Showing papers on "Internationalization published in 1991"
TL;DR: It is argued that technology is the primary determinant of cross-border integration and the importance of manufacturing scale has been overemphasized, and the implications of the increasing cost and complexity of technology for the state-based political system are discussed.
Abstract: The primary concern of this paper is the structural characteristics of an industry that generate returns to transnational integration: manufacturing scale economies and technological intensity. Integration is operationalized as intrafirm flows of resources. Intrafirm trade as a proportion of all international sales is used as an index of integration across 56 manufacturing industries containing U.S.-based firms. Ordinary least-squares analysis of the determinants of integration—technological intensity, manufacturing scale, advertising intensity, and internationalization (as a control) reveals that technological intensity, advertising intensity, and the control are significant and scale is not. I argue that technology is the primary determinant of cross-border integration and the importance of manufacturing scale has been overemphasized, and conclude by discussing the implications of the increasing cost and complexity of technology for the state-based political system.
644 citations
TL;DR: In this article, contributors to Immigration, Trade, and the Labor Market provide an innovative and comprehensive analysis of the labor market impact of the international movements of people, goods, and capital.
Abstract: Are immigrants squeezing Americans out of the work force? Or is competition wth foreign products imported by the United States an even greater danger to those employed in some industries? How do wages and unions fare in foreign-owned firms? And are the media's claims about the number of illegal immigrants misleading? Prompted by the growing internationalization of the U.S. labor market since the 1970s, contributors to Immigration, Trade, and the Labor Market provide an innovative and comprehensive analysis of the labor market impact of the international movements of people, goods, and capital. Their provocative findings are brought into perspective by studies of two other major immigrant-recipient countries, Canada and Australia. The differing experiences of each nation stress the degree to which labor market institutions and economic policies can condition the effect of immigration and trade on economic outcomesContributors trace the flow of immigrants by comparing the labor market and migration behavior of individual immigrants, explore the effects of immigration on wages and employment by comparing the composition of the work force in local labor markets, and analyze the impact of trade on labor markets in different industries. A unique data set was developed especially for this study ranging from an effort to link exports/imports with wages and employment in manufacturing industries, to a survey of illegal Mexican immigrants in the San Diego area which will prove enormously valuable for future research."
557 citations
TL;DR: In this paper, the authors examined internationalization in family businesses and suggested that if the company is unable to take advantage of the factors that facilitate internationalization or overcome the factors of restrain it, the process will probably fail.
Abstract: Family businesses are faced with many factors that either facilitate or restrain internationalization. The company's strategy, organizational structure, culture, and developmental stage are intertwined with the family's international characteristics, and each area involves different facilitating or restraining factors. This article, based on experience, previous studies, and a series of interviews, examines internationalization in family businesses. The authors suggest that if the company is unable to take advantage of the factors that facilitate internationalization or overcome the factors that restrain it, the process will probably fail.
374 citations
TL;DR: Porter's Competitive Advantage of Nations is an important book which bridges the gap between strategic management and international economics while contributing substantially to both as discussed by the authors and demonstrates the potential for the theory of competitive strategy to rescue international economics from its slide into refined irrelevance.
Abstract: Porter's Competitive Advantage of Nations is an important book which bridges the gap between strategic management and international economics while contributing substantially to both. Porter's analysis of the impact of national environment on international competitive performance demonstrates the potential for the theory of competitive strategy to rescue international economics from its slide into refined irrelevance, while simultaneously broadening the scope of the theory of competitive strategy to encompass both the international dimension and the dynamic context of competition. Nevertheless, the breadth and relevance of Porter's analysis have been achieved at the expense of precision and determinancy. Concepts are often ill defined, theoretical relationships poorly specified, and empirical data chosen selectively and interpreted subjectively.
297 citations
Book•
01 Jan 1991
184 citations
Journal Article•
TL;DR: In this paper, the authors examined the relationship between firm size, as measured by sales volume, export experience, and export attitudes and found that small firms are less severely affected by adverse external shifts than their larger counterparts.
Abstract: In the last three decades the number of American companies involved in international commerce has increased dramatically Ojile (1986), for example, indicates that more than 6,000 US organizations have some sort of operation abroad and about one-third of all US corporate profits result from international activity By 1984, the internationalization of trade had created 58 million jobs in the US, and in 1990 it was expected to have generated no fewer than 74 million employment opportunities (Young et al 1986) Nevertheless, the US ranks last among the Organization for Economic Cooperation and Development (OECD) countries in exports as a percentage of Gross National Product This low ranking is explained in part by the skewed distribution of export activity The Department of Commerce estimates that a mere 1 percent of US manufacturing firms account for 80 percent of US manufactured exports (Edfelt 1986) Given the large size of the foreign market and this low participation rate, small and medium-sized firms have the potential to reap large gains from export activities Although it may increase cost and uncertainty, exporting can help smaller organizations increase profits, prolong product life cycles, and open new distribution channels Furthermore, small firms have been shown to be less severely affected by adverse external shifts than their larger counterparts They have been shown to be less sensitive to currency fluctuations, in part, because they can usually make quick price adjustments (Holden 1986) Nations which achieve highly competitive positions in world markets tend to have small and medium-sized firms actively involved in international trade For example, in Germany and Japan small and medium-sized enterprises account for a large percentage of each country's exports (Dichtle et al 1984, Edmunds and Sarkis 1986) Unfortunately, this is not the case in the US, despite research indicating immense potential America's small and medium-sized firms are producing products desired in the world market; yet, their enthusiasm for internationalization is tempered by their inability to gather market information and maintain a continuous flow of communication with foreign clients, and by their lack of experience in planning and targeting export sales in world markets (Kaynak and Kothari 1984) Given this mix of positive and negative forces acting upon a given manufacturing firm, export participation is largely a function of size, experience, and managerial interest Firms headed by managers who perceive global marketing as an opportunity and challenge rather than an undesirable burden are much more likely to respond favorably to foreign market opportunities The research reported here examines the relationship between firm size, as measured by sales volume, export experience, and export attitudes Four hypotheses are tested using data from 195 midwestern manufacturing firms SIZE AND FIRM EXPORT BEHAVIOR In their review of the literature, Kaynak, Ghauri, and Oloffesson-Bredenlow (1987) indicate that small and medium-sized firms display similar behavioral and operational characteristics That is, most of them are either passive or reactive exporters This observation is consistent with other research Studies suggest lack of knowledge about foreign markets, inability to assess market conditions in a changing international environment, and inability to target export sales are the major problems inhibiting small and medium-sized organizations from exporting (Czinkota and Johnston 1983, Edmunds and Sarkis 1986, Green and Larsen 1987, Kaynak and Kothari 1984, Kinsey 1987) On the other hand, export success seems to be facilitated by patience, flexibility, and a willingness to take on additional risk (Holden 1986, Posner 1984) The federal government has launched numerous promotional programs to encourage non-exporter interest in global markets …
112 citations
TL;DR: In this paper, the authors argue that decolonization abolished a set of economic agencies which have yet to be adequately replaced, and they focus upon how policies have reilnforced this structure and on the problems it has caused.
Abstract: AE RICA'S EXTERNAL relations have dominated the discussion of its economies. In trade relations, protectionism against imports and schemes to reduce the volatility of export income; in factor market relations, dependence upon foreign firms and foreign labour. During the 1 980s even domestic policies such as public services have been internationalized through donor condil:ionality, itself a by-product of foreign aid and foreign debt. In this short paper I cannot attempt to be comprehensive. Instead I focus upon two thmes. The first is about changes in the relationship between African governments and external authorities. I argue that decolonization abolished a set of economic agencies which have yet to be adequately replaced. My second theme is about trade and shocks. Africa was and is a collection of small open economies reliant upon agricultural and mineral exports the income from which is volatile. I focus upon how policies have reilnforced this structure and on the problems it has caused. The two thlvmes are drawn together by a proposal to enhance the role of a particular type of multinational institution which has had some success.
102 citations
TL;DR: The three traditional views of retail internationalization involve the diffusion of retail concepts, operational involvement in foreign markets and the internationalization of a retail management function as mentioned in this paper, and there is evidence that there is an unprecedented level of interest in internationalization as a viable strategic option for retailers.
Abstract: The three traditional views of retail internationalization involve the diffusion of retail concepts, operational involvement in foreign markets and the international- ization of a retail management function. None of these identified categories is new, but there is evidence that there is an unprecedented level of interest in internationalization as a viable strategic option for retailers. This paper examines these themes within die grocery sector in Europe, through an empirical investigation of activity in the post-war period.
101 citations
Book•
01 Jan 1991
88 citations
TL;DR: In this paper, the authors examined the problems and paradoxes in the interface between theory and reality of SME export expansion and highlighted the role of local and regional institutional richness and specialization directed towards SME exporters.
Abstract: Government programmes to promote SME manufacturer' export expansion are flourishing. Yet, the many facets of SMEs' process of internationalization are not explained satisfactory by normative theories of the internationalization of firms. SME exporters are often in a squeezed situation hardly reflected by normative theories on the internationalization of firms. Major problems and paradoxes in the interface between theory and reality are briefly examined in this article. Focus is given to three major issues seldom touched upon, namely the reduction of time-lag from the startup of the firm to the required start of export activity; the typical lack of internal resources and management capacity to commit in advance to export expansion and the need to commit external resources and competence in support of the SME export expansion. Finally, supply-side conditions are touched upon, emphasizing the role of local and regional institutional richness and specialization directed towards SME exporters.
Book•
01 Jan 1991
TL;DR: In this paper, economic implications of strategic competition in oligopolistic industries: the concept of competition is evaluated, and economic consequences of entry restriction policies investment competition and economic welfare are discussed.
Abstract: What is industrial policy? postwar Japanese industrial policy - an historical overview. Part 1 Industrial promotion and trade: industrial policy and changing industrial structure theories of infant industry protection - an overview industrial set-up costs and Marshallian externalities scale economies and information choice of industrial structure and economic welfare. Part 2 Oligopolistic control of an international market: strategic behaviour and Nash equilibrium international redistribution of monopoly rents strategic entry deterring behaviour and entry assistant policy strategic intervention in international competition - significance and limitations. Part 3 Welfare implications of strategic competition in oligopolistic industries: the concept of competition - an evaluation economic implications of entry restriction policies investment competition and economic welfare - a reconsideration of the concept of "excessive competition". Part 4 Research and development investment: characteristics of technical knowledge and incentives for research and development traditional theory of research and development and under-investment research and development competition and excess investment introduction market structure and research and development - innovation, improvement, and imitation research and development and industrial policy - with special reference to research and development associations. Part 5 Further problems in formulation of future industrial policy: problems related to industrial adjustment policies internationalization of the economy and industrial policies.
TL;DR: The reception of American law in Europe has been discussed in this article, focusing on the specific role played in Europe by the law of the United States of America since World War II.
Abstract: The internationalization of law has become a matter of great significance due to the increasing population mobility and to the growth rate of the world economy. A series of recent events evidence a new dimension of internationalization, both in their form and in their effect. One example is the standardization of law within the European Community. Whereas to a certain extent this arises automatically, owing to the close economic and political relationships between member countries of the EC, it also results from the internationalization and globalization of financial markets. A second development, less spectacular but of more far-reaching consequence, is the subject of this paper: The Reception of American Law in Europe. At the outset, some preliminary matters of terminology need clarification. This concept of reception is not a new approach to the comparison of continental European and Anglo-American law.' Rather, it focuses on the specific role played in Europe by the law of the United States of America since World War II. A number of observations contained herein relate to the European Continent as a whole, including Great Britain. The following discussion, though restricted primarily to developments in Switzerland,2 should be of general, conceptual interest given the fact that the Swiss legal system has always been especially open to foreign law. The term "reception" is intended to denote the integration of foreign ideas and ways of thinking. There exists a certain degree of consensus in favor of the conviction that all reception procedures should be seen as cultural and social procedures. This is particularly relevant to the ter-
TL;DR: The globalisation of social relations puts increasing pressure on both national and international state structures, and requires a popular internationalist response as discussed by the authors, which is the basis of the regulatory framework of modern corporate capitalism.
Abstract: The national state was the basis of the regulatory framework of modern corporate capitalism. International coordination of state functions is based on bureaucratic corporatist bargaining through formal and informal structures. The globalisation of social relations puts increasing pressure on both national and international state structures, and requires a popular internationalist response.
TL;DR: In this article, the authors consider the case of direct foreign investment (DFI) by retail companies, focusing on their motives and means, and review the evidence available with respect to Europe.
Abstract: The internationalization of retailing has been relatively slow if compared to the internationalization of manufacturing industries. However, the pace of cross-border investments by retail companies has been increasing in recent years. This trend has been particularly visible in Europe, as a consequence of the completion of the common market (project 1992). The author considers the case of direct foreign investment (DFI) by retail companies, focusing on their motives and means, and reviews the evidence available with respect to Europe. While there are a number of recent articles which investigate the existing patterns of DFI by retail companies, not much has been done in trying to analyse this evidence using the well established concepts developed by industrial organization literature. The first aim of the article is to review these concepts and see if, and to what extent, they can be useful to understand the patterns of DFI in retailing. Since the main reason for investing abroad lies in some form of inno...
TL;DR: In this paper, the authors examined results obtained from 67 American expatriate managers (EXM) in Japan of whom 47 per cent were part of a dual-earner couple in America, and found that career-oriented spouses were almost seven times as likely to find employment after an international transfer as non-careeroriented spouses.
Abstract: The increasing internationalization of business and the rise of dual-earner couples in the labour force combine to make the area of international human resource management and career development complex and important. This article examines results obtained from 67 American expatriate managers (EXM) in Japan of whom 47 per cent were part of a dual-earner couple in America. the study found that career-oriented spouses were almost seven times as likely to find employment after an international transfer as non-career-oriented spouses. It is argued that because career-oriented spouses in general were able to find employment and avoid major job interruptions, there was no significant difference between the adjustment of expatriate managers whose spouses worked in the US before the transfer but not after and EXMs whose spouses worked before and after the transfer.
TL;DR: In this article, the authors argue that the international character of human resource management can be said to rest on three things: (1) the increasing internationalization of business, which brings organizations into contact with different national cultures and promotes the spread of management practices across national boundaries, (2) underlying economic and technological trends, arising in part from the activity of multinational firms but mediated also by international institutions.
Abstract: C. Brewster and S. Tyson (eds) (1991) International Comparisons in Human Resource Management. London: Pitman. P. J. Dowling and R. S. Schuler (1990) International Dimensions of Human Resource Management. Boston, MA: PWS-Kent. R Pieper (ed.) (1990) Human Resource Management: An International Comparison. Berlin: Walter de Gruyter. This review article assesses three major recent works in international human resource management. The author argues that the international character of human resource management can be said to rest on three things: (1) the increasing internationalization of business, which brings organizations into contact with different national cultures and promotes the spread of management practices across national boundaries, (2) underlying economic and technological trends, arising in part from the activity of multinational firms but mediated also by international institutions, which may produce similar patterns of adjustment in the organization and management of employment at the national, s...
TL;DR: In this article, the authors argue that the process of internationalisation is first and foremost the consequence of political decision-making (to create open markets) and that many domestic interests linked to the international market have promoted internationalisation both through their policy preferences and economic activity.
Abstract: . The role of politics is particularly difficult to discern in the domain of international financial markets, where the state's capacity to control or direct capital flows, without incurring considerable opportunity (and political) costs, appears so limited. In addressing this question, this paper argues that the process of internationalisation is first and foremost the consequence of political decision-making (to create open markets) and that many domestic interests linked to the international market have promoted internationalisation both through their policy preferences and economic activity. The paper will then go on to argue that the threat of financial instability and crisis, a consequence of the increased volatility of relatively unregulated capital flows, has prompted political demands for more concerted inter-state co-operation to maintain stability. Much of this takes place through transnational agreements among state agencies, such as the central banks, and much through ‘reregulation’ in the guise of ‘harmonisation’ of regulatory and prudential supervisory policies.
Some of this process has received considerable publicity, such as the harmonisation of EEC regulations to facilitate freer trade in banking and financial services as part of the preparation for the Single European Market in 1992. Likewise, the current Uruguay Round of GATT trade talks has the liberalisation of trade in financial services on its agenda. Other aspects of the process have been carried on quietly, far from public view, in such forums as the Bank for International Settlements. Such is the case of a recent agreement to harmonise minimum capital adequacy requirements for banks operating in international markets. The paper uses these three cases to support the argument about the role of politics and the state in international finance.
Posted Content•
TL;DR: In this article, the authors present an important component of open economy macroeconomic models, which is essential to distinguish among several categories of assets, both foreign and domestic, and specify the demands and supplies.
Abstract: Portfolio theory has been an important component of open economy macroeconomic models. In those models, it is essential to distinguish among several categories of assets, both foreign and domestic, and to specify the demands and supplies. This framework has become increasingly relevant. Movements of capital across regional and national boundaries, and across currencies, have exploded in volume, thanks to the dismantling of currency and exchange controls and other financial regulations and to revolutionary economies in technologies of communication and transactions. The globalization of financial markets was stimulated by the floating exchange rate regime established in 1973.
TL;DR: In this article, the authors analyse how far the EC-development will imply an internationalisation of European industrial relations and propose a common EC regulation and harmonization of the European labour market.
Abstract: The discussions raised in the theories of convergence and diversification of industrial relations are again becoming relevant due to the Single European Market and the proposals coming from the EC-Commission regarding a common EC regulation and harmonisation of the European labour market. How far the EC-development will imply an internationalisation of European industrial relations is analysed here.
TL;DR: In this paper, four factors have led to the evolution of the modern mass university in Europe, namely demographic and democratic developments, the university's role in economic development, the pattern in scientific advances and political developments in Europe.
Abstract: Four factors have led to the evolution of the modern mass university in Europe, namely demographic and democratic developments, the university's role in economic development, the pattern in scientific advances and political developments in Europe. These trends are linked to certain developments in the labour market, and they reveal the demands which lead to the modern university's dual role as a regional as well as an international institution. The internationalisation of the university has been furthered by innovative exchange programmes which promote the mobility of students and scholars and flexibility in academic programmes and institutions. Nonetheless, the programmes add a political dimension to the existing academic and research aims for mobility, and the success of the exchanges appears to depend on the development of adequate capacity within universities to support expanded international flows of students and scholars.
Posted Content•
TL;DR: In this paper, the role of the Japanese yen as an international currency is assessed and the determinants of international currency use imply an increase for the yen's use in international finance.
Abstract: The role of the Japanese yen as an international currency is assessed. It is found that the determinants of international-currency use imply some increase for the yen`s use in international finance; however, the implications for the yen`s use in international trade are mixed. It is also shown that, despite Japan`s emergence as the world`s largest net creditor nation, Japan`s capital outflows have not significantly facilitated the yen`s internationalization. Data are presented showing that, although the yen`s use as an international currency has increased, it is still rather modest. Wider use of the yen as a regional currency in Asia has occurred, though a "yen-zone" does not appear to be emerging.
TL;DR: The authors analyzes the reasons for the internationalization of R&D, examines its patterns in relationship to Germany and discusses the implications for future policy, and concludes that foreign direct investment has grown rapidly in recent decades and, along with it, foreign research and development activities.
Abstract: Foreign direct investment has grown rapidly in recent decades and, along with it, foreign research and development activities. The following article analyzes the reasons for the internationalization of R&D, examines its patterns in relationship to Germany and discusses the implications for future policy.
Posted Content•
TL;DR: In this article, the authors provide an innovative and comprehensive analysis of the labor market impact of the international movements of people, goods, and capital on the U.S. labor market.
Abstract: Are immigrants squeezing Americans out of the work force? Or is competition wth foreign products imported by the United States an even greater danger to those employed in some industries? How do wages and unions fare in foreign-owned firms? And are the media's claims about the number of illegal immigrants misleading? Prompted by the growing internationalization of the U.S. labor market since the 1970s, contributors to Immigration, Trade, and the Labor Market provide an innovative and comprehensive analysis of the labor market impact of the international movements of people, goods, and capital. Their provocative findings are brought into perspective by studies of two other major immigrant-recipient countries, Canada and Australia. The differing experiences of each nation stress the degree to which labor market institutions and economic policies can condition the effect of immigration and trade on economic outcomes Contributors trace the flow of immigrants by comparing the labor market and migration behavior of individual immigrants, explore the effects of immigration on wages and employment by comparing the composition of the work force in local labor markets, and analyze the impact of trade on labor markets in different industries. A unique data set was developed especially for this study—ranging from an effort to link exports/imports with wages and employment in manufacturing industries, to a survey of illegal Mexican immigrants in the San Diego area—which will prove enormously valuable for future research.
01 Jan 1991
TL;DR: In this paper, the authors analyze the views of managers of 63 Fortune 500 firms who worked in international, multinational, and global industries and suggest that IBS reduces to the "basic concepts" of efficiency, effectiveness, and learning and, most significantly, how executives simultaneously manage these dimensions.
Abstract: ■ Innovative explanations of international business strategy (IBS) have not been penalty-free: increased information often seems to increase ambiguity over the issue of strategically managing worldwide activities. ■ We analyze the views of managers of 63 Fortune 500 firms who worked in international, multinational, and global industries. Factor analysis suggests framing discussion within the context of the notions of multinational integration, internationalization through innovation, and national responsiveness. ■ The results suggest that IBS reduces to the "basic concepts" of efficiency, effectiveness, and learning and, most significantly, how executives simultaneously manage these dimensions.