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Global strategic management: Impact on the new frontiers of strategy research

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... The surge of globalisation, which has attracted these corporate to global market forces, has been further strengthened by the internal restructuring of major corporate in an industry where external globalisation forces were not as strong. One reason for globalisation, instead of treating foreign markets as separate and different from others, was the strategic approach in which businesses conducted their global activities as interdependent organizations driven by their unified multinational policy [6]. ...
... They also noted that most businesses would need higher-quality global leaders in the future [3]. The fact that the global business environment has changed drastically also is recognized by Bartlett and Ghoshal [6]. Although they suggest that a single global leader is not the key to growth, but rather a network of highly qualified world leaders, it is important and essential to improving their competences. ...
... McCall and Hollenbeck (2002) agree that there is not a single type of global leader, with Bartlett and Ghoshal [6], but a large number of types and resolve that a global leader needs to cross over the boundaries between countries and cultures. Leader's approach to crossing country and cultural boundaries improves the identification of problems and calls for a change of his image, to better understand who he is [1]. ...
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This research explores competences that are essential for global leaders, i.e. expertise, skills, abilities and personalities. The aim is to discover a general set of competences that are very common in both literature and practice but exceedingly vital to be efficient global leaders. Another objective is to identify the most successful methods of development for the competences identified. The theoretical aspect of this research provides an outline of the literature on the topic and directions to an outstanding framework of competences relevant to global leaders from different researchers' perspectives. The most successful approaches for improving these competences are also identified. The experimental section, which is the standard study of the research, is based on a review of the literature. The research findings are compared with the findings of the literature review to create a set of competences for global leaders by semi-structured interviews with global business leaders. The key findings of this research indicate that personality traits are the most important attribute among global leaders and they are deep into the core of an individual. The most important competences for global leaders are therefore also those that are most difficult to change. Increased life-changing development experience is required to affect such competences.
... As one seen previously the global integration of the transaction seeks to build networks operating efficiently, getting the maximum benefits through the similarity between manufacturing plants and major customers (BARTLETT; GHOSHAL, 1991). On the other hand, local responsiveness means a specific and quick answer to the needs of clients in their various host countries (LUO, 2001). ...
... , 1985). When a firm faces a complex environment, it faces major difficulties in taking strategic decisions and organizing their productive resources (BARTLETT; GHOSHAL, 1991). Correspondingly, the degree of global integration is generally low in a heterogeneous environment (BARTLETT, GHOSHAL, 1987). ...
... Market guidance (local x export market) increasingly served as an organizational system that balances global integration and local responsiveness (PRAHALAD, DOZ, 1987). This is also an effective tool to adjust the vulnerability of a subsidiary to contextual hazards, enabling the maintenance of their strategic goals (BARTLETT, GHOSHAL, 1991). Manipulating the market guidance, a multi-domestic company can better monitor their foreign operations and maintain organizational control over its subsidiaries into an integrated chain. ...
... Coming back to the global strategy it is needed to mention that according to the literature regarding global strategy is mainly dominated by the industrial organization (IO) perspective (Bartlett and Ghoshal, 1991). While the IO approach has enriched understanding of the external market and industry forces which drive globalization, it generally has neglected a business's idiosyncratic internal characteristics (Bartlett and Ghoshal, 1991). ...
... Coming back to the global strategy it is needed to mention that according to the literature regarding global strategy is mainly dominated by the industrial organization (IO) perspective (Bartlett and Ghoshal, 1991). While the IO approach has enriched understanding of the external market and industry forces which drive globalization, it generally has neglected a business's idiosyncratic internal characteristics (Bartlett and Ghoshal, 1991). It means that business performance is not solely determined by global strategy and that internal organizational characteristics also play an important role. ...
Article
This is largely due to the substantial range of networking and interconnectivity brought on by the positive surge of development in global trade that enables companies to expand their business overseas and reach out to more than just domestic markets scene. The ASEAN Economic Community 2015 is a challenge to make a single barrier free market all through of the 10 (ten) member countries, devoid of barriers its services, capital, and allowing goods, and skilled labor to move freely across borders. ASEAN Member States are agreed to implementing UNECE Wp. 29 for to be a basis harmonization automotive technical regulation in ASEAN region. The purpose of this thesis is to measure a correlation between UNECE International Automotive Standard and The Indonesia Automotive Industry (expected) performance. As a result it has been concluded that correlations between UNECE International Automotive Standard and Indonesia Automotive Industry performance does exists. Implementing UNECE International Standard bring technologies, economic and social benefits into the country and the manufacturing and it will helps to contribute an improvement in Automotive Industry in Indonesia. Process documentation and control is the major influence towards improving the performance of Automotive Industry in Indonesia and Supplier Related Benefits is the factor that gives a significant influence for improvement Indonesia Automotive Industry performance. Keywords : AEC 2015, UNECE International Automotive Standard, ASEAN MRA, Indonesia Automotive Industry.
... The marketplace defines a range of products but ultimately chooses how to govern them, setting a free global strategy. The first system level will be how firms think about amity, precautions, risk, novelty, and go-to-market (Bartlett & Ghoshal, 1991). This is especially important for multinational companies (MNCs) operating in multiple countries to master these different governance systems that will allow them the tools to create successful global strategies. ...
Article
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This paper examines the comparative aspect of rule-based and principle-based governance systems on global business strategy. Rule-based systems that are detailed and prescriptive can be clear to all, yet inflexible-whether due in part, I would presume (sic), as well as rule-bounded societal culture influences. By contrast, principle-based systems found in areas like the EU and the U.K. provide more flexibility by defining business requirements as broad ethical policies that organizations must interpret themselves to implement for their specific circumstances. However, it comes with many interpretation challenges, sometimes making it troublesome or confusing. This paper uses case studies of companies in the tech and financial sectors to explore how firms operate within these regulatory frameworks, mainly when regulating technologically novel offerings (Bartlett & Ghoshal, 1991). Businesses must balance compliance with nimbleness and design a governance strategy that can live in both regulatory worlds based on actionable research highlighting key findings. The impact of culture on governance systems cannot be understated, which is why local knowledge and partnerships are essential for the achievement of success. The authors provide implications for business leaders, inspire further research on hybrid governance models, and draw attention to the impact of technological innovation on global regulatory frameworks.
... 2. Overview of the study 2.1 Relevance of the MEA region Foreign direct investment remains a critical strategy for companies seeking to expand their operations and capitalize on emerging market potentialities (Bartlett and Ghoshal, 1991). Companies engage in foreign investments for several reasons, for example, accessing new markets, diversifying risks, obtaining strategic assets and capitalizing on cost advantages (Dunning, 1993). ...
Article
Purpose This paper aims to unveil the darker side of cryptocurrencies by delving into its role as an obstacle to investments in Middle East and African (MEAs) countries, unravelling the challenges involved. Indeed, despite the rise of blockchain-related technologies, specifically cryptocurrencies, having undeniably unlocked new avenues for business and society, crypto for venture funding purposes may exhibit a “dark side” due to their use for unethical purposes, for example, money laundering or terrorism financing, largely diffused in certain areas of MEA countries. Design/methodology/approach Through an explorative research design, using a mix of techniques based on both qualitative and interpretive methods, we conducted in-depth interviews among 33 European managers of companies engaged in MEA markets or aspiring to invest in such foreign markets, to analyse their thoughts, perceptions and possible strategies concerning the management of the “dark side” of cryptocurrencies in MEAs. Findings Our investigation unearthed seven pivotal issues, which manifest as significant barriers related to the ambivalent use of crypto for funding projects, encompassing seven important consequential elements: (1) lack of knowledge about the technology’s potentialities; (2) perceptions of crypto technology’s ambivalence; (3) reputation and image consequences; (4) uncertainty about the destination of the invested funds; (5) decreased attractiveness of MEAs; (6) competition and market; and (7) lack of control and regulation. We grouped these into technology-related, business-related and legal- and policy-related barriers. Such findings underline the probable decrease in attractiveness of MEAs in terms of investments, together with the triggering factors and potential strategic solutions to mitigate such circumstances. Research limitations/implications Future studies could explore a broader sample of managers since we only considered the perception of European managers operating in companies that invest (or are intending to invest) in MEAs. Moreover, future research may extend the analysis to MEA-native companies or those engaging in reciprocal exchanges with Western countries. Practical implications Practically, our findings suggest several elements in which to intervene to mitigate managers’ negative perception of the unethical use of cryptocurrencies in MEAs and to support CEOs’ and CFOs’ strategies, together with requirements to ensure the unaltered attractiveness of investments in an otherwise thriving region of the world, without overlooking the protection and safeguarding of investments and the health of the market and competition. Furthermore, a call for future research in this domain, along with at least minimal regulatory mechanisms, clearly emerges. Social implications Our findings underline the social challenges associated with the perception and acceptance of cryptocurrencies in these contexts, influencing cultural and social dynamics. Moreover, the identification of these barriers could underscore the significance of awareness of and education on blockchain technology and cryptocurrencies within society, including implications for policymakers. Originality/value Despite prior investigations into the negative effects of cryptocurrencies as a form of venture funding, no studies to date have examined managers’ perceptions by focusing on possible barriers to investment in MEA countries due to the unethical usage of crypto. Importantly, this paper unravels the unexplored complexities of crypto’s impact on ethical investments in MEAs, showcasing an original perspective.
... Low cost, differentiation, and niche strategies are identified, plus strategies suggested by other writers, including technology optimization and innovation and business network collaborations (Varadarajan & Jayachandran, 1999). Consequently, Bartlett and Ghoshal (1991) noted that numerous methods are regularly integrated by businesses. Strategy and structure alignment, or match, is considered a basic organizational success prerequisite, including both financial (e.g., sales, benefit, and ROI) and non-financial (e.g., consumer loyalty and market share) evaluations (Galbraith & Kazanjian, 1986). ...
Article
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Warehousing policy framework as a business enabler has led to the growth of proficient warehouses as it facilitates firms to collaborate and compete. It provides a criterion for the specific needs of the food and beverages sector to synchronize materials, plan and manage capacities. While practitioners are recommending improvement in warehousing policy framework to enhance performance, there is no standard topology for these for various industries. Thus, presenting a gap to explore the warehousing requirements, procedures and documentations that are necessary for a dynamic food and beverages sector. Therefore, the major purpose of this study was to examine the moderating role of warehousing policy framework in the relationship between warehousing operations and supply chain performance of food and beverages processing firms in Kenya. The study adopted a mixed research design with both qualitative and quantitative approaches. The target population of the study was the 134 food and beverages manufacturing firms in Nairobi County. A sampling frame of this study included a list of the 134 manufacturing companies in Nairobi County that are members of the Kenya Association of Manufacturers. The study utilized simple random sampling. A sample size of 100 was selected with the aid of Yamane 1967 formula. Both primary and secondary data was collected using a questionnaire. The questionnaire was tested pilot at 10 food and beverages manufacturing companies in Kiambu county. These pilot study questionnaires were filled out by warehouse managers. The statistical package for social sciences (SPSS) version 25 was used to analyze the data. Using content analysis, the qualitative data was analyzed. Quantitative data was analyzed using statistical methods involving descriptive and inferential data. A multiple linear regression model was applied to analyze the relationship between the variables. Analysis was also performed on the correlation. In this study, the findings were presented using tables and graphs. Data presentation made use of percentages, frequencies, means and other means of central tendencies. The study revealed that majority of the food and beverages manufacturing firms in Kenya prioritized space optimization, maintaining adequate aisle space, and executing warehouse maintenance under regulatory restrictions. However, many these did not automate or mechanize warehouse workflow, suggesting the need for automation and mechanization technology to improve production and efficiency.
... In this paper, from a view of university service management, the authors investigate how competitive advantages are obtained via maximising the internal resources while exploiting external resources. When an organisation competes in its external business environment, its internal competencies and resources influence its strategic decisions (Bartlett and Ghoshal, 1991). The research by Hilman and Abubakar (2019) reveals that organisational strategy, structure, and talent management significantly and positively affect university performance. ...
... Por consequências do desenvolvimento econômico e dos avanços sociais, passou-se a cobrar mais respaldo científico das atuações e das repostas organizacionais. Tais demandas cobraram da teoria das organizações uma significação mais complexa de organização, como um agente estrutural coletivo que desempenha suas atividades com o intuito de desenvolver e de criar soluções orientadas para o mercado (Bartlett & Ghoshal, 1991;Dunning, 1993;Parker, 2009). Com o passar do tempo, além de desvendar cotidianamente os intervalos estabelecidos entre aspectos técnicos e operacionais, trabalho mecânico e criativo, gestão burocrática e estratégica, coube à organização reconhecer e lidar com os egos nela instalados, cujos impactos transcendiam seus limites físicos. ...
Article
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O ensino em Administração é tecnocrático e cúmplice de imposições capitalistas que alienam os indivíduos conforme desígnios do mercado. O esquivo a uma formação humanista, reflexiva e crítica prejudica a constituição de uma compreensão em relação a uma realidade que é socialmente construída a partir de uma capacidade de agência silenciada. O objetivo deste estudo teórico é abordar o conhecimento como meio de microemancipação perante as formas de alienação que permeiam a sociedade e a formação dos administradores. Propõe-se que o conceito de microemancipação, por intermédio da razão crítica, ilumine a consciência do administrador quanto à s consequências de suas intervenções socioeconômicas.
... Theoretical constructions of international strategies from several OFDIs in different countries and times, using the[2] Bartlett & Ghoshal's model(1991). ...
Article
This paper aims to see the impact of the global economic shift on the pattern of outward foreign direct investment. It was conducted by the literature study method, by comparing a number of countries over different time periods. The results of the study show that the pattern of outward foreign direct investment is strongly influenced by the level of global integration pressure and local pressure responsiveness level. The results fit with Bartlett & Ghoshal's model of international business. It also shows that the pressure of global integration and local responsiveness tend to increase over time. There are 3 factors that need to be considered in this condition, namely: customization, competence and arbitrage. However, these results are obtained from very few case studies. In the future this study needs to be elaborated further by using more samples.
... This theory examines the principal-agent relationship wherein the principal entrusts the agent and performs tasks on behalf of the principal (de Jong et al. 2015;Hoenen and Kostova 2015). Differences exist in cross-border conditions and substantial complexity, and inherent tensions and conflicts occur between HQ and subsidiaries (Bartlett and Ghoshal 1991;Cavanagh et al. 2017). When subsidiaries possess more abundant resources, their importance within an MNC has significantly increased. ...
Article
Previous research has confirmed the overall positive relationship between subsidiary autonomy and performance. However, given the lack of consensus regarding the effect of subsidiary autonomy on performance, contingency is required to understand complex linkages and possible causality in both developed and emerging economies. This study adopts the agency theory and entrepreneurship to address the interplay among subsidiary autonomy, entrepreneurship, and performance in the emerging economy of China. The empirical results indicate that renewal entrepreneurship has a positive moderating effect and venturing entrepreneurship has an inverted U-shaped moderating effect on the positive relationship between subsidiary autonomy and performance. This study extends the research context and contributes to the literature on agency theory and entrepreneurship in the multinational corporation.
... Chan-Olmsted & Chang, 2003) which may enable change-but rather identify and examine external forces that may affect their scope of action on the international marketplace, i.e. forcing change. Such external factors are related to the market, the policy and the culture of the host country (Cottle, 2003;Gershon, 2000) and include different economic, technological, industrial, societal and political characteristics (Andrews, 1971), as well as factors concerning management practice and culture that shape strategy processes (Bartlett & Ghoshal, 1991). ...
Chapter
The media industry is and has always been characterised by structural changes to such an extent that change has become the only constant in the media environment. Although there are few studies dealing with change management in the media industry, the transformative nature of media markets in relation to the digitisation processes has been under-researched, especially by transnational media management, so far. In this chapter we therefore investigate the impact of the digitisation process on three different levels: namely, on the media market, the media company and on the strategy level. This way, we are able to show on the one side lessons learned and (future) challenges for change management in the media industry, as well as on the other side how media markets and companies are not only subjected to these changes but are also their active (co-)creators, in the sense of a recursive relationship.
... It follows that a global strategy consists in achieving global efficiency at the lowest cost level. Bartlett and Ghoshal (1991) also consider the role of national flexibility, while Yip (1989;2003) similarly asserts that companies must react to external strengths and move toward globalisation by implementing global strategies. According to Porter (1986), a global strategy sees a company selling its products over many countries and adopting a globally integrated strategic approach with a high degree of coordination in the value chain activities. ...
... More and more of the cross-border activities in the world were taking place as internal transactions in large multinational firms (Hymer, 1976). As these MNEs expanded their network of subsidiaries around the globe, their organizational structure served as platforms for the transfer of goods, services, knowledge and human capital (see Bartlett & Ghoshal, 1991 for a comprehensive review of the early literature on global strategy). ...
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RESEARCH SUMMARY We contend that a synthesis between the literatures on global strategy and global value chains (GVCs) is mutually beneficial. A typology of four themes—managed cross‐border activities, network optimization, bottom‐up upgrading, and strategic coevolution—illustrates the underlying concepts and mechanisms that these two approaches share in common. Our integrative typology provides an analytical framework to understand the interplay between the statics of GVC governance and the dynamics of firm strategy. Firm‐level actions are a key factor in effective GVC‐level policy making, and our framework provides a roadmap to analyze how major disruptions, such as digitalization and pandemics, affect the symbiotic relationships between GVCs and firm strategy. MANAGERIAL SUMMARY While the global strategy literature has underplayed the interdependence among firms and other actors in global value chains (GVCs) and highlighted the scope for firm agency, the GVC literature limits the attention to firm strategies per se but puts more emphasis on the governance structure of global industries. In their strategic decision making, managers must take into consideration how firms are positioned along the value chain in terms of four themes: managed cross‐border activities; network optimization; bottom‐up upgrading; and strategic coevolution. Integrating the GVC view adds a further impetus to global strategy beyond the analysis of intra‐firm determinants. Conversely, integrating global strategy into GVC analysis entails a more dynamic view on behaviors of different actors in the value chain. Understanding these interactions enable managers and policy makers to better incorporate how changes and disruptions affect firm strategies within the governance of GVCs. This article is protected by copyright. All rights reserved.
... Y ha provocado una crítica continua de la comunidad académica respecto a su existencia como disciplina separada de la Gestión Estratégica (Strategic Management, en inglés) (Buckley et al., 2017;Ghauri y Santangelo, 2012;Melin, 1992;Morgan y Katsikeas, 1997). Porque autores como Bartlett y Ghoshal (1991), Porter (1986), Ghoshal (1987), Melin (1992) o Hoffman y Gopinhat (1994) ya habían incorporado las ventajas de la internacionalización a sus trabajos sobre la estrategia competitiva de las empresas. ...
Thesis
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Los operadores de telecomunicaciones (OTs) han sido protagonistas del fenómeno de la globalización de la economía mundial durante las últimas décadas. Por ello, la gestión de su internacionalización ha sido una palanca esencial en sus estrategias competitivas. Pero la disrupción tecnológica provocada por la digitalización e internet y el impacto de la Crisis Financiera Global (CFG) de 2008 modificaron la dinámica competitiva de una industria, las Telecomunicaciones, que se extendió a los Medios y la Tecnología (industria TMT). Diez años después, la posición financiera y competitiva de los operadores europeos era mucho más débil que la de sus competidores estadounidenses. Al mismo tiempo, la presencia internacional de estos últimos seguía siendo casi nula, lo que contrastaba con la significativa presencia que mantenían fuera de Europa los primeros. Este estudio identifica y analiza los factores que han motivado esas diferencias para comprender cómo y por qué se han producido. Para ello, se realizó un estudio comparativo de casos sobre cómo 7 OTs de la Unión Europea (UE) y Estados Unidos han gestionado su internacionalización como palanca de sus estrategias competitivas. Se analizaron las contribuciones realizadas por 50 altos directivos, consejeros y profesionales de la industria mediante entrevistas semiestructuradas, apoyadas en información obtenida de fuentes secundarias. La investigación identifica 4 etapas en el desarrollo de la industria de las Telecomunicaciones a través del impacto de diversos factores en su dinámica competitiva. También vincula la desigual evolución de los OTs analizados a las diferencias existentes en sus mercados domésticos, la actuación de sus gobiernos y reguladores, la profundidad y duración de la CFG y el planteamiento estratégico de cada operador. Los resultados obtenidos señalan que la mayor duración y profundidad de la CFG en Europa y las significativas diferencias coyunturales y estructurales existentes entre ambas regiones propiciaron un entorno y dinámica competitiva menos favorable para los OTs de la UE. También que la reacción estratégica de los OTs en Estados Unidos fue más eficaz que la observada en la UE. Estas enseñanzas pretenden contribuir a la reflexión de los legisladores y reguladores sobre el futuro marco competitivo e institucional de la industria extendida TMT en la UE y a la formulación estratégica de sus OTs que los haga tan competitivos como los de Estados Unidos.
... Y ha provocado una crítica continua de la comunidad académica respecto a su existencia como disciplina separada de la Gestión Estratégica (Strategic Management, en inglés) (Buckley et al., 2017;Ghauri y Santangelo, 2012;Melin, 1992;Morgan y Katsikeas, 1997). Porque autores como Bartlett y Ghoshal (1991), Porter (1986), Ghoshal (1987), Melin (1992) o Hoffman y Gopinhat (1994) ya habían incorporado las ventajas de la internacionalización a sus trabajos sobre la estrategia competitiva de las empresas. ...
Article
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El objetivo de este trabajo es analizar las diferentes estrategias competitivas empleadas por los Operadores de Telecomunicaciones (OTs) europeos y estadounidenses dependiendo del papel de las instituciones, la dinámica particular del mercado doméstico y regional de Estados Unidos y Europa, y el perfil particular de cada operador, a partir de la Crisis Financiera Global (CFG) de 2008. Partiendo de un modelo conceptual basado en Barney, Porter y Peng, como trípode estratégico para definir una estrategia competitiva, se analizan las entrevistas realizadas a cincuenta profesionales que han estado directa o indirectamente involucrados en aspectos relacionados con la gestión estratégica de los siete OTs analizados. La investigación permite obtener un resultado importante: la mayor duración y profundidad de la CFG en Europa y las significativas diferencias coyunturales y estructurales existentes entre ambas regiones propiciaron un entorno y dinámica competitiva menos favorable para los OTs de Europa. Además, las diferencias en el perfil de los mercados locales y en el grado de desarrollo del negocio móvil impactó negativamente en los resultados financieros de los operadores europeos por unas menores sinergias y economías de escala, contribuyendo a su peor desempeño en capitalización. Como consecuencia, la estrategia competitiva y gestión del modelo de negocio de los OTs de Estados Unidos fue más eficaz que la de los OTs europeos.
... Industries weigh up to the dimension of local responsiveness and global integration ). Each sector has specific measurable in the determination of industry capability and MARKET SIMILARITY SECTOR SCALE REGULATION SME NME COMPARATIVE ADVANTAGE competence, when examined in global scale (Bartlett & Ghoshal 1991). Competitiveness is evaluated firstly by identifying the geographical scope, whether the company or industry has strong international or local clout. ...
Book
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Offshore outsourcing is a prevailing deterrent in the business economic front. Given the competitive pressures put on firms, outsourcing is an elemental practice that can enable cost reduction measures and raise operating efficiencies; or otherwise access resources and competencies by simply choosing how and where to capture gains. This learning mechanism enhances organisation agility across geographical and cultural regions in a practice described unique to cross border operation strategic challenges, regardless of organisation age and size. Within such context, better prospects are expected of organisations with diverse experience, typically serving very broad consumer markets. Competitiveness is nurtured from the right mixture of organisation culture and tacit knowledge; home grown expertise and leadership insight that creates a highly sophisticated value supply chain with a built-in complexity on organisation dynamics that influences the ability of the decision maker over cost implementation. Denmark outsourcing activities are far more aggressive than European counterparts, with a small liberalised state economy and SMEs representing a greater proportion. Given its narrow national consumer base compensated through export oriented policy mechanisms; any structural changes in the economy must tantamount an increased role for the SMEs. In contrast of other European countries, employment protection is weak and Danish firms can fine-tune employment schemes with relative ease, even when more than three quarters of the whole labour force are union members. This peculiar labour market model has resulted to high turnover rates of an average tenure of about eight years. A Danish worker is remunerated with relatively generous unemployment benefits yet sternly reinforced through monitoring and sanction-otherwise known as the flexicurity labour model characterised with extreme wage dispersion particularly in the Danish labour market. This study finds that there are no inhibiting elements on the future growth and development of the Danish SME. Firms engaged in offshore outsourcing see better prospects in those markets, with the leeway of establishing or increasing operations in those specific regions. Strategic alliances and closer relations with providers that seemingly blur the boundaries of the enterprise, has positive impact on the worker capability and wages in Denmark. For the future Danish SME has right disposition and ability to influence change.
... Our study contributes to the global strategy literature (Bartlett & Ghoshal, 1989;Bartlett, 1991;Rugman, Verbeke, & Yuan, 2011) which argues that MNEs need to find the appropriate trade-off between global integration and local responsiveness to compete in the global market (Bartlett & Ghoshal, 1989). This means that the potential to overcome some LOF in local markets is surrendered in order to exploit global FSAs. ...
... While others suggest a framework with three folds: performance, potential, and the management processes, others suggest a framework that involves a combination of assets and processes, where assets are either inherited (natural resources) or created (infrastructure) and processes transform assets to achieve economic gains from sales to customers [56]. Other authors present an approach which emphasizes the role of factors internal to the laboratories such as strategy, structures, competencies, capabilities to innovate, and other tangible and intangible resources for their competitive success [57] [58]. In order to provide customers with a greater value of satisfaction than their respective competitors, laboratories must be operationally efficient, cost effective, and quality conscious [59]. ...
... The subsidiaries show less interest (only 13%) in adopting MAIs without the involvement of their parent organization or other subsidiaries. Therefore, despite the claim that subsidiaries act as \appendages" of parent organizations (Bartlett & Ghoshal, 1991;Stopford & Wells, 1972) or \miniature replica" subsidiaries (White & Poynter, 1984), the present study claims that the interdependence of subsidiaries has a substantive impact on the adoption and implementation of MAIs in subsidiaries. The findings suggest that the subsidiary comprises part of a network À À À not just a dyadic relationship with a parent company. ...
Article
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Responding to the increasing changes in technology through the proliferation of globalisation, a range of management accounting innovations (MAIs) have emerged. Concerning these MAIs, researchers have put forward alternative views ranging from rational-economic perspectives to social-organisational process perspectives which explore more dynamic consequences of MAIs including how MAIs are adopted and implemented differently in different organisational settings. This paper contributes to the latter and discusses the network view and subsidiaries capabilities both absorptive and combinative in diffusion of MAIs in group organisations and identifies four possible sources of diffusion of MAIs which have not been discussed in the literature.
... Sus bienintencionados propósitos de emplearlas para reorientar la práctica de la ciencia y el desarrollo social pueden resultar tan carentes de significado como las acusaciones de subjetividad en contra de los antropólogos por parte de ciertos actores institucionales de las políticas y partidarios del análisis cuantitativo. Quizá no sorprenda por ello que gran parte de la llamada teoría posmoderna de las organizaciones haya sido inicialmente desarrollada no por científicos sociales, sino por especialistas en gestión de negocios dedicados a explicar el éxito de algunas corporaciones que, de hecho, lograron incorporar de manera fructífera la tensión creativa emanada de tendencias contrarias (Bartlett y Ghoshal, 1991;citados en Eyben, 2000: 10-11). La contribución de los antropólogos al surgimiento de estas tendencias, llámense posmodernas o no, pasa por reconocer tanto las transformaciones paradigmáticas en el seno de la propia modernidad, como el papel de las formas institucionales y discursivas de conocimiento que, a menudo, son demasiado bien conocidas como para ser descritas. ...
Book
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Alejandro Agudo Sanchiz desarrolla en este libro una amplia visión acerca de las políticas públicas, partiendo desde su experiencia y conocimiento en el programa mexicano Oportunidades. En la obra se podrán encontrar algunas relaciones que el autor encontró entre la perspectiva de género y la participación social con la administración de políticas que llevan la etiqueta de programas sociales. Asimismo, nos ofrece una recapitulación de la manera como los temas de pobreza y desarrollo son llevados oficialmente y el discurso que los encapsula para entregárselos a los ciudadanos. En el texto se evidencia la evaluación que el autor hace sobre los programas sociales y deja la puerta abierta para que se pueda trabajar más a profundidad con este tema, que llega a ser tan pertinente en el contexto de la administración pública mexicana.
... In relation to the second question, the analysis developed will probably allow us to decide, for instance, about the maturity reached by the field under study -the international business field. Another of the aspects which may be elucidated is whether the study field mentioned above still keeps the diversity and interdisciplinarity which characterize it -the porous borders of this field have historically constituted one of its main strengths (Bartlett & Ghoshal, 1991;Dunning, 2001;Peng, 2001;Toyne & Nigh, 1997; amongst others)-and can even manage to identify emergent issues in the literature on international business. ...
Article
The purpose of this study consists in analyzing the existing literature on international business from all the research papers published in Journal of International Business Studies (JIBS) during the period of time comprised between 2000 and 2015. The authors apply bibliometric methods to that end –in particular, document citation and co-citation analyses (DCAs)– so that they can try and identify the main research lines within the aforementioned scientific field or domain; in other words, the ‘intellectual structure’ of the discipline examined. Social networks analysis was also used to carry out the representation or visualization of such structure or knowledge base. The highly interdisciplinary nature of the research undertaken, since the study field still keeps its characteristic diversity and interdisciplinarity or the need to integrate a variety of theoretical frameworks or approaches into the development of a widely-accepted theory about the field under study become evident. Amongst these theories would be the new institutional theory, the strategic theory or perspective or others such as the transaction cost theory or the agency theory, applied to the context of internationalization and to the field of international business, on whose integration the future development of this field may largely depend.
... Conventional organization design was primarily concerned with the task allocation and communications structures within hierarchies. Technological advances have shifted the task interdependences from within out of organizations, which have created the need for new means of coordination (Bartlett and Ghoshal, 1991). Moreover, information technology has standardized some interfaces, and has enabled managers to conduct more transactions across organizational boundaries rather than within them (Siggelkow and Rivkin, 2005). ...
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... El diseño de la organización convencional estaba relacionado con la distribución de tareas y estructuras de comunicación entre jerarquías. Los avances tecnológicos han cambiado las interdependencias de tareas desde dentro a fuera de las organizaciones, lo que ha creado la necesidad de nuevos medios de coordinación (Bartlett y Ghoshal, 1991). Adicionalmente, la tecnología de información ha estandarizado algunas interfaces, y ha permitido a los directivos realizar más transacciones a lo largo de fronteras organizativas más que con ellas (Siggelkow y Rivkin, 2005). ...
... The firm resources (i.e. human resources, physical, and financial resources) and their efficient utilization (McKelvie and Davidsson, 2009;Cetindamar and Kilitcioglu, 2013)., business strategies (Doz and Prahalad, 1987;Bartlett and Ghoshal, 1991)., information technology and communication networks (Zeng et al., 2008;Abereijo et al., 2009), ability of knowledge creation, coordination (Dyer and Singh, 1998;Sahin andRobinson, 2002, Cummings, 2004;Holsapple et al. 2015), organizational learning, ability to build new competences and leverage existing competences (Hamel and Prahalad, 1990;Nolan, 2001); and adaption to environment, flexibility, and adaptability (Sushil, 2001) are also found to be key factors for achieving competitiveness. ...
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Bu çalışmada Çok Uluslu İşletmelerdeki (ÇUİ) İnsan Kaynakları Yönetimi (İKY) alanında yayınlanan makaleler bibliyometrik bir yöntemle incelenmiştir. Bu kapsamda, ÇUİ’lerdeki İKY alanına genel bir bakış sunularak araştırmaların hangi anahtar kelimeler üzerinde inşa edildiği, bu alanda hangi ülkelerin, kurumların ve yazarların ön plana çıktığını, en çok atıf alan makalelerin hangileri olduğu incelenmiştir. Bu amaçla belirlenen ölçütlere göre Web of Science platformu üzerinden seçilen 1993-2022 yılları arasında yayınlanmış 477 makale bibliyometrik teknikler kullanılarak analiz edilmiştir. Araştırma bulgularının bu alanda araştırma yapmak isteyen gelecek araştırmacılara ışık tutması ve bu alanda sınırlı sayıda çalışmaya sahip olan olan Türkçe literatüre katkı sağlaması öngörülmektedir.
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To achieve sustainable development, ecosystem strategy has gradually become an inevitable trend of contemporary organizations in the digital era. Thus, ecosystem strategy has been an enduring research topic in recent years. Since ecosystem strategy advocates symbiosis with partners, this strategy highlights the importance of internal and external resource of focal enterprises. However, the prior literature has largely overlooked the utilization process of resources internally and externally in ecosystem strategy from a resource orchestration perspective, this study explores how a focal enterprise implement resource orchestration in the ecosystem strategy for sustainability in the digital era. Using a Chinese case study of TY, which successfully developed its own business ecosystem, this study unveils the important role of resource orchestration in ecosystem strategy, identifies two resource orchestration mechanisms for supplementing internal resources and activating external resources respectively. This study also highlights the importance of interaction between the two mechanisms for sustaining continuous resource orchestration and enabling the organization to adapt to the dynamic ecosystem environment. These findings contributes to the ecosystem strategy and resource orchestration theory, and also providing significant actionable paradigm to implement ecosystem strategy for sustainability.
Preprint
Диагностика управления — это действенный аналитический инструмент, который не требует больших финансовых и временных затрат и при этом позволяет установить позиции компании на текущий момент, а также определить позиции ближайшей бизнес-стратегии. Проведение диагностики управления – это многоступенчатый процесс (проверка, анализ, оценка, практика и так далее), который связан с выявлением симптомов недостаточной эффективности и установлением причинно-следственных связей между этими симптомами. Цель данной работы – показать положительное влияние управленческой диагностики на развитие компании и ее финансовое благополучие. Иностранные предприятия уже давно практикуют подобную деятельность, исследуя процесс менеджмента в качестве источника возможных как успехов, так и неудач. Российские организации пока мало уделяют внимания данному аспекту. Этим обусловлена актуальность данной работы.
Chapter
In the second chapter, a sound understanding of strategic management and its core concepts, definitions, processes, and applications is provided. This is done by a review of relevant strategic management literature. Firstly, the applied methodology for the literature analysis is presented. This section provides an overview on the exhaustive range of approaches and understandings of the strategic management discipline, academic, and practice literature has developed. Included is an overview of historical developments of strategic management from early ancient concepts to modern strategic management. Further, fundamental concepts and three core theories of strategic management, i.e., market-based view, resource-based view, and the institution-based view, are discussed. The chapter also considers arguments opposing and supporting strategic management’s entitlement to exist. Furthermore, the process of strategic management with its four core process steps is introduced. Additionally, the answer to the research question is prepared by introducing factors that affect strategic management, such as institutional factors, market/industry factors, and organizational factors. Eventually, the strategic management process of multinational corporations in the field of tension between internal and external forces is debated along the two dimensions—structure and actors. Furthermore, procedural justice is discussed as organizational response to ensure efficiency in the strategic management process of multinational corporations as well as coordination and control mechanisms as enabler of multinational corporations’ strategic management processes.
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Leadership and organizational culture are essential factors in the sustainability of a business. The two things' strategy becomes a concept that is often used as a foundation by various companies in running their activities. This article aims to discuss the role of leadership and organizational culture in implementing business strategy. Societal, cultural norms influence leader attributes and behaviors. Leader attributes and actions can be affected by the organization's corporate environment, size, and technology. Leader attributes and behaviors can determine the organizational form and organizational culture, and vice versa.
Chapter
While the idea of regio-centric firm behavior had been expounded as early as 1969 (see Perlmutter & Heenan, 1974), research in international strategy and marketing since has mainly gone from a multidomestic focus to a global focus. Reality seems to indicate that more and more multinational enterprises (MNEs) have been implementing regional strategies as opposed to either global or multi-domestic ones. Debate has been active over the last two decades on the reality of globalization and regionalization. This chapter reviews the debate, distills major themes, and offers a structured understanding of the phenonemenon of regionalization vs. globalization as seen in contemporary internationalization.
Chapter
This chapter analyzes the importance of using appropriate pedagogic and practical tools to develop cultural self-awareness in international business (IB) students in a classroom setting, establishing the foundations for future international business executives. Based on recent research, the author posits that IB students need to develop three basic knowledge bases: (1) their cultural intelligence level, (2) their potential implicit biases, and (3) the use of critical thinking to avoid certain psychological traps or hijackers. Using cultural self-assessments, developing the understanding of psychological factors affecting decision-making processes, and incorporating the use of critical thinking should reduce the negative role of unconscious biases during cross-cultural interactions. The author posits about the effectiveness of cultural profiling tools in predicting and identifying potential cultural pitfalls and challenges. Finally, the author recommends incorporating the practical use of cultural profiling tools in simulation or case studies.
Thesis
This research plunges into the microeconomic orb of the Portuguese economy of the secondary sector, aiming to illuminate the internationalization paradigms of these firms. A case research is conducted upon the focal firms focused on their strategic apex. A literature review is performed in the interdisciplinary fields of economics and managerial sciences, dualistically centered on the internationalization process model of Uppsala, and commitantly, at the dynamic capabilities theory. In the context of the manufacturing industries, this study focusses on the sector of metallurgy and metal-mechanic. A comparative design is followed, with a multiple case setting and embedded hermeneutic units of analysis. It fits a qualitative approach within an interpretative philosophical stance with a deductive orientation. The qualitative data analysis process is rooted in a triadic methodological framework: the general analytical procedure of Miles and Huberman (1984), the Weber protocol (1990) and the framework of Gioia (2009). The cases exhibited a multiparadigmatic internationalization reality, with heterogeneity among them although with some overlapping phenomena adhering differently to the U-model and to the dynamic capabilities doctrine. Second, seminal constructs addressed in the initial problematization revealed distintive relations. The psychic distance factors of the U-model were positively perceived as a true relation. The geographical distance factors observe an ambidexterian effect - true and spurious. The latter caused by the contingency phenomenon of economic periphery uncovers a latent need for public policies to retrieve the equilibrium of competitive forces with other EU markets and stimulate the outward flow of investment of the firms. Third, the DCs, both type 1 and type 2, exhibit processes of reconfiguration oriented towards international ambidexterity, while the GDCs evidence of DC mutability and indiscriminate bidirectional transferability.
Book
نویسندگان این کتاب از پیشکسوت های موضوع مدیریت و نیز متخصص گردشگری هستند که با تجربه بسیار به نیاز دانشجویان حوزه گردشگری پی برده و به تدوین این کتاب اهتمام ورزیده اند. درحال حاضر، این رشته تخصصی در دانشگاه های ایران تدریس شده و دانشجویانی در مقاطع گوناگون در این رشته مشغول تحصیل هستند و بایستی اذعان نمود که تاکنون کتابی جامع درخصوص مدیریت گردشگری تدوین یا ترجمه نشده است. به این سبب برآن شدیم که با جستجو در منابع بین المللی و از میان نویسندگان خبره حوزه مدیریت گردشگری، کتابی قابل درک و کاربردی برای دانشجویان و محققین این حوزه خاص انتخاب نموده و با ترجمه هرچه گویاتر، آن را در اختیار قرارداده و به ارتقای سطح علمی ایشان کمک کنیم. بنابر نظر نویسندگان، نگارش این کتاب براساس نیاز دانشجویان، رهبران و مدیران آینده صنعت گردشگری و مهمان نوازی و براساس دانش روز و پیشرفته مدیریت استراتژیک صورت گرفته است. رویکرد کل نگر این نوشتار، نسبت به مدیریت استراتژیک، بیان ارتباط و اثرات متقابل محیط های خارجی و داخلی گردشگری، درک مبانی مدیریت استراتژیک را آسان و کاربردی نموده است. بیان شفاف و ارائه نمونه های عینی از محیط های گردشگری در ابتدای هرفصل با عنوان مطالعه آزاد، ذهن خواننده را برای ورود به مبحث اصلی کتاب به چالش کشیده و آماده می نماید. لازم به ذکر است که نویسندگان این نوشتار، علاوه بر ذکر منابع مورد استفاده در انتهای هر فصل، به ارائه عناوینی از بهترین منابع علمی معتبر و کارآمد درمورد موضوع آن فصل اقدام نموده اند که بسیار حائز اهمیت است و در ترجمه این کتاب، مجموع منابع مورد استفاده و سایر منابع پیشنهادی، با عنوان منابعی برای مطالعه بیشتر، ارائه شده است. پیشنهاد می شود، برای پاسخ به پرسش های هر فصل، نمونه ای از واحدهای خدمات گردشگری داخلی، یا واحدهای موضوعی مرتبط را که به طور مستقیم آن را تجربه کرده اید، انتخاب نموده و پاسخگوی پرسش های مرتبط با آن باشید. به خوانندگان این کتاب، دانشجویان، مدیران واحدهای مهمان نوازی و گردشگری، توصیه می شود از تکنیک های تحلیلی و کاربردی ارائه شده در این کتاب استفاده نموده و توانایی اتخاذ تصمیمات استراتژیک و اجرای آن ها را در مقیاس واقعی، بهبود بخشند. در بخش پایانی کتاب اصلی، مواردی برای مطالعه بیشتر وجود دارد که به دلیل اشاره مختصر در ابتدای هر فصل و غیربومی بودن نمونه های موردی، از ترجمه آن صرف نظر شد. دانشجویان و علاقه مندان می توانند با مراجعه به اصل کتاب از اطلاعات بیشتری بهره مند شوند. ویرایش اول این کتاب در سال ٢٠١٠ به چاپ هجدهم رسیده و چاپ دوم آن در سال ٢٠١۶ با اندکی تغییرات در نمونه های موردی ارائه شده، منتشر شد. این کتاب از سال ٢٠١١ بیش از ٣٠٣٢ بار مورد استناد رسمی و ثبت شده، قرارگرفته است. ١٣٩۶
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Диагностика управления — это действенный аналитический инструмент, который не требует больших финансовых и временных затрат и при этом позволяет установить позиции компании на текущий момент, а также определить позиции ближайшей бизнес-стратегии. Проведение диагностики управления – это многоступенчатый процесс (проверка, анализ, оценка, практика и так далее), который связан с выявлением симптомов недостаточной эффективности и установлением причинно-следственных связей между этими симптомами. Цель данной работы – показать положительное влияние управленческой диагностики на развитие компании и ее финансовое благополучие. Иностранные предприятия уже давно практикуют подобную деятельность, исследуя процесс менеджмента в качестве источника возможных как успехов, так и неудач. Российские организации пока мало уделяют внимания данному аспекту. Этим обусловлена актуальность данной работы.
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Collaborative practices between firms and their suppliers are becoming increasing important in the light of short product life cycles, intense global competition, the need for sustainability, and the ever-increasing demands of customers. Although supplier relationship management (SRM) and its purported benefits have been widely studied in the literature, most of the studies have focused on examining its direct relationship with firm performance. Interestingly, there is scare research on the applicability and effectiveness of such relationships in less developed countries. Thus, we use data collected from firms in Ghana, a less developed country, and apply rigorous, robust, and consistent analytical procedures to examine moderated-mediation relationships between SRM, operational flexibility, ownership structure, and firm performance (FP). We demonstrate that operational flexibility capability mediates the supplier relationship management – firm performance link. Additionally, our moderated mediated analyses show that SRM's influence on firm performance is stronger for locally-owned firms (domestic) than foreign owned firms, indicating that domestic firms stand to gain more from investments in SRM than firms with foreign ownership. This finding is particularly interesting and vital given that locally owned firms might not have the needed resources to invest in SRM practices and thus, the need for these firms to comprehend the benefits and advantages of SRM.
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We study MNE subsidiary performance in a turbulent, emerging economy, focusing on how locally hired managers and integration − responsiveness (I-R) influence performance outcomes. We augment I-R by considering how locally hired managers support or hinder global integration (GI) and local responsiveness (LR) in China. Analysis of data from 104 Chinese subsidiaries suggests higher proportions of locally hired managers do not support GI; GI is sufficient in its own right in dealing with turbulence, positively moderating the relationship between turbulence and performance. However, a higher proportion of locally hired managers does improve subsidiary performance amidst turbulence when accompanied by LR.
Chapter
As multinational corporations are becoming larger and more complex, it becomes increasingly difficult to balance between the need for overall standardization in the multinational corporation (MNC) and the need for local responsiveness. In order to allow subsidiaries to react on challenges and opportunities within their local markets, they should be granted with a certain level of decision-making autonomy. However, this freedom can facilitate a misalignment of activities among the headquarters and its subsidiaries. This study suggests that subsidiaries should be granted with the autonomy to pursue own activities. There should, however, be limits to their independence, which should be aligned through a dialogue between the headquarters and the subsidiary. This study finds a positive correlation between strategic and operational autonomy and subsidiary performance when these are combined with a strong intra-organizational network relationship. Furthermore, the study argues that within operational autonomy it is important to distinguish between everyday activities that do not need approval from headquarters, and activities that should be decided in collaboration between the headquarters and the subsidiary. Subsidiaries that are operating in technological complex markets should be granted with the autonomy to take advantage of inter-organizational network relationships in order to exploit local knowledge and capabilities. However, this poses the risk of the subsidiaries losing connectivity to the MNC. In order to reduce this risk, the headquarters should combine such initiatives with a strong collaboration with its subsidiaries. By establishing a strong intra-organizational network relationship, autonomy can have a positive effect on subsidiary performance.
Chapter
Research on international entrepreneurship (IE) is growing, but there is still a deficit of solid theoretical frameworks. The application of the network perspective has added a considerable value to fill this gap, but the use of networks to understand the international behavior of new ventures is largely fragmented. This chapter discusses different definitions of IE based on a systematic literature review of the network perspective in IE research. It identifies different themes in which network perspective is used in IE research, and highlights the theories used to comprehend the interaction between networks and IE. The chapter also highlights the critical role of networks in international trade and business. The transaction cost economics (TCE), organizational learning, resource-based view, social capital, and knowledge-based view emerge as important theoretical frameworks frequently used in past research to explain international entrepreneurial activities from a network perspective.
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Purpose The purpose of this paper is to differentiate local versus global brand associations in an emerging market (Turkey)’s coffee shop market. Design/methodology/approach Two leading coffee shop brands – one local and one global – were analyzed with an emerging exploratory research technique – brand concept mapping (BCM) – to reveal their strong, favorable and unique associations leading them to market leadership. Findings The results indicate that, these two successful brands both have distinctive, yet relevant positions in their consumers’ mind. Local cultural experience is relevant for differentiating local brands, even if the coffee shop concept is globally imported. Global coffee shop brand, on the other hand, means membership to global middle income segment and is remembered as global fast coffee service. Research limitations/implications The main limitation of this exploratory study is the sample size limitation by its nature. So, the generalizability of the results should be approached with caution. Researchers use BCM technique; however, this method does not permit to reveal the expected levels and the importance of the attributes. Thus, further research are suggested to be complementary. Originality/value This study fills the research gap in revealing and comparing local vs global brand associations by using BCM technique, which enables one to measure the strength, unique and favorable associations/brand images more suitable to Keller’s (1993) conceptualization. This study pioneers in using this technique in international branding.
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Until the development of transaction-cost theory, economics did not have a theory of why firms exist and grow. Transaction costs theory seeks to explain which activities are organized within the firm and which ones are performed by independent agents. It is a theory of the role and size of firms. Since multinational enterprises are firms that extend their hierarchies across national boundaries, transaction costs theory can throw considerable light on the reasons behind the existence and the growth of such firms [4; 17; 9; 15]. With a few notable exceptions [5: 9; 15], most applications of the transaction costs approach to the multinational enterprise have focused on the in-ternalization of knowledge. This reflects the postwar predominance of horizontal investments in manufacturing by knowledge-intensive firms. This emphasis on the internalization of knowledge as a cause of multinational expansion may have given the erroneous impression that the applicability of transaction costs theory is restricted to post-World War II multinational enterprises. This paper argues that this is not the case. It seeks to explain the existence and growth of multinational enterprises in the tin industry, and, in the process, shows that transaction costs can be used to account for a very wide range of multinational enterprises, including those that do not fit the traditional mold. Recent research in business history has shown that the growth of European multinational enterprises differed in many ways from that of their *This paper has benefited from frequent discussions with Mira Wilkins and from Steve Nicholas' comments. Financial support from the Wharton Center for International Management Studies is gratefully acknowledged.
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Location of new products, 191. — The maturing product, 196. — The standardized product, 202.
Book
Introduction to the Second Edition - Preface - The Multinational Enterprise in the World Economy - A Long-run Theory of the Multinational Enterprise - Alternative Theories of the Multinational Enterprise - The World's Largest Firms - Predictions and Policy Implications - Index
Chapter
Our objective in this chapter is to describe some recent developments in the area of industrial organization pertaining to the role of history in industrial competition.
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A prevalent view among both academics and managers is that pioneers enjoy an enduring advantage over all later market entrants. The study reported in this paper tests this assertion by comparing the behavior and performance of three entrant categories—namely, pioneers, early followers and late entrants. A population ecology model is used to develop a set of hypotheses and these are tested on samples of start-up and adolescent businesses from the PIMS data base. The results show the three entrant categories to have significantly different strategic profiles and performance levels, with pioneers tending, on the average, to outperform later entrants.
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Two distinct approaches to market analysis and definition have evolved. Those approaches which adopt a top-down persepective, tend to specify markets in terms of competitive capabilities and resource transferability. The alternative bottom-up perspective emphasizes customer requirements or usage patterns when defining markets. An integrated approach begins with a common model of the principal dimensions of a market. The second element is the recognition that different market definitions are needed for different strategic purposes. Next, the strategic planning framework which links business units and product-market units should be compatible with these purposes and reflect a strategically relevant balance of cost and demand factors. A procedure for forming business units from groups of product-markets is shown to be effective for achieving this balance.
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Whether and why members of the same strategic group would experience different performance results has received little attention in previous research. These questions are addressed in this paper. First, conventional theory on the relationship between firm performance and strategic group membership is reviewed. Then a theory is developed as to how historical differences among strategic group members may result in performance differences. An empirical analysis of risk and return relationships is conducted, centered on the nature of environmental change characterizing the industry. The empirical setting throughout is the U.S. pharmaceutical industry over the period 1963–82.
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This study partitions the total variance in rate of return among FTC Line of Business reporting units into industry factors (whatever their nature), time factors, factors associated with the corporate parent, and business-specific factors. Whereas Schmalensee (1985) reported that industry factors were the strongest, corporate and market share effects being extremely weak, this study distinguishes between stable and fluctuating effects and reaches markedly different conclusions. The data reveal negligible corporate effects, small stable industry effects, and very large stable business-unit effects. These results imply that the most important sources of economic rents are business-specific; industry membership is a much less important source and corporate parentage is quite unimportant.
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The concept of generic strategies for gaining competitive advantage has received considerable attention recently in the business policy field. Two generic strategies usually mentioned are low cost position and highly differentiated position. This paper uses a game-theoretic model of oligopolistic competition to provide analytical support for these generic strategies, and, in places, to refine the conclusions drawn from previous research in this field. Another conclusion derived from the model is that a superior cost or differentiation position leads to a larger market share, which in turn leads to higher profitability.
Chapter
Development of a firm's core competencies is identified as the key for global leadership and competitiveness in the 1990s. NEC, Honda, and Canon are used as exemplars of firms that conceive of themselves in terms of core competencies. Core competencies are the organization's collective learning and ability to coordinate and integrate multiple production skills and technology streams; they are also about the organization of work and delivery of value in services and manufacturing. A firm must conceive of itself as a portfolios of competencies, instead of a portfolio of strategic business units (SBUs). The latter limit the ability of firms to exploit their technological capabilities; they are often dependent on external resources. The real source of advantage lies in management's ability to consolidate corporate-wide technologies and production skills into competencies, which will allow individual businesses to adapt to emerging opportunities. Cultivating core competencies does not mean outspending rivals on RD (2) they significantly contribute to the customer benefits of the end-product; and (3) they should be difficult for competitors to imitate. Cultivating core competencies also means benefiting from alliances and establishing competencies that are evolving in existing businesses. The tangible links between core competencies and end products are core products, which embody one or more core competencies. Companies must maximize their world manufacturing share in core products. Global leadership is won by core competence, core products, and end products; global brands are built by proliferating products out of core competencies. Firms must avoid the tyranny of the SBU, the costs of which are (1) under investment in developing core competencies and core products, (2) imprisoned resources, and (3) bounded innovation. Top management must add value to a firm by developing strategic architecture, which will avoid fragmenting core competencies, establish objectives for competence building, make resource allocation priorities transparent and consistent, ensure competencies are corporate resources, reward competence carriers (personnel who embody core competencies), and focus strategy at the corporate level. A firm must be conceived of as a hierarchy of core competences, core products, and market-focused business units. Obsession with competence building will mark the global winners of the 1990s. (TNM)
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Incl. bibl., index.
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Sumario: Historical setting -- Du Pont: creating the autonomous divisions -- General Motors: creating the general office -- Standard oil company (New Jersey): ad hoc reorganization -- Sears, Roebuck and company: decentralization, planned and unplanned -- Organizational innovation: a comparative analysis -- The spread of the multidivisional structure -- Conclusion: chapters in the history of the great industrial entreprise.
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Thesis (Ph. D.)--Massachusetts Institute of Technology, Dept. of Economics, 1960. Vita. Includes bibliographical references (leaves 195-197). by Stephen Herbert Hymer. Ph.D.
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Thesis--Harvard University. Bibliogr. Photocopy of typescript.
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Extra t.p., with thesis statement, inserted. Thesis (D.B.A.)--Stockholm School of Economics, 1981. Includes bibliographical references (p. 287-298).
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This article reviews some of the criticisms directed towards the eclectic paradigm of international production over the past decade, and restates its main tenets. The second part of the article considers a number of possible extensions of the paradigm and concludes by asserting that it remains “a robust general framework for explaining and analysing not only the economic rationale of economic production but many organisational and impact issues in relation to MNE activity as well.”© 1988 JIBS. Journal of International Business Studies (1988) 19, 1–31
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Leksell, L. 'Headquarter-subsidiary relationships in multinational corporations', doctoral dissertation, Institute of International Business, Stockholm, 1981. Mintzberg, H. The Nature of Managerial Work, Harper and Row. New York, 1973.
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