Political actions in business networks a Swedish case

In international business studies, as well as in political science, the influence of political rules on business firms is assumed to be homogeneous and unidirectional. However, if the relationship between the political and the business actors is seen as an interaction, a different conclusion will be reached. We would like to add more knowledge to international business studies by analysing the interaction between governmental bodies and business units using a network model. In this paper, we study a ‘political case’ — the Bofors-India case — and analyse how this affair influenced other Swedish companies and their way of doing business in India. The question addressed is how the interaction between some parts of the government and a company — the development of one business relationship — is interwoven with other relationships. One conclusion reached is that a political act toward one MNC will affect other companies, although not in the same way. The degree to which and the way in which the other companies will be influenced depends on where they are positioned within the networks in relation to the problematic relationship.     

The role of networking and commitment in foreign market entry process: Multinational corporations in the Chinese automobile industry

This study addresses the role of business networking and commitment to local market when MNCs enter an emerging market. We investigate the reasons for variations in the speed of MNCs’ foreign market entry. Particularly, we examine whether MNCs’ networking with the key local actors facilitates MNCs’ entry and whether learning and commitment in the context of networking affects the speed of MNCs’ entry process in the Chinese automobile market. The study is based on the experiences of three MNCs, a U.S.-based firm, a European firm, and a Korean firm. Data is collected through in-depth interviews and through secondary sources related to the entry process of these cases. The cases illustrate that speed of foreign market entry is significantly influenced by business networking between MNCs and the key business and socio-political actors, since different types of business networking determine the level of learning and commitment. Our cases also show that the effects of business networking generated during the initial foreign market entry by the MNC may be different than those during sequential entries.     

Firms' use of organizational,personal, and intermediary networks to gain access to resources for internationalization

This study explores which networks are beneficial for gaining resources for firms' internationalization. Little is known about firms' use of organizational, personal, and intermediary networks to gain access to resources for internationalization. Firms are seeking resources through their organization's relationships (organizational networks) and individuals' personal contacts (personal networks). Governmental and industry actors are implementing networks to promote international growth and act as an intermediary between business actors (intermediary networks). We conduct in‐depth interviews with firms and representatives for intermediary networks complemented with a survey. The findings reveal which resources are accessed through the different networks. We find organizational networks provide considerable access to most resources (except financial resources) that are beneficial for internationalization, whereas intermediary networks provide access to reputational, human, and market resources. Personal networks primarily provide access to human resources. This study contributes to theory by giving a more fine‐grained understanding of how different types of networks give access to different resources valuable for internationalization.     

Synergies and tensions between and within domestic and international market activities of firms

The distinction between domestic and international market activities has an idiosyncratic meaning for international business research. This study examines the significant yet unclear role of domestic market activities for the internationalizing firm through the theoretical lens of exploitation and exploration. By means of five qualitative case studies, we show that both the dynamics between domestic–international market activities and the interplay between exploitation–exploration are intrinsically concerned with synergies and tensions. Our findings uncover how firms leverage these synergies and manage these tensions that manifest between and within their domestic and international markets. Synergies and tensions are found to revolve around ambidexterity, networks and organizational market information processes.     

God as a Managerial Stakeholder?

Can or should God be considered a managerial stakeholder? While at first glance such a proposition might seem beyond the norms of stakeholder management theory or traditional management practice, further investigation suggests that there might be both theoretical and practical support for such a notion. This paper will make the argument that God both is and should be considered a managerial stakeholder for those businesspeople and business firms that accept that God exists and can affect the world. In doing so, part one of the paper first discusses the growth of religion and spirituality within the business and academic communities. Part two raises several arguments based on stakeholder theory and business reality to support the notion of God as a managerial stakeholder. Part three addresses the arguments against God as a managerial stakeholder. Part four discusses the managerial implications of considering God as a managerial stakeholder. The paper concludes with its limitations.     

Internationalization of Smaller Firms: Opportunity Development through Networks

This article aims to contribute toward a better understanding of the opportunity development process that rapidly internationalizing small and medium‐sized enterprises (SMEs) undergo. Little is known about how SMEs overcome challenges in the process of recognizing and exploiting market opportunities during their rapid expansion abroad. This article presents a longitudinal case study that illustrates how a firm's relationships with business, social, and political actors enhance its opportunity development during the internationalization process. The findings highlight that conducting matching activities at different levels helps the firm overcome challenges and succeed in developing new opportunities for continued expansion abroad. This study contributes to research on rapidly internationalizing firms by broadening the empirical and theoretical understanding of the opportunity development process for smaller firms. © 2015 Wiley Periodicals, Inc.     

Born global or local? Factors influencing the internationalization of university spin-offs—the case of Halmstad University

A wealth of research in the past decades has examined born globals or international new ventures, which are firms that from inception view the whole world as a market and as a source to access resources. Many of these firms build their competitive advantage on high-tech knowledge. However, although many studies have shown how born globals can achieve success if they access resources through their relationships from actors in their networks, few studies have explored the relationship between born globals and universities. Universities are important actors in creating new technology knowledge, and many studies have shown how new firms, or so-called university spin-offs (USOs), are formed around universities. The current study explores why some USOs are successful in their international growth strategy and discusses the factors that influence and facilitate the internationalization process. The study investigates 10 USOs around the newly established Halmstad University in Sweden and finds that universities have a positive effect on firm creation and initial international growth. The regional competence base increases from the establishment of a local university, primarily by strengthening the regional human capital and by increasing university research. This study shows that researcher entrepreneurs’ ventures start as born globals, but that these firms do not continue to grow. Born global business models, per se, do not lead to competitive advantage and successful internationalization. Instead, a strategy built on customer focus and an ability to adapt to different customer demands lead to growth, and the location of growth is dependent on the size of the home market. This study also shows that student entrepreneurship can be a successful growth strategy for USOs focusing on both international and local markets.     

Global marketing strategy modeling of high tech products

This study considers the role of global marketing strategy and its relation to market orientation, international experience, and performance in the high tech products context. Knowledge of this important domain of global marketing strategy and performance remains limited. In this respect, the study raises a number of important questions concerning how market orientation, international experience and global marketing strategy impact performance. The study empirically tests predictions of relationships by using mail survey data from 172 business units of high tech firms. Findings from the research sample support the argument that market orientation, international experience, and global marketing strategy are the key antecedents of organizational performance. Market orientation and international experience influence global marketing. The article concludes with theoretical and managerial implications of the research findings.     

Managing socio-political risk at the subnational level: Lessons from MNE subsidiaries in Indonesia

Within emerging markets, institutional conditions vary significantly at both the country and subnational levels. Although the extant literature recognises the types of risk faced by multinational enterprises (MNEs) in emerging markets, it has hitherto paid scarce attention to explaining how MNEs manage such risk at the subnational level. Reporting on four case studies from Indonesia, we outline how MNEs ensure their success by maintaining active relationships with a variety of non-market actors—including opinion leaders, government officials, and communities at the subnational level. In our study, we developed a conceptual framework, showcasing how MNEs can manage socio-political risk within heterogeneous institutional settings.     

What drives the export performance of small and medium-sized subcontracting firms? A study of Korean manufacturers

Building on the resource-based view and network theory, we propose and test a framework of export antecedents of subcontracting small and medium-sized enterprises (SMEs). Whereas the internationalization of firms has been extensively studied in general, little is known about what drives the exports of subcontracting SMEs which play a very important role in the manufacturing sectors of East Asian economies. These subcontracting firms operate under very different conditions from other companies, resulting in specific ways they leverage their resources, capabilities and customer networks. An analysis of survey data from 1733 subcontracting SMEs in three South Korean manufacturing industries reveals that the firms’ export orientation and export intensity are related not only to their technological resources and their executives’ managerial capabilities, but also to features of their subcontracting network ties. Our study suggests that due to the specific nature of their business, subcontracting firms’ internationalization antecedents need to be analyzed in the context of their business environment which is strongly shaped by their customer relationships.     

Solving Export Marketing Problems of Small and Medium-Sized Firms from Developing Countries

Abstract

This study shows how networks can be used to solve the export marketing problems manufacturing firms in developing countries are facing. Major export barriers perceived by manufacturing firms in Eritrea are identified and, subsequently, differences in perceptions between footwear and textile manufacturers, and small and medium sized firms are examined. The findings suggest that some problems can be solved through individual action by the firms (market or hierarchy). However, small and medium-sized firms on their own can't solve the most important problems, like the lack of market information, the preparation of proper designs and the fulfillment of minimum quantity requirements. The major conclusion is that export market entry by SMEs in developing countries will not be successful if no horizontal and vertical business networks are established.     

Independent financial advisors: open innovation and business performance

The purpose of this paper is to examine the behaviour of small independent financial advisors (IFAs) in terms of their involvement in networks and open innovation. A mail survey of small IFAs was undertaken utilising previously validated scales to assess business performance in relation to networking and open innovation. Results indicate that IFAs involvement in networks and open innovation can assist business performance. The managerial implications are that IFAs and other financial services organisation sector firms may be able to achieve higher sales growth by participating in networks and engaging in open innovation. This paper provides an original empirical assessment of possible strategies to enhance sales growth in small financial service sector firms facing volatile market conditions.     

Immigrant social networks and foreign entry: Australia and New Zealand firms in the European Union and Greater China

Based on social networking and ethnic networking theories, this paper presents a theoretical framework that hypothesizes the linkages between immigrant social networks and foreign market entry (FME) strategies for firms operating in the European Union (EU) and Greater China (GC) region. “Immigrant effect” (IE) is used as a proxy for immigrant social networks. IE refers to firms that are owned and/or hired immigrants in key decision-making positions to manage and/or market their products/services in the immigrant's country of origin (COO). The findings of this study reveal that immigrants do play a pivotal role in affecting the choice of FME mode into their respective COO in both EU and GC regions. As such, firms could employ a standardized IE–FME framework across the EU and GC regions. However, the antecedents for choosing an IE are different for both regions, thus suggesting that a different antecedent-IE framework for the EU and the GC regions. The results suggest that both standardized and adapted approaches should be considered when formulating the antecedent-IE–FME framework for the EU and GC regions. The findings of this study has theoretical implications for research pertaining to social network/ethnic network and FME, standardization/adaptation as well as practical implications for firms that seek to use IE in transacting business in the immigrant's COO.     

Me,myself and I: The role of CEO narcissism in internationalization decisions

Internationalization decisions represent major objects of international business research; in this context, the respective role of decision-makers, i.e., strategic actors has been under study for now nearly 50 years. However, some important individual characteristics of strategic actors, which seem to influence individual decision-making in a significant way, have been – in contrast to general management research – widely disregarded. Among those characteristics, narcissism plays a decisive role. Trying to provide a first attempt to fill this research gap our paper aims at theorizing on as well as empirically analyzing potential relationships between narcissistic tendencies of CEOs and their internationalization decisions. The empirical study of major German manufacturing firms over the period 2004–2013 shows that CEOs with a high degree of narcissism tend to intensify business activities abroad in general while the expected effect on intensified activities in markets with a high psychic distance cannot be identified. These research results help to better understand the drivers of firms’ internationalization, stress the importance of recognizing managerial decision-making in the context of analyzing business activities abroad, and improve the prediction of CEOs’ decision-making behavior in general.     

Is marketing agility important for emerging market firms in advanced markets?

Marketing agility has recently gained the attention of international marketing managers and scholars. However, scholars have not examined how this capability directly and indirectly influences firm performance and how the effects change under the complex market conditions facing emerging market (EM) firms in advanced economy (AE) markets. Hence, underpinned by the dynamic capability and complexity theories, this study investigates the direct effect of marketing agility—a dynamic meta-capability involving market sensing, speed, flexibility and responsiveness—on firm performance and its indirect effect via marketing program adaptation. Moreover, it explores changes in these direct and indirect relationships under varying market complexity levels. EM firms are often disadvantaged owing to AE market complexity, such as the presence of low-cost advantage of local AE firms. Hence, investigating this framework in this context is valuable. Using data on Pakistani firms exporting to AE markets, the study finds that marketing agility influences firm performance, and the influence is stronger under high market complexity. When market complexity is low, the influence is mediated by the firms’ ability to adapt their marketing program to meet AE market requirements. Supporting theoretical and managerial implications are offered.     

Enrolling in global networks and contingencies for China's solar PV industry

This study tests the contention in the Asian business systems literature that interacting with global managers and increasing experience via international education are ways by which Asian firms enroll in global networks, thus potentially leading to changes in their broader network contingencies. Chinese solar PV firms are examined given the competitiveness of Chinese products in the global marketplace and the importance being placed on solar energy domestically as China confronts increasing pressure to protect its environment and control pollution while meeting mounting energy needs. Results indicate an emphasis on extra-firm institutional network relationships both within and outside of China for all firms, characteristic of a bourgeoning energy sector. A unique result is that buyer–supplier networks are spatially influenced by extra-local managerial education. Enrolling in wider networks also matters as firms with internationally educated managers have more non-mainland Chinese managers, which mitigates traditional management practices at home.     

Mutual commitment and experiential knowledge in mature international business relationship

This paper examines how market knowledge and market commitment are developed in mature supplier/customer relationships in international markets. It reports the empirical testing of a model of increasing commitment and experiential knowledge development in international business relationships. The assumption is that the connected relationships in a business network are the basis for forming a relationship and it will influence how the focal relationship develops. The model shows the process when a supplier increases his or her knowledge of the business network that a foreign customer is embedded in and what happens as their relationship with the customer becomes mature, stable and profitable. In this situation the firm does not invest as much as it did early on in the relationship but diverts its attention to firms that are more embedded in the local business network context. The model thus explicates a process of transition as a firm moves from one mature relationship to create new relationships as it increases its foreign market involvement.     

Embeddedness of innovation receivers in the multinational corporation: Effects on business performance

This paper investigates how relationship embeddedness in MNC subsidiaries’ corporate and external networks influences the contribution of innovation transfer to the recipient subsidiary's business performance. OLS regressions using data on the intra-MNC transfer of 224 innovations indicate that the embeddedness of a subsidiary's relationships in the corporate and external network positively affects the received innovation's contribution to business performance. More detailed analysis demonstrates that the positive link between a subsidiary's embeddedness in the external network and the contribution to business performance of receiving an innovation is negatively affected when the innovation is unique compared with other innovations on the market.     

Internationalization of Chinese Firms: What Role Does Guanxi Play for Overcoming Their Liability of Outsidership in Developed Markets?

This article explains how managers of Chinese firms can use guanxi when entering and expanding in developed markets. The empirical basis for the investigation is formed by interviews with 29 managers at 17 Chinese business‐to‐business firms internationalizing to Europe. The results generated are twofold. On the one hand, existing guanxi was largely irrelevant for initially entering the European market. On the other hand, Chinese firms managed to successfully overcome the liability of outsidership by building new guanxi‐like relationships with their Western business network partners after a certain period of time. Six propositions give insights on the process for Chinese firms to become insiders in the business networks of developed countries. The propositions were combined into two comprehensive models that give implications for future research and for management practice. © 2016 Wiley Periodicals, Inc.     

Market-oriented institutional change and R&D investments: Do business groups enhance advantage?

Emerging market firms (EMFs) are increasingly relying on innovation to find their competitive advantage, but our understanding of how institutional change affects firm innovation has been limited. We analyzed Korean manufacturing firms from 1994 to 2006 to test the proposition that market-oriented institutional change in an emerging economy alleviates firms’ financing constraints and monitoring problems and improves the effectiveness of their innovation activities. Institutional evolution in the economy was found to affect Korean business groups and independent firms differently. Institutional change reduced the financing constraints on independent firms more than for business group affiliates in R&D investment. Independent firms, however, appeared less capable than group affiliates of translating the benefits of improved institutional environments into efficient R&D investment. This asymmetry may lead to a wider gap in the efficiency of R&D investment between business group affiliates and independent firms.