals: Determinants and Evolution”, International Journal of Management Vol. 28 No. 1 Part 2 Mar 2011

2)Jean-Paul Larcon (Ed) Chinese Multinationals Chap 5 Hu Zuohao and Wang Gao “International Marketing Strategies of Chinese Multinationals” pp.100-111; Chap.6 “Technology-based Competition and Chinese Multinationals” pp.127-137, 146-149

(Case 4: Lenovo—An Emerging Market Leader in the PC+ Era)

(Case 5: Capturing the Emerging Markets—Lenovo’s Next Phase of Growth)

  1. ASEAN as New Investment Hub

Readings:

1)Yunhua Liu and BeoyKui Ng, “Facing the Challenge of the Rising Chinese

Economy: ASEAN’s Responses” Review of Development Economics, 14(3), 666–682, 2010

2)Molly Lesher and Michael G. Plummer “Back to Basics: Post-crisis Macroeconomic Rebalancing in ASEAN” ASEAN Economic Bulletin Vol. 28, No. 2 (2011), pp. 160–82

(Case 6: Thailand biotech business: Product of the National Policy)

  1. Sustainability Development in Asia

Readings:

1)Benjamin Loh “Public Infrastructure Financing in Southeast Asia” Regional Economic Outlook, 2010/2011 Southeast,Institute of Southeast Asian Studies, pp. 92-96.

2)Jacob Park, “Sustainable consumption and the financial sector: Analyzing the markets for responsible investment in Hong Kong and Japan”, International Journal of Consumer Studies 33 (2009) 206–214

  1. Leading in the Emerging Markets Century

Readings:

1)Antoine van Agtmael The Emerging Markets Century, Chap. 13 “A Creative Response”

14. Presentation of Independent Learning Projects