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1 – 10 of over 19000Tõnu Roolaht and Urmas Varblane
The purpose of this paper is to show how the inward‐outward dynamics in the internationalisation of Baltic banks have led towards higher incorporation into Nordic banking groups…
Abstract
Purpose
The purpose of this paper is to show how the inward‐outward dynamics in the internationalisation of Baltic banks have led towards higher incorporation into Nordic banking groups and subsequently towards diminishing autonomy.
Design/methodology/approach
The paper presents two case studies, which characterise the evolution of international inward‐outward connections in two major Baltic banking groups – Hansabank Group and Skandinaviska Enskilda Banken (SEB) Group.
Findings
Acquisitions by Swedish banks in 1998 had a different impact on the internationalisation of the two leading Baltic banking groups. Inward‐outward connections in the case of the Hansabank Group meant that they obtained strong autonomy in controlling Swedbank's activities in the Baltic. In the case of Eesti Ühispank, Latvijas Unibanka and Vilniaus Bankas inward‐outward linkages meant that they lost autonomy about the further expansion to other Baltic countries and were eventually transformed into Baltic subsidiaries of SEB. These differences in strategies between Swedish banks could be explained by the background of the companies (especially their previous internationalisation experience). However, latest developments point towards growing similarities between two groups via incorporation of Hansabank into Swedbank group.
Research limitations/implications
The case study has inherently limited the capacity to offer generalisations concerning other service companies.
Practical implications
These results indicate the inward‐outward development pattern of international service companies. The managers of similar companies can use this development pattern to project the dynamics of market entry strategies.
Originality/value
The paper introduces original experience allocation framework in the context of inward‐outward internationalisation and outlines the dynamic nature of the strategic relations between the foreign owner and its subsidiary.
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Susan Freeman, Seyda Deligonul and Tamer Cavusgil
Current conceptualizations of born‐globals lack a full theoretical explanation of strategic re‐structuring through the use of outward and inward‐oriented activity and the…
Abstract
Purpose
Current conceptualizations of born‐globals lack a full theoretical explanation of strategic re‐structuring through the use of outward and inward‐oriented activity and the processes of de‐internationalization and re‐internationalization. Strategy and internationalization processes are created by entrepreneurial behaviour. If one wants to understand various international behaviours and strategic changes in firms one needs to focus on entrepreneurs – individual managers. The purpose of this paper is to unify the theoretical framework on born‐globals by addressing two questions. How do managers move through the de‐internationalization (exit) to re‐internationalization (re‐entry) process? How do they choose their patterns of internationalization?
Design/methodology/approach
To address these research gaps, this study draws on 26 in‐depth interviews with senior managers across nine Australian born‐globals.
Findings
Moving between outward and inward‐oriented activity as they de‐internationalize and re‐internationalize is used as proactive strategic re‐structuring by born‐global managers for survival during periods of global economic decline or changing competitive conditions.
Originality/value
This study provides new theoretical insights where the entrepreneur is central to the internationalization process and provides practical implications for those involved in international business and marketing.
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The aim of this paper is to explore the inward internationalization process of consumer services. It also aims to conduct a review of the service internationalization literature…
Abstract
Purpose
The aim of this paper is to explore the inward internationalization process of consumer services. It also aims to conduct a review of the service internationalization literature and use the resource‐based view of the firm as a theoretical approach.
Design/methodology/approach
Case study methodology is used to explore the internationalization process of five different consumer service sectors: tourism, education, accommodation, transport and entertainment. The main data collection method was interviews conducted with top managers of 12 Australian consumer service firms from these sectors.
Findings
Findings of this study show that inward internationalizing services confront most of their barriers, such as immigration policies, exchange rate fluctuations, and cultural differences, in the domestic market where the service is provided. The findings also suggest that superior intentional performance for consumer service firms combines firm‐specific resources and capabilities, such as market orientation, service quality, cultural sensitivity, international communicational activities, partnerships and networks, with country‐specific resources and capabilities, such as country‐of‐origin image and government support.
Research limitations/implications
This is one of the few studies in the academic literature that directly addresses the issue of inward internationalization of consumer services. Limitations derive from the qualitative nature of this study.
Practical implications
The process of inward internationalization applies to a broad range of service industries and can assist firms to develop more effective international marketing strategies.
Originality/value
This study contributes to the international services literature by identifying the main barriers and drivers of international performance for inward internationalizing consumer service firms, which is a topic that has been neglected in the literature.
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Mina Behyan, Osman Mohamad and Azizah Omar
The purpose of this paper is to investigate several concepts of inward and outward internationalization and their impact on export performance in the context of Malaysian…
Abstract
Purpose
The purpose of this paper is to investigate several concepts of inward and outward internationalization and their impact on export performance in the context of Malaysian manufacturing exporting firms.
Design/methodology/approach
Mail survey was administered to gather data from the Malaysian manufacturing firms that have been identified to have business export trading to the major oil and gas producer countries in the Middle East. A total of 120 respondents were received and further analysis was tabulated.
Findings
Findings revealed that the outward internationalization is positively related to economic and non-economic measures of export performance. It indicates that an outward internationalization related to organizational capability has a major contribution to the export performance of Malaysian manufacturing and exporting firms. On the other hand, top management international orientation as an inward internationalization is negatively and significantly associated with economic measures, but not in the non-economic measures of the export performance.
Research limitations/implications
The cross-sectional nature of this study may have limitations with respect to examining the direction and causality of some of the variables. The findings are limited to Malaysian manufacturing firms exporting to targeted markets. The significant of this study emanates from its expected theoretical implications to knowledge and practical implications to business and public organization. It lends support to the internationalization theory and contributes to a firm’s performance and enhances their export marketing knowledge with useful implications for international and relationship marketing.
Originality/value
The results support the proposition that internationalization of firms from emerging nations are dependent on learning, acquiring and applying the knowledge from other firms particularly from firms originating from advanced developed nations.
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Yu‐Ching Chiao, Chow‐Ming Joseph Yu, Peng‐Yu Li and Yi‐Chuan Chen
This study aims to explore subsidiaries' diversification strategies, both internationally and with regard to their product offerings. The study seeks to examine, at the subsidiary…
Abstract
Purpose
This study aims to explore subsidiaries' diversification strategies, both internationally and with regard to their product offerings. The study seeks to examine, at the subsidiary level, the relationships between subsidiary size, internationalization, production diversification, and performance.
Design/methodology/approach
Based on the archival data of an officially conducted survey, the study used ordered logit regression analysis to test its hypotheses using data from 920 Taiwanese subsidiaries in China.
Findings
The study's results revealed: larger subsidiaries tend to engage in internationalization and product diversification activities to a greater degree, and, as a result, tend to exhibit superior performance; and subsidiaries that pursue outward internationalization and that reinvest in related businesses enjoy enhanced performance.
Research limitations/implications
This study examines Taiwanese firms that have one foreign subsidiary in China. Future research should examine larger firms with numerous foreign subsidiaries in developed countries, and should employ more fine‐grained measurements of subsidiary size to provide a clearer picture of subsidiary‐specific advantages.
Originality/value
Unlike the existing literature, which has tended to take the perspective of the multinational corporation, this study examines internationalization and product diversification at the subsidiary level. By extending the resource‐based view to the subsidiary level, larger subsidiaries might be able to exploit their advantages so as to more successfully implement international and product diversification strategies and improve their performance in a host country.
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This study examines the internationalization process within the textiles and apparel industry in two countries: Lithuania and Moldova. In particular, this study shows how the…
Abstract
This study examines the internationalization process within the textiles and apparel industry in two countries: Lithuania and Moldova. In particular, this study shows how the evolution by an industry toward greater internationalization is intricately linked to its ability to move up its specific value chain. This analysis compares and contrasts the ability of this industry in a Western European (Lithuania) and a nonaccession Eastern European country (Moldova) to move up the textiles and apparel value chain and so achieve higher levels of internationalization. In examining and relating the relevant factors, this analysis provides insights into – and suggests important modifications to – important concepts and themes such as the stage theory of internationalization, the role of “inward-outward” linkages in the value creation process, the mechanism of the internationalization of small and medium-sized enterprises, and the part played by the European Union in the internationalization (and thus globalization) process.
Yan Chen, Rui-Rui Zhai, Chengqi Wang and Changbiao Zhong
The purpose of this paper is to examine how home institutions moderate the influence of internationalization, and the effect this has on the performance of stock-listed Chinese…
Abstract
Purpose
The purpose of this paper is to examine how home institutions moderate the influence of internationalization, and the effect this has on the performance of stock-listed Chinese firms.
Design/methodology/approach
A sample of 118 stock-listed Chinese firms over the period 2006-2011 was considered, using the panel data method.
Findings
The results show that foreign ownership and region-specific marketization help firms reap the performance benefits of internationalization, while state ownership plays an insignificant role.
Research limitations/implications
The findings may not hold for unlisted firms, service firms or firms from other emerging economies.
Practical implications
The study suggests that Chinese managers should take advantage of home country institutions to improve the effects of internationalization on performance.
Originality/value
This research suggests that the analysis of the performance consequences of internationalization should go beyond the nexus between internationalization and performance, and also consider the home institutional factors that may facilitate or constrain the focal relationship.
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William Chongyang Zhou and Sunny Li Sun
Extant literature has indicated that government support is one of the main drivers of international expansion of Chinese multinational enterprises. However, research on the…
Abstract
Purpose
Extant literature has indicated that government support is one of the main drivers of international expansion of Chinese multinational enterprises. However, research on the influence of governors on firm internationalization is still limited. Drawing upon the institution-based view, we theorize a novel concept of institutional enablement to illustrate the influence of a governor's pro-market ideology on Chinese firms' internationalization.
Design/methodology/approach
We analyze the relationship between a governor's pro-market ideology (consisting of a pro-market political ideology, an overseas educational background and a business background) and firm internationalization with a sample of Chinese public companies during 2014–2017.
Findings
We find a direct and positive effect of a governor's pro-market ideology on firm internationalization. We also find an indirect and positive effect of a governor's pro-market ideology through regional, inward foreign direct investment.
Originality/value
To the best of our knowledge, this paper is the first to investigate an underexplored question of the impact of governors on firm internationalization and to develop a novel concept of institutional enablement, based on discursive institutionalism.
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The purpose of this paper is to investigate how resource-constrained, knowledge-intensive firms capitalise on the knowledge from collaboration with big-science centres. It pays…
Abstract
Purpose
The purpose of this paper is to investigate how resource-constrained, knowledge-intensive firms capitalise on the knowledge from collaboration with big-science centres. It pays particular attention to what kind of knowledge a firm obtains and how it can be efficiently used in exploring and exploiting opportunities in international markets.
Design/methodology/approach
The empirical basis for the study is a longitudinal case study of knowledge-intensive Estonian companies that collaborate with the European Space Agency (ESA). A rich data set was collected over three years.
Findings
By studying the inward and outward activities of the two case companies collaborating with the ESA, the authors found that the internationalisation process of these firms had unique characteristics. Their international expansion was not driven by increasing market knowledge and reducing risk or uncertainty, but by resource seeking for research and development efforts. It was a cyclical, non-linear process, which was advanced by co-creation, learning and exploitation of the emergent knowledge, leading to an improved network position and identification of further opportunities.
Research limitations/implications
The focus was on knowledge-intensive, resource-constrained firms and their collaboration with big-science centres. The transfer of the proposed framework to another context may not be straightforward. The authors relied on informants from the firms, thus ignoring the view of their partner, the big-science centre. It may be that because of this perspective, the authors did not capture some aspects of the collaboration. A broader range of cases would have provided more powerful support to the findings. Although the cases were sufficient for theory refinement and building a tentative framework, they also call for further cases that would clarify whether these conclusions would be valid for other companies.
Practical implications
Collaboration with big-science centres provides companies with access to diverse types of knowledge. However, its impact on the future success in internationalisation also depends on other factors, such as the firm’s absorptive capacity and technological competence.
Social implications
Governments invest substantially on the development of big-science centres with the expectation that they would have significant knowledge spillovers on the technology development. A more qualitative approach to impact assessment opens new ideas how to develop their activities and in particular their collaboration with SMEs.
Originality/value
The study reassesses the theory on the internationalisation process of the firm and gives voice to companies which have been marginalised in earlier research.
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Ingmar Björkman and Sören Kock
Suggests that most research on internationalization of service firms has investigated how companies over time have developed their outward business operations. Finds, however…
Abstract
Suggests that most research on internationalization of service firms has investigated how companies over time have developed their outward business operations. Finds, however, that some service firms, especially within the tourism industry, have chosen another way of handling international business operations, namely by marketing their services abroad, often helped by middlemen such as tour operators and travel agents, expecting customers to come to their home country where services are produced and consequently must be consumed. Uses three cases to describe and analyse the process of “inward internationalization”, and to illustrate how the inward international activities may be carried out.
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