Search results
1 – 10 of over 1000The chapter addresses two research questions. Firstly, where does the line between the highly internationalised small and medium enterprises (SME) and micromultinationals (mMNE…
Abstract
Purpose
The chapter addresses two research questions. Firstly, where does the line between the highly internationalised small and medium enterprises (SME) and micromultinationals (mMNE) lie? Secondly, what are the success factors and hindrances to the process of becoming an mMNE? How to internationalise being a small company and build prosperous relationships on the foreign and domestic market on the way to becoming mMNE?
Methodology/approach
The single company longitudinal case study of a furniture producer from Poland is analysed. Data for the case was collected using six detailed interviews.
Findings
Due to different networking possibilities, which are often based on long-term but not formalised cooperation, sometimes the line between the highly internationalised SME, formally using only exporting and the mMNE is very narrow. The analysis corroborates the former studies concerning factors of the successful establishment of mMNEs, drawing attention to the importance of entrepreneurship and networking. However strong embeddedness in domestic relationships may constitute, at the same time, a driver as well as a hindrance in the process described.
Originality/value
The case study examines in detail the process of becoming an mMNE which may be used for teaching purposes regarding new organisational forms in international business.
Details
Keywords
Jorge Carneiro, Victor Amaral, Henrique Pacheco, Sylvia Moraes and Gilberto Figueira da Silva
This study sheds light on the complex relationship between international diversification and firm performance and explores whether future performance expectations seem to drive…
Abstract
Purpose
This study sheds light on the complex relationship between international diversification and firm performance and explores whether future performance expectations seem to drive managerial decisions related to internationalization issues.
Methodology/approach
We conducted in-depth investigation of five firms. This qualitative approach is allegedly better equipped to uncover the peculiarities of specific internationalization decisions by individual companies and the performance consequences derived from modifications in the degree of international diversification, which might go unnoticed in large-sample statistical analyses.
Findings
In line with Hennart’s (2007, 2011) and Verbeke and Brugman’s (2009) theoretical arguments, our findings indicate that no universal relationship should be expected between international diversification and firm performance. Rather, the performance consequences of internationalization-related decisions depend on the particular combinations of a firm’s characteristics and environment contingencies. Given managerial discretion, internationalization decisions would not be randomly made, but rather would be endogenous, and, as such, the relationship between multinationality and performance can only be understood if one takes a contingent approach. Additionally, internationalization decisions seem to be taken within a context of uncertainty regarding the future, which suggests that managers seem to approach internationalization with a long-term perspective and may in fact be “buying real options.”
Research limitations/implications
This study examined only five cases and they all relate to a particular type of firm: all are headquartered in a large emerging market with good domestic growth prospects, and each either is the leader or stands among the largest in its industry in the domestic market. While this relative homogeneity in the selection of the cases minimizes confounding factors, it suggests that findings may be specific to this particular (firm and market) context.
Practical implications
Managers should be aware that decisions that modify the international configuration of a firm might have distinct implications across different firms, given the particular (firm, industry, and environment) contingencies. Therefore, no universal normative orientation should be expected between international diversification and performance.
Originality/value
Although it is often implicitly assumed that managers make (informed) decisions with the objective of improving their firms’ (long-run) performance, there has been little discussion as to whether managers have detailed information about the expected performance implications arising from decisions that change the degree of international diversification of their firm and whether such decisions are driven by expected performance outcomes.
Details
Keywords
Nina Magomedova, Fariza Achcaoucaou and Paloma Miravitlles
The aim of this study is to explore how springboard subsidiaries affect the psychic distance between the headquarters (HQ) of multinational companies (MNCs) and a distant target…
Abstract
The aim of this study is to explore how springboard subsidiaries affect the psychic distance between the headquarters (HQ) of multinational companies (MNCs) and a distant target region. The study applies a single case study methodology to analyse a springboard subsidiary located in Spain that helps its German HQ to pursue opportunities in a psychically distant Latin American region. The findings suggest that springboard subsidiaries help MNCs to reduce the perceived psychic distance between their HQ and a target region due to (1) their intermediate psychic proximity in both directions (i.e. to the HQ and the target region) and (2) their location outside the target region, which makes them somewhat ‘impartial’ and not involved in intra-regional conflicts; the study also shows that the sum of psychic distance stimuli between HQ’s home country –springboard subsidiary’s country and springboard subsidiary’s – Latin American countries is actually smaller than the direct psychic distance between HQ’s home country and Latin American countries. No previous studies have explored the effect of springboard subsidiaries on psychic distance.
Details
Keywords
To understand how diaspora entrepreneurship evolves and becomes a small-scale emerging market multinational and how this process is enabled.
Abstract
Purpose
To understand how diaspora entrepreneurship evolves and becomes a small-scale emerging market multinational and how this process is enabled.
Methodology/approach
Case study and ethnographic methods were employed.
Findings
Diaspora entrepreneurs can act as change agents who create and penetrate markets under difficult conditions. They are less influenced by institutional voids in home and host countries when they have strong international diaspora networks that enable a connection to resources, overcoming such voids. Diaspora entrepreneurs may be resource-embedded socially in a way that creates superior competitive advantages and reduces liabilities of foreignness and of outsidership.
Research limitations/implications
Diaspora entrepreneurship incorporates invisible and idiographic potential, such as social capital and knowledge networks. These are not available for other non-incumbent companies (e.g., foreign entrants) and are difficult to research due to access barriers.
Practical implications
Perception and active management of network-based resources is important for opportunity and business development. Management in a transition economy context requires holistic views, deep understanding, and working linkages across markets.
Social implications
Transgenerational entrepreneurship and ethnic traditions are important for the community. Entrepreneurship provides continuity and identity, such as using ethnic language, as well as prosperity and solidarity that are important for supporting cultural identity.
Originality/value
This study connects diaspora entrepreneurship in Central Asia and emerging market multinationals that are small and medium-sized enterprises. Both are underexplored domains, but may share particular institutional settings. Growth and internationalization into a multinational enterprise with an emerging market origin, especially by women entrepreneurs, are rarely studied. This case illustrates the need to capture the processual dynamics, resources, and actor networks, including sociocultural and spatiotemporal factors for better contextualization.
Details
Keywords
Peter W. Liesch and Lawrence S. Welch
In this chapter we chart the evolution of the theory of the multinational enterprise (MNE) from Buckley and Casson’s original depiction to Buckley’s conceptualization of the…
Abstract
In this chapter we chart the evolution of the theory of the multinational enterprise (MNE) from Buckley and Casson’s original depiction to Buckley’s conceptualization of the global factory. Within that context we consider the issues of risk and uncertainty which continue to challenge firms in the international context. Indeed, despite the explosion in access to greater wealth of digital sources of information and knowledge, risk, uncertainty, volatility, complexity, and ambiguity remain constraints on the ability of firms to function effectively in the international arena. Theoretical development around the nature of the MNE must deal with such enormities, but also other demands in the global context. The evolution of the global factory has been recognized as the disintegration of the MNE through the externalization of many of its previously core activities, including parts of production and marketing, but this form of the MNE will not be the end-game. Ultimately, it may be questioned whether the MNE is becoming, or has become, just a global super-manager of value activities orchestrating the internationalization of production.
Details
Keywords
Wang Yingjie and Su Yang
China is now deeply involved in the process of globalization. It confronts conflicts, such as traditions versus modernization, internationalization versus localization, and…
Abstract
China is now deeply involved in the process of globalization. It confronts conflicts, such as traditions versus modernization, internationalization versus localization, and Chinese values versus. universal values. China is more open to the outside world than ever. The authors’ survey of the Journal of International and Comparative Education Research reveals that Chinese comparative educators are turning the focus of their studies to try new paradigms in the context of globalization.
Details
Keywords