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1 – 10 of 22Alain Verbeke and Wenlong Yuan
This paper proposes a new typology of Ownership (O) advantages as a function of their differential managerial implications in established multinational enterprises (MNEs). We…
Abstract
This paper proposes a new typology of Ownership (O) advantages as a function of their differential managerial implications in established multinational enterprises (MNEs). We argue that the mainstream typology of O advantages proposed in Dunning’s eclectic paradigm does not recognize the uniqueness of individual firms. We therefore propose a new typology of O advantages, which distinguishes among four types, based on the geographic source of such advantages and their transferability across borders. Moreover, we acknowledge the importance of resource recombination advantages. Two case examples illustrate the implications of the new typology for established MNEs.
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Alan M. Rugman and Alain Verbeke
The capital budgeting decision for a multinational enterprise needs to take into account concepts of business policy and competitive strategy. From the modern theory of the…
Abstract
The capital budgeting decision for a multinational enterprise needs to take into account concepts of business policy and competitive strategy. From the modern theory of the multinational enterprise, i.e., the theory of internalisation, it is recognised that proprietary firm specific advantages yield economic rents when exploited on a world‐wide basis. Yet the multinational enterprise finds these potential rents dissipated by internal governance costs of its organisational structure and the difficulty of timing and sustaining its foreign direct investment activities. This paper examines these issues by a focus upon parent‐subsidiary relationships and the strategic nature of the capital budgeting decision for a multinational enterprise.
Alain Verbeke and Wenlong Yuan
The aim of this paper is to investigate how multinational enterprise (MNE) subsidiary capabilities are influenced by the firm-specific advantages (FSAs) of the parent company, as…
Abstract
Purpose
The aim of this paper is to investigate how multinational enterprise (MNE) subsidiary capabilities are influenced by the firm-specific advantages (FSAs) of the parent company, as well as by cultural and geographic distance between the home and host country.
Design/methodology/approach
This paper assesses how the effects of the parent FSAs, cultural distance and geographic distance on subsidiary capabilities vary for different value-chain activities, with an empirical application to 60 foreign subsidiaries operating in Canada.
Findings
This paper uncovers distinct, three-way interaction effects among parent-level FSAs, cultural distance and geographic distance for upstream versus downstream activities in the value chain.
Originality/value
We find that in special cases, high levels of distance can be positive for MNEs, in terms of driving the creation of stronger subsidiary capabilities.
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John C. Gardner and Carl B. McGowan
The objective of this paper is to analyze the five largest companies in the soft drink industry in the context of the regional triad theory as presented in Rugman and Brain (2003…
Abstract
The objective of this paper is to analyze the five largest companies in the soft drink industry in the context of the regional triad theory as presented in Rugman and Brain (2003) and later in Rugman and Verbeke (2004b, 2007). We find that of the five largest companies in the soft drink industry, only Coca‐Cola meets the definition of a global company as defined by regional triad theory. National Beverage is a strictly domestic company and Cadbury, Cott, and Pepsi are bi‐regional MNEs with sales in the NAFTA and European triad regions. Coca‐Cola reports sales in five major geographic regions, which fits the criteria of a global firm
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The eclectic paradigm of Dunning (1980) (with its OLI and four motives for FDI framework) can be reconciled with the firm and country matrix of Rugman (1981). However, the fit is…
Abstract
The eclectic paradigm of Dunning (1980) (with its OLI and four motives for FDI framework) can be reconciled with the firm and country matrix of Rugman (1981). However, the fit is not perfect. The main reason for misalignment is that Dunning is focused upon outward FDI into host economies, whereas Rugman’s matrix is for firm‐level strategy covering MNE activity in both home and host countries
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Alain Verbeke, M. Amin Zargarzadeh and Oleksiy Osiyevskyy
The aim of the article is to establish robust linkages between internalization theory and the empirical phenomenon of international new ventures (INVs). Here, the focus is on…
Abstract
Purpose
The aim of the article is to establish robust linkages between internalization theory and the empirical phenomenon of international new ventures (INVs). Here, the focus is on firm-specific advantages (FSAs) critical to early new venture internationalization.
Design/methodology/approach
On the conceptual level, we explain how the INV literature can easily be accommodated using an internalization theory lens, and we formulate hypotheses to that effect. On the empirical level, we use the Kauffman Firm Survey (KFS) dataset, which includes a panel of 4,928 US-based new businesses founded in 2004, tracked over their early years of operations. We use logistic regressions building upon pooled cross-sections, and including lagged dependent variables.
Findings
INV-type foreign expansion is a special case of international growth, easily and credibly predicted by internalization. No new theory beyond internalization theory is needed to explain this phenomenon.
Originality/value
The early stages of the Uppsala model, in terms of requisite resources accumulation and recombination, may have been undertaken at the individual level, by founding entrepreneurs, in the pre-stage of the new venture, and are “invisible” when focusing on organizational experience built up in the new venture. Here, particular founding entrepreneurs’ characteristics function as FSAs.
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– The purpose of this paper is to illustrate the nature and scope of diversity between and within Asian countries.
Abstract
Purpose
The purpose of this paper is to illustrate the nature and scope of diversity between and within Asian countries.
Design/methodology/approach
This paper represents a personal retrospective on the promise and perils of conducting research on Asia.
Findings
“Promise” includes the growing research interest and attention on this region. “Perils” include, among others, a failure to recognize the diversity across countries in the region and within a given country. Immigration, rising incidence of bicultural or multicultural identity and brain circulation have all contributed to growing diversity within countries. Future research on this region should take into consideration such intra-national diversity.
Originality/value
Although Asia’s “foreignness” may differentiate it from other regions around the world and, in doing so, contribute to the perception of its homogeneity, the region is considerably more diverse than what it appears to be. Thus, it is imperative to consciously recognize – and incorporate – diversity in a region of growing global importance.
In recent times, there has been some disquiet within certain sectors of the Singapore business community over the role of auditors in detecting corporate fraud. The cause of this…
Abstract
In recent times, there has been some disquiet within certain sectors of the Singapore business community over the role of auditors in detecting corporate fraud. The cause of this concern can perhaps be attributed partly to the Barings collapse in February 1995 and the subsequent suggestions that the auditors of the Barings subsidiary in Singapore, Barings Futures Singapore Pte Ltd (BFS), may have been negligent in their audit work. More recently, in mid‐1996, a substantial locally listed company, Amcol Holdings Ltd (Amcol), was placed under judicial management amid rumours alleging possible misdeeds by senior executives and directors. The Amcol saga has, once again, focused some attention on the role of auditors and their duty to detect fraud in company accounts.
Alain d'Astous and Suzanne Mathieu
Research on fairly‐traded products has shown that changing consumers' attitudes may not be the best strategy to bring consumers to purchase these products. The objective of this…
Abstract
Purpose
Research on fairly‐traded products has shown that changing consumers' attitudes may not be the best strategy to bring consumers to purchase these products. The objective of this study is to examine a different, non‐cognitive approach based on the utilization of behavioral influence strategies.
Design/methodology/approach
A field experiment was conducted involving 168 consumers. The experiment took place in the context of a commercial stand in which fairly‐traded products such as coffee, sugar, chocolate, and so on, were sold. Three factors were manipulated: the concreteness of the information provided to visitors; the provision of information about the popularity of fairly‐traded products among relevant others; and the possibility of receiving concrete feedback from a producer.
Findings
The paper finds that, contrary to what was expected, abstract information led to a greater amount of money spent on average by visitors. In addition, knowing that fairly‐traded products were popular among relevant others had a significant impact on money spent only when feedback was not offered to the participants.
Research limitations/implications
A field experiment does not offer a high degree of control over nuisance variables. The application of the manipulations and the randomization of participants in this study were therefore not optimal.
Practical implications
Managers involved in the marketing of fairly‐traded products who communicate with potential buyers using concrete messages should make sure that consumers are attentive to their messages. These messages should inform consumers that fairly‐traded products are purchased by relevant others.
Originality/value
The paper provides useful information on how to influence consumers' attitudes to purchasing fairly‐traded products.
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