Showing papers on "Internationalization published in 1993"

On the internationalization process of firms: a critical analysis

Abstract: Even though international marketing has been challenged because of theoretical and methodological shortcomings, very few researchers have actually attempted to analyze the weaknesses based on principles of theory evaluation. In this article, the author examines two types of models addressing the individual firm's internationalization process. A theory evaluation is performed based on the explanation and the falsification criteria. In order to improve the internationalization models, some measures are proposed.

The Impact of Size on Internationalization

Abstract: For most countries, prosperity depends on international trade. For example, in 1990, Canadian firms exported $146 billion ($ Canadian) in goods and services, or roughly 22 percent of Canada's gross domestic product (Statistics Canada 1991). However, as recent reports have noted, maintaining a country's standard of living requires that the domestic companies capture a larger share of international markets (Royal Bank of Canada 1991, Porter 1991). Much of this growth in exports is expected to come from small and medium-sized firms (Beamish and Munro 1987, Hardy 1986). Given the ascribed importance of these firms, the question arises as to whether they are capable of rising to the challenge? This article addresses this issue by asking two questions: Is there a relationship between size and internationalization? Is size a barrier to international activity? The first question seeks to evaluate the extent to which size has limited firms' international involvement while the second attempts to identify which firms are, in theory, capable of engaging in international activities. These two questions are examined in the context of three dimensions of internationalization: propensity to export; international sales intensity (international sales/total sales), and the countries served. LITERATURE REVIEW Most research on international business has started with the premise that small and medium-sized companies suffer from size disadvantages (Becker and Porter 1983, Levitt 1983, Mugler and Miesenbock 1986) that prevent or limit their ability to compete internationally. As a result, many studies on internationalization focus only on large businesses. However, some studies have incorporated a firm size variable within their investigation of internationalization. This section examines some of the literature surrounding the issue of internationalization and the small and medium-sized business in terms of international sales intensity and export markets. Exporters Versus Non-exporters In the study of the international sales orientation of firms, two distinct research streams have emerged. The first focuses on comparing the characteristics of exporters and non-exporters to see what differentiates the two. The second focuses on explaining what differentiates successful exporters (sometimes termed aggressive or committed exporters) from those firms who obtain a smaller percentage of their revenue from international sources, sometimes referred to as passive or experimental exporters (Cavusgil 1976, 1984). The size of the firm has been used as a discriminator within both research areas. Most studies have found that the larger the business, the more likely it is to export its products (Christensen, Rocha, and Gertner 1987; Abdel-Malek 1978; Tookey 1964; Kaynak and Kothari 1984; Lall and Kumar 1981). However, other studies have found that small and medium-sized firms can be involved in exporting (Cavusgil 1976, Edmunds and Khoury 1986, Malzehzadeh and Nahavandi 1985) and that size may not affect a firm's interest in exporting (Ali and Swiercz 1991). In distinguishing between exporters and non-exporters vis-a-vis the size of the firm, Cavusgil (1976) concluded that size was only a significant factor where the firm was very small; however, beyond some point exporting was not correlated with size. Taken collectively, these studies imply that very small firms are not likely to engage in export activity but--beyond the very small classification--size may not be an important factor. Export Intensity On the issue of size and export intensity, most studies have found that intensity (international sales/total sales) is positively correlated with firms size (Czinkota and Johnston 1983, O'Rourke 1985, Tookey 1964). However, some studies have found either no relationship or a negative relationship, with small firms having a greater level of international intensity than large firms (Bilkey 1978, Balcome 1986, Holden 1986). Balcome's study addressed this size issue, finding no discernible relationship between size and export orientation. …

Competition policy in the European union

Abstract: Introduction - A History of European Competition Policy - The Institutions of European Competition Policy - Restrictive Practices Policy - Monopoly Policy - Commission Decision-Making in Restrictive Practices and Monopoly Cases - Merger Policy - State Aid Policy - The 'New' Competition Policy: The Public Sector and the Utilities - Decentralising European Competition Policy - The Internationalisation of European Competition Policy - Conclusions - Guide to Further Reading - Bibliography - Index

Technological Collaboration in Industry: Strategy, Policy and Internationalization in Innovation

Abstract: 1. Technology in Industry 2. Technological Collaboration in Industry 3. Why Collaboration? 4. Theoretical Approaches to Collaboration 5. Collaboration and Innovation - the case of biotechnology 6. Collaboration and Innovation - networks, intermediaries and standards 7. Public Policy and Technological Collaboration 8. Technological Collaboration and Corporate Strategy 9. Internationalization and Technological Collaboration 10. Technological Collaboration in Japan 11. The Collaborative Technological Activities of Small Firms 12. The Management of Technological Collaboration 13. The New Challenges of Technological Collaboration.

Are the Stages of Internationalization Empirically Supportable

Abstract: How firms progress through internationalization has been of great interest to many scholars attempting to develop a theory internationalization of business firms. This paper attempts ro identify different stages internationlization and to empirically validate some of the earlier findings with extensions and implications to management and theory development.

Temporal trends in the internationalization of British retailing

Abstract: International retailing is widely recognized as a risky venture. The literature suggests that initial moves into foreign markets reflect attempts to minimize a range of perceived risks. Over time, as perceptions of risk change and experience curve factors come into play, one might expect a change of approach to foreign market investment. This paper examines the trends observed in British retail internationalization over the 1960–90 period and examines changes in the volume, nature and direction of investment. The relationship of these trends to risk reduction strategies and how they may change over time are considered. Geographical and cultural proximity, the use of specific entry mechanisms and the nature of the sector concerned are seen to be important considerations in understanding the patterns seen over time.

The internationalization process: Impact of competition and experience

Abstract: The process, or evolution, through which multinational firms have reached their present international position is often referred to as “the internationalization process of the firm.” The most widely accepted theory of this phenomenon explains this slow, and sequential process in terms of organizations’ growth and learning. It is every now and then argued that this approach has lost some of its explanatory value. The purpose of this article is to discuss the validity of this model against the backdrop of assumptions in two key dimensions, namely, firms’ experience of international business and the industry's degree of internationalization.

Technology and the wealth of nations : the dynamics of constructed advantage

Abstract: Part 1 The source of localized learning and the science-technology interface: introduction, C. Freeman what do firms learn from basic research?, K. Pavitt the dynamics of competition in a science-based technology - the case of biotechnology, L. Orsenigo technological learning, economic networks and innovation appropriability, O. Cohendet et al technological systems and economic performance - the diffusion of factory automation in Sweden, B. Carlsson and S. Jacobsson. Part 2 The models revolution - cumulative learning, irreversibility and diversity of trajectories: introduction, R. Boyer the micro-foundations of competitiveness and their macro-economic implications, F. Chiaromonte and G. Dosi toward a theory of the creation of technology as an out of equilibrium process, J-L. Gaffard a model of growth through creative destruction, P. Aghion and P. Howitt national effects of learning, international specialization and growth paths, B Amable. Part 3 Networking and convergence: introduction, D. Foray the dynamics of technological inter-relatedness - the case of information and communication technologies, C. Antonelli path dependence and predictability in dynamic systems with local network externalities, P. David variety and irreversibility in networks of technique conception and adoption. Part 4 Institutional and technological change - the importance of diversity: introduction, A. Sorge user-producer relationships, national systems of innovation and internationalization, B-A. Lundvall variation among nations in the logic of manufacturing sectors and international competitiveness, R. Hollingsworth the revival of prosperity in industrial economies - technological trajectories, organizational structure, competitivity, M. Piore studied trust - building new forms of cooperation in a volatile economy, C. Sabel work organization, technical progress and culture, S. Watanabe skill flexibility, labour market structure, training systems and competitiveness, D. Marsden conclusions, C. Freeman and L. Soete.

Coalitions and competition : the globalization of professional business services

Abstract: Globalization of professional services business and professional services- competing in a more mobile world effects of GATT rules on trade in professional services mutual recognition, regulatory competition and the globalization of professional services the globalization of services and service-intensive goods industries the internationalization of the production of services - some general and specific explanations the globalization of professional service firms - evidence from four case studies ownerships, networks and coalitions the impact of bargaining and negotiating on the globalization of professional service firms risk sharing incentive contracts - on setting compensation policy for expatriate professionals in a foreign operation co-operative strategies for professional service firms - unique opportunities and challenges patterns of international competition in service industries - global oligopolistic reaction and national competitive advantages international competitiveness and corporate strategies in the construction services sector business corporation with Eastern Europe - problems and perspectives globalization of professional business services and Eastern Europe the global expansion of Japanese financial service firms - role of domestic economic and regulatory policies globalization of banking services.

Denationalizing science : the contexts of international scientific practice

Abstract: Preface. The Nationalization and Denationalization of the Sciences: An Introductory Essay E. Crawford, T. Shinn, S. Soerlin. National and International Aspects of Cross-boundary Science: Scientific Travel in the 18th Century S. Soerlin. Antarctica: The Construction of a Continent by and for Science A. Elzinga. The International Phytogeographical Excursions, 1911-1923: Intellectual Convergence in Vegetation Science K.S. Fischedick, T. Shinn. Migration and the Denationalization of Science P. Hoch, J. Platt. From Multidisciplinary Collaboration to Transnational Objectivity: International Space as Constitutive of Molecular Biology, 1930-1970 P. Abir-Am. National Political Cultures and the Exchange of Knowledge: The Case of Systems Ecology A. Jamison. Internationalism in Soviet World-Science: The Hungarian Case G. Pallo. Some Sociohistorical Aspects of Multiinstitutional Collaborations in High Energy Physics at Cern Between 1975-1985 J. Krige. Redesigning Solomon's House: Conflicts over the Role of University in the Internationalization of Science and Business H. Etzkowitz. Index.

Cross‐Pacific internationalization of R&D by U.S. and Japanese firms

Abstract: Efforts by MNCs to develop coordinated international R&D networks have taken place from different historical bases of internationalization and in the context of differing trends in the role of R&D within the corporation, as the cross-Pacific R&D investment in leading U.S. and Japanese firms in the electronics industry shows. Japanese firms, although they espouse a strategy of ‘localization’, are establishing wholly-owned R&D centres in the U.S. with highly specialized technology mandates that to be used by the company must be networked with their parent organizations. U.S. firms rely on joint ventures or wholly-owned labs with a wider array of technologies that face strong pulls to a local orientation. The patterns are somewhat out of line with the models of internationalization each side is espousing.

Globalization, Trade, and Income

Abstract: My purpose in this paper is to address two questions that confront our discipline repeatedly these days. First, what is a useful classification of the symptoms and the determinants of 'globalization' a phase used in a remarkable variety of contexts. To economists globalization is generally thought of as the increasing internationalization of the production, distribution, and marketing of goods and services. The term is used less precisely in the popular literature, perhaps best exemplified by Kenichi Ohmae's book The Borderless World, and when used loosely it invokes a wide variety of political, sociological, environmental, and economic trends that are the concern of media attention almost daily. However one defines globalization it is surely a development that is having a profound impact on the subject of economics as a whole and ought to have on the field of international economics in particular. My second purpose is to ask how globalization is affecting our profession's view of theory and empirical work in international economics. Traditional trade theory was concerned with a set of fairly well-defined questions regarding the determinants of trade, the pattern of trade, and the welfare consequences of various trade policy instruments. The last two decades and perhaps the last decade in particular has led to a much wider interpretation of what living in an 'open economy' means. The change that is occurring on a wide range of economic, social, scientific, and

The challenge of human resource management for industrial relations research and practice

Abstract: Human resource management (HRM) is strongly associated with the rise of management power and the rediscovery of the management prerogative. In most models, however, emphasis is placed on commitment and empowerment as means of control in place of command and control systems with their Taylorist notions of work design and fragmentation. The universal explanation for the growth of the rhetoric, if not the practice, of HRM is found in the internationalization of product markets, weakened trade unions and the relative withdrawal of the State from regulating labour markets. The danger of descriptions of HRM as modern best managerial practice is that they stereotype the past and idealize the future. The distinctive feature of HRM from an industrial relations perspective is the downgrading of secondary institutions and the rise of individualism within the firm. But the focus on the single firm in isolation from its environment is seen to be misleading. Ironically, when questions are asked about why best practice ...

Big Business and the State

Abstract: The first puzzle to be addressed is why it is taking so long for the study of international relations to embrace and incorporate big business into the analysis of the international system. Not only is it 20 years since Vernon’s Sovereignty at Bay came out in America: it is 20 years or more since, with the blessing of the London School of Economics’ International Relations department under Geoffrey Goodwin, that I initiated a small graduate seminar on International Business in the International System.2 I was not even on the staff at the time, but that acorn grew into a sapling — a regular Master’s course with examinations. The only other people at the LSE who were interested in transnational corporations then were Professor Ben Roberts and some colleagues in the Industrial Relations department. Their concerns, however, were narrower and their work more directed at how labour relations with management were affected by the internationalisation of production.

Global, national and resource based strategies: an examination of strategic choice and performance in the vehicle components industry

Abstract: For an industry facing both internationalization and impending maturity, available strategic prescriptions suggest four options which are at variance with each other. To assess the validity of competing strategic prescriptions, the outcomes of these four options are examined empirically by means of a longitudinal study of the vehicle components industry. Rather than going for strategies based on market domination, large British vehicle component companies would generally have performed better had they concentrated on resource-based priorities; market domination has generally only proved feasible in national markets, and the outcomes of such strategies have proved little short of disastrous. Explanations are explored through a case study of one British national market leader and through international comparisons from Germany, the U.S.A. and Japan, which highlight the importance of manufacturing policies as primary sources of sustainable competitive advantage.

Management of Internationalization

Abstract: To view internationalization as a process has been fruitful. The propositions suggested within the stream of research based on this notion have received wide empirical support (Johanson and Vahlne, 1977, Johanson and Vahlne, 1990, Bilkey, 1978; Cavusgil, 1980, Cavusgil,1984; Dichtl et al., 1984; Denis and Depelteau, 1985; Kogut and Singh, 1986). Less effort has been spent on managerial issues of the internationalization process. This chapter has as its objective to explore some of these issues and suggest some thoughts on how they can be dealt with. We confine ourselves to discussing some aspects of entry into a foreign market, which we have cut out as a section of one of the two dimensions of the internationalization process. The entry process is a part of the development of the firm’s engagement in a particular foreign market. The entry is normally preceded and followed by other activities being integral to the internationalization process. The second dimension, the sequential entry into new markets, is not dealt with at all.

International Production: Trends, Theories, Effects

Abstract: Part 1 Agents and trends: the internationalization process - agents and conditions trends in internationalization. Part 2 Theories: Marxist approaches - classical writers on imperialism, the realization problem back in fashion, some recent Marxist approaches the neo-classical paradigm - foreign investment within the neo-classical paradigm prevalent theories - foreign direct investment and market imperfections - the Hymer and Kindleberger approach, the product life cycle and foreign direct investment, currency areas and foreign direct investment, Caves' approach, internalization as explanation for international production, Dunning's eclectic approach strategic approaches - oligopolistic reactions as explanation for foreign direct investment, transnational corporations and strategies towards labour, transnational monopoly capitalism. Part 3 Effects: methodological issues effects multinational domination of national economies.

The International Economy: A Geographical Perspective

Abstract: The International Economy from the Perspective of Economic Geography. ECONOMIC DEVELOPMENT AND NATIONAL WEALTH. Measuring Economic Development and National Wealth. Models of Economic Growth and Development. Spatial Interaction and Economic Development. INTERNATIONAL FINANCE. Currency Exchange Rates. International Portfolio Investment. International Lending and International Debt. The Location of Foreign Direct Investment and the Multinational Corporation. INTERNATIONAL TRADE. International Trade Theory. Managed Trade. Economic Development and Trade. Epilogue. Appendix. Index.

Internationalizing the Business Curriculum

Abstract: Internationalizing the business curriculum has been the subject of increased discussion and interest At the academic level, the realization of the need and the urging of accrediting bodies has brought forth internationalization efforts which vary from substantial to modest undertakings. This DaDer reDorts on a survey of business curriculum intemation'alization.&ong ~J.s. business schbk. The results show a continuation of internationalization approaches similar to those reported in earlier studies. Also, approachis with a less immediate and direct impact on the business curriculum are being adopted, including the establishment of faculty exchange programs and international business centers.

Readings in international business : a decision approach

Abstract: This collection of readings provides a solid grounding in the major practical business decisions that students and managers face in a global setting. The organization of the reader emphasizes general patterns of trade and investment flows, while examining in depth - the reasons for the internationalization of firms and the international dimension of various functional areas, including finance, accounting, marketing, and production.In six sections the readings take up changes in international ownership patterns, corporate strategy, international marketing issues, the basic financial decisions and taxation issues for a multinational firm, and political risk. Each section includes an introduction that outlines the basic ideas to be discussed, as well as questions, key terms, and suggestions for further reading.Robert Z. Aliber is Professor of International Economics and Finance at the Graduate School of Business at the University of Chicago. Reid W. Click is Assistant Professor of Economics in the Lemberg Program in International Economics and Finance at Brandeis University.

Market Concentration versus Market Diversification and Internationalization: Implications for MNE Performance

Abstract: Investigates the influence of market concentration, market diversification and internationalization strategies on the performance of multinational enterprises (MNEs). Using a sample of 450 large, medium and small MNEs, and three alternative definitions of market concentration and market diversification, results indicate that market diversification strategy produces better performance results for MNEs than market concentration strategy. In addition, MNEs using market concentration‐low internationalization strategy performed better than those using market concentration‐high internationalization strategy, and MNEs using market diversification‐low internationalization strategy performed better than those using market diversification‐high internationalization strategy. Discusses implications of the study′s findings for improved MNE performance.

Competitive Strategies of Tiawanese PC Firms in Their Internationalization Process

Abstract: Small Taiwanese firms have been successful in developing market niches internationally for their products in the fast-growing and highly competitive global information industry. To identify the competitive strategies used by these firms, a study was udnertaken which classified various stages of their internationalization processes. Results indicate that these firms established their momentum in the global marketplace either by using a regional focus combined with innovation synergy or by emphasizing a combination of marketing techniques as their strategy components.

The Internationalization Processes of Freight Transport Companies: Towards a Dynamic Network Model of Internationalization

Abstract: Internationalization of industries, international competition, and the deregulation and harmonization within the EC are some of the important factors changing the prerequisites and requirements for ...