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The purpose of this paper is to understand the antecedents of small and medium-sized enterprises (SME) internationalization for a small set of Mexican ICT entrepreneurial firms, connected with subsectoral positions in a smile-shaped curve. Such antecedents constitute exploratory patterns related to simplified internationalization characteristics in terms of market choice, founder background and aspatial affiliations, providing a complementary technique to identify elements that shape SME internationalization in Latin America.

A value-added “smiling” curve is sketched according to North American Industry Classification System (NAICS) industry classification, mapping a non-probabilistic purposive sample of Mexican SMEs. The csQCA has been applied to the sample based on secondary data. Mexico’s ICT export behavior is also analyzed.

Internationalized SMEs in the sample tend to group in patterns that approach higher value-added positions in the “smiling” curve, exemplifying a type of non-geographic clustering. Particular groups seem to precede market selection (North America vs Latin America). The founder’s background does not determine internationalization choices. The sample included counterexamples (new entrants, limited cases involving research and development activities), which when analyzed suggest relevant literature validations.

This research contextualizes sectoral SME internationalization from a Latin American perspective, identifying simple patterns around particular ICT subsectors. It focuses on a type of international entrepreneurship that becomes exceptional in developing regions: technology-oriented. csQCA is presented as a preliminary (exploratory) technique to draw alternative theoretical frameworks for SME internationalization, specifically, market selection and aspatial cluster behavior around value-added chains, leading to new theoretical perspectives in SME internationalization.

Esta investigación persigue un entendimiento de los antecedentes en la internacionalización de la PyME para un pequeño conjunto de negocios mexicanos de TIC emprendedores, en conexión con posiciones subsectoriales en una curva con forma de sonrisa. Dichos antecedentes constituyen patrones exploratorios relacionados con características de internacionalización simplificadas, en función de la selección del mercado, los antecedentes del fundador, y las afiliaciones no espaciales, ofreciendo una técnica complementaria para la identificación de elementos que moldean la internacionalización de la PyME en América Latina.

Una curva de valor añadido en forma de “sonrisa” es delineada de acuerdo con la clasificación industrial SCIAN, mapeando una muestra deliberada no probabilística de PyMEs mexicanas. csQCA ha sido aplicado a la muestra con base en datos secundarios. El comportamiento exportador de México en TIC es analizado también.

Las PyMEs internacionalizadas en la muestra tienden a agruparse en patrones que se aproximan a las posiciones de mayor valor añadido dentro de la curva de la “sonrisa,” ejemplificando un tipo de conglomerado no geográfico. Ciertos agrupamientos parecen prevalecer respecto a la selección del mercado (América del norte vs. Latinoamérica). Los antecedentes del fundador no determinan las opciones de internacionalización. La muestra incluyó contraejemplos (nuevos participantes, casos limitados que involucran actividades de I+D), los cuales sugieren validaciones relevantes de la literatura una vez analizados.

Esta investigación contextualiza la internacionalización sectorial de la PyME desde una perspectiva latinoamericana, identificando patrones simples alrededor de subsectores particulares de TIC. Se enfoca en un tipo de emprendimiento internacional que llega a ser excepcional en regiones en desarrollo: orientado a la tecnología. csQCA se presenta como una técnica preliminar (exploratoria) para delinear marcos teóricos alternativos para la internacionalización de la PyME, específicamente, selección del mercado y comportamiento de conglomerados no espaciales alrededor de cadenas de valor añadido, llevando a nuevas perspectivas teóricas en la internacionalización de la PyME.

Although there have been many discussions on the status and development of original equipment manufacturers (OEMs), theory on how they survive is minimal. Little is known about how OEMs survive and upgrade to other business models, such as original design manufacturers (ODMs) and original brand manufacturers (OBMs), in emerging economies. The purpose of this paper is to extend the theory on the survival path of OEMs from the perspective of emerging countries by examining how OEMs survive cost pressures and upgrade to ODMs or OBMs.

Using a multi-case study method, this study analyzes the survival path employed by OEMs by examining eight firms in the Chinese toy industry.

This study shows that OEMs remain weak in the global toy industry chain due to labor costs. While some OEMs move to low-cost regions, others turn to OBM management, after transitioning through an ODM model, by investing in research and development and marketing.

This study explores the survival paths of OEM enterprises, showing that OEMs can first upgrade to ODMs and then to OBMs, or they can directly upgrade to OBMs. Shifting from OEM to ODM is an important step in the transition process, although the contract that OEMs have with their foreign partners does not change significantly.

This paper aims to investigate if the world top manufacturing corporations' cost structures are moving from tangible to intangible activities and their impact on profitability.

The theoretical approach is interdisciplinary, combining global value chains, international manufacturing networks, cost management literatures. The empirical approach has a sample out of financial statements' data from 220 multinational corporations between 2006 and 2017, grouping them by technological intensity. It is created the “COGS-share” indicator – the ratio between the costs of goods sold and overall costs and expenses – as a proxy for the firms' expenses of tangible and intangible value chain activities. It is tested as an explanatory variable for the companies' profits through dynamic panel data econometric models.

The results show that the cost structure still is very concentrated in tangibles. Though costs of both tangible and intangible activities negatively impact profits, they affect value generation differently: the higher the share of intangible in comparison to tangible activities in overall cost and expenses, the greater the profits in most manufacturing groups, regardless of their technological intensity.

The empirical analysis simplifies the composition of value chains per activity because financial statements data are aggregates, preventing detailed analysis by markets, business units or products. Stocks' levels are assumed to be at the desired level during the time series. The dataset does not allow value curves to be drawn because direct wages' data and more precise information on cost (especially deferred assets and wages) are missing.

The presented approach, particularly the COGS-share indicator, contribute to assess value generation from activities for improving corporate strategies and public policies on operations and cost management of global value chains.

Supporting upgrading decisions that impact value production, allocation and distribution between workers, firms and countries.

Interdisciplinary theoretical and empirical assessment of the manufacturing companies' cost structures and profits based on financial statements data for the better understanding of value generation from tangible and intangible activities.

The purpose of this paper is to integrate the global value chain (GVC) perspective with firms' innovation in emerging economies (EEs) and explain why EE firms can improve their innovation capabilities more from their domestic markets by focusing on R&D and marketing than from original equipment manufacturer/original design manufacturer (OEM/ODM) modes in the GVC and how they contribute to the national innovation system (NIS).

The literature on GVC is reviewed and then several propositions are developed using the example of the underground mobile phone developers in China by integrating the GVC perspective.

The paper proposes that EE firms, especially firms that have a large underdeveloped domestic market such as China, should focus on R&D and marketing instead of on OEM/ODM in GVC to increase their competitiveness and strengthen their NIS. Also implications are drawn from their success in the underground markets to advance knowledge on NIS.

The paper shows that EE firms can build and strengthen their innovation capabilities through intense interaction and learning in domestic markets, which, subsequently, moves them upwards in their GVC. Industrial policy needs to change in order to facilitate such technological entrepreneurship in NIS, whether it is informal or underground.

The objective of this study is to determine how service marketing strategies affect enterprises in the tourism and hospitality industry, especially, operators in small towns that are not tourism destinations and visited only by small numbers of tourists.

This study investigates the impact of 4P strategy implementation on the potential and profitability of service operators in Nong Khai Province, Thailand, by using an econometric model and defining dependent variables in order to classify firm performance into 3 areas, namely, (1) revenue, (2) cost/expense and (3) profit—in log form.

Study results show that tourism and hospitality service operators have to place emphasis on “development,” starting from upstream processes such as research and development and utilizing local wisdom and reflecting cultural identities as well as focusing on downstream activities, including adoption of modern media. At the same time, operators should also emphasize marketing and sales promotions as well as seek publicity through websites and online social media in parallel with developing downstream activities.

This paper only focuses on Nong Khai Province as the research area because, first, Nong Khai has a relatively low income per capita and is located in Thailand's Northeast, the country's poorest region. Second, Nong Khai is a border province, adjacent to the Lao PDR, and thus there are numerous tourists from the Lao PDR and overseas countries who travel in and out of the province through the Thailand–Lao border checkpoints.

Relevant government agencies should provide support throughout the development process from upstream to downstream in order to upgrade the potential of tourism and service operators in this small province by incorporating local identities used for creation of service products and by supporting marketing and sales promotions whether in the form of organizing various exhibitions events, publicity via the Internet, etc.

Raising service standards of an organization and developing an acceptable quality brand and setting fair prices without taking advantage of consumers were strategies that played important roles. This set of strategies was implemented together with a development strategy for people also through the process of team building and knowledge management, including skill development through a training system, which also played an important role toward the sustainability of tourism and hospitality enterprises in Nong Khai Province.

It is believed that this paper is the first study to apply Stan Shih's innovation smiling curve in a small border province of Thailand. This study could shed the light for tourism and hospitality enterprises in a small and poor town in attempt to be the sustainability.

The aim of this study is to examine the “volatility smile” or/and “skew”, term structure and implied volatility surfaces based on those European options written in the standard and poor (S&P) Nifty equity index. The stochastic nature of implied volatility across strike price, time-to-expiration and moneyness violates the core assumption of the Black–Scholes option pricing model.

The potential determinants of implied volatility are the degree of moneyness, time-to-expiration and the liquidity of the strikes. The empirical work has been expressed by means of a simple ordinary least squares (OLS) framework and presents the estimation results according to moneyness, time-to-expiration and liquidity of options.

The options data give evidence of the existence of a classical U-shaped volatility smile for the Indian options market. Indeed, there is some evidence that the “volatility smirk” which pertains to 30-day options and also implied volatility remain higher for the shorter maturity options and decrease as the time-to-expiration increases. The results lead us to believe that in-the-money calls and out-of-the-money puts are of higher volatility than at-the-money options. Conclusion was drawn due to the persistence of the smile in the options market.

The practical implication of studying stylized patterns of implied volatility is that it educates the volatility traders about how in-the-money and out-of-the-money options are priced in the options market, and provides an estimate of volatility for the pricing of future options.

This study is an extension of previous work. The undertaking has been to examine the case of a more liquid and transparent options market, which is missing from the earlier work. The current study is more relevant because, since 2008, significant changes have been observed in the futures and options market in India.

The purpose of this paper is to review the key analytical principles of internalisation theory as a general theory of the multinational enterprise (MNE). It illustrates the vitality, relevance and flexibility of the approach in explaining the continued evolution of the MNE. As a grounded social science theory, it provides, in combination with history and economic geography, satisfying and novel explanations of the key phenomena of the modern globalising economy.

This paper examines the origins and principles of internalisation theory as the foundation theory of the MNE. It considers internalisation theory in the context of current and mainstream theories and concepts in the field of international business.

Internalisation theory is equally valid for the MNEs of yesteryear as it is for those today. The theory continues to have strong explanatory power for MNE activity. Current research areas, such as multiple embeddedness, fine-slicing of the value chain, etc., and other theories, such as dynamic capabilities and the resource-based view, either are subsets of internalisation and thus explained by the theory, or contain weakness and/or inconsistencies not found in internalisation theory.

This paper coherently synthesises internalisation theory, its origins and evolution. It shows how commonly held and current concepts and theories are related to internalisation theory or have weaknesses, thus making internalisation theory a superior theory to explain the MNE, and identifies potential applications of the theory to novel research areas in the field of international business.

The purpose of this paper is to comprehensively review the sources of competitive strength of emerging market multinationals (EMMs). Since most lack firm-specific assets such as internalized knowledge or globally recognized brands, especially in their early international growth, and emanate from less-developed nations, the success of EMMs has to be explained by identifying factors in their home nations and international scope which make these firms internationally competitive.

A comprehensive review of the extant literature and company cases identified several sources of competitive advantage for emerging market firms. Since conclusive evidence is still unavailable, many of these factors are proposed as hypotheses for future empirical research. Where needed, contrary viewpoints are also discussed and cited.

This paper identifies several possible location-specific assets of emerging market companies including the mindset of top management of EMMs (such as long term orientation, global or cosmopolitan perspectives, a degree of humility that recognizes the need to catch-up by learning from foreign allies and customers, tolerance for ambiguity, and frugality) and home country cultural traits such as emphasis on relationships, family control, and private equity capital. Other sources of competitiveness may lie in the home country pool of technical talent and cheap labor, the extensive diasporas of persons of Chinese, Indian and Brazilian origin, and the role of common language as determinants for the geographical pattern of FDI from emerging nations.

This paper serves the dual purpose of providing a comprehensive literature review of this topic for doctoral or Masters students, and specifying hypotheses (as well as opposing views) for further investigation.

Drawing on organizational learning and dynamic capabilities literature, this study aims to explore how suppliers from traditional emerging economies (STEE) can acquire, assimilate and use new knowledge essential for the development of production and marketing capabilities. These capabilities then facilitate suppliers in climbing the value chain from B-to-B to B-to-C.

The study adopted a longitudinal and multiple case study design to examine the practices of suppliers operating in a traditional emerging economy setting. This study selected Pakistan textile industry as an empirical setting, which is a predominantly supplier market for global buyers. Data sources entail semi-structured interviews with top executives and senior-level managers in four case firms and secondary data obtained from diverse sources.

The study identified transitionary phases of capabilities development that are facilitated by boundary-spanning knowledge acquisition and transformation in a dynamic manner. These capabilities are essential for a supplier’s entry into downstream international markets (i.e. launching its own products/brands in the end consumers’ market).

The findings could help managers in STEEs to understand the strategic importance of supply chain ties in their learning and capabilities development. It also provides strategic insights on what, how and why involved parties do engage over an extended period of time. Moreover, the findings of this study could help other firms to know and adopt the right type of technology(s) and systems that can help them reduce the technological gap in producing and marketing market-winning products.

This study advances the recent academic discussion that focusses on learning by supplying and the value-chain movement of suppliers (i.e. B-to-C) from their B-to-B engagements. The findings identified the vital and beneficial role of long-term relationships with global value chain partners in learning and capabilities development that led to value creation in the traditional emerging economy.