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Unpublished Paper
Re-Imagining Mainstream Strategy Theory for Emerging Markets: Relational Contracting in Asian Production Networks
Asia Academy of Management Conference, Taipei, Taiwan (2008)
  • Roberto Martin N. Galang
Abstract

Drawing from relational contract theory, this paper presents alternative strategies for organizing production networks in emerging markets by utilizing successful Asian organizational structures to illustrate strategy archetypes. Given the institutional deficiencies that make third party contract enforcement problematic in emerging markets, the paper analyzes three different relational employment and outsourcing contract forms through which the lead firm in a production network can maintain a quasi-judicial role in resolving the contracting problems inherent in multi-firm transactions. The production network templates embodied by Korean chaebols, Japanese keiretsus and Taiwanese guanxi relationships use different explicit and implicit contractual arrangements to adjudicate inter-party disputes internally and can serve as more appropriate benchmarks for firms operating in emerging markets as opposed to existing templates based on mainstream strategy theories generated in developed countries.

Publication Date
2008
Citation Information
Roberto Martin N. Galang. "Re-Imagining Mainstream Strategy Theory for Emerging Markets: Relational Contracting in Asian Production Networks" Asia Academy of Management Conference, Taipei, Taiwan (2008)
Available at: http://works.bepress.com/robertogalang/9/