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1 – 10 of over 2000Shu Wang, Dun Liu and Jiajia Nie
It is only logical that a firm aims to make a profit after entering the market. However, some firms enter the market with the goal of market expansion and even burn money to…
Abstract
Purpose
It is only logical that a firm aims to make a profit after entering the market. However, some firms enter the market with the goal of market expansion and even burn money to pursue market share, which is counterintuitive in practice. To explore the theoretical foundations behind this rare phenomenon, this paper focuses on discussing the impact of the market expansion entry strategy on the entrant firm and the incumbent firm.
Design/methodology/approach
Using a game theory model of a supply chain with an incumbent and an entrant, this paper explores the mathematical conditions for the entrant to adopt either the traditional or the market expansion entry strategy and investigates the incumbent’s benefits and losses under different entry strategies.
Findings
The results show that when the market-expansion effect and the selling price ceiling are moderate, the entrant firm always adopts the market expansion entry strategy, and the incumbent firm obtains a free ride from the entrant firm and benefits from it. The entire industry profits and the industry consumer surplus are increased. In particular, we further investigate the cases in which the incumbent firm has a first-mover advantage or there is a troublesome cost, and the results confirm the aforementioned conclusions.
Originality/value
By considering market share as the entrant’s goal, this paper contributes to the dual-purpose literature. Moreover, based on the model’s mathematical results, this paper offers relevant management insights for the entrant and its stakeholders in the e-commerce platform.
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Shifang Zhao and Shu Yu
In recent decades, emerging market multinational enterprises (EMNEs) have predominantly adopted a big step internationalization strategy to expand their business overseas. This…
Abstract
Purpose
In recent decades, emerging market multinational enterprises (EMNEs) have predominantly adopted a big step internationalization strategy to expand their business overseas. This study aims to examine the effect of big step internationalization on the speed of subsequent foreign direct investment (FDI) expansion for EMNEs. The authors also investigate the potential boundary conditions.
Design/methodology/approach
The authors use the random effects generalized least squares (GLS) regression following a hierarchical approach to analyze the panel data set conducted by a sample of publicly listed Chinese firms from 2001 to 2012.
Findings
The findings indicate that implementing big step internationalization in the initial stages accelerates the speed of subsequent FDI expansion. Notably, the authors find that this effect is more pronounced for firms that opt for acquisitions as the entry mode in their first big step internationalization and possess a board of directors with strong political connections to their home country’s government. In contrast, the board of director’s international experience negatively moderates this effect.
Practical implications
This study provides insights into our scholarly and practical understanding of EMNEs’ big step internationalization and subsequent FDI expansion speed, which offers important implications for firms’ decision-makers and policymakers.
Originality/value
This study extends the internationalization theory, broadens the international business literature on the consequences of big step internationalization and deepens the theoretical and practical understanding of foreign expansion strategies in EMNEs.
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Nandini Nim, Kiran Pedada and Kelly Hewett
This article aims to provide greater clarity regarding the conceptualization and critical role of digital marketing ecosystems for the global expansion of multinational…
Abstract
Purpose
This article aims to provide greater clarity regarding the conceptualization and critical role of digital marketing ecosystems for the global expansion of multinational enterprises (MNEs) and offer novel research directions to prompt future research.
Design/methodology/approach
The authors first review the marketing literature related to marketing ecosystems, highlighting the evolution of this body of work across a range of domains such as services, innovation and new product development, communications and marketing strategy more broadly. Next, two case examples of MNEs whose global expansion efforts have been supported by their marketing ecosystems are used to highlight the role of marketing ecosystems in global market expansion. Finally, novel research directions are offered to prompt future research and provide greater insight into this emerging area.
Findings
The case examples we examine yield important insights into the role of marketing ecosystems for MNEs expanding from emerging markets (EMs) to developed markets (DMs). EM-MNEs such as TEMU face more communication and payment ecosystem challenges while opening their supply chain to DMs. Contrary to EM-MNEs, DM-MNEs face institutional and sociocultural challenges that require different marketing ecosystem orchestration approaches.
Originality/value
Marketing ecosystems can provide MNEs with greater multinational flexibility, enabling them to adapt their global strategies to navigate increasing complexities in global markets, such as trends toward increased protectionism and geopolitical disruptions. However, there is surprisingly little research addressing this issue.
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Stanislaus Lobo, Dasun Nirmala Malaarachchi, Premaratne Samaranayake, Arun Elias and Pei-Lee Teh
The purpose of this study is to investigate the influence of design for lean six sigma (DFLSS) on operational functions of the innovation management model by appraising an…
Abstract
Purpose
The purpose of this study is to investigate the influence of design for lean six sigma (DFLSS) on operational functions of the innovation management model by appraising an innovation management assessment framework.
Design/methodology/approach
An empirical approach for evaluating causal relationships among various constructs in the model phases that identify optimum pathways in achieving commercial success was adopted. A quantitative analysis of survey data were collected from large, medium and small organiations, including incubators in ANZ (Australia, New Zealand) and TMSV (Thailand, Malaysia, Sri Lanka and Vietnam).
Findings
The structural equation modelling recursive path analysis results of the model provide empirical evidence and pathways through the various constructs considered in the model. All these pathways lead to delivering optimum commercialization success (CS). Furthermore, DFLSS is confirmed as an enabler and has direct one-to-one and indirect influence on all the operational function constructs of the model including commercial success.
Research limitations/implications
This study had a relatively small sample size of completed responses obtained from the population and a constrained ability to compare commercialization success (CS) between the two regions in the dataset. Future studies could be conducted on a global scale to increase responses.
Practical implications
The research findings enabled the development of important and practical guidelines for managers and innovation practitioners engaged in planning and management of innovation.
Originality/value
This research offers a holistic approach for integrating DFLSS with stage gate phases of innovation management assessment framework, supported by empirical evidence, to aid organizations in effectively managing the innovation process and achieving greater success in commercialization.
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This paper aims to explore how the expansion in cryptocurrency users affects the country's research and development (R&D) investments.
Abstract
Purpose
This paper aims to explore how the expansion in cryptocurrency users affects the country's research and development (R&D) investments.
Design/methodology/approach
The analysis covers 53 countries over the period 2019–2022. The empirical methodology implements an instrumental variable approach to overcome endogeneity and omitted variable bias issues. In particular, this study introduces novel instruments developed from Google data, specifically related to trends observed in the cryptocurrency markets.
Findings
The results show that macroeconomic and institutional factors, as well as technology infrastructure affect the country's R&D expenditure, as previously noted in the literature. The country's R&D spending significantly responds to cryptocurrency expansions. Conspicuously, each 10% increase in cryptocurrency market users boosts the ratio of R&D to GDP by 1.35%. The countries that have imposed an adequate taxation policy on cryptocurrency gains experienced more improvement in their R&D budget, in contrast to those that forced aggressive tax brackets or did not apply adequate policies. Cryptocurrency dynamics affect both religiously regulated and nonreligious countries.
Originality/value
This study has three main contributions. First, it introduces the role of the cryptocurrency market as one of the leading global trends to affect the countries’ R&D budget. Second, this paper documents the importance of forcing an adequate tax policy on cryptocurrency capital gains. Third, the results of this paper serve as guidelines for governments to face the challenges raised by the cryptocurrency market.
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The purpose of this study is to investigate the impact of rapid internationalization by emerging-market multinational enterprises (EMNEs) on their innovation performance. It also…
Abstract
Purpose
The purpose of this study is to investigate the impact of rapid internationalization by emerging-market multinational enterprises (EMNEs) on their innovation performance. It also seeks to identify any potential moderating factors that could influence this relationship.
Design/methodology/approach
By analyzing data from listed Chinese MNEs from 2012 to 2022, this study applies a negative binomial regression model to test the research hypotheses.
Findings
This study uncovers an inverted U-shaped relationship between the internationalization speed of EMNEs and their innovation performance. It also suggests that strong absorptive, learning and managerial capacities could play positive moderating roles in the effect of internationalization speed on EMNEs’ innovation performance.
Originality/value
This study highlights rapid global expansion, promoting new knowledge acquisition for EMNEs. However, due to time-compression dilemmas with limited EMNE firm-specific advantages, overly accelerated internationalization hinders learning effectiveness. Additionally, this study reveals the critical importance of three firm-specific capacities in EMNEs – absorptive, learning and managerial capacities – in efficiently assimilating newly acquired knowledge from foreign markets and enhancing their innovation performance through rapid internationalization.
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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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Lala Hu, Diana A. Filipescu and Albena Pergelova
The aim of this study is to understand how digital platforms and context-specific characteristics of China – such as swift guanxi – affect opportunities for small and medium…
Abstract
Purpose
The aim of this study is to understand how digital platforms and context-specific characteristics of China – such as swift guanxi – affect opportunities for small and medium enterprises (SMEs) entering this market.
Design/methodology/approach
This study adopts a qualitative approach based on a multiple-case study of Italian SMEs in the wine industry that have activated international activities in China. Primary data consist of 32 interviews with SMEs’ managers, local consumers and other stakeholders involved in firm internationalization.
Findings
The findings of this study highlight that in SMEs’ internationalization, the process of knowledge/learning on digital platforms takes place in a bidirectional way thanks to the interactions among multiple stakeholders, which activate consumer education and knowledge sharing.
Originality/value
While previous research has emphasized firms' knowledge acquisition in the internationalization process, this study incorporates both the consumer perspective and the firm perspective, along with considering interactions with various stakeholders.
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Chanjuan Gong, Xinming He and Jorge Lengler
This paper systematically reviews and scrutinises the current development of studies concerning digital platform use in firms’ internationalisation. It also provides a research…
Abstract
Purpose
This paper systematically reviews and scrutinises the current development of studies concerning digital platform use in firms’ internationalisation. It also provides a research agenda for future work. Despite more than two decades of research, the study of how traditional firms enter foreign markets using digital platforms remains in its infancy. This paper contributes insights into the academic and managerial relevance of this field.
Design/methodology/approach
A systematic review of the literature based on content analysis was undertaken, drawing from peer-reviewed journal articles in international business, international marketing, information systems, and electronic commerce. The articles were published between 1999 and 2023, and the review employed a vote-counting method.
Findings
This analysis of 61 papers indicates that research on digital platform use in firms’ internationalisation is growing rapidly. However, the field itself is fragmented, and the research findings are inconsistent. This dynamic area reflects a growing trend, is dominated by several theories, relies primarily on survey data, and frequently uses China as a research context.
Originality/value
In acknowledging the vibrancy and managerial importance of this field, the authors offer a comprehensive overview of the existing studies to serve as a repository of knowledge on digital platform use in internationalisation for both academics and practitioners. Based on the aforementioned analysis, this study develops a reconciling framework to address current research gaps and identify future study directions.
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Anand Hindolia, Jyoti Arya, Raghuvar Pathak and Azhar Kazmi
The study aims to explore the theoretical framework of Halal B2B marketing in the metaverse, develop a conceptual framework for future research, identify challenges and…
Abstract
Purpose
The study aims to explore the theoretical framework of Halal B2B marketing in the metaverse, develop a conceptual framework for future research, identify challenges and opportunities, including technological, cultural and compliance aspects, and provide insights for the effective integration of the metaverse into Halal B2B marketing practices.
Design/methodology/approach
The research employs a comprehensive literature review, examining works on halal marketing, Islamic business ethics and technology adoption in Islamic markets. The study also identifies key stakeholders in Halal B2B marketing within the metaverse, such as Halal businesses, Muslim buyers, technology developers, regulatory bodies and others, and discusses their unique challenges and contributions.
Findings
The study presents a conceptual framework depicting the interaction among various stakeholders in Halal B2B marketing within the metaverse. It identifies opportunities such as enhanced customer engagement, global market expansion and innovative branding, and discusses challenges including technological disparities, cultural sensitivities and Halal compliance.
Research limitations/implications
The conceptual framework delineated in this paper succinctly outlines the potential challenges confronted by diverse stakeholders in building the digital Halal market ecosystem within the metaverse. These frameworks augment the understanding of the metaverse as an evolving digital technology for brands operating within this digital space. This contributes to both theoretical and practical insights into the integration of the metaverse into business operations. While the metaverse holds promise for immersive and interconnected digital experiences, it also comes with several limitations and challenges that need to be taken into account.
Practical implications
The research introduces a framework that elucidates the professional relationships among key entities: Halal B2B brands aiming to enter the metaverse for brand promotion, buyers seeking business opportunities within the metaverse, and technology developers responsible for establishing the required infrastructure. This framework offers a succinct portrayal of the stakeholders' positions, delves into potential opportunities within the metaverse, and scrutinises the inherent challenges associated with these possibilities.
Social implications
The metaverse empowers Halal enterprises to provide tailor-made experiences that resonate with the preferences of Muslim consumers. It offers scope for personalised marketing, emphasising its potential as a pivotal element in the triumph of Halal B2B marketing within the metaverse. In the realm of Halal marketing, cultural and ethical alignment holds paramount importance. The metaverse provides opportunities for devising marketing approaches that are attuned to Islamic cultural and ethical values.
Originality/value
The study results in several recommendations that could help Halal B2B brands effectively leverage the metaverse's potential and cater to Muslim consumers' needs innovatively. These are: (a) Invest in Metaverse Infrastructure by partnering with technology developers or invest in virtual spaces tailored to Halal products; (b) Tailor Marketing Experiences through creating immersive experiences aligned with Muslim consumers' preferences; (c) Ensure Cultural and Ethical Alignment by consulting religious scholars to ensure marketing respects Islamic values; (d) Foster Business Opportunities by facilitating virtual trade shows and marketplaces for Halal products; (e) Educate Stakeholders by organising workshops to introduce the metaverse's potential benefits; (f) Address Challenges Proactively by tackling privacy, accessibility and regulatory issues head-on; (g) Collaborate with Industry Partners and work with other Halal brands and tech partners to drive innovation.
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