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The paper is in the area of international business and international trade. Specifically, this paper aims to focus on cross-border trade flows of goods and services between India and its partner nations.

Using the Cultural, Administrative, Geographic and Economic (CAGE) distance framework (Ghemawat, 2001), this paper provides empirical support for the impact these distance factors exert on the volume of trade in goods and services between countries. The sample used for empirical analysis consists of a set of 62 OECD countries which are involved in trade in goods and services with India over the period 2005 through 2015. This paper estimates a fixed-effects model to provide a comprehensive examination of all the distance factors impacting the bilateral cross-border trade flows of India.

The empirical findings in this paper show that different dimensions of the CAGE distances have varied influence on volume of trade flows between India and its trading partners. Also, the extent of this influence is guided by the nature of industries – manufacturing or services.

Departing from the common practice in the literature, using the trade flow data for both Indian manufacturing and service sectors separately, this paper examines to what extent is the impact of these distance factors industry driven.

The purpose of this paper is to examine how headquarters’ managers perceive – cultural, administrative, geographic and economic (CAGE) – distance between countries and its influence on the strategy of international subsidiaries.

This study applies the transaction cost and behavioural theory and presents an exploratory and qualitative methodology approach through six semi-structured in-depth interviews to evaluate managers’ perceptions of distance between countries.

The research findings show that cultural and economic distances indeed have a major influence on subsidiary strategy and a smaller impact of administrative and geographic dimensions, which results into forced changes on the marketing-mix, i.e. product, price, design and brand, as well as on the level of autonomy granted to foreign subsidiaries.

The limitation is related to the home country and the entry mode of foreign direct investment. The findings presented here reflect the nature and behaviour of Portuguese companies with subsidiaries.

The research provides recommendations for managers to be aware of the influence of more than one dimension of distance between countries to improve their decision-making of standardisation-adaptation strategy for foreign subsidiaries. Furthermore, the study stresses that managers’ perceptions may lead to the conclusion that proximity and knowledge of foreign markets does not make international business easier.

This empirical research not only tests the transaction cost theory and behavioural theory on managers’ decisions to invest abroad but also promotes organisational changes to achieve the suitable strategy for international subsidiaries. The study contributes to the area of international business by positing six research propositions concerning distance between countries to be tested in future studies.

One of major preoccupations of human resources (HR) in recent times has been the challenge of proving its value at the “top table.” Mergers and acquisitions (M&As) may offer one potential solution to this problem. M&As are renowned for the key management problems they generate such as diminished employee engagement and morale and increased staff turnover. However, such challenges also offer opportunities. This paper aims to argue that the recent wave of acquisitions in the pharmaceutical industry present HR with the possibility to demonstrate its real strategic value.

This paper offers an insider–outsider approach to the role of HR in M&As in the pharmaceutical industry. Based on an in-depth study of Sanofi’s emerging M&A strategy, it gives key insights into the reasons for multiple acquisitions and how HR can have a positive impact on value creation.

The findings demonstrate that the repeated acquisitions of US-based biotech companies made by the French pharmaceutical group Sanofi over the past five years is more than just a coincidence. Rather, it is an unstated strategy to develop within this market. HR can aid senior management in overcoming some of the major cultural challenges, thus demonstrating its real strategic value.

This paper clearly shows how following a specific emerging international strategy of M&As can empower a company through its human resources.

Distance is the core concept in tourism. However, previous studies focused on single distance dimensions and generated contradictory findings due to omitted variable biases. This paper aims to introduce the well-established CAGE (cultural, administrative, geographical, and economic) distance framework into international tourism research to measure the comprehensive distance and explore its impact on inbound tourist satisfaction.

The comprehensive distance was calculated based on the Mahalanobis formula. Combining tourist review data from TripAdvisor, this study used ordinary least square regressions to explore the influence of the comprehensive distance on inbound tourist satisfaction and the mediating role of inbound tourist emotion.

Results show that CAGE distance effectively describes the dynamic change in distance. The comprehensive distance also positively impacts tourist satisfaction, and tourist emotion plays a mediating role in this impact.

This paper advances knowledge about distance in international tourism by introducing the CAGE distance framework and addresses the contradictory findings with specific distance dimensions by the comprehensive distance.

距离是旅游的核心概念。然而, 以前的研究集中在单一的距离维度上, 并且由于遗漏变量偏差而产生了相互矛盾的结果。 本文旨在将成熟的 CAGE 距离框架引入国际旅游研究中, 以衡量综合距离并探讨其对入境游客满意度的影响。

综合距离根据马氏距离公式计算。 结合TripAdvisor网站的游客评论数据, 采用普通最小二乘（OLS）回归分析综合距离对入境游客满意度的影响以及入境游客情绪的中介作用。

结果表明, CAGE距离有效地描述了距离的动态变化。 综合距离也正向影响游客满意度, 游客情绪在此影响中起中介作用。

本文通过引入 CAGE 距离框架来提升国际旅游中的距离知识。 本研究还通过综合距离解决了特定距离维度的矛盾发现。

La distancia es el concepto central en el turismo. Sin embargo, estudios previos se han centrado en dimensiones de una sola distancia, generando resultados contradictorios debido a los sesgos por la omisión de variables. Este trabajo tiene como objetivo introducir el marco de distancia CAGE, establecido en la investigación turística internacional, con la intención de medir la distancia integral y explorar su impacto en la satisfacción del turista receptor.

La distancia integral se calculó con base en la fórmula de Mahalanobis. Combinando los datos de reseñas turísticas de TripAdvisor, se utilizaron regresiones de mínimos cuadrados ordinarios (OLS) para explorar la influencia de la distancia integral en la satisfacción del turista receptor y el papel mediador de la emoción del turista receptor.

Los resultados muestran que el modelo CAGE describe el cambio dinámico en la distancia de una forma efectiva. La distancia integral también impacta positivamente en la satisfacción del turista, y la emoción del turista juega un papel mediador en este impacto.

Este documento avanza en el conocimiento sobre la distancia en el turismo internacional mediante la introducción del marco de distancia CAGE. Además, aborda resultados contradictorios con las dimensiones de distancia específicas mediante la distancia integral.

This paper aims to carry out a qualitative analysis to compare India and China as a choice of service-provider from the perspective of Japanese MNEs for information technology (IT)-IT enabled services (ITeS) offshoring destination, using the four dimensions of the cultural-administrative-geographic-economic (CAGE) distance framework by Ghemawat (2001).

This exploratory study used a mix of primary and secondary evidence to carry out a comparative evaluation of the challenges and synergies existent between India and Japan relative to China and Japan, in the context of IT-ITeS offshoring industry. Fourteen semi-structured interviews were conducted with multiple stakeholders and the findings were classified using the CAGE framework.

The paper discusses that for IT-ITeS industry, owing to its characteristics and the changing global order in the post-pandemic world, the “distances” that matter the most for business engagement between countries are – cultural, administrative and economic. Based on the comparative analysis, it was seen that China fares better than India, from a Japanese perspective, for the case of cultural and geographic distances while India had an advantage in the case of administrative and economic distances. Thus, India and Japan seem to have higher synergies and potential mutual gains by expanding engagement in the IT-ITeS industry in future.

One of the limitations of this paper was the lack of comparable secondary data source concerning the size, growth rates, exports, employment figures for China that could have helped establish the contrast in the structure of IT-ITeS industry of India and China.

This study provides a framework for a comparative analysis of multiple facets of “distance” between competing service providing nations at bilateral, as well as unilateral level, in a holistic manner for the IT-ITeS offshoring industry. The results thus provide the gaps that shall be bridged by the policymakers for realizing mutual benefits.

Firms are affected by resources access, capability and unfavourable business environment, but there is little research on how institutions affect small and medium enterprises (SMEs) internationalisation process in developing countries. Drawing on institutional theory, this chapter reviews the variety of institutions (internal and external barriers) and how it affects SMEs’ internationalisation process in the developing world. First, it explores the stages of internationalisation, modes of entry and benefits of internationalisation. Second, it explains the Cultural, Administrative, Geographic and Economic (CAGE framework) distances and theories of internationalisation. Third, it examines the evidence on the role of government in promoting SMEs and drivers of internationalisation. These have significant practical and policy implications, especially for policymakers that are concerned with business reforms and ease of doing business.

The paper is in the domain of marketing strategies of multinational firms. Specifically, it aims to focus on target market selection of multinational firms.

Using the cultural, administrative, geographic, and economic distance framework proposed by Ghemawat, the authors offer empirical support for the role of different distance factors on firms' foreign market acquisition behavior. In addition, they examine the moderating role of market potential of a target country on the relationship between distance factors and target market selection. The context of the paper is multinational firms from developing countries. The sample consists of cross‐border acquisitions (CBAs) completed by firms from 18 emerging countries between 1990 and 2006. The authors use ordinary least squares and moderated regression analysis to determine the main effect of distance factors and the interaction effect of market potential.

The authors find that while cultural and geographic distance factors have a significant, negative impact on the number of CBAs, administrative and economic distances have a significant, positive effect. They also find that the market potential of target countries significantly moderates the relation between the distance factors and the number of CBAs.

The results show that the market potential of countries compensates and sometimes even overrides the role of distance. Future studies should expand this research to include industry‐specific factors.

The paper provides an empirical illustration of Ghemawat's distance framework. In addition, the paper highlights several boundary conditions of the impact of distance factors on firms' internationalization processes. Finally, the study enhances knowledge on foreign market entry behavior of firms from developing countries.

The case study illustrated strategic, marketing, financial and operational challenges faced by Netflix in India's growing SVoD market. This case is appropriate in courses such as Strategic Management, Business Strategy, Marketing Management and International Marketing for postgraduate MBA students, other graduate-level management programs and undergraduate-level students. The case was developed to raise awareness among students, to understand the complex nature of the technology-driven industry, to survive in the highly competitive market, to set up a company that serves the huge Indian market. This case delves into the dynamics of marketing on the Indian market, characterized by unorganized players such as local cable television; torrent downloads and organized and established players, low digitalization rates, language barriers, low internet penetration, lack of infrastructure, price-sensitive consumers. Due to up-gradation in technology, internet penetration, an increase in smartphone users, and the market has undergone a notable amount of change, due to a lot on new entrants, competitions, substitutes. The case states various obstacles, for a multinational company while entering the market such as India and how they are required to strategize, mold their marketing mix, need to analyze en-cash their strength, overcome their weakness, take maximum advantage of opportunities and modify their strategies to face huge challenges. The specific learning outcome of the case will help students to understand the strategy that multinational companies can adopt to sustain, compete in emerging countries such as India and within that emerging market such as streaming videos on demand (SVoD). This case will help students to understand the importance of internal and external resources, which help multinational companies to make strategies based on these resources. The case study offers learners the opportunity to explore the strategy in a dynamic environment. This case also highlights the critical issues that should be addressed by multinational companies when entering into a foreign market. The case highlights the importance of analyzing the competitive environment in which it’s going to compete and sustain. It can be used to introduce Ansoff’s growth matrix, internal and external factor analysis and porter’s five forces in the delivery of course for both regular and executive programs. The case should be offered in the middle term periods of the course. Additionally, the case could be used in marketing courses to indicate the importance of scanning the business environment in marketing activities for any organization. The case illustrates the strategies that companies can undertake to expand the market, introduce new products, as per the requirement of business environment and concerns linked with innovating approaches to support the organization to satisfy a larger number of price-sensitive consumers from varied backgrounds.

Netflix has been optimistic about the potential growth of the Indian market. It will grow slowly and gradually and become profitable. The SVoD market in India has been price sensitive. There are no plans for cheaper prices. Netflix had a long way to go. The pricing model of Netflix was a hurdle in its growth, but the future of Netflix in India was bright. There have been numerous challenges in terms of government regulations, pricing structure and an increase in the number of competitive players on the market. Netflix believed that Indian audiences enjoyed “Bollywood” film productions but watched low-quality soap opera content on television. Television audiences were a massive untapped market for their brand of original, exclusively produced content. Can Netflix come up with a marketing and growth strategy, or else they might be looking to lose market share and revenue. Should a new product such as Amazon and MI fire stick be introduced in the existing market like their competitors? Should they enter the existing market with existing products, or should they seek a new market in India, such as the rural market, the Pyramid market, the Tier II market and the City III market? Should they diversify into a new market with new products? How Netflix should plan its market communication if it wants to launch a new product or if it wants to reposition its existing product. Netflix had to rethink its strategies and also needed to address these issues so that they could travel smoothly on Indian roads. High marketing budget and aggressive promotions helped Netflix India to make a profit in its first year.

Postgraduate MBA students, other graduate-level management programs and undergraduate-level students.

Teaching notes are available for educators only.

CSS 11: Strategy.

This paper aims to provide a personal perspective on the extent to which business schools have globalized what they teach and to make content‐ and process‐related suggestions about how to make further progress.

The paper provides a mixture of quantitative and qualitative/interpretative analysis.

The paper finds that rhetoric around the globalization of business education has greatly outrun the reality of curricular change and this problem seems unlikely to be solved until the craving for distinctively global content can be satisfied.

Semiglobalization – the intermediate state of integration in which neither the bridges nor the borders between countries can be ignored – is proposed as a conceptual umbrella for organizing curricular change and in terms, of process, a two‐track‐approach, combining infusion and insertion, is recommended.

Both the conceptual and procedural recommendations of this paper are novel.

This chapter argues that international business has much to contribute to intranational business in helping develop a theory of the business enterprise in space. It makes its arguments by articulating four propositions about international business that appear to carry over directly to intranational business. According to the first three propositions, business activities of multiple types are dampened by borders and those that do cross them typically diminish with geographic as well as other types of distance. The fourth proposition supplements these general discussions of the landscape of business with a focus on a specific business application: it works through the case of business strategy by discussing how insights from the international domain can be applied to the intranational domain in that field of business.