Torben Pedersen | Copenhagen Business School, CBS (original) (raw)

Papers by Torben Pedersen

Journal of …, Jan 1, 2010

In the largest sense, global strategy amounts to (1) the optimal disaggregation or slicing of the... more In the largest sense, global strategy amounts to (1) the optimal disaggregation or slicing of the firm's value chain into as many constituent pieces as organizationally and economically feasible, followed by (2) decisions as how each slice should be allocated geographically ('offshoring') and organizationally ('outsourcing'). Offshoring and outsourcing are treated as strategies that need to be simultaneously analysed, where just 'core' segments of the value chain are retained in-house, while others are optimally dispersed geographically, as well as dispersed over allies and contractors. This amounts to a reconsideration of the nature of the firm that captures the dynamic changes in global configuration and a reconsideration of what constitutes 'core' activities that need to be retained internally. The article proposes a new research agenda that searches for each firm's optimal degree of disaggregation and global dispersion given that further scattering of value chain activities entail benefits as well as increased complexity and costs.

Publication of the Department of …, Jan 1, 2000

We refine the prominent theory of the process by which firms expand internationallyinternationali... more We refine the prominent theory of the process by which firms expand internationallyinternationalization theory. By augmenting the behavioral theory of the firm (which is the basis of internationalization theory) with theories of foreign direct investment, we argue that international expansion is not a gradual incremental process as argued by internationalization theory. Rather, we hypothesize that international expansion is a discontinuous process characterized by an initial "big step." We expect that the differences of operating in one's home country versus abroad are the major difficulties faced by foreign firms, and subsequently the differences between foreign countries are only marginal. As a result, we hypothesize that the internationalization process will be characterized by the following observations: (a) firms take a long period of time to make their first international investment; (b) firms take shorter but constant periods of time for subsequent investments; and (c) no relationship between time to expansion and the cultural distance of the target country will exist. We examine the international expansion activities of 176 Danish firms over 150 years and find support for these arguments.

International Studies of Management & …, Jan 1, 1999

... Dominant minority owner-ship (a characteristic of bank participation) is common in Germany. H... more ... Dominant minority owner-ship (a characteristic of bank participation) is common in Germany. However, Table 2 fails to support hypothesis 4. The ownership structures in ... Page 9. BUSINESS SYSTEMS AND CORPORATE GOVERNANCE 51 ...

Scandinavian Journal of …, Jan 1, 1999

Although the issue of switching costs does appear in some of the frameworks for choosing modes of... more Although the issue of switching costs does appear in some of the frameworks for choosing modes of foreign operation, the treatment of these costs is fairly cursory. In this article we propose a simple classification of switching costs which distinguishes between ''take-down'' costs and ''set-up'' costs. A distinction is also made between measurable and perceptual switching costs. The article outlines the assumptions regarding switching costs that are embedded in current theoretical approaches to the internationalization of firms, and discusses the possible effects of such costs on the choice and timing of foreign operation methods.

Journal of International …, Jan 1, 2001

The opening to foreign banks in the Nordic countries provides us with an opportunity to study the... more The opening to foreign banks in the Nordic countries provides us with an opportunity to study the evolution of the foreign bank sector in situations where the sector had a definite start date. Despite low survival rates for individual foreign banks, on balance the foreign bank sector gained market share (in terms of the assets of the banking system) over time.

Journal of International Management, Jan 1, 1999

Apparently, the pace by which companies commit resources to foreign markets differs significantly... more Apparently, the pace by which companies commit resources to foreign markets differs significantly. We test six propositions that potentially explain why some companies undertake faster foreign market commitment than others. Suggested factors discriminating between a fast and a slow foreign market commitment are (1) whether the company is producing manufactures or services; (2) foreign market entry motives; (3) company size; (4) foreign market stability; (5) experience with foreign markets similar to the entered; and (6) degree of globalization in the industry. Using multiple regression analysis on Danish MNE data, we obtain supportive empirical evidence for all propositions, except for number 5, experience with similar markets. The results indicate that resource commitment to stable, foreign markets undertaken by small, market-seeking, manufacturing companies operating in domestic industries is slow relative to the commitment of resources to unstable markets made by firms with other attributes (large firms, service firms, and motives other than market seeking) operating in global industries. The study suggests that a globalization of industries since the 1970s has prompt companies to increase the pace by which they commitment resources to foreign markets.

MIR: Management International Review, Jan 1, 1996

The paper compares ownership structures among the 100 largest non-financial companies in Denmark,... more The paper compares ownership structures among the 100 largest non-financial companies in Denmark, France, Germany, Great Britain, the Netherlands and Sweden. Relying on existing theories a set of hypotheses are formulated to explain corporate ownership by ...

Journal of international …, Jan 1, 2008

International Review of Law and Economics, Jan 1, 1998

The paper examines the relationship between main industry and corporate ownership structures usin... more The paper examines the relationship between main industry and corporate ownership structures using a unique database covering the 100 largest companies in each of 12 European countries. The predictive power of economic ownership theory is tested and generally supported. We find evidence that industry affiliation has a significant effect on ownership structure after controlling for national differences. The industry effect is found to be related to differences in firm size, industry growth, earnings volatility, capital, and research intensity.

International Business Review, Jan 1, 2002

This paper explores what factors motivate exporters to change their foreign market servicing mode... more This paper explores what factors motivate exporters to change their foreign market servicing mode from using independent distributors and agents to setting up their own local sales organization, and what factors impede such changes (switching costs). Using data from a sample of 214 Danish exporters, of which 32 had changed their foreign operation method between 1992 and 1997, the analysis shows that switching cost factors are indeed of particular importance in order to explain the incidence of such changes.

International Studies of …, Jan 1, 2002

Analyzing the internationalization of large companies from small countries requires understanding... more Analyzing the internationalization of large companies from small countries requires understanding the process of internationalization by examining the interface between micro (firm strategies) and macro (the forces of centripetal and centrifugal) level factors. We examine the growth and international expansion of the ten largest companies in Denmark, Finland, and Norway over the period 1990 to 1999. Most companies in the sample became more international during the last decade across basically all the investigated dimensions of internationalization. This was particularly accentuated in the case of Norwegian firms, possibly due to their lower degree of internationalization at the beginning of the period. The study also shows that companies mainly have internationalized their operations activities, while such strategic activities as research and development activities and headquarters functions to a much larger extent are kept in the home country.

... OFFSHORING STRATEGIES A CASE APPROACH JACOB PYNDT ... Although ship owners were not the pri... more ... OFFSHORING STRATEGIES A CASE APPROACH JACOB PYNDT ... Although ship owners were not the primary customers, their importance could not be neglected as they operated the engines following the purchase. ... Mr. Yu had a reputation as Korea's top turnaround expert. ...

Journal of International Marketing, Jan 1, 2004

This empirical study addresses the question of how firms' perceived knowledge about local markets... more This empirical study addresses the question of how firms' perceived knowledge about local markets develops during the period of entry or expansion. Different predictions of how foreign market familiarity is changing during the period of entry are derived from the literature on firms' internationalization process. The predictions are made subject to empirical examination using a set of primary data of current (i.e. at the point in time of mail interviews) foreign operation business operations reported by managers of Danish international firms. The empirical study also gives insight to the incidence and character of 'shock effects' in relation to foreign market entry: the phenomenon of entrant firms' inclination to underestimate differences between the home and host country in terms of business environments. The data support the supposition that entrant firms in general are exposed to such a 'shock effect'. On average, the foreign market familiarity as perceived by the entrant firms reach its lowest level seven years after entry or initiation of the foreign market expansion. The company data indicate that entrant firms in general experience the shock effect in relation to entry of adjacent, rather than distant, countries. Hence, the 'psychic distance paradox' hypothesis is supported. Also, entrant firms in general experience the shock effect in relation to acquisition of tacit rather than explicit knowledge, and furthermore, the data suggest that the shock effect befalls producers of customized products, but not producers of standardized products.

The Multinational Corporate …, Jan 1, 1998

An important body of literature on multinational corporations (MNCs) relates to how they are orga... more An important body of literature on multinational corporations (MNCs) relates to how they are organised, and especially the role of the subsidiaries within the organisation,(see Doz and Prahalad, 1981; Egelhoff, 1988; Bartlett and Ghoshal, 1989; Forsgren, 1989; Ghoshal and ...

Journal of …, Jan 1, 2007

MIR: Management International Review, Jan 1, 2005

Empirical studies on the impact of knowledge management on the performance of MNC subsidiaries re... more Empirical studies on the impact of knowledge management on the performance of MNC subsidiaries remain elusive to date. This study examines the effect of knowledge management tools such as corporate university, communities of practice, group benchmarking, learning systems and rewards upon absorptive capacity and performance with unique data from subsidiary units in a large German MNC -Heidelberger Cement.

International Business Review, Jan 1, 1999

… Journal of the Economics of Business, Jan 1, 1999

MIR: Management International …, Jan 1, 2003

Knowledge is ascribed a key role when explaining the existence and the growth of multinational co... more Knowledge is ascribed a key role when explaining the existence and the growth of multinational companies (MNCs). The effective dissemination throughout the MNC organization of valuable knowledge acquired by its local affiliates is seen as an important source of competitive advantage. Knowledge differs in characteristics and so do the available transfer mechanism. As such, it is essential that the MNC employs the mechanism of transfer that suits the specific knowledge characteristics. The use of unsuitable transfer mechanisms may cause loss of knowledge in the process of transmission or may involve unnecessarily high communication costs -both with potentially negative effects on the performance of the MNC. Focusing on internationalization knowledge this large-scale empirical study explores the incidence and the performance implications of fit between knowledge characteristics and transfer mechanisms as used by Danish MNCs. It is found that a substantial proportion of the observed MNC knowledge transfer transactions may be classified as 'misfits' and to some extent do these 'misfits' result in impaired performance of the MNCs. (Knowledge Transfer, Knowledge Characteristics, Multinational Companies) __________________________________________________________________ 1 1977, p. 30).