Search results

1 – 10 of over 66000
Article
Publication date: 10 January 2020

Tommi Rissanen, Liubov Ermolaeva, Lasse Torkkeli, Ali Ahi and Sami Saarenketo

This paper aims to explore the underlying reasons for business model change among internationalizing SMEs and illustrate how home market context affects that change.

Abstract

Purpose

This paper aims to explore the underlying reasons for business model change among internationalizing SMEs and illustrate how home market context affects that change.

Design/methodology/approach

This is a comparative case study of two companies with similar backgrounds from different countries of origin. In each case, the data were collected by means of in-depth interviews with key informants. For its theoretical background, the study draws on the business model innovation and international business literature.

Findings

The authors found that home market context has two kinds of effect on business model change in internationalizing SMEs. First, home market maturity has a strong effect on the timing of companies’ internationalization efforts. Second, the company’s home market can either be used to strengthen the value proposition or may be disguised, depending on how the country of origin is seen in international markets. This factor has a strong influence on how SMEs change their business model when internationalizing.

Research limitations/implications

The study’s limitations relate to its qualitative and exploratory nature. Future research should further assess the generalizability of these findings across different cultural contexts and countries of origin by quantifying the central concepts and examining how they relate to larger-scale cross-national and cross-sectional panel data.

Practical implications

As internationalization increasingly poses both threats and opportunities, companies must be able to experiment with business models when necessary to adapt to the host market. In so doing, it is also important to consider how a company’s home market affects business model change.

Originality/value

This is one of the first studies to illustrate how the process of internationalization drives SMEs to change their business models. As such, the paper enhances existing understanding of business model change in the context of internationalization. To our knowledge, no previous study has described these dynamics in a comparative context that takes account of SME country of origin.

Details

European Business Review, vol. 32 no. 2
Type: Research Article
ISSN: 0955-534X

Keywords

Article
Publication date: 3 July 2017

Florian Becker-Ritterspach, Knut Lange and Jutta Becker-Ritterspach

The purpose of this paper is to develop a theoretical framework that addresses the question of how and why multinational corporations (MNCs) from developed economies engage in…

1025

Abstract

Purpose

The purpose of this paper is to develop a theoretical framework that addresses the question of how and why multinational corporations (MNCs) from developed economies engage in divergent patterns of institutional entrepreneurship (IE) in emerging markets.

Design/methodology/approach

The authors combine IB’s concept of institutional voids with comparative capitalism’s insights into the institutional embeddedness of firm capabilities and IE. This theoretical cross-fertilisation is instrumental in developing a refined understanding of institutional voids and how MNCs proactively engage with them.

Findings

The authors emphasise the notion of institutional voids as a relative concept and, thereby, move away from an ethnocentric view of emerging markets as “empty spaces” that are void of institutions. The authors’ framework proposes that MNCs from liberal and coordinated market economies experience institutional voids differently and engage in different patterns of IE.

Research limitations/implications

The main limitation of this work is that the propositions are restricted to the country-of-origin effect and that the observations are based on anecdotal evidence only. Against these limitations the authors call for a more comprehensive research agenda in their conclusion.

Social implications

The paper sensitises policymakers in emerging markets for the potentially different patterns of involvement of MNCs in their institutional environments. Specifically, the authors argue that MNCs may have a strong inclination to rebuild critical elements of their home country’s institutional setting in emerging markets. This touches upon questions of national sovereignty and highlights the need for emerging market policymakers to decide which kinds of institutional settings they would like or not like to see imported.

Originality/value

The paper provides a new and critical perspective of the mainstream IB concept of institutional voids. The authors’ key contribution is to highlight that the home country institutional context may substantially matter in how MNCs perceive and respond to institutional voids in emerging markets.

Details

critical perspectives on international business, vol. 13 no. 3
Type: Research Article
ISSN: 1742-2043

Keywords

Article
Publication date: 26 April 2011

Nicholas Alexander, Mark Rhodes and Hayley Myers

The increasingly important role of international retail companies in the distribution and marketing of goods highlights important gaps in the literature. One of these gaps…

4774

Abstract

Purpose

The increasingly important role of international retail companies in the distribution and marketing of goods highlights important gaps in the literature. One of these gaps concerns a scientifically based understanding of the key, underlying drivers in the market selection process of such companies. The purpose of this paper is to establish a more robust understanding of international retailers' market selection process.

Design/methodology/approach

This paper econometrically tests hypotheses derived from recent literature and models the international actions of retailers based in 13 home and ten host markets.

Findings

The results highlight the importance of host market characteristics and the importance of understanding host market selections in the context of home market retail structural development and, by implication, the relative lack of importance of secondary managerial input factors.

Research limitations/implications

The model presented here fundamentally challenges assumptions concerning the role of managers in market selection decisions in the light of sustainable patterns of international activity.

Practical implications

These findings suggest that managers responsible for international market selection decisions do not have the freedom of action implied in the marketing literature and that their actions are constrained by structural market conditions.

Originality/value

The relationships identified explain six‐ to seven‐tenths of the pattern of expansion in the markets considered. This would suggest that managerial input is important in the process of marketing activity but that it is important within a broader framework.

Details

International Marketing Review, vol. 28 no. 2
Type: Research Article
ISSN: 0265-1335

Keywords

Article
Publication date: 29 October 2019

Agnes Asemokha, Ali Ahi, Lasse Torkkeli and Sami Saarenketo

The purpose of this study is to provide a foundational understanding of the internationalization of small- and medium-sized enterprises (SMEs) operating in the context of…

1116

Abstract

Purpose

The purpose of this study is to provide a foundational understanding of the internationalization of small- and medium-sized enterprises (SMEs) operating in the context of renewable energy markets. The focus is on exploring and identifying the managerial-, firm- and environmental-level antecedents to their international expansion, which also furthers the understanding of the distinct SME’s internationalization context within the renewable energy market.

Design/methodology/approach

The study adopts a qualitative multiple case study approach in a Finnish SME context and identifies the antecedents’ relative prominence at the managerial, firm and environmental levels.

Findings

The findings indicate that, although internationalization antecedents of renewable energy SMEs differ owing to market forces such as trends, networks and changing regulatory policies, they share antecedents similar to those of SMEs in other industries.

Research limitations/implications

The main limitation of this study is its single-country home market empirical context. Future studies should expand analysis to different regulatory and regional environments.

Originality/value

To the authors’ knowledge, there are few studies that explore the antecedents of SMEs’ internationalization, especially in the renewable energy market context. Hence, this study contributes to the international business and entrepreneurship literature by illustrating the fundamental managerial-, firm- and environmental-level antecedents to the internationalization of SMEs operating in the renewable energy business. In addition, it highlights the peculiarities of renewable energy SMEs’ internationalization, suggesting that extant research on SMEs’ internationalization has not adequately captured the intricacies present in the internationalization of renewable energy enterprises.

Details

critical perspectives on international business, vol. 16 no. 4
Type: Research Article
ISSN: 1742-2043

Keywords

Article
Publication date: 27 July 2012

Rotem Shneor

The purpose of this paper is to examine the role played by culture, geography and infrastructure on European airline's decision to launch market‐specific websites.

3130

Abstract

Purpose

The purpose of this paper is to examine the role played by culture, geography and infrastructure on European airline's decision to launch market‐specific websites.

Design/methodology/approach

Logistic regression analysis based on 440 observations of home‐target country dyads collected from websites of nine European airlines, and supplemented by additional sources of macro level indicators. The unit of analysis is the country dyad.

Findings

Cultural distance between home and target country, geographical distance between home and target country, website traffic volumes originating from target country, demand conditions in target country, and competition intensity in target country all influence the decision to launch local sites. The cultural dimensions of individualism, masculinity, power distance, and uncertainty avoidance, as well as the legal, commercial and IT infrastructures in target countries don't impact the same decision.

Research limitations/implications

The study's findings are limited contextually to B2C e‐service models, the airline industry and the European origin. Other industries, business models or regional origin of firms may exhibit different patterns.

Originality/value

The study shifts the research focus from what constitutes website localization into what dictates localization efforts' implementation. Surprising findings suggest that counter to earlier suggestions, infrastructural conditions and cultural dimensions' levels in target markets do not predict the launch of local sites, and that geographical distance impact decisions related to the geography neutral medium of the internet.

Details

Cross Cultural Management: An International Journal, vol. 19 no. 3
Type: Research Article
ISSN: 1352-7606

Keywords

Article
Publication date: 12 March 2019

Roberta Capitello, Claudia Bazzani and Diego Begalli

This study aims to focus on consumers’ preferences towards rosé wine and explore whether and how the consumption context may influence consumers’ choices.

Abstract

Purpose

This study aims to focus on consumers’ preferences towards rosé wine and explore whether and how the consumption context may influence consumers’ choices.

Design/methodology/approach

Using social networks platform, the authors conducted a choice experiment, to evaluate Italian consumers’ preferences for a glass of rosé in two consumption contexts, restaurant and wine bar. Characteristics of the rosé wine also included price, origin and type of wine. The authors applied a latent class analysis to define rosé wine consumers’ segments and incorporated personality traits in the model.

Findings

The results define three rosé wine drinkers’ profiles: “Wine bar visitors”, “The unenthusiastic” and “Restaurant visitors”. Socio-demographic characteristics and personality traits significantly affect consumers’ membership to the different segments. Who prefers to drink a rosé glass at the wine bar is younger, more opened to new experiences and, therefore, more inclined towards more sophisticated choices. Consumers at the restaurants tend to be more extrovert and sensitive to price.

Practical implications

This study offers insight for practitioners of both wine and hospitality industries in the development of strategies for new products market placement and, at the same time, for academics who are interested in the understanding of behavioural reasoning of consumers’ wine purchase choices.

Originality/value

This research investigates the effect of consumption context on individuals’ preference formation for a less familiar wine, such as rosé in Italy. To the authors’ knowledge, no previous studies explored how personality traits may affect consumers’ wine consumption context choices.

Details

International Journal of Wine Business Research, vol. 31 no. 1
Type: Research Article
ISSN: 1751-1062

Keywords

Article
Publication date: 12 January 2015

Paresha Sinha, Mingyang (Ana) Wang, Joanna Scott-Kennel and Jenny Gibb

This paper aims to examine the role of psychic distance during the process of international market entry by software international new ventures (INVs) from small, open economies…

Abstract

Purpose

This paper aims to examine the role of psychic distance during the process of international market entry by software international new ventures (INVs) from small, open economies. Specifically, we investigate how home market and global industry contexts influence market-entry strategies, and how psychic distance influences initial then subsequent market-entry choice decisions.

Design/methodology/approach

Using Atlas.ti7 software, this paper adopts a qualitative, multi-case analysis of ten software INVs based in New Zealand. Thematic coding of interview and secondary data revealed three core processes: pre-entry considerations, market selection criteria and post-entry evaluation, across the stages of initial and subsequent market entry.

Findings

In the context of the global software industry, the key driver of proactive market entry by INVs from small, open economies is market size rather than psychic distance. During the process of market expansion, firms encounter the psychic distance paradox (PDP). A second paradox arises when, despite experiential learning, managerial perceptions of psychic distance increase, making entry into more distant markets less, rather than more, likely and reactive, rather than proactive.

Originality/value

This paper addresses contextual differences in software versus more traditional sectors, and the influence of psychic distance on market entry rather than outcomes. Specifically, extending our understanding of the PDP, we find perceptual psychic and cultural distance ignored as criteria for initial market-entry decisions, and initial positive attitudes toward risk-taking become less apparent during subsequent entries.

Details

European Business Review, vol. 27 no. 1
Type: Research Article
ISSN: 0955-534X

Keywords

Article
Publication date: 9 April 2018

Irina Surdu, Kamel Mellahi and Keith Glaister

The purpose of this paper is to examine the theories used to study the international equity-based entry mode strategies of emerging market multinationals (EMMs) and the…

5397

Abstract

Purpose

The purpose of this paper is to examine the theories used to study the international equity-based entry mode strategies of emerging market multinationals (EMMs) and the contribution of these studies to extant literature.

Design/methodology/approach

The authors conducted a systematic review of the literature. A total of 73 articles were identified from key management, international business and international marketing journals published between 2000 and June 2015. Articles were analysed according to the theory(ies) used, thematic area, methodology, home/host countries studied and findings.

Findings

Despite the great interest around the topic of how the antecedents and outcomes of EMMs’ international entry mode strategies may challenge and amend existing theories, the findings that come out of this research mirror patterns observed in the entry mode literature in general. Whilst traditional perspectives such as internalisation theory and the OLI paradigm remain prevalent, a growing number of studies draw on institutional theory and combine multiple theoretical perspectives. Newer theories developed specifically to study EMMs (e.g., the springboard perspective) are used in only five studies and challenged to differentiate their theoretical underpinnings from extant literature. Overall, the theoretical contribution of EMM studies is simply a change in emphasis from the role of firm-specific factors towards the influence of home country institutions on entry mode strategies. The authors conclude that the literature has only made tweaks at the edge of theories with no significant changes to extant theorisations.

Originality/value

This is the first systematic review of the literature focusing specifically on the international equity-based entry mode strategies of EMMs.

Details

International Marketing Review, vol. 35 no. 2
Type: Research Article
ISSN: 0265-1335

Keywords

Book part
Publication date: 24 June 2015

Victor Z. Chen and Sedat Aybar

Emerging market MNEs often seek to advance their domestic competitive advantage through a springboard FDI strategy, which typically takes the form of an acquisition into a…

Abstract

Emerging market MNEs often seek to advance their domestic competitive advantage through a springboard FDI strategy, which typically takes the form of an acquisition into a developed market (DM) for knowledge resources. We argue that if this strategy is effective and beneficial, then an emerging market parent firm would seek for higher ownership and control in its later domestic acquisitions. Such benefits would be higher if there are richer knowledge resources in a DM subsidiary or in a DM local network. Such benefits would also increase over time because of the accumulation of new knowledge back home. Using a sample of 1,303 complete domestic acquisitions made by 713 Turkish firms over the period of 1987–2013, including 196 deals involving a springboard FDI strategy, we have found highly supportive empirical evidence. It is found that holding a DM subsidiary by a Turkish parent firm is associated with 33.047% higher ownership in a later domestic acquisition. Both research and practical implications are discussed.

Details

Emerging Economies and Multinational Enterprises
Type: Book
ISBN: 978-1-78441-740-6

Keywords

Article
Publication date: 29 July 2019

June Borge Doornich, Katarina Kaarbøe and Anatoli Bourmistrov

This paper aims to explore how changes in the coercive and enabling orientations of the organizational rule system influence the attention managers pay to rules.

Abstract

Purpose

This paper aims to explore how changes in the coercive and enabling orientations of the organizational rule system influence the attention managers pay to rules.

Design/methodology/approach

The findings of a case study covering a multinational energy company, which are interpreted based on insights from the coercive/enabling bureaucracy literature and the evolution of rules literature, help explain how rules can direct attention.

Findings

The findings suggest that the tensions between corporate management’s intentions for an organization’s rule system and the attention middle (country) managers pay to those rules were the main driver of dialectic changes in the rule system. The more coercive the rule system became, the more middle managers diverted their attention away from rule compliance. The paper shows how the dialect change process constituted a dynamic interaction between mindful “rule setters” and mindful “rule followers.” The alignment between intentions and attention was reestablished by better balancing the coercive and enabling orientations of the rule system: enabling better flexibility, enhancing internal transparency based on local business logic and improving global transparency through closer alignment of local and global growth and efficiency goals. Surprisingly, the repair characteristic was not as important.

Originality/value

The findings contribute to the literature by showing how the enabling and coercive characteristics of an organizational rule system constitute managerial attention artifacts. The paper demonstrates how tensions between corporate intentions and local contingencies in the context of global organizations can lead to constrictive change and create a win-win situation for both central and local actors by better balancing the coercive and enabling orientations of the rule system. It also offers new insights into the dialectic change process in an organization’s rule system based on attention view toward organizational rules.

Details

Qualitative Research in Accounting & Management, vol. 16 no. 2
Type: Research Article
ISSN: 1176-6093

Keywords

1 – 10 of over 66000