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The study of international business has become increasingly important in recent years. So important that the American Assembly of the Collegiate Schools of Business (AACSB) has called for the internationalisation of business curricula. In 1992 and beyond, successful business people will treat the entire world as their domain. No one country can operate in an economic vacuum. Any economic measures taken by one country can affect the global economy. This book is designed to challenge the reader to develop a global perspective of international business. Globalisation is by no means a new concept, but there are many new factors that have contributed to its recently accelerated growth. Among them, the new technologies in communication and transport that have resulted in major expansions of international trade and investment. In the future, the world market will become predominant. There are bound to be big changes in the world economy. For instance the changes in Eastern Europe and the European Community during the 1990s. With a strong knowledge base in international business, future managers will be better prepared for the new world market. This book introduces its readers to the exciting and rewarding field of international management and international corporations. It is written in contemporary, easy‐to‐understand language, avoiding abstract terminology; and is organised into five sections, each of which includes a number of chapters that cover a subject involving activities that cross national boundaries.

Aim of the present monograph is the economic analysis of the role of MNEs regarding globalisation and digital economy and in parallel there is a reference and examination of some legal aspects concerning MNEs, cyberspace and e‐commerce as the means of expression of the digital economy. The whole effort of the author is focused on the examination of various aspects of MNEs and their impact upon globalisation and vice versa and how and if we are moving towards a global digital economy.

The purpose of this paper is to advance knowledge in the area of international joint ventures, more specifically in China.

The analysis considers events prior to 26 April 2006, when the joint venture was announced. Organizations involved are considered as units of analysis for the current study. Using Yin's methodology for exploratory theory development, this study builds on existing theories through a case study that explores the execution of international joint ventures. This study analyzes holistic data in relation to Hypor Canada, Sichuan South Hope Company Ltd, and Shangdong Liu He Group Ltd.

The findings suggest that strategic intents and resources need to be aligned between parties involved, and that foreign‐based North American firms should cultivate both the structural and social dimensions of a relationship with a Chinese‐based company.

The sample was limited to one case in swine genetics. The findings of this research may only be fully applicable for explaining joint venture operations in this particular area.

The Hypor and New Hope agreement shows that a project needs to address both structural and social dimensions at once. Managers and marketers need to be aware of this and to consider both dimensions when assessing situations that may lead to a new joint venture.

For various reasons, many joint ventures between North American and Chinese companies fail. On 26 April 2006, however, Hypor Canada, a leader in swine genetics headquartered in Regina, Saskatchewan, signed what would prove to be a successful joint venture with China‐based New Hope (Sichuan South Hope Company Ltd). The agreements with Sichuan South Hope Company Ltd (New Hope) and Shandong Liu He Group Company Ltd (Liu He) were at the production and distribution of breeding pigs in China.

The paper aims to study the impact of cultural differences on the ownership structure of international joint ventures in China. It is reasoned that foreign investors, when faced with larger culture‐related investment uncertainties, may have the incentive to acquire more control rights to contain the risks by acquiring more equity shares in the joint ventures.

Data on international joint ventures in China were used to test the theory. The data contain 941 observations from Beijing, Shanghai, Shenzhen and Tianjing, covering a 13‐year time span. Pooled ordinary least square is used in the model estimation.

Cultural distance between China and foreign countries was found to increase the foreign equity share in the joint ventures, a finding contrary to traditional view. In addition, it was found that cultural distance in different dimensions does not play an equal role in affecting foreign equity shares. Last, there is significant evidence that the allocation of ownership between foreign and domestic investors in the joint ventures is influenced by the investor's relative importance in supplying different types of resources.

The paper introduces a new perspective into the study of culture and international joint venture. Foreign investors may be able to reduce investment risk by increasing equity shares, which gives them more internal control, in international joint ventures. In contrast, the traditional view is that larger cultural distance tends to discourage foreign equity ownership.

International alliances are becoming an increasingly important and recognized means of conducting business. Once viewed primarily as a strategy to enter foreign markets, alliances have become a very effective way for established businesses to accelerate technological development, enhance productivity and lower investment risks. In many ways joint ventures offer the most attractive form of trade alliance and a significant portion of the international joint ventures are in the service sector. Although, services are generally viewed by academicians and practitioners differently than products, this apparent difference has been neglected in the study of joint ventures formation and operations. Since the basic conditions and scope for services and products differ, one can expect that joint venture partners' interest and management strategies for service joint venture will also differ. Thus, the purpose of this study is to discuss and identify major research issues in studying service joint ventures. Some research propositions in regard to the service joint ventures are developed. Furthermore, future research avenues in international service joint venture operations are delineated.

This paper aims to examine the interaction between risk, learning and ownership decisions in international R&D joint ventures.

The study focuses on international strategic R&D joint ventures of US firms. The sample is made up of 266 firms. Regression models are used in the testing of the hypotheses.

The authors show a clear difference between the effects of performance versus relational risks on ownership decisions in international joint ventures (IJVs). In response to performance risk, firms are less likely to pursue a majority ownership, whereas with relational risk the effect is opposite.

A key contribution of this paper is that it shows the effects of performance versus relational risks on ownership decisions in IJVs. Another contribution is the finding that IJV experience moderates the effects of relational risk factors on firms' ownership decisions in joint ventures. With greater joint venture experience, firms are more likely to take a non‐dominant position in response to diverse partners as they develop routines and capabilities that allow them to better manage IJV partners and minimize the risk of partner opportunism without the need for majority ownership.

The paper aims to investigate the problems encountered in retail international joint ventures (IJVs). It synthesizes and applies transaction cost economics and strategic management theories to help explain the dynamics within the international retail joint venture (IRJV) process.

Applies a multiple case study approach based on a sample of UK‐based retailers during the retail internationalisation process.

Highlights the key problem areas encountered by retailers involved in IJV activity. Concludes that in contrast to production‐driven joint venture activity, retailers appear to have a shorter and intensive adjustment period to effectively co‐ordinate operational activity and bridge the corporate and behavioural differences between themselves and the partner.

Focuses on a sample of UK retail companies only. Given the intensive instantiation process, a predetermined approach may be more appropriate for retail firms to avoid problematic outcomes in IJV management.

Retail companies may experience post formation risk in joint ventures, arising from partner resource limitations. Differences in management capability between the partners may lead to ineffective collaboration and poor operational performance.

Addresses a previously neglected area of research and provides insights into the management of IRJV. Examines the relevance of key theoretical perspectives in relation to the problems encountered in IRJV activity.

Despite the numerous benefits of adopting international construction joint ventures (ICJVs), effective operation of the joint ventures in Saudi Arabia is impeded by various limitations. Thus, this paper is aimed at determining, analyzing, and prioritizing these major limitations and to propose a strategy that can provide guidance on how best to promote the achievement of efficient joint ventures in international construction in Saudi Arabian construction industry.

Content analysis was augmented by the expert-based assessment process to identify the critical limitations while the interpretive structural modeling (ISM) technique was utilized to analyze and determine the hierarchical structure of the limitations. This is important in order to comprehend and describe the complex relationship between the limitations.

The results identified “selecting unsuitable partner”, “divergent organizational cultures, policies and procedures”, and “poor knowledge of local regulations by foreign partners” as the most critical limitations affecting the efficiency of joint ventures in international construction in Saudi Arabia.

The inclusion of many variables (limitations) increases the complexity of the ISM technique, which compels the researchers to consider reduced number of variables in establishing the ISM structural hierarchy. Other variables that were perceived to be less critical were not included in the development of the ISM structural hierarchy. On the other hand, the structural hierarchy was not validated statistically, and this requires the use of other linear structural relationship techniques like the Structural Equation Modeling to test the validity of the hypothetical ISM structural hierarchy. The proposed strategy to mitigate the limitations presented in this study was not validated, and this requires further study to verify the accuracy of the strategy.

The implications inferred in this study are better performing ICJVs in the execution of mega infrastructure projects in Saudi Arabia. The findings and managerial implications of the study are expected to further provide an invaluable guide that can support policymakers and all key stakeholders to establish efficient strategies and suitable measures that can enhance the successful implementation of ICJVs.

The findings of this study provide comprehensive understanding of the limitations affecting the efficiency of ICJVs in Saudi Arabia. This can assist in mitigating the potential impacts of these limitations and to advocate for the achievement of efficient joint ventures in international construction in Saudi Arabia. Meanwhile, there is a need to further develop a framework that can elucidate on the proposed strategy to promote better performing ICJVs in Saudi Arabia. Also, the further study will seek to investigate the influence of project duration, value, location, or ownership on the performance of the joint ventures in order to generalize the findings to all forms of ICJVs.

Business relatedness is important in international diversification because it enables a firm’s transfer of resources to business units operating in foreign markets. The purpose of this paper is to develop a conceptual model based on a review of the major contributions of studies regarding the relatedness of subsidiaries, joint ventures or any other foreign unit.

The paper examines theory bases, the relatedness construct, data issues and the key achievements of previous studies. Drawing on organizational learning, transaction costs economics and industrial organization, a conceptual model and propositions are developed that intend to close important research gaps.

The model includes competitive strategy as a mediator of the effects of relatedness on foreign unit performance, type of foreign unit – that is, a wholly owned unit or joint venture – as a moderator; and competition barriers as a moderator.

In future research, the propositions need to be transformed into testable hypotheses. It is recommended to treat relatedness as a multidimensional concept.

A firm is primarily advised to evaluate how its relatedness with foreign units enables knowledge transfer. A foreign cost leadership strategy benefits from product relatedness, while a differentiation strategy calls for resource relatedness.

The proposed model is unique as it includes an actionable component that mediates the effects of relatedness on international performance, i.e. competitive strategy, and concerns both wholly owned foreign units and international joint ventures.

The purpose of this paper is to determine the initial stock price reaction and long‐run returns for joint venture announcements between US MNCs and foreign governments as well as the firm characteristics and political risk factors of the foreign governments that affect the abnormal returns. In addition we determine changes in total and systematic risk following the joint venture.

Announcement abnormal returns are calculated using event study cumulative abnormal returns. Long‐run returns use a buy and hold methodology. Cross section regressions are performed on both the announcement and long run returns.

Announcement abnormal returns are a positive 0.37 percent; however, the long‐run returns are a significant −3.99 percent the end of the first year. Both short‐run and long‐run returns are higher when the level of internal conflict is low, and surprisingly when the level of corruption is high. Also, surprisingly, short‐run returns are higher when ethnic violence is higher, but, as expected, long‐run returns are higher when there is higher democratic stability.

One implication is that when US managers are confronted by foreign government corruption, there may be a conflict between the success of the project and the ethical/legal requirements of the company.

The paper focuses on joint ventures with foreign governments rather than the usual foreign companies. Also, unlike previous papers that have used only one measure of political risk, this paper uses five of the PRS categories of political risk.