, THIRD EDITION
GLOBAL STRATEGY
Mike W. Peng, PhD
Jindal Chair of Global Strategy
Jindal School of Management
University of Texas at Dallas
Chair, Global Strategy Interest Group (2008)
Strategic Management Society
Fellow, Academy of International Business (since 2012)
Copyright 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
, Copyright 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
, GLOBAL STRATEGY
THIRD EDITION
Mike W. Peng, PhD
Jindal Chair of Global Strategy
Jindal School of Management
University of Texas at Dallas
Chair, Global Strategy Interest Group (2008)
Strategic Management Society
Fellow, Academy of International Business (since 2012)
Australia • Brazil • Japan • Korea • Mexico • Singapore • Spain • United Kingdom • United States
Copyright 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
, This is an electronic version of the print textbook. Due to electronic rights restrictions,
some third party content may be suppressed. Editorial review has deemed that any suppressed
content does not materially affect the overall learning experience. The publisher reserves the right
to remove content from this title at any time if subsequent rights restrictions require it. For
valuable information on pricing, previous editions, changes to current editions, and alternate
formats, please visit www.cengage.com/highered to search by ISBN#, author, title, or keyword for
materials in your areas of interest.
Copyright 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
,Global Strategy, 3rd Edition ª 2014, 2009 South-Western, Cengage Learning
Mike W. Peng ALL RIGHTS RESERVED. No part of this work covered by the
Senior Vice President, LRS/Acquisitions copyright herein may be reproduced, transmitted, stored, or used in
& Solutions Planning; Jack W. Calhoun any form or by any means graphic, electronic, or mechanical,
including but not limited to photocopying, recording, scanning,
Editorial Director, Business & Economics: digitizing, taping, web distribution, information networks, or
Erin Joyner information storage and retrieval systems, except as permitted under
Senior Acquisitions Editor: Michele Section 107 or 108 of the 1976 United States Copyright Act, without
Rhoades the prior written permission of the publisher.
Associate Development Editor:
Josh Wells
For product information and technology assistance, contact us at
Editorial Assistant: Tamara Grega Cengage Learning Customer & Sales Support, 1-800-354-9706
Brand Manager: Robin Lefevre For permission to use material from this text or product,
Market Development Manager: submit all requests online at www.cengage.com/permissions
Jonathan Monahan Further permissions questions can be emailed to
permissionrequest@cengage.com
Media Editor: Rob Ellington
Manufacturing Planner: Ron
Montgomery Library of Congress Control Number: 2012948254
Art and Cover Direction, Production ISBN-13: 978-1-133-96461-2
Management, and Composition: Integra ISBN-10: 1-133-96461-3
Cover Image: © istockphoto/Alexey
Stiop South-Western
Rights Acquisitions Director: Audrey 5191 Natorp Boulevard
Pettengill Mason, OH 45040
Rights Acquisitions Specialist: Amber USA
Hosea
Cengage Learning is a leading provider of customized learning
solutions with office locations around the globe, including Singapore,
the United Kingdom, Australia, Mexico, Brazil, and Japan. Locate your
local office at: www.cengage.com/global
Cengage Learning products are represented in Canada by
Nelson Education, Ltd.
For your course and learning solutions, visit www.cengage.com
Purchase any of our products at your local college store or at our
preferred online store www.cengagebrain.com
Printed in the United States of America
1 2 3 4 5 6 7 16 15 14 13 12
Copyright 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
, To Agnes, Grace, and James
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Copyright 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
, Copyright 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
, ABOUT THE AUTHOR
Mike W. Peng is the Jindal Chair of Global Strategy at the Jindal School of Management,
University of Texas at Dallas, a National Science Foundation CAREER Award winner,
and a Fellow of the Academy of International Business. He is also Executive Director of
the Center for Global Business, which he founded. At UT Dallas, he has been the number
one contributor to the 45 top journals tracked by Financial Times, which has ranked UT
Dallas as a top 20 school in research worldwide and its MBA and EMBA programs
increasingly in the top tier.
Professor Peng holds a bachelor’s degree from Winona State University, Minnesota,
and a PhD degree from the University of Washington, Seattle. Between 2005 and 2011, he
was the first Provost’s Distinguished Professor at UT Dallas, a chair position that was
created to attract him to join the faculty. He had previously been an associate professor
(with tenure) at the Ohio State University. Prior to that he had served on the faculty at the
Chinese University of Hong Kong and University of Hawaii. He has taught in five states
in the United States (Hawaii, Ohio, Tennessee, Texas, and Washington) as well as China,
Hong Kong, and Vietnam. He has also held visiting or courtesy appointments in
Australia, Britain, China, Denmark, Hong Kong, and the United States.
Professor Peng is one of the most prolific and most influential scholars in global
strategy. During the decade 1996–2006, he was among the top seven contributors to the
Journal of International Business Studies. His research is also among some of the most
widely cited—both the United Nations and the World Bank have cited his work. A
Journal of Management article found him to be among the top 65 most widely cited
management scholars, and an Academy of Management Perspectives study found him to
be the fourth most influential management scholar both inside and outside of academia
(measured by academic citations and non-edu Google webpages) among professors who
obtained their PhD since 1991. Overall, Professor Peng has published over 100 articles in
VII
Copyright 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
, leading journals, over 30 pieces in non-refereed outlets, and five books. Since the launch
of Global Strategy’s second edition, he has published not only in top global strategy
journals, such as the Academy of Management Journal, Journal of International Business
Studies, and Strategic Management Journal, but also in leading outlets in operations
(Journal of Operations Management), entrepreneurship (Journal of Business Venturing
and Entrepreneurship Theory and Practice), and human resources (International Journal
of Human Resource Management).
Professor Peng’s market-leading textbooks, Global Strategy, Global Business, and
GLOBAL, are studied in over 30 countries and have been translated into Chinese, Spanish,
and Portuguese. A European adaptation, International Business (with Klaus Meyer), has
been successfully launched.
Professor Peng is active in leadership positions. He has served on the editorial boards
of AMJ, AMR, JIBS, JMS, JWB, and SMJ, and guest-edited a special issue for the JMS. At
the Strategic Management Society (SMS), he was elected to be the Global Strategy Interest
Group Chair (2008). He also co-chaired the SMS Special Conference on China in
Shanghai (2007). At the Academy of International Business (AIB), he was co-chair of
the AIB/JIBS Frontiers Conference in San Diego (2006), guest-edited a JIBS special issue
(2010), chaired the Emerging and Transition Economies track for the Nagoya conference
(2011), and chaired the Richard Farmer Best Dissertation Award Committee for the
Washington conference (2012). He was recently elected to be a Fellow of AIB. He served
one term as Editor-in-Chief of the Asia Pacific Journal of Management. During his
editorial tenure, he managed the doubling of submission numbers and the successful
bid to enter the Social Sciences Citation Index (SSCI), which reported APJM’s first citation
impact to be 3.36 and rated it as the top 18 among 140 management journals for 2010.
Professor Peng is also an active consultant, trainer, and keynote speaker. He has
provided on-the-job training to over 300 professors. He has consulted and been a keynote
speaker for multinational enterprises (such as AstraZeneca, Berlitz, KOSTA, Nationwide,
SAFRAN, and Texas Instruments), nonprofit organizations (such as Greater Dallas Asian
American Chamber of Commerce and World Affairs Council of Dallas-Fort Worth),
educational and funding organizations (such as Harvard University Kennedy School of
Government, National Science Foundation, Social Sciences and Humanities Research
Council of Canada, and the University of Memphis), and national and international
organizations (such as the US-China Business Council, US Navy, and World Bank).
Professor Peng has attracted close to $1 million in external funding. His honors include
a National Science Foundation CAREER Grant, a US Small Business Administration Best
Paper Award, a (lifetime) Distinguished Scholar Award from the Southwestern Academy
of Management, and a (lifetime) Scholarly Contribution Award from the International
Association for Chinese Management Research. He has been quoted in The Economist,
Newsweek, Dallas Morning News, Smart Business Dallas, Atlanta Journal-Constitution,
The Exporter Magazine, The World Journal, Business Times (Singapore), Sing Tao Daily
(Vancouver), and Brasil Econômico (São Paulo), as well as on Voice of America.
Copyright 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.