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1 – 10 of over 17000Investigates the influence of market concentration, marketdiversification and internationalization strategies on the performanceof multinational enterprises (MNEs). Using a sample…
Abstract
Investigates the influence of market concentration, market diversification and internationalization strategies on the performance of multinational enterprises (MNEs). Using a sample of 450 large, medium and small MNEs, and three alternative definitions of market concentration and market diversification, results indicate that market diversification strategy produces better performance results for MNEs than market concentration strategy. In addition, MNEs using market concentration‐low internationalization strategy performed better than those using market concentration‐high internationalization strategy, and MNEs using market diversification‐low internationalization strategy performed better than those using market diversification‐high internationalization strategy. Discusses implications of the study′s findings for improved MNE performance.
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The academic literature on emerging market multinational corporations (EMNCs) has classified several strategic options that EMNCs can adopt as part of their internationalization…
Abstract
Purpose
The academic literature on emerging market multinational corporations (EMNCs) has classified several strategic options that EMNCs can adopt as part of their internationalization process. Although this research stream does include examples of Indian companies, it has not adequately identified specific strategic practices followed by them as part of their internationalization process. Therefore, this article aims to identify specific firm competencies, home country advantages and strategic practices that Indian EMNCs adopt to achieve foreign market entry and internationalization.
Design/methodology/approach
The article adopts a multiple case study methodology supported by unstructured interviews to answer the research question. Using a combination of in-depth interviews and secondary data related to the case study in question, strategic practices of three Indian companies operating in different industry segments are identified and evaluated.
Findings
The results highlight that as part of their internationalization process, EMNCs from India adopt a combination of strategic practices that include strategic alliances, acquisitions, entry into targeted geographic markets, localized and innovative product offerings and niche market focus. This mix of strategic practices, in combination with high levels of corporate parenting, plays an important role in the ability of Indian EMNCs to internationalize successfully.
Originality/value
This study contributes to the international business field by developing a better understanding of the internationalization process followed by emerging market multinational firms. In addition, as the article adopts a case study approach, specific business strategies adopted by Indian firms as part of their internationalization process are identified. The study, therefore, provides a strategic roadmap for firms from emerging countries on how to internationalize successfully.
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Gadaf Rexhepi, Veland Ramadani, Amir Rahdari and Grisna Anggadwita
This paper aims to emphasize the importance of crafting and selecting business models and strategies of family business in the process of internationalization.
Abstract
Purpose
This paper aims to emphasize the importance of crafting and selecting business models and strategies of family business in the process of internationalization.
Design/methodology/approach
Based on literature review about international entrepreneurship, strategic management, models and strategies of internationalization, a new conceptual framework on family businesses internationalization is provided.
Findings
Family businesses, depending on their size, use different models and strategies to internationalize their activities.
Originality/value
This paper provides a new conceptual framework about internationalization of family businesses, which is based in three main phases: operating in a domestic market and get prepared for a foreign market, selecting the right model of internationalization and selecting the right strategy of internationalization. Beside the new conceptual model, the authors provide the implications of this model toward internationalization of family businesses, and the authors propose some useful recommendation for further research in this field.
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Colin Turner and Paul D. Gardiner
The paper aims to examine the process of de‐internationalisation through an analysis of British Telecommunications' (BT's) experience. There is – to date – little research upon de…
Abstract
Purpose
The paper aims to examine the process of de‐internationalisation through an analysis of British Telecommunications' (BT's) experience. There is – to date – little research upon de‐internationalisation, this paper aims to contribute to the debate through assessing how businesses with a strong domestic position would respond to a turbulent commercial environment.
Design/methodology/approach
The key research issue is addressed in the paper via the use of a single case study.
Findings
The paper finds that BT, throughout the 1990s, developed an aggressive global strategy. However, by the 1990s, BT was in a process of retreat. This failure was influenced by the form and nature with which this strategy was executed, which resulted in a declining commitment to an aggressive global strategy. With the failure of the global strategy, BT reverted to a more defensive corporate strategy.
Originality/value
The paper makes a contribution through adding to an emerging debate on the form and nature of de‐internationalisation. This process is explored from the standpoint of a business that has sought to pursue an aggressive international strategy whilst sustaining a commitment to a strong domestic position. The paper highlights how de‐internationalisation is linked into the form and nature initial strategy.
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The purpose of this paper is to investigate how early internationalization and the use of generic strategies by new ventures affect the performance and internationalization…
Abstract
Purpose
The purpose of this paper is to investigate how early internationalization and the use of generic strategies by new ventures affect the performance and internationalization efforts of those ventures as they move beyond the period of initiation.
Design/methodology/approach
A total of 37 venture capital backed new ventures within the USA were studied from 1991 to 1999. Annual 10‐K filings were used as sources for financial and management data about the new ventures. Industry data were collected from Dunn's Industry Ratios.
Findings
Results suggest that ventures which internationalize early are more likely to continue internationalizing at a higher rate as they mature. Early internationalization did not affect sales growth or financial performance of new ventures in the period after initiation. In addition, generic strategies of these ventures affected internationalization and financial performance differently.
Research limitations/implications
The importance of venture strategy and prior internationalization effort should be considered when investigating the internationalization patterns and outcomes of new ventures. The small size of the sample and the focus on a limited number of variables limit the generalizability of this study.
Practical implications
New venture managers should consider the role of generic strategy and prior internationalization efforts when planning future internationalization.
Originality/value
This research provides an initial understanding of what happens to new ventures as they begin to mature and in particular, the effects of early generic strategy and internationalization on later venture performance are identified.
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Timur Atnashev and Teimuraz Vashakmadze
To analyze internationalization patterns among large Russian multinational corporations (MNCs).
Abstract
Purpose
To analyze internationalization patterns among large Russian multinational corporations (MNCs).
Approach
Case study analysis of systematic internationalization attempts within three industries: IT, banking, and steel. For case studies, secondary data was used along with industry expert interviews.
Findings
The first finding is that Russian firms actively pursuing internationalization strategies through mergers and acquisitions (M&As) and greenfield investments were not as successful as several optimistic assessments had earlier suggested. Few global corporate champions emerged among Russian MNCs, despite a decade of record high outward foreign direct investments (OFDI). Secondly, we observed the unique trend of splitting operations between international and Russian businesses, which proved more sustainable than operating as a single firm. For example, the IBS-Luxoft group achieved success through gradual legal and organizational separation of branches in order to serve rising demand in developed markets and from its Russian business within the same industry. This double-headed strategy divides a business into two parts that are controlled by the same owners, but operate independently: one firm operates within the home market, while another firm aims to expand globally. This seems to be a typical trend, confirming recent findings for Russian small and medium enterprise (SME) internationalization and reinforcing earlier literature on institutional constraints in the Russian economy.
Research limitations
We analyzed major cases from three actively internationalizing industries. For each industry, we extensively analyzed one main case in particular. Industries’ choice also affects specific internationalization strategies.
Originality
This study identifies two distinct approaches in the literature on Russian business internationalization and attempts to combine both. We will also highlight organizational dilemmas as well as patterns in Russian businesses’ successful and failed internationalization strategies over the last decade. We identified an original double-headed internationalization strategy consisting of the separation of the national and global businesses, rather than leveraging their synergy. We will also question the established optimistic assessment of Russian MNC internationalization.
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This chapter provides a critical and comprehensive review of internationalisation models and strategies in higher education and offers a conceptual model for internationalising…
Abstract
This chapter provides a critical and comprehensive review of internationalisation models and strategies in higher education and offers a conceptual model for internationalising the curriculum, taking educational administration and leadership as an example of its implementation. The chapter starts with an introduction and overview of globalisation and how higher education institutions respond to its increasing effects by adopting different internationalisation strategies. This is followed by a discussion on the different forces and rationales involved and the various models and strategies adopted by higher education institutions as well as the many challenges and obstacles they encounter when implementing these strategies. The third section focuses on ways of internationising the curriculum and how it is a complex, dynamic and developmental process that requires the implementation of most internationalisation strategies. The chapter concludes with a discussion of the IHEC model which is created for internationalising the higher education curriculum, focusing on educational administration and leadership as an example. The IHEC model aims to provide students with a universal and holistic learning experience that prepares them for the increasingly competitive and diversified working environment. It also attempts to overcome the Westernisation indigenisation debate by adopting a holistic approach to knowledge and cultural practices that appreciates and integrates different perspectives, knowledge traditions and work practices into the curriculum.
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Higher education has become a more active sector in most of countries recently. Facing a more globalized society and a more competitive scenario, institutions all over the world…
Abstract
Higher education has become a more active sector in most of countries recently. Facing a more globalized society and a more competitive scenario, institutions all over the world are transforming and improving diverse strategies of internationalization to provide innovative experiences to students and professors. Therefore, the main objective of this chapter is to describe the strategies of internationalization at Universidad de Monterrey (UDEM) Mexico such as mobility of students and professor, institutional culture, curriculum, strategic alliances but the most important, international collaboration at classrooms. UDEM is a private higher institution with more international experiences in student mobility in Mexico, and the first with more collaborative online international learning (COIL) projects in Latin America. Using a qualitative research method, this chapter demonstrates that UDEM’s strategies of internationalization both, abroad and at home, transformed actions, functions, and processes at UDEM impacting the quality and experience of education. These strategies have impacted students positively. Besides, these strategies of internationalization have the potential to be replicated in other higher education institutions (HEIs).
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Szymon Kaczmarek and Richard B. Nyuur
This paper aims to revisit the long-standing in the management literature argument of “matching managers to strategy” in the new empirical context of the top management team (TMT…
Abstract
Purpose
This paper aims to revisit the long-standing in the management literature argument of “matching managers to strategy” in the new empirical context of the top management team (TMT) and firm internationalisation. The purpose of this paper is to examine the consequences of matching nationalities of the TMT members to the multinational corporations’ (MNC) countries of operation.
Design/methodology/approach
This research is based on the quantitative methods. The authors use the traditional regression analysis, with the ordinary least squares estimation, in the moderated multiple regression models.
Findings
The study findings point to the importance of the asset-based exposure to international environments for the benefits of the TMT nationality matching to materialise. They re-affirm the critical remarks on the early “matching managers to strategy” frameworks, which indicated that the effectiveness of matching is underpinned by the detailed specification of the matching contingencies that influence the matching process.
Originality/value
The measure of matching the TMT foreign nationals to the MNCs’ host countries constitutes a novel way of capturing the TMT internationalisation, as opposed to measuring the incidence of foreigners on the TMTs or the TMT nationality diversity variable. It therefore underlines the aspect of matching in terms of the cultural fit between the TMT nationalities and countries of MNCs’ operations.
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Earl Yarbrough Jr, Michael Abebe and Hazel Dadanlar
The purpose of this paper is to empirically examine the link between board of director composition and firm performance. Specifically, the paper argues that board political…
Abstract
Purpose
The purpose of this paper is to empirically examine the link between board of director composition and firm performance. Specifically, the paper argues that board political experience influences the firm’s internationalization strategy as directors with significant political experience provide guidance, resources, and network access that enhance the firm’s international presence. The authors also posit that board political connections would be more helpful for firms operating in high-regulation industries.
Design/methodology/approach
The authors tested the predictions using data from 156 large US firms. Data on directors’ background were gathered from SEC proxy filings, while data pertaining to internationalization were obtained from Compustat and Mergent Online databases. Hierarchical moderated regression analysis was employed to empirically test the hypothesized relationships.
Findings
The findings provide strong support for the positive relationship between board political experience and the degree of firm internationalization. Contrary to the authors’ predictions, the level of industry regulation does not seem to significantly affect this relationship.
Research limitations/implications
Firms aggressively pursuing international strategy could benefit from having directors on their board with robust political experience. One of the limitations of the study is that the types of international activities for firms is not specified in the study as it might be in the form of joint-venture capacity, strategic alliances or for firms that might be born-global.
Originality/value
This study makes original contribution to the on-going research on board political activity and firm performance through internationalization strategy. The findings suggest that having directors’ with political experience is an important asset in influencing firm’s corporate strategy.
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