Author Archives: jingjingyao

March 2019: Relational resources for emerging markets’ non-technological innovation

Professor Chavi Chen’s recent published paper (Fletcher-Chen, Chavi C.-Y.): Relational resources for emerging markets’ non-technological innovation: insights from China and Taiwan in Journal of Business & Industrial Marketing is about the importance of relational resources (trust and relationship effectiveness). This research studies how the Chinese guanxi is utilized to create and develop service exploitation and exploration activities for adopting non-technological innovation (exploitation of existing ventures and exploration of new services). The study draws on the interaction approach and is based on resource-based theory’s relational view to explain how Supplier-Customer relations span firm boundaries to generate value for innovation. Within the Chinese context, the paper draws attention to relational resources as the mediator linking collaborative communication and constructive conflict to non-technological innovation. The sample criteria were Taiwanese and Chinese suppliers in medical equipment, communication tools and electronic products. The findings showed that the constructive conflict enhances trust and relationship effectiveness between firms. Yet, trust failed to mediate collaborative communication and constructive conflict positive effect on exploration. Moreover, the relationship effectiveness motivates suppliers to mobilize their guanxi network and mediates the supplier–customer interaction in broadening relationships to produce new services, as well as reinforcing networks to strengthen existing ventures. In other words, Chinese suppliers tend to draw on guanxi networks as a form of third party to enhance explorative and exploitative innovation.  The notion of relationship effectiveness as being an additional relational resource in a Chinese context contributes to a relatively under-explored relational capability to enact non-technological innovation.

 

To read the original article:

Fletcher-Chen, C. C. Y., Al-Husan, F. B., & ALHussan, F. B. (2017). Relational resources for emerging markets’ non-technological innovation: insights from China and Taiwan. Journal of Business & Industrial Marketing32(6), 876-888.

 

Professor Chavi Chen is one member of ICoN. You can find more information about ICoN team members here:

Team

February 2019: Language Diversity, Nonnative Accents, and Their Consequences at the Workplace

As the workplace is becoming increasingly global, organizations are employing more persons who work in a non-native language. Moreover, challenges in communication between employees with different linguistic background are inevitable in international mergers and acquisitions, and failure to recognize and address these challenges can create major obstacles to achieving effective integration benefits. Thus, it is imperative for global leaders and managers to understand the effects of language diversity on intra-organizational dynamics.

Professor Regina Kim and her team examine the cognitive and affective experiences of both native and nonnative English speakers when they interact with one another found that nonnative speakers experienced stereotype threat, anxiety, fatigue, status loss, negative emotions, avoidance goal orientations and avoidance. Consistent with the literature, stereotype threat diminished individuals’ perceptions of their own abilities and lowered their self-esteem, and fostered negative emotions, such as frustration and embarrassment. Nonnative speakers engaged in avoidance goal orientations and were motivated to withdraw from situations where they may experience stereotype threat, such as limiting encounters and interactions with native speakers. Moreover, nonnative speakers experienced cognitive fatigue from communicating in a foreign language, as well as monitoring their own actions and those of the native speakers.

Interestingly, like non-native speakers, native speakers also experienced anxiety, negative emotions, and a tendency to avoid interactions. They also reported feeling fatigued because of the amount of time and energy required to process and understand accented individuals. This finding is consistent with previous laboratory studies have also shown that processing accented speech requires more cognitive energy. Research has found that native English listeners needed more time to process and evaluate Mandarin-accented speech compared to speech in native English. Similarly, speech in non-native accents is more difficult to process than that in native accents. In sum, the results from this study show the emotional as well as the cognitive demands of native listeners.

 

To read the original article:

Kim, R., Roberson, L., Russo, M., & Briganti, P. (2018). Language Diversity, Nonnative Accents, and Their Consequences at the Workplace: Recommendations for Individuals, Teams, and Organizations. The Journal of Applied Behavioral Science, 55(1) 73–95.

Professor Regina Kim is one member of ICoN. You can find more information about ICoN team members here:

Team

 

January 2019: What is the ISDS Landscape under the “New NAFTA”?

On Friday December 7th, a distinguished panel of government negotiators, experienced investment arbitrators and senior legal advisors gathered in Paris at the law faculty of the University Paris II Panthéon-Assas (Paris II) to discuss the US-Mexico-Canada Trade Agreement (USMCA) also called the “New NAFTA” signed on November 30th.

The panel was held as part of a seminar series on Topical Issues in international investment law and investor-state dispute settlement organized by the CERSA, Research Centre of the French National Centre for Scientific Research (CNRS) and the University Paris II Panthéon-Assas. The seminar was moderated by Catharine Titi (CNRS-CERSA, University Paris II Panthéon-Assas) and brought together as panelists

Héctor Anaya Mondragón (Creel, García-Cuellar, Aiza y Enriquez), José Manuel García Represa  (Dechert LLP), David Gaukrodger (OECD, in a personal capacity), Barton Legum (Dentons), Rodney Neufeld (Government of Canada, in a personal capacity) and Noah Rubins (Freshfields Bruckhaus Deringer). Over the course of three hours, the panelists discussed the new investment law landscape following the signature of the USMCA.

Main Differences Between the Old and the New NAFTA

USMCA developments have been previously discussed in the blog in relation to Latin America, the EU, in relation to fork in the road provisions and more generally in here. 

To kick-off the discussion, the moderator asked the panel to describe the key differences in the ISDS provisions between the USMCA and NAFTA. The first panel described the most striking change as the phasing out of ISDS for investors between the US and Canada and the significant restriction of ISDS between the US and Mexico. Nevertheless, panelists pointed out that even after the USMCA is ratified, the old NAFTA ISDS mechanism will still live on for another three years for what has been termed “legacy investments” made during the NAFTA period from January 1st 1994 to the date of NAFTA’s termination. As noted by the panel, “legacy investments” claims initiated during the three year period will be decided under the old NAFTA Chapter 11 rules and the tribunal proceedings will continue until finished and any arbitral awards will be fully enforceable, even beyond the three-year phase-out period. As such, the panel noted that there will likely be a flurry of new claims by investors before their arbitration rights expire.

Legacy Investments

The panel then spent a lengthy time debating various questions raised by the legacy investments provisions without producing straightforward answers.  These questions included: Is it intentional that pre-1994 investments are not included and if so why? Do the legacy investments provisions still kick-in if one of the parties does not ratify the USMCA? What does “termination” of NAFTA actually mean? Will arbitrators be allowed to interpret new claims filed under the legacy provisions in light of modifications made in the “New NAFTA”?

USMCA Innovations

The speakers also noted more specific innovations to the old NAFTA contained in the USMCA including, the expansion on the definition of expropriation in Annex 14-B, the use of specific examples given for interpretation of the minimum standards of treatment provided in the new Article 14.6 (previously article 1105) and the implication that a state’s actions which fulfill “public welfare objectives” will be considered  in the new Articles 14.4 on National Treatment and 14.5 on the Most Favored Nation standard in determining whether treatment was accorded in “like circumstances”.

Negotiation Process and Government Concerns

The conversation then turned to the negotiation process. The 15-month long negotiations of the USMCA were described as “very strange” and unlike any other high level treaty negotiations previously experienced by those involved, including some very “big surprises” along the way. By way of explanation, the panelists highlighted the political shift that has taken place since the old NAFTA agreement was put into place.

In particular, panelists observed that more recently, high-level government representatives have made sharp public criticisms of investment treaties which could explain some of the new approaches in the treaty. For example, David Gaukrodger noted that, in testimony before the US Congress, US Trade Representative Robert Lighthizer expressed concerns about preferential treatment of foreign investors over US investors due to access to ISDS, ISDS incentivizing companies to outsource jobs, and the dissuasive impact of investment treaties on regulation in the public interest (popularly coined as “regulatory chill”) as governments fear that they expose themselves to liability.  It was noted that, unlike recent EU rejection of the operation of investor-state arbitration, this criticism was broader and goes to the overall effects of investment treaties.

Death of ISDS?

Interestingly, Noah Rubinson and Barton Legum noted how twenty years ago, these statements used to be reserved to the NGOs and the left and right “fringes” but have now moved to the mainstream. This in turn sparked an exchange around the oft-debated question is this “The Death of ISDS”?

At first speakers debated philosophically if it would matter if it really were the end of ISDS and whether the underlying issue was really more an emotional attachment than a crisis in the world order. Ultimately, the panelists seemed to agree that the USMCA marks a decline although perhaps not the fatal end of ISDS. Moreover, José Manuel García Represa remarked that he previously represented a couple of the first Latin American countries to renounce the ICSID Convention and that now this exodus seems to be spreading to capital-exporting countries while, ironically, countries like Ecuador are reversing course and returning to ISDS.

State to State Disputes

Catharine Titi concluded the panel discussion by questioning the likelihood that under the New NAFTA, there will be a return to State to State disputes and asked the panelists to indicate how well they think that the US, Mexico and Canada are prepared for this. Barton Legum noted that the US is well situated to handle such claims because the State Department office dealing with large claims before the US-Iran Claims Tribunal contains a large staff with a great amount of expertise that will become available when the current hearings in that tribunal conclude. Rodney Neufeld pointed to Canada’s extensive WTO practice as providing good preparation for such claims. On the other hand, Héctor Anaya Mondragón expressed some concern as to Mexico’s preparedness in light of the newly-elected government’s purge of experienced staff and the push to cut the budget and therefore avoid the use of external counsel.

Unanswered by the panel was the deeper question posed by the moderator, Does this return to State to State disputes mean a return to diplomatic protection and the Calvo Doctrine?

 

 

Professor SUDBOROUGH Calliope is one member of ICoN. You can find more information about ICoN team members here:

Team

December 2018: Understanding the international negotiation and conflict management strategies in diplomacy

In the paper “Understanding the International Negotiation and Conflict Management Strategies in Diplomacy”, Dr. Valon Murtezaj explored the lived experiences of senior diplomats dealing with difficult conflict situations in diplomacy.

This study found specific bodies of knowledge that influence success in negotiation and conflict management. Results that extracted from a total of 250 years of experience in the field described the experiences in different international negotiation and conflict situations. The study reveals that diplomats implement different strategies while they negotiate; and that culture and social skills, including emotions, are very important ingredients in international negotiation settings, and that significantly influenced effective negotiation processes and conflict management outcomes. This research can serve as guidance for leaders negotiating complex deals and managing difficult conflicts. This study is a contribution to the body of best practices for diplomats across the world.

 

To read the original article:

Murtezaj V., (2013). Understanding International Negotiation and Conflict Management Strategies in Diplomacy, Organizational Culture, International Journal of Knowledge, Culture and Change Management, 12 (2) 45-55.

 

Professor Murtezaj is one member of ICoN. You can find more information about ICoN team members here:

ICoN Team

November 2018: Tit for tat: Using negative emotions strategically to address negative feedback at workplace

When supervisors have to provide employees with negative feedback, the situation can easily turn into an interpersonal conflict. To prevent such conflicts, it is useful to identify factors that facilitate the communication of negative feedback. Together with Pinar Çelik and Nils Myszkowski, Professor Martin investigated how negative emotions expressed by an employee in response to negative feedback from his/her supervisor can facilitate supervisor-employee interactions.

According to functional theories of emotions, each emotion possesses specific functional properties. For instance, anger is an energetic emotion that tends to communicate agentic intentions. On the contrary, sadness is a more passive emotion that tends to communicate communal intentions. One could therefore argue the social value of expressing anger or sadness depends on the content of the negative feedback.

In two experimental studies, we found that targets who expressed sadness (vs. anger) in response to negative warmth evaluations, as well as targets who expressed anger (vs. sadness) in response to negative competence evaluations contributed to more fluent supervisor-employee interactions, and were perceived as more persuasive by supervisors. Our findings suggest that targets of negative feedback could strategically use negative emotions to achieve better outcomes in social interactions.

 

To read the original article:

Çelik, P., Storme, M. & Myszkowski, N. (2016). Anger and sadness as adaptive emotion expression strategies in response to negative competence and warmth evaluations. British Journal of Social Psychology, 55(4), 792-810. 

 

Professor Storme is one member of ICoN. You can find more information about ICoN team members here:

ICoN Team