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This study aims to investigate the importance of relational and conditional knowledge by assessing how service and signaling competences affect manufacturing firms’ productivity. These relationships are explored in the context of Africa, where, paradoxically, firms selling abroad must satisfy different market demands than firms that serve only domestic markets.

The authors draw on the World Bank Enterprise Survey to perform a cross-sectional analysis of 4,683 manufacturing firms. These surveys cover the period 2009-2017 and 35 different African countries. The authors define service competence development as co-location with knowledge-intensive business service (KIBS) firms, measured through KIBS density at city level. Signaling is measured through outward-looking competences.

This paper shows that African exporters differ significantly from their non-exporting counterparts in terms of productivity and competences. External service competence generates productivity gains for exporters but has the opposite effect for non-exporters. Results consistent with previous research also show that signaling competences generate productivity gains, but the effect for firms serving domestic markets is stronger than the effect for exporting firms. The authors use paradoxes of learning to interpret these results.

This study detects nuances of the African context that increase the understanding of knowledge management in emerging markets. The findings would benefit from confirmation in a longitudinal and causal setting.

African exporting firms should establish mechanisms to develop joint knowledge with external partners (know-with) to enhance their competitiveness, whereas African non-exporters should prioritize building knowledge credibility.

The study develops a novel empirical approach to analyzing firm competences in Africa. It also shows that contextualization of existing knowledge management theories matters, opening a research avenue to test further existing theories in emerging economies.

The authors discuss a dominant logic as the main idea behind a global marketing logic (GML) of an MNE and investigate how local stakeholders’ influence the feasibility of applying the GML in emerging markets. The aim of the paper is to enhance the understanding of the factors that influence the local stakeholders' acceptance of the MNEs' GML and the different activities of MNEs that may increase the acceptance.

The authors apply a qualitative case study method investigating three Swedish MNEs and their activities while implementing a GML in the big emerging markets. The authors study their relationships with business, political and social stakeholders.

The authors identify three persistent contents of the GML: (1) a consistent value chain role across markets, (2) standardized, premium products/services and promotion strategies, (3) a corporate brand-based identity. The development of trust, commitment, legitimacy and power within local stakeholders’ relationships influences the approval. The acceptance of the MNE's GML by local stakeholders strengthens its market position.

The authors extend the knowledge by investigating the nature of a GML and explain to what extent it may help MNEs to gain a competitive position. The authors also discuss how global and local activities may influence local stakeholders' acceptance. This study contributes towards a better understanding of how and to what extent a GML can be successful.

The purpose of this paper is to conceptualize strategic agility in entrepreneurial internationalization and highlight the role of marketing “under particular conditions” – those of early and fast internationalizers.

The study is based on in-depth case studies of four entrepreneurial internationalizers using an inductive approach. The role of marketing is studied along a set of four key business processes, i.e. sensing through selective customer/partner intimacy; business development through selective experimentation and testing; coordination and harmonization of multiple stakeholders; and creative extension of resources.

Strategic agility is a composite of flexibility and selective responsiveness. Marketing thought, mainly through customer and partner interaction, plays a prominent role in achieving strategic agility. Customer- and market-centric thinking needs to be built in a key set of business processes. Marketing’s contribution to strategic agility means an ability to cope with time, relationship and functional dependencies. Strategic agility helps improve the risk profile of the entrepreneurial internationalizer. Entrepreneurial internationalizers are particularly suited to compete on and benefit from strategic agility.

The findings show managers and entrepreneurs in early and fast internationalizing ventures a path to strategic agility which helps to overcome the many parallel challenges that come with firm foundation and internationalization.

Strategic agility is a novel explanation for entrepreneurial internationalization. The study explains the prominent role played by marketing in achieving strategic agility and growth. Strategic agility is reconceptualized in the context of the young and small internationalizing firm.

The paper aims to explore the influential path of internet marketing capabilities impacting international market performance. The paper further investigates the mitigating roles of market- and entrepreneurial-oriented behaviors and knowledge internalization in this relationship. The effect of internet use for customer management on internet marketing capabilities is also examined.

A total of 618 firms with sales in international markets were approached to participate. Data were collected from a sample of 132 Taiwanese firms and analyzed using a structural equation model.

Use of internet for customer management positively influences internet marketing capabilities. The results also support the positive impacts of internet marketing capabilities on market- and entrepreneurial-oriented behaviors. Knowledge internalization mediates the relationships between market- and entrepreneurial-oriented behaviors and international market performance.

This paper’s investigation of the role of internet marketing capability in international market performance contributes to online internationalization, strategic orientations and organizational learning theory.

Managers should focus on developing internet marketing capabilities in management culture and fostering market- and entrepreneurial-oriented behaviors to facilitate knowledge internalization for better international performance.

This paper contributes to the construction of an alternative and comprehensive mechanism to understand the influences of internet marketing capabilities on the firm’s international performance.

In this chapter, we discuss the main themes of the book and give examples of how the rest of the chapters are related to these themes. We have identified two main aspects that are partly overlapping and are equally relevant for international firms’ work with ethical questions related to their business. One concerns how ethical behaviour related to sustainability can be applied as a main part of firms’ corporate strategy and how this may strengthen the international competitive position. This is particularly relevant when considering that it cannot be taken for granted that there is always a positive relationship and that actors may sometimes question an emphasis on ethical behaviour that goes beyond the accepted norms and regulations. The other main theme is related to international firms’ crucial role in supporting sustainability on an international level and contributing towards achieving sustainable development goals (SDGs). Solving many of the challenges related to climate change, migration, poverty and inequality is likely to require the involvement of international firms. The book identifies several routes forward to achieve this.

We discuss how multinational enterprises (MNEs) can play a leading role and take more responsibility towards reducing inequalities by developing a global sustainability regime. We especially focus on how this may contribute towards the United Nations’ Sustainable Development Goals (UN SDGs). Our purpose is to identify and discuss the components and activities that are needed to develop such a strategy and implement it in markets with different structural and institutional conditions. We will especially discuss interactions between the head office and the local subsidiaries/organizations as well as interactions with different salient groups of stakeholders. We focus on three highly significant groups: business, social and political actors. We identify four key components of a global sustainability approach – namely, (i) make it relevant within the organization, (ii) establish a legitimate sustainable network position, (iii) present incentives and gains that stimulate action and (iv) establish long-term salient structures. These components and the associated activities have not been discussed in a coherent manner although some aspects have been put forward in earlier studies. We present a comprehensive framework that suggests what role MNEs can play and what challenges they face while doing so. The chapter is based on more than 10 years’ experience of studying MNEs’ activities in developing as well as developed markets, including how they work with sustainability. The study is based on data from four Swedish MNEs and three major research projects.

The relationship between multinational enterprises (MNEs) and host governments has seen different waves of trust and mistrust. Over the years, it has changed from a period of conflict after World War II, where MNEs were investing for purposes felt to be contradictory to government policies, to a more cooperative one, where countries are providing incentives and competing with each other to attract foreign direct investment (FDI). The 1990s saw the cooperative relationship leading to the danger of race to the bottom through excessive locational competition. In this chapter, we look at the past, present, and future state of this relationship as reported by different scholars from these periods. We look at the most influential literature from the 1970s onward and the current state of this relationship. Our analysis reveals that the increased tensions are caused by anxiety owing to unanticipated developments in the political economy, company strategies, and government policies. Thanks to globalization MNEs are increasingly becoming more powerful and often this process is accelerated owing to lack of any collaboration between MNEs and the governments. Thus, governments, particularly in emerging markets, are becoming more and more frustrated by the fact that on the one hand they want the MNEs to come and invest in their countries and, on the other hand, they feel that they cannot direct these MNEs to contribute toward economic development and poverty alleviation in their countries. In this chapter, we intend to evaluate the past and the present literature and look ahead to the future. Finally, on the basis of our own studies performed in this project and reported in different chapters of this book, we provide some policy guidelines for host country governments as to how they can encourage MNEs to contribute toward sustainable development and poverty reduction.

This study investigates how firms can influence political actors on emerging markets through their network partners in order to support a market-driving strategy. On emerging markets, political actors typically play a more central role than is the case on mature western markets. However, most firms do not have the understanding of or influence upon political actors in emerging markets that is required to interact with them directly. Consequently, gaining the support of different network partners will be essential. We discuss how network collaborators may manage political factors in order to influence four different dimensions of the market-driving strategy. We have conducted in-depth case studies of two Swedish firms and their activities in India. Based upon this we develop a conceptual model and discuss how a firm can collaborate with partners in order to influence political actors proactively as well as to reactively reduce harmful effects of political decisions.