Showing papers in "Journal of International Business Studies in 1981"
TL;DR: The authors examined the relationship between firm, individual characteristics, and foreign entry expansion behavior and found that such activity is neither exclusively determined by structural or managerial factors and is really the result of interaction between both types of variables.
Abstract: This paper examines the varied empirical findings of the relationship between firm, individual characteristics, and foreign entry expansion behavior. The results support the view that such activity is neither exclusively determined by structural or managerial factors and is really the result of interaction between both types of variables. The paper proposes that foreign entry and expansion can best be understood as an adoption of innovation-type behavior.
989 citations
TL;DR: In this paper, a taxonomy of the foreign direct investment theories following the market imperfections paradigm is presented, focusing on recent developments pertaining to the theory of the multinational firm, specifically the appropriability, internalization, and diversification theories.
Abstract: This paper first presents a taxonomy of the foreign direct investment theories following the market imperfections paradigm. It then focuses on recent developments pertaining to the theory of the multinational firm, specifically the appropriability, internalization, and diversification theories. Subsequently, the multinational phenomenon is seen as the result of an international differentiation of activities and an intrafirm integration across national borders – all this within a markets and hierarchies approach. Last, the paper points to areas for future research.
293 citations
TL;DR: The field of comparative marketing is still relatively green as mentioned in this paper and the field of Comparative Marketing is a hot topic in many fields, see, e.g., for instance, the literature on methodological issues, conceptual and managerial payoffs, and teaching approaches.
Abstract: This article reviews the field of Comparative Marketing in terms of scope, types, and depth of studies; methodological issues, conceptual and managerial payoffs, and teaching approaches. After its first quarter of a century as an international business topic, Comparative Marketing is still relatively green.
153 citations
TL;DR: The field of international technology transfer emerged as a separate field of inquiry in the 1970s and has since inspired a large literature as mentioned in this paper, identifying and reviewing the major aspects of the field.
Abstract: International Technology Transfer emerged as a separate field of inquiry in the 1970s and has since inspired a large literature. This paper identifies and reviews the major aspects of the field. Policy responses of technology supplying firms and nations and of recipient countries are examined. Directions for further research are indicated.
82 citations
TL;DR: This article reviewed the literature on Foreign Exchange Risk Management (FERM) which has burgeoned during the last decade and identified gaps in the existing literature and suggests directions for future research.
Abstract: This paper reviews the literature on Foreign Exchange Risk Management (FERM) which has burgeoned during the last decade. Scholars' and practioners' emerging interest in Foreign Exchange Risk Management was spurred by the advent of fluctuating exchange rates in the early seventies as well as by the pronouncement of the infamous FASB Statement No. 8 in 1976 which laid down unambiguous guidelines for consolidating financial statements of multinational corporations. A normative (rather than a market) view of Foreign Exchange Risk Management is taken and accordingly the author reviews first the two key informational inputs necessary for any Foreign Exchange Risk Management program: forecasting exchange rates and measuring exposure to exchange risk. Available decision models for handling transaction and translation exposures are reviewed next. A concluding section identifies gaps in the existing literature and suggests directions for future research.
71 citations
TL;DR: In this paper, the authors used factor analysis to identify the salient reasons for foreign direct investment in the U.S. market and the attractiveness of a new market or the desire to preserve the existing market were the most frequently cited reasons for new investment.
Abstract: Non-American firms have recently begun investing larger sums of money in the U.S. Such increased activity has created a great deal of interest and concern. The growth in foreign direct investment and findings of a mailed questionnaire will be reviewed in this article. Factor analysis was utilized to help isolate the salient motives for these investment activities. Although the size of the U.S. market and the attractiveness of a new market or the desire to preserve the existing U.S. market were the most frequently cited reasons for new investment in the U.S., factor analysis reveals that these reasons merely reinforce the primary motive: namely, the desire to benefit from a higher level of U.S. technology and innovation.
69 citations
TL;DR: In this paper, an operational approach to strategic planning for international marketing using a portfolio perspective is suggested, and the need for such a perspective is discussed, followed by an examination of current approaches to international business portfolio analysis and strategic planning.
Abstract: This paper suggests an operational approach to strategic planning for international marketing using a portfolio perspective. The need for such a perspective is discussed, followed by an examination of current approaches to international business portfolio analysis and strategic planning. A new approach to international portfolios, based on a combined stochastic dominance and analytic hierarchy process approaches, is suggested. The data requirements and analysis of this approach are outlined and the issues and challenges in the design and implementation of an international business portfolio system are discussed.
52 citations
TL;DR: In this paper, a survey of the literature on the subject of foreign direct investment in developing countries, with particular emphasis on conflict and its resolution through negotiation, is presented, followed by a series of normative conclusions.
Abstract: This paper is part survey, part essay. The survey consists of a partial review of the literature on the subject of foreign direct investment in developing countries, with particular emphasis on conflict and its resolution through negotiation. After a brief discussion of the objective functions guiding the strategies of both main actors, the paper turns to a review of the substantive and institutional context surrounding the negotiation process between multinational firms and host countries. Next follow some general principles, common to most negotiations, drawn from the experience obtained in other fields, and a discussion of the relevant literature on international business negotiations. Last, the essay integrates the various threads of analysis into a series of normative conclusions which, while not pretending to be imperial, are offered as challenges for further study.
48 citations
TL;DR: New financial techniques and instruments are created when both the demand for and the supply of those instruments become sufficiently large as mentioned in this paper, and new financial instruments appear almost always to represent new combinations or packages of a relatively small number of financial services.
Abstract: New financial techniques and instruments are created when both the demand for and the supply of those instruments become sufficiently large. New financial instruments appear almost always to represent new combinations or packages of a relatively small number of financial services. In the international context these packages are designed to cope with controls on international financial transactions and with the peculiar interest and exchange risks faced by international firms and banks. This approach, when applied to a wide range of new international instruments, seems to explain why some have failed and others have succeeded.
41 citations
TL;DR: In this paper, the authors categorize and summarize the major writings published during the 1970s concerning foreign direct investment in the United States, based on the authors' analysis of more than 100 works published in the English language.
Abstract: This article categorizes and summarizes the major writings published during the 1970s concerning foreign direct investment in the United States. It is based on the authors' analysis of more than 100 works published in the English language. In addition to analyzing what has been published, the article also suggests directions for future research.
41 citations
TL;DR: In this paper, the authors examined the transfer of marketing know-how by multinational companies to their subsidiaries in Turkey and analyzed the nature and extent of the marketing knowledge transferred, and the mechanisms used for and the variables which appeared to affect such transfers.
Abstract: This research examines the transfer of marketing know-how by multinational companies to their subsidiaries in Turkey. The nature and extent of the marketing know-how transferred is analyzed, and the mechanisms used for and the variables which appeared to affect such transfers are identified.
TL;DR: In this paper, the impact of foreign ownership on NLRB representation elections was investigated through multiple discriminant and regression analysis of election results, and the results indicated a moderately inverse association between foreign majority ownership and union success in elections.
Abstract: Foreign investment in the United States has been expanding at a rapid rate during recent years. For a variety of reasons it is probable that such investment will play an increasingly important role in the U.S. economy in the future. The purpose of this study is to determine the impact of such foreign ownership on an important aspect of labor relations – specifically, NLRB representation elections. Tests of whether foreign majority ownership is associated with decreased union success are conducted through multiple discriminant and regression analysis of election results. Both analyses control for foreign ownership, right-to-work legislation, industry effects, and size of election unit. The results indicate a moderately inverse association between foreign majority ownership and union success in elections.
TL;DR: In this article, the authors explored the potential role of subcultural (religious) and personality (Rockeach Dogmatism Scale) characteristics in explaining differences in the extent of consumer acculturation.
Abstract: This paper explores the potential role of subcultural (religious) and personality (Rockeach Dogmatism Scale) characteristics in explaining differences in the extent of consumer acculturation. The survey results suggest that for a complex and heterogeneous nation like Nigeria, there are significant within-nation differences that may influence consumer acculturation. Implications and suggestions for future cross-cultural consumer research taking an acculturation perspective are indicated.
TL;DR: In this paper, the authors show that little research is being done on the internal dynamics of international business, and that the main focus is on the multinational corporation, a special form of international Business organization which appeared during the 1950s and 60s and which now may be giving way to the international service and trading companies.
Abstract: Since World War II international business has moved through three general episodes and now stands on the threshold of a fourth. These episodes are defined by the number of actors relevant to corporation decision making. The immediate postwar decade is characterized as a two-actor era – the firm itself and its overseas commercial associates. During the so-called growth years, of 1955 to 1970, increasingly the political impact of, and the political response to, corporate strategy entered the decision-making calculus. During the 1970s, the “time of trouble,” the parent governments became increasingly active. The new international order which began appearing around 1980 introduced the multi-actor era in which a wide variety of international organizations and interest groups became relevant to corporate decision making, thereby introducing a new degree of uncertainty. Generally, academic research and teaching have lagged the reality. Even now, much attention is focused on the multinational corporation, a special form of international business organization which appeared during the 1950s and 60s and which now may be giving way to the international service and trading companies. The conclusion is that little research is being done on the internal dynamics of international business.
TL;DR: The authors assesses the forces and factors which are currently structuring international industry, focusing specifically on the impacts of government policies, the market orientations of TNCs, the nature of different markets around the world, and the effects of different technologies.
Abstract: This essay assesses the forces and factors which are currently structuring international industry, focusing specifically on the impacts of government policies, the market orientations of TNCs, the nature of different markets around the world, and the effects of different technologies. These forces being uncoordinated are seen as shaping an international industrial order that is not consonant with the objectives of the New International Economic Order (NIEO); consequently, what is expected for the near term is a nationally oriented disintegration of the international economy resulting from struggles over the location of specific industries around the world that will not be resolved cooperatively. The most likely moves toward international industrial integration will occur within key sectors among members of a regional association. At present, it appears unlikely that significant moves will be made toward a new international industrial order in line with the objectives of the NIEO; yet, the TNCs would be effective means of achieving this goal if greater cooperation could be achieved between them and governments.
TL;DR: The problem of developing accounting standards of disclosure and measurement for MNCs is complex, multidimensional, and dynamic as mentioned in this paper, and the analysis in this paper attempts to clarify some of the issues involved and to identify significant trends.
Abstract: The power of MNCs and corresponding pressures, especially from governments and trade unions, for higher levels of accountability has brought into focus the need for more information about MNCs as a basis for policy making at national and international levels. However, the problem of developing accounting standards of disclosure and measurement for MNCs is complex, multidimensional, and dynamic. This paper attempts to clarify some of the issues involved and to identify significant trends. The analysis centers on three fundamental questions: Should there be standards for MNCs? What should be required by the standards? Who should set the standards?
TL;DR: A survey of international accounting for accountants and others, describing its development and scope, problems, and current attempts at international standardization is presented in this article, focusing on selected issues of Western industrialized countries, in which most MNEs operate.
Abstract: This article is designed as a survey of international accounting for accountants and others, describing its development and scope, problems, and current attempts at international standardization. Because standardization has not progressed very far, discrepancies cause financial and managerial accounting problems for multinational enterprise – such as, the need to keep several sets of records. Selected issues – such as, translation, inflationary adjustments, and segment reporting – are examined briefly, and the need to develop managerial accounting and information systems appropriate for MNE decision making is outlined. This approach, it is hoped, will provide an overview and also allow the identification of research needs and possibilities. The article concentrates on selected issues of Western industrialized countries, in which most MNEs operate, and attempts to identify major practical and theoretical dimensions of international accounting.
TL;DR: In this paper, a review of recent developments in models dealing with capital structure and cost of capital for the multinational firm is presented, with a summary of financial policy prescribed for the firm by the present state of knowledge.
Abstract: This paper reviews recent developments in models dealing with capital structure and cost of capital for the multinational firm. A number of issues which bear upon the financing decisions of the multinational corporation are addressed, and related to underlying theoretical and empirical questions with regard to the degree of segmentation or integration of international money and capital markets and the efficiency of the foreign exchange market. Data problems, areas of conflict, and topics for future research are identified. The paper concludes with a summary of financial policy prescribed for the firm by the present state of knowledge.
TL;DR: In this article, the authors review the nature and forms of East-West industrial cooperation, its evolution during the 1970s, and then assess the outlook for the 1980s, in particular, the analysis seeks to determine what effects the worsening economic and political climate for cooperation may have had on its development.
Abstract: This essay reviews briefly the nature and forms of East-West industrial cooperation, its evolution during the 1970s, and then assesses the outlook for the 1980s. In particular, the analysis seeks to determine what effects the worsening economic and political climate for cooperation may have had on its development in the latter half of the 1970s. The analysis draws on the author's own research as well as on the work of others in America and Europe.
TL;DR: In this article, the authors report on the management of export physical distribution in the United Kingdom and describe the approaches that are used by exporters can be categorized into three types depending upon the exporter's relationship with his forwarder.
Abstract: This paper reports on the management of export physical distribution in the United Kingdom. The approaches that are used by exporters can be categorized into 3 types depending upon the exporter's relationship with his forwarder. One approach, labelled the traditional approach, is being superseded by two other approaches where a logistics-type system has been introduced. The change from the traditional to the more widely adopted of the two evolved approaches is explained by a life cycle model. The changes identified have significant implications especially for the forwarding industry.
TL;DR: The authors summarizes the impact on the U.S. apparel industry of international trade flows from 1972 to 1976 and discusses several of the underlying reasons behind the continued decline in its international competitiveness.
Abstract: This article summarizes the impact on the U.S. apparel industry of international trade flows from 1972 to 1976 and discusses several of the underlying reasons behind the continued decline in its international competitiveness. The article also describes the even larger competitive toll on the major European countries' apparel industries during the period and what polices their governments followed. The basic conclusion of the study this article summarizes is that without major changes in policy and strategy at both government and industry levels, the international competitive position of the U.S. apparel industry will continue to deteriorate.
TL;DR: In this paper, the authors used cross-sectional household income and expenditure data for various urban South African population groups to construct and apply estimation and projection regression models for urban consumer markets of dual economies.
Abstract: Forecasts for rapidly growing urban consumer markets of dual economies are badly needed. The marketing forecasting task is complicated by a lack of resources and data. This article explores a possibility to overcome these constraints by using projections based on income elasitcites. Estimation and projection regression models are constructed and applied, using cross-sectional household income and expenditure data for various urban South African population groups. Based on relatively favorable comparisons with some alternative extrapolations and the actual data, replication in other similar markets seems possible. The development of more comprehensive and realistic models should be undertaken as additional data become available.
TL;DR: This article found that there is a market in the United States for goods from communist countries and that there are identifiable segments of the population that are willing to purchase from these countries and would support increased trade relations.
Abstract: Many factors contribute to the trade surplus enjoyed by the United States in its foreign trade with the communist countries of Europe and Asia. Most studies of East-West Trade have focused on the problems of entering communist markets and/or the potential market in these countries. This paper focuses on one of the factors that may be a long-term inhibiter (or stimulant) to increased U.S. imports of goods from communist countries; that is, consumer perceptions of products from Eastern Europe and the People's Republic of China. Our results indicate that there is a market in the United States for goods from communist countries and that there are identifiable segments of the population that are willing to purchase from these countries and would support increased trade relations.
TL;DR: The Foreign Corrupt Practices Act (FCPA) was proposed by the U.S. Congress in 1977 and was intended to improve international confidence in American businesses and institutions as discussed by the authors.
Abstract: The Foreign Corrupt Practices Act, enacted by the U.S. Congress in 1977, was intended to improve international confidence in U.S. businesses and institutions. This paper presents the results of a questionnaire submitted to members of the Academy of International Business to determine whether the Act has achieved its goal. The opinions of knowledgeable academicians should add another dimension to this debatable issue.
TL;DR: The authors analyzes price changes in commodity futures markets in two countries to test whether these markets are integrated, and the results shed considerable doubt on the use of the integrated markets assumption of economic analysis which deals in differentiable real goods.
Abstract: Relying on the properties of integrated markets, this paper analyzes price changes in commodity futures markets in 2 countries to test whether these markets are integrated. Statistical analysis shows that markets are integrated only imperfectly. The results shed considerable doubt on the use of the integrated markets assumption of economic analysis which deals in differentiable real goods.