Super‐Connectors: A New Model of Internationalization from the MENA Region

The main purpose of this case‐based research is to investigate and analyze three fast‐growing airlines (Emirates/Dubai, Qatar Airways/Qatar, and Etihad Airways/Abu Dhabi) and their internationalization from the Middle East and North Africa (MENA) region. The three carriers that are commonly known as “super‐connectors” in the airline industry continue to excel in their business models and internationalization. Based on secondary data, surveys, and company‐specific information, the article uses a longitudinal case‐based research approach to discuss the three airlines. Findings of the work reveal that the three super‐connectors have aggressively expanded in the MENA region and beyond by seeking multiple alliances, joint ventures, long‐term collaborative agreements (code sharing), and foreign direct investment (FDI). These activities represent innovative business models and operational efficiencies in the global airline industry. We believe that non‐MENA airlines may not have the same dynamism, strategic clout, corporate‐related efficiencies, and financial prowess that we witness among the three super‐connectors. In international business (IB) and multinational corporation (MNC)‐related areas, researchers, industry analysts, and policymakers need to pay attention to the MENA region's super‐connectors and their emerging internationalization models. The article also provides useful trends and implications that can be benchmarked by practitioners, researchers, and airlines regarding the issues of internationalization, growth, and new business models. © 2015 Wiley Periodicals, Inc.     

The role of family conglomerates in emerging markets: What Western companies should know

Large, diversified, family‐owned businesses are dominant players in the economies of most emerging markets and can be excellent business partners for Western companies. This article highlights the evolutionary patterns of family conglomerates (FCs) and delineates principal drivers of their growth, expansion, and internationalization. Those aspects of FCs examined in this study include early mover advantages, foreign alliances, competitive market positioning, and diversification. Also discussed are entry‐mode considerations for Western companies contemplating doing business in the fast‐growth markets of East Asia, Latin America, and elsewhere. © 2004 Wiley Periodicals, Inc.     

The Services Internationalization Process: An Exploratory Investigation of Australian Service Company Internationalization to China

Service companies possess different characteristics from non-service-based companies, affecting their process of internationalization. This article examines the internationalization of service organizations using case studies of 23 Australian service organizations internationalizing to China. It finds that the internationalization process is influenced by the type of service the organization produces. The Uppsala internationalization model partially explains internationalization for companies producing exportable services but did not explain internationalization for companies, which produce nonexportable services (services that must be located within the market). International experience, government regulations and capital intensity were influential for internationalization. The findings develop a model for service organization internationalization.     

Globalization and marketing strategies of Born Globals in SMOPECs

This research examines Born Global companies, which are facing tremendous entrepreneurial and managerial challenges related to instant or rapid globalization. A major research problem addressed is whether the strategies and processes of Born Globals differ essentially from those of other firms in respect to globalization and global marketing. Based on a literature analysis, we first examine the concept of Born Globals and then turn to a review of the research dealing with the globalization and marketing strategies of Born Globals. Survey results on 89 Finnish Born Globals from high‐tech, high‐design, high‐service, high‐know‐how, and high‐system business areas are presented. Their domestic stage lasts for an average of only 2.1 years. For conventional companies, the period is ten times longer. Furthermore, Born Globals can be classified on the basis of their development into three preliminary stages (research & development [RD], domestic, and entry) and into four major stages (starting, development, growth, and mature). The study then proceeds to examine the globalization and global marketing strategies of Born Globals through a multiple case study of 30 case companies representing the above development stages. Special attention is paid to the mature Born Globals, which were found to have passed quickly through the conventional internationalization stages, jumped over some stages, and, in some cases, even progressed in reverse order. After this, attention turns to a detailed examination of the challenges identified and their solutions for three particular interest groups: entrepreneurs, government policymakers, and academicians. The implications of the results for entrepreneurs should be of particular importance, as managerial, research and development, sales and marketing, and also financial challenges and solutions are covered in detail. Finally, this research concludes that although many of the Born Global findings deviate from the internationalization behavior of conventional companies, the holistic and company‐level stage models still seem to have a high degree of explanatory power for many companies originating in small and open economies (SMOPEC). © 2006 Wiley Periodicals, Inc.     

None of our business: A lack of curricular internationalization on the Middle East at small to midsize colleges and universities in New England

Cross-cultural competencies are now specified as critical outcomes in U.S. higher education. Yet an analysis of accredited business programs in New England revealed that students frequently were not required to take courses about the Middle East. The study findings indicate that, for a region of economic and political importance to the United States, a gap exists between the curricular internationalization signaled by accreditation and how accreditors assess this internationalization.     

The internationalization journey of a high‐tech cluster

We examine the internationalization processes of a sample of photonics companies, using in‐depth interviews conducted with twenty‐two CEOs. The texts of these interviews were appraised by using content analysis, combined with a grounded theory approach. In this way, the internationalization theory was critiqued and some insights developed into the international strategy process. Some salient findings emerged, such as that cluster externalities had a positive impact on the internationalization of firms within the cluster, and the degree of strategic vulnerability that cluster firms faced from developing‐country competitors. These findings are discussed in relation to their research and managerial implications. © 2005 Wiley Periodicals, Inc.     

Internationalization journey of healthcare providers: The case of Turkish Acıbadem healthcare group

The advances in technology and global deregulation have led to the progressive internationalization of professional services, notably, the healthcare industry. The present case study examines the remarkable internationalization journey of Acibadem Healthcare Group (AHG) by scrutinizing the dynamics and outcomes of the agile and innovative strategies which propel their achievements. The case of AHG shows that successful internationalization in the service industry, in general, and healthcare, in particular, is not solely in the domain of large, established companies from advanced economies, but those ventures with liabilities of origin, newness, and size can also succeed with smart strategies and resourceful leveraging of their competitive advantages. The study provides unique insights on strategic management for successful internationalization of the healthcare services within an emerging market context and suggests future research avenues in this fast-growing field of inquiry.     

Regional Financial Developments and Research and Development Investment–Cash Flow Sensitivity: Evidence on Chinese Public High‐Tech Companies

In a sample of 485 Chinese public high‐tech companies, we show that the R&D investment is significantly dependent on internal cash flow. Based on the sizable discrepancies of stock market and financial intermediary developments in the East, Middle and West regions of China, empirical estimation provides strong evidence that the financial developments in both credit and equity markets have large effects on reducing financing constraints. The effects are most significant in the financially advanced East region of China.     

The internationalization of the RMB: a perspective vis a vis East Asian economic and financial integration

The People’s Republic of China has achieved remarkable progress in the internationalization of the RMB by introducing a number of concrete measures to boost the RMB’s status on the world stage since 2009. The ongoing RMB internationalization is being promoted under the background of deepening economic and financial integration in East Asia. In this article, we attempt to analyse RMB internationalization from the perspective of East Asian regional integration. We hypothesize that East Asian regional integration lays a broad foundation for China to push RMB internationalization forward. An internationalized RMB, we argue, will play more important roles in the process of East Asian regionalization. Thus, RMB regionalization could be an important and necessary step of internationalization. The Chinese authorities should not only push the RMB toward internationalization under China’s framework of domestic financial system reform, but they should also integrate RMB internationalization into the process of East Asian economic and financial integration. Therefore, a win–win strategy of RMB internationalization for both China and East Asian countries is needed.     

Industry characteristics and internationalization processes in small firms

The purpose of this study of small firms is to compare the process of internationalization in traditional manufacturing companies with corresponding processes in companies oriented toward innovation. Case studies were conducted in six small Nordic companies: three conventional and three innovative. The underlying concept of the conventional companies is strictly production oriented. Investment in engineering workshops and an effective organization for production constitute their most important strategy. In the innovative companies the production equipment is relatively easy to move, and over the years these companies have changed the location of production plants a number of times. The basic meaning of technology also differs in the two categories of industries. The conventional companies are based on an established technology that can be purchased through well-known market channels. In the innovative companies the process of developing new products or serving as intermediary between research organizations and end users demands close contact with people and organizations close to the technological core of the industry.The conventional companies are incorporated into a multidimensional industrial system of suppliers, competitors, and other companies, and the individual companies within these industries are constrained by the rules dictated by these networks. The innovative companies all have a concentrated product scope, which implies that it is relatively easy to achieve efficiency in various functions such as R&D, production, and marketing activities. This clear distinction between functions has been advantageous to the process of internationalization.The conventional companies have characteristics typical of family-controlled companies, i.e., the management team consists of a handful of people often closely associated with the owner family. The observation on the industry level that the game is governed by some very rigid rules is also evident on the management level, where the significant people are always kept within narrow limits. The individuals in the innovative companies have a very high level of education; they work in teams together with partners from other companies and/or organizations and they adhere to high professional demands.The results from these six case studies indicate that the internationalization process must be understood in the context of the industry, company, and people involved. International trade and cooperation will most certainly increase. Therefore it is important to observe that the conditions for industries and single companies are different. Conventional companies have a natural local concentration that ultimately implies different strategies from the innovative companies who have a global focus.     

东北亚地区能源竞争与合作问题研究

东北亚地区各国的能源供应一直处于“各自为战”状态。随着经济全球化时代的到来,能源的生产、运输、供应与消费均被纳入国际化轨道,全球范围内争夺石油资源的竞争日趋激烈。中、日、韩三国同在东北亚地区,石油资源储量贫富不一,石油自身优势不尽相同。对区外石油的依赖,特别是对中东石油进口的依赖进一步增强,使中、日、韩三国均受到供应安全隐患的威胁,惟有加强合作,才能改善本地区的能源安全状况。中、日、韩三国能否找到能源合作的利益交汇点?阻力何在?本文将在客观分析的基础上对开展地区能源合作提出若干建议。     

The Impact of Ambidextrous Leadership on the Internationalization of Emerging‐Market Firms: The Case of India

Ambidextrous leadership is a key factor in the success of emerging market firms’ venturing into advanced economies. Although the definition of ambidextrous leadership is universal, its operationalization is culturally contingent. This conceptual paper examines Indian companies, increasingly recognized for their ambidexterity, and aims to explain this phenomenon by using Indian cultural dimensions. Five propositions relating to charisma, inspirational motivation, intellectual stimulation, individualized consideration, and Indian ambidextrous leadership are developed. We show that the seven cultural variables characterizing Indian ambidextrous leadership (nurturant, personal touch, expertise, simple living and high thinking, loyalty, self‐sacrifice, and the giving model of motivation) reinforce the recent successful internationalization by Indian companies. © 2016 Wiley Periodicals, Inc.     

The internationalization of Nigerian firms: Motivations and location patterns

Despite the increased number of studies of the internationalization of emerging‐market multinationals (EMNCs), Latin American and Asian firms have dominated the focus of such studies, while the study of the internationalization process of sub‐Saharan African firms in the international business literature is quite limited. Therefore, this article examines the motivations and location patterns of the internationalization process of four Nigerian firms through a multiple case study approach. The findings show that the internationalization of the Nigerian firms is a recent phenomenon, but the foreign investment pattern reflects a pan‐African investment strategy. However, the findings also reveal that the firm‐specific advantages that had been accumulated in the domestic market, coupled with home‐country factors and regional‐/host‐market factors, were key determinants of the motivations and location patterns in the internationalization process of Nigerian firms.     

The impacts of network relationships on SMEs' internationalization process

In today's globalization era, more and more firms are striving to have an international presence, even though they face many challenges. Based on a multisite case study method, this article examines how indigenous Malaysian small and medium‐sized enterprises (SMEs) use their network relationships to facilitate their internationalization process. The evidence from the case of three software firms and one control firm in this study support the firms' internationalization process in the ways that network relationships trigger and motivate them to internationalize, influence their marketselection decision and mode‐of‐entry decision, help them gain initial credibility, allow access to additional relationships and established channels, help in lowering cost and reducing risk, and influence their internationalization pace and pattern. © 2006 Wiley Periodicals, Inc.     

Heuristic decision-making in firm internationalization: The influence of context-specific experience

It is widely understood that the internationalization decisions made by companies are complex and constrained by uncertainty. While prior research has shown that heuristics can facilitate decision-making in complex and uncertain environments, the role of heuristic decision-making in internationalization decisions has not been studied in depth. In order to remedy this lacuna, the article uses a qualitative and inductive approach to track the development of heuristic decision-making processes in two Finnish SMEs as they conduct their first moves towards internationalization, explicating the influence of context-specific experience on developments. The emergent theoretical model indicates that while heuristic decision-making has a positive impact on internationalization strategy development, managers are unable to harness this at the beginning of their first internationalization. Indeed, the positive impact appears only after a certain level of context-specific experience is accumulated and when the stimulus of an unexpected event triggers its transformation into usable heuristics.     

International Expansion of SMEs: The Inducascos Case

While small and medium enterprises contribute to gross domestic product, generate crucial employment, and improve socio-economic development, unfortunately the literature on the internationalization processes of these companies remains timid and inconsistent. The following study seeks to analyze the international expansion of the Colombian company Inducascos. The research follows the structure of a case study including literature analysis and secondary data of the Colombian industrial market and Inducascos. Challenges, opportunities and learning process of the organization related to its international expansion and set out, seeking to contribute to the existing studies in international business.     

The use of the consumer ethnocentrism and consumer animosity scales in Iran: A research note

This research note presents the results of testing the reliability of two constructs from the country‐of‐origin literature—consumer ethnocentrism and consumer animosity—within the Iranian national consumer environment. Consumer ethnocentrism, developed by Shimp and Sharma (1987), measures the level of consumer ethnocentrism and has been used broadly in several countries. The consumer animosity scale (Klein, Ettenson, & Morris, 1998), a newer construct, has not been widely tested for its reliability in diverse national contexts. The country of Iran, with its ongoing dispute and hostility with the United States, provides an ideal context to test both of these constructs. We utilized the original animosity scale and an adapted version of the ethnocentrism scale. Both scales performed well and provide strong support for the reliability of each construct, allowing other researchers a high degree of confidence in their application. This finding suggests that these research tools may be useful and can be expanded to the greater Middle East region. © 2009 Wiley Periodicals, Inc.     

The Impact of the Change from Partial to Full Foreign Ownership on the Internationalization of Foreign Subsidiaries

SUMMARY

This paper aims to study how host country firms' internationalization has been impacted by their foreign owners' achievement of full ownership if the companies were not fully foreign-owned at first. It starts with a review of the existing traditional internationalization literature: the Uppsala model, the innovation-related internationalization models and the Finnish model. Then it reviews other research streams: born global, foreign direct investment (FDI) and network literature and the literature on subsidiary roles. A conceptual framework is developed. Then, after a methodology section, four Estonian casestwo from banking and two from the textiles industryare introduced. After the discussion of the results, some managerial and research implications are drawn.     

A Middle East Free Trade Area: Economic Interdependence and Peace Considered

The Bush administration hopes that through a Middle East Free Trade Area (MEFTA), peace and stability can be achieved through intra‐regional economic cooperation. The current impediments to intra‐regional economic cooperation, however, will make a MEFTA a hub‐and‐spoke trade relationship between the United States and the Middle East. Neoliberal arguments for the interrelation of peace and economic interdependence in the context of the Middle East are then considered.