The internationalization of engineering consulting from a strategy tripod perspective

This research investigates the internationalization of engineering consulting firms. The study draws on the elements of the strategy tripod (industry factors, resources and capabilities, and institutional factors). The internationalization process is examined using a longitudinal single case study of a New Zealand-based engineering consulting firm with 40 years of international experience. The research identifies five phases through which the case firm passed during that period, and highlights the different strategies that were apparent. It is shown that individual actors lead to an adjustment of the modes of operation and overall play a significant role for the internationalization of engineering consulting firms.     

The Impact of CAD on Consulting Engineering Firms: A Survey of CAD Users and Non-users

Firms in the Canadian consulting engineering industry were interviewed and surveyed to determine the impact of computer-aided design and drafting (CAD) technology on the management of their firms, to document the current usage of CAD in Canadian consulting engineering, and to identify differences between user and non-user firms. Although CAD usage is still in its infancy in this industry, the technology was found to decrease employment within the industry at lower organisational levels but not to increase the firm's financial risk. Differences between users and non-users were found in their attitudes towards CAD as a tool in providing better client service and in the justification of the CAD investment.     

Influence of industry type on the relationship between international operations and risk

Reducing strategic risk has become an issue of paramount importance to corporations. One way to reduce such risk is through international operations. However, published research reports conflicting findings on the relationship between international operations and risk reduction. In addition, the literature leaves one avenue largely unexplored, namely, industry influence. Using a sample of 367 firms, this study tests for the relationship between internationalization and risk across global and multi-domestic industries. Study findings indicate a negative relationship between risk and internationalization, indicating that firms are benefited by reduced risk through internationalization. Additionally, regression models indicate the incremental rate of benefits due to internationalization is greater in the case of global industries, compared to multi-domestic industries.     

How Does Inward FDI Hinder or Promote Outward FDI? Three Cases of Chinese Automotive Industry

In this paper we investigate the mechanisms underlying dynamic linkages between inward FDI and outward internationalization in the Chinese automotive industry. While several studies have examined the relationship between inward and outward FDI using empirical data, this is among the first to employ a case study approach to investigate how international joint ventures (IJVs) established between foreign and Chinese automakers can shape their internationalization motivation, degree, and speed. We discuss some unique features of Chinese carmakers with and without IJVs to elucidate how firms without IJVs will be more driven to expand internationally while firms with IJVs face constraints in venturing abroad.     

The internationalization of small firms: The relationship between the global mindset and firms’ internationalization behavior

Some firms in internationally oriented industries are internationalized while other comparable firms in the same sector or industry do not. Observing this difference in strategic behavior among small firms led us to consider how differences in CEOs’ attitudes, international orientation, and mindset might explain it. Therefore, this study adopts a cognitive perspective on management to explore the formation of the global mindset and the relationship between the global mindset of small-firm decision makers and their firms’ internationalization behavior. A theory-based conceptual model and measurement instrument are developed and—using structural equation modeling—the model is estimated based on empirical data from cross-sectional samples of small Norwegian and Portuguese firms. The study finds: (1) a strong causal relationship between the global mindset and firms’ internationalization behavior; (2) the combination of the findings and substantive theory indicates that the main driver of firms’ internationalization operates through the global mindset. This study also covers the factors that strongly influence the formation of a global mindset, especially the decision makers’ work experience and personal characteristics in terms of propensity to interdisciplinary collaboration, cognitive flexibility, and networking capability. Based on these findings, suggestions are made for policies that can foster the internationalization of small firms.     

Appropriability as the driver of internationalization of service-oriented firms

An important factor facilitating the internationalization of product-oriented companies is an appropriability regime allowing a firm to become the sole or dominant provider of specific products. The challenge for service firms is that many appropriability mechanisms, such as patents, are traditionally targeted at protecting tangible products and processes from imitation. In this study, we address this issue and examine the role of appropriability conditions as a facilitator of internationalization in the service sector. The results collected from the analysis of 209 firms suggest that a strong appropriability regime (especially in terms of formal mechanisms) positively affects the internationalization of service industry firms.     

The online–offline balance: internationalization for Swedish online service providers

Online service providers (OSPs) are becoming increasingly important in the global economy and are undertaking internationalization at a remarkable speed. Since they depend on digital delivery over the internet, OSPs are portrayed as footloose in their geographical expansion and are often described as “born global.” However, on the basis of three case studies, the paper reveals the importance of the home market as a springboard, and of regional expansion in the early phase of internationalization. The paper emphasizes the balance in the internationalization process between an online and an offline presence in the new international market. The time gap between online and offline presence, the online-to-offline interval, seems to be a critical factor in the internationalization process. The speed of the internet industry and the technically complex nature of online services could explain why the case firms chose controlled modes of entry. The case firms thus skip sequential steps, following a pattern that is in contrast to the Uppsala model. Overall, the paper suggests that finding the right balance between the online and the offline presence is a challenge in the internationalization of these particular Swedish OSP firms.     

Coevolution of home country support and internationalization of emerging market firms

This study explores the role of diverse home country support for the internationalization of emerging market firms through a coevolutionary approach. A coevolutionary approach can improve our understanding of the complexities of comprehensive institutional transition in emerging market economies which allows firms to adapt and leverage institutional support for internationalization. Based on institutional theory and the strategic choice perspective, we present a coevolutionary model of mutualism and competition among businesses, government officials and industry players through multidirectional interactions. Our research offers an alternative and nuanced explanation of selective and relevant home country support, the role of independence of firms, support criteria and reinforcement of governance for internationalization of emerging market firms. This study contributes to the literature of home country support for internationalization through an enrichment of the institutional framework and strategic choice with a political perspective.     

The internationalization of soft-services: entry modes and main determinants in the Spanish hotel industry

This article addresses the internationalization of soft-services. These types of services require major local presence than other industries as production and consumption occur simultaneously. In particular, the study attempts to analyze those factors that might influence the entry mode choice and reflect the specific nature of the hotel industry, which shows an important increase of their operations overseas in recent years. Based on a sample composed of more than 1,200 entry operations in the Spanish hotel industry, our results suggest that determinant factors of entry mode choice in manufacturing firms cannot be directly transferred to the internationalization of soft-services firms. Some variables which were generally analyzed as determinant factors of control decisions in the manufacturing sector are not significant or present different results in the hotel industry. Moreover, this study enhances knowledge on internationalization based on countries other than the most developed.     

A Measurement of Bank Efficiency,Ownership and Productivity Changes in Taiwan

German consulting engineering firms currently face great difficulties in competing in globalised markets. They are comparatively small. This article asks what the reasons for this situation are and whether there are options for political assistance to help the trade – perhaps Germany can learn from other countries – and describes the results of a benchmarking study which compares the situation of German firms with that of companies in the US, UK and France. The factors that may possibly be important for international competitiveness are analysed. The main result of the study is that the present weakness of German consulting engineering is caused by their lack of adaptation to the needs of the new globalised markets. German firms suffer now from the rather good and secure business opportunities which they have enjoyed during the phase of ‘Aufbau Ost’ in eastern Germany in the 1990s. They have somewhat missed the restructuring that became necessary. Hence, German consulting engineering has to do the bulk of restructuring itself in order to become competitive again.     

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.     

Partner Selection for International Marketing and Distribution in Corporate New Ventures

The software industry offers numerous options for a firm to arrange its international marketing activities. Although a prominent way to enter the international market is through co-operation, there is a limited amount of research regarding partner selection. The purpose of this paper is to explore how entrepreneurial corporate new ventures use partners in their international marketing. A representative case study is used to illustrate the partner selection and evaluation process in the software industry. Our findings indicate that small entrepreneurial firms can and should use partners in their internationalization. However, a more analytical approach to their selection is needed.     

Knowledge acquisition for the internationalization of the smaller firm: Content and sources

Internationalization process research emphasizes accumulated experience and networks as sources of knowledge for internationalization. Our understanding, however, as to what this knowledge is in practice for smaller firms, the challenges they face in acquiring it, and how they address those challenges is limited. Integrating organizational learning concepts with our theoretical understanding of the small firm internationalization process, we develop a new framework for understanding knowledge acquisition processes, which are examined with a case study of 10 Scottish internationalizing firms. We find smaller firms may not have relevant experience or useful networks, and rely on sources rarely recognised before. Firms used recruitment, government advisors and consultants to acquire indirect experience. Recruitment is a source of market and technological knowledge and government advisors and consultants a source of internationalization knowledge. Accessing internal information is important for firms that have internationalized. Our integrated theoretical framework identifies knowledge content and sources that are critical for internationalization, but that may be absent.     

The internationalization paradox: Untangling dependence in multinational state hybrids

We investigate the internationalization of firms with ownership links to the state from the perspective of resource dependence theory, and argue that internationalization can reduce dependence on the home country government, but, paradoxically, this strategy also creates additional dependences, shifts the power balance, and provides rationales for increasing government control. Utilizing a ‘critical’ case – Vale from Brazil – we analyze different conditions that enable greater autonomy for and greater government control over multinational state hybrids in the context of internationalization. We contribute to the international business literature by generating a novel framework that considers the effects of market trends (extractive industry) and non-market trends (home country policies) on the internationalization of state hybrids.     

Process and intensity of internationalization of IT firms – Evidence from India

This paper provides insights and evidence related to the process and intensity of internationalization of firms in the Information Technology (IT) sector, which is the driving force of high economic growth in the Indian sub-continent during the last two decades. Research objectives were set as (i) to examine the existence of born global firms in the IT sector, (ii) to identify the process of internationalization adopted by firms in the IT industry, (iii) to measure the intensity of internationalization of IT firms. The paper is based on data collected from annual financial reports of firms listed in the CNX IT Index of National Stock Exchange of India. Two clusters were extracted using hierarchical clustering method followed by k-means clustering to analyze the characteristics of the variables. We find that the firms in both clusters are true global firms with 66 and 85% of their income from foreign markets with a very high level of international intensity. Though the findings provide some evidence for the gradual internationalization of Indian IT firms; the empirical results indicate that firm age has no impact on internationalization. The results from our study also show that firms, especially in certain industries such as IT, do have access to information that reduces the risk aversion.     

Imitation and rapid internationalization of emerging market firms

By drawing upon imitation research, this study addresses the role peers play in rapid internationalization by emerging market firms (EMFs). We argue that imitation of industry peers’ international expansion accelerates EMFs’ internationalization speed through two mutually reinforcing mechanisms: information-based imitation, which legitimizes similar operations and conveys valuable information; and rivalry-based imitation, which exerts considerable competitive pressure. We find that industry peers’ international expansion is positively related to EMFs’ internationalization speed. Such positive effect is stronger when EMFs lack prior international experience and when industry competitive intensity is strong.     

The role of social networks and institutions in the internationalization of Russian entrepreneurial firms: Do they matter?

Drawing upon network theory and institutional theory, this paper examines the influence of networks on the internationalization of Russian entrepreneurial firms. Our case analysis suggests that within the context of the Russian environment, networks play a much less important role in the internationalization process than it is usually assumed in the literature. For the Russian entrepreneurial firms examined in our study, the most important factor in their internationalization was their engagement in honest business practices that established trust and commitment in their relationships with international business partners. This study underscores the importance of the institutional context of an entrepreneurial firm’s country.     

Determinants of Internationalization Strategies of Emerging Market Firms: A Multilevel Approach

Recently, debates about uniqueness of emerging market firms’ (EMFs) internationalization strategies were a focus of research. Yet, findings regarding their determinants are mixed, and conclusions on how EMFs’ internationalization strategies can be theoretically explained vary greatly. This article elaborates on the underlying reasons for these inconclusive results and addresses them by the development of a multilevel theoretical framework allowing for a better understanding of integrative influence of institutional, sector, and firm-specific determinants of EMFs’ internationalization strategies. This framework is validated by evidence from Russia, and a multiple case study approach is adopted to investigate the determinants of internationalization strategies of Russian firms.     

企业国际化研究新视角 ——战略控制力

本文针对现有企业国际化理论缺乏战略因素综合考虑的研究现状,从战略控制力的视角对企业国际化问题进行研究,剖析了企业国际化战略控制力的内涵与特征,并提出了国际化战略控制力五要素,指出国际化战略控制力是维持企业国际化持续发展和优胜地位的根源,同时对中国大企业国际化战略控制力的构建问题进行了有益探讨。     

Does internationalization make a difference? Stock market reaction to announcements of international top executive appointments

In recent years, there has been an increasing scholarly and practical interest in the internationalization of top management teams. It is argued that international firms need international top managers to meet the challenges arising from operating across borders. However, the few existing studies that focus on the link between top managers’ internationalization and firm performance yield inconclusive results. Thus, it is an open question if and to what extent international firms can benefit from international top managers. Drawing on upper-echelons theory, resource-dependence theory, and signaling theory, this paper examines how the stock market reacts to the appointment of an international top manager. Our empirical study of German firms employs an event study to analyze the direct impact of internationalization on a firm's stock price. Piecewise regression analysis reveals that a top manager's internationalization needs to exceed a certain threshold before investors incorporate this individual characteristic into their investment decisions. Furthermore, our analysis shows an inverted U-shaped relationship between internationalization and abnormal returns, suggesting that internationalization may have both positive and negative effects on a firm's stock price. We present several explanations for our empirical findings and discuss future research directions.