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Book part
Publication date: 24 June 2015

Afonso Fleury, Yongjiang Shi, Maria Tereza Leme Fleury, Silas Ferreira, Jose Henrique Cordeiro and Xingkun Liang

Despite the seminal works of authors like Bartlett, Ghoshal, Nohria, Doz, Williamson, among others, because they focused on mature multinationals, newcomers in international…

Abstract

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.

Details

Emerging Economies and Multinational Enterprises
Type: Book
ISBN: 978-1-78441-740-6

Keywords

Abstract

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The Emergence of the Fourth Industrial Revolution
Type: Book
ISBN: 978-1-78973-994-7

Book part
Publication date: 10 November 2016

Helena Barnard and Joel Rosen

The literature on global value chains and global production networks suggests limited entrepreneurial opportunities for small firms from developing countries. However, in networks

Abstract

The literature on global value chains and global production networks suggests limited entrepreneurial opportunities for small firms from developing countries. However, in networks power can accrue not only to central players (such as lead firms), but also to “marginal” players that can play a brokering role. Brokers get their power from connecting parties that would otherwise not be connected and firms that can bridge structural holes may well have impact beyond what would be suggested by their size. This chapter theorizes and provides evidence for global entrepreneurship through brokerage; when entrepreneurs recognize business opportunities in one context, can identify resources from another context, and can connect the two. Global entrepreneurship through brokerage can take place any time when entrepreneurs see opportunities that can be brokered between any two countries, but it takes a specific form in developing countries. A global entrepreneur can earn rents by bridging the gap between the resources of developed countries and the opportunities in emerging markets. This study examines a South African company providing low-cost housing with funds from socially responsible institutional investors, mainly from North America. The very different institutional conditions of the two contexts facilitate an understanding of how this type of entrepreneurship takes place.

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Global Entrepreneurship: Past, Present & Future
Type: Book
ISBN: 978-1-78635-483-9

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Article
Publication date: 11 March 2010

Elitsa R. Banalieva and Nicholas Athanassiou

This study analyzes the structure of regional and global alli‐ance networks of multinationals. It examines the network structure of 172 Triad (U.S., Western European, and…

Abstract

This study analyzes the structure of regional and global alli‐ance networks of multinationals. It examines the network structure of 172 Triad (U.S., Western European, and Japanese) multinationals during 2001‐2003 and how it affects subsequent corporate performance during 2004‐2006. We study a framework of regional/global strategies based on the social network view of relational ties among firms. Thus, we offer a new perspective to the growing literatures on the regional/global strategies and internationalization of alliance networks.

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Multinational Business Review, vol. 18 no. 1
Type: Research Article
ISSN: 1525-383X

Keywords

Article
Publication date: 4 April 2020

Mouhoub Hani and Giovanni-Battista Dagnino

Studies on inter-firm relationships have recently shifted their attention from dyadic networks to more globally driven network structures. This condition occurs because…

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Abstract

Purpose

Studies on inter-firm relationships have recently shifted their attention from dyadic networks to more globally driven network structures. This condition occurs because embeddedness in global network structures may improve firm innovation and performance. In addition, the improvement of firm innovativeness and performance seems higher when globally networked firms both compete and cooperate between and among them. In this paper, we categorize the simultaneous interplay of cooperation and competition in the global arena as global network coopetition (GNC). Under GNC, multinational enterprises act jointly with their global partners-rivals to improve performance, at the same time by sharing complementary resources (cooperation side) and by undertaking independent actions to enhance their own performance (competition side). This paper aims to expand existing research on network and global coopetition by shedding light on the effects of coopetition between and among firms belonging to global network structures on value capture and innovation performance.

Design/methodology/approach

Using a sample of 100 firms belonging to 14 industries organized in 47 global networks of different sizes, the authors conducted a longitudinal empirical study over the period 2000-2014 covering 1,098 observations, 1,717 interfirm relationships and 78 inter-networks linkages. A multiple regression model on panel data with random effects was conducted on the sample of 1,098 observations related to the global automotive industry to test the research hypotheses.

Findings

Findings show that GNC enhances firm performance and innovation outcomes. In addition to GNC, structural characteristics such as network size, network position and network diversity have significant positive or negative effects on innovation and performance outcomes of firms belonging to these global network structures.

Research limitations/implications

Our research offers a contribution to the literature dealing with global networked structures’ effects on firm innovation performance. In fact, it effectively complements prior work on outcomes of coopetition between firms embedded in complex network structures. It also advances research in the area by introducing the notion of GNC as a network by which firms can enhance their innovation performance and, therefore, their global innovation performance. This study has some limitations. First, we acknowledge that it is focused only on 14 global coopetitive networks. It could be promising to extend the scope to integrate other networks. Second, our measures of firm actions as based on a content analysis of news reports related to firms. It would be important to complement this data collection by conducting a qualitative analysis (interviews). Atlast, it could be promising to include the study of customer needs in the new product development process.

Practical implications

Our study also offers some insights into the management of coopetition. In fact, by taking into account the existence of a context in which global coopetition networks play a role, managers may be better positioned to effectively deal with the paradox of being a partner of their direct rivals to improve their firms’ innovativeness and, consequently, achieve good performance, on the one hand, and to maintain relationships within several networks by taking into account their structural properties such as centrality and diversity, on the other hand.

Originality/value

We contribute to extant network coopetition literature in two ways. First, we introduce the notion of GNC to detect coopetition occurrence in global network structures. GNC refers to a context where actors in various networks belonging to different industries and geographies cooperate in a one (or more) innovative project/s, while simultaneously keeping on competing within and between their networks. Second, we contribute to network coopetition by analyzing specific GNC effects on firm innovation performance. In so doing, we can provide a deeper analytical understanding of GNC performance effects on firms operating in global network contexts.

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Journal of Business & Industrial Marketing, vol. 36 no. 11
Type: Research Article
ISSN: 0885-8624

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Book part
Publication date: 4 May 2020

Matthew C. Canfield

As social movements engage in transnational legal processes, they have articulated innovative rights claims outside the nation-state frame. This chapter analyzes emerging…

Abstract

As social movements engage in transnational legal processes, they have articulated innovative rights claims outside the nation-state frame. This chapter analyzes emerging practices of legal mobilization in response to global governance through a case study of the “right to food sovereignty.” The claim of food sovereignty has been mobilized transnationally by small-scale food producers, food-chain workers, and the food insecure to oppose the liberalization of food and agriculture. The author analyzes the formation of this claim in relation to the rise of a “network imaginary” of global governance. By drawing on ethnographic research, the author shows how activists have internalized this imaginary within their claims and practices of legal mobilization. In doing so, the author argues, transnational food sovereignty activists co-constitute global food governance from below. Ultimately, the development of these practices in response to shifting forms of transnational legality reflects the enduring, mutually constitutive relationship between law and social movements on a global scale.

Book part
Publication date: 13 August 2014

Valentina De Marchi, Eleonora Di Maria and Stefano Ponte

This paper aims at enriching the literature on international business (IB) studies to include insights from Global Value Chain (GVC) analysis to better explain how MNCs can…

Abstract

This paper aims at enriching the literature on international business (IB) studies to include insights from Global Value Chain (GVC) analysis to better explain how MNCs can orchestrate a global network organization. A first important contribution of the GVC literature is that it shifts the focus from single firms to their value chains, providing instruments to study how activities are split and organized among different firms at the industry level, and how MNCs can implement different governing mechanisms within a network-based setting. The GVC literature also highlights that retailers (as global buyers) often act as ‘lead firms’ in shaping the trajectories of global industries, while IB studies have so far focused predominantly on manufacturing firms. A fine-grained analysis of alternative forms of governance characterizing value chains can offer additional elements in explaining how MNCs can manage their network relationships in a global scenario. Finally, through their focus on upgrading, GVC studies suggest that knowledge flows and innovation dynamics taking place within value chains are as important as those taking place within the MNC’s organizational border. We conclude by arguing that these insights can help the IB literature to examine the challenges and opportunities MNCs face in engaging with suppliers and to explain the dynamic evolution of orchestrating global activities at the global level.

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Orchestration of the Global Network Organization
Type: Book
ISBN: 978-1-78350-953-9

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Article
Publication date: 2 December 2022

Bing Li, Zhihui Shi and Wei Guo

As foreign direct investment (FDI) plays an important role in economic globalization. This paper examines the structural features of the global FDI network based on FDI flows data…

Abstract

Purpose

As foreign direct investment (FDI) plays an important role in economic globalization. This paper examines the structural features of the global FDI network based on FDI flows data and changes in the position of countries within the network.

Design/methodology/approach

In order to study the structural characteristics of the global FDI network and the status and changes of countries in the global FDI network, the authors build the investment network and apply the QAP (Quadratic Assignment Procedure) analysis to examine the evolutionary characteristics of the network and its influencing factors.

Findings

The global FDI network becomes more interconnected and has a clear “core-periphery” structure. The network connections and volumes have increased dramatically and most countries spread their assets across multiple countries, while only a handful of countries have concentrated investments. The topological structure of the global FDI network has changed noticeably, although this process has been slow and stable and countries in the core position have remained largely intact. The authors find that trade relations between countries, geographic distance and differences in economic size, income levels and institutional environments all have a significant impact on the global FDI network.

Research limitations/implications

Although we find some valuable results, some aspects need further investigation. For example, how a country uses the investment network to boost its economy and how the different industries in the investment network change over time. It is important to get the industry-level details to understand the impact of the global investment network from a government's perspective.

Practical implications

FDI affects the distribution of international capital and contributes to the development of the global economy. Therefore, it is important to study the characteristics of the global FDI network and its development patterns. With more understanding about the network as well as its evolutionary pattern, the government can possibly carry out some policies to promote direct investments as well as economic development.

Social implications

All countries should actively engage in international direct investments and strengthen their economic ties. At the same time, they can put more emphasis on inward or outward FDI based on their own level of economic development to better establish the circulation channel for domestic and international capital.

Originality/value

This paper examines foreign direct investments through the lens of a global network. In contrast to traditional bilateral studies, this paper focuses on the network structure and evolution, reflecting the dynamics of the entire direct investment system as well as the changing positions of participating countries.

Details

Kybernetes, vol. 53 no. 3
Type: Research Article
ISSN: 0368-492X

Keywords

Article
Publication date: 29 October 2018

Enrico Baraldi, Francesco Ciabuschi, Olof Lindahl, Andrea Perna and Gian Luca Gregori

The purpose of this paper is to explore two specific areas pertaining to industrial networks and international business (IB). First, the authors look at how business relationships…

Abstract

Purpose

The purpose of this paper is to explore two specific areas pertaining to industrial networks and international business (IB). First, the authors look at how business relationships influence the internationalization in time, from the establishment of the first subsidiary in a foreign market to the following ones, and in space, that is, across different markets. Second, the authors investigate how an increasing external network dependence of subsidiaries in their internationalization may cause a detachment of a subsidiary from the mother company as its knowledge becomes insufficient to guide a subsidiary’s internationalization.

Design/methodology/approach

This paper utilizes an exploratory, longitudinal, single-case study of Loccioni – a manufacturer of measuring and automatic control systems for industrial customers – to illustrate the specific dynamics of the influences of industrial networks on the internationalization of subsidiaries.

Findings

The case study helps to elucidate the roles, entailing also free will and own initiative, of small suppliers’ subsidiaries which operate inside several global factories, and how “surfing” on many different global factories, by means of several local subsidiaries, actually supports these suppliers’ own international developments. This notion adds to our understanding of the global factory phenomenon a supplier focus that stresses how the role of suppliers is not merely that of being passive recipients of activities and directions from a focal orchestrating firm, but can also be that of initiative-takers themselves.

Originality/value

The paper contributes to the IMP tradition by providing a multi-layered and geographically more fine-grained view of the network embedding companies that operate on internationalized markets. This paper thereby sheds light on a less investigated area of research within the IMP tradition: the link between internationalization in different countries and the interconnectedness between the industrial networks spanning these countries. At the same time, this paper contributes to IB theories by showing how a late-internationalizing SME can enter highly international markets by “plugging into” several established “Global Factories” as a way to exploit further opportunities for international expansion.

Details

IMP Journal, vol. 12 no. 3
Type: Research Article
ISSN: 2059-1403

Keywords

Article
Publication date: 1 September 2001

Shirin Madon and Sundeep Sahay

Notes how rapid urbanization is transforming the developing world – creating cities, which on the one hand offer opportunities for global economic activity, but on the other hand…

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Abstract

Notes how rapid urbanization is transforming the developing world – creating cities, which on the one hand offer opportunities for global economic activity, but on the other hand are beset with serious local civic, economic and social problems. New networks based on information and communication technologies are increasingly being woven into the fabric of these cities supporting the connectedness of powerful groups both within the city and between cities around the world. These flows of global information and communication between powerful groups in the city involved in global economic activity coexist with intense face‐to‐face interactions at the local level. Bangalore in South India presents a major case study of this global/local interaction, being a focal point for software development in the Asian region and globally, but also beset with local problems of civic deficiencies, growing poverty and income inequality. Explores some of the issues which arise as Bangalore serves as a nexus that links global and local networks of exchange. Examines two Bangalore networks which typify global and local duality: the network of software firms located in high technology enclaves in and around the city, and the ostracised network of the slum dwellers of Bangalore, gradually being brought into mainstream discussions of governance in the city. Finds considerable similarities between global networks and local networks and outlines some of these dynamics.

Details

Information Technology & People, vol. 14 no. 3
Type: Research Article
ISSN: 0959-3845

Keywords

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