IDEAS home Printed from https://ideas.repec.org/a/sae/ausman/v31y2006i2p293-311.html
   My bibliography  Save this article

Administrative Heritage: An Exploratory Study of Large Australian Firms

Author

Listed:
  • Tatiana Zalan

    (Department of Management, University of Melbourne, Parkville, VIC 3010.)

  • Geoffrey Lewis

    (Professorial Fellow, Melbourne Business School, University of Melbourne, Parkville, VIC 3010.)

Abstract

In this study we address the existing gap in the literature on the strategic evolution of Australian MNCs and the effect their administrative heritage, developed in the domestic market, had on their ability to compete internationally. We explore the administrative heritage of eleven large Australian-owned firms in four industries and conclude that these firms had a distinct administrative heritage—domestic portfolio mentality and reliance on strategic assets for competitive advantage, coupled with limited FDI traditions. We contend that the firms' administrative heritage explains in part their lack of success in international markets. Our findings support the propositions advanced by other scholars (e.g. Bartlett & Ghoshal 1989; Collis 1991) that a firm's administrative heritage establishes unique constraints on strategic choice.

Suggested Citation

  • Tatiana Zalan & Geoffrey Lewis, 2006. "Administrative Heritage: An Exploratory Study of Large Australian Firms," Australian Journal of Management, Australian School of Business, vol. 31(2), pages 293-311, December.
    • Handle: RePEc:sae:ausman:v:31:y:2006:i:2:p:293-311
    DOI: 10.1177/031289620603100206
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/031289620603100206
    Download Restriction: no
    File URL: https://libkey.io/10.1177/031289620603100206?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Yeaple, Stephen Ross, 2003. "The complex integration strategies of multinationals and cross country dependencies in the structure of foreign direct investment," Journal of International Economics, Elsevier, vol. 60(2), pages 293-314, August.
    2. Jensen, Michael C, 1986. "Agency Costs of Free Cash Flow, Corporate Finance, and Takeovers," American Economic Review, American Economic Association, vol. 76(2), pages 323-329, May.
    3. Charles W. L. Hill & Michael A. Hitt & Robert E. Hoskisson, 1992. "Cooperative Versus Competitive Structures in Related and Unrelated Diversified Firms," Organization Science, INFORMS, vol. 3(4), pages 501-521, November.
    4. Forsyth, P.J., 1990. "Can Australian Compete? A Perspective on the International Competitiveness of the Australian Economy," CEPR Discussion Papers 246, Centre for Economic Policy Research, Research School of Economics, Australian National University.
    5. David J. Collis, 1991. "A resource‐based analysis of global competition: The case of the bearings industry," Strategic Management Journal, Wiley Blackwell, vol. 12(S1), pages 49-68, June.
    6. Roland Calori & Michael Lubatkin & Philippe Very & John F. Veiga, 1997. "Modelling the Origins of Nationally-Bound Administrative Heritages: A Historical Institutional Analysis of French and British Firms," Organization Science, INFORMS, vol. 8(6), pages 681-696, December.
    7. Alan M. Rugman & Alain Verbeke, 2005. "A Note on the Transnational Solution and the Transaction Cost Theory of Multinational Strategic Management," Chapters, in: Analysis of Multinational Strategic Management, chapter 2, pages 16-26, Edward Elgar Publishing.
    8. Kathleen M. Eisenhardt & Jeffrey A. Martin, 2000. "Dynamic capabilities: what are they?," Strategic Management Journal, Wiley Blackwell, vol. 21(10‐11), pages 1105-1121, October.
    9. Philip Yetton & Jeremy Davis & Peter Swan, 1991. "Going International: Export Myths and Strategic Realities—Executive Summary," Australian Journal of Management, Australian School of Business, vol. 16(2), pages 229-237, December.
    10. David J. Teece & Gary Pisano & Amy Shuen, 1997. "Dynamic capabilities and strategic management," Strategic Management Journal, Wiley Blackwell, vol. 18(7), pages 509-533, August.
    11. Riordan, Michael H. & Williamson, Oliver E., 1985. "Asset specificity and economic organization," International Journal of Industrial Organization, Elsevier, vol. 3(4), pages 365-378, December.
    12. Gunther Tichy, 2001. "What Do We Know about Success and Failure of Mergers?," Journal of Industry, Competition and Trade, Springer, vol. 1(4), pages 347-394, December.
    13. Rugman, Alan & Hodgetts, Richard, 2001. "The end of global strategy," European Management Journal, Elsevier, vol. 19(4), pages 333-343, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Wolf, Joachim, 2008. "Die Internationalisierung der Unternehmenstätigkeit aus der Perspektive der Pfadabhängigkeitstheorie," Manuskripte aus den Instituten für Betriebswirtschaftslehre der Universität Kiel 638, Christian-Albrechts-Universität zu Kiel, Institut für Betriebswirtschaftslehre.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Rui Baptista & Murat Karaöz & João Correia Leitão, 2020. "Diversification by young, small firms: the role of pre-entry resources and entry mistakes," Small Business Economics, Springer, vol. 55(1), pages 103-122, June.
    2. David Benson & Rosemarie H. Ziedonis, 2009. "Corporate Venture Capital as a Window on New Technologies: Implications for the Performance of Corporate Investors When Acquiring Startups," Organization Science, INFORMS, vol. 20(2), pages 329-351, April.
    3. Lin, Hsing-Er & Hsu, I-Chieh & Hsu, Audrey Wenhsin & Chung, Hsi-Mei, 2020. "Creating competitive advantages: Interactions between ambidextrous diversification strategy and contextual factors from a dynamic capability perspective," Technological Forecasting and Social Change, Elsevier, vol. 154(C).
    4. Ayden, Yuksel & Tatoglu, Ekrem & Glaister, Keith W. & Demirbag, Mehmet, 2021. "Exploring the internationalization strategies of Turkish multinationals: A multi-perspective analysis," Journal of International Management, Elsevier, vol. 27(3).
    5. Daniel Schallmo & Christopher A. Williams & Jochen Lohse, 2019. "Digital Strategy — Integrated Approach And Generic Options," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 23(08), pages 1-24, December.
    6. Michailova, Snejina & Zhan, Wu, 2015. "Dynamic capabilities and innovation in MNC subsidiaries," Journal of World Business, Elsevier, vol. 50(3), pages 576-583.
    7. Liu, Ting & Li, Xizhuo, 2022. "How Do MNCs Conduct Local Technological Innovation in a Host Country? An Examination From Subsidiaries' Perspective," Journal of International Management, Elsevier, vol. 28(3).
    8. Gammelgaard, Jens, 2001. "Time and Path Dependencies in Foreign Acquisition Behaviours The History of Danish Takeovers Abroad 1888 to 1993," Working Papers 3-2001, Copenhagen Business School, Department of International Economics and Management.
    9. Suresh Malodia & Shaphali Gupta & Anand Kumar Jaiswal, 2020. "Reverse innovation: a conceptual framework," Journal of the Academy of Marketing Science, Springer, vol. 48(5), pages 1009-1029, September.
    10. Wu Zhan & Roger (Rongxin) Chen, 2013. "Dynamic capability and IJV performance: The effect of exploitation and exploration capabilities," Asia Pacific Journal of Management, Springer, vol. 30(2), pages 601-632, June.
    11. Chengru Hu & Wei Jiang & Cheng-few Lee, 2013. "Managerial flexibility and the wealth effect of new product introductions," Review of Quantitative Finance and Accounting, Springer, vol. 41(2), pages 273-294, August.
    12. Birgitte Grøgaard & Helene Loe Colman & Inger G Stensaker, 2022. "Legitimizing, leveraging, and launching: Developing dynamic capabilities in the MNE," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(4), pages 636-656, June.
    13. Hutzschenreuter, Thomas & Lewin, Arie Y. & Dresel, Stephan, 2011. "Governance modes for offshoring activities: A comparison of US and German firms," International Business Review, Elsevier, vol. 20(3), pages 291-313, June.
    14. Jingoo Kang & Sang‐Joon Kim, 2020. "Performance implications of incremental transition and discontinuous jump between exploration and exploitation," Strategic Management Journal, Wiley Blackwell, vol. 41(6), pages 1083-1111, June.
    15. Verbeke, Alain & Kano, Liena & Yuan, Wenlong, 2016. "Inside the regional multinationals: A new value chain perspective on subsidiary capabilities," International Business Review, Elsevier, vol. 25(3), pages 785-793.
    16. Lars Matysiak & Alan M. Rugman & Andreas Bausch, 2018. "Dynamic Capabilities of Multinational Enterprises: The Dominant Logics Behind Sensing, Seizing, and Transforming Matter!," Management International Review, Springer, vol. 58(2), pages 225-250, April.
    17. Ilgaz Arikan & Ipek Koparan & Asli M Arikan & Oded Shenkar, 2022. "Dynamic capabilities and internationalization of authentic firms: Role of heritage assets, administrative heritage, and signature processes," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(4), pages 601-635, June.
    18. Kyung Ho Kang & Seoki Lee, 2015. "Effects of Diversification Strategies on US Restaurant Firms' Performance," Tourism Economics, , vol. 21(4), pages 807-831, August.
    19. Chang, Shao-Chi & Wang, Chi-Feng, 2007. "The effect of product diversification strategies on the relationship between international diversification and firm performance," Journal of World Business, Elsevier, vol. 42(1), pages 61-79, March.
    20. Wu Zhan & Yadong Luo, 2008. "Performance implications of capability exploitation and upgrading in international joint ventures," Management International Review, Springer, vol. 48(2), pages 227-253, April.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:ausman:v:31:y:2006:i:2:p:293-311. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: http://www.agsm.edu.au .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.