Showing papers in "Journal of International Business Studies in 1980"
TL;DR: In this paper, the main features of the eclectic theory of international production are discussed and the significance of ownership-and location-specific variables in explaining the industrial pattern and geographical distribution of the sales of U.S. affiliates in fourteen manufacturing industries in seven countries in 1970.
Abstract: This paper first sets out the main features of the eclectic theory of international production and then seeks to evaluate its significance of ownership- and location-specific variables in explaining the industrial pattern and geographical distribution of the sales of U.S. affiliates in fourteen manufacturing industries in seven countries in 1970.
2,895 citations
TL;DR: In this article, the role of host country characteristics as determinants of foreign direct investment location patterns was reviewed and the effects of corporate experience on location decisions were analyzed. And the authors found that prior experience in a host country was found to increase the firm's priority for projects in that country relative to other investment options.
Abstract: This article reviews the role of host country characteristics as determinants of foreign direct investment location patterns. It then analyzes the effects of corporate experience on location decisions. Prior experience in a host country is found to increase the firm's priority for projects in that country relative to other investment options. In addition, the experience level of the firm influences the relative importance of different country characteristics in determining location patterns. Inexperienced firms exhibit greater preference for near, similar markets than firms with broader international operating experience.
872 citations
TL;DR: In this paper, the authors conducted an interview with 34 senior executives in U.S. and Canadian firms, mainly in the electronics, machinery, and autoparts industry sectors, focusing on small-and medium-sized firms.
Abstract: Research on international marketing effectiveness was done by interviewing 34 senior executives in U.S. and Canadian firms, mainly in the electronics, machinery, and autoparts industry sectors. The study concentrated on small– and medium-sized firms. The findings indicate the relative importance of an information and control reporting system, organization of the international division, involvement of top management, R & D, technology, competitive pricing policy, marketing mix, and production function variables for international marketing effectiveness.
260 citations
TL;DR: In this paper, the authors report preliminary results of a study of how relatively large U.S. international firms assess noneconomic environments, how the resulting evaluations are integrated into decision making or planning, and how the process affects managerial strategy.
Abstract: This paper reports preliminary results of a study of how relatively large U.S. international firms assess noneconomic environments, how the resulting evaluations are integrated into decision making or planning, and how the process affects managerial strategy. A mailed survey of 455 firms was followed up by personal interviews with approximately 113 managers in 37 firms selected via a stratified quota sample of respondents. Findings support a conclusion that assessment and evaluation of nonmarket environments is emerging as a new managerial function in relatively large international firms. Over half of the respondents indicated that they have a group or groups which have been assigned formal assessment responsibility; however, both the survey results and interview data suggest a number of problems with current practice. Assessments tends to be reactive rather than active; the most important sources of information about environments are internal to the firm; assessments are typically not conducted independently of an investment or planning proposal; and resulting evaluations serve as a context in which decisions are taken rather than as input to a decision-making process.
131 citations
TL;DR: This paper examined the characteristics of firms which have invested abroad and found that firms with a higher percentage of investments through acquisitions did have some common characteristics and the nationality of the parent was found to be related to the propensity to acquire.
Abstract: Multinational enterprises may choose to invest internationally through a newly formed subsidiary or by acquiring an existing company. In an attempt to isolate factors which might indicate a propensity to acquire rather than form subsidiaries, this study examined the characteristics of firms which have invested abroad. The results showed that firms with a higher percentage of investments through acquisitions did have some common characteristics. In addition, the nationality of the parent was found to be related to the propensity to acquire.
124 citations
72 citations
TL;DR: In this article, an empirical study covering 102 technology licenses shows that whereas compensation levels greatly exceed transfer costs, statistically they are strongly related, compensation levels are influenced by the extent of services rendered to the licensee and by his scale of production.
Abstract: The fees or compensation charged by technology licensing companies to recipient firms overseas have long been subject to debate. Opinion has ranged from a cost-related pricing to a monopolistic pricing model where the price or compensation is considerably higher than the variable costs of effecting a transfer. The empirical study covering 102 technology licenses shows that whereas compensation levels greatly exceed transfer costs, statistically they are strongly related. Compensation levels are influenced by the extent of services rendered to the licensee and by his scale of production. Important differences were manifest between industrialized nations and LDCs, between product types, and between patented and unpatented technologies.
48 citations
TL;DR: In this article, the authors test the hypothesis that the composition and organizational mode of a technology transfer between firms is a function of the recipient company's "technical absorptive capacity" and the recipient nation's level of development.
Abstract: The idea that the composition and organizational mode of a technology transfer between firms is a function of the recipient company's “technical absorptive capacity” and of the recipient nation's level of development has appeared in the literature without enunciation or testing. These hypotheses are tested using data for 33 countries.
45 citations
TL;DR: In this paper, the authors explore LDC investors' motivations and their unique approach, which are quite different from those of industrialized countries' MNCs for gaining the market dominance.
Abstract: Multinational enterprises, once the domain of industrialized nations, are emerging from developing countries. This article explores LDC investors' motivations and their unique approach, which are quite different from those of industrialized countries' MNCs for gaining the market dominance.
45 citations
TL;DR: In this paper, the authors trace the rise of Tokyo to prominence as an international financial center in Asia by examining the evolution and development of seventeen Asian international financial centers, over time.
Abstract: This research traces, from 1900 to 1975, the rise of Tokyo to prominence as an international financial center in Asia by examining the evolution and development of seventeen Asian international financial centers. Cluster analysis is used to show the hierarchical structure of the international centers, over time. Stepwise multiple discriminant analysis is then used to verify the cluster analysis groupings, determine what factors caused the particular groupings, and rank the centers. The findings show clearly that Tokyo became Asia's preeminent “banking” center in 1960 and the preeminent “financial” center in 1965, but these results are at odds with the commonly held view that Singapore and Hong Kong are the region's top centers; in fact, Asia's second most prominent center is Osaka. The future implication and significance of Tokyo's (and Osaka's) financial leadership in Asia is discussed.
43 citations
TL;DR: This article found that there is a set of common dimensions by which opinion leaders are evaluated, but that different cultures assign different weights to the dimensions, and found that opinion leaders were rated by students representing five different cultural backgrounds.
Abstract: The objectives of this paper were: 1) to determine if there exists an underlying dimensionality of opinion leadership across different cultural groups, and 2) to determine if this underlying structure can be used to identify opinion leaders for the purpose of targeting communications by multinational businesses to assist them in the diffusion of innovations and ideas. Opinion leaders were rated by students representing five different cultural backgrounds. Results tended to show that there is a set of common dimensions by which opinion leaders are evaluated, but that different cultures assign different weights to the dimensions.
TL;DR: This article examined family decision-making roles among samples of consumers from the United States and Venezuela for a wide variety of products and services and found that the dominance of the husband within the Venezuelan sample, whereas the US sample is characterized by more joint husband/wife decisions.
Abstract: This paper examines family decision-making roles among samples of consumers from the United States and Venezuela The findings suggest considerable differences between the manner in which family purchasing decisions are made in the two countries for a wide variety of products and services In general, the results indicate the dominance of the husband within the Venezuelan sample, whereas the US sample is characterized by more joint husband/wife decisions
TL;DR: In this paper, the effect of 14 variables and factors on transfer pricing decisions on 62 MNCs was investigated. But the results showed that some variables have greater influence on the decision of transfer pricing for some types of companies.
Abstract: This paper provides information about the effect 14 variables have on transfer pricing decisions on 62 MNCs. Questionnaire data is factor analyzed and evaluated to determine whether significant differences exist when respondents are grouped alternately into five dichotomous categories: (1) those assessed compared with those not assessed additional U.S. federal income taxes because of transfer pricing methods, (2) those among the first 150 compared with those among the remaining 500 largest U.S. industrial firms, (3) those whose export sales exceed $25 million compared with those whose export sales do not, (4) those whose export sales to subsidiaries exceed 50 percent of total exports compared with those whose export sales to subsidiaries do not, and (5) those unable to use a market-based transfer price compared with those who are able to do so. By means of Student's t-test and .10 level of significance, it is determined that some variables and factors do have greater influence on transfer pricing decisions for some types of companies.
TL;DR: In this article, the authors provide a short review of the literature regarding investor evaluation of foreign operations of U.S.-based multinational companies. But they do not address the question: Do investor-owners recognize the advantages of international diversification of real assets provided by their investment in the shares of a multinational company as opposed to international portfolio diversification directly by these investors?
Abstract: The major objective of this paper is to provide a short review of the literature regarding investor evaluation of foreign operations of U.S.-based multinational companies. While U.S.-based multinational companies continue to expand overseas, this paper addresses the question: Do investor-owners recognize the advantages of international diversification of real assets provided by their investment in the shares of a multinational company as opposed to international portfolio diversification directly by these investors?
TL;DR: The authors discusses some features of the marketing environment in the developing countries in order to clarify some of the conceptual issues which advertising raises for optimizing marketing and public policy decisions in the LDCs.
Abstract: Relative to market size, would one expect advertising expenditures to be higher or lower in the developing countries as compared with the more developed countries? This paper discusses some features of the marketing environment in the developing countries in order to clarify some of the conceptual issues which advertising raises for optimizing marketing and public policy decisions in the LDCs. In addition, new measures of advertising intensity in less developed and more developed countries are presented. These provide an empirical basis for international comparisons of advertising-sales ratios as between more developed and less developed countries.
TL;DR: In this paper, the authors analyzed the changing pattern of advertisement strategy by Japanese business firms in the U.S. market and found that the Japanese advertisement strategy has passed sequentially through four stages: (1) Nationality-Supportive, (2) Product-Attributes, (3) Challenge and Responses, and (4) World Market-oriented advertisement.
Abstract: This article analyzes the changing pattern of advertisement strategy by Japanese business firms in the U.S. market. Taking the advertisement activities of four major industrial sectors that appeared in both Business Week and Newsweek during the 1965–1977 period as samples, this article has found that the Japanese advertisement strategy in the U.S. market has passed sequentially through the following four stages: (1) Nationality-Supportive, (2) Product-Attributes, (3) Challenge and Responses, and (4) World Market-oriented advertisement.
TL;DR: The decision on whether to centralize or decentralize exposure management must take into account the costs of collecting relevant information of this kind at different degrees of centralization as mentioned in this paper, which is the case in this paper.
Abstract: The economic exposure of financial assets and liabilities of a foreign subsidiary depends mainly on the currency denomination and the commodity composition of future transactions. Country of residency of shareholders and parent corporations are of secondary interest. Accordingly, management of exposure presumes information about the denomination of future cash flows and future purchases. The decision on whether to centralize or decentralize exposure management must take into account the costs of collecting relevant information of this kind at different degrees of centralization.
TL;DR: In this paper, the authors show that the explanation of direct foreign investment based on the existence of a currency premium implies a bias in the home capital market of the multinational firm, and that an alternative and complementary explanation of the choice between licensing and direct Foreign investment may be found in "disagreements" in the negotiations for a license.
Abstract: This note shows that the explanation of Direct Foreign Investment based on the existence of a currency premium implies a bias in the home capital market of the multinational firm. An alternative and complementary explanation of the choice between Licensing and Direct Foreign Investment may be found in “disagreements” in the negotiations for a license.
TL;DR: In this paper, the authors examine the struggles, bargains, compromises and foul-ups between those influential players who determine these companies' decisions and actions, and the strategy of such firms is seen as a political resultant: to understand corporate behavior one must explain key individuals' motivations, their stakes and stands and one must analyze their relative power and the pulling and hauling that occurs between them.
Abstract: This article complements a previous article on government-controlled enterprises. It examines the struggles, bargains, compromises and foul-ups between those influential players who determine these companies' decisions and actions. The strategy of such firms is seen as a political resultant: to understand corporate behavior one must explain key individuals' motivations, their stakes and stands and one must analyze their relative power and the pulling and hauling that occurs between them.
TL;DR: The authors examined the impact of the tax incentive on the firm's total marketing and promotional efforts and concluded that as a tax incentive DISC is helpful in attracting small firms into export marketing.
Abstract: The major research question of this study is: Do American manufactures view DISC (the tax incentive to export) as assisting them in becoming more competitive in export markets? The importance of this question was recognized by Secretary of Treasury Michael Blumenthal who included an earlier version of this study in the April 1979 Treasury Report titled “The Operation and Effect of the Domestic International Sales Corporation (DISC).” As such the study has received recognition at the highest level of policy making. This study is unique in two respects: 1) it examines the impact of the tax incentive on the firm's total marketing and promotional efforts. Other studies have examined only the relationship between the tax incentive and change in export prices, and 2) this study expands the investigation of sample firms to include small businesses as well as multinationals. The conclusions of this study (surveying 125 multinationals and 125 small exporting firms) suggest that DISC stimulated some marketing activities for small companies and was used as a tax shelter for large multinationals. The main policy implication is that as a tax incentive DISC is helpful in attracting small firms into export marketing.
TL;DR: In this article, the authors analyze the current offshore banking operations in the Caribbean by major U.S. commercial banks and assess their problems and prospects in the future, and suggest ways for gaining greater economic benefits for the domestic economics of the Caribbean offshore centers.
Abstract: The purpose of this article is to analyze the current offshore banking operations in the Caribbean by major U.S. commercial banks and to assess their problems and prospects in the future. Specifically, the study examines the aggregate sources and uses of offshore funds in the Caribbean, analyzes the national regulations and incentives applying to offshore banking, assesses the impact of this market on the economic development of the Southern Hemisphere, explores the factors that will shape the future of Caribbean offshore banking (including the internal dynamics of Eurocurrency operations, the regulatory environment of the market, and the recent proposals to permit offshore banking operations in the United States), and suggests ways for gaining greater economic benefits for the domestic economics of the Caribbean offshore centers.
TL;DR: In this article, the authors make a case that accounting is a professional function in which activities depend on the needs of those business groups it serves, and that as the information needs of these separate national business groups converge, there will be precipitated a parallel growth of an internationalized accounting community.
Abstract: This paper makes a case that accounting is a professional function in which activities depend on the needs of those business groups it serves. As the information needs of these separate national business groups converge, there will be precipitated a parallel growth of an internationalized accounting community. This study investigates two hypotheses about the international linkage between acounting practices and the information needs of the financial community.
TL;DR: In this paper, the authors examined the export/import patterns of three U.S. industries for the period 1963 to 1974 in order to determine the extent to which export losses were associated with import gains.
Abstract: Are U.S. manufacturers are losing their advantage in the production of high technology products? The study reported in this article investigates this question with regard to three U.S. industries. The export/import patterns of these industries are examined for the period 1963 to 1974 in order to determine the extent to which export losses were associated with import gains. Japanese export/import performance is examined for the three industries during the same period to provide a point of reference. The findings indicate that for two of the industries U.S. export market losses are not associated with comparable gains in imports, as might be expected if export market losses indicate a shift in competitive advantage. It may thus be necessary to consider other factors when attempting to explain the long-term contraction of the U.S. share of world export markets which has been occurring in some industries.
TL;DR: In this paper, a combination of promotions and offers of free samples of a weaning food and a contraceptive were sent by mail to a sample of Sri Lankan households with recently born children.
Abstract: Experimental combinations of promotions and offers of free samples of a weaning food and a contraceptive were sent by mail to a sample of Sri Lankan households with recently born children. Based on responses to an initial mailing and a follow-up, promotions and offers significantly affected behavior, with impact greater for the weaning food than for the contraceptive. No significant gain in response resulted from joint promotions, but cost savings made joint promotion of both products to the same target group cost effective.
TL;DR: In this article, the authors reviewed some interesting conceptual and empirical issues regarding the benefits of international diversification of real assets and argued that investors do recognize the benefits through investing in multinational firms.
Abstract: In a comment [2] on our recent article [1] dealing with the stock market performance of a sample of U.S.-based multinational firms, the author reviews some interesting conceptual and empirical issues regarding the benefits of international diversification of real assets. While the author agrees generally with our findings, he contends that our results may somewhat understate the benefits of international diversification. He adds further that there exists enough evidence to suggest that investors do recognize the benefits of international diversification through investing in multinational firms.
TL;DR: In this paper, the authors present a model for appraising currencies based on an operational variant of purchasing power parity doctrine, provided the parity exchange rate is derived from an interrelationship of differentials in inflation rates and changes in exchange rates of trading partners, both appropriately weighted by trade shares.
Abstract: This paper presents a model for appraising currencies that is based on an operational variant of purchasing power parity doctrine. The behavior of currencies under different exchange regimes—floating rates, strictly managed rates, crawling peg rates, and fixed exchange rates—is analyzed in detail. The results support this doctrine, provided the parity exchange rate is derived from an interrelationship of differentials in inflation rates and changes in exchange rates of trading partners, both appropriately weighted by trade shares. A discussion of forecasting implications concludes the paper.