Showing papers on "Internationalization published in 2003"

Business Relationship Learning and Commitment in the Internationalization Process

Abstract: This paper is based on a case study of an international venture and on the observations reported by a number of researchers that the received models of the internationalization process of the firm do not capture some important phenomena in the modern international business world. As several researchers argue that networks play an important role in the early internationalization the paper outlines a network model of the internationalization process of the firm. It combines the experiential learning–commitment interplay as the driving mechanism from the old internationalization process model with a similar experiential learning–commitment mechanism focusing on business network relationships. In the resulting model we can see firms learning in relationships, which enables them to enter new country markets in which they can develop new relationships which give them a platform for entering other country markets.

Internationalization and Performance: An Organizational Learning Perspective

Abstract: For over 30 years, researchers have investigated the relationship between corporate internationalization and performance. While most recent findings indicate that the link may exhibit a non-linear form, researchers disagree on the exact shape of the statistical curve. In this study, the relationship was examined through cross-sectional and longitudinal statistical analyses of data from 84 German manufacturing companies during the 5-year period 1993-1997. A standard-U form of the internationalization-performance relationship was found across all statistical techniques applied. Organizational learning appears to accompany the internationalization process of multinational corporations (MNCs).

Political hazards, experience, and sequential entry strategies: The international expansion of Japanese firms, 1980-1998

Abstract: We find support for the role of experiential learning in the international expansion process by extending the stages model of internationalization to incorporate a sophisticated consideration of temporal and cross-national variation in the credibility of the policy environment. Using a sample of 3857 international expansions of 665 Japanese manufacturing firms, we build on the concepts of uncertainty and experiential learning, to show that firms that had gathered relevant types of international experience were less sensitive to the deterring effect of uncertain policy environments on investment. One implication of our results is that research on international strategy should emphasize understanding the political institutions that constrain or enable political actors, just as entry mode research has done. A second implication is that research in the stages model of internationalization should give the same weight to the policy environment as a source of uncertainty to a firm, as it has given to cultural, social and market institutions. Copyright © 2003 John Wiley & Sons, Ltd.

Internationalization of Higher Education: Towards a Conceptual Framework

Abstract: Higher education has now become a real part of the globalization process: the cross-border matching of supply and demand. Consequently, higher education can no longer be viewed in a strictly national context. This calls for a broader definition of internationalization, which embraces the entire functioning of higher education and not merely a dimension or aspect of it, or the actions of some individuals who are part of it. This article provides a conceptual and organizational framework of internationalization of higher education, which includes a discussion on the meaning and definition of the term, a description of the various rationales for and approaches to internationalization, and an analysis of strategies of integrating international dimensions in a higher education institution.

Internationalization of universities: A university culture-based framework

Abstract: This paper employs Sporn's(1996) organizational culture typology indeveloping a framework to assist in theunderstanding of the process ofinternationalization of universities. Both thecollegial process and executive authority areacknowledged as necessary to position theuniversity to bring about substantive,integrated, university-wideinternationalization in response to pervasiveand rapidly changing global environmentaldemands. Internationalization, viewed as anorganizational adaptation, requires itsarticulation by the leadership whilesimultaneously institutionalizing a strategicplanning process that is representative andparticipative in that it recognizes andutilizes the power of the culture within whichit occurs. The orientation and strength of theuniversity culture and the functioningstructure can be inhibiting or facilitating ofthe strategies employed to advanceinternationalization. Two examples arejuxtaposed to illustrate the range ofcircumstances confronting universities in acomplex and dynamic external environment andtheir responses with respect tointernationalization. Drawing from theseexamples, discussion centers on the alignmentof internal culture with theinternationalization objectives and strategiesselected by the institution in order to enhanceeffectiveness of outcomes. It is concludedthat the framework provided helps to understandthe different approaches tointernationalization and may be helpful fromboth a managerial and research perspective.

Innovative Internationalisation in New firms : Born Globals–the Swedish Case

Abstract: During the past few years, the phenomenon of Born Globals has been highlighted in many studies. Such firms adopt a global approach right from their inception or very shortly thereafter. This behavi ...

Institutional Ownership Differences and International Diversification: The Effects of Boards of Directors and Technological Opportunity

Abstract: We examined the roles of institutional investors, boards of directors, and technological opportunity in relation to international diversification. Our research contributes to both agency and foreign direct investment theories. In data on 197 large U.S. firms, we found significant relationships between institutional ownership and international diversification. International diversification was favored by (1) professional investment funds along with outside board members and (2) pension funds along with inside board members. Also, pension funds' long-term orientation facilitated internationalization in industries with high technological opportunities. The results suggest that different institutional owners have different stakes in firms' international strategies, and the effects of boards of directors and technological opportunity accentuate these differences.

Globalization, the welfare state and right-wing populism in Western Europe

Abstract: We outline and test the argument that globalization contributes to the electoral success of the new far right in Western Europe. We also draw on the theory of embedded liberalism to advance and test the hypothesis that a comprehensive, generous and employment-orientated system of social protection lessens the economic insecurities attendant to internationalization and, in turn, weakens support for far-right parties. In empirical analysis of national elections in 16 European polities from 1981 to 1998, we find that the universal welfare state directly depresses the vote for radical right-wing populist parties and conditions the linkages between capital mobility, trade openness and foreign immigration on the one hand and electoral support for the new far right on the other. In conclusion, we consider our findings’ implications for understanding the domestic political effects of globalization and sources of right-wing populism as well as for policy reforms that promote political economic stability in an era of international integration.

The Relative Impact of Country of Origin and Universal Contingencies on Internationalization Strategies and Corporate Control in Multinational Enterprises: Worldwide and European Perspectives:

Abstract: We examine the importance of country-of-origin effects and of universal contingencies such as industrial recipes in organizational practices at the international level of multinational enterprises. This is based on a study comparing European (Finnish, French, German, Dutch, Swiss, Swedish, British), American and Japanese multinational enterprises. Although multinationals are highly internationalized by definition, our study shows their organizational control practices at the international level to be more than anything else explained by their country of origin. Universal contingencies such as size and industry, on the other hand, are more related to internationalization strategy. Internationalization strategy and organizational control are associated with different sets of variables; to this extent they appear more de-coupled with regard to each other than the literature suggests. Multinationals appear to follow tracks of coordination and control in which they have become embedded in their country of orig...

Profitability of small- and medium-sized enterprises in high-tech industries: the case of the biotechnology industry

Abstract: This paper investigates the profitability determinants of small- and medium-sized enterprises in high-tech industries. Literature review suggests that innovator position, market awareness, niche operation, and internationalization should have positive impacts on SMTEs' profitability. However, the empirical results partially agree with, and partially dissent from, the propositions. Copyright © 2003 John Wiley & Sons, Ltd.

Policy uncertainty and the sequence of entry by Japanese firms, 1980–1998

Abstract: We extend the stages model of internationalization to incorporate a sophisticated consideration of temporal and cross-national variation in the uncertainty of the policy environment. Using a sample of 6465 international expansions of 665 Japanese manufacturing firms in 49 countries, we develop arguments from internationalization and bargaining power perspectives to show how Japanese firms manage policy uncertainty in host country environments through the within-country sequencing of investments. Although a distribution to manufacturing entry sequence tends to prevail in countries with low levels of policy uncertainty, as uncertainty in the policy environment increases, initial entry by distribution is increasingly likely to be eschewed in favor of an initial entry by a joint venture manufacturing plant. We suggest that this change in investment sequence occurs as firms shift from an emphasis on developing knowledge about local markets and consumers in low-hazards markets to an international expansion strategy in uncertain policy environments that places knowledge development of the policy environment at the forefront of a firm's strategy.

Global Marketing: A Decision-Oriented Approach

Abstract: Preface to the fourth edition Guided tour of the book Acknowledgements Publisher's acknowledgements Abbreviations E-marketing terminology About the author PART I THE DECISION WHETHER TO INTERNATIONALIZE 1 Global marketing in the firm 2 Initiation of internalization 3 Internationalization theories 4 Development of the firm's international competitiveness Part I Case studies PART II DECIDING WHICH MARKETS TO ENTER 5 Global marketing research 6 The political and economic environment 7 The sociocultural environment 8 The international market selection process Part II Case studies PART III MARKET ENTRY STRATEGIES 9 Some approaches to the choice of entry mode 10 Export modes 11 Intermediate entry modes 12 Hierarchical modes 13 International sourcing decisions and the role of the subsupplier Part III Case studies PART IV DESIGNING THE GLOBAL MARKETING PROGRAMME 14 Product designs 15 Pricing decisions and terms of doing business 16 Distribution decisions 17 Communication decisions (promotion strategies) Part IV Case studies PART V IMPLEMENTING AND COORDINATING THE GLOBAL MARKETING PROGRAMME 18 Cross-cultural sales negotiations 19 Organization and control of the global marketing programme Part V Case studies Index EXCLUSIVE TO THE WEB: 20 Global e-marketing

An empirical examination of factors influencing the internationalization of service firms

Abstract: The internationalization of service firms is expanding dramatically, fueled by recent technological innovations and reductions of trade barriers. Drawing upon Dunning’s eclectic theory, firm‐ and location‐specific factors which have been found to be antecedents of internationalization of manufacturing firms are extended to determine their applicability to the internationalization of service firms. The hypotheses are empirically examined through a survey of 228 business‐to‐business service firms. Findings indicate that the firm‐specific factor of firm size and the location‐specific factor of market characteristics influence management attitudes toward operating internationally, which in turn influence the degree of internationalization of service firms. Practical implications, drawn from the results, are offered for managers of service firms who are facing the task of internationalizing.

Inter-Firm Collaboration, Learning and Networks: An Integrated Approach

Abstract: 1. Introduction 1.1 Aims and scope 1.1.1 Questions 1.1.2 Scope 1.1.3 Disciplines 1.2 Concepts and theory 1.2.1 Competence 1.2.2 Knowledge 1.2.3 Decision heuristics 1.2.4 Organization 1.2.5 Institutions 1.2.6 Complementary cognition 1.2.7 Tacit knowledge, absorptive capacity and firm size 1.2.8 Knowledge transfer to small firms 1.2.9 Governance 1.3 Advanced 1.3.1 Cognitive distance 1.3.2 Empirical tests 1.3.5 Evolutionary psychology 1.3.6 Institutions and evolution 1.3.7 Methodological interactionism 1.3.8 Incommensurability 2. Goals 2.1 Goals 2.1.1 Efficiency 2.1.2 Competence 2.1.3 Positioning 2.1.4 Performance 2.2 Concepts and theory 2.2.1 Economies of scale and scope 2.2.2 Economies of time 2.2.3 Innovation 2.2.4 Learning, exploration and exploitation 2.2.5 Communities of practice 2.2.6 Internationalization 2.3 Advanced 2.3.1 Threshold costs 2.3.2 Cycle of discovery 2.3.3 Leaning by internationalization 3. Structure 3.1 Forms 3.1.1 Structure 3.1.2 Ties 3.1.3 Concentration of ownership and control 3.1.4 Cobwebs 3.2 Choice 3.2.1 MA or alliance? 3.2.2 Bad reasons 3.2.3 Joint ventures 3.2.4 Network structure 3.2.5 Licensing 3.2.6 Structures of buyer-supplier relations 3.2.7 External corporate venturing 3.3 Concepts and theory 3.3.1 Third parties 3.3.2 The revelation problem 3.4 Advanced 3.4.1 Location 4. Governance 4.1 Risk analysis 4.1.1 Governance 4.1.2 Relational risk 4.1.3 An audit of hold-up risk 4.1.4 Network effects 4.2 Instruments 4.2.1 Risk control 4.2.2 Strategic orientations 4.2.3 Instruments 4.2.4 Contingencies 4.3 Concepts and theory 4.3.1 Trust 4.3.2 Go-betweens 4.3.3 Hostages 4.4 Advanced 4.4.1 Detailed risk audit 4.4.1.1 Value 4.4.1.2 Switching costs 4.4.1.3 Room for opportunism 4.4.1.4 Intent towards opportunism 4.4.1.5 Overall system 4.4.2 Detailed choice 4.4.2.1 Conditions 4.4.2.2 Problems of governance 4.4.2.3 Examples 4.4.3 Empirical tests 5. Process 5.1 Stages of relations 5.1.1. Beginning 5.1.2. Management 5.1.3. Adaptation 5.1.4. The end 5.2 Networks for exploration and exploitation 5.2.1 Networks for exploration: the competence side 5.2.2 Networks for exploration: the governance side 5.2.3 Networks for exploitation 5.2.4 Contingencies 5.2.5 Conclusion 5.2.6 Empirical evidence 5.2.6.1 Multimedia 5.2.6.2 Biotechnology 5.2.7 Development of clusters 5.2.8 Development of MNC's 5.2.9 Keiretsu5.3 Advanced 5.3.1 Opening game 5.3.2 Closing game 5.3.3 Generic forms of outsourcing 6. Summary and Conclusions 6.1 Integrated theory 6.2 Dyads and networks 6.3 Goals of collaboration 6.4 Forms of collaboration 6.5 Governance 6.6 Process 6.7 Further research

The power of the Buckley and Casson thesis: the ability to manage institutional idiosyncrasies

Abstract: Recent patterns of rapid internationalization in sectors characterized by strong public interest and both government and domestic capital constraints seem, at first, inconsistent with the drivers of internationalization identified by Buckley and Casson (1976) for manufacturing industries in the postwar era. A more microanalytic perspective, however, identifies the ability to manage institutional idiosyncrasies as a firm-level capability akin to research or advertising that can drive internalization across national borders and thereby internationalization. These arguments are examined using evidence from the independent power production sector.

Internationalization and Entry Modes: A Multitheoretical Framework and Research Propositions

Abstract: Although several aspects of the internationalization process have been addressed in the literature, there is a lack of a unified theoretical framework that explains the internationalization process, entry modes, and timing strategies. This article synthesizes several foundational theories on modes of global entry and offers a conceptual framework of the internationalization process. Throughout the article, the authors identify several propositions based on the proposed theoretical framework.

Internationalization and Performance: Findings from a Set of Italian SMEs

Abstract: This article starts from the premise that in an increasingly integrated market all enterprises are in effect international; whether or not firms' activities extend beyond national borders, the envi...

The third wave: future trends in international education

Abstract: Describes how the second half of the twentieth century saw the development of a global market in international education. Following the Second World War, the flow of international students undertaking courses at all levels grew rapidly as developing countries sought to educate their populations. By the century’s end, there were an estimated 1.5 million students studying internationally at the HE level. Driving this market expansion was a combination of forces that both pushed the students from their countries of origin and simultaneously pulled them toward certain host nations. By the 1990s, the HE systems of many host nations (e.g. Australia, Canada, the USA, the UK and New Zealand) had become more market focused and institutions were adopting professional marketing strategies to recruit students into fee‐paying programs. For many education institutions such fees had become a critical source of financing. Suggests that the international education industry, HE administrators and managers and academic staff face very significant challenges in the next few years.

The End of Diversity?: Prospects for German and Japanese Capitalism

Abstract: After the devastation of World War II, Germany and Japan built national capitalist institutions that were remarkably successful in terms of national reconstruction and international competitiveness. Yet both "miracles" have since faltered, allowing U.S. capital and its institutional forms to establish global dominance. National varieties of capitalism are now under intense pressure to converge to the U.S. model. Kozo Yamamura and Wolfgang Streeck have gathered an international group of authors to examine the likelihood of convergence—to determine whether the global forces of Anglo-American capitalism will give rise to a single, homogeneous capitalist system. The chapters in this volume approach this question from five directions: international integration, technological innovation, labor relations and production systems, financial regimes and corporate governance, and domestic politics. In their introduction, Yamamura and Streeck summarize the crises of performance and confidence that have beset German and Japanese capitalism and revived the question of competitive convergence. The editors ask whether the two countries, confronted with the political and economic exigencies of technological revolution and economic internationalization, must abandon their distinctive institutions and the competitive advantages these have yielded in the past, or whether they can adapt and retain such institutions, thereby preserving the social cohesion and economic competitiveness of their societies.

Academic Standards, Internationalisation, and the Discursive Construction of "The International Student"

Abstract: The release in early 2001 of a study of Australian social science academics perceptions of the impact of commercialisation on academic freedom (Kayrooz, Kinnear & Preston, 2001) led to sustained public debate over the issue of academic standards and the internationalisation of higher education in Australia. This debate gave expression to growing disaffection amongst Australian academics with the pressures for increased com mercialisation and entrepreneurialism in their work. In this paper I use the tools provided through the work of Michel Foucault to critically examine the terms of the debate as it was conducted in the public arena. The purpose of this analysis is to explore the ways in which international students were represented in the discourses of academic standards, and the conflation of the alleged decline in academic standards with the internationalisation of higher education, and in particular, with the presence of international students on Australian campuses.

Failure in international retailing: research propositions

Abstract: Whilst retail internationalization practice has a long history, academic research into retail internationalization is a more recent phenomenon. We argue in this paper that our continuing conceptualization of retail internationalization would be aided by incorporating aspects of failure in international retailing. In internationalization practice, failure would seem to be a common occurrence, whereas in academia, such failure has been almost routinely ignored. Here, we attempt to define and conceptualize failure in international retailing. We then put forward a series of propositions that might serve as a guide to future research on failure in retail internationalization.

Knowledge Gaps: The Case of Knowledge about Foreign Entry

Abstract: The study explores what factors influence the reduction of managers’ perceived knowledge gaps in the context of the environments of foreign markets. Potential determinants are derived from traditional internationalization theory as well as organizational learning theory, including the concept of absorptive capacity. Building on these literature streams a conceptual model is developed and tested on a set of primary data of Danish firms and their foreign market operations. The empirical study suggests that the factors that pertain to the absorptive capacity concept – capabilities of recognizing, assimilating, and utilizing knowledge are crucial determinants of knowledge gap elimination. In contrast, the two factors deemed essential in traditional internationalization process theory – elapsed time of operations and experiential learning – are found to have no or limited effect.

Policy and Practice of the Internationalization of Higher Education in China

Abstract: Directly motivated by the open-door policy, economic reforms and challenges from globalization and worldwide competition, as well as efforts to realize massification of higher education since 1978, the internationalization of higher education in China has experienced a change from activities concerning traditional outflows of international scholars, faculty members, and students before 1992 to those relating to trans-national higher education and internationalization of curricula. During the process, academic patterns from Europe, Asia, and the Pacific region as well as from America have significantly affected Chinese higher education. Internationalization has never been a one-way process; rather it comprises attempts to realize mutual communication or exchange, largely oriented and regulated by the government. The problem of increasing outflow of personnel abroad, the “brain drain,” as well as the ability to benefit from transnational education while also maintaininga national character remain key issues...

Network Resources for Internationalization: The Case of Taiwan's Electronics Firms*

Abstract: This paper illustrates foreign direct investment (FDI) as the management of important network relations, using Taiwan's electronics firms as an example. Through FDI, seemingly small and weak firms propel the process of internationalization by making maximum use of external resources to which they have access. FDI often starts at a location close to the home base where support from the domestic networks can be drawn, subsequently moving on to more distant locations after investors have accumulated new network resources. The location chosen is usually an area rich in network resources or in close proximity to such rich networks. FDI enables the investors to construct a regional, or even global, sub- network under their control to supply a set of wide-ranging, differentiated and low- cost products in a flexible fashion, and sometimes within close proximity to the markets. With this capacity for versatility, investors become valuable partners for multinational firms that offer global services.

Working Across Borders: Multinational Enterprises and the Internationalization of Employment

Abstract: textMultinational enterprises (MNEs) are often held responsible for the ‘relocation of production’ and ‘exporting jobs’ to, often low-wage, countries at the expense of domestic jobs. Additionally, host country governments – in particular in developing countries - often perceive international production by MNEs as the panacea for generating employment and economic growth. What is the spatial organization of production and employment of MNEs? What are the employment effects of changes in the geography of international strategy? Have MNEs increasingly integrated production across borders with a regional division of labor and, what are the employment effects?This thesis demonstrates that the geography of a MNE’s internationalization strategy as well as the stage of its internationalization process influences employment in both home and host countries. Competition among workers within macro regions in industrialized countries (e.g. the EU) and among low wage countries or regions is often greater than between high and low wage countries. The employment effects of internationalizing firms are often intertwined with processes of regional integration as well as with the herding and strategic behavior of MNEs.

Emerging Asian MNEs and Their Internationalization Strategies—Case Study Evidence on Taiwanese and Singaporean Firms

Abstract: There is as yet limited empirical research on the internationalization processes, strategies and operations of Asian MNEs. Drawing on primary data from 12 case studies of emerging Taiwanese and Singaporean MNEs in the textile and electronics industries, this paper examines and analyses their internationalization characteristics and strategies, including motivations, patterns and sources of competitive advantage. The findings indicate that the emerging Taiwanese and Singaporean MNEs, while exhibiting characteristics such as that described in extant theories also suggest some differences. The empirical findings, limitations and areas for further research are discussed.