Yukos' Stake in Slovak Transpetrol

SUMMARY

In 2002, Yukos was the ideal investor for Slovak Transpetrol, as Yukos was one of the Russia's largest oil producers, and hence had enough oil to fill Transpetrol's pipelines. Just as important, Yukos was the standard-bearer for Russia's more transparent, well-managed oil sector. Unlike some Russian energy companies, Yukos' conduct never raised suspicions that it was acting as an agent for the Russian State in its former empire. Nevertheless, the situation at the beginning of 2005 is different from 2002. Yukos' forthcoming bankruptcy negates all those advantages because of which Yukos was welcomed as the strategic investor and leaves the Slovak Government with a lot of additional problems. For any decision that the Slovak Government would like to undertake, the agreement of the Russian side is necessary. No swift resolution is likely. Important decisions about the future of the respective oil industry may be made in Moscow rather than in Bratislava.     

Predicting Core Innovation and Wealth from Technological Innovation and Domestic Competitiveness: The Crucial Role of Anti-Trust Policy Effectiveness

SUMMARY

This study examines the determinants of GDP per capita and a nations designation as a core economy. Using data from the global competitiveness report and the World Bank, various measures of technological innovation and competitiveness were tested as predictors of GDP per capita and designation as a core economy. Using multiple regression and discriminant analysis, governmental polices that provide effective anti-trust protection and strong protection of intellectual property are indicated as predictors of a nation's GDP per capita and a nation's degree of innovation and technology transfer.     

EU Enlargement Creating a Framework for the Eu-Russian Rapprochement

Abstract

The Eastern enlargement of the European Union has substantial influence on EU external policy and its relations with non-EU countries, including Russia. In this situation, Russia's main concern is to avoid the creation of new dividing lines after the enlargement. This paper will argue that instead of dividing Europe, the EU enlargement would create a framework for further cooperation and eventually rapprochement between the EU and Russia. Therefore, Russia would be able to benefit from this process. The paper will analyse the consequences of the EU enlargement for Russia and examine the main political concepts determining directions of this rapprochement between the European Union and Russia: New Neighbourhood, Common Spaces and Eastern dimension.     

Paraguay and Mercosur: The Lesser of Two Evils?

ABSTRACT

This article examines Paraguay's experience with Mercosur in terms of its impact on economic growth, trade, investment, industrial competitiveness, and income distribution. Of particular interest is Mercosur's impact on the flourishing border trade taking place under the “regimen de turismo,” a special tax regime for consumer goods, especially electronics. The author concludes that while Mercosur has not brought all the benefits expected from membership in the customs union, being excluded from Mercosur might have been worse for the Paraguayan economy.     

Russian Telecommunication Company MTS Goes to the CIS

SUMMARY

The article deals with the outward internationalization of Russia's telecommunication company Mobile TeleSystems (MTS). This research investigates both target foreign markets and entry strategies of the company. In 2002, MTS started with entries to Belarus and Ukraine, followed by expanding to Uzbekistan and Turkmenistan in 2004. The choice of CIS countries was determined by knowledge of business environment and practices which are similar to Russia, and by economic and political ties inherited from the past. The basic strategy was acquisition of local mobile operators with the exception of Belarus where a joint venture was established. The article suggests that new market entries are expected.     

Globalization,Coordination, and Subsidiary Performance-Evidence from Companies in an Advancing Country

ABSTRACT

We investigate an important issue in globalization, the relationship between production capacity of a global company's subsidiary and its performance, where the subsidiary's relative size of production capacity is regarded as its globalization level. Analyzing the field data on 42 Korean companies engaged in global operations, we reached preliminary conclusions. First, the optimal level of subsidiary globalization represented by its relative production capacity does not exist. This lack of significance subsides when we associate the globalization level with global coordination between the headquarters and its subsidiary. Global coordination turns out to be a significant factor, either direct or moderating in relation to the globalization level, in determining the subsidiary's performance. We also found that the type of coordination supporting the subsidiary's innovation is different from that enhancing its operational efficiency: for the subsidiary's innovation capability, indirect coordination is effective, whereas direct coordination can be detrimental. In addition, we report effects of other factors such as global experience, host country and target market characteristics on the subsidiary performance.     

Scanning the internal environment: Impossible precept or neglected art?

A wave of recent empirical studies draws our attention to the view that successful firms display a heightened alertness and responsiveness to environmental changes (e.g. Hooley and Lynch 1985). Also to be found is a plethora of normative expositions of the organisational systems, techniques and procedures that can be used to generate the data and analyses that provide the basis for knowledge of the firm's market environment (Brownlie 1987).

Students of marketing may be forgiven for congratulating themselves that the merit of one of the basic maxims of the subject is at last achieving widespread recognition. The author would just counsel a moment of caution. In this paper he argues that the popular thrust towards environmental awareness may bring about an overriding concern with the environmental appraisal, to the detriment of its indispensable obverse, the internal appraisal.

The writer reminds us that survival and prosperity are also determined by the match the firm achieves between its distinctive competences and market opportunities. In doing so he calls for a reawakening of interest in what is in danger of becoming the Cinderella function of strategic marketing, i.e. the internal appraisal.

The paper discusses the execution of the internal appraisal and its role in the overall strategic management of the firm. It introduces a conceptual framework which integrates the tasks of defining, identifying and evaluating the firm's strengths and weaknesses. It also looks at functional areas of the firm and gives examples of the strengths and weaknesses to be found in each.     

Enterprise Restructuring and Turnaround Management in Russia

Summary

After the wave of privatization has swept Russia, the crucial stage of enterprise restructuring begins. According to various circulating estimates, about half of large enterprises need to be reorganized if they are to prosper in the new market economy of Russia. Some of other enterprises need to be closed immediately so that they cease to drag the Russian economy down by subtracting value from it. On the other hand, there is evidence of fraudulent bankruptcies orchestrated by Russia's powerful managers and designed to strip existing enterprises of valuable assets which are then transferred to private pockets illegally or semi-legally. The Russian Government is trying to cope with these challenges under very difficult conditions of inadequate human and financial resources, unclear market structures (e.g., financial-industrial groups), underdeveloped markets for assets, and social-political pressures to maintain status quo which is not sustainable in the longer term. Legislative and other actions need to be taken to adopt decentralized, imaginative solutions which can bring results under Russia's particular circumstances. No ready-made solutions exist but the Russian Government sees quite a lot of good analogies in the new German Lacnder. Other potential solutions, like debt-for-equity swaps, vulture funds, etc., stem from the Anglo-Saxon or American traditions. All these solutions should be considered carefully. Some of them should be used domestically; others should give Western capital opportunities to assist in the enterprise restructuring and other transition processes in Russia.     

Business-Government Partnership in Nigeria

ABSTRACT

This study critically examines the role of multinational corporations in the global competitiveness of Nigeria. The primary purpose is to make a modest contribution to the debate on Nigeria's competitiveness in the emerging global economy. This study recommends the redefinition of national development goals and reorientation of the focus of MNCs toward such goals. Future industrial policy will need to address the following areas: (1) Promoting competitiveness, especially improving technological capabilities in a market economy; (2) Shifting the incentive structure strongly towards export orientation; (3) Helping import-substituting industries to restructure and upgrade their technologies and skills; (4) Investing in infrastructure, education, training and technological support services; and (5) Promoting regional cooperation to enlarge markets.     

A Comparison of Communications Practices Among Indian and U.S. Scientists and Engineers

ABSTRACT

An investigation of communication practices among U.S. (n s= 90) and Indian (n = 71) engineers and scientists employed in the aerospace industry revealed statistically significant differences between the two cultures. The differences may be attributed to Hofstede's (1980) cultural dimensions of individualism, uncertainty avoidance, and power distance; Hofstede and Bond's (1988) Confucian dynamism; and Hall's (1976) cultural context. Implications for practice address strategies to accommodate foreign cultures and to develop complementary approaches using the strengths of both cultures. Areas for future research are offered.     

The impact of retail buyer innovativeness on suppliers’ adaptive selling in Japanese buyer–supplier relationships

Abstract

We investigate the critical role of retail buyer innovativeness in Japanese buyer–supplier relationships and explore its link to suppliers’ adaptive selling, cooperative relationships, and retail competitiveness. Further, we examine how process conflict between merchandizing and store divisions moderates the relationship between retail buyer innovativeness and suppliers’ adaptive selling. This study employs a structural equation model using survey data from 246 heads of merchandizing divisions at Japanese retail companies. Our findings highlight the importance of both mitigating process conflict and facilitating suppliers’ adaptive selling in order to improve Japanese retailers’ competitiveness, especially when buyers are highly innovative.     

The Contingency Effects of Supplier Influence Strategies and Their Implications for Retailer Cooperation

Abstract

The success of manufacturers' consumer marketing programs often hinges on whether they are implemented at the retail level. Manufacturers use various influence strategies to persuade retailers to adopt their marketing programs. We investigate how well those influence strategies shape the retailers' positive attitudes toward their suppliers' marketing programs. We find that the effectiveness of those influence strategies depends upon the extent of uncertainty in the retailers' market. We also find that the manufacturer's investment in specific assets to support its relationship with the retailer strongly affects the retailer's attitude toward the supplier's programs.     

Australian Meat Industry

Abstract

Australian exports of meat account for about 46 per cent of the total Australian production of meat, and 19 per cent of total world exports of meat. About 52 and 33 per cent of Australian meat exports are sold on Asian and the American markets, respectively. However, Australia is highly restricted in its access to world meat markets by the impact of export subsidies and other trade barriers. The economic and political problems including rigid import controls are barriers to maintaining export sales on some of Australia's traditional Asian markets. The improvement in tariff barriers in Asia, the Americas and other emerging markets is expected to provide improved market access and opportunities for Australian meat. Higher processing and transportation costs beyond the farm gate also contribute to Australia's less competitiveness on world export markets. Australia should, therefore, implement appropriate measures to increase productivity, improve cost efficiency beyond the farm gate and undertake market research and promotion in order to be more competitive in the long run and to capture a sizeable market share from its major global competitors.     

Russia's Gas Sector: In Need of Liberalization in the Context of the Shale Gas Revolution and Energy Relations with the European Union

Rising gas production from nonconventional deposits in North America and the possibility of growth in the rest of the world pose a serious challenge to Russian energy interests. Although Russia has the largest proven gas reserves and is the number one exporter of fossil fuels, its position as a dominant gas supplier to the European Union (EU) is diminishing. This article examines the main problems of Russia's gas sector in the context of the shale gas revolution and the liberalization of the EU gas market. The article also analyses the perspectives of Russia's energy relations with EU countries and formulates some recommendations for them.     

Local Heroes,Regional Champions or Global Mandates? Empirical Evidence on the Dynamics of German MNC Subsidiary Roles in Central Europe

SUMMARY

In this paper we analyze the influence of a subsidiary's external environment, of its task and of its mode of ownership and its mode of market entry on the development of its role for the case of German subsidiaries in Central Europe. We define a subsidiary's role as a three-dimensional construct, consisting of a subsidiary's tasks, its value chain activities and its respective geographical scope. Drawing on a sample of 99 subsidiaries from the Czech Republic, Hungary, and Poland, we find that a subsidiary's host country, its tasks and its mode of market entry influence the development of its role. We find no evidence for the influence of subsidiary's mode of ownership. Especially, “geographical market proximity seeking”-subsidiaries seem to follow a different path of development than subsidiaries where this task is of minor importance as they tend to perform a smaller number of value chain activities and tend to expand these value chain activities with regard to their geographical scope more incrementally.     

Technological convergence,competitiveness, and welfare: A study of international manufacturing industries

In this study, a monopolistic competition model is used to investigate the effects of international technological convergence on factor rewards, output composition, and welfare. Four testable hypotheses on the impact of technological convergence on follower's and leader's competitiveness and welfare are presented. We then use 1993–2001 data from 128 manufacturing industries in 35 countries to test these hypotheses. Results show that followers' relative wages and global value-added shares increase with technological convergence. Followers benefit from convergence's positive income effect. Leader's own technological progress is the key to its welfare improvement, while terms-of-trade effects appear less important.     

Artificial Intelligence in Managing Market Relationships

Abstract

In the 21st century our society is increasingly defined by access to and fluency with digital technologies and information infrastructures which are described to be essential to economic development, global competitiveness and national productivity (Merril Lynch & Co. Inc., 2000). This paper presents a theoretical framework for the development of a new intelligent software system designed to integrate loyalty programs data bases information, consumer surveys and qualitative studies what will enable the producing firm to be in contact with consumers' behavioural and attitudinal patterns. The benefit of this theoretical model is its assistance to consumer goods-producing firms to establish information-based relationships with both the end customer-user and the retailers that distribute the goods.     

Determinants of Supplier Willingness to Invest in Supporting a Manufacturer's Line

Abstract

This study examines the significance of supplier's expectation of continuity of its relationship with a manufacturer, perception of manufacturer's reputation, trust in manufacturer's credibility, trust in manufacturer's benevolence, and dependence on manufacturer as determinants of its willingness to invest in supporting a manufacturer's line. Data collected from Malaysian and Korean auto suppliers indicate that expectation of continuity of relationship, manufacturer reputation, and trust in manufacturer's credibility are significant determinants of supplier willingness to invest, while supplier dependence and trust in manufacturer's benevolence are not.     

Competitive by design

This paper is concerned with the role of design in the competitiveness of manufacturing companies and reports on design management in commercially successful firms. The findings are based on a survey of design policies and practices in over one hundred British and foreign companies from several industries, ranging from furniture to electronics. The paper shows that while in theory design plays a key role in competition, influencing both “price” and “non‐price” factors, in practice many managers do not give design high priority in company strategy and product development. The commercially most successful firms were those that not only invested resources in design and managed it effectively, but had other strengths, for example in marketing and manufacturing.     

Search-Purchase (S-P) Strategies of Multi-Channel Consumers

Abstract

Our study sought to determine whether a consumer's search-purchase (S-P) strategy could provide a viable market segmentation tool for understanding consumer's channel choice behavior in today's increasingly complex, multichannel market environment. We collected data (N = 519) nationwide, using a self-administered mail survey and focusing on two product categories (books and apparel). Based on the respondent's search-purchase channel behavior, we identified nine segments and deemed three as viable: the Physical/Physical S-P strategist, the Cross/Cross S-P strategist, and the Cross/Physical S-P strategist. Our findings indicate that a consumer's S-P channel choice strategy is indeed a viable segmentation tool; furthermore, a consumer's S-P channel choice strategy is influenced by the consumer's level of sophistication in regard to the technology and by the benefits sought. We conclude by speculating on the uses that retailers could make of our study, and we propose several possible subjects for future studies.