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Article
Publication date: 10 January 2020

Murat Akpinar

This paper aims to clarify the fit of competitive strategies and firm-specific advantages (FSAs) with country-specific advantages (CSAs) in explaining manufacturing location…

1157

Abstract

Purpose

This paper aims to clarify the fit of competitive strategies and firm-specific advantages (FSAs) with country-specific advantages (CSAs) in explaining manufacturing location choices at product category level in the European automotive industry.

Design/methodology/approach

Seven hypotheses are formulated and tested using binomial logistic regression with data from 148 passenger car models (i.e. product category level) that are sold in Europe and manufactured in countries that offer CSAs of either cost advantages or differentiation advantages. The first four hypotheses test manufacturing location choices of product categories pursuing cost leadership strategy, differentiation strategy, focus strategy and hybrid strategy. The other three hypotheses test whether FSAs of R&D capability, marketing capability and operations capability will impact on the manufacturing location choice. The tests control for the type of passenger cars as well as the manufacturer’s region of origin.

Findings

While pursuing cost leadership strategy leads to manufacturing in countries that offer cost advantages, pursuing differentiation strategy as well as strong R&D capability and marketing capability result in manufacturing in countries that offer differentiation advantages. Focus strategy, hybrid strategy and operations capability do not have an impact on the manufacturing location choice at product category level.

Research limitations/implications

Conducting empirical research at product category level is subject to limitations in the choices of FSAs due to lack of availability of data.

Practical implications

Managers should assess the competitive strategies and FSAs of their product categories and then decide about manufacturing locations based on their fit with host country CSAs. Policymakers should understand the CSAs of their countries and target to attract manufacturing FDI from product categories with matching competitive strategies and FSAs.

Originality/value

The research contributes to discussions in explaining manufacturing location choices. Its originality lies in being the first study to test the fit of competitive strategies and FSAs of product categories with CSAs.

Details

Competitiveness Review: An International Business Journal , vol. 30 no. 3
Type: Research Article
ISSN: 1059-5422

Keywords

Article
Publication date: 27 April 2010

Marc Fetscherin and Mark Toncar

The purpose of this paper is to offer a new perspective of country of origin effects on consumers' brand personality perceptions of domestic and imported automobiles. It aims to…

10900

Abstract

Purpose

The purpose of this paper is to offer a new perspective of country of origin effects on consumers' brand personality perceptions of domestic and imported automobiles. It aims to assess the perceived similarities and differences between automobiles from two countries with respect to the country of origin of the brand (COB) and the country of manufacturing (COM) of that same brand.

Design/methodology/approach

An experimental design was used to investigate developed country consumers' brand personality perceptions of three cars: a domestic car; a car manufactured in a developing country by a developing country manufacturer; and a car from a developing country manufacturer that is manufactured in the developed country. Data were collected in the USA and therefore a US car was used as the developed country car. China was selected as the developing country of origin. A structured questionnaire was used to collect primary data.

Findings

Multivariate analysis of variance indicates that consumers' brand personality perceptions varied according to the country of origin (COB) of the brand and the country of manufacture (COM) of the brand. The COM of a car influenced the perceived brand personality of the car more than the COB. In some respects the Chinese car made in the USA was perceived to have a stronger brand personality than the US car made in China. This suggests that for cars the COM exerts a greater influence on the perceived personality of a brand than the COB.

Research limitations/implications

Future research should take a larger respondent pool, respondents from other countries, other automotive manufacturers as well as assess the impact of COM and COB on purchase intention and behavior.

Practical implications

Manufacturers of cars must understand the effect of COM and COB in order to build, position and protect their brands in international markets.

Originality/value

This paper provides an important contribution to the existing literature and business practice by providing a new perspective on country of origin research by using the multi‐dimensional construct of brand personality and analyzing the relationship between country of origin of a brand and country of manufacturing of that same brand.

Details

International Marketing Review, vol. 27 no. 2
Type: Research Article
ISSN: 0265-1335

Keywords

Article
Publication date: 1 February 2003

Michael K. Hui and Lianxi Zhou

This paper examines the differential effects of countryofmanufacture information on product beliefs and attitudes for brands with different levels of brand equity. Results show…

6531

Abstract

This paper examines the differential effects of countryofmanufacture information on product beliefs and attitudes for brands with different levels of brand equity. Results show that when there is congruence between brand origin and country of manufacture (e.g. a Sony television that is made in Japan), the latter information has no significant effect on product beliefs and global product attitude. When countryofmanufacture information indicates that a branded product is made in a country with a less reputable image than that of the brand origin (e.g. a Sony television that is made in Mexico), the information produces more negative effects on product evaluations for low equity brands than high equity brands. These results can be attributed to two different perceptual processes through which incongruent countryofmanufacture information affects product evaluations for brands with different levels of brand equity.

Details

European Journal of Marketing, vol. 37 no. 1/2
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 17 May 2018

Gabriella Engström, Kristina Sollander, Per Hilletofth and David Eriksson

The purpose of this study is to explore reshoring drivers and barriers from a Swedish manufacturing perspective.

3522

Abstract

Purpose

The purpose of this study is to explore reshoring drivers and barriers from a Swedish manufacturing perspective.

Design/methodology/approach

This paper is a case study, including four Swedish manufacturing companies, with focus on drivers and barriers from the context of the Swedish manufacturing industry. A literature review of previously established drivers and barriers is used to map out the empirical findings and thereby identify potential gaps between the current body of literature and drivers and barriers from a Swedish manufacturing context.

Findings

The findings of the study suggest that quality issues continue to be one of the strongest reshoring drivers. Except for product quality, quality is also connected to host country’s infrastructure, communication and service. The supply chain perspective is a source of several drivers and is identified as a perspective often overlooked in offshoring decisions. Barriers related to firm specifics were more elaborately discussed by the companies, especially concerning calculation of location decision and the need to invest in resources, which allows for a higher level of capacity at the home country facility.

Research limitations/implications

The study develops a structured table of reshoring drivers and barriers which can serve as a base for future research. Future research on the calculation of location decisions is deemed as a crucial step to further understand reshoring and aid companies in the decision-making process.

Practical implications

The drivers and barriers identified in the study can give practitioners insight into reshoring from the perspective of the Swedish manufacturing industry and thus aid in future manufacturing location decisions. The table of drivers and barriers can also be important to understand how Sweden can strengthen its competitive advantage and motivate more companies to reshore manufacturing.

Originality/value

This is one of only few papers from the Nordic countries and also one of few case studies examining reshoring in manufacturing companies.

Details

Journal of Global Operations and Strategic Sourcing, vol. 11 no. 2
Type: Research Article
ISSN: 2398-5364

Keywords

Article
Publication date: 1 February 1996

Guido Giacomo Preparata and John E. Elliott

The passionate debate, among policy makers and theorists, over the appropriateness of protecting infant industries in developing countries was one of greatest interest in the…

2460

Abstract

The passionate debate, among policy makers and theorists, over the appropriateness of protecting infant industries in developing countries was one of greatest interest in the economic literature of the eighteenth and nineteenth centuries. On one side of the argument are the British advocates of free trade, concocting subtle arguments to neutralize the boisterous aspirations of insubordinate colonies (and former colonies) yearning for independence; on the other, the standard‐bearers of Economic Nationalism, responding fiercely to the incessant firing of classical contentions. Such reaction to laissez‐faire economics gave birth to a corpus of ideas which was to form the core intellectual bulwark of commercial protectionism and cultural freedom. Discusses and comments on the conflicting views which animated the confrontation through examination of the major works of the most illustrious exponents of both factions.

Details

International Journal of Social Economics, vol. 23 no. 2
Type: Research Article
ISSN: 0306-8293

Keywords

Article
Publication date: 13 February 2017

Richard Grabowski

The purpose of the paper is to determine why premature deindustrialization is occurring in many developing countries.

1025

Abstract

Purpose

The purpose of the paper is to determine why premature deindustrialization is occurring in many developing countries.

Design/methodology/approach

A theoretical structure for explaining premature deindustrialization is utilized. Then the comparative experiences of a number of developing countries are used to illustrate the operation of the theory.

Findings

The results indicate that increasing inequality among a number of developing countries has reduced the domestic market for labor intensive manufactured goods, resulting in stagnation in manufacturing. Also, the increasing inequality in developed countries has reduced international demand for labor intensive manufacturing. Thus developing countries have fewer opportunities to export labor intensive manufacturing.

Research limitations/implications

Data on inequality is limited and it is very difficult to determine causality. However, intuition indicates that causality is most likely bi-directional.

Practical implications

Strategies of economic development must concern themselves with the effects that increasing inequality will likely have on the development of labor intensive manufacturing.

Social implications

Social programs that bolster the purchasing power of poor families are likely to be important (social safety net). Broad-based agricultural growth will provide a basis for labor intensive manufacturing.

Originality/value

The originality stems from the linking of deindustrialization with rising inequality.

Details

International Journal of Social Economics, vol. 44 no. 2
Type: Research Article
ISSN: 0306-8293

Keywords

Article
Publication date: 1 November 2003

Mrugank V. Thakor and Anne M. Lavack

Reviews recent work in the country of origin and brand name literatures regarding the formation of perceptions regarding perceived brand origin. Based on this review, presents six…

17198

Abstract

Reviews recent work in the country of origin and brand name literatures regarding the formation of perceptions regarding perceived brand origin. Based on this review, presents six hypotheses concerning such perceptions, including their effect on consumers’ ratings of quality. Using real brands in two experiments, finds support for several of our hypotheses relating to the effects of country of component source, country of manufacture, and country of corporate ownership. In particular, finds that country of manufacture had no effect on product quality evaluations when country of corporate ownership was also present.

Details

Journal of Product & Brand Management, vol. 12 no. 6
Type: Research Article
ISSN: 1061-0421

Keywords

Article
Publication date: 1 January 2012

Yi‐Min Chen and Yi‐Fan Su

This paper aims to investigate the effects of countryofmanufacture (COM) and countryof‐design (COD) on industrial brand equity.

2964

Abstract

Purpose

This paper aims to investigate the effects of countryofmanufacture (COM) and countryof‐design (COD) on industrial brand equity.

Design/methodology/approach

A conceptual framework to assess how international buyers evaluate industrial brand equity when confronted with a single cue and multiple cues is proposed. Data for testing the hypotheses are collected through fax, e‐mail, and online surveys of managers from 102 industrial buyers of Taiwanese fasteners. A quantitative study is undertaken of 64 respondents using PLS analysis.

Findings

The main finding is that the single‐cue framework produces more statistically significant COM and COD effects on industrial brand equity than does the multiple‐cue framework. The current results confirm previous findings that the countryof‐origin effects based on single‐cue and multiple‐cue studies produce conflicting and inconclusive results.

Research limitations/implications

These findings underscore the findings that the impacts of COM and COD on industrial brand equity are jointly determined by study characteristics, research designs, and the nature of the dependent variable being investigated.

Practical implications

A clear implication for managers responsible for branding and communicating B2B products in international markets is to continue to create clear awareness of the offering and to provide appropriate imagery for consolidating the reputation of firms in both their internal (product) and external (countryof‐origin) dimensions.

Originality/value

While countryof‐origin and consumer products have been widely studied in the literature, the paper examines the effects of COM and COD on industrial brand equity in analyzing the process by which international buyers evaluate brand equity when confronted with a single cue and multiple cues.

Details

Journal of Business & Industrial Marketing, vol. 27 no. 1
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 1 May 1999

Sükran N. Kadipasaoglu, Julio L. Peixoto and Basheer M. Khumawala

The global manufacturing research group (GMRG) is a multi‐national group of researchers who are dedicated to the study and improvement of manufacturing practices worldwide. The…

1089

Abstract

The global manufacturing research group (GMRG) is a multi‐national group of researchers who are dedicated to the study and improvement of manufacturing practices worldwide. The GMRG developed a survey that has been administered to companies in the machine tools and non‐fashion textile industries. In this study we utilize the GMRG data collected during 1993‐1995 and we focus on improvement programs and their impact on performance outcomes. Specifically, the improvement programs of interest are cellular manufacturing, factory automation, just‐in‐time (JIT) systems, and total quality management (TQM); the performance measures used were the percentage change in manufacturing cost, product quality, delivery speed, and on‐time deliveries. The relationships among the programs and outcomes were modelled and analyzed using the partial least squares (PLS) approach to structural equation modelling (SEM).

Details

Industrial Management & Data Systems, vol. 99 no. 3
Type: Research Article
ISSN: 0263-5577

Keywords

Book part
Publication date: 8 November 2003

Elizabeth F Vann

This essay examines a common assertion among middle-class shoppers in Ho Chi Minh City, Vietnam, that place of manufacture, rather than brand markers, largely determines the…

Abstract

This essay examines a common assertion among middle-class shoppers in Ho Chi Minh City, Vietnam, that place of manufacture, rather than brand markers, largely determines the quality of goods. For shoppers in Ho Chi Minh City, unity of place, people, raw materials, and trade secrets at the source – a corporation’s home country – is essential to the production of high quality goods. This stands in contrast to the brand logic through which corporations outsource their production presumably without compromising product quality. By privileging production sites over brands, shoppers in Ho Chi Minh City interpret the recent increase of famous foreign brand name goods in Vietnam as an increase of domestic, rather than foreign goods.

Details

Anthropological Perspectives on Economic Development and Integration
Type: Book
ISBN: 978-0-76231-071-5

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