Different roots, intertwined branches: linking International Business and Economic Geography through the Uppsala Model and Global Production Network

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Renan Oliveira ◽  
Ariane Roder Figueira ◽  
Bernardo Silva-Rêgo
Keyword(s):  
International Business ◽  
Economic Geography ◽  
Multinational Enterprises ◽  
Business Environment ◽  
Production Network ◽  
Content Type ◽  
Uppsala Model ◽  
Strategic Role ◽  
Manchester School ◽  
Global Production Network

PurposeThe aim of this study is to propose a link between international business (IB) and economic geography, which are two streams of thought that have developed without one acknowledging the other. We use the Uppsala model and the Global Production Network as pillars to sustain this link. We expect that this research triggers a collaboration with allied social sciences in important debates surrounding the business-societal interface.Design/methodology/approachWe selected papers produced by Johanson and Vahlne to understand the development of the Uppsala model over 40 years. The same was done with the Global Production Network, where we scrutinized the work of Henderson, Coe, Dicken, Hess and Yeung – scholars from the Manchester School of Geography – in the last twenty years. Based on Humphrey et al. (2019), we applied an inductive and inferential approach to uncover similarities and differences between the Uppsala model and Global Production Network.FindingsThe Uppsala model reinforces the strategic role of network position in the internationalization process, while the Global Production Network aims to explain how the governance of global firms scattered world-wide affects the development and upgrading opportunities of the various regions and firms involved. Despite these clear differences, the geographical nature of IB and shared similarities accounting the network as a channel to foster and provide access to important resources and practices regarding management, coordination and governance of dispersed parts of multinational enterprises give room to using these two theories as pillars to link IB and economic geography.Originality/valueWhile attempts to link IB and economic geography are not new, none of these studies have focused on the Uppsala model and Global Production Network as pillars to create a link. We foresee an intense cross collaboration and an even possible renaissance of IB and economic geography to target the ever-changing business environment and its impact on social and economic development.

Crisis or opportunity: Marks and Spencer’s tryst with Indian retail

2020 ◽  
Vol 16 (6) ◽  
pp. 671-690
Author(s):  
Arunima Rana ◽  
Ravi Shankar
Keyword(s):  
Decision Making ◽  
International Business ◽  
Brand Management ◽  
Secondary Data ◽  
Business Environment ◽  
Special Focus ◽  
Retail Sector ◽  
Content Type ◽  
Competitor Analysis ◽  
Fashion Retail

Research methodology The case is written using secondary data sources (namely, research documents, press information, journal articles and published interviews). Publicly declared company information has further been leveraged to augment case facts. All information sources have been duly acknowledged in the reference section. Case overview/synopsis The case is written in the backdrop of COVID-19 pandemic and its effect on the Indian retail industry, revolving around scenarios in which a multinational retailer has to decide on its long- and short-term strategy in such an economic crisis. The case story has been developed around Marks and Spencer’s retail venture in the Indian market. With the COVID-19 pandemic impacting business at various levels, with countries moving to lock down and economies shrinking to recessionary levels, one of the worst affected sectors is retail. The teaching case builds upon Mark and Spencer’s initial decision of not entering and extending its food/grocery business in India. While it remained a dominant player in Indian fashion retail for almost two decades, it needs to re-think its decision of entering food retail owing to a pandemic situation affecting its offline sales/store footfall and increasing competition from global fashion brands such as Zara and H&M that had flooded the Indian fashion retail sector. The case provides a context for students to perform environmental factor and competitor analysis for a sector, with special focus on decision making in a changing crisis scenario. Complexity academic level This case could be used in undergraduate and MBA classroom programme, across subjects such as retail management, marketing management, international business, international business environment and strategic business management. This case fits while discussing topics such as business environmental factors, competitor analysis, decision-making under crisis, market entry decision, omnichannel retail strategy, consumer behaviour and brand management.

Knowledge acquisition via internet-enabled platforms

2019 ◽  
Vol 36 (1) ◽  
pp. 74-107 ◽  
Author(s):  
Charmaine Glavas ◽  
Shane Mathews ◽  
Rebekah Russell-Bennett
Keyword(s):  
Knowledge Acquisition ◽  
International Business ◽  
Evidence Base ◽  
Business Environment ◽  
Case Study Methodology ◽  
Content Type ◽  
Multiple Case ◽  
Study Methodology ◽  
Flow Of Information

Purpose Technology has profoundly transformed the international business environment, particularly regarding the flow of information and the way in which knowledge is acquired and shared. Yet, the extent of this transformation is still underappreciated. The purpose of this paper is to examine how small and medium-sized enterprise (SME) owner/founders acquire and utilize knowledge for internationalization via internet-enabled platforms. Design/methodology/approach The empirical analysis draws on multiple case study methodology to examine 13 Australian SME owner/founders and the knowledge they acquire from utilization of internet-enabled platforms. Findings The analysis reveals four differing types of internet-enabled experiences: “technical internet-enabled experiences,” “operational internet-enabled experiences,” “functional internet-enabled experiences,” and “immersive internet-enabled experiences.” The findings indicate that internet-enabled experiences can generate both explicit and tacit forms of knowledge for the pre, early and later phases of internationalization. Practical implications The findings provide a structured approach by allowing SMEs to “plot” themselves against the classification of internet-enabled experiences to denote their level of technological involvement, and for discerning the types of knowledge that can be acquired. The findings are particularly helpful for owner/founders, highlighting that internet-enabled platforms are affecting the ways in which knowledge can be acquired and applied to international businesses processes. Originality/value The findings extend the conventional notion of knowledge acquisition for international business by highlighting how information and knowledge can be acquired via internet-enabled platforms. The findings lay the necessary groundwork for building an evidence base and theoretically extending the concept of knowledge acquisition via internet-enabled platforms.

Conceptualizing trust with cultural perspective in international business operations

2017 ◽  
Vol 24 (4) ◽  
pp. 1099-1118 ◽  
Author(s):  
Mian Ajmal ◽  
Petri Helo ◽  
Rassel Kassem
Keyword(s):  
International Business ◽  
Business Environment ◽  
Trust Building ◽  
Systematic Research ◽  
Cultural Issues ◽  
Cultural Perspective ◽  
Global Business ◽  
Content Type ◽  
Business Environments ◽  
Building Process

Purpose The growing international landscape of business has underlined the significance of multiculturalism and the novel challenges it brings to business implementation. The purpose of this paper is to draw attention of the readers toward how trust can be conceptualized and how trust-building process is affected in global business environments where more and more projects and businesses come into operation. Design/methodology/approach This research employs intensive literature review to conceptualize trust and develop a model of culture effects for trust building in global business environment. However, this study is presently explanatory in nature because no empirical evidence is provided. Findings Culture is a significant factor in building trust among global project stakeholders for the reason that trust is vital for developing a well-functioning long-term business relationship. The study highlighted that cultural differences among project teams can cause conflict, misunderstanding, and poor project performance. Research limitations/implications Future empirical research should investigate various scenarios, types of projects, cultures, and countries. Cultural issues are pretty sensitive, which have immediate association with trust-building process among international project stakeholders. Diminutive systematic research has been done on the cultural effects for trust building in international business context. The probe of how culture affects trust building efforts in global business environments remains unrequited. Originality/value This study adds value by creating awareness in the research community for undertaking a detailed and comprehensive research on this topic, and because of its originality, it serves as a foundation for future studies.

An organismic approach to multinational enterprise failure

2019 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jeong-Yang Park ◽  
Yong Kyu Lew ◽  
Byung Il Park
Keyword(s):  
International Business ◽  
Delphi Technique ◽  
Multinational Enterprises ◽  
Design Methodology ◽  
Multinational Enterprise ◽  
Institutional Pressures ◽  
Content Type ◽  
Institutional Legitimacy ◽  
Foreign Divestment ◽  
Market Strategies

Purpose The purpose of this paper is to answer why some multinational enterprises (MNEs) fail within the international business (IB) domain. Design/methodology/approach Conceptually, the study takes an organismic approach to MNE failure. Methodologically, it adopts an elite interview approach derived from the Delphi technique. Respondents are 39 IB and strategic management academics. Findings The paper finds that MNE failure is rooted in strategic leadership and capabilities (i.e. internal deterioration of organizational resources and strategies) and institutional pressures and differences, and these factors lead to deterioration of institutional legitimacy for an MNE. Originality/value The paper conducts a review of the firm failure and foreign divestment literature and undertakes an organismic approach to the analysis of MNE failure in the IB context. The paper provides useful insights on developing and implementing both market and non-market strategies for overcoming MNE internationalization failure.

scholarly journals Succeeding in international competition by making use of home-country institutions

2016 ◽  
Vol 12 (1) ◽  
pp. 83-99 ◽  
Author(s):  
Eli Moen
Keyword(s):  
International Business ◽  
Home Country ◽  
Low Cost ◽  
Industrial Relations ◽  
Business Environment ◽  
Content Type ◽  
Successful Case ◽  
Low Cost Carrier ◽  
Present Case Study

Purpose – This paper aims to addresses the question how a low-cost carrier (LCC) embedded in a coordinated market economy is succeeding in a highly competitive industry with a strong cost focus. Design/methodology/approach – This paper reports the results of a case study of a LCC (Norwegian Air Shuttle). The case study draws on both organizational and institutional theory as to how the international business environment and the national institutional framework continuously impact on its strategies. Findings – It is found that home-country high wage levels and strong labour regulation have been overcome by developing firm-specific capabilities based on active employee involvement which aligns with the tradition of the national system of industrial relations. Research limitations/implications – The present case study provides an input for further research on how actors deal with conflicting pressures. It supports the varieties of capitalism (VOC) argument that national institutional arrangements influence firms and actors’ strategies and practices, but it also supports the call within institutional theories for a more malleable conceptualizing of the link between actors and institutions than is the case in the VOC models. Originality/value – The paper provides an account of a successful case in a highly competitive international business despite disadvantages linked with home-country institutions.

scholarly journals Can blockchain-technology fight corruption in MNEs’ operations in emerging markets?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Matthew Davis ◽  
Thomas Taro Lennerfors ◽  
Daniel Tolstoy
Keyword(s):  
Emerging Markets ◽  
International Business ◽  
Multinational Enterprises ◽  
Design Methodology ◽  
International Management ◽  
Social Implications ◽  
Content Type ◽  
Blockchain Technology ◽  
Business Operations ◽  
Technological Perspective

Purpose The purpose of the study is to explore, with anchorage in theories about the normalization of corruption, under what conditions blockchain technology can mitigate corruptive practices of multinational enterprises (MNEs) in emerging markets (EMs). Design/methodology/approach By synthesizing a technological perspective and theory on corruption, the authors examine the feasibility of blockchain for fighting corruption in MNEs’ business operations in EMs. Findings Blockchain technology is theorized to have varying mitigating effects on the rationalization, socialization and institutionalization of corruption. The authors provide propositions describing the effects and the limitations of blockchain for mitigating corruption in EMs. Social implications This paper offers a perspective for how to tackle acute business problems and social problems pronounced in international business but also prevailing elsewhere. Originality/value The study contributes to literature in international management by systematically exploring how and under what conditions blockchain can mitigate the normalization of corruption.

Improving predictions of international business environments: China as a case in point

foresight ◽  
2018 ◽  
Vol 20 (6) ◽  
pp. 622-634
Author(s):  
Marina Yue Zhang
Keyword(s):  
International Business ◽  
Global Financial Crisis ◽  
Business Environment ◽  
Delphi Panel ◽  
Strategic Decisions ◽  
Content Type ◽  
Business Environments ◽  
Chinese Business ◽  
The One

Purpose Firms engaged in international business necessarily make predictions about the business environments in which they operate or seek to enter, on the basis of which they make a number of strategic decisions. The purpose of this paper is to consider the difficulties there are in making accurate predictions and how the process might be improved. Design/methodology/approach The paper examines predictions made in 2007 by ‘China experts’ about what the Chinese business environment would look like in 2017. Their predictions were accurate in respect of around two-thirds of the issues they were asked to consider. This paper focuses on the one-third of issues about which they were wide of the mark and examine the likely reasons. Findings The predictions of the 2007 study were accurate in respect of around two-thirds of the issues the China experts on the Delphi panel were asked to consider. The reason that they were wide of the mark on about one-third of issues could be attributed to two main factors: the 2008/2009 Global Financial Crisis and the appointment in 2013 of Xi Jinping as the President of China. These events precipitated changes in direction in the Chinese business environment that had not been (and could not have been) anticipated by the Delphi panel. Originality/value Very few Delphi studies have been subject to a follow-up examination of the accuracy of their predictions. This paper contributes a discussion the various methodologies that firms can use to improve their forecasts of international business environments.

Modern slavery and international business scholarship: the governance nexus

2019 ◽  
Vol 15 (2/3) ◽  
pp. 139-157 ◽  
Author(s):  
Brent Burmester ◽  
Snejina Michailova ◽  
Christina Stringer
Keyword(s):  
International Business ◽  
Multinational Enterprises ◽  
Governance System ◽  
Content Type ◽  
Modern Slavery ◽  
Strong Position ◽  
Multi Level ◽  
Primary Unit ◽  
Regulatory Challenge

Purpose Modern slavery is a problem that international business (IB) research can no longer ignore. Multinational enterprises (MNEs) are often contributors to the persistence of modern slavery, by virtue of the regulatory challenge they pose to states and their insufficient oversight of supply chains. The purpose of this paper is to show that governance inadequacies with respect to modern slavery will be lessened if IB scholars give more attention to MNEs’ governing role within and beyond global value chains. Design/methodology/approach A set of arguments is presented in support of intensified effort in IB research with respect to studying the role of MNEs in transnational labour governance. The paper draws inspiration from IB theory and the conceptualisation of the MNE in neighbouring disciplines that regard it as a bearer of duties toward labour, consistent with its role in multilevel governance. Insights from the literature on global and multi-level governance are utilised. Findings The paper construes modern slavery as a multi-level governance challenge and argues that MNE capabilities and responsibilities with respect to labour governance and the deterrence of slavery exceed those identified on the margins of IB literature. MNEs are underappreciated as governors within the multilevel transnational labour governance system. The IB discipline is in a strong position to develop our understanding of the MNE’s different roles in governance and thereby contribute to the reduced incidence of modern slavery. Originality/value This paper represents an attempt to mobilise the IB academy to help eliminate slavery from workplaces that rely on MNE patronage or where labour rights abuses are made possible by MNE diversion of governance resources. It places particular emphasis on the use and abuse of MNEs’ governance capabilities in the sphere of international relations and calls attention to over-simplification of the MNE, IB’s primary unit of analysis.

scholarly journals Sense, seize, reconfigure: online communities as strategic assets

2017 ◽  
Vol 38 (5) ◽  
pp. 27-34 ◽  
Author(s):  
David Wagner ◽  
Matthias Wenzel ◽  
Heinz-Theo Wagner ◽  
Jochen Koch
Keyword(s):  
Empirical Evidence ◽  
Online Communities ◽  
Design Methodology ◽  
Dynamic Capabilities ◽  
Business Environment ◽  
Content Type ◽  
Strategic Assets ◽  
Strategic Role ◽  
Digital Strategy ◽  
Practical Implications

Purpose The purpose of this paper is to explore and illustrate how organizations may use online communities strategically to adapt to a changing business environment, specifically from a dynamic capabilities perspective. Design/methodology/approach The paper presents empirical evidence from three cases. Findings Online communities may help organizations to adapt to a changing business environment by allowing them to sense opportunities and threats, seize opportunities and reconfigure organizational assets. Research limitations/implications The paper contributes to both the strategy and the information systems literatures by providing empirical insights into the strategic use of online communities. Practical implications The results of the paper are relevant for managers, helping them to understand the strategic role online communities (may) play and illustrating ways to use them accordingly. Originality/value The paper addresses a previously defined gap in the literature and provides novel empirical evidence. As online communities become integral parts of digital strategy and open innovation initiatives, the paper is both timely and relevant.

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