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1 – 10 of 234Through the subject of business network dynamics, this study aims to examine how business network relationships impact company entry market and development within fast growing…
Abstract
Purpose
Through the subject of business network dynamics, this study aims to examine how business network relationships impact company entry market and development within fast growing economies as China. The paper looks at business network relationships in a fast-growing economy and provides an understanding of the relational perspectives in internationalisation of three luxury fashion companies and their entry models affected by the China context-related variables.
Design/methodology/approach
The methodology is following a qualitative approach, based on multiple case-studies research, proposing three cases of companies entering the Chinese market in the luxury and fashion industry.
Findings
The research analyses the local business network paths and how they affect the entry strategy through the socio-cultural and political players. The paper adds knowledge to studies in market entry and business networks, in the fast-growing economies area, with its new norms and values.
Originality/value
This study tries to analyse how business networks and related relationships “with Chinese characteristics” affect the market entry strategy in the internationalisation path from the perspective of the luxury fashion industry sector. In so doing it tries to provide an original further development of business network models within the new Chinese context.
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Foreign subsidiaries of multinational enterprises (MNEs) operate in complex and competitive international environments, implement market and non-market strategies, manage…
Abstract
Purpose
Foreign subsidiaries of multinational enterprises (MNEs) operate in complex and competitive international environments, implement market and non-market strategies, manage resources and value-added activities and contribute to the overall performance of their parent firms. Thus, the research question on the determinants of MNE foreign subsidiaries’ performance is of interest to managers and academic researchers. The empirical literature has flourished over the recent decades; however, the domains are fragmented, and the findings are inclusive. The purpose of this study is to systematically review, analyse and synthesize the empirical articles in this area, identify research gaps and suggest a future research agenda.
Design/methodology/approach
This study uses the qualitative content analysis method in reviewing and analysing 150 articles published in 24 scholarly journals during the period 2000–2023.
Findings
The literature uses a variety of theoretical perspectives to examine the key determinants of subsidiary performance which can be grouped into six major domains, namely, home- and host country-level factors; distance between home and host countries; the characteristics of parent firms and of subsidiaries; and governance mechanisms (the establishment modes and ownership strategy, subsidiary autonomy and the use of home country expatriates for transferring knowledge from the headquarters and controlling foreign subsidiaries). A range of objective and subjective indicators are used to measure subsidiary performance. Yet, the research shows a lack of broader integration of theories and presents inconsistent theoretical predictions, inconclusive empirical findings and estimation bias, which hinder our understanding of how the determinants independently and jointly shape the performance of foreign subsidiaries.
Originality/value
This study provides a comprehensive, nuanced and systematic review that synthesizes and clarifies the determinants of subsidiary performance, offers deeper insights from both theoretical, methodological and empirical aspects and proposes some promising avenues for future research directions.
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The case has been developed by using secondary sources of information.
Abstract
Research methodology
The case has been developed by using secondary sources of information.
Case overview/synopsis
Tesla’s much-awaited foray into the burgeoning Indian electric vehicle (EV) marketplace had hit the “high import tariff” roadblock. Discussions ensued and finally, Elon Musk, the CEO of Tesla and the Indian Government found common ground. The moot point of Tesla’s entry mode was resolved. Musk announced Tesla’s plan to set up an EV supply chain and manufacturing facility in the host country. This case discusses factors affecting location decision, market entry modes and international corporate-level strategies. Tata Motors sold affordable cars and was miles ahead in the EV race in India. Musk had to align Tesla’s India strategy with the company’s global strategy to woo the price-sensitive Indian consumers. What were the options available to him? This case examines different business-level strategic options that could help Tesla drive in the fast lane in India.
Complexity academic level
The case can be used in international strategy course at graduate level. It can also be used in a session on international marketing in marketing management course.
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Keywords
- International business strategy
- Competitive advantage
- International market entry
- Product differentiation
- Marketing strategy
- Market orientation
- Market entry strategy
- International corporate level strategy
- Cost leadership
- Transnational strategy
- Product differentiation
- Location choice
- Indian EV market
- Integrated cost leadership/differentiation
This perspective article aims to provide an overview of the interplay between international entrepreneurship and the dynamics of family businesses, with a particular focus on…
Abstract
Purpose
This perspective article aims to provide an overview of the interplay between international entrepreneurship and the dynamics of family businesses, with a particular focus on post-entry decisions.
Design/methodology/approach
This paper is based on a short literature review.
Findings
The convergence of international entrepreneurship and family businesses presents a compelling area of study, where post-entry decisions serve as a critical yet underexplored facet. Post-entry decisions in international entrepreneurship for family-owned businesses encompass responses to international crises and shocks and strategies for de-internationalization, restructuring or market exit.
Originality/value
This article synthesizes existing research, highlighting the importance of studying post-entry decisions in the realm of international family businesses. It encourages scholars and practitioners to delve into the unique challenges faced by these firms, ultimately enriching the understanding of international entrepreneurship within the family business context and providing valuable insights for both theory and practice.
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Alireza Safargholi, Faezeh Yousefzadeh, Mehran Rezvani, Taraneh Farokhmanesh, Mohammad Hassan Mobaraki and Jahangir Yadollahi Farsi
Small and medium-sized enterprises (SMEs) are highly concerned about every aspect of their international performance (IP) due to their limited resources. However, the literature…
Abstract
Purpose
Small and medium-sized enterprises (SMEs) are highly concerned about every aspect of their international performance (IP) due to their limited resources. However, the literature has not given equal attention to every necessary aspect and has left some fields unexplored. Moreover, different approaches to assessing SME IP have made the literature even more fragmented. This research aims to identify the gaps in the research context and assessment methods of this concept.
Design/methodology/approach
A systematic literature review and a thematic analysis method are employed to review 272 journal papers published in high-quality journals.
Findings
By extracting six contexts in which the concept of international performance of SMEs has been analyzed, this study integrates the research themes with geographical domains and highlights which contexts require more attention. Moreover, this study provides a comprehensive review of the current state of this concept’s operationalization methods, illustrating the level of fragmentation and differences in the literature. Following the presentation of an enriched future research agenda, this study guides scholars on the current gaps and needs for research in specific contexts and domains while providing suggestions for a more cohesive assessment of the concept.
Originality/value
This study is the first to systematically review the research concerning the foreign performance of firms with less than 500 employees, extract their research context, illustrate uninvestigated fields and provide helpful suggestions about the concept’s operationalization method based on a comprehensive review of the extant assessment methods.
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Sang Hoon Han, Kaifeng Jiang and Jaideep Anand
This chapter discusses how the real options theory can be useful for understanding the adoption of human resources management (HRM) practices. The authors review how the real…
Abstract
This chapter discusses how the real options theory can be useful for understanding the adoption of human resources management (HRM) practices. The authors review how the real options theory has provided insights into the processes through which firms manage uncertainties involved in the adoption of HRM practices. The authors offer propositions for future HRM research from the real options perspective. The authors contend that analyzing HRM practice adoptions through the lens of real options theory can enhance our understanding of the mechanisms through which firms choose which HRM practices to adopt and how they adjust the timing, scale, and methods of investment in these practices. Specifically, the authors suggest that differences in information relevant to valuation of HRM options are the source of distinct choices of HRM options across firms. Finally, the authors propose advancing knowledge on HRM practice adoptions by using a portfolio of options approach, as well as considering factors like competitors, path dependence, and switching options.
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Nivisha Singh, Ritesh Pandey, Rohit Gupta, Baidyanath Biswas and Shubhi Gupta
This study aims to synthesize extant literature on the concept of reverse knowledge transfer (RKT) built up over the past two decades with the help of bibliometric analyssis and…
Abstract
Purpose
This study aims to synthesize extant literature on the concept of reverse knowledge transfer (RKT) built up over the past two decades with the help of bibliometric analyssis and also to suggest promising new areas for research in this field.
Design/methodology/approach
The study adopts a literature review methodology combined with bibliometric and network analysis based on 117 papers identified from the Scopus database. In particular, this study has tried to identify and capture themes not previously fully captured or evaluated by other reviews on this topic.
Findings
The authors have identified research themes and research gaps in the area of RKT. Overall, the review shows the main outlets that have published papers on RKT and the theoretical background this research is built on. This study exhibits core themes in this area that have persisted and grown consistently such as the subsidiary’s role in RKT. In addition, the review highlights less researched themes such as role of boundary spanning in RKT, which open exciting avenues for new research opportunities.
Research limitations/implications
This study finds that RKT research has experienced remarkable growth from a complete viewpoint in recent years. There was a surge in publications in the area from 2008 onwards, and many of its influential papers seemed to have been published between 2013 and 2018. Prominent themes in this body of research have been identified and potential for future studies has been explored.
Originality/value
To the best of the authors’ knowledge, this is the first study to map, synthesize and discuss the literature concerning RKT.
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Ryuichi Nakamoto, Hao-Cheng Chen, Hiroki Noguchi and Shohei Funatsu
The Penrose effect, or the limitation of the growth rate during expansion due to managerial constraints, has been examined in the context of business diversification, withdrawal…
Abstract
Purpose
The Penrose effect, or the limitation of the growth rate during expansion due to managerial constraints, has been examined in the context of business diversification, withdrawal and MNE’s foreign direct investment, primarily in the for-profit sector. However, insufficient attention has been paid to its impact on professional service firms, particularly in the context of their expansion through service exports. The main purpose of this study is to examine the Penrose effect in the internationalization of professional service firms through service exports.
Design/methodology/approach
This study focuses on large Japanese patent firms as traditional professional service firms and constructs panel data for 48 large patent firms over the observation period from 2002 to 2010 to test our hypotheses.
Findings
Our results demonstrate a negative relationship between degree of internationalization and international business growth, thus confirming the Penrose effect. Furthermore, we found that the degree of internationalization has a curvilinear relationship with international business growth and that institutional distance does not have a negatively moderating effect on the relationship between the degree of internationalization and international business growth.
Originality/value
This study made a theoretical contribution to Penrose's growth theory and previous studies on international management and professional service firms and international management by showing that the Penrose effect can be observed in the international expansion of professional service firms through service exports. Moreover, this study identifies the factors that modify the Penrose effect, thereby making a significant theoretical contribution.
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Qiuhao Xie, Shuibo Zhang, Ying Gao, Jingyan Qi and Zhuo Feng
Although the literature recognizes that coopetition plays a significant role in the success of international construction joint ventures (ICJVs), the impacts of coopetition on the…
Abstract
Purpose
Although the literature recognizes that coopetition plays a significant role in the success of international construction joint ventures (ICJVs), the impacts of coopetition on the performance outcomes of ICJVs remain largely unknown. This study extends this line of research by theorizing coopetition from three dimensions, i.e. coopetition intensity, coopetition balance and coopetition structure, and examining the relationships between coopetition and ICJV performance outcomes from both the contingency and configuration perspectives.
Design/methodology/approach
The hypotheses were tested using survey data from a sample of 188 ICJVs. Structural equation modelling was employed for the contingency approach to estimate the relationships between the three dimensions of coopetition and performance. For the configuration approach, cluster analysis was utilized to identify coopetition patterns. Subsequently, an analysis of variance was employed to analyse the relationships between these coopetition patterns and performance.
Findings
The contingency results indicate that while coopetition intensity is positively related to all types of performance, coopetition balance is only positively related to project performance and partner performance. Moreover, coopetition structure is only related to partner performance and socioenvironmental performance. The configuration approach identifies six patterns of coopetition, manifesting different levels of project, partner and socioenvironmental performance.
Originality/value
These findings, therefore, contribute to the ICJV literature by extending the understanding of how coopetition dimensions individually and jointly influence ICJV performance.
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Md Daud Ismail, Syed Zamberi Ahmad and Sanjay Kumar Singh
This study aims to investigate the relationship between absorptive capacity, relational capital and interorganizational relationship performance and examine the moderating effect…
Abstract
Purpose
This study aims to investigate the relationship between absorptive capacity, relational capital and interorganizational relationship performance and examine the moderating effect of contractual governance on this relationship.
Design/methodology/approach
This study used a quantitative design, analyzing data collected through a survey questionnaire. The sampling frame consisted of 111 cross-industry, small and medium-sized manufacturers in Malaysia. The research model was analyzed using structural equation modeling.
Findings
The results show that interorganizational relationship performance is positively influenced by relational capital and absorptive capacity. While absorptive capacity has a positive effect on relational capital, this study finds empirical evidence that contractual governance weakens the effect of absorptive capacity on relational capital. Furthermore, this study also examines the hitherto under-researched moderating effect of contractual government on absorptive capacity and relational capital and their relationship with interorganizational relationship performance.
Originality/value
This study provides insights into the interorganizational relationship among SMEs and explains the nature of knowledge management in this context. This study shows the potential role of absorptive capacity in building close cross-border interorganizational relationships.
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