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Article
Publication date: 4 October 2017

Tony Fang, Rosalie L. Tung, Linda Berg and Nazanin Nematshahi

The purpose of this paper is to propose a “parachuting internationalization” metaphor as an alternative strategy that firms may choose to enter foreign markets compared to Uppsala…

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Abstract

Purpose

The purpose of this paper is to propose a “parachuting internationalization” metaphor as an alternative strategy that firms may choose to enter foreign markets compared to Uppsala Model and Born Global Model. This proposed new metaphor seeks to integrate the Uppsala and the Born Global Models to show that firms can attain success in the age of globalization if they are adept at devising creative strategies that help them overcome the challenges in a psychically distant environment.

Design/methodology/approach

This is a research paper that develops theoretical perspectives inspired by the Yin Yang thinking as well as the “thick descriptive” multiple case studies.

Findings

Parachuting internationalization” embraces essential elements of the Born Global and the Uppsala Models and refers to a firm’s strategic targeting of markets with great potentials, correct positioning, swift actions, and fast learning, thus enabling the firm to circumvent the conventional wisdom of liability of foreignness, cultural distance, and psychic distance. “Parachuting internationalization” is essentially a GLOCAL approach which can be implemented in practice in terms of global vision, location, opportunity, capital, accelerated cultural learning and quick action, and logistics.

Research limitations/implications

The “parachuting internationalization” metaphor is derived from interviews with four Scandinavian firms’ experiences that have entered into the Chinese market. This research reveals that two seemingly opposite approaches, i.e., the Born Global and the Uppsala Models, can be fruitfully combined and reconciled to generate a third novel approach.

Originality/value

To date, there has been little attempt to reconcile and/or integrate the Born Global and the Uppsala Models of internationalization. The paper enriches the ongoing debate on the internationalization of firms in the international business literature that has relied primarily on the Uppsala Model or Born Global Model. The study shows that a third way, i.e. the “parachuting internationalization” is both theoretically innovative and practically feasible.

Details

Cross Cultural & Strategic Management, vol. 24 no. 4
Type: Research Article
ISSN: 2059-5794

Keywords

Abstract

Details

Globalization, Political Economy, Business and Society in Pandemic Times
Type: Book
ISBN: 978-1-80071-792-3

Article
Publication date: 5 April 2022

Edgar Nave and João J. Ferreira

International entrepreneurship (IE) has received a considerable amount of attention in the recent decades as a result of globalization enabling access to new international markets…

Abstract

Purpose

International entrepreneurship (IE) has received a considerable amount of attention in the recent decades as a result of globalization enabling access to new international markets and business opportunities. Despite the growing increase in academic publications, IE still faces certain inconsistencies, with doubts remaining as regards its boundaries and the thematic groups making up the field. The purpose of this article is to systematically analyse the IE, mapping the intellectual territory and the evolution of the field.

Design/methodology/approach

Indexed to Web of Science( WoS) database until 2021, from 52 journals, 130 articles were selected, applying content analyses techniques to identify the main research lines.

Findings

The results reveal that IE presents four conceptual themes/clusters: (1) international business networks and opportunities; (2) institutional environments; (3) the characteristics and motivations of entrepreneurs; and (4) internationalisation drivers and processes. Extant analysis show that IE has progressed immensely, concentrating a good diversity of subtopics and research trends. An integrative framework bringing together 27 years of publications and 67 future research lines, detailed by cluster, were also presented in this study to improve understanding and guide future studies.

Originality/value

This review makes a broad contribution to the IE literature, assisting in consolidating the academic field, expanding and complementing the results of previous theoretical–conceptual studies. We reflect and individually discuss the state of the art of the four streams that characterize IE to identify key themes, points of convergence and advance new subfields.

Details

Cross Cultural & Strategic Management, vol. 29 no. 3
Type: Research Article
ISSN: 2059-5794

Keywords

Article
Publication date: 21 June 2021

Shantala Samant, Pooja Thakur-Wernz and Donald E. Hatfield

The purpose of this paper is to study the differences in the internationalization process of firms from emerging economies and the impact of their international expansion related…

Abstract

Purpose

The purpose of this paper is to study the differences in the internationalization process of firms from emerging economies and the impact of their international expansion related choices on the nature of technological innovations developed by these firms. Specifically, the authors compare two principal perspectives on internationalization – the incremental internationalization process (slow, gradually increasing commitments using greenfield investments to similar host countries) and the springboard perspective (aggressive, rapidly increasing commitments using mergers and acquisitions to advanced host countries).

Design/methodology/approach

Building on key differences between the incremental internationalization and springboard perspectives, the authors argue that differences in the speed and mode of entry, as well as the interaction between the mode of entry and location of internationalization, will lead to differences in the types of technologies (mature versus novel) developed by emerging economy firms. The authors examine the hypotheses using panel data from 1997 to 2013 on emerging economy multinationals (EMNEs) from the Indian bio-pharmaceutical industry.

Findings

The findings suggest that firms internationalizing at higher speeds and using cross-border M&As tend to have innovations in mature technologies. The interesting findings can be explained by the challenges faced by emerging economy firms in experiential learning and the assimilation of external knowledge. In addition, the authors find that internationalization to technologically advanced countries weakens the relationship between cross-border M&As and innovation in mature technologies, suggesting that direct learning from technologically advanced environments may help alleviate the assimilation challenges of cross-border M&As.

Originality/value

The authors advance literature on EMNE internationalization by comparing the impact of their choice of internationalization approaches (incremental internationalization or springboard approach) on their innovation performance. The authors contribute to literature on EMNEs that has focused on the determinants of internationalization by identifying the learning implications of internationalization. The authors contribute to the nascent stream of literature on the level of innovation and catching up by EMNEs by performing a fine-grained analysis of the nature of technology innovation.

Article
Publication date: 6 June 2019

Carlos González

While previous studies have focused on the role of directors in the formation of transnational interlocks, this paper argues that firm strategy can also influence the development…

Abstract

Purpose

While previous studies have focused on the role of directors in the formation of transnational interlocks, this paper argues that firm strategy can also influence the development of these relationships. The purpose of this paper is to shed light on the practice of transnational interlocks by extending board interlocks theory from the national to the transnational context, and exploring aspects that are unique to the transnational level.

Design/methodology/approach

Based on the experiences of four British firms, this paper develops a conceptual framework that integrates under-examined dimensions of this networking practice at the organizational level of analysis, specifically degree of internationalization (DOI) and psychic distance (PD).

Findings

The paper argues that firms will increasingly engage in transnational interlocks as internationalization intensifies, and that expansion into psychically distant countries may result in further engagement in these connections. Further, firms will tend to form transnational received interlocks at their early stages of internationalization, and transnational sent and neutral interlocks at later stages of this process. It identifies four categories of firms: locals, extenders, explorers and cosmopolitans.

Practical implications

Directors can contribute to their firms’ success by interlocking with firms located in key foreign markets. Firms should also welcome directors with transnational board appointments to secure knowledge and resources overseas.

Originality/value

The manuscript contributes to our understanding of transnational interlocks by examining the independent and joint influence of the firm’s DOI and PD on the formation of such relationships.

Details

Cross Cultural & Strategic Management, vol. 26 no. 2
Type: Research Article
ISSN: 2059-5794

Keywords

Article
Publication date: 30 August 2019

Kaja Prystupa-Rządca, Anna Lupina-Wegener and Claudia Johannot

The purpose of this study is to contribute to managers’ understanding of the internationalization of born global (BG) firms from developed countries in emerging markets. Adapting…

Abstract

Purpose

The purpose of this study is to contribute to managers’ understanding of the internationalization of born global (BG) firms from developed countries in emerging markets. Adapting the new institutional sociology approach, the authors provide insights into how BGs might strive to bridge the institutional distance.

Design/methodology/approach

An explorative, multiple case study is used focusing on two Swiss BG firms in Brazil.

Findings

The study shows that these two firms faced similar institutional challenges. However, they approached them in different ways and achieved different outcomes. The comparison of these two cases highlights key factors that may influence successful internationalization, namely, niche strategies, high commitment modes of entry and the liability of outsidership.

Research limitations/implications

The main research implication is that the market mode of entry and high commitment entry modes are conductive to local market knowledge acquisition. Future research should investigate how western BGs might overcome the disadvantages of foreignness and effectively gain acceptance in emerging markets such as in Brazil, China or India. This could be done by looking at micro-processes, e.g. multiple identities in which BGs might strive to simultaneously fit in and stand out in the host market.

Practical implications

The findings, which uncover key factors that influence internationalization, shall contribute to managers’ understanding of how BG firms from developed economies enter emerging markets and overcome challenges.

Originality/value

Comparing these two cases highlights key factors that may shed light on the successful internationalization of BGs from developed countries in emerging markets. The authors first describe the institutional isomorphic pressures on the two Swiss BGs in Brazil. Second, the authors reveal how they engaged in isomorphic processes to bridge the institutional distance.

Details

Journal of Entrepreneurship in Emerging Economies, vol. 12 no. 1
Type: Research Article
ISSN: 2053-4604

Keywords

Article
Publication date: 1 March 2021

Feng Zhang

This study aims to analyze the subsequent investment success of EMNCs after their strategic asset-seeking foreign direct investments (FDIs), while internationalization

Abstract

Purpose

This study aims to analyze the subsequent investment success of EMNCs after their strategic asset-seeking foreign direct investments (FDIs), while internationalization trajectories of multinational corporations from emerging economies (EMNCs) have been extensively studied, Post-internationalization investment success of EMNCs is defined as extensive technological knowledge access and transfer for knowledge combination. This paper focuses on EMNC explicit knowledge access and transfer.

Design/methodology/approach

This study analyzes US patents granted between 2000 and 2014 to leading innovation-oriented EMNCs from China and India as well as to their key competitors from mature industrialized countries (MMNCs). Wilcoxon Rank Sum Test is used to compare the explicit technological knowledge access and transfer patterns of EMNCs and MMNCs. With MMNCs as the benchmark, the comparison allows to imply the patterns and extent of technological knowledge access and transfer of EMNCs.

Findings

While subsidiary reverse knowledge transfer is largely missing, EMNCs adopt a parent-centric approach in which the parent directly accesses and transfers explicit knowledge from the external environment of host locations. In doing so, EMNCs at least partially achieve the knowledge access and transfer goals of strategic asset-seeking FDIs.

Originality/value

This study contributes to an in-depth understanding of EMNCs by empirically testing key predictions in extant EMNC literature, namely, the strategic asset-seeking in host locations and the systematic integration of accessed knowledge and resources with home country activities. This study also pioneers the use of the US patent and citation data to empirically study EMNCs.

Article
Publication date: 16 November 2021

Yuan Virtanen, Asta Salmi and Xiao Qin

Sourcing intermediaries, commonly known as agents or trading companies, represent a useful organisational solution for assisting companies to manage supply risks and to overcome…

Abstract

Purpose

Sourcing intermediaries, commonly known as agents or trading companies, represent a useful organisational solution for assisting companies to manage supply risks and to overcome the liability of foreignness. However, the landscape of global business is experiencing rapid and fundamental changes, which leads us to ask whether intermediaries will continue to play a role in global sourcing. This paper aims to understand how sourcing intermediaries ensure a lasting position in the changing setting of global sourcing and information sharing.

Design/methodology/approach

This paper investigates the operations of both Chinese and Nordic (Finnish and Swedish) intermediaries in sourcing from China by analysing qualitative data collected over a period of four years.

Findings

Through the lens of information asymmetry, this paper identifies four distinct informational roles that are used by intermediaries to reduce information asymmetry between suppliers and buyers located in different countries. The paper also examines intermediaries’ signalling activities under these roles in a cross-border triad.

Originality/value

The paper contributes to the scientific debate on the usefulness of intermediaries by underlining intermediaries’ informational advantage, which provides a new explanation for the survival of intermediaries in a rapidly changing business context. Additionally, this study contributes to research on intermediation strategies by empirically examining both Chinese and Western intermediaries, highlighting the importance of institutional contexts in affecting intermediaries’ informational roles.

Details

Journal of Business & Industrial Marketing, vol. 37 no. 7
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 23 July 2020

Martin Hernani-Merino, Juan G. Lazo Lazo, Alvaro Talavera López, José Afonso Mazzon and Gisella López-Tafur

Companies that wish to market a global brand need to develop a greater understanding of consumers' and potential consumers' susceptibility to global consumer culture (SGCC) with a…

Abstract

Purpose

Companies that wish to market a global brand need to develop a greater understanding of consumers' and potential consumers' susceptibility to global consumer culture (SGCC) with a view to standardizing/adapting their brand according to the desires and preferences of the consumers who belong to specific segments of global consumers. Thus, the aim of the study is to fill a joint segmentation research gap within and between countries based on seven dimensions of SGCC while classifying consumers according to the degree of belonging to specific and hybrid (global citizenship) segments.

Design/methodology/approach

A questionnaire was applied online in English in five countries across the Americas and Europe resulting in a sample of 412 consumers. Based on the fuzzy C-means cluster analysis, the study segments the sample of consumers according to the degree of belonging to specific and global citizenship segments.

Findings

Analysis of survey results show three groups; two distinct groups and a third with features of both, a distinct intersection group. These findings suggest that consumers in different countries develop beliefs and attitudes about global citizenship, and this perspective coincides with the characteristics of the intersection group. Consequently, the study shows that fragmentation of the needs of consumers exists within and between countries.

Originality/value

This study contributes to the concept of global citizenship, helping managers of global brands improve their marketing strategy decisions by implementing strategies that are standardized or adapted to specific hybrid segments of consumers that transcend national borders. This study used a statistical method to measure the degree of belonging to each segment.

Details

Cross Cultural & Strategic Management, vol. 28 no. 1
Type: Research Article
ISSN: 2059-5794

Keywords

Article
Publication date: 11 February 2021

Andrew Creed, Ambika Zutshi and Russell Johnson

The purpose of this paper is to develop a nuanced interpretative frame that can help global managers with recommendations to avoid misapplied power with group and organizational…

Abstract

Purpose

The purpose of this paper is to develop a nuanced interpretative frame that can help global managers with recommendations to avoid misapplied power with group and organizational situations.

Design/methodology/approach

Embodied metaphor is applied in analysis of the theory-praxis nexus to reconceive the bases, processes and resources associated with group and organizational power. Identified are patterns of relations in organizational bases and circuits of power, as expressed through literal and symbolic aspects of human hands and fingers. The paper does not revolve around gesticulations; instead focusing upon a novel, meta-cultural development of touchlines of the human hand, revealing conceptual relationships with the implementation of influence.

Findings

A differentiated understanding of the touchline powers of technology, information, self-awareness, relation to others and access to money can respectively improve decisions and actions. Insights are provided in the areas of controlling people to achieve objectives, demeaning others, managing change and resistance for personal gain, negotiating contracts, advancing personal interests and coordinating reward or punishment.

Research limitations/implications

Choosing one metaphor may contribute to the exclusion of other perspectives, however, the embodied nature of the hand and touchlines tends to cross cultures and may assist further research to address the embedded nature of abuses of organizational power.

Originality/value

The contribution is in the theory-praxis nexus to assist global managers in addressing the risk of potential misuse of power and influence in organizations and to respond to calls for ancient indigenous epistemological systems to assume a role in contemporary management studies.

Details

Cross Cultural & Strategic Management, vol. 28 no. 3
Type: Research Article
ISSN: 2059-5794

Keywords

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