Existing research in firm internationalization tends to adopt the perspective of relatively fixed country specific advantages and disadvantages. However, firms operating…
Existing research in firm internationalization tends to adopt the perspective of relatively fixed country specific advantages and disadvantages. However, firms operating from small developing countries may experience rapidly shifting country-specific advantages due to industrial policy interventions. These changes influence the internal configuration and, ultimately, the internationalization paths of firms, a factor that is not captured by current theory. Using a combination of a country case study and nested multiple firm cases, data were collected on how organizations internationalized from Trinidad and Tobago, a small developing country. Unlike the relatively deterministic outward patterns predicted by existing theories, analysis revealed both evolutionary and co-evolutionary trajectories of development. These outcomes suggest that as a country moves to more open economic environment, network connections in the form of supplier and institutional relationships are of increased value for firms seeking to enter external markets.
Ruth V. Aguilera is an associate professor and a Fellow at the Center for Professional Responsibility for Business and Society at the College of Business at the University of Illinois at Urbana-Champaign. She also holds courtesy appointments at the School of Labor and Employment Relations, the College of Law and the Department of Sociology at Illinois. She received MA and PhD degrees in Sociology from Harvard University. Her research interests fall at the intersection of economic sociology and international business, specifically in the fields of comparative corporate governance, foreign location choices and corporate social responsibility. She has published in the leading journals in International Business and Management. Dr. Aguilera currently serves as a member of an associate editor of Corporate Governance: International Review and is a member of the Editorial Boards of the following peer reviewed top tier journals: Academy of Management Perspectives, Global Strategy Journal, Journal of International Business Studies, Journal of Management Studies, Management International Review, Organization Studies and Strategic Management Journal. She also serves in the board of IMDEA Social Sciences (Madrid) and CSR IMPACT Project (Brussels).
This paper aims to make a systematic study on the factors that hinder the development of China’s intelligent automobile manufacturing industry; based on comprehensive…
This paper aims to make a systematic study on the factors that hinder the development of China’s intelligent automobile manufacturing industry; based on comprehensive understanding of these obstacles and by optimization means, ultimately, the healthy and sustainable development of intelligent automobile manufacturing industry in China can be promoted.
Based on a questionnaire survey of intelligent automobile manufacturing listed companies in China, first, fuzzy semantic scale was adopted to collect respondents’ choices, the fuzzy score function is used to calculate the fuzzy score value and these data are used as the basis for subsequent model analysis. Then, structural equation modeling (SEM) was adopted to analyze the causal relationship between influencing factors to explore the main hinder factors.
It is found that, in the short term, the backwardness of technological industrialization is the main reason leading to low permeability of intelligent automobile; in the medium term, the imperfect industrial R&D ability and the insufficiency of infrastructure are major causes for high manufacturing cost and low competitiveness of intelligent automobile manufacturing industry; in the long term, the lack of national policy and industrial strategic planning is the main factors affect intelligent automobile manufacturing cost and the industry competitiveness.
The research conclusion has important policy implications for promoting intelligent automobile manufacturing sustainable development. In recent years, China’s intelligent automobile manufacturing industry has gradually stepped out of breeding period; therefore, the role of government should be gradually transformed from participants to managers and regulators. Considering the fact that intelligent automobile cost is very high, and still higher than the cost of fuel vehicle, government should focus on the issues such as improving R&D capabilities, infrastructure construction, policy framework system, legal system and technological industrialization. Specifically, in short-term planning, improving technological industrialization level is the key to development; in medium-term planning, policymakers should focus on the improvement of R&D capabilities and infrastructure; considering the long-term development, establishing appropriate national policies and dealing with the adverse impact of imperfect strategic planning are the most sensible choice.
This paper analyzes the factors that hinder the development of China’s intelligent automobile manufacturing industry for the first time, and provides the basic logic of integration factors at different levels with the development of intelligent automobile to reveal the uniqueness and facts of China’s economic development.
Despite the seminal works of authors like Bartlett, Ghoshal, Nohria, Doz, Williamson, among others, because they focused on mature multinationals, newcomers in…
Despite the seminal works of authors like Bartlett, Ghoshal, Nohria, Doz, Williamson, among others, because they focused on mature multinationals, newcomers in international markets find scarce information about the design and implementation of international operations networks. In this paper we analyze the internationalization process of Brazilian and Chinese firms to understand the evolution of their networks, a process influenced by factors inexistent in studies about developed country multinationals, namely global production networks (GPNs) and country-of-origin effects. The key characteristics of their international operations networks seem to be well described by a stage-based approach where emerging country multinationals start as local optimizers and then evolve by taking different strategic positions within the GPN to which they are connected. That upgrading is possible when the implementation of the international operations network reaches a certain level of maturity.
Prior studies on product standardization–adaptation in multinational corporations (MNCs) have revealed environmental factors that can influence the choices of MNCs…
Prior studies on product standardization–adaptation in multinational corporations (MNCs) have revealed environmental factors that can influence the choices of MNCs. However, these studies have not shown how these choices are made behind the scenes in new product development (NPD). In many industries, MNCs face the dual pressures for product standardization and adaptation from the environment. This study aims to explore how MNCs facing dual pressures can make choices of product standardization–adaptation in NPD.
A qualitative case study of four high-performing MNCs was conducted. The four MNCs were selected using the theoretical sampling approach. Data were collected, mainly through 74 semi-structured interviews. Coding was conducted and four aggregate dimensions were generated.
This study reveals that choices of product standardization–adaptation are made through a process in MNCs’ NPD, including four steps – organizing for NPD, organizational diversity, cross-unit integration and combination of design practices. In addition, MNCs adopt different process variants to address different environmental pressures.
This research focuses on high-performing MNCs in manufacturing industries. Future research can explore different types of firms.
Managers in MNCs should focus more on the process of choices for product standardization–adaptation, than on the level of product standardization–adaptation. They should also keep monitoring the environmental pressure and employ experienced engineers.
By focusing on NPD, the authors shift the attention from product standardization–adaptation to product feature standardization–adaptation in MNCs, which is a fresh and refined perspective. The authors show a process in NPD composed of activities and mechanisms that managers might use for handling product standardization–adaptation challenges in MNCs. The authors contribute to the area of cross-unit integration in MNCs’ NPD by revealing mental mechanisms for mitigating tensions in cross-unit interactions.
As China emerges as a centre of manufacturing of the world, more and more small and medium sized enterprises (SMEs) start to outsource their production and related supply…
As China emerges as a centre of manufacturing of the world, more and more small and medium sized enterprises (SMEs) start to outsource their production and related supply chain management in China. But it is very difficult to effectively manage the international outsourcing and supply chain mainly because their limited size and resources. International outsourcing agents emerge as a potential solution pursued by many western companies. Currently it has very limited information from both practical and theoretical aspects to understand the agents and their characteristics. This paper, based on four case studies of agents in three major industrial sectors in China, introduces business models and growth paths of the international manufacturing outsourcing agents, and establishes a set of key performance indicators (KPIs) for evaluation. The paper seeks to help western SMEs and hightech startups recognize the Chinese maturing and an ideal system for implementation, and to provide theoretical insights about the agents role and characteristics in international supply networks.
This paper seeks to explore the interplay and interdependencies of factory and network capabilities. This issue has become progressively more important as companies seek…
This paper seeks to explore the interplay and interdependencies of factory and network capabilities. This issue has become progressively more important as companies seek to manage dispersed networks of plants capable of responding to increasingly competitive and volatile environments. The paper draws on field studies of two international manufacturing networks comprising eight factories in six countries. The research used a case‐based methodology that combined multiple interviews and ethnographic research at each location. Factory and network level capabilities were shown to simultaneously affect a suggested set of dimensions of operational performance and a matrix was proposed to visualise this interdependency. The case studies show that decisions regarding factory and network issues are often taken independently of each other despite the fact that they may be heavily interdependent. The cases also highlight the critical dimension of time in factory and network level capability building as well as the need for developing strategy processes that take into account the interdependency of factory and network capabilities.