No full-text available
To read the full-text of this research,
you can request a copy directly from the author.
Designing Global Strategies: Comparative and Competitive Value-Added Chains
Abstract
This article, the first of a two-part series, shows how the value-added chain can be used to analyze sources of international strategic advantages. The author argues that it is essential that a distinction be drawn between competitive and comparative advantage. He illustrates the importance of this distinction by looking at structural shifts in the world economy and arguing that these shifts reflect changes in comparative advantage. The impact of these changes leads to only a few choices for the firm facing import competition and possessing no competitive advantage. The author stresses that if the global advantages acquired by international participation are not sustained, competition reverts to domestic competition among firms with different national names.
... "Montra virtual" de produtos e serviços, gera padrões e permite a junção de mercados no mercado mundial. Kogut (1985) Fonte: elaboração própria com base em Martin e Lopez (2007) (2004), Bartlett e Goshal (1989), Kogut (1985). ...
... "Montra virtual" de produtos e serviços, gera padrões e permite a junção de mercados no mercado mundial. Kogut (1985) Fonte: elaboração própria com base em Martin e Lopez (2007) (2004), Bartlett e Goshal (1989), Kogut (1985). ...
... Exportação direta, a retalho, pois a empresa comercializa diretamente com o consumidor final e indireta através de distribuidores. Detentora de produtos únicos no mundo, a empresa aproveita ainda todas as vantagens que o e-commerce lhe pode proporcionar desde a redução de custos, aumento de credibilidade, maior e mais rápido acesso à informação, eliminação de intermediários e o acesso a um mercado de maiores dimensões, pelo que, neste âmbito, o processo enquadra-se na perspetiva de Kogut (1985). Como a exportação é sempre feita na base da compra direta pelo distribuidor, os mesmos não encaram a loja online como concorrência contornando uma das principais desvantagens apontadas a este modo de entrada. ...
A temática da internacionalização constitui uma área de pesquisa que se mantém muito atual, na medida em que a internacionalização se assume como estratégia chave para a competitividade das empresas e das economias. No contexto português, a internacionalização e diversificação de mercados parece assumir um papel fundamental para a sustentabilidade dos negócios. Sendo definido como um processo complexo, envolvendo riscos elevados, o objetivo deste trabalho será estudar o Processo de Internacionalização (PI) de empresas portuguesas. Seguindo uma metodologia qualitativa, assente no estudo de caso, pretende-se identificar estratégias, dificuldades e captar a complexidade e especificidade desses processos. Dado que, ao analisar o PI de uma empresa, é importante confrontar modelos teóricos com a prática empresarial, procuraremos confrontar e verificar a validade das teorias e literatura relevantes com os casos em análise. Os resultados indicam que não é possível enquadrar os casos em estudo num único modelo teórico e que o Modelo não Sequencial parece ser o mais indicado para caraterizar a estratégia das empresas em causa.
... Second, in addition to increased market access, cross-border M&As allow exploitation of favorable government policies and regulations in other countries to, for instance, optimize taxation (Markides & Ittner, 1994) or reduce factor costs (i.e., wages, material, capital costs) (Bertrand & Capron, 2015;Kogut, 1985). Cross-border M&A deals allow for greater opportunities to benefit from efficiency gains resulting from economies of scale and scope on a global scale through, for instance, standardized products and production processes across countries (Bertrand & Capron, 2015;Doukas & Travlos, 1988;Kogut, 1985). ...
... Second, in addition to increased market access, cross-border M&As allow exploitation of favorable government policies and regulations in other countries to, for instance, optimize taxation (Markides & Ittner, 1994) or reduce factor costs (i.e., wages, material, capital costs) (Bertrand & Capron, 2015;Kogut, 1985). Cross-border M&A deals allow for greater opportunities to benefit from efficiency gains resulting from economies of scale and scope on a global scale through, for instance, standardized products and production processes across countries (Bertrand & Capron, 2015;Doukas & Travlos, 1988;Kogut, 1985). Cross-border M&As can thus lead to increased bargaining power (i.e., over suppliers, distributors, or customers), which helps reduce costs (Hitt et al., 1997;Kogut, 1985). ...
... Cross-border M&A deals allow for greater opportunities to benefit from efficiency gains resulting from economies of scale and scope on a global scale through, for instance, standardized products and production processes across countries (Bertrand & Capron, 2015;Doukas & Travlos, 1988;Kogut, 1985). Cross-border M&As can thus lead to increased bargaining power (i.e., over suppliers, distributors, or customers), which helps reduce costs (Hitt et al., 1997;Kogut, 1985). In summary, we argue that based on fewer opportunities to increase revenues and reduce costs, domestic M&As underperform cross-border M&As: ...
Extant research has yielded conflicting theoretical and empirical predictions about whether family firm acquirers perform better or worse in mergers and acquisitions (M&As) than their nonfamily firm counterparts. To help resolve this controversy, we take a socioemotional wealth (SEW) perspective to theorize that family members’ desire to preserve their SEW favors the pursuit of M&A strategies that are both beneficial (industry-related M&As) and detrimental (domestic M&As) to M&A performance. We further theorize that the desire to preserve SEW leads to family firm idiosyncratic SEW resources that help family firm acquirers, on average, achieve better M&A performance than nonfamily firm acquirers. Meta-analytic results based on 51 primary studies covering 242,123 M&A deals are in line with our predictions. Thus, our study contributes to the literature on family firms and M&A performance by explaining how the different M&A strategies chosen by family firms have positive and negative consequences for M&A performance. Our theory and findings have implications for future family business and M&A research.
... Porter (1985) yKogut (1985) van desarrollando este enfoque, planteando que toda actividad y unidad empresarial, se encuentran inmersas dentro de un sistema mayor, donde deben interactuar con otras unidades empresariales. El planteamiento de estos autores sostiene que es el resultado de dicha interacción, la que permite generar ventajas competitivas, siempre y cuando dicha coordinación sea óptima y eficiente. ...
La producción del carbón vegetal genera una gran fuente de empleos y entrada
de flujos monetarios, reflejando para ello nuevas formas de gestión
empresarial, para una correcta toma de decisiones e implementación de las
estrategias empresariales en la búsqueda de fuentes competitivas.
Cuba que se encuentra en pleno proceso de actualización de su modelo
económico para su inserción de manera armonizada en el contexto económico
internacional, pretende aumentar el uso de la cadena de valor como
herramienta para lograr la eficiencia en el entorno de las relaciones
empresariales y lograr así un mayor encadenamiento productivo.
La presente investigación se planteó proponer un procedimiento para el diseño
de la cadena de valor del carbón vegetal, como soporte en la gestión contable
que permita el cálculo de la utilidad, en la empresa de Agroforestal de Pinar del
Rio. En el cual se fundamenta el marco teórico - conceptual relacionado con el
diseño de la cadena de valor en la industria forestal, después se procede a
diagnosticar la situación existente en la empresa de Agroforestal en cuanto a la
utilización de este instrumento, respecto al cálculo de las utilidades en la
producción del carbón vegetal, para finalmente diseñar el procedimiento en la
empresa.
El procedimiento propuesto permite calcular las utilidades a través de cada uno
de los eslabones definidos por la cadena de valor, definiendo así aquellas que
consumen más recursos que otras y cuales agregan valor al proceso.
... Therefore, the three fishery industries' interconnection occupies a crucial position in the value chain comprising fishery capture and aquaculture, aquatic products processing, and recreational fishery. Value chain theory holds that the value chain is a process of integrating production factors together to shape various input links, forming a final product through assembly and finally completing the value cycle through market trade and consumption [18]. This paper takes labor, land, capital, and technology as the input elements, and the output value and output as the output elements. ...
The efficiency change, mutual cooperation, and interaction among the three fishery industries in China can accurately reflect the level of economic development within the industry. Studying the relationships between the three fishery industries under the existing structural system is conducive to enhancing the endogenous power and steady progress of the industry. Using the DEA-Malmquist model, gray correlation, impulse response, and variance decomposition methods, this paper focuses on the specific value appreciation process of the three fishery industries, namely, fishery capture and aquaculture (primary industry), aquatic processing (secondary industry), and recreational fishery activities (tertiary industry), in order to analyze the synergy and interactive response relationship among the three fishery industries during the period of 2003 to 2020 based on the value chain. We propose specific policy suggestions regarding the overall efficiency level and integration degree of the three fishery industries. The results show the following: (1) the efficiency of fishery capture and aquaculture (primary industry) and aquatic processing (secondary industry) show significant regional differences, and the change in trend in the efficiency of recreational fishery activities (tertiary industry) is better than that of the other two. (2) Most of the synergy degrees of fish capture and aquaculture efficiency, aquatic processing efficiency, and recreational fishing efficiency, are medium and above. (3) The interactions among the efficiencies of the three fishery industries in the country and that in different regions vary. From a national perspective, the efficiency of the fishery industries can be dependent on economic inertia. There is a regional heterogeneity among the interactive responses to the efficiency of the three fishery industries in China; the interaction of fishery value chain efficiency in the four economic regions differs in both strength and direction. Exploring the synergy and interactive response among the three fishery industries in China from the value chain perspective can provide a basis for the precise governance of different regional characteristics and help to modernize the fishery industry.
... When it comes to the contribution to global strategy, an application of the ARCTIC framework goes beyond the application of VRIO resources to the operations of an individual corporation in individual foreign countries (Ghemawat 2007;Kogut 1985). Moreover, recent research (Chi et al. 2019) points out the ability to switch as another source of competitive advantage built into multinational corporation-acquired affiliates. ...
Although the interdependence between the core competencies of the collaborating partners and synergy as an important consideration when companies decide to go for a merger is theoretically understood and evident, further empirical research is needed to integrate two concepts into a coherent empirical construct. The paper aims to develop an empirical framework useful for scholars and practitioners to incorporate real options theory into resource-based views (RBV) to measure collaborative synergies of M&As. Having done the empirical research on the case study of the Souq.com acquisition by Amazon.com as one of “the biggest-ever technology M&A transactions in the Arabic world”, the paper provides a conceptual construct of research that encompasses not only Amazon.com and Souq.com but can be useful to other companies pursuing strategic growth by M&As
... On the other hand, it has squeezed the profits of enterprises and reduced their production capacity to some extent. In the short run, enterprises do not have enough funds to complete the optimal allocation of production factors and improve their position in GVC [22][23][24][25][26][27][28][29]. ...
In order to tackle increasingly serious environmental problems, China has been promoting the development of a green economy and guiding the green transformation of various regions and industries through environmental regulation in recent years. By participating in international trade, Hebei Province has been embedded in the global value chain. However, Hebei’s involvement in the high-energy-consuming and polluting manufacturing sector and its lower position in the global value chain have led to serious environmental issues. In practice, the government has promulgated environmental regulations to restrict economic activities of enterprises. What role does environmental regulation play in Hebei’s manufacturing industry’s participation in the global value chain? In order to explore the impact of environmental regulation on Hebei’s manufacturing industry in the global value chain, this paper constructs a fixed-effect econometric model based on the panel data of the embedding level of the value chain of 12 manufacturing sectors in Hebei Province. The research results show that: first, the R & D capacity of the manufacturing industry in Hebei Province still needs to be improved. Second, environmental regulation has promoted the global value chain position of Hebei’s 12 manufacturing sectors. Third, environmental regulation will show obvious heterogeneity to manufacturing industries with different capital intensities and different pollution levels. The impact of environmental regulation on the manufacturing industry with different intensities is different. Therefore, the government should formulate targeted environmental regulation to promote the position of Hebei’s manufacturing industry in the global value chain, such as further improving environmental regulation and increasing the intensity of environmental regulation and increasing the investment of human capital, and cultivating innovative talents.
... Porter [20] defined the activities of vertically integrated enterprises that can increase enterprise value as the value chain of enterprises, and analyzed the strategic links in the value chain to enhance the core competitiveness of enterprises. Kogut [21] elevated the value chain to the regional and national levels and defined it as the circular process of production factor input, product assembly and trading, laying the foundation for the construction of GVC. After connecting the theory of value chain to the global economic and industrial organizations, the relatively mature theory of Global Value Chain (GVC) was born. ...
This study takes Tianjin as an example to analyze how to build the manufacturing industry chain ecosystem. Based on the ecosystem theory, the related literature of manufacturing industry chain and value chain, and combined with various action plans for the development of manufacturing industry in Tianjin, the structure chart and construction roadmap of industrial chain ecosystem were drawn. Based on the input–output data of 42 sectors in Tianjin, this study calculated and analyzed the changes in embedment degree of various manufacturing industries in Global Value Chain (GVC) and National Value Chain (NVC) in Tianjin from 2010 to 2017. It is found that the industrial chain ecosystem is mainly composed of four elements: the enterprises on the industrial chain, the information flowing among enterprises, the goods circulating among enterprises, and the external environment of enterprises. The connection of supply and demand chains, enterprise chains, space chains and value chains forms an industrial chain, and the value chain is a crucial relationship chain in the connection mechanism. In addition, 2015 is a turning point for Tianjin manufacturing industry to embed in GVC and NVC, mainly due to the industrial economic adjustment in Tianjin, the global economic turmoil, and the establishment of the manufacturing industrial park. In terms of R&D intensity, high and medium high-tech manufacturing industries tend to be embedded in GVC, but are easily affected by enterprises and environmental factors. However, low and medium low-tech manufacturing industries still have ample space to integrate into GVC, information and products are important factors to determine the upgrading of its industrial chain. Therefore, in order to better construct the industrial chain ecosystem of manufacturing industry and enhance the industrial competitiveness of Tianjin’s manufacturing industry, it is necessary to give priority to the development of high-tech manufacturing industry, expand the international openness of low-tech manufacturing industry, support regional advantageous industries, and carry out dynamic regulation of industrial ecology.
... MFIs can design suitable policies for taking advantage of economies of scale in providing similar products and services to more number of people. Cost can be saved through replication of similar products and services (Kogut, 1985). Strategies such as-group lending scheme can be adopted to avoid failure of repayment of loans by clients. ...
The aim of the current work is to predict the impact of MFI specific internal factors on the social performance of Indian microfinance institutions (MFIs) by using machine learning techniques. Social performance index (SPI) is designed by taking data of 73 Indian MFIs for 10 years with the help of an indexing technique where six different factors (operational self sufficiency, number of women borrowers, number of rural borrowers, gross loan portfolio, average loan balance per borrower / GNI per capita and cost per borrower) representing different dimensions of functioning of MFIs are considered. The data is taken from MIX data repository. Pooled OLS regression model is used for analyzing impact of various MFI specific factors on SPI. For predicting the SPI, Artificial Neural Networks (ANN) machine learning model is considered that takes all independent variables as input. The results of regression model indicate that size, legal status, outreach and service provisions significantly affect SPI. ANN analysis result indicates that social performance of MFIs gets determined by MFI specific internal factors. The experimental result indicates that the proposed ANN prediction model is providing better result for predicting the SPI. The findings suggest that MFIs can contribute for development of the society by adopting suitable policies keeping in view certain internal factors.
... Another key decision linked to the configuration of the value chain is where to locate activities-in the home country or some other country or region. To make the best decision, entrepreneurs should analyze the interaction between the comparative advantages of the country and the firm (Kogut, 1985). In recent decades this analysis has led firms to disperse their value chains internationally, in search of-among other things-more competitive costs and/or higher quality resources. ...
This chapter intends to analyze and develop the concept of the entrepreneurial university and social innovation ecosystem from multiple viewpoints, including HEI regional knowledge spillover and social innovation ecosystem theoretical approaches, as well as policy and research views. The emerging perspectives of the entrepreneurial universities in the knowledge economy are considered as an instrument for “innovation and development” that acts as an elixir for the social innovation paradigm. Due to its vital position in the horizon EU strategy, respectively entrepreneurial universities and the social innovation ecosystem are gaining increasing importance in the EU’s regional knowledge-based economic growth policy discourse. Since then, they’ve been used by policymakers around the world as building blocks for executing various innovation policies, including research and innovation, smart inclusive regional knowledge growth, social innovation, industrial development, and regional development policies. The responsiveness of entrepreneurial universities and the social innovation ecosystem is envisioned in this chapter as a “facilitator” for increasing knowledge-based economic development and innovation-driven regional growth.
... Another key decision linked to the configuration of the value chain is where to locate activities-in the home country or some other country or region. To make the best decision, entrepreneurs should analyze the interaction between the comparative advantages of the country and the firm (Kogut, 1985). In recent decades this analysis has led firms to disperse their value chains internationally, in search of-among other things-more competitive costs and/or higher quality resources. ...
In the European Union, SMEs represent as much as 99% of businesses, but only 3 out of 10 companies have some international involvement. EU policy makers perceive SMEs internationalization as a desired path for global growth; thus, they have put forward certain tools which aim to boost the pace and scope of internationalization, i.e., by creating and facilitating access to support activities, sharing information, promoting cluster and networking initiatives, making support schemes consistent throughout the EU, etc. (Della Corte, Handbook of research on startegic Management in Small and Medium Enterprises. IGI Global, 2014). However, a vital point in creating a successful internationalization framework requires understanding that SMEs internationalization models may and do differ from those of multinational enterprises (MNEs). SMEs have a different structure, and they act differently, since their aims vary from those of MNEs (Knight and Liesch, Journal of World Business 51(1): 93–102, 2016; Buckley, Journal of World Business, 51(1): 74–82, 2016).
Former studies of European SMEs indicate that there are specific traits of company characteristics that determine their internationalization process. Amongst the distinguished factors, size, activities performed, age, and experience counted as the most significant determinants of the expansion. However, these findings refer to occurrences dating back at least 5 years. In the era of rapid digitalization and—still—ongoing globalization, the impact of these factors might have diminished, making place for others. Therefore, the rising importance of digitalization calls for the need to identify new barriers and opportunities for SMEs to become international.
The aim of this chapter is to see whether and how digitalization has influenced the internationalization models of Polish SMEs. We do not provide quantitative analysis that would allow us to statistically verify hypotheses on that matter; however, given the recent developments of the business world and internationalization trends, we assume that digitalization has had an impact on how companies expand abroad nowadays. The study has a screening aim and should allow us to determine whether, in the case of the Polish context, the matter requires further pursuit. The remainder of this chapter is structured as follows: first, we discuss the internationalization models which commonly referred to the international expansion of SMEs. Secondly, we discuss how digitalization can influence the process and its determinants. Finally, we present our research results based on quasi-focus group discussion with Polish SMEs. The study concerned the impact the digitalization has on the internationalization experience of those companies.
... Another key decision linked to the configuration of the value chain is where to locate activities-in the home country or some other country or region. To make the best decision, entrepreneurs should analyze the interaction between the comparative advantages of the country and the firm (Kogut, 1985). In recent decades this analysis has led firms to disperse their value chains internationally, in search of-among other things-more competitive costs and/or higher quality resources. ...
Great Transformations like the Digital Transformation and Sustainability Transformation, their challenges and their consequences for society are increasingly discussed in theory and practice. In this context, especially the issue of dealing with fundamental and profound changes in economy, politics and society is coming to the fore. In countries with liberal democratic systems such as Germany, an entrepreneurial mindset is granted an important role in dealing with these transformations in a proactive and formative way. Thus, the issue as to how more entrepreneurial individuals and organizations—and therefore more “out of the box thinking”—can systematically be tapped and developed in Germany becomes essential. To this end, this chapter proposes a newly conceptualized interdisciplinary and integrative approach, which was distinctly designed for the addressing and winning of entrepreneurial individuals and organizations in a systematic and targeted manner. Because it is specifically tailored to the prevailing circumstances and structures in Germany, the approach emphasizes enlightened, voluntary and self-sustaining actions. Doing so, it offers an effective, but also legitimate way to address and win entrepreneurial personalities and organizations to contribute to actively shaping the Digital and Sustainability Transformation.
... Another key decision linked to the configuration of the value chain is where to locate activities-in the home country or some other country or region. To make the best decision, entrepreneurs should analyze the interaction between the comparative advantages of the country and the firm (Kogut, 1985). In recent decades this analysis has led firms to disperse their value chains internationally, in search of-among other things-more competitive costs and/or higher quality resources. ...
The chapter sketches the past, present, and potential future of the dynamic capabilities framework. This essay is more by way of a personal reflection on the progress that has been made to date and the work remaining to be done. The dynamic capabilities framework has proved fertile ground for research and there is no evidence its momentum is slowing. In addition, I see the framework having numerous potential applications, several of which I have addressed in my own writing: (1) dynamic capabilities can serve as an overarching paradigm for teaching in business schools; (2) dynamic capabilities can potentially be built into a theory of the firm; and (3) dynamic capabilities is a policy tool for industrializing economies to help them understand the difference between accumulation and assimilation. Finally, innovation, including digital transformation, corporate entrepreneurship, and organizational behavior also contribute to the theoretical soundness of the dynamic capabilities framework.
... Another key decision linked to the configuration of the value chain is where to locate activities-in the home country or some other country or region. To make the best decision, entrepreneurs should analyze the interaction between the comparative advantages of the country and the firm (Kogut, 1985). In recent decades this analysis has led firms to disperse their value chains internationally, in search of-among other things-more competitive costs and/or higher quality resources. ...
This paper aims to predict customer engagement behaviour (CEB), i.e. likes, shares, comments, and emoji reactions, on company posts on Facebook. A sample of 1109 brand posts from Facebook pages in Lithuania was used. The Random Forest method was used to train models to predict customer engagement behaviour based on features including time frame, content, and media types of brand posts. The data was used for training nine binary classification models using the Random Forest method, which can predict the popularity of a company’s posts. In terms of social score, accuracy of likes, comments, and shares varied from 68.4% (likes on a post) to 84.0% (comments on a post). For emotional responses, accuracy varied from 65.6% (‘wow’ on a post) to 82.5% (‘ha ha’ on a post). The data was collected from one single media platform and country, and encompassed emotional expressions at an early stage on Facebook. The findings of Random Forest prediction models can help organisations to make more efficient solutions for brand posts on Facebook to increase customer engagement. This paper outlines the first steps in creating a predictive engagement score towards diverse types of brand posts on Facebook. The same approach to features of brand posts might be applied to other social media platforms such as Instagram and LinkedIn.
... Another key decision linked to the configuration of the value chain is where to locate activities-in the home country or some other country or region. To make the best decision, entrepreneurs should analyze the interaction between the comparative advantages of the country and the firm (Kogut, 1985). In recent decades this analysis has led firms to disperse their value chains internationally, in search of-among other things-more competitive costs and/or higher quality resources. ...
Eye-tracking application in social sciences including entrepreneurship education has increased significantly in the recent years. This technology has been used to investigate the learning process and how to foster it through instructions delivered, material used and the learning environment created. Traditional research with eye-tracking application mainly concentrates on visual aspects in the learning process including but not limited to text comprehension. A growing area of eye-tracking technologies is focused on entrepreneurship education including teacher education because schools are considered as an important stage for developing entrepreneurial competences.
In general, the area of the application of eye tracking has become extremely wide in different sciences which also positively contributes to research in education. Transdisciplinary and multidisciplinary approaches are helpful to ensure multiple perspective as well as to ensure the validity of research data and results.
This chapter is an attempt to critically reflect on how eye-tracking methodology is applied for research on entrepreneurship education and what are growing methodological challenges in it. At the end some implications for further studies in the field of entrepreneurship education are discussed as well as limitations of eye-tracking-based studies are highlighted.
... Another key decision linked to the configuration of the value chain is where to locate activities-in the home country or some other country or region. To make the best decision, entrepreneurs should analyze the interaction between the comparative advantages of the country and the firm (Kogut, 1985). In recent decades this analysis has led firms to disperse their value chains internationally, in search of-among other things-more competitive costs and/or higher quality resources. ...
Digitalization of business is one of the driving forces in today’s environment and seems to be an irreversible trend. At present we can observe not only a digital transformation of firms but also the emergence of firms that are digital from inception. The born digital firms have characteristics that allow them to quickly expand on international markets and stay competitive for sustained periods of time. The purpose of this study is to analyze the characteristics of born digital firms that lead to sustainable competitive advantage and to develop a conceptual model that will serve as a basis for future research. Various sources of born digitals’ competitive advantage are revealed, such as innovativeness, creativity, responsiveness, digital technology, and digital skills of their employees. One of the key findings is highlighting the role creativity plays in how responsive born digital firms can be in times of change, a characteristic that supports their sustainable competitiveness. The newly defined born digitals’ characteristics and sources of competitive advantage should embrace the approach to their competitive advantage across different markets as a complex dynamic construct that is presented, which includes technology advantage, human capital advantage, but also differentiation advantage.
... Another key decision linked to the configuration of the value chain is where to locate activities-in the home country or some other country or region. To make the best decision, entrepreneurs should analyze the interaction between the comparative advantages of the country and the firm (Kogut, 1985). In recent decades this analysis has led firms to disperse their value chains internationally, in search of-among other things-more competitive costs and/or higher quality resources. ...
This chapter analyzes the configuration of global value chains in the digital entrepreneurship age by clarifying past contributions, examining work resulting from the Covid-19 pandemic, and outlining suggestions for future research. First, we provide a conceptual framework to understand how digitalization has driven its transformation. Specifically, we discuss the main changes in the slicing of value chain activities, the control and location decisions of these activities, and the paradoxical role played by digital technologies in shaping the way entrepreneurs organize them. In doing this, we highlight the location paradox, which rests on the idea that digital technologies help firms expand their geographical scope and reduce co-ordination costs in large and dispersed networks (which favors offshoring), while reducing the importance of the location of activities and shortening supply chains (which favors reshoring). Second, we critically review the research on value chain configurations that has appeared because of the Covid-19 pandemic. Lastly, we discuss some promising areas of research that could yield insights that will advance our understanding of value chain configurations in the digital entrepreneurship age.
... Another key decision linked to the configuration of the value chain is where to locate activities-in the home country or some other country or region. To make the best decision, entrepreneurs should analyze the interaction between the comparative advantages of the country and the firm (Kogut, 1985). In recent decades this analysis has led firms to disperse their value chains internationally, in search of-among other things-more competitive costs and/or higher quality resources. ...
Recent changes in education due to COVID-19 required a shift from classroom to online delivery. This chapter illustrates how a highly complex training program, Ideas to Innovation (i2i), responded to this challenge. i2i is based on experiential learning including a variety of activities carried out both in large and small groups with the intention to raise delegates’ entrepreneurial self-efficacy. In this case study, we illustrate the process by which the program was delivered online for the first time since its existence and how the online delivery of an entrepreneurial program contributed to participants raised level of entrepreneurial intent. We took a qualitative approach by conducting structured (written) and semi-structured interviews with participants. We triangulated the data with insights and reflections of the facilitators engaged in the online delivery. The findings indicate that even when i2i is delivered online, it raised participants’ level of entrepreneurial intent. We also found that digital interaction and collaboration among participants and facilitators on various platforms promoted the development of an entrepreneurial mindset. By highlighting this change in delivery and design, we contribute to the ongoing debate of digitally supported education for entrepreneurship and provide insights to redesign entrepreneurial training programs.
... Another key decision linked to the configuration of the value chain is where to locate activities-in the home country or some other country or region. To make the best decision, entrepreneurs should analyze the interaction between the comparative advantages of the country and the firm (Kogut, 1985). In recent decades this analysis has led firms to disperse their value chains internationally, in search of-among other things-more competitive costs and/or higher quality resources. ...
There is substantial knowledge about the peculiarities of founding entrepreneurial ventures in general. However, comparatively little is known so far about the characteristics of establishing sustainable ventures aiming at solving ecological or social problems in society. It is particularly uncertain how sustainable entrepreneurs could attain a successful upscaling of their venture ideas to expand their impact from a local niche at origin towards reaching broader society-wide impact. At this junction between local niche and the wider societal regime or landscape level, entrepreneurial ecosystems may play a key role in providing instrumental support for sustainable ventures. Entrepreneurial ecosystems offer initial support in the formation of new sustainable ventures but, also later, helping sustainable entrepreneurs in the upscaling of their sustainable venture ideas. In this chapter, we explore how entrepreneurial ecosystems could support the expansion of sustainable ventures and help overcome the barriers and dilemmas for successful sustainability upscaling.
The conceptual chapter discusses selected issues in the upscaling of sustainable ventures in the ecosystem context alongside typical barriers and dilemmas in sustainability upscaling. The contribution attempted in this chapter is to build a bridge between the literature strand on upscaling within sustainable innovation and the discussion of supportive ecosystems in the field of entrepreneurship. For example, we address the composition of ecosystem stakeholders and the importance of keeping a shared sustainability orientation in the ecosystem while integrating diverse stakeholders who provide resources for the upscaling process. The discussion in this chapter is based on reviewing recent literature on the upscaling phenomenon in sustainable innovation as well as on entrepreneurial ecosystems and sustainable entrepreneurship. In particular, we suggest that upscaling in entrepreneurial ecosystems may be understood as an open-ended evolutionary process, with ecosystem networks and stakeholder collaboration providing stable spaces for reflexive discourse and learning.
... Another key decision linked to the configuration of the value chain is where to locate activities-in the home country or some other country or region. To make the best decision, entrepreneurs should analyze the interaction between the comparative advantages of the country and the firm (Kogut, 1985). In recent decades this analysis has led firms to disperse their value chains internationally, in search of-among other things-more competitive costs and/or higher quality resources. ...
This edited collection explores the past, present, and future of artificiality and sustainability in entrepreneurship, the unforeseen consequences, and how to head forward to a sustainable future. First, we integrate the concepts of entrepreneurship and artificiality. We propose that entrepreneurs produce artefacts of entrepreneurship—new ventures, entrepreneurial firms, etc.—that have functions and goals set to respond to the conditions of the diverse environments in which they operate. Second, we contend that the prevailing technological environment can be perceived as an artefact that significantly impacts entrepreneurs, new ventures, and entrepreneurial firms. Digital technologies effectuated new forms of ventures such as born-digital and transformed incumbents to adopt them. Digital technologies come with virtualising our everyday environments and induce behavioral and cognitive changes, which call for new capabilities, e.g., dynamic capabilities. Finally, we conclude with further research questions to be addressed by the entrepreneurship, technology management and sustainability scholars.
... Dunning's Eclectic Theory explains the influence of ownership (O), location (L) and institution (I) advantages on the international production of firms, postulating that firms must possess advantages specific to the nature or nationality of their ownership to compete with local firms of the host country, and these advantages must be sufficient to compensate for the cost of setting up and operating in host countries. Dunning (1988) and Kogut (1985) argue that firms carry out international operations if there are transaction gains likely to result from the common governance of activities in different locations, including enhanced arbitrage and leverage opportunities, market hedging, better coordination of financial decisions, multiple-sourcing strategy, the possibility of gains through transfer price manipulation, leads and lags in payments, and so on. There are also long-term factors which will influence whether firms invest in foreign countries such as the size of the domestic market, geographical distance between the home country and its market, psychic distance, and the industrial structure of investment (Dunning 1979). ...
Penrose analysed why some firms succeed in growing – what the factors are that enable growth, and the ways in which success can breed success, with enhanced capabilities enabling growing market share (or sales), and with increased revenues and profitability enabling those capabilities to be further developed. There is a separate question as to why firms expand their operations internationally. In this paper, we analyse a sector that in Edith Penrose’s day operated almost exclusively domestically, namely the ‘consulting engineering’ sector. We consider why firms in this sector are now increasingly operating internationally. In doing so, we consider whether the factors identified – by Penrose and others – as causing firms to grow are also relevant to the expansion of these firms overseas. Our findings support Penrose’s Resource-based Theory, which argues that unique strategic resources that are inimitable and non-substitutable can provide firms with competitive advantages. Internationalisation provides consulting engineering firms with the opportunities to explore and obtain different kinds of expertise and resources from other regions. With a larger pool of expertise to draw from, firms can develop their firm-specific strategic assets and technical advantages.
... More sophisticated and higher value-added activities are generally under the direct control of advanced economy lead firms, initially concentrated in their home country and more recently dispersed across selected locations (Contractor et al., 2010;Nieto & Rodríguez, 2011). More standardized and lower value-added activities are outsourced offshore to suppliers in emerging economies for cost efficiencies (Kogut, 1985;Mudambi, 2008). ...
Extending the resource-based view that location characteristics influence firms’ resources and internationalization, we argue that the global value chains (GVCs) of lead firms from emerging and advanced economies differ in three dimensions: objectives, trajectory, and governance. First, because GVC objectives are driven to resolve home-country endowment deficiencies, we propose that emerging market lead firms use GVCs to upgrade resources while advanced economy lead firms do so to distribute activities. Second, as GVC trajectory reflects home country consumer characteristics, we argue that emerging market lead firms expand abroad to accumulate additional value-added segments of their GVCs to serve more sophisticated demands, while advanced economy lead firms disaggregate simplified segments to reduce costs. Third, since GVC governance reflects the home-country institutional quality, we propose that emerging market lead firms use more internalization, particularly acquisitions, to exert control in their GVCs, while advanced economy lead firms rely more on externalization, especially offshore outsourcing.
... Specifically, family firm internationalization helps strengthen relationships with international employees and partners who lead to the business continuity in the long run (De Clercq et al., 2005;Mitter and Emprechtinger, 2016). Business continuity can also be strengthened by the diversification of country-specific risks, reducing dependence on home country-based suppliers and customers (Kogut, 1985). These may be crucial issues for family CEOs who value the continuity of the family business and can bring them closer to the subsequent generations' preferences for family firm internationalization. ...
Purpose
The study aims to analyze for the Spanish context the influence of the involvement of several generations in the firm's management on family firm internationalization. The authors also respond to the call in the literature to consider the influence of SEW on family firm internationalizations by analyzing the moderating effect of the importance family managers attach to each of the socioemotional wealth (SEW) dimensions – enrichment, continuity and prominence on the relationship between multiple generations involved in management and family firm internationalization.
Design/methodology/approach
The information was obtained by means of a questionnaire sent to the CEOs of family businesses. The authors’ sample consists of 147 Spanish family firms.
Findings
The authors find that the involvement of multiple generations in management is positively related to the internationalization of family firms. Furthermore, the importance that family CEOs attribute to the enrichment dimension of SEW reduces the intensity of the effect of the involvement of several generations in management on family firm internationalization.
Originality/value
The authors’ results, for the Spanish context, complement previous studies (Meneses et al. , 2014) showing that the entry of new generations into the family business opens a window of opportunity for the internationalization of the family business. Furthermore, their study shows that the diverse family objectives by CEOs can have different, even conflicting effects on the internationalization decision. These results suggest that the enrichment dimension, which focuses on the short-term family goals may restrain the internationalization of the family business. However, continuity and prominence dimensions, which are related with long term family objectives and jointly enable the fulfillment of nonfamily stakeholders’ objectives, do not influence the internationalization of the family firms analyzed.
... An MNE's network of international operations can be seen as a portfolio of switching options that enables the shift of activities, input factors, and other resources in response to changes in environmental conditions (Kogut, 1985;Kogut & Kulatilaka, 1994). In other words, the value of a foreign subsidiary as an option depends on the extent to which the subsidiary contributes to the MNE network by delivering the resources the MNE needs. ...
This study aims to open the black box of heterogeneous responses to violent conflicts by focusing on subsidiaries’ operational exposure to violent conflict and their decisions to exit host countries. Drawing on real options theory, we propose a viable approach multinational enterprises can take when they encounter violent conflicts in their operating locations. Our analysis of 3,479 foreign subsidiaries operating in 11 countries over 26 years suggests that the exit decision of any given subsidiary located in a conflict-affected country depends on its operational scope. However, this effect depends on the characteristics of the operations the subsidiary undertakes, specifically, whether the subsidiary conducts natural resource-seeking operations and the degree of operational overlap with the same-parent affiliates.
... Perez and Soete [43] clearly stated that "every technological revolution forms a suitable technological and economic paradigm". At present, it is in the changing period of iterative new technology and economic paradigm. ...
A country’s manufacturing industry is often an important route for national prosperity, but it is also a conduit by which a digital economy may become truly useful. This is so the deep integration of the digital economy and manufacturing industry can enhance independent innovation efficiencies, promote the development of advanced manufacturing clusters, and constantly spawn new models, forms of business, and industries. Consequently, it is crucial to improve China’s global manufacturing value chain. This article starts with an analysis of the development status and competitiveness of the digital economy in China and abroad. It establishes a structural equation and uses the latest data from the World Input-Output and Asian Development Bank databases. It introduces new variables, such as digitization, research and development (R&D) investment, and industrial scale to empirically analyze China’s manufacturing industry’s global value chain (GVC). The results show that the digitization of China’s manufacturing industry can increase the forward participation of GVC in the manufacturing industry to improve the division status of GVCs. Analyses suggest that due to insufficient R&D investment in the division of labor in the GVCs, China’s manufacturing industry is prone to low-end lock-in, inefficient industrial structures, and weak innovation ability. Consequently, the following suggestions are proposed: China’s manufacturing industry needs to accelerate digital transformation, increase R&D investment, actively participate in the division of labor in the GVCs, and enhance core competitiveness.
... MNCs may utilize differences in prices and qualities on the various national product, factor and capital markets (Kogut, 1985). Moreover, due to the multiplication of value chain activities, MNCs may react more flexibly to changes in their business environments than their purely domestic competitors. ...
In a widely acclaimed contribution to Management International Review, Hennart (2007) challenged one of the mainstream theories of International Business, the S-curve relationship between multinationality and performance, by arguing that there is no positive impact on performance aside from the scale enhancing effect resulting from increasing multinationality. We examine his arguments by analyzing 3876 firms from Canada, Germany, Japan, the UK and the US over the period from 2002 to 2016. We find that the empirical evidence for a direct positive impact of multinationality on performance is not convincing. However, increasing multinationality leads to a significantly higher firm performance via the economies of scale-channel. Multinationality seems to be more important as a means to increase scale for firms from small home markets compared to firms from large domestic markets. Intangible assets appear to amplify the impact of scale on performance much more than the impact of multinationality on performance. In the end, it's size that matters.
... Regarding the contribution to the strategic management discipline, the application of the ARCTIC framework goes beyond the application of VRIO resources to operations of an individual corporation in individual foreign countries (Kogut 1985;Ghemawat 2007) and thus contributes to a resource-based view on strategy (Barney 1991) in the international and institutional contexts of collaborative ventures. The research has confirmed the six success factors of the ARCTIC framework that enable one to foresee explicit competence-based synergies of collaborative ventures (first proposition). ...
One of the most important questions in business partners’ collaboration is whether their strategies create a collaborative synergy and thus add market value. This paper aims to develop a conceptual framework that will be useful for scholars and practitioners in developing foresight for explicit synergies and valuing tacit synergy in strategic collaborative ventures. The paper comprises a novel theoretical and empirical contribution to the foresight that is required for an explicit competence-based synergy in collaborative ventures from a resource-based view. It employs the ARCTIC framework and values a tacit competence-based synergy using simple and compound real options. Moreover, the paper makes several theoretical and empirical contributions to the study of strategic management, international business, and corporate finance disciplines. Finally, the paper discusses research limitations and future work.
Keywords: explicit synergy; tacit synergy; core competence; the ARCTIC framework; real options; collaborative ventures
... Последовательность производственных и непроизводственных стадий, создающих конечную стоимость товара М. Портер ; Б. Когут [Kogut, 1985]; Г. Джереффи, Дж. Хамфри, Т. Стерджен [Gereffi G et al., 2005] Важно отметить, что степень производственной фрагментации конечна и определяется балансом между снижением производственных и ростом транзакционных и координационных издержек. ...
The motives of internationalization by Japanese companies in Russia have been experiencing upside and down within last two decades. Traditionally, tax advantages and gains are critical supportive argument behind Japanese investments abroad. Locations where governments may set a lower corporate income tax rate as an exception to the general tax regime became attractive destinations for Japan. In this paper we aim at examining the New Tax Convention as a driver for Japanese FDI in Russia. Based on the analysis of economic data, statistics, and related research articles we distinct between “global” and ”transnational” approaches of Japanese investors in Russia.
... In his book Designing Global Strategy, it is mentioned in Value-added Chain of Comparison and Competition that a value chain is a process in which various production factors form various links. Each link produces final products through selective assembly and finally completes the value cycle through trading activities and consumption [17]. Kogut's thought extends the value chain from the enterprise level to the national and regional level, highlights the reallocation of global space and the vertical separation of the value chain, and has a crucial influence on forming the global value chain theory. ...
This paper focuses on the path of China’s participation in global value chain reconstruction and concludes three ways to reconstruct the global value chain: embedding in the global value chain, reconstructing the national value chain, and leading the regional value chain. Based on the value-added accounting system and the latest statistics of the TiVA database, we construct an index system for the path selection of global value chain reconstruction and put forward a more suitable path for different manufacturing industries in China. According to the VRCA index and ranking of each type of manufacturing industry, our study concludes that: transportation equipment manufacturing tends to embed in global value chains; textiles, clothing, leather, and related manufacturing; wood products, paper products, and printing; chemical and non-metallic mineral products; base metals and metal products; computer, electronic, and electrical equipment manufacturing; machinery and equipment manufacturing; and other manufacturing industries tend to dominate the regional value chains; and food and beverage manufacturing and tobacco industries tend to restructure national value chains. Finally, our paper gives suggestions and prospects for path upgrading; promoting the integrated development of e-commerce and the manufacturing industry can enhance the competitive advantages of China’s manufacturing industry and achieve path upgrading and optimization. Furthermore, the two-way nesting of the “Belt and Road” regional value chain and global value chain can help China’s manufacturing industry eliminate the dilemma of low-end lock-in and upgrade from the original low-end dependent embedding mode to the middle high-end hub embedding mode.
... Competitiveness is a multidimensional concept that involves the possibilities of export, the efficient use of production factors and natural resources, and the appropriate use of byproducts. Moreover, the international Sugar Tech strategy design, for exporting byproducts to foreign markets, is also based on the interaction between the comparative advantages of different countries and the competitive advantages of companies (Kogut 1985). ...
Sucrose has been the major commercial product of the sugar industry for decades. Sugarcane is a C4 photosynthetic crop and has great diversification potential. It can be used to produce dozens of bioproducts, apart from ethanol, electricity, paper, vinasse, and other green products of commercial importance already being generated. The optimal processing of sugarcane can yield food, feed, biofertilizers, bioplastics, and biomolecules, apart from sucrose of several applications as sucrochemistry. The diversification of the sugar industry would not only enhance the commercial competitiveness of this sector but will also limit the wastes production from sugar mills, offering environmental benefits. Nevertheless, despite the exceptional possibilities of the biorefinery concept of the sugar industry, the industrial adoption of this strategy has remained limited in most of the sugarcane growing countries for some reasons. In the current scenario of sugarcane agroindustry in many areas of the world, sugarcane diversification is crucial for improving the sugarcane value chain, ensuring the efficient exploitation of sugarcane agriculture, and contributing to the 2030 sustainable development goals. The purpose of this review was to carry out an analysis of the factors and constraints that determine the potential of sugarcane supply areas and sugar mills to establish diversification projects. The analysis presented in this study would serve as a useful guide to formulate strategies for optimal utilization of sugarcane crop and sugar industry wastes, by maximizing its benefits through modifying/converting the sugar mills to so-called bio-refineries. © 2022, The Author(s), under exclusive licence to Society for Sugar Research & Promotion.
Cross-border investment is essential for western China’s globalization. Global value chain (GVC) forms cross-border investment networks between industries in western China and overseas cities. Focusing on GVC, this study uses the social network analysis method, entropy method, multi-index comprehensive evaluation method, and quadratic assignment procedure analysis method to examine the characteristics and influencing factors of the urban networks of research and development (R&D), production, and sales formed as a result of the overseas investments of listed manufacturing companies in western China. Results showed that the three types of investment networks involved multiple industry types and multiple central cities with differentiated diversity and multicentrality. The R&D urban network’s leading sub-industries were the mechanical equipment and instruments, medicine and biological products, and metal and nonmetal industries. The destination cities were mostly those home to educational and scientific research centers. The production urban network’s leading sub-industries were the mechanical equipment, instrument, and food and beverage industries. The destination cities were mostly regional central cities in developing countries. The sales urban network’s leading sub-industries were the mechanical equipment and instrument, metal and nonmetal, and petrochemical and plastics industries. The destination cities were numerous and scattered. In addition, the R&D urban network easily formed specialized clusters, core nodes easily controlled the production urban network, and individual nodes did not easily control the sales urban network. Technological and economic system advantages greatly impacted the three network types. Considering the different influencing factors, this study suggests optimizing the institutional investment environment to narrow the institutional gap, adjusting and optimizing the investment layout to expand overseas markets, and increasing R&D funds to stimulate technological progress and overseas investments in western China.
One of the most important questions in business partners’ collaboration is whether their strategies create a collaborative synergy and, thus, add market value. This chapter aims to develop a conceptual framework useful for scholars and practitioners to the foresight of explicit synergies and value a tacit synergy in strategic collaborative ventures. This chapter is novel theoretical and empirical contributions to foresight an explicit competence-based synergy in international alliance from the resources-based view employing the ARCTIC framework and values a tacit competence-based synergy using compound real option applications. This is the main theoretical contribution of this chapter. Moreover, this chapter makes several theoretical and empirical contributions to strategic management, international business, and corporate finance disciplines. In the end, this chapter discusses research limitations and future work.KeywordsExplicit synergyTacit synergyResource-based viewCore competenceThe ARCTIC frameworkReal optionsInternational alliance
Research Summary
We investigate how the presence of populist rulers affects foreign direct investment in democratic countries. Our analysis sheds light on the mechanisms by which this political force impacts firms' decisions, considering the effect of institutions and internationalization strategies at the firm level in the global arena. We test our theory using instrumental variables with a panel dataset of US multinationals in 37 democratic countries between 1999 and 2020. Our findings suggest that the presence of a populist ruler at the helm of government seems to undermine firms' foreign investment and it is potentially moderated by country‐level institutions and firm‐level internationalization. Collectively, our results offer new insights on how populism affects multinationals' investment decisions, contributing to the literature that examines the relationship between political pressure and investment decisions.
Managerial Summary
Investing in countries with populist rulers poses a challenge for multinationals. Populist leaders constantly threaten to abruptly change the institutions that provide certainty for foreign investments. This study argues that the presence of a populist negatively affects firms' foreign investment, moderated by institutions and internationalization strategies. The adverse impacts of populism on investment are mitigated in countries with robust institutional frameworks. In such cases, the credibility of populists' promises to alter the established “rules of the game” is lower than in countries with weaker institutions. Additionally, by expanding their degree of internationalization, firms are better equipped to navigate the lack of information generated by populist rulers. Our research provides implications for managers in assessing the risks and opportunities associated with investing in such contexts.
A central building block of the prevailing development discourse, which was and remains deeply euro- and ethnocentric, remains the debate between modernization and dependency theories. Although my observations may appear to be a truncated debate from a historical perspective, this paper emphasizes that the fundamental issues that characterized this early discussion still form an essential core to influence current questions about the scope and meaning of development that remain unresolved. The promises of industrial modernization and progress stand on shaky grounds in the face of environmental destruction and decay. The unfortunate but widely accepted label of developing countries as “backward,” as was standard in the 1960 and the 1970s, cemented a widely uncritical belief that development equates with industrial progress, which has proven to be a fatal delusion.
Research Summary
In this second collection of articles relating to global strategy, we address the well‐established but unresolved issue of the relationship between multinationality and performance among multinational firms. The M‐P relationship has been the topic of many articles in many journals for many years, but its true nature is still not established. Both theory and empirical findings provide different and often opposed views, as can be seen in the articles collected here. We see two main perspectives on this issue. Some scholars suggest that differences in data and analytical tools have prevented consistent empirical results, and that more consistent and carefully chosen empirical modeling can yet establish the true M‐P connection. Others believe that basic problems in theory and in building testable frameworks that are truly consistent with theory have made this an inherently intractable problem. The collection provides important articles that test the M‐P relationship as well as critiques from both perspectives. We see considerable power in the view that individual firms are likely to have their own idiosyncratic optimal level of multinationaliation. We finish by calling for and suggesting new approaches to the issue, such as a micro‐foundations approach, as opposed to simply using more sophisticated tools to test problematic models based on well‐established but ultimately inadequate theory.
Managerial Summary
The relationship between the level of multinational diversification and performance in multinational firms is at the heart of global strategy. If operating at ever increasing levels in ever more countries does not provide reliably superior performance, why do firms continue to expand internationally? One view suggests that since firms continue to increase their international presence, there must be some ultimate benefits—difficult as they may be to establish. The opposing view suggests that since an equal amount of research finds no such benefits, it may be that no level of multinational diversification is generally optimal, but that depending on its particular resources and capabilities, experience, industry, and national portfolio, each multinational must discover its own optimal level of cross‐border investment.
Corporate strategy refers to the decisions of a firm’s top management concerning the scope of the firm, in terms of its geographic and product markets, as well as the degree of 10.1057/978-1-137-00772-8_452. Corporate strategy defines the firm in terms of the extent of its international activities, the degree of vertical integration, and the diversity of the product markets in which it competes. Acquisitions, divestments, foreign direct investments and internal capital investments all constitute decisions that are likely to impact on the strategic scope of the firm and thus its corporate strategy.
Since the 1980s, the rapidly evolving globalization has led to the increasing integration of national economies across the world and ushered in the era of global cities. In the meantime, the rapid growth of global trade and foreign direct investment (FDI) driven by multinational corporations has reshaped the spatial structure of the global economy. On the one hand, global value chains (GVCs), which are an important feature of the current global economy, have tightened the ties between countries and cities around the world, creating huge material, information, and money flows, and changed the pattern of the world economy as well as the trade, financial and industrial ties between countries and cities.
Nowadays world trade, investment and production are increasingly built within the framework of global value chains (GVCs), which, as the flagships of the modern economy, form the main directions and pace of development, including both developed and developing countries. China’s accession to the WTO in 2001 entailed not only the strengthening of China’s role in world trade and production, but also symbolized the beginning of China’s accelerated integration into the GVCs. Initially, China was of interest to developed countries as a location with a relatively cheap labour force, but gradually its role in the GVCs changed, and China turned into the largest exporter of intermediate and final demand products in industrial supply chains, primarily in the automotive and electronics industries. In this monograph, the authors aimed to trace kea features, trends and prospects for China’s participation in global value chains.
Multinational firms struggle to find a balance between the degree of integration and standardization of cross-border value-added activities. A major question remains, what are the gains of either internalizing or outsourcing discrete stages of value-adding activities organized by a lead firm? Considering the scale and scope of global production networks, the multinational firm has been a major nexus in studying international business. An integral part of these studies of the strategies and structures of the multinational firm remained the question of how to efficiently organize multiple cross-border business activities within and between firm boundaries. This perspective of the problem neglected the scope of interfirm trade and reduced the governance problem on a too narrow conception of the multinational firm, which was long the dominant focus in IB research. The encompassing and likewise fragmented global division of labor and the global organization of value creation revealed the weakness of this narrow view of the multinational firm.
Rapid industrialization has made China one of the largest pollutant emitters worldwide. The transfer of heavily-polluted industries has become urgent because of environmental problems. Some manufacturing industries, incredibly energy-intensive and pollution-intensive, have been transferred to less-developed areas for lower labor and land costs. In turn, the industrial transfer would also deteriorate the ecological quality of those areas. Along these lines, it is pivotal to examine the two-way interactions from industrial transfer and environmental quality. This paper collected panel data of 30 Chinese provinces from 2000 to 2015, using the GS3SLS method to find the interactive relationship for industrial transfer and environmental quality. The findings show that industrial transfer and environmental quality both have interactive as well as spatial spillover effects on each other significantly. Study results suggest that the industrial transfer of different provinces needs to consider the coordinated development of the whole area. It is recommended to formulate an inter-regional industrial transfer strategy to protect the environment.
Der vorliegende Beitrag gibt einen Überblick über die zentralen Theorien und Konzepte des Internationalen Managements. Aufbauend auf einem Abriss zur institutionellen Entwicklung des Internationalen Managements werden die inhaltlichen Schwerpunkte der Disziplin vorgestellt. Betrachtet man die Herausforderungen, vor denen das Internationale Management als Wissenschaftsdisziplin steht, zeigen sich zahlreiche Parallelen zu anderen Teildisziplinen innerhalb der Betriebswirtschafts- und Managementlehre.
The global selection of production sites is a very complex task of great strategic importance for Original Equipment Manufacturers (OEMs), not only to ensure their sustained competitiveness, but also due to the sizeable long-term investment associated with a production site. With this in mind, this work develops a process model with which OEMs can select the most appropriate production site for their specific production activity in practice. Based on a literature analysis, the process model is developed by determining all necessary preparation, by defining the properties of the selection process model, providing all necessary instructions for choosing and evaluating location factors, and by laying out the procedure of the selection process model. Moreover, the selection process model includes a discussion of location factors which are possibly relevant for OEMs when selecting a production site. This discussion contains a description and, if relevant, a macroeconomic analysis of each location factor, an explanation of their relevance for constructing and operating a production site, additional information for choosing relevant location factors, and information and instructions on evaluating them in the selection process model. To be successfully applicable, the selection process model is developed based on the assumption that the production site must not be selected in isolation, but as part of the global production network and supply chain of the OEM and, additionally, to advance the OEM’s related strategic goals. Furthermore, the selection process model is developed on the premise that a purely quantitative model cannot realistically solve an OEM’s complex selection of a production site, that the realistic analysis of the conditions at potential production sites requires evaluating the changes of these conditions over the planning horizon of the production site and that the future development of many of these conditions can only be assessed with uncertainty.
The concept of enterprise upgrading was first put forward in the late 1990s.
Against the background of economic globalization, the principal problem concerns how EMEs integrate into globalization and further influence the global economy.
The growth in the number of emerging market firms with a global presence highlights the need to better understand how suppliers influence the governance in global value chains (GVCs). However, existing frameworks do not sufficiently elaborate this phenomenon's standing at firm level. Using a multi‐case study of six suppliers in China, this research explains how suppliers can reshape the governance structure with capability development, and thus change the power balance in GVCs. This study highlights governance changes from a supplier‐centric perspective: external governance with decentralized control and internal governance with control integration. More specifically, through the underlying mechanism from a value‐based perspective, suppliers can take greater control of specific value chain activities and move from being a value creator to becoming a value innovator.
The increased participation of emerging market firms in the world economy has changed the dynamics of global competition. In this fast changing scenario researchers need to rethink the assumptions and review constructs employed to explain the internationalization of developed country and emerging market firms. Therefore, the present study attempts to contribute to this discussion by investigating the effects of the direction of specific characteristics of cultural and formal institutional distances between the home and host countries to the performance of foreign subsidiaries operating in Latin America in a quantitative manner using panel data analysis. Sample includes 448 companies (338 from developed and 110 from emerging markets) operating Latin American from 2013 to 2015. We test several models in order to evaluate the implications of the direction of the distances on the performance. By considering the direction and measuring the distances from a high home and low host perspective (and vice-versa) we verify how distances can affect in a positive or negative manner the performance of subsidiaries in the region.
ResearchGate has not been able to resolve any references for this publication.