Home-owned versus foreign-owned firms in the UK automotive industry: Exploring the microfoundations of ambidextrous production and supply chain positioning

The UK automotive industry is home to a large number of foreign firms, demonstrating the open nature of competition. However, the industry necessitates both exploitative and explorative capabilities. Contingency theory suggests that firms align their internal structure with contextual factors. As such, the aims of this study were to investigate whether it was possible to distinguish home-owned (UK) and foreign-owned firms based upon: a) the microfoundations of ambidextrous production, which are conceptualised as lean and agile routines; and b) the tier at which these firms operate in the automotive supply chain. Survey data were collected from 85 home-owned and 55 foreign-owned firms within the UK Midlands automotive industry. Logistic regression results revealed that home-owned firms were significantly more likely to be implementing explorative (agile) production methods, whereas foreign-owned firms were significantly more likely to be implementing exploitative (lean) production. Home-owned and foreign-owned firms were found to be significantly more likely to be operating upstream and downstream in the automotive supply chain respectively. Thus, the findings support a contingency theory explanation, suggesting that firms align their performance priorities with contextual factors, but we argue that home-owned and foreign-owned firms have evolved to compete based on their different innovative capabilities, which are located at different tiers of the automotive supply chain. On this basis, although neither home-owned nor foreign-owned firms were found to be endogenously ambidextrous, we argue that foreign-owned firms internationalise into the UK automotive sector to exploit the explorative capabilities acquired by home-owned firms operating upstream in automotive supply chains, thus enabling ambidextrous capabilities at an exogenous, industrial level.     

Internalization theory and the performance of emerging-market multinational enterprises

Constrained by their peripheral position in the global factory system and underdeveloped institutions at home, emerging-market multinational enterprises (MNEs) are likely to achieve monopoly-based, rather than knowledge-based, financial gains from internationalization conditional on R&D. Emerging market MNEs need to engage in R&D to upgrade orchestration know-how within the global factory. This needs to be accompanied by the development of home-based enabling institutions. This article develops the argument based on internalization theory, and tests hypotheses against the experience of major emerging-market MNEs from 2004 to 2011.     

Implementing control mutuality using prediction markets: a new mechanism for risk communication

In this article prediction markets are presented as an innovative technology that can facilitate effective risk communication. The application of prediction markets in this context is an opportunity to reconcile the disparate approaches currently discussed in the risk communication literature. We demonstrate that control mutuality is uniquely achieved through the use of the prediction market mechanism and it is thus an innovative and in some cases optimal technology for use in risk communication in both public and private sector organisations.     

Teaching the Concept of Risk: Blended Learning Using a Custom-Built Prediction Market

There has been much research into the role of technology in promoting student engagement and learning activity in third-level education. This article documents an innovative application of technology in a large, undergraduate business class in risk management. The students' learning outcomes are reinforced by activity in a custom-designed prediction market. The content of lectures are closely aligned to the student objectives within the prediction market, thus allowing the application of risk management practice while building knowledge through traditional delivery methods.     

The creation and diffusion of international business research

“W(h)ither U.S. Hegemony in International Business Research?” by Grigorios Livanis and Michael Geringer, is an excellent effort to encompass the growth of international business (IB) scholarly research worldwide. This commentary examines the implicit assumptions and models of their analysis, showing that IB models are useful in explaining the scholarly growth of IB.     

A Constructivist Approach to Business Ethics

A recurrent challenge in applied ethics concerns the development of principles that are both suitably general to cover various cases and sufficiently exact to guide behavior in particular instances. In business ethics, two central approaches—stockholder and stakeholder—often fail by one or the other requirement. The author argues that the failure is precipitated by their reliance upon “universal” theory, which views the justification of principles as both independent of their context of application and universally appropriate to all contexts. The author develops a contextual interpretation of “constructivism” as an alternative approach, and argues that this alternative meets the above challenge.     

Marketing and the multinational: extending internalisation theory

Introducing marketing explicitly into the internalisation theory of the multinational enterprise considerably extends the power of the theory. In particular, it enables a comparison of marketing-led and technology-led multinationals and highlights the benefits of collaboration between them. It facilitates the analysis of outsourcing, and in particular of R&D. It highlights the importance to marketing-led firms of owning product rather than facilities. The analysis addresses key issues relating to “hollow firms”, “flagship firms” and the “global factory”.     

Pay to Play in Parks: An Australian Policy Perspective on Visitor Fees in Public Protected Areas

Many public protected areas worldwide charge fees for entrance, overnight camping, and commercial tour permits. These visitor or user fees raise revenue and may also influence visitor behaviour. Many protected areas are forced to charge fees because government funding is inadequate for conservation and visitor management in the face of rapidly rising visitor numbers and demands. Acceptance and effects of fees, however, depend on the historical, political, legal, economic and social context. Two issues are particularly significant: (a) equity between various social groups; and (b) control and use of funds raised.