Use of the written contract in long-lasting business relationships

While contracts are signed in most business dealings, they are seldom used. These contracts are drawn up for different purposes: as a communication tool, to reduce uncertainty, or simply because it is customary. This study investigates how contracts are used in long-lasting business relationships and what factors influence the use of contracts. A number of studies claim that the negotiation process and the relationships developed during that process influence the subsequent use of contracts. In many cases, parties conduct business without contracts as they develop trust-based relationships. A conceptual framework is developed, which is then used to analyze three in-depth case studies. Findings show that the contract itself, rather than the negotiation process, has the greatest influence on how the contract is used.     

Understanding the impact of relational capital and organizational learning on alliance outcomes

This paper examines how relational capital influences the acquisition of knowledge among alliance partners. We propose that firms with higher levels of inter- and intrafirm learning are better able to achieve superior alliance outcomes. A conceptual framework is developed by integrating the relational view, organizational learning theory, and the resource-based view. We provide empirical evidence using large-sample data to test the model and find that trust and interaction creates a basis for knowledge acquisition across alliance partners. The results also indicate that when the firms are active in knowledge acquisition from alliance partners and dissemination of such knowledge within the organization, they are capable of enhancing satisfaction with the alliance relationship.     

International Business Negotiations A Turn-Key Project

The article describes and analyses the negotiation process between a Swedish supplier and an African customer. Although the literature on international business negotiations is very poor, it is reviewed; a model for international business negotiations is developed and then utilised to describe and analyse a case-study. The factors influencing the negotiation process are identified and conclusions are drawn; the process took a very long time, more than two years, and a number of unexpected issues caused interference in the process. The differences in cultural background and the atmosphere between the parties strongly affected their chances of reaching a mutually satisfactory agreement.     

The Impact of Market Orientation on the Internationalization of Retailing Firms: Tesco in Eastern Europe

This paper investigates a Western retailer's market orientation levels in two emerging markets. We examine whether the market orientation-company performance link holds true for retailers in emerging economies, despite environmental differences. By using concepts from key studies we have assimilated a fully representative model - applied through interviews with top management from Tesco and its subsidiaries and affiliates in Hungary and Slovenia. Using this example, we find that the market orientation-business performance link is valid for Western retailers in emerging economies. Here, the retailer applied market orientation predominately through; the use of matching with suppliers of own brand goods; top management emphasis on market orientation and risk taking. Intelligence generation and dissemination was exercised via global processes such as brand review.     

The Impact of Foreign Direct Investments (FDIs) from Market Economies to Centrally Planned Countries

Despite the recent economic slump and subsequent reductions and fluctuations of investment ­activities undertaken by multinational enterprises (MNEs) in host markets, the overall volume of foreign direct investment (FDI) has significantly grown over the past three decades. The major proportion of the FDI flows from market economies to centrally planned countries, with the latter currently receiving huge amounts of inward FDI from the West. A representative example of this flow is China. China is often referred to as the factory of the world and/or the black hole of inward FDI. © 2016 Wiley Periodicals, Inc.     

Demand supply network opportunity development processes in emerging markets: Positioning for strategy realization in Russia

This paper aims to shed light on the management of supply chains, or rather, demand supply networks (DSN) in emerging markets by foreign companies. According to our definition, specific DSN opportunity development processes are directed towards better functionality and coordination of product, finance and information flows across the DSN. As a consequence, improved performance of the DSN may be achieved, in order to support and realize competitive business strategy and facilitate value creation for customers. To illustrate the concepts and the model, empirical evidence is presented that establishes the role of changing network structures and incumbent capabilities as constraints for DSN opportunity capture, especially in emerging markets. Our results show that DSN positioning strategies designed to overcome these constraints and facilitate opportunity capture, must be proactive, well-timed and innovative.     

Improving China’s food and environmental security with conservation agriculture†

China has achieved impressive increases in agricultural output in recent decades. Yet, past approaches centred on a growing use of fertilizers, pesticides, fuel and water are not likely to achieve the required 30–50% additional increases in food production by mid-century. We show that efficiencies of production are falling and the costs of environmental harm are increasing. Agricultural innovations that improve natural capital are urgently needed. Conservation agriculture (CA) is now practised on >8?Mha in China and is offering promising prospects of both enhanced yields and environmental services. Our meta-analysis of 60 papers with 395 observations in China shows notable benefits from CA. Mean yield increase was 4.5% or 263?kg?ha^?1 for wheat, 8.3% or 424?kg?ha^?1 for maize, and 1.65% or 250?kg?ha^?1 for rice. In 34 datasets from 22 published papers (experimental duration: 2–17 years), 26 datasets (76.5%) show that CA increased yield and soil organic carbon (mean SOC increase of >3?g.kg^?1 in 0–10?cm soil depth) when compared with traditional tillage. Key priorities for the spread of more sustainable forms of agriculture in China are national policy and financial support, better coordination across agencies, and better extension for farmers.     

Merger and acquisition motives and outcome assessment

Research on merger and acquisition (M&A) outcome often focuses on tangible financial results and the reaction of stock markets. This research attempts to provide a more accurate assessment of M&A performance by linking tangible as well as intangible M&A motives to outcome assessment. The theoretical framework is based on evaluation theory. We analyze four case studies of international M&As conducted by European companies. The findings indicate that M&A outcome can be more accurately measured by aligning it with the motives defined by the acquiring firms. They suggest that M&A outcome assessment should be considered as a process covering both premerger and postmerger stages.     

Network view of MNCs' socio-political behavior

While business networks and relationships in international and industrial marketing studies are explored extensively, relationships between firms and socio-political actors are rarely been studied. This paper addresses this gap and examines how MNCs manage their relationship with socio-political organizations. The study builds from the proposition that business firms, besides their actions in business market, have to manage their socio-political market. The study aims to develop a theoretical view that is based in business networks and contains the three concepts of legitimacy, commitment and trust. The proposition is that business firms behave proactively towards the actors in the socio-political environment which is related to their business goals. The three conceptual elements will enable us to understand more deeply the varieties in the firms' managerial behavior. Two cases test the concept in the model — those of Daewoo Motor Company (a South Korean MNC) and the Swedish MNC, Vattenfall. The study will contribute towards deeper understanding of socio-political market and how firms manage their socio-political relationships. The conclusions describe the theoretical and managerial implications.     

The creation view of opportunities at the base of the pyramid

This research aims to understand how multinational corporations (MNCs) enter the base of the pyramid (BoP) by adopting the creation view of opportunities. We employ actor–network theory and explore the key actors, the process and the opportunity development that enable MNCs to tackle the relative poverty of the BoP market. Our qualitative exploratory case study illustrates that, at the BoP, MNCs have to involve beneficiary stakeholders such as non-governmental organizations and BoP communities. In this process, they should be open to modifying their business model continuously to build awareness about the product among the poor and ensure affordability, availability and acceptability. At the BoP, opportunities do not exist in the external environment and they should be developed by identifying and addressing the real needs of the poor, enhancing their quality of life and being patient about earning a profit. This research contributes to the entrepreneurship literature by expanding the creation perspective of opportunities and provides implications for the managers of companies targeting the BoP market.