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Article
Publication date: 14 December 2022

Mats Forsgren and Mo Yamin

The purpose of this paper is twofold: to analyse what theories assume about multinational enterprises (MNEs) when they claim these are superior and to discuss possible…

Abstract

Purpose

The purpose of this paper is twofold: to analyse what theories assume about multinational enterprises (MNEs) when they claim these are superior and to discuss possible explanations for why MNE superiority seems to be dominant in the international business (IB) research field.

Design/methodology/approach

A common theme in mainstream IB theories is that multinational enterprises (MNEs) are superior in terms of cost efficiency and innovativeness compared with other types of organizations. A closer look at transaction cost economics (TCE)/internalization theory, evolutionary theory and dynamic capability theory reveal a bias toward MNE supremacy because of how MNEs are conceptualized as firms and therefore fail to explain the essence of “multinational advantage”. These revelations and the strong dependence on the benevolence to provide unbiased data means that MNE supremacy posited by mainstream IB theories is as much a rationalized myth as an empirical fact.

Findings

Although mainstream theories differ when it comes to the building blocks that constitute MNE supremacy, they have one attribute in common: they are silent as to why MNEs are superior compared with, for example, domestic firms or other types of economic agents. Irrespective of whether the focus is the strength of the hierarchy, the skill of managers or a common identity, nothing in the theories tells us that these factors are more pronounced in MNEs than in other types of economic actors.

Originality/value

The paper deals with the issue of multinational advantage. It claims that mainstream theories of MNEs tend to assume, explicitly or implicitly, that MNEs are superior in terms of cost efficiency and innovativeness compared with other types of economic agents. The analysis demonstrates that this tendency is a consequence of how MNEs are conceptualized as firms in the different theories as well as of the strong dependence in IB research on the benevolence of MNEs to provide unbiased data. It is concluded that MNE supremacy posited by mainstream IB theories is as much a rationalized myth as an empirical fact.

Details

Critical Perspectives on International Business, vol. 19 no. 4
Type: Research Article
ISSN: 1742-2043

Keywords

Open Access
Article
Publication date: 28 November 2023

Silvia Massa, Maria Carmela Annosi, Lucia Marchegiani and Antonio Messeni Petruzzelli

This study aims to focus on a key unanswered question about how digitalization and the knowledge processes it enables affect firms’ strategies in the international arena.

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Abstract

Purpose

This study aims to focus on a key unanswered question about how digitalization and the knowledge processes it enables affect firms’ strategies in the international arena.

Design/methodology/approach

The authors conduct a systematic literature review of relevant theoretical and empirical studies covering over 20 years of research (from 2000 to 2023) and including 73 journal papers.

Findings

This review allows us to highlight a relationship between firms’ international strategies and the knowledge processes enabled by applying digital technologies. Specifically, the authors discuss the characteristics of patterns of knowledge flows and knowledge processes (their origin, the type of knowledge they carry on and their directionality) as determinants for the emergence of diverse international strategies embraced by single firms or by populations of firms within ecosystems, networks, global value chains or alliances.

Originality/value

Despite digital technologies constituting important antecedents and critical factors for the internationalization process, and international businesses in general, and operating cross borders implies the enactment of highly knowledge-intensive processes, current literature still fails to provide a holistic picture of how firms strategically use what they know and seek out what they do not know in the international environment, using the affordances of digital technologies.

Details

Journal of Knowledge Management, vol. 27 no. 11
Type: Research Article
ISSN: 1367-3270

Keywords

Article
Publication date: 19 December 2022

Mehmet Mithat Üner, Ceyhan Cigdemoglu, Yihuai Wang, Aybuke Yalcin and S. Tamer Cavusgil

The purpose of this paper is to reveal the assumptive concept of internationalization because it is discussed and understood in the international business (IB) literature. This…

Abstract

Purpose

The purpose of this paper is to reveal the assumptive concept of internationalization because it is discussed and understood in the international business (IB) literature. This paper develops a framework to reconceptualize internationalization in the context of global value chain (GVC) and sustainability. Based on this conceptual framework, this paper aims to formulate interrelated propositions to define internationalization.

Design/methodology/approach

This paper reviews the assumptive conceptualization process based on empirical evidence obtained through qualitative, illustrative and descriptive content analysis methods. Through the collection and qualitative content analysis of milestone papers, this paper demonstrates the fragmentation of the concept of internationalization. This paper reviews the evolving nature of the concept of internationalization, analyzing the accumulative issues associated with defining internationalization, as well as its potential future development.

Findings

This paper introduces a dynamic perspective on the evolving nature of the concept of internationalization and argue there is a need to reconceptualize internationalization in the context of the GVC and sustainability.

Originality/value

After reviewing the context in which the term “internationalization” has been applied and taking into consideration the current trends in the IB, this paper formulates an updated definition of the term internationalization. This paper offers a viewpoint on the future direction of the concept of internationalization in light of the growing importance of sustainability within IB.

Details

Review of International Business and Strategy, vol. 33 no. 4
Type: Research Article
ISSN: 2059-6014

Keywords

Article
Publication date: 25 July 2023

Tong Tong, Tarlok Singh, Bin Li and Lewis Liu

This paper aims to investigate the primary motivations for China’s outward foreign direct investment (ODI) decisions.

Abstract

Purpose

This paper aims to investigate the primary motivations for China’s outward foreign direct investment (ODI) decisions.

Design/methodology/approach

Using a panel data sample covering the period 2003–2012 and a comprehensive set of 176 host countries.

Findings

This study finds that market size, trade variables and natural resource variables are strongly related to the Chinese ODI stocks. This indicates that Chinese ODI decisions are driven by both market- and resource-seeking motives. The subperiod sample test results lend even stronger support to the market-seeking motive for ODI.

Originality/value

These results seem to emerge from the policy changes that were undertaken during the sample period. Consistent with subgroup tests, this study finds that the main purposes of China’s ODI in the top 100 countries are natural resource explorations and production line replacements.

Details

Pacific Accounting Review, vol. 35 no. 4
Type: Research Article
ISSN: 0114-0582

Keywords

Article
Publication date: 11 January 2024

Heba F. Zaher and Gilberto Marquez-Illescas

This paper aims to examine the existing literature on firms’ power through the lens of the supply chain and highlights some gaps that could be covered by future research.

Abstract

Purpose

This paper aims to examine the existing literature on firms’ power through the lens of the supply chain and highlights some gaps that could be covered by future research.

Design/methodology/approach

This study uses a systematic framework-based review combining the insights of the antecedents, decisions and outcomes (ADO) and theories, contexts and methods (TCM) frameworks. The review was carried out using a sample of 108 articles published between 1984 and 2022 in 25 prestigious journals.

Findings

The ADO framework maps out the state of the art of the antecedents of power (i.e. sources and types of firm power), the decision to use power and the effect that exercising power over other firms may have on firm performance and the quality of inter-firm relationships. In addition, this framework highlights factors that mediate or moderate the decision to exercise power and the factors that mediate or moderate the outcomes of exercising power or power asymmetry. The TCM framework provides insights into the theories, contexts (i.e. countries, industries, level of analysis and sources of data) and methods used by the existing literature. The content analysis using the aforementioned frameworks provides the basis to elaborate propositions for future research on power in the supply chain from the perspective of gender differences.

Research limitations/implications

This systematic literature review offers a comprehensive guide for researchers to understand the antecedents, decisions and outcomes of firm power in the supply chain, as well as the TCM used in the literature. The content analysis using frameworks provides a road map to investigate the proposed factors that might moderate the decision to exercise power and the outcome of exercising power or power asymmetry from the perspective of gender differences. In addition, based on content analysis, the authors make propositions about TCM that could be applied in future research.

Practical implications

From a practical perspective, this systematic literature review may help managers to better understand the sources and consequences of their firm’s power. This would allow managers to make better decisions when negotiating with their supply chain parties, which could potentially lead to better performance for their firms and the whole supply chain.

Originality/value

To the best of the authors’ knowledge, this study is the first to conduct a comprehensive systematic literature review of the different dimensions of firms’ power in the supply chain.

Details

Journal of Business & Industrial Marketing, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 9 August 2023

Nripendra P. Rana, Anurag Singh, Satyanarayana Parayitam, Anubhav Mishra and Deepa Bhatt Mishra

The pandemic has severely affected sharing economy businesses specially ride-hailing services due to high levels of human-touch points. This research investigates the impact of…

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Abstract

Purpose

The pandemic has severely affected sharing economy businesses specially ride-hailing services due to high levels of human-touch points. This research investigates the impact of COVID-19 infodemic, identification, and emotional support on intention to use ride-hailing. The authors further examine the moderating effects of internalization, compliance, social currency and informational support in the proposed conceptual model.

Design/methodology/approach

The data were collected from 412 respondents from Delhi in India, and hypothesized relationships were tested using hierarchical regression.

Findings

The results indicate that COVID-19 infodemic has a negative association with intention to use ride-hailing. Identification and emotional support show a positive association with intention to use ride-hailing. The results also support internalization and compliance as moderators between infodemic, identification and intention to use ride-hailing. Further, social currency and information support moderate the relationship between emotional support and intention to use.

Originality/value

This is the first research, which adds to the expanding literature on ride-hailing, especially during the post-pandemic period of “new normal”.

Details

Marketing Intelligence & Planning, vol. 41 no. 7
Type: Research Article
ISSN: 0263-4503

Keywords

Open Access
Article
Publication date: 7 November 2023

Sarah Franz, Axele Giroud and Inge Ivarsson

This study aims to analyse how multinational corporations (MNCs) organise value chain activities to penetrate new market segments. It contributes by expanding traditional…

Abstract

Purpose

This study aims to analyse how multinational corporations (MNCs) organise value chain activities to penetrate new market segments. It contributes by expanding traditional decisions regarding the vertical fine-slicing of value chain activities (whether performed internally or externally) and the consideration of resource-sharing decisions (integration or separation) for each value chain function.

Design/methodology/approach

The authors draw on primary data collected from two case study firms operating in the large emerging Chinese market: Volvo Construction Equipment AB and Epiroc AB. In-depth cases illustrate how foreign MNCs expand into new market segments and simultaneously target both the lower-priced mid-market and the premium segments in the Chinese mining and construction industry.

Findings

The results reveal that product diversification creates challenges for managers who must oversee new (vertical) value chains, often simultaneously. Beyond geography and modes of governance, managers must decide whether to integrate or separate value chain activities for the new product lines. The study identifies four main strategic choices for firms to address this complexity, focusing on the decision to internalise or externalise (i.e. within or across organisational boundaries) and integrate or separate value chain activities between different product lines.

Originality/value

This study builds upon the internalisation theory and recent international business contributions that focus on value chain configurations to explain MNCs’ product diversification as a growth strategy in a host emerging market. It also sheds light on the choice of conducting new activities in-house or externally and elucidates firms’ managerial decisions to operationally integrate or separate individual value chain activities. The study provides insights into the drivers explaining managerial decisions to configure value chain activities across product lines and contributes to the growing body of literature on MNC activities in emerging economies by highlighting that product diversification impacts entry mode diversity and resource sharing across units.

Content available
Book part
Publication date: 16 May 2024

Abstract

Details

Walking the Talk? MNEs Transitioning Towards a Sustainable World
Type: Book
ISBN: 978-1-83549-117-1

Book part
Publication date: 16 May 2024

Mohammad B. Rana and Matthew M. C. Allen

The changing roles of the United Nations (UN) and national institutions have made addressing climate change a critical concern for many multinational enterprises’ (MNEs) survival…

Abstract

The changing roles of the United Nations (UN) and national institutions have made addressing climate change a critical concern for many multinational enterprises’ (MNEs) survival and growth. This chapter discusses how such institutions, which vary in their nature and characteristics, shape firm strategies for climate change adaptation. Exploring different versions of institutional theory, the chapter demonstrates how and why institutional characteristics affect typical patterns of firm ownership, governance, and capabilities. These, in turn, influence companies’ internationalisation and climate-change strategies. Climate change poses challenges to how we understand firms’ strategic decisions from both an international business (IB) (HQ–subsidiary relations) and global value chains (GVC) (buyer–supplier relations) perspective. However, climate change also provides opportunities for companies to gain competitive advantages – if firms can reconfigure and adapt faster than their competitors. Existing IB and GVC research tends to downplay the importance of climate change strategies and the ways in which coherent or dysfunctional institutions affect firms’ reconfiguration and adaptation strategies in a globally dispersed network of value creation. This chapter presents a perspective on the institutional conditions that affect firms’ climate change strategies regarding ownership, location, and internalisation (OLI), and GVCs, with ‘investment’ and ‘emerging standards’ playing a significant role. The authors illustrate the discussion using several examples from the Global South (i.e. Bangladesh) and the Global North (i.e. Denmark, Sweden, and Germany) with a special emphasis on the garment industry. The aim is to encourage future research to examine how a ‘business systems’, or varieties of capitalism, institutional perspective can complement the analysis of sustainability and climate change strategies in IB and GVC studies.

Details

Walking the Talk? MNEs Transitioning Towards a Sustainable World
Type: Book
ISBN: 978-1-83549-117-1

Keywords

Article
Publication date: 5 October 2023

Kaone Bakokonyane and Nkobi Owen Pansiri

The purpose of this study was to examine the application of the collaborative research supervision approach (CRSA) to learning projects in higher education, using socialisation…

Abstract

Purpose

The purpose of this study was to examine the application of the collaborative research supervision approach (CRSA) to learning projects in higher education, using socialisation, externalisation, combination and internalisation (SECI) dimensions. The study, therefore, examined how these dimensions assisted learners in Botswana's higher education to generate research knowledge.

Design/methodology/approach

The study used a mixed-method research approach and exploratory research design. Purposive sampling was used to examine how the CRSA dimensions were employed in a classroom of 111 higher education learners who were carrying out research projects. Out of this population, 97 responded to a questionnaire, and 14 learners participated in a face-to-face interview. One hundred and eleven research documents produced by learners were analysed, and 42 observations were conducted.

Findings

The study found that the four dimensions of CRSA assist greatly in the development of knowledge of the research processes. This study confirms that the CRSA in higher education institutions has the potential to enhance research knowledge and skills, build learners' confidence in research, engage in learning, reduce workload, reduce the frustration of doing research and help learners complete their work in time. Learners with weak research skills easily catch up with their average-performing peers.

Research limitations/implications

It is important to recognise the methodological limitations of this study. The study used a mixed method and a single case. As a result, the results' significance cannot be justified. Additionally, the context and methodology restrict the findings' generalisability. There is obviously potential for additional cases since this article only offers a preliminary analysis of the single case issue. Consequently, the study recommends that yet another study could be conducted to check if the approach could be used for graduate learners. Another study could also be conducted to check if the approach could be used as a supervisory approach that can provide prospects for knowledge sharing and creating learning in an organisation.

Practical implications

The study discovered that when properly implemented, CRSA arrangement enhances research knowledge development and reduces the workload for both the supervisor and the student. When choosing this desired research supervision approach, either in terms of policy or in actual practice, it is important to take the potential for information exchange into account. This might result in improved research supervision efficacy in higher education and hence the production of better quality graduate learning projects.

Social implications

This study recommends the use of the CRSA in higher education, so as to help learners with weak research skills, to collaboratively work with learners with high and average research skills. It also improves the quality of supervisor–learner learning relationship.

Originality/value

The research results were given to participants and respondents for approval to find out if what was written was what they said. The research results were also given to colleagues to check whether the analysis is balanced and fair and to check biases and exaggerations.

Details

Journal of Applied Research in Higher Education, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2050-7003

Keywords

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