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Article
Publication date: 19 February 2024

Fiona Maureen Courtens, Elvira Haezendonck and Alain Verbeke

This research aims to provide a new perspective on the evolving linkages between LAs and FSAs in the context of the technology-based manufacturing industry. Firm-level competitive…

Abstract

Purpose

This research aims to provide a new perspective on the evolving linkages between LAs and FSAs in the context of the technology-based manufacturing industry. Firm-level competitive strengths in an international context build upon the combination of (largely) exogenous location advantages (LAs) and endogenous firm-specific advantages (FSAs). The authors focus especially on the decay of LAs over time, which has been observed in many highly developed countries during the past decades. The authors show how the strengthening of FSAs can substitute for decaying LAs, thereby safeguarding against the demise of entire industrial regions.

Design/methodology/approach

The authors examine the technology-based manufacturing industry in Belgium, building upon an analysis of survey responses by 66 firms including a subgroup of 26 multinational enterprise (MNE) subsidiaries. The professional association representing this industry in Belgium (Agoria) viewed the firms included in the survey as representative for Belgian technology-based manufacturing in terms of the LAs they presently build upon (or location disadvantages they face) and the internal strengths they command relative to (foreign) rivals. The investigation uncovered the decay of critical LAs in Belgium and in parallel, the rise of ‘compensating’ FSAs of Belgian operations relative to foreign firms, including, especially, MNE sister subsidiaries in other countries. The authors also conducted 23 in-depth interviews with senior level managers (CEOs and senior vice presidents) of technology-based firms, including 10 subsidiaries of foreign-owned MNEs, which validated our analysis of the interplay between LAs and FSAs.

Findings

The findings reveal that since inception, Belgian manufacturing operations experienced an overall decay in their critical LAs by 23% on average. Despite this, several Belgian subsidiaries of foreign MNEs consider themselves as commanding a resource-base superior to that of the next-best-in-class subsidiaries. Furthermore, when assessing the dynamic interplay between LAs and FSAs, there is some evidence that the decay of LAs fueled the quest for – and firm-level journey toward – stronger FSAs.

Originality/value

The originality of this study is the alternative perspective to the conventionally assumed “positive-positive” relationship between LAs and FSAs. Prior management research has not examined the impact of decaying LAs on new FSA-creation in the realm of technology-based manufacturing.

Details

Competitiveness Review: An International Business Journal , vol. 34 no. 2
Type: Research Article
ISSN: 1059-5422

Keywords

Article
Publication date: 3 August 2023

Telma Mendes, Vitor Braga and Carina Silva

This article aims to explore how cluster affiliation moderates the relationship between family involvement and speed of internationalization in family firms. The speed of…

Abstract

Purpose

This article aims to explore how cluster affiliation moderates the relationship between family involvement and speed of internationalization in family firms. The speed of internationalization is examined in terms of earliness and post-internationalization speed.

Design/methodology/approach

The research is based on a sample of 639 Portuguese family businesses (FBs) created and internationalized between 2010 and 2018 that was retrieved from the Iberian Balance Analysis System – SABI database. The partial least squares structural equation modeling (PLS-SEM) was used to assess the measurement and construct the model.

Findings

The results suggest that higher levels of family involvement in ownership and management make family firms enter on international markets in later stages of their development but, after the first international market entry, the firms are able to exhibit a higher post-internationalization speed. When considering the effect of cluster affiliation, the authors found that clustered FBs are more likely to engage in early internationalization and to accelerate the post-internationalization process than non-clustered FBs.

Originality/value

The study's findings are explained by the existence of socially proximate relationships with other cluster members, based on similarity, trust, knowledge exchange and sense of belonging, which push family firms to internationalize and increase their level of international commitment over time. The empirical evidence, therefore, highlights the primary role of industrial clusters in moderating the relationship between family involvement, earliness of internationalization and post-internationalization speed.

Open Access
Article
Publication date: 16 September 2022

Virginia Blanzo-Mazagatos, Juan Bautista Delgado-García and Jesús P. Barrero

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…

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Abstract

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.

Details

Journal of Family Business Management, vol. 14 no. 1
Type: Research Article
ISSN: 2043-6238

Keywords

Open Access
Article
Publication date: 2 January 2024

Aswo Safari

This study focuses on the triadic multilevel psychic distance (MPD) between the firm, target market and bridge-maker and its consequences for firm internationalization…

Abstract

Purpose

This study focuses on the triadic multilevel psychic distance (MPD) between the firm, target market and bridge-maker and its consequences for firm internationalization. Specifically, it spotlights the triadic psychic distance between firms, the levels of psychic distance in the target market (country and business) and the bridge-maker. Therefore, this study examines the triadic MPD among these three entities and its impact on firm internationalization.

Design/methodology/approach

This study uses qualitative and case study research approaches. It is based on 8 case companies and 24 internationalization cases. Secondary data were collected, and interviews with bridge-makers and industry experts were conducted.

Findings

The study found that MPD appeared in the triad. The MPD between firms and markets is related to country-specific differences and business difficulties. The MPD between the firm and the bridge-maker is based on the latter’s lack of knowledge vis-à-vis bridging the firm’s MPD. Finally, the MPD between bridge-makers and the market is based on the former’s lack of knowledge of the home country’s business difficulties.

Originality/value

This is the first study to develop and adopt a triadic multilevel psychic distance conceptualization that provides evidence for and sheds light on the triadic MPD and its effect on firm internationalization. This study identifies the reasons behind triadic MPD in connection to firm internationalization. Notably, firm internationalization is interdependent on the triadic MPD setting between the firm, bridge-maker and target market. It has theoretical value and contributes to the recent advancement in the understanding of MPD in international marketing literature.

Details

International Marketing Review, vol. 41 no. 7
Type: Research Article
ISSN: 0265-1335

Keywords

Article
Publication date: 29 February 2024

Svitlana Magalhães de Sousa Ostapenko, Ana Paula Africano and Raquel Meneses

This study aims to further develop the CLC stage/path’s identification model that distinguishes between path’s emergence (emergence stage), path’s development (growth stage)…

Abstract

Purpose

This study aims to further develop the CLC stage/path’s identification model that distinguishes between path’s emergence (emergence stage), path’s development (growth stage), path’s sustainment (maturity stage), path’s decline (decline stage) and path’s transformation (renewal stage), and by applying it, define the current stage/path of the Demarcated Douro Region (DDR) cluster. The Port wine industry, which is the dominant industry of the DDR cluster, is at the maturity/decline stage – is the same for the cluster itself?

Design/methodology/approach

It is a case study with a longitudinal perspective based on the analysis of the dynamics of the parameters of cluster evolution using available secondary sources (cluster identity/brand; number of firms; number of employees; network; innovation; policies and regulations; and external markets – exports), especially addressing the past decade, that represent the stage of maturity/decline of the cluster’s dominant Port wine industry.

Findings

The conclusion is that since the 1990s the Demarcated Douro Region has gone through a “path transformation” where during the following 20 years new “anchors” for the cluster were gradually introduced, such as Doc Douro Wines, new forms of consumption of Port wine, tourism and olive oil. Since 2010 the cluster has entered a growth stage/(new) path’s development, where these “anchors” are in steady growth. The Douro brand is becoming more internationally recognized and established, the number of firms and employees is increasing, the network is restructuring with the creation of cluster-specific official institutions, innovation is especially reflected with increasing heterogeneity through diversification of the clusters into new activities and regulations and policies are supportive for expansion – all these parameters are indicating the rise of the new cycle for the cluster. Thus, the DDR cluster represents an attractive business environment and requires attention from regional policymakers to support the cluster’s development. Especially institutions have been highlighted as internal factors driving clusters growth, European integration as an external factor and firms’ strategies of diversification and internationalization as an appropriate de-locking mechanism for new path’s development.

Research limitations/implications

This research contributes to the CLC theory by further developing and applying a CLC stage/path identification model. It provides a better understanding of the dynamics of the DDR cluster that diverge from its dominant industry life cycle, which is relevant for regional policies and firms’ strategies. This study has its limitations. It provides an exploratory application of the theoretical framework proposed, and consequently, no general conclusions are possible yet. More empirical studies with different clusters in different stages are necessary to test the framework.

Practical implications

These findings are useful to policymakers when designing their policies for cluster development but also for clusters’ entities and actors when making their strategic decisions as it allows based on the verification of the established parameter of CLC to identify its current stage/path of development.

Originality/value

The paper presents a theoretically grounded model for CLC identification and for the first time to the best of the authors’ knowledge applies it to a cluster case – the DDR cluster. This case applies the proposed model and illustrates its usefulness. The model provides the tools for a better understanding of cluster dynamics.

Details

Competitiveness Review: An International Business Journal , vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1059-5422

Keywords

Open Access
Article
Publication date: 26 March 2024

Charles Kirschbaum and Luiz Ojima Sakuda

The purpose of the article is to explore the perceptions of Brazilian game developers about the power relations between them and the sponsors of digital game platforms. It also…

Abstract

Purpose

The purpose of the article is to explore the perceptions of Brazilian game developers about the power relations between them and the sponsors of digital game platforms. It also aims to identify forms of collective action that developers can use to counteract the asymmetry of power.

Design/methodology/approach

The research employed an abductive approach, seeking empirical evidence that would challenge consolidated theory. To achieve this, semi-structured interviews were conducted with 25 Brazilian developers. The data were analyzed qualitatively using NVivo software. The aim was to resolve theoretical ambiguities identified in the literature review and to explore unexpected findings.

Findings

The study explores Brazilian game developers' perceptions through interviews, revealing their experiences within the industry’s concentrated structure and their use of collective action to navigate power dynamics.

Research limitations/implications

The study's focus on Brazil limits the generalizability of its findings to the broader game development industry.

Practical implications

The study suggests Brazilian game devs can leverage collective action to counteract power imbalance with platforms, collaborate through events and projects and facilitate internationalization of their games.

Social implications

The study suggests collective action could empower developers to challenge platform dominance and foster a stronger community among Brazilian game developers.

Originality/value

The article’s value lies in examining Brazilian devs' experiences within their specific industry context and highlighting collective action as a potential strategy for developers.

Details

Innovation & Management Review, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2515-8961

Keywords

Article
Publication date: 27 March 2024

Jonathan Mukiza Kansheba, Clavis Nwehfor Fubah and Mutaju Isaack Marobhe

Despite the popularity of the entrepreneurial ecosystem (EE) concept, research on its value-adding activities receives less attention. Thus, in this article, the authors…

Abstract

Purpose

Despite the popularity of the entrepreneurial ecosystem (EE) concept, research on its value-adding activities receives less attention. Thus, in this article, the authors investigate the role of EEs in supporting global value chain (GVC) activities.

Design/methodology/approach

The authors employ the fuzzy-set qualitative comparative analysis (fsQCA) technique to identify practical configurations of EE’s framework and systemic conditions spurring GVC activities in 80 countries.

Findings

The findings suggest different configurations of EE`s framework and systemic conditions necessary for various GVC activities regarding input-output structure, geographical scope, upgrading, and forward and backward participation.

Originality/value

This study contributes to the extant literature by pioneering the EE approach to explaining GVC development. Moreover, the findings provide novel insights for understanding the EE – GVC interplay. As a result, the study offers a more nuanced understanding of how the EE supports GVC activities.

Details

International Journal of Entrepreneurial Behavior & Research, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1355-2554

Keywords

Article
Publication date: 28 March 2024

Kai Wang, Massimiliano Matteo Pellegrini, Kunkun Xue, Cizhi Wang and Menghan Peng

Digital technologies over time are becoming increasingly pervasive and relatively affordable, finding a large diffusion in Small and Medium Enterprises (SMEs) also for…

Abstract

Purpose

Digital technologies over time are becoming increasingly pervasive and relatively affordable, finding a large diffusion in Small and Medium Enterprises (SMEs) also for internationalization purposes. However, less is known about the specific mechanisms by which this can be achieved. Specifically, we focus on how SMEs can face the international environment, leveraging digital technologies and thanks to their intellectual capital (IC).

Design/methodology/approach

We analyze the relationship between digital technologies and the internationalization of SMEs, exploring the mediating role of IC in its three dimensions: human, relational and innovation capital, and assessing the possible moderating effects posed by international institutional conditions, specifically the Sino-US trade frictions. The relationships are tested using a sample of companies listed on China’s A-share Growth Enterprise Market (GEM) from 2010 to 2021.

Findings

Digital technologies help to internationalize SMEs. However, this positive relationship is affected (mediated) by the presence of an already consolidated IC. In addition, the institutional conditions of the international market, such as the Sino-US trade friction, moderate the components of IC differently. Specifically, the overall mediating effect of human and relational capital is boosted, while this does not happen for innovation capital.

Originality/value

First, this study contributes to the literature on organizational resilience, especially digital resilience, confirming its validity in the context of internationalization and, in particular, those processes adopted by SMEs. Second, we clarify the mechanisms through which digital technologies exert their impact on the process of internationalization and in particular the prominent necessity of having IC. Third, our conclusions enrich the understanding of how IC components react to turbulence in international markets.

Details

Journal of Enterprise Information Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1741-0398

Keywords

Article
Publication date: 15 March 2024

Ansita Aggarwal and Nisarg Joshi

This article presents a comprehensive analysis of innovation in micro, small and medium enterprises (MSMEs) in India, focusing on the barriers and facilitators within their…

Abstract

Purpose

This article presents a comprehensive analysis of innovation in micro, small and medium enterprises (MSMEs) in India, focusing on the barriers and facilitators within their internal and external ecosystems.

Design/methodology/approach

A self-administered questionnaire was used to collect data from 1430 MSMEs across India, employing Structural Equation Modeling (SEM) to analyze the relationships between internal and external factors and innovation adaptation.

Findings

The findings indicate that factors such as top management and organization structure, communication, technological capability and adaptation and organizational culture have a positive impact on innovation adaptation within the internal environment. Conversely, employee and market orientation, as well as financial factors, have a negative influence. Regarding the external environment, industry and competitive analysis, internationalization and partner alliances were found to positively affect innovation adaptation, whereas the country's infrastructure and policies had a negative impact.

Originality/value

The study emphasizes that MSMEs have the potential to leverage their internal and external environments to foster innovation within their organizations.

Details

Journal of Small Business and Enterprise Development, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1462-6004

Keywords

Article
Publication date: 6 November 2023

John Fernando Macías-Prada, Yamila Silva and Ángela María Zapata

This study examines the role of universities in the social entrepreneurship ecosystems (SEEs) in Latin America from the perspective of female academic staff, administrators and…

Abstract

Purpose

This study examines the role of universities in the social entrepreneurship ecosystems (SEEs) in Latin America from the perspective of female academic staff, administrators and outreach workers of universities in the region.

Design/methodology/approach

Using a qualitative approach, the study scrutinises in-depth interviews conducted with 24 women from eight Latin American universities.

Findings

The findings underscore the pivotal role of universities in promoting social entrepreneurship through knowledge generation, entrepreneur training, network enhancement and the promotion of equity. They also highlight the importance of incorporating a gender perspective into university programmes and practices.

Research limitations/implications

The qualitative nature and small, diverse sample of this research inherently limit its scope. However, these limitations arise from the exploratory approach adopted, which was confined to eight Latin American countries. Further comparative studies in different contexts are needed to deepen the understanding of the dynamics involved.

Practical implications

Universities should offer more tangible support and training in social entrepreneurship with a gender focus. Governments can create incentives for universities to prioritise their contribution in this area.

Social implications

The study emphasises the potential of women-led social entrepreneurship initiatives to generate positive impact, underscoring the need for inclusive supportive environments.

Originality/value

By providing insights on the role of Latin American universities in SEEs from a gender perspective, this study contributes to limited literature on the intersection of social entrepreneurship, gender, higher education and geographic context in the region. The research underscores the need to further explore how gender and regional dynamics influence social entrepreneurial ecosystems.

Details

International Journal of Gender and Entrepreneurship, vol. 16 no. 1
Type: Research Article
ISSN: 1756-6266

Keywords

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