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Article
Publication date: 28 July 2022

Rakesh B. Sambharya, Farok J. Contractor and Abdul A. Rasheed

The purpose of this paper is to identify some of the major issues relating to the conceptualization and operationalization of industry globalization.

Abstract

Purpose

The purpose of this paper is to identify some of the major issues relating to the conceptualization and operationalization of industry globalization.

Findings

Globalized industries have four important characteristics: cross-border product flows, cross-border capital flows, dispersal of global value chains and global competition. However, lack of availability of data limits our ability to develop an operationalization that encompasses all these four aspects of globalization.

Practical implications

The authors identify some of the most important factors driving industry globalization as well as the major impediments to globalization.

Originality/value

Although the term “globalization” has attained a nearly “taken for granted” status, its meaning is rather vaguely specified and is often context dependent. This paper delineates the domain of the construct and identifies many of the practical issues in operationalizing the construct.

Details

Multinational Business Review, vol. 30 no. 4
Type: Research Article
ISSN: 1525-383X

Keywords

Article
Publication date: 19 November 2021

Rakesh B. Sambharya, Abdul A. Rasheed and Farok J. Contractor

There is considerable variation in the extent of globalization across industries. The authors attempt to identify the structural conditions of the industry that lead to…

Abstract

Purpose

There is considerable variation in the extent of globalization across industries. The authors attempt to identify the structural conditions of the industry that lead to these variations.

Design/methodology/approach

Based on a sample of 33 manufacturing industries over the nine-year period from 2007 to 2016, the authors test for antecedents of industry globalization.

Findings

The authors find that industry globalization is positively affected by medium levels of barriers to entry, industry competition, industry assistance, low and mediums levels of capital intensity, industry concentration and industry regulation and negatively affected by low levels of technological change and industry assistance. In addition, the life cycle stage of the industry has an impact on the level of globalization with the growth stage having the highest level of globalization.

Research limitations/implications

First, the major limitation of the paper is that the authors rely entirely on trade data to measure the level of industry globalization. The authors did not have a choice because foreign direct investment (FDI) data are available only at the country level. Second, given that globalization can occur at the country, industry and firm levels, the focus on industry-level structural characteristics alone may be seen as a limitation.

Practical implications

The results of the study can provide guidance to practicing managers to apply industry analysis for predicting the potential for and direction of globalization of their industries. This will enable them to formulate appropriate strategies to cope with global competition.

Social implications

The study has important public policy implications. National governments have many levers at their command that can be used to influence the structural characteristics of industries, such as industry regulation, industry assistance and industry concentration. They can selectively use these levers to either facilitate or impede globalization.

Originality/value

Much of the empirical focus of prior research on globalization has been on countries, rather than industries, as the unit of analysis. There is clearly variation in the extent of globalization across industries with some industries highly integrated while others remain primarily local or regional. Based on a novel approach to measure the extent of globalization at the industry level, the authors identify its antecedents. The value of the paper lies in the fact that the analysis of 33 manufacturing industries over a ten-year period shows that the structural characteristics of the industries drive their extent of globalization.

Details

Cross Cultural & Strategic Management, vol. 29 no. 1
Type: Research Article
ISSN: 2059-5794

Keywords

Article
Publication date: 1 January 1986

Farok J. Contractor

The past three years have seen an acceleration in the rate with which companies have formed strategic partnerships with foreign firms in both the US and overseas markets…

Abstract

The past three years have seen an acceleration in the rate with which companies have formed strategic partnerships with foreign firms in both the US and overseas markets. This article examines the theoretical rationale underlying joint ventures and asks what strategic considerations lie behind their formation. Fifteen case examples of joint ventures are presented and analysed to see how the theoretical concepts fit actual situations.

Details

International Marketing Review, vol. 3 no. 1
Type: Research Article
ISSN: 0265-1335

Article
Publication date: 23 September 2013

Farok J. Contractor

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…

7618

Abstract

Purpose

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.

Design/methodology/approach

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.

Findings

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.

Originality/value

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.

Details

International Journal of Emerging Markets, vol. 8 no. 4
Type: Research Article
ISSN: 1746-8809

Keywords

Book part
Publication date: 20 June 2008

Farok J. Contractor

The largest business unit is no longer the multinational corporation but rather, cooperating networks of globally connected organizations and firms. The principal focus of…

Abstract

The largest business unit is no longer the multinational corporation but rather, cooperating networks of globally connected organizations and firms. The principal focus of this chapter is to identify trends which have come to a head in the last two decades in the world economy and have fostered interorganizational cooperation on an unprecedented scale. The technological, political, spatial and cultural complexities of global operations are becoming simply too great in many areas to be encompassed by a single company or agency. It is impossible to build a technologically complex global civilization without interorganizational cooperation, any more than a multicellular organism could survive without cooperation between its distinct but specialized constituents. The chapter reviews the evolutionary basis for cooperation, describes recent economic forces that have shaped interorganizational cooperation and describes why planetary economic cooperation is our “manifest destiny.”

Details

International Business Scholarship: AIB Fellows on the First 50 Years and Beyond
Type: Book
ISBN: 978-0-7623-1470-6

Book part
Publication date: 26 July 2007

Farok J. Contractor

This chapter outlines a general theory of international expansion and its effect on the performance of firms. Using the lens of this theory, it addresses the question of…

Abstract

This chapter outlines a general theory of international expansion and its effect on the performance of firms. Using the lens of this theory, it addresses the question of why most companies are “regional,” in the sense that their geographical coverage seems to be far from complete. The chapter also treats the perplexing issue of the lack of congruence in empirical findings, over the 30-year history of the Multinationality vs. Performance sub-field in International Business studies. It argues that the apparently contradictory results of past studies are but subsets of the three stages of the general theory. Finally, the chapter indicates fruitful areas for further research.

Details

Regional Aspects of Multinationality and Performance
Type: Book
ISBN: 978-0-7623-1395-2

Article
Publication date: 17 June 2009

Chinmay Pattnaik and B. Elango

The previous decade has been characterized by emerging market firms expanding into international markets. This trend has led to scholars in the IB arena to grapple with…

Abstract

The previous decade has been characterized by emerging market firms expanding into international markets. This trend has led to scholars in the IB arena to grapple with the new phenomenon of emerging multinational enterprises (EMNEs), specifically the relationship between internationalization and performance of the EMNEs. This paper seeks to add to the literature by capturing the impact of firm resources on the internationalization‐performance relationship. Empirical analysis on a sample of 787 Indian manufacturing firms indicates that there is a non‐linear relationship between internationalization and performance. Findings also indicate that a firm’s capabilities in cost efficiency and marketing have a moderating impact on this relationship.

Details

Multinational Business Review, vol. 17 no. 2
Type: Research Article
ISSN: 1525-383X

Keywords

Article
Publication date: 1 January 2002

Ben L. Kedia, Richard Nordtvedt and Liliana M. Pérez

International management researchers have examined the relationships between many components of strategy including mode of entry (e.g., Anderson and Gatignon, 1986; Hill…

3286

Abstract

International management researchers have examined the relationships between many components of strategy including mode of entry (e.g., Anderson and Gatignon, 1986; Hill, Huang and Kim, 1990; Kim and Huang, 1992; Kogut and Singh, 1988), international collaboration (e.g., Bresser and Harl, 1986; Buckley and Casson, 1988; Contractor and Kundu, 1988; Osborn and Baughn, 1990; Parkhe, 1993), and global integration vs. local responsiveness (e.g., Athanassiou and Nigh, 1999; Prahalad and Doz, 1987; Roth and Morrison, 1990; Taggart, 1998), among other things. Other management scholars have written about decision‐making from multiple perspectives including bounded rationality (Simon, 1955) and speed (Eisenhardt, 1989; Nordtvedt, 2000). Another subject of interest to management scientists has been that of leadership and its influence on organizational performance (e.g., Petrullo & Bass, 1961; Stodgill, 1974; Burns, 1978; and Bass, 1985). Although these three dimensions of the management discipline (i.e., international strategies, decision‐making, and strategic leadership) are individually important to organizational success, they have not yet been collectively researched or conceptually reviewed to understand how the nature of their interaction affects the internationalization of the multinational corporation.

Details

Competitiveness Review: An International Business Journal, vol. 12 no. 1
Type: Research Article
ISSN: 1059-5422

Content available
Book part
Publication date: 20 June 2008

Abstract

Details

International Business Scholarship: AIB Fellows on the First 50 Years and Beyond
Type: Book
ISBN: 978-0-7623-1470-6

Article
Publication date: 1 March 1986

J. Taylor Sims

Elaborating on the positions of two key players in the global earthmoving and construction industry, this article discusses the Japanese market entry strategies. Also…

1238

Abstract

Elaborating on the positions of two key players in the global earthmoving and construction industry, this article discusses the Japanese market entry strategies. Also discussed are alternative strategies for retaliation against Japanese competition.

Details

International Marketing Review, vol. 3 no. 3
Type: Research Article
ISSN: 0265-1335

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