How psychic distance and opportunity perceptions affect entrepreneurial firm internationalization

Psychic distance, now established as an individual perceptual construct, is so far a partial explanation of internationalization processes of entrepreneurial firms. Opportunity in foreign markets, although considered important, has hitherto been an assumption rather than explored as an explanatory factor in internationalization theories. Through qualitative data from technology entrepreneurs from New Zealand this study considers opportunity, like psychic distance, as an individual perceptual construct and posits that a combination of opportunity and psychic distance perceptions better explains entrepreneurial internationalization action/intention decisions. The explicit combination proposed is “opportunity‐distance quotient” and signifies a shift from psychic distance obstacles based explanations to an opportunity‐psychic distance interaction based exploration of entrepreneurial internationalization. Limitations of the study and further research are discussed. Copyright © 2018 ASAC. Published by John Wiley & Sons, Ltd.     

Contextualizing international strategy by emerging market firms: A composition-based approach

We present a composition-based logic toward international expansion by emerging market firms (EMFs) – firms that use compositional investment, compositional competition, and compositional collaboration to create a unique competitive advantage in global competition. This view explains how EMFs creatively adopt a composition-based international strategy, enabling them to compensate for their weaknesses while capitalizing on their strengths during global competition where they offer a competitive price-value ratio suited to mass global customers who are cost sensitive. We also explicated the working conditions (i.e., strategic resource-seeking motivation, subsidiary autonomy delegation, and cross-border sharing system) that fortify the outcome of composition. Using survey data from 201 EMFs, our analysis supports these key arguments. A composition-based lens provides a new understanding of why and how emerging market businesses can survive in international competition for some period of time without possessing traditionally defined monopolistic advantages.     

Global networks as a mode of balance for exploratory innovations in a late liberalizing economy

This article suggests that under weak institutional arrangements, adverse economic conditions, and institutional voids in a late liberalizing economy, local firms that are part of the global value chains of multinational enterprises develop international networks as a balancing strategy to engage in exploratory innovations. We argue that local firms do so in order to counter the negative influences of local institutions on exploratory innovations. Using exploratory in-depth qualitative analysis, we study the suppliers of motorcycle parts in Pakistan that are working with leading Japanese and Chinese motorcycle assemblers. The results suggest that in adverse economic situations local institutional factors can sustain only the development of exploitative innovations. As a balancing strategy, motorcycle part suppliers develop international networks with global Tier 1 suppliers, international trade fairs, and international institutions. This strategy helps circumvent the negative influence of home institutional factors on developing exploratory innovations. Our study highlights the importance of global networks as a balancing strategy for creating exploratory innovations by firms in a late liberalizing economy.     

Do International Cocurricular Activities Have an Impact on Cultivating a Global Mindset in Business School Students?

ABSTRACT

In today’s integrated global economy, business executives of multinational corporations are required to have a flexible global mindset in order to cope with the driving forces of globalization. Thus, the global market forces stress the importance for business schools to graduate students with skill sets pertinent to functioning competitively in the ever-changing business environment. In this article, we conducted a survey of 165 students in the Albers School of Business and Economics at Seattle University to examine whether international cocurricular activities help achieve the goal of cultivating a global mindset in students. The results suggest that international cocurricular activities enhance students’ global mindset. Short-term study tours and international internships do have a significant impact on students’ global mindset as other long-term cocurricular activities, which may cost more time and money. We recommend that short-term study tours be used as an alternative cost-effective way to engaging business students in the internationalization of the business curriculum at their institutions.     

The impact of long-term secured loans on exports at the firm-level: The case of a developing country

We analyze the role of the accumulation of long-term secured loans on the participation of firms in exporting activities. Internal sources of finance, such as cash balance and its equivalent as well as operating cash flow, may alleviate concerns on liquidity shocks and finance shorter-term variable costs but long-term secured loans are likely to be required to finance fixed costs related to investments in plant, machinery and other fixed assets that complement exporting activities. Exporting activities may involve hysteresis such that the likelihood of a firm to participate in exporting activities is influenced by the accumulation of long-term secured loans in the period prior to the export transactions. Even though the availability of internal sources of finance and the capital structure of a firm has greater economic significance, we observe that lagged long-term secured loans influences participation in exporting activities. Furthermore, we analyze the impact of one-year lagged long-term secured loans on the participation of firms in exporting activities based on the financial characteristics at the industry-level. This relationship holds for firms within industries with higher levels of long-term secured loans, higher levels of finance leverage, higher levels of asset tangibility and lower levels of total assets.     

Managing distance in international purchasing and supply: a systematic review of literature from the resource-based view perspective

The aim of this research is to find out how the extant literature on international purchasing and supply management (PSM) covers the elements of capability from the perspective of distance. A priori, we form a framework of capability driving elements and conclude that distance—in its multiple dimensions—is the fundamental management aspect in international PSM. Equipped with analytical frameworks and a bottom–up process for identifying emergent themes, a systematic literature review was conducted on a representative sample of scholarly literature on international PSM, using the NVivo analysis software and a data display as tools. We identify several capability relevant themes from the literature, and provide a distance-based a posteriori conceptualisation of international PSM, founded in the information processing theory, with the source-user, user-user and source-source distance types driving the information processing requirements, and loading avoidance, policy-based and enhancement mechanisms determining the information processing capacity.     

基于产业集群升级的区域国际品牌战略探究

产业集群是发达地区经济发展的重要特质,而制约我国产业集群发展的主要瓶颈是处于国际产业分工的底端和价值链的低端,创建区域国际品牌则有利于提升企业竞争力、促进产业集群升级。标准化工作和工程技术中心是构建区域国际品牌的两大关键。在区域国际品牌创建的过程中,政府应发挥策划者和推动者的作用,行业协会应发挥主导作用。     

对国际贸易中补贴与反补贴措施的法律经济学解析

补贴与反补贴措施是WTO协定中规定的促进与保护国际贸易的合法措施.补贴问题在国际贸易纠纷中有时并非单纯的法律问题而受到政治因素和两国贸易关系的影响,以此为基础.通过对补贴和反补贴措施进行经济学分析和法学分析,并结合国际贸易政策和理论的历史发展对补贴问题进行研究.认为补贴与反补贴问题的本质是自由贸易理论与贸易保护主义理论的双重产物.正确认识补贴与反补贴问题的本质是正确适用补贴与反补贴措施,促进国际贸易、保护国内产业的有力的理论保障.     

Architecture of Supra-Governmental International Financial Regulation

Supra-governmental regulatory institutions (SNRs) resemble bridges that span gaps in the jurisdiction of individual–country regulators. The most important bridges address cross-country problems of crisis management and development finance not just as forums but as portfolio lenders as well.At portfolio SNRs, traditional cash-flow accounting supports incentives to overlend to countries undergoing crisis and to direct insufficient development funds to the world's neediest countries. Better performance requires not so much a structural streamlining of SNR missions as a realignment of the bureaucratic incentive systems under which SNR managers function. To accomplish this, reformers must focus on identifying economically meaningful indexes of SNR achievement and experimenting with programs that link deferred managerial compensation at SNRs to sustained long-period movements in the selected indexes.     

国际垂直一体化与外包化相互转化的理论研究——基于不完全合同下谈判成本的视角

二战以来,国际经济分工越来越深化与细化,跨国公司成为国际贸易与国际投资等经济活动的主体,垂直专业化的国际生产分工替代了传统的产品垂直贸易,大型跨国制造业与服务业活动同时具有垂直一体化和外包化趋势。本文首先回顾了跨国公司垂直一体化生产与外包化生产的相关研究,然后对内部一体化生产与外包化生产的机理进行理论分析,之后基于跨国公司与外包企业非完全契约的视角,构建了谈判成本外生化的模型,分析了中间投入品内部垂直一体化与外包化生产相互转化的条件。研究结果显示,中间投入品生产模式的选择取决于跨国公司A对最终产品X合作生产时的利润非依存度γa,外包生产企业B对最终产品X合作生产时的利润非依存度γb以及和内部一体化生产时其内部管理成本与谈判成本对最终产品X合作生产时利润的依存度γc。

Abstract：

The international division has been more and more deep after world warⅡ,the MNCs has been the main bodies of international economics,the traditional vertical trade has been substituted by international vertical integration production and there is a trend of vertical integration and outsourcing.This paper reviewed the relative results about thisissue,and then analysis the production models of integration and outsourcing,formulate a model which includes the negotiation cost,these studies show that,the choose of production model of medium input was decided by γa,γb,and γc.