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Book part
Publication date: 15 June 2015

Valerie A. Bell and Sarah Y. Cooper

Business networks are of critical importance to firms and essential to the internationalisation of born-global and international new venture firms. Networking literature…

Abstract

Business networks are of critical importance to firms and essential to the internationalisation of born-global and international new venture firms. Networking literature focuses on what are, generally, co-operative relationships and their effects between actors, activities and resources and illustrate the importance of quality and change in the networking process. Utilising Fletcher and Harris’ (2012) framework for understanding knowledge acquisition processes in internationalisation, this study investigates the importance of direct and indirect roles played by third parties in the networking for internationalisation processes of three different firm types within the knowledge-based natural health products (NHPs) (pharmaceutical) sector in Canada. The research presented here examines nine case studies of Canadian NHP firms and reveals that they utilised all network-related internationalisation processes simultaneously to internationalise including Johanson and Mattsson’s (1988, 1994) network theory, Johanson and Vahlne’s (2003) updated the Uppsala Model and the resource-based perspective on network theory (Ruzzier et al., 2006). They networked with and extensively utilised third parties, including government bodies, trade associations, government advisors, consultants and other domestic networks with international ties, in Canada and internationally to gain technical, market and internationalisation knowledge, and direct and indirect experiential knowledge which contributed to the internationalisation process confirming the study by Fletcher and Harris (2012). In a departure from the literature, this study found that weak ties (Granovetter, 1973) developed with third parties who were new to the networks allowed the NHP firms to develop competitive advantages necessary for them to overcome the liability of outsidership in entering new international markets. The type of technical, market and internationalisation knowledge gained, its content and the direct and indirect sources of knowledge from third parties were all shown to contribute to the internationalisation process.

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New Technology-Based Firms in the New Millennium
Type: Book
ISBN: 978-1-78560-032-6

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Article
Publication date: 11 January 2019

Md Abu Saleh, M. Yunus Ali, Ali Quazi and Deborah Blackman

The purpose of this paper is to explore international buyer–supplier relationships in an emerging developing country context. The study examines a number of factors…

Abstract

Purpose

The purpose of this paper is to explore international buyer–supplier relationships in an emerging developing country context. The study examines a number of factors derived from internationalization process (IP) theory and their impacts in a novel research setting. The relational variables of trust and commitment, and their drivers, are integrated into a model examining importers’ perspectives of their supplier relationships.

Design/methodology/approach

This study applied a sequential methodological approach. Initially, a conceptual framework was developed from qualitative research and then quantitatively validated using structural equation modeling (SEM). The data for this study were collected conducting in-depth interviews and survey questionnaires. For empirical validation, the SEM technique was applied to assess the proposed model.

Findings

Importing firm managers perceived that the commitment of their suppliers bolstered their trust in the relationship, this contrasts with the conventional contention of a reverse relationship. The findings confirm cultural similarity facilitates communication, leading to increased knowledge and experience of importers, thereby contributing to an enhanced commitment to build trust in the relationship.

Practical implications

The conceptual framework developed in this study provides a direction to manage and enhance understanding of IP and relationship outcome. The findings have strategic implications for practicing managers in developing and supporting their importer–foreign supplier relationships.

Originality/value

This study is unique in assessing as well as validating key constructs of IP theory in an international exchange (importer–supplier) relationship. The study offers completely a new insight in relation to applying IP theory’s relational perspectives.

Details

Journal of Enterprise Information Management, vol. 32 no. 2
Type: Research Article
ISSN: 1741-0398

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Article
Publication date: 17 October 2016

Frans Prenkert

The purpose of this paper is to provide an account of who forms what market assets by making what market investments in a business network.

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2770

Abstract

Purpose

The purpose of this paper is to provide an account of who forms what market assets by making what market investments in a business network.

Design/methodology/approach

To investigate what market investments were made by certain actors into resource interfaces as market assets, the author draws on a case network based on an investigation of the Chilean salmon production network. To this end, the author chose the fish – being the focal object resource in that network – as a point of departure. The author systematically investigates the resource interfaces that this resource has with three other specific resources: feed, fishmeal, and vaccines in a thick case study.

Findings

This study shows that market investments entail committing resources to resource interfaces which turns them into market assets. Resource interfaces as market assets have implications on how we characterize and value resource interfaces. Multilateral resource interfaces become valuable to firms as a result of continuous market investments made into them. This produces different types of resource interfaces, some of which are of mediatory character bridging between distant resources in a network.

Research limitations/implications

This study focuses on the market investments being made to create and sustain market assets. Of course such assets are linked to a firm’s internal assets which this study do not investigate. In addition, this study emphasizes the commitment of resources into existing resource interfaces, the ensuing creation of market assets, and its use and value for firms and downplays a firm’s need to account for market investments and the market investments required to create a new resource interface.

Practical implications

As resource interfaces are valuable market assets, it is important to understand the functioning of different types of resource interfaces so as to exploit their potential as efficient as possible. This paper shows that some resources act as bridging resources connecting the borders of two indirectly related resources. Controlling bridging resources becomes an essential task for managers in business networks.

Social implications

Understanding the market investments into resource interfaces enables firms to become more skilled in organizing and controlling networks. These networks can play important roles in the economic development of society and create improved societal conditions for people, organizations, and economies.

Originality/value

By combining a market investment and market asset conceptualization of investments in networks with a resource interaction approach, this paper provides an enhanced understanding of resource interfaces as market assets. Theoretical implications for our understanding of resource interfaces – its value and character – are discussed.

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Article
Publication date: 12 February 2018

Mo Yamin and Yusuf Kurt

The purpose of this paper is to utilize key insights from social network theory (SNT) to enhance understanding of overcoming the liability of outsidership as a…

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6593

Abstract

Purpose

The purpose of this paper is to utilize key insights from social network theory (SNT) to enhance understanding of overcoming the liability of outsidership as a prerequisite for firm internationalization. Specifically, it examines the influence of structural attributes of networks on the motivational stance of both network insiders and outsiders in relation to overcoming the liability of outsidership. A related aim is to explore the role of network positions of insider actors in terms of its impact on the speed of market entry.

Design/methodology/approach

The paper draws on the extant literatures on firm internationalization, particularly the liability of outsidership, and SNT to identify to what extent SNT can be utilized to deeply understand the process of overcoming the liability of outsidership. The authors put forward eight propositions linking structural and positioning attributes of networks with overcoming the liability of outsidership.

Findings

SNT provides strong potential for a more comprehensive understanding of the internationalization phenomena through shedding light on the relationship between the liability of foreignness and the liability of outsidership. The paper demonstrates that while the cost of overcoming the liability of outsidership is higher in closed target network as compared to open networks, the expected benefits of an insidership position in closed or open networks are affected by the outsider firm’s perception of the liability of foreignness in the market it wishes to enter. Considering the differential enabling characteristics of closed and open networks in terms of facilitating tacit knowledge sharing as opposed to explicit information flows, the authors reveal that liability of foreignness operates as a negative moderator for the relationship between network structure and the willingness of the outsider to invest in gaining insidership. The analysis of the paper also shows that the positional attributes of the network insider are relevant in outsiders’ motivation in terms of the speed of market entry that they seek to achieve.

Originality/value

This study theoretically contributes to the internationalization research through integrating SNT with the liability of outsidership understanding of firm internationalization. This is a timely attempt as no systematic application of the conceptual apparatus of SNT in the internationalization research context has been studied. It adds a more coherent inside-out perspective into the overcoming the liability of outsidership discussion which has been extensively dominated by an outside-in perspective.

Details

International Marketing Review, vol. 35 no. 1
Type: Research Article
ISSN: 0265-1335

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Article
Publication date: 1 September 2008

Chi‐Hsing Tseng and Hsin‐Chih Kuo

By applying a network theory, this study explores the relationships between internationalization models and the adoption of network strategies. Based on the time period…

Abstract

By applying a network theory, this study explores the relationships between internationalization models and the adoption of network strategies. Based on the time period between a firm’s inception and its first year of investing abroad, this study compares firms with two different types of internationalization process: “Born Global” and “Incremental”. This study also proposes two kinds of network strategies: business and social. After investigating 138 foreign direct investment (FDI) cases of Taiwanese firms in China or the USA, we find that compared to Incrementals, Born Globals are more likely to adopt social network strategies with the local community. This research also finds there is a strong relationship between the foreign investment country and network strategies. Compared to firms with FDI in the USA, firms investing in China rely more on co‐operative production systems and are more likely to utilize social relationships with the local community and government authorities.

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Journal of Asia Business Studies, vol. 3 no. 1
Type: Research Article
ISSN: 1558-7894

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Article
Publication date: 17 July 2017

Jan-Erik Vahlne, Mattias Hamberg and Roger Schweizer

Accentuating the concept of management under uncertainty in the Uppsala internationalization process model, the purpose of this paper is to develop a model for describing…

Abstract

Purpose

Accentuating the concept of management under uncertainty in the Uppsala internationalization process model, the purpose of this paper is to develop a model for describing how managers act while keeping uncertainty at an acceptable level.

Design/methodology/approach

The authors perform two empirical studies to underpin the model they construct. First, a survey of 309 chief executive officers and chief financial officers in large, publicly listed international firms in the Nordic region on managerial risk perceptions and, second, a case study of Volvo Car Corporation and its endeavors when developing new car models for the Chinese market on a new platform – a process characterized by unprecedented uncertainty.

Findings

The proposed model describing managers’ behavior under uncertainty contains elements such as adjusting/proceeding in small steps, reducing uncertainty via learning, building relationships with important parties in the environment to avoid unforeseen changes and re-dos (i.e. starting all over again) and, perhaps most important, acting despite uncertainty.

Originality/value

The paper highlights a central, though forgotten, concept of the Uppsala internationalization process model, i.e. management under uncertainty, and, thereby, opens a new path for research on how manager behave under the sway of uncertainty.

Details

Multinational Business Review, vol. 25 no. 2
Type: Research Article
ISSN: 1525-383X

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Article
Publication date: 15 February 2016

Thomas Peschken, Paurav Shukla, John Lennon and Shirley Rate

The paper aims to explore the internationalisation decision-making of small- and medium-sized enterprise (SME) owner/managers. Specifically, structural alignment theory…

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1592

Abstract

Purpose

The paper aims to explore the internationalisation decision-making of small- and medium-sized enterprise (SME) owner/managers. Specifically, structural alignment theory (SAT) and regulatory focus theory (RFT) are utilised to examine the concept of opportunity recognition in the context of internationalisation choices.

Design/methodology/approach

This paper is conceptual in nature, and an integrative cognitive model of internationalisation choice decisions is developed based on SAT and RFT, underpinned by a critical review of the international entrepreneurship (IE) literature.

Findings

Scenarios are identified in which the structure of available information may affect the decision-evaluation process in terms of cognitive resource requirements. Further, the SME owner/manager’s motivational goal orientation is suggested to moderate the role of the information structure in line with IE literature. A conceptual model and propositions are presented.

Research limitations/implications

The conceptual model and the propositions arising from the discussion in this paper offer new directions of research to explore SME internationalisation.

Originality/value

This paper offers a cognitive perspective of SME internationalisation. This paper offers insights for policymakers, SME owner/managers, practitioners and researchers alike. For internationalisation decisions, this paper highlights the potential impact of the structure of information that is made available to SME owner/managers by industry or policy bodies; further, the moderating influence of motivational goal orientation may inform policy on how information should be presented to SME owner/managers to aid their decision-making.

Details

Management Research Review, vol. 39 no. 2
Type: Research Article
ISSN: 2040-8269

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Book part
Publication date: 21 October 2019

Angels Dasi, Frank Elter, Paul Gooderham and Torben Pedersen

The disruption global digitally based firms are imposing on the positions of established multinational telcos is not just in degree, but also in kind. As such, the telcos…

Abstract

The disruption global digitally based firms are imposing on the positions of established multinational telcos is not just in degree, but also in kind. As such, the telcos are entering a period of VUCA. Although digitally based competitors could suffer from liabilities of “outsidership,” we argue that the physical presence of telcos in local markets will be insufficient to avoid a future as utilities or dumb-pipes. One significant issue as they confront VUCA is therefore whether telcos are able to develop and apply dynamic capabilities.

Details

International Business in a VUCA World: The Changing Role of States and Firms
Type: Book
ISBN: 978-1-83867-256-0

Keywords

Content available
Article
Publication date: 23 August 2011

S. Johanson

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550

Abstract

Details

Strategic Direction, vol. 27 no. 9
Type: Research Article
ISSN: 0258-0543

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Article
Publication date: 10 June 2014

Manuel Portugal Ferreira, Dan Li, Nuno Rosa Reis and Fernando Ribeiro Serra

The purpose of this paper is to conduct a study on the articles published in the four top international business (IB) journals to examine how four cultural models and…

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2561

Abstract

Purpose

The purpose of this paper is to conduct a study on the articles published in the four top international business (IB) journals to examine how four cultural models and concepts – Hofstede’s (1980), Hall’s (1976), Trompenaars’s (1993) and Project GLOBE’s (House et al., 2004) – have been used in the extant published IB research. National cultures and cultural differences provide a crucial component of the context of IB research.

Design/methodology

This is a bibliometric study on the articles published in four IB journals over the period from 1976 to 2010, examining a sample of 517 articles using citations and co-citation matrices.

Findings

Examining this sample revealed interesting patterns of the connections across the studies. Hofstede’s (1980) and House et al.s (2004) research on the cultural dimensions are the most cited and hold ties to a large variety of IB research. These findings point to a number of research avenues to deepen the understanding on how firms may handle different national cultures in the geographies they operate.

Research limitations

Two main limitations are faced, one associated to the bibliometric method, citations and co-citations analyses and other to the delimitation of our sample to only four IB journals, albeit top-ranked.

Originality/value

The paper focuses on the main cultural models used in IB research permitting to better understand how culture has been used in IB research, over an extended period.

Details

Management Research: The Journal of the Iberoamerican Academy of Management, vol. 12 no. 1
Type: Research Article
ISSN: 1536-5433

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