Showing papers in "Management International Review in 2006"

Commitment and opportunity development in the internationalization process: A note on the Uppsala internationalization process model

Abstract: * This paper starts from the observation that the internationalisation process (IP) model frequently is interpreted as a model of risk reduction in the internationalization of the firm. The dominating view of the model seems to be that commitment is the dependent variable and experience is the independent variable. A basic assumption of the original model, however, is that opportunity development is an important outcome of commitment. The purpose of this note is to articulate this relation, which is not stressed enough in earlier writings. Key Results * A causal chain from relationship commitment over relationship knowledge development and network knowledge development to opportunity development is specified. Two propositions are formulated regarding the effects of mutual relationship commitment and of network embeddedness in a country market on opportunity development in the market. Introduction 25 years afterwards, we are surprised. Firstly, we never expected this longevity of the model. Secondly, we are surprised, because after some thinking we have arrived at the conclusion, that we would not have built the model differently today, but with somewhat different underpinning. In a way we were lucky in using concepts such as "knowledge" and "commitment", which later came to be widely used in research on the theory of the firm but also in some functional disciplines. We were left with our inductively produced understanding of these concepts. We are grateful to the organizers of the conference and editors of this issue of MIR for focusing on the IP model and giving us this opportunity to elaborate on it. But, we must point out that the model is not "the establishment chain", going from ad hoc exports to the establishment of manufacturing subsidiaries. This was the empirical phenomenon we observed, giving the impetus to construct the model. The model is on learning and commitment building or, more precisely, on the interplay between knowledge development and increasing foreign market commitments. While the effect of knowledge development on foreign market commitment has been recognized and studied by many researchers the effect of commitment on knowledge development has been less noticed. The purpose of this note is to elaborate on this latter effect. In particular, we are here interested in the effect on opportunity development. Admittedly, this note is written in a way that it presupposes the reader is familiar with the original version of the internationalization model published in 1977 (Johanson/Vahlne 1977). In that article we tried to explain the gradual internationalization process observed by relying on two interdependent sub-processes--experiential learning and commitment building. We related those processes to the focal company only, later realizing that indeed these processes occur as interplay between at least two (potential) partners (Johanson and Vahlne 1990). In Johanson/Vahlne (2003), we tied the mechanisms of our original model closer to the network view of industrial markets by focusing on the critical role of building and changing relationships. One implication is that the concept of a "country market" is no longer seen as a valid unit of analysis. In this note, we focus on network or partner commitment and its role not only for uncertainty reduction, but on a sub-set of issues, notably--opportunity development. We believe we have under-estimated this aspect and the purpose of this note is to make up for that. The paper is structured as follows. After a short introductory review of important applications of the IP model in international business research, we discuss the change from market commitment to relationship commitment. In a following section, we discuss the relations between relationship commitment and knowledge development. Next, we widen the discussion to include network relationships, social capital and knowledge development. …

Mixed Methods in International Business Research: A Value-Added Perspective

Abstract: The paper considers the use of mixed methods in international business research by reviewing empirical studies in four major journals. A total of 484 articles were reviewed, 68 of which had applied a mixed method strategy. In our analysis we categorize mixed methods according to their use in different stages of the research process and provide a range of alternative designs for mixing qualitative and quantitative methods.

Crossing Language Boundaries: Qualitative Interviewing in International Business

Abstract: In this paper, we explore the use of foreign languages in qualitative interviewing, an issue previously treated as a mere technical consideration and largely neglected in the monolingual, English-dominated environment of international business research. Drawing on literature from linguistic anthropology and qualitative interviewing methodology, we provide a holistic view of foreign language use based on the experiences of 34 scholars from different countries.

The dynamics of guanxi in Chinese hightech firms: Implications for knowledge management and decision making

Abstract: This paper employs multiple theoretical perspectives — resource-and knowledge-based views as well as social network theory — to explore the dynamics of guanxi in the context of Chinese entrepreneurial firms. We propose a dynamic model and offer multiple propositions for researchers to examine the role of guanxi for knowledge management and decision-making at various developmental stages of such firms.

Postcolonialism and the politics of qualitative research in international business

Abstract: This paper offers a re-configuration of international business research by subjecting it to a postcolonial critique. This critique sees international business research as exhibiting continuities with the colonial project in the way it appropriates the Other. Qualitative research in international business often reproduces a neopositivist separation of theory and method, which can marginalize discussion of the important ontological, epistemological and political issues inherent in any research process.

Narrative interviewing and narrative analysis in a study of a cross-border merger

Abstract: Narratives are important tools in constructing an organization, and individual and collective narratives about key actors and critical events compete in defining the organization and making sense of the challenges faced in organizational change processes. This article introduces narrative interviewing and narrative analysis as qualitative methods relevant to international business research, with illustrations from a case study of a cross-border merger.

Mode of International Entry: The Advantages of Multilevel Methods

Abstract: and Key Results ▪ International strategy empirical research on the mode of entry has typically overlooked the multilevel nature of this question and relied on non-multilevel quantitative methods. This creates important conceptual and statistical limitations. We examine such drawbacks by explaining the multilevel nature of this research question and the necessity to use multilevel methods. ▪ As an illustration, we develop a multilevel model and run a multilevel Bernoulli analysis to analyze the determinants of modes of entry, using a dataset on Japanese Foreign Direct Investment. Its results are compared to those of the dominant statistical method used in International Management for this topic: logistic regression. ▪ Research on mode of international entry has a clear conceptual and empirical multilevel dimension. Non-multilevel quantitative methods limit the conceptual development of this research and have negative statistical consequences that pose a risk for the validity and robustness of the results. In contrast, multilevel quantitative methods provide benefits when incorporating them for research on the selection of an entry mode. This has important methodological implications for future quantitative research on this topic.

Process perspectives in international business research in CEE

Abstract: • Internationalisation processes have been a core interest of international business research since the seminal contribution by Johanson/Vahlne (1977) • The unique context of economic transition in CEE directs the attention to dynamic aspects of these processes, and to the interaction with changing environmental conditions • This introductory paper reviews the contributions of recent CEE research, and this special issue in particular, to advancing our understanding of internationalisation processes

The Importance of Language in Global Teams: A Linguistic Perspective

Abstract: and Key Results ■ Often one of the main problems faced in global teams is that one or more of the team members will need to use a foreign language. This can cause communication difficulties and hinder the performance of global teams. ■ We discsuss in this paper how research in linguistics can help further research on these difficulties in global teams, giving examples of different types of challenges and their implications. Linguistic analysis can enrich our theories about global team management and improve management practice of global teams.

The impact of subsidiary top management team national diversity on subsidiary performance: Knowledge and legitimacy perspectives

Abstract: and Key Results This study examines the impact of nationality composition within subsidiary top management teams (STMTs) on subsidiary performance. It first gives a review of the multinational team literature. It concludes that nationality diversity is beneficial when it is relevant to a multinational team’s task. The study then draws upon two complementary theoretical perspectives: knowledge and legitimacy. It proposes that a heterogeneous STMT nationality composition may enhance subsidiary performance with the effect being stronger in subsidiaries of longer years of operation. Hypotheses were tested in a sample of STMTs from Japanese Multinational Corporations. The study finds that STMT nationality heterogeneity was positively related to subsidiary labor productivity. An interaction effect was also found. As the number of years a subsidiary had been in operation increased, so did the effect of STMT nationality heterogeneity on subsidiary performance.

The acquisition of tacit knowledge in China: An empirical analysis of the ‘supplier-side individual level’ and ‘recipient-side’ factors

Abstract: The This study examines the impact of ‘supplier-side individual level’ factors pertaining to foreign expatriates, e.g., individual embeddedness and motivation, as well as a number of recipient-side variables, on tacit knowledge acquisition by Chinese firms through joint ventures. Results indicate that individual embeddedness of foreign expatriates, and recipient-side variables such as recipient’s collaborativeness, its readiness, and the comprehensiveness of its acquisition methods play critical roles in the successful acquisition of tacit knowledge.

Access to networks and commitment to internationalisation as precursors to marketing strategies in international markets

Abstract: The role of networks and international commitment in the formation of internationalisation strategies has not yet been explored in international research. The present paper investigates these relationships in a sample of 206 Norwegian exporters. This article suggests that access to networks and commitment play significant roles in the formation of internationalisation strategies. Implications for management and research are discussed.

An empirical examination of reward preferences within and across national settings

Abstract: and Key Results ▪ The present study empirically investigates employee reward preferences in the cross-national context using a sample drawn from 60 companies in two culturally distinct countries, Finland and China (Hong Kong). ▪ The results underscore the benefits of adopting a total reward management approach which includes a mix of financial and non-financial rewards. ▪ We found that a fuller appreciation of reward preferences entails consideration of employee characteristics and other contextual factors beyond culture.

Building bridges, windows and cultures: Mediating mechanisms between team heterogeneity and performance in global teams

Abstract: and Key Results While research on teams shows evidence that heterogeneous composition and global dispersion creates difficulties, it has yet to holistically address how to over-come those difficulties without losing the intended benefits. We describe four mechanisms to mediate the difficulties created by heterogeneous composition and global dispersion on global teams.

The effect of keiretsu affiliation and resource dependencies on supplier firm performance in the Japanese automobile industry

Abstract: Resource dependence theory was used to develop hypotheses on whether keiretsu affiliation, mutual dependence between the automaker core and supplier firms, and internationalization level of the affiliate firm have an effect on its performance. The hypotheses were tested on archival data from the entire population of 470 first-tier automobile components suppliers in Japan.

Does relationship marketing exist in cyberspace

Abstract: and Key Results ▪ A central tenet of relationship marketing is that exchanges can be classified on a continuum ranging from episodic transactions to relational exchanges embedded in social bonds. ▪ The aim of this study is to assess whether the unique transacting properties of the Internet (e.g., interactivity, connectivity) promote or hinder the development of exchange relationships. ▪ The study reveals that exchanges conducted in unregulated cyber-markets are invested with similar expectations and norms regarding cooperative behavior as more traditional marketplace exchanges.

Melting Pot or Tossed Salad? Implications for Designing Effective Multicultural Workgroups

Abstract: and Key Results ■ The literature on the functioning and effectiveness of diversity-based workgroups tends to take the single perspective of exploring the effects of cultural or demo- graphic or functional diversity on workgroup performance. ■ This conceptual article develops a coupling framework for the analysis of the functioning of multicultural workgroups by integrating several lines of research and by reformulating their traditional conceptualization, outlining implications for their design. ■ Applying the concept of loosely coupled systems to multicultural workgroup functioning provides the conceptual link necessary for a solution of the dilemma of multicultural workgroups.

Turbulence, Discovery and Foreign Market Entry: A Longitudinal Study of an Entry into the Russian Market

Abstract: Firms entering transition markets are typically ignorant about those markets, and the markets, owing to the transition from a planned to a market economy, are typically turbulent. Consequently the ...

The Product Cycle Revisited: Knowledge Intensity and Firm Internationalization

Abstract: and Key Results ▪ This paper presents an expanded version of the product cycle framework, which illustrates how the role of R&D, production and marketing activities, as a salient determinant of competitive advantage, evolves along the product cycle. The frame-work considers the implications of these changes for the internationalization of firms marketing products belonging to the different phases of the cycle. ▪ The paper shows how changes in “knowledge-intensity” of products along the product cycle are interrelated with changes in “service-intensity” and “distance premium” and thus enable to predict the sequence in which low knowledge intensive and high knowledge intensive firms internationalize R&D, production and marketing activities.

The Effects of Institutional Ownership on Corporate Governance and Performance: An Empirical Assessment in Hong Kong

Abstract: Using 433 publicly listed companies in Hong Kong, this study analyses how the institutional ownership of firms affects their corporate governance and performance. Our results indicate that institutional ownership exerts a direct and significant influence on corporate governance in such areas as board composition, CEO duality, leadership diversity, and ownership concentration.

Stage models re-visited: A measure of the stage of internationalisation of a firm

Abstract: This paper presents a scale to measure the stage of internationalisation of a firm which depicts export development as an innovation adoption process. A four-stage, multi-item scale ranging from export awareness, interest, trial to adoption is developed. The analysis is based on two independent surveys of Australian wineries. Systematic procedures of scale development are followed including the use of confirmatory factor analysis for scale validation.

MNEs’ strategies in Central and Eastern Europe: key elements of subsidiary behaviour

Abstract: * At the centre of the interface between the developmental needs of national industry and evolutionary processes in the MNEs' subsidiaries are knowledge-seeking and knowledge-generation processes. * Based on new survey evidence, we examine the strategies of MNE in Central and Eastern Europe (CEE). In particular, we investigate the knowledge characteristics of MNE subsidiaries in CEE by analysing the roles of subsidiaries, market orientation and sources of technology over time. Key Results * Initially market-seeking operations dominated in CEE, with little integration of CEE subsidiaries into global MNE networks. The relative scarcity of export-oriented efficiency-seeking operations in CEE can be explained by persistent high-levels of uncertainty in CEECs and resistance from MNEs' longer-established Western European manufacturing subsidiaries. * European MNEs pursue the most country-centred strategies while the Asian MNEs have the highest export-orientation. Also it is found that CEE subsidiaries in motor vehicle and mechanical engineering have the highest export-orientation to European Union markets. However we suggest that product differentiation using CEE creative capabilities (i.e. technology and engineering expertise) rather than cost-competitiveness, may ultimately secure a more sustainable and embedded entry into MNEs' wider European (or global) networks. * Host governments may consider targeted and coherent policies that reduce business uncertainties and, thus, may sway MNEs to locate higher value-added activities in their country. Introduction MNEs pursue a variety of strategic objectives when investing in Central and Eastern Europe (CEE), thus establishing different types of operations (Estrin/Hughes/Todd 1997, Mutinelli/Piscitello 1997), and interacting in different ways with the host economy. This paper examines which alternative strategies are being pursued by multinational enterprises (MNEs) in CEE and their implications for the processes of industrial transformation and economic development in CEE. The contributions to the host economy would greatly vary with the heterogeneity of MNEs' operations and evolutionary processes that emerge at subsidiary level. Our analysis thus aims to provide a fuller understanding of how MNEs contribute to sustainable economic development. At the centre of the interface between the developmental needs of the host-country economy and evolutionary processes in the MNEs' subsidiaries are knowledge-seeking and knowledge-generation processes. A major research concern is thus how MNEs contribute to knowledge accumulation by providing a creative component in the transformation of transition economies (Dunning 1994, Manea 2002, Meyer 2004). This study addresses these issues by analysing the characteristics of subsidiaries that may influence the nature and value of MNEs' contribution to economic development. Recent research has analysed MNE operations in CEE economies in terms of motivations for foreign investment and types of subsidiaries (Lankes/Venables 1996, Mutinelli/Piscitello 1997, Meyer 1998, Rojec 1994, Rojec/Svetlicic 1993, Estrin et al. 1997, Donges/Wieners 1994). We go beyond this literature by considering the contribution of foreign enterprises to transition economies as being caseor role-specific. Subsidiaries have different strategic roles in their MNE group and vary in many attributes and their business activities. In consequence, they differ in their interactions with the local environment and their contribution to economic development (Meyer 2004). The needs of transition economies have evolved in two distinct phases: 1) the fundamental restructuring of the industrial sector and 2) the post-transition phase with more steady changes. The second phase involves different challenges as firms and countries have to sustain international competitiveness by developing and exploiting dynamic sources of comparative advantage. …

One of these things is not like the others: What contributes to dissimilarity among MNE subsidiaries' political strategy?

Abstract: We study why multinational enterprise (MNE) subsidiaries adopt dissimilar political strategies, and seek to advance the understanding of international political strategy from an MNE parent-subsidiary perspective. Drawing on the MNE parent-subsidiary literature, we contend factors at the subsidiary, corporate, and host country levels contribute to subsidiary political strategy dissimilarity. We test our hypotheses with a sample of U.S. MNE subsidiaries within Western Europe.

Intercultural learning in global teams

Abstract: and Key Results ■ This case study research combines qualitative and quantitative data in order to answer the critical question, how is intercultural competence developed and spread in a multinational company? ■ This study suggests that the link between the existence of global teams and the performance of an international company is indirect: global teams help to develop intercultural competencies; they, in turn, contribute to performance. Intercultural interaction among the employees of a company, especially within global teams, provides the highest learning potential for intercultural competence. Long-time interaction, care and conflict characterize global teams. These characteristics per- mit learning to result from intercultural interaction.

“Push” and “Pull” Impacts of NAFTA on Environmental Responsiveness and Performance in Mexican Industry

Abstract: * One of the debates surrounding the implementation of the North American Free Trade Agreement (NAFTA) in January 1994 was the disparity in environmental standards between the US, Canada, and Mexico. The US environmental community successfully pushed for NAFTA to include environmental side agreements designed to strengthen environmental regulation in Mexico. One goal of these side agreements was to improve environmental performance in Mexico through increased regulatory pressures on manufacturing firms operating in Mexico. * One would expect that increased regulatory pressures would "push" companies to improve industrial performance. However, we propose that NAFTA also impacts industrial environmental performance through increased trade opportunities. We expect that Mexican firms selling to U.S. and Canadian customers would manage environmental performance more aggressively than those firms only selling within Mexico, as the stronger environmental cultures of the U.S. and Canada create a "pull" effect on Mexican companies. Key Results * Using data from 221 Mexican manufacturing sites, we provide evidence that both the "push" effect of regulatory influence and the "pull" effect of market pressures were significantly associated with industrial environmental responsiveness, and that degree of environmental responsiveness is positively and significantly associated with environmental performance outcomes. We therefore conclude that NAFTA has exerted a positive influence on industrial environmental performance in Mexico. * Furthermore, we contribute evidence of the relative influence of regulatory and market pressure. The data analysis demonstrates that market forces were significantly more influential than regulatory influences, and had a significantly stronger effect on environmental responsiveness. This finding contributes new evidence of the potential impact of trade agreements. Introduction The North American Free Trade Agreement (NAFTA), implemented between the US, Canada, and Mexico effective January 1994, was a leading impetus for change in the world of Mexican business (Case 1999). The NAFTA agreement created the world's largest free-trade area, and since its implementation trade between the US, Canada, and Mexico has increased substantially. Mexican imports to the US and Canada almost tripled between 1993 and 1999, from $44,658 million in 1993 to $123,114 million in 1999 (ENEGI 2002). NAFTA also represented "the most environmentally-conscious trade pact" (Hufbauer et al. 2000, p. 5) in the world. The NAFTA environmental framework, commonly referred to as the NAFTA side agreement, was created through NAFTA provisions and the North American Agreement on Environmental Cooperation (NAAEC). The intent of the NAFTA environmental framework was to harmonize health and safety regulations, environmental standards and enforcement of environmental laws between the US, Mexico and Canada. Prior to NAFTA, the environmental regulatory climates in the US and Canada were strong compared to that of Mexico. Therefore, the greatest impact of these agreements on environmental management practices and performance would be exerted on Mexican companies. By agreeing to NAFTA, the Mexican government caused Mexican firms to face additional pressures related to environmental management practices and performance. The purpose of this study is to analyze the NAFTA impact on Mexican environmental management responsiveness and performance at the level of the manufacturing facility. Our conceptual model (Exhibit 1) proposes that the environmental provisions contained in the NAFTA and NAAEC exerted both a "push" pressure and a "pull" pressure on Mexican firms' environmental responsiveness. The "push" pressure was exerted through NAFTA's influence on Mexican environmental regulation. As a consequence of NAFTA participation, environmental management priorities were heightened in the Mexican government. …

International experience heterogeneity effects on top management team advice networks: A hierarchical analysis

Abstract: and Key Results This study examines the MNC top-management-team’s international attribute profile, its relationship with its individual team member international attributes and the joint effect these two levels of international attributes have on the individual’s position in the TMT advice network on international business advice. In particular, this study examines how diversity in the international experience of each manager individually and in the context of the international experience of the entire team influences a manager’s centrality in providing international business advice to the team. A hierarchical data structure design allows the examination of cross-level effects, given that a TMT member’s network centrality may be a function of both individual level and group level influences. Strong support was found for considering centrality a function of both individual and group level attributes with each level accounting for approximately half of the variability in centrality. Mechanisms at one level of analysis may be different, or have different effects, than mechanisms at another level of analysis.

Guest Editors' Introduction to the Focused Issue: Qualitative Research Methods in International Business

Abstract: The purpose of this focused issue is to advance understanding of qualitative research methods in the international business context. Debates on qualitative research methods in the key international business (IB) journals have been rare. There has been no focused issue on this topic previously, either in mir or in other journals in the field, making this a 'special' issue. During the process of editing a recent handbook on qualitative research methods (Marschan-Piekkari/Welch 2004), we realized that while this collection covered many topics, often for the first time in the IB field, there were many others still outstanding. There was thus scope for continuing a dialogue about qualitative methods in the IB research community. The challenge of making qualitative research count in the quantitative world of IB remains. Qualitative research is difficult to define, since the term encompasses many different research traditions, research strategies and methods for data collection and analysis (Prasad 2005). A typical definition is that everything non-numerical is qualitative research (Marschan-Piekkari/Welch 2004, p. 19). However, even this very simplistic definition soon breaks down, since research strategies which are typically considered to be qualitative, such as case studies, can combine numerical with non-numerical data (Hurmerinta-Peltomaki/Nummela 2004). There is also no clear divide between qualitative and quantitative research in terms of research traditions, with much qualitative research in management and IB sharing the positivist assumptions of quantitative research (Prasad/Prasad 2002). This focused issue is not about reporting the empirical findings of IB studies applying qualitative methods; rather it is about the process of undertaking qualitative research in the IB field. Of course, there is a large volume of literature on qualitative research methods already. However, we would argue that the IB context warrants special treatment. As the authors of this focused issue discuss, the distinctiveness of the field stems from its multiple linguistic and cultural settings; organizational complexity; and its intellectual roots in post-War academic institutions in the USA. These issues receive little treatment in general texts on qualitative methodology. There has been some methodological debate in previous issues of mir. Earlier articles in mircan be grouped into three categories: first, reviews of existing methodological practices in IB publications (e.g., Cavusgil/Das 1997, Nasif et al. 1991); second, proposals for new quantitative techniques (e.g., the use of key informants in cross-cultural studies, as proposed by Lenartowicz and Roth 2004 and a linguistic-based measure of cultural distance as developed by West and Graham 2004); and third, calls for new methodological approaches (Boddewyn/Iyer 1999). The absence of qualitative research methods in this debate perhaps reflects the limited amount of empirical qualitative research published in this journal. A recent analysis of mir issues between 1990 and 1999 revealed that only 5 percent of articles published in this period used qualitative methods (Welch/Welch 2004). This focused issue is therefore a response to those, such as Boddewyn and Iyer (1999) in this journal, who have called for alternatives to surveys and secondary data analysis. This focused issue attracted 39 submissions from more than 15 countries. Given that there have been limited outlets for methodological articles in IB, this is a considerable number. It perhaps suggests a level of interest to which IB journals have not responded to date. Of the total number of submissions, 11 were selected for review. On the basis of reviewers' comments, six of these papers were ultimately rejected. The final five papers underwent two and, in some cases, up to four rounds of revisions. In selecting the articles, we used the following criteria: appropriateness of the topic for the focused issue; demonstrated knowledge of IB and methodological literature; quality of argument; originality and innovativeness of the contribution to IB methodology; organization and clarity of the paper; and potential application to research practice in IB. …

Autonomy of foreign R&D units in an emerging market: An information processing perspective

Abstract: ■ This study uses an information processing view to assess how autonomy of foreign R&D units in a major emerging market is influenced by the organizational and environmental conditions they face. ■ We argue that specification of the autonomy is an optimal decision requiring a balance between the costs of information processing capacity and the needs of information processing for performing R&D tasks.

Direct competition, number of partners and the longevity of stakes in joint ventures

Abstract: ■ In this paper, we draw attention to the interaction between the number of partners and the direct competition between these when explaining the longevity of stakes in joint ventures (JVs). ■ We argue that increases in the number of partners have a positive effect on the longevity of stakes in JVs only when all of these are competitors, especially if the JV includes marketing activities. In contrast, if not all of the partners are competitors, the effect of the number of partners will be the opposite. Our hypotheses are empirically tested via several estimates of proportional hazard regressions, using a sample of JVs carried out by Spanish firms.

Guest editors’ introduction to the focused issue: A new direction for global teams research

Abstract: We recently asked international managers whether they do a significant proportion of their work in global teams, defined as a group of people with a common purpose, working on interdependent tasks, that functions across boundaries of space, time, and organization. Fully eighty-five per cent said they conduct more than half of their work in this setting, and two-thirds reported that they work on two or more such teams. (1) The majority also reported that global teams were relatively new in their organizations, that ten years ago such teams did not generally exist but now, with global business divisions, supply chains, and product development, global teams are the norm rather than the exception (see also Kanawattanachai/Yoo 2002). These managers felt overwhelmed by the situation. What they had learned about teams from training, business schools, and articles helped them somewhat, but fell far short of providing guidance on how to manage these complex situations. While academic research on teams has begun to explore some of these complexities, we believe a real shift in direction on team research is overdue. Research on teams has traditionally been relatively simplistic and linear, looking at observable demographics, generic processes within teams, and outcomes of those processes. Most research on global teams has extended this view to look at the same dynamics in teams in a multinational context. However, the environment that global teams operate in and the configuration of dynamics they experience require that we understand much more complex influences on these teams and their relationship to organizational effectiveness. We believe the concept of "team" as traditionally defined is outdated, especially for today's global teams. When researchers think of a "team", they tend to assume something relatively stable and contiguous with a specific purpose that requires interdependence. But when today's managers in multinational organizations think of their teams, they see shifting membership and boundaries, embedded in multiple organizational and environmental contexts, with dynamic tasks. Moreover, each team member is simultaneously part of several different teams with different if not conflicting purposes. Managing these complex entities is not simply a matter of making a linear extension from managing a traditional team. The step change in complexity requires rethinking how the teams are managed and their roles within organizations (Lane et al. 2004). And this is coming from a difficult starting point where only 14% of companies rated their traditional teaming efforts as 'highly effective' (IW/MPI Census 2004). In this focused issue on global teams, we take a look at the global team from different perspectives, building a more comprehensive picture of today's teams in multinational organizations. To introduce the issue we first set the scene for global team research by identifying the components of such teams' complexity, suggest some new ways to think of global teams as networks of social capital, then summarize the place in the domain of each of the articles in this publication. The Complexity of Global Teams A global team is an internationally distributed group of people, identified by its members and the organization as a team unit, with a specific mandate to make or implement decisions that are international in scope (Canney Davison/Ward 1999, Maznevski/Chudoba 2000). Global teams are designed to reconcile the increasing corporate demands for renewal and adaptability with the need for heightened levels of learning based on inter-unit mutual trust, commitment and co-ordination (Ghoshal/ Bartlett 1995). To researchers, the most noticeable difference between global teams and "normal" teams is the distribution of members; hence, much research on global teams has fallen under the rubric of "virtual teams" (see for example Martins et al. 2004). However, there is much more to these teams than their virtuality. …