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The chapter investigates the determinants of the extent of foreign services multinationals originating SMOPECs. An inverted U-shaped relationship between the level of…
The chapter investigates the determinants of the extent of foreign services multinationals originating SMOPECs. An inverted U-shaped relationship between the level of technological knowledge and extent of foreign services provision is found, stemming from the facilitating and inhibiting effects of technological knowledge on foreign services provision. Standardization of services and their automation positively moderates this relationship. Overall, the chapter highlights the increased importance of relatively small global service providers from SMOPECs as a new type of multinational that is likely increase in its dominancy in the near future.
The purpose of this paper is to determine the impact of organizational forgetting on knowledge‐intensive firms and the circumstances in which the loss of distinctive…
The purpose of this paper is to determine the impact of organizational forgetting on knowledge‐intensive firms and the circumstances in which the loss of distinctive knowledge takes place.
The empirical research in this paper consists of a qualitative proposal based on two case studies in higher education involving situations of organizational forgetting.
A framework for conceptualizing organizational forgetting. Moreover, the results of the case study analysis include a categorization of organizational forgetting and a set of propositions about their causes.
Scientific research on knowledge management has focused on the processes of knowledge creation, use and transfer, but has devoted little attention to the processes of knowledge degradation and destruction.
Purpose – We examine the fundamental assumptions and features of the Uppsala model of internationalization and argue that we need to look beyond this model for studying…
Purpose – We examine the fundamental assumptions and features of the Uppsala model of internationalization and argue that we need to look beyond this model for studying internationalization processes in the multinational corporations (MNCs) of today. The purpose of our paper is to identify gaps and neglected issues regarding MNCs' internationalization processes that demand further theoretical and empirical study.
Methodology – Our approach is conceptual: based on the most cited model on internationalization, the Uppsala model, we approach the complex internationalization processes that continuously go on in modern MNCs. We use related bodies of literature, on MNC structure and strategy, headquarters–subsidiary relationships, MNC subsidiary strategy and development, and opportunity seeking and entrepreneurship, to fill in the gaps and develop the emerging research themes.
Findings – We identify the following three issues that need further investigation: the opportunity recognition process preceding internationalization processes in MNCs, the internationalization of multiple products within the confines of the growing MNC, and the internationalization of foreign MNC units.
Research limitations – In this paper, we open up new research fields, but do not offer empirical studies to inform us about these relevant issues. Future research should study these issues empirically, preferably through case study methodologies and/or with longitudinal designs.
Originality – The contribution of our paper is its identification of three research issues in relation to internationalization processes of modern MNCs, which we argue are neglected by contemporary research.
The benefits of network relations for firms’ competitive advantage are increasingly acknowledged in the strategic management literature. Yet, the cost implications of…
The benefits of network relations for firms’ competitive advantage are increasingly acknowledged in the strategic management literature. Yet, the cost implications of engaging in network-specific relations, stemming from the irreversibility of sunk costs invested in creating network relations, are largely ignored. Such costs tend to be especially pronounced in high technology firms. It follows that the costs of creating network relations may mask the benefits of such relations, suggesting that networks can be a competitive risk for firms in cases where network relations unexpectedly terminate. This chapter adopts a cost-benefit approach to an empirical analysis showing that while in the long term, network relations enhance high technology firms’ performance, short-term efforts in creating network relations may hamper their performance. Furthermore, we show that greater technological intensity intensifies the negative performance implications of short term network participation and the positive performance implications of long term network participation.
The rising opportunities in emerging countries have attracted numerous multinational corporations to invest in the new regimes. Knowledge management between headquarters…
The rising opportunities in emerging countries have attracted numerous multinational corporations to invest in the new regimes. Knowledge management between headquarters and their foreign subsidiaries, thus, becomes particularly crucial in navigating host country environmental uncertainties. Despite its criticality, how foreign subsidiaries can benefit from effectively managing knowledge remains unclear. This study examines the extent to which market and technological turbulences influence two specific knowledge management platforms, knowledge transfer and knowledge codification, and subsequently, market responsiveness of foreign subsidiaries. Results from a survey of 140 foreign subsidiaries in China show that knowledge transfer and knowledge codification serve as two important platforms to mitigate the effects of environmental turbulence on local market responsiveness.
This chapter revisits central knowledge-based mechanisms that explain variance in value creation through mergers and acquisitions (M&As). It places the organizational…
This chapter revisits central knowledge-based mechanisms that explain variance in value creation through mergers and acquisitions (M&As). It places the organizational capabilities of absorptive capacity and combinative capability in the context of M&As. Absorptive capacity – i.e., the combining firms’ ability to explore new knowledge – relies on the extent of prior related experiences of acquirers and their acquired firms, and available complementary knowledge among the two. Combinative capability – i.e., the combining firms’ ability to combine and recombine available existing knowledge – depends on the opportunity, motivation, and ability to share knowledge. The chapter concludes with several contextual factors that intensify the roles of knowledge, and reveal important contradictory roles in the development and value of absorptive capacity and combinative capability.
The purpose of this paper is to explore the role of intellectual capital (IC) in supply chain intelligence integration (SCII) and the interrelationships of the three…
The purpose of this paper is to explore the role of intellectual capital (IC) in supply chain intelligence integration (SCII) and the interrelationships of the three components of IC (i.e. human capital (HC), structural capital (SC) and relational capital (RC)) in the supply chain context.
This paper conducted an empirical study by using primary data from 389 sample firms. The authors applied structural equation modeling to test the proposed hypotheses.
The results indicate that both HC and RC have direct impact on SCII, whereas SC only influences SCII through RC.
This study evidences that IC is an enabler of SCII. Furthermore, this study reveals the interrelationships of human, structural and RC.
This paper seeks to support and extend other scholars’ examinations of the evolution of technological modularity, vertical specialization and the concepts of the drivers…
This paper seeks to support and extend other scholars’ examinations of the evolution of technological modularity, vertical specialization and the concepts of the drivers of change in the basis of competition through an analysis of the evolution of the mobile phone industry.
A two‐year research project was undertaken and in‐depth interviews took place with managers at companies that were responsible for developing the value chain approaches of their firms. Companies were identified from the existing body of literature, observation and personal contact. Additionally, data were collected from developing case studies.
The paper finds that the mobile phone industry value chain is in the process of deconstructing towards more horizontally stratified structures for some device segments. But, unlike the PC industry, an industry which many analysts suggest provides a precedent for likely evolution of the mobile phone value chain, this trend will not be uniform or consistent across different product types. This will require mobile phone manufacturers to adapt their organizational structures and value chain approaches accordingly, and to rethink the basis for future competitive advantage.
As the research is based on interviews with a limited number of firms within the extended mobile handset industry value chain, it cannot be suggested that the impact of trends identified has equal impact for all firms.
Mobile handset vendors should learn from the PC industry and make sure that their future strategies are not made simply on the basis of cost optimization or speed to market.
The paper fulfils an identified need to understand how industry structures are evolving in one of the most dynamic sectors in the world.
Strategy deals with decisions about the scope of the firm and related choices about how to compete in various businesses. As such, research in strategy entails the…
Strategy deals with decisions about the scope of the firm and related choices about how to compete in various businesses. As such, research in strategy entails the analysis of discrete choices that may not be independent of each other. In this paper, we review the methodological implications of modeling such choices and propose conditional, nested, mixed logit, and hazard rate models as solutions to the issues that arise from non-independence among strategic choices. We describe applications with an emphasis on international strategy, an area where firms face a multiplicity of choices with respect to both location and mode of entry.
This paper specifies how to construct and validate an instrument based on multi‐item scales for the cataloguing and measurement of managerial and organizational…
This paper specifies how to construct and validate an instrument based on multi‐item scales for the cataloguing and measurement of managerial and organizational capabilities on the basis of management perceptions. The construction and reduction of the scales have been reinforced by the Delphi and retesting techniques. The use of this methodology was illustrated in a sample of Spanish industrial firms. The paper enhances the value of the instruments for a resource‐based view with regard to the faithful and rigorous measurement of its key concept, distinctive competences. The scales created provide consistent empirical evidence to remove doubts surrounding managerial self‐evaluation, including those arising from problems of self‐esteem and reinforcement effects. In addition, the paper provides empirical evidence to support the predictive ability of distinctive competences on current and long‐term performance variability.