Search results

The purpose of this paper is to examine how headquarters’ managers perceive – cultural, administrative, geographic and economic (CAGE) – distance between countries and its influence on the strategy of international subsidiaries.

This study applies the transaction cost and behavioural theory and presents an exploratory and qualitative methodology approach through six semi-structured in-depth interviews to evaluate managers’ perceptions of distance between countries.

The research findings show that cultural and economic distances indeed have a major influence on subsidiary strategy and a smaller impact of administrative and geographic dimensions, which results into forced changes on the marketing-mix, i.e. product, price, design and brand, as well as on the level of autonomy granted to foreign subsidiaries.

The limitation is related to the home country and the entry mode of foreign direct investment. The findings presented here reflect the nature and behaviour of Portuguese companies with subsidiaries.

The research provides recommendations for managers to be aware of the influence of more than one dimension of distance between countries to improve their decision-making of standardisation-adaptation strategy for foreign subsidiaries. Furthermore, the study stresses that managers’ perceptions may lead to the conclusion that proximity and knowledge of foreign markets does not make international business easier.

This empirical research not only tests the transaction cost theory and behavioural theory on managers’ decisions to invest abroad but also promotes organisational changes to achieve the suitable strategy for international subsidiaries. The study contributes to the area of international business by positing six research propositions concerning distance between countries to be tested in future studies.

The purpose of this paper is to advance the theoretical development of the content marketing concept and its integration into high-tech marketing theory, in entrepreneurial contexts and from a business model innovation perspective.

The paper provides a conceptual overview of content marketing and business model innovation concerning high-tech entrepreneurs.

The high-tech entrepreneurial content marketing (HIT-ECM) framework has five delineating elements with a small high-tech firm as the focal point: adapting content marketing in the business model, customizing content and customer profiling, organizational learning and experimenting with the business model, building strategic networks and content marketing and the small high-tech firm’s business model innovation. The HIT-ECM framework considers how high-tech entrepreneurs capitalize on their capabilities and use innovative marketing strategies to sell their high-tech solutions under unpredictable conditions and limited resources.

From a managerial perspective, HIT-ECM poses five questions managers should ask themselves when they adopt content marketing and integrate it into their existing business models: how can content create value, how novel content development activities reflect on innovating the business model, how will content development reflect on the business model structure, who is involved and what are the revenue streams of content development.

This is an original paper that presents the HIT-ECM framework for high-tech entrepreneurs to use content marketing and capture customer value through every aspect of their business operations, as well as updating and innovating their business models.

In this chapter we test a conceptual model to shed light on the psychic distance (PD) hazards in cross-border acquisitions’ (CBAs’) performance. Only a few studies have sought to examine the impact of national-level dimensions on CBAs’ performance, such as cultural distance or PD, with non-conclusive and contradictory results. Event study methodology is used to scrutinize the impact of the five key dimensions of psychic distance stimuli (PDS) on the stock market performance of the US acquirer firms and 26 countries involved in the CBA. Our results support that PD, as a whole, has a negative impact on CBAs’ performance although only in the short term there is a statistically significant negative impact, whereas in the long term no effect is statistically significant. Analyzing the different dimensions of PDS, only differences in language, education, and political systems are significant. This chapter is the first to empirically examine the PD hazards on CBAs by breaking down the PDS and test the effect of each dimension on CBAs´ performance. The findings of this study may be useful for managers of firms that wish to undertake CBAs as it denotes important dimensions which hinder post-deal performance.