Showing papers by "Gary Knight published in 2006"
TL;DR: In this paper, a conceptualization of the internationalization decision confronted by a firm in an environment of terrorism-induced risk is presented, and the most attractive opportunities set is traced to show that the frontier of attractive opportunities is constrained in the with-terrorism case.
Abstract: Purpose - This paper offers a conceptualization of the internationalization decision confronted by a firm in an environment of terrorism-induced risk. Design/methodology/approach - The approach taken is a conceptualization of the internationalization decision framed from theoretical reasoning and informed by the literature. Findings - The model presents the internationalization decision, a product/market/mode (PMM) combination, in the case of a terrorism-free context and in a with-terrorism context. Using indifference curve mapping of risk/return tradeoffs, an opportunities set of possible PMM combinations and the notion of efficiency, it traces the most attractive opportunities set to show that within this set, the frontier of attractive opportunities is constrained in the with-terrorism case. Propositions are framed to guide future research. While conditions of risk can be calculated, it is concluded that remaining uncalculable is the true uncertainty incited by the systemic effects of international terrorism that call for managerial judgment. Originality/value - The literature in this field reports little on the effects of international terrorism on the firm. With heightened awareness of international terrorism, and the changed environment for the firm operating internationally, it is timely that the effects of terrorism on decision-making in firms be investigated. Advancing beyond description to substantive conceptualization of this decision is an essential step for better understanding of this now pervasive phenomenon.
16 citations
TL;DR: In this article, the authors draw on the new science of complex networks which has been applied to the physical sciences and is now increasingly being used to explain organizational and economic phenomena to explain network effects.
Abstract: International trade and investment economies are highly integrated and interdependent and can be exploited by organized, international terrorism. The network of inter dependencies in the international economy means that a terrorist attack has the potential to disrupt the functioning of the network, so the effects can reverberate around the world. Governments can control the distributed effects of terrorism by auditing industrial networks to reveal and protect critical hubs and by promoting flexibility in production and distribution of goods and services to improve resilience in the economy. To explain these network effects, the authors draw on the new science of complex networks which has been applied to the physical sciences and is now increasingly being used to explain organizational and economic phenomena.
11 citations
01 Jan 2006
TL;DR: In this paper, the authors present an early modeling approach for explaining why some firms externalise the marginal transaction in the so-called new economy and further draw attention on the need to articulate an externalisation theory that adequately accounts for the firm's offshoring and outsourcing activities, and that parallels as well as complement internalisation theory.
Abstract: The reweaving and repaving of the modern Silk Road passes through outsourcing and offshoring activities that have a profound impact on both global business psyche and landscape. Firms, in particular, and their global value chain are being shaped and reshaped through a complex concoction of vertical integration and disintegration. The boundary of the firm and the firm/market interface has been of interest to students of organisation and economics for some time. It has provided the context for Internalisation Theory. Within the new economy, the twin trends of globalisation and advancing technologies are giving rise to a hitherto unknown “worldwide market for market transactions? and increased opportunities for international expansion by firms via market-based modes of organisation. We describe these trends and offer an early modeling approach for explaining why some firm’s externalise the marginal transaction in the so-called new economy. The paper further draws attention on the need to articulate an “Externalisation Theory? that adequately accounts for the firm’s offshoring and outsourcing activities, and that parallels as well as complement “Internalisation Theory? for a full explanation of today’s firms behaviour.
1 citations