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11 – 20 of over 111000The purpose of this paper is to introduce the global value chain (GVC) approach to understand the relationship between multinational enterprises (MNEs) and the changing patterns…
Abstract
Purpose
The purpose of this paper is to introduce the global value chain (GVC) approach to understand the relationship between multinational enterprises (MNEs) and the changing patterns of global trade, investment and production, and its impact on economic and social upgrading. It aims to illuminate how GVCs can advance our understanding about MNEs and rising power (RP) firms and their impact on economic and social upgrading in fragmented and dispersed global production systems.
Design/methodology/approach
The paper reviews the GVC literature focusing on two conceptual elements of the GVC approach, governance and upgrading, and highlights three key recent developments in GVCs: concentration, regionalization and synergistic governance.
Findings
The paper underscores the complicated role of GVCs in shaping economic and social upgrading for emerging economies, RP firms and developing country firms in general. Rising geographic and organizational concentration in GVCs leads to the uneven distribution of upgrading opportunities in favor of RP firms, and yet economic upgrading may be elusive even for the most established suppliers because of power asymmetry with global buyers. Shifting end markets and the regionalization of value chains can benefit RP firms by presenting alternative markets for upgrading. Yet, without further upgrading, such benefits may be achieved at the expense of social downgrading. Finally, the ineffectiveness of private standards to achieve social upgrading has led to calls for synergistic governance through the cooperation of private, public and social actors, both global and local.
Originality/value
The paper illuminates how the GVC approach and its key concepts can contribute to the critical international business and RP firms literature by examining the latest dynamics in GVCs and their impacts on economic and social development in developing countries.
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Chia-Wen Chang and Heng-Chiang Huang
Emerging markets play an important role in the global economy. However, a common feature of most emerging markets is that firms must operate in a resource-constrained environment…
Abstract
Purpose
Emerging markets play an important role in the global economy. However, a common feature of most emerging markets is that firms must operate in a resource-constrained environment. In emerging markets, global mindset is a necessary resource for firms’ global competitiveness. Although global mindset has been proven to improve export performance, the theoretical mechanism behind this relationship is less clear. Based on the resource-based on the resource-based view and capability-building perspective, this study developed a model linking global mindset, relational capability, bricolage capability, innovation, and export performance.
Design/methodology/approach
A survey was conducted to collect data from exporting firms in Taiwan. Subsequently, the data (n = 172) were analyzed using a partial least squares program.
Findings
The analytical results reveal that a global mindset positively influences relational and bricolage capabilities; relational capability positively affects bricolage capability; relational capability and bricolage capability have significant and direct effects on innovation; and innovation positively affects export performance.
Originality/value
The findings confirm that a global mindset plays a crucial role in the capability-building process, which suggests that it contributes to the development of relational and bricolage capabilities. Also, relational capability is critical for exporting firms to develop bricolage capability. Finally, innovation is an important mediating mechanism between capabilities and export performance. Therefore, exporting firms can develop their international business models on the basis of their capabilities, including relational capability and bricolage capability. These capabilities improve innovation, which, in turn, enhances export performance in a resource-constrained environment.
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Aim of the present monograph is the economic analysis of the role of MNEs regarding globalisation and digital economy and in parallel there is a reference and examination of some…
Abstract
Aim of the present monograph is the economic analysis of the role of MNEs regarding globalisation and digital economy and in parallel there is a reference and examination of some legal aspects concerning MNEs, cyberspace and e‐commerce as the means of expression of the digital economy. The whole effort of the author is focused on the examination of various aspects of MNEs and their impact upon globalisation and vice versa and how and if we are moving towards a global digital economy.
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Francisco José Mas-Ruiz, Carla Rodriguez-Sanchez, Franco Manuel Sancho-Esper and Esther de Quevedo-Puente
This study examines the relationships between the foreign entry mode (FEM) used by a company, its global corporate social responsibility (CSR) and the host country's local CSR…
Abstract
Purpose
This study examines the relationships between the foreign entry mode (FEM) used by a company, its global corporate social responsibility (CSR) and the host country's local CSR environment in Spanish quoted firms. Additionally, it seeks to explore the moderating role of the host country's CSR in the relationship between firm's global CSR and FEM.
Design/methodology/approach
To test the proposed hypotheses, binary logistic regression is used with a sample of 418 foreign direct investment (FDI) operations between 2002 and 2008. This period is chosen with the aim of knowing what happened after the boom in Spanish investments abroad in the 1990s and the uncertainty of the early 2000s.
Findings
The results reveal firm patterns of behaviour regarding the FEM of companies and the two types of CSR according to the proposed hypotheses. Furthermore, it is found that the host country's local CSR may not only have a direct influence on the FEM decision but may also moderate the relationship between the firm's global CSR and firm's entry mode in a host country.
Originality/value
This is one of the first studies to propose as explanatory variables of FEM two types of CSR (firm's global CSR and host country's local CSR). This has been possible by the creation of an ad-hoc database with data from different information sources of FDI (Instituto Español de Comercio Exterior) and CSR [Eikon™ and AccountAbility National Corporate Responsibility Index (NCRI)].
Propósito
Se examina las relaciones entre el modo de entrada en el exterior (MEE) de una empresa, su responsabilidad social corporativa (RSC) global y el entorno de RSC local del país de destino en empresas cotizadas en España. Además, analiza el papel moderador de la RSC del país de destino en la relación entre la RSC global de la empresa y el MEE.
Diseño/metodología/enfoque
Se utiliza la regresión logística binaria con una muestra de 418 operaciones de inversión directa exterior (IED) entre 2002–2008. Este período se elige para conocer qué sucedió durante el auge de las inversiones españolas en el exterior a principios de 2000.
Hallazgos
Los resultados revelan patrones de comportamiento en relación al MEE de las empresas y los dos tipos de RSC según las hipótesis propuestas. Además, se encuentra que la RSC local del país de destino puede también moderar la relación entre la RSC global de la empresa y el MEE.
Originalidad/valor
Este es uno de los primeros estudios en proponer como variables explicativas del MEE, dos tipos de RSC (RSC global de la empresa y RSC local del país de destino), gracias a la creación de una base de datos ad-hoc con datos de diferentes fuentes de información de IED (ICEX) y RSC (Eikon ™ y AccountAbility NCRI).
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- Social responsibility
- Foreign direct investment
- Reputation
- Empirical studies of trade
- Trade and the environment
- Binary choice model
- Responsabilidad social
- Inversión extranjera directa
- Reputación
- Estudios empíricos de comercio
- Comercio y medio ambiente
- Modelo de elección binaria
- C250
- F18
- F140
- L140
- M140
- M160
Hsiu Ying Huang and Ming Huei Hsieh
This study aims to employ a knowledge‐based capability approach to explore how born global firms accelerate their internationalization.
Abstract
Purpose
This study aims to employ a knowledge‐based capability approach to explore how born global firms accelerate their internationalization.
Design/methodology/approach
The paper adopts a qualitative in‐depth case study approach. Various types and sources of data were collected to provide a rich and solid foundation for theory development and data triangulation. These comprised semi‐structured interviews, field observations and archival material.
Findings
The findings show that the transformation process of international knowledge may more adequately account for the difference in internationalization at conventional globals and born globals than the “indigenous” knowledge resource, i.e. founder experience. Born global firms accelerate their internationalization process through a three‐stage transformation process: knowledge acquisition and dissemination, knowledge integration, and knowledge institutionalization. Two underlying knowledge mechanisms are identified: vertical and horizontal knowledge thrust.
Originality/value
The knowledge transformation process constitutes the basis of “acceleration” of born globals' internationalization. The speed of a born global's internationalization is rooted in its ability to transform internationalization knowledge resident in individual employees into organizational strategies and operational procedures. The finding bridges the gap by identifying effective organizational mechanisms in management of the knowledge process. The “speed‐up” mechanism identified in this research can equip born globals as well as conventional globals with the ability to respond quickly in a dynamic international environment.
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Paula Danskin Englis and Ingrid Wakkee
Using a series of case studies, we show that global mindset is at the heart of global growth and opportunity for entrepreneurial ventures. We review how having an entrepreneurial…
Abstract
Using a series of case studies, we show that global mindset is at the heart of global growth and opportunity for entrepreneurial ventures. We review how having an entrepreneurial mindset and international experience influence the rapidity of internationalization by discussing the entrepreneurial process and how the global mindset of founders of born global firms influences their choices in the competitive landscape. This chapter closes with a discussion of a continuum — globalization frustrated (focusing on firms with entrepreneurs that have global mindsets but cannot internationalize) to globalization mandated (focusing on firms that are forced to be global).
Deirdre McQuillan and Pamela Sharkey Scott
The leading frameworks of internationalization have contributed significantly to our knowledge of how firms internationalize, but do not fully explain how firms actually create…
Abstract
The leading frameworks of internationalization have contributed significantly to our knowledge of how firms internationalize, but do not fully explain how firms actually create and capture value from customers when internationalizing their activities. Understanding the value creation and capture activities defining their business model(s) is critical for firms moving into less familiar markets, and is particularly relevant for service firms where variability is an inherent feature of the firm/client experience. To address this gap, we take a business model perspective to analyze 144 internationalization events of 10 professional service firms. We find that the case firms adopted four different business models when internationalizing, and that single firms may utilize portfolios of business models. Our findings contribute to both the services internationalization and business model literatures by showing how variability in the internationalization process substantiates the need for business model portfolios.
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This chapter analyses the rise of the ‘global factory’ – the globally integrated network centred on a focal multinational enterprise. This is a response to the increased…
Abstract
This chapter analyses the rise of the ‘global factory’ – the globally integrated network centred on a focal multinational enterprise. This is a response to the increased volatility of the global economy and involves the creation of systems that allow flexibility in both the location and the control of increasingly ‘fine-sliced’ activities, the avoidance of monopoly and the evolution of new management skills. Foreign direct investment is only one strategy amongst several utilised by globally integrated multinationals.
Hai T. T. Ngo and Paul Agu Igwe
This chapter explores the context of global ventures, gives an overview of an entrepreneur’s motivations, and discusses literature on internationalization strategies of firms…
Abstract
This chapter explores the context of global ventures, gives an overview of an entrepreneur’s motivations, and discusses literature on internationalization strategies of firms. Entrepreneurs innovate and find new ways to create or discover new opportunities, start a new venture, or grow an existing venture. Indeed, firms grow through sustainable and innovative process considering economic, social, and environmental protection (the three pillars of sustainability). Indeed, entrepreneurial motivations to take business globally can be because of “push” or “pull” forces such as the creation of global products and services, access to global market, access to strategic resources, and access to global sourcing. However, the capability to internationalize is dependent on the interaction between entrepreneurs’ internal resources and external constraints. These constraints are explained by the Ghemawat’s CAGE Distance Framework, including “cultural,” “administrative,” “geographic,” and “economic” challenges.
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Alan M. Rugman and Simon Collinson
Of the 75 Asian firms with data on regional sales, only three are global whereas 66 have the majority of their sales in their home region. Why is this? Despite a large literature…
Abstract
Of the 75 Asian firms with data on regional sales, only three are global whereas 66 have the majority of their sales in their home region. Why is this? Despite a large literature extolling the global success of Asian firms, especially the Japanese, why does the evidence suggest that most Asian firms operate regionally? This study explains how most large Japanese firms have firm-specific advantages, which are based in their home region.