The Importance of Digital Transformation in International Business

This study was developed under the scope of a Portuguese project focused on the entrepreneur’s perspective and perception on the internationalization process of his company: more specifically, about the factors that enhanced the company entry into foreign markets as well as the constraints found in this process. This work focuses on the importance of using digital transformation to integrate technological tools in international business practice and strategy and the obstacles encountered with introducing these new technologies. This study aims to determine the relationships between technology categories and obstacles. The final goal is to assess the impact of these characteristics of the companies by the sector of economic activity, size, and percentage of profits resulting from international expansion. A questionnaire was designed and sent by email to 8183 companies from the AICEP database, distributed by three main activity sectors. A total of 310 valid answers were gathered from the Portuguese internationalized companies. The research limitations are related to the reduced number of interviews. These interviews showed that managers were not aware of the concept of digital transformation and misunderstood the use of digital technologies in the internationalization process of the business. This limitation can add some bias to the qualitative results. In addition to these limitations, the number of responses per sector was also not homogeneous. The practical implications of this study are that managers and top-level executives can use that to better understand how companies could use digital tools and what obstacles they should avoid when they want to internationalize their business. This paper is one of the first research contributions to analyze the impact of digital transformation in the internalization of Portuguese companies.

Impact of organizational dynamic capability on international expansion and the moderating role of environmental dynamism

Purpose The purpose of this study is to examine the impact of dynamic capability (DC) of organizations on international expansion and further investigate the moderating role of environmental dynamism in the same context. Design/methodology/approach Based on the dynamic capability view (DCV) theory and related literature on international business strategy, a theoretical model is developed. This model is subsequently validated with the structural equation modelling technique through a survey of 324 respondents from Indian organizations. The study also examines the moderating impacts using the multigroup analysis method. Findings The study finds that organizations’ sensing, seizing and transformational capabilities impact positively and significantly on international marketing capability, as well as on technological innovation capability, which positively and significantly impacts organizations’ international expansion ability. The study also finds that there is a significant moderating impact of environmental dynamism on organizations’ international expansion. Research limitations/implications This study has provided a unique theoretical model which can explain the factors impacting organizations’ ability toward international expansion. The study also provides vital insights and directions to practitioners, researchers and academicians on the international business strategy for the expansion of organizations. The theoretical model, however, cannot be generalized, as data was taken only from Indian firms. Originality/value The study adds to the body of knowledge of international business strategy, international marketing strategy and technological innovation, adding to the scant research on the relationship between organizations’ DC and the international expansion strategy through a unique and tested model with an explanative power of 73%.

Extending Uppsala Model with Springboard Perspective in Emerging Multinational’s Sequential Internationalisation—Evidence from a Construction Company’s Expansion in Africa

The Uppsala model explains the traditional internationalisation process of multinational enterprises (MNEs), which gradually begin to internationalise from countries with smaller psychic distances. However, in the turbulent global economy, an increasing number of MNEs from emerging markets (EMNEs) adopts a more radical and aggressive approach, strategically using international expansion as a springboard to enter an overseas market and radiate surrounding countries and regions. By combining the springboard perspective and the Uppsala model, we analyse a series of processes from EMNE’s first entry into an overseas market to the successful localisation and expansion of international business. This radical model of international expansion has not been thoroughly studied. This empirical study aims to address this research gap by using a qualitative method and an in-depth case study. This paper conducted a semi-structured interview with 16 expatriates, executives, and middle-level managers from the case company in 2016. As one of the few single case studies that systematically studies the internationalisation process of EMNEs and provides first-hand empirical evidence, it contributes to practice and provides a contextual reference for EMNEs.

Top Management Team Diversity and International Expansion: Spanish Companies in China

This study investigates the relationship between diversity in the Top Management Team (TMT) of Spanish firms and the firms’ willingness to further expand in China, as a proxy for their international success. Data from Spanish companies with direct investment in China were collected through a questionnaire. Regression analyses were carried out to test the differential influences of multiple forms of TMT demographic diversity (age, gender, tenure, and functional experience). The moderating effect of conflict in an uncertain environment is also examined, as this offers potentially novel insights into the determinants of success in emerging countries. Results show that the effects of TMT diversity on international success are very much influenced by the perception of the conflict related to investment in a non-traditional market. The findings highlight the relevant negative role that conflict can exert in diverse TMTs in a growing developing economy.

Bharat Forge: entrepreneurial leadership triumphs disruptive times

Theoretical basis There had been many pieces of research on international expansion approaches, and they continued to grow. However, research about the firms belonging to emerging nations and that went global were still in the early stages. It had been argued that most theories on international expansion had focused on explaining the internationalization of large firms, majorly originating in developed countries. This case study offers an intriguing reading about an Indian MNC, successfully entering the developed markets and competing thereof amidst tough and complex world. Moreover, the leaders like Baba Kalyani met the stiff challenge from complexities and disruption successfully through entrepreneurial mindset. The case study offers insights into “Creating Value Through Entrepreneurial Leadership Framework”. Research methodology The case study has been developed through secondary data sources. The published online resources, the firm's annual reports formed the basis of the research work. Author accessed online news articles, auto component industry experts' views and reports from global consultancy firms, and auto industry body such as SIAM (Society of Indian Automobile Manufacturers) reports helped the research. The views and interviews by promoters of the company are available online for deeper insights and analysis. Case overview/synopsis An Indian multinational, Bharat Forge Limited (BFL), was a shining example of achieving global manufacturing standards through perseverance and entrepreneurial leadership. For more than the past four decades, BFL faced complexities, uncertainties and disruptions multiple times, and every time, the business world saw a resurgent company, Bharat Forge. The company achieved growth through diversification, related and unrelated, acquisition, product innovation, portfolio expansion and expansion in domestic and global development. Competitive market, economic slowdown, innovation and technology disruption had not deterred BFL from growing into a worldwide auto component giant. BFL overcame all hurdles with grit and enterprise. It achieved a paradigm shift with over half the revenue from non-automotive sectors such as defence, electric vehicle components, e-mobility, power electronics and aluminium light-weighting. Complexity academic level This case is planned for MBA students, primarily in the second half of the course curriculum. It can be executed in marketing, strategic marketing and strategic management courses. The conceptual framework pertaining to corporate strategy, global expansion, diversification, product development, innovation, disruption, market development and entrepreneurial leadership can be taught through the case. The case is suitable for MBA executive students as well, in courses mentioned above in addition to courses such as strategic leadership.

Sustainable International Expansion via Cooperation Networks in the Manufacturing Industries

For the manufacturing industry in particular, networks lead to an increasing interaction between different actors representing a complementary response to insecurity arising from internationalization subjects. The aim of this study is to understand how cooperation networks contribute to the international sustainability of the manufacturing industry. To carry out this study, a qualitative methodology was chosen through semi-structured interviews with eight companies in the manufacturing sector from different areas. The interviews were handled with NVIVO software support. Regarding the findings, it is unanimous that cooperation networks are essential for the internationalization of the manufacturing industry. In general, the companies that participated in the study believe that the networks helped to reduce costs and to have access to certain resources that were essential for the success of internationalization. Furthermore, the findings suggest that the size of the country and the low purchasing power were some of the substantial factors that triggered the process of searching for new markets. It also became evident that there are barriers that need to be taken into account at the time of internationalization and that cooperation with other companies can help to overcome them. This study provides empirical evidence on the importance of cooperation networks for the internationalization of companies in the manufacturing industry. Furthermore, this study demonstrates the main motivations, strategies and barriers for these companies to internationalize.

Internationalization of Renminbi as a Function of China’s Foreign Exchange Policy

This article discusses the prospects of the Chinese renminbi (RMB) to expand its sphere of influence and become a full-scale reserve world currency. The methods used in the article are retrospective analysis and graphic analysis. The work is divided into three sections. The first section provides a broad overview of modern reserve currencies. The second part characterizes RMBs shaping as a reserve currency, as well as inner and outer factors that influence its status. The third section includes information about RMBs current status and its perspectives for being a reserve currency in the future. The article argues that currently RMB has already become a regional reserve currency in Asia-Pacific. Chinese government continues to make steps towards international expansion of RMB, yet these steps cannot make RMB one of the leading world currencies together with USD and EUR in the nearest decade.

Internationalization of China’s medical device industry: a case study in Brazil

Purpose The singularity of being the first Chinese manufacturer of drug-eluting stents to arrive in Brazil and the country being selected as the company's first experience outside its home country motivated the interest in the study of this case, vis-à-vis with the characteristic of internationalization medical device companies according to the Uppsala model. Considering this context, the following research question was outlined: “How did Microport internationalize before the distribution of its stents product in Brazil?” The aim of the study is to investigate Microport's internationalization process for the distribution of its drug-eluting stents in Brazil. Design/methodology/approach Exploratory research under the qualitative method was adopted. It chose the single case study as a procedure for data collection, as it is a revealing, exemplary subject that offers opportunities for access to unusual research. The company MicroPort was chosen because in the period when Chinese medical device companies were focused on gaining market share in China, MicroPort began its international expansion, choosing Brazil as the first country to have its own subsidiary. It consists in the case of the internationalization of a high-tech EMNE in an emerging country that has institutional and cultural differences. Findings Taking advantage of new technology in highly internationalized environments favors its insertion; the internationalization of medical technology can expand according to the Uppsala Model, which does not explain internationalization, but rather its evolution. Cultural and behavioral issues reinforce that the development of the market for medical devices depends on local perspectives and values. The formation of an ecosystem in the local market for internationalization is observed. One implication of the study is that MicroPort's experience and the application of the Uppsala model for international expansion can serve as an important learning experience for Brazilian multinational companies. Research limitations/implications Empirical analysis carried out in the context of a single company. Although the results can be used as lessons learned from the application of the Uppsala model for international expansion of EMNE in an emerging market, caution should be exercised when generalizing its findings. Future studies could carry out comparative cases considering other emerging multinational companies, from the same sector or even from different industries, investing in other emerging markets. There is a limitation of the fact that the case studied does not explore the concepts of the later stages of the Uppsala model. Practical implications High-tech EMNEs internationalizing in other markets need to adopt aggressive strategies. The need to adopt different strategies for supply chain operations according to the specificities of the markets in which they operate. Important contributions to the Uppsala model, with regard to the process of passing stages, learning and networking. The findings of this study have similarities to the process described as a sequence of distinct phases of activities. Social implications A local top management team is essential to deal with institutional issues of government agencies when EMNE is internationalized in a culturally distant market. When there are major institutional differences between the country of origin and the host country, the autonomy in the management of the foreign subsidiary positively influences the acceleration of the internationalization process of companies in the high-tech sector. When there are major institutional differences between the country of origin and the country of destination, the use of local social networks positively influences the acceleration of the internationalization process of companies in the high-technology sector. Originality/value Regardless of these limitations, the study provided an exciting case of internationalization of a Chinese company in Brazil operating in a high-tech medical sector. The challenges for the internationalization of EMNEs continue, which makes it opportune for future studies to include more research in this area. The propositions suggested in the study may be the first step.

ГЕНЕЗИС ЦІЛЕЙ І ЗАВДАНЬ ВИБУХОВОГО ШТАМПУВАННЯ (ДО 70-РІЧЧЯ ОДНІЄЇ З НАУКОВИХ ШКІЛ ХАІ)

The paper is devoted to development of one of the scientific schools Kharkiv Aviation Institute (Now National Aerospace University named after M. E. Zhukovsky “KhAI”). This school was born after World War II quite hard after period of National economy restoration and now it continues to develop during last 70 years. The article deals with the origins and genesis of objectives and tasks formulated for think tank and followers during dozens of years. Influence of the world geopolitics on development of mentioned scientific school and reached results is shown. From relatively primitive goals and tasks formulated by R. V. Pikhtovnikov in 1949 up to complicated problems of controlling of impulse energy flows to get high-precision large-dimensional sheet articles. From development of simple manufacturing process conducted in field conditions up to creation of up-to-date manufacturing complexes with correspondent buildings, equipment and technological jigs.Paper draws attention that successful development of scientific school and international expansion of labor market were stipulated by governmental support, both financial and organization ones. Paper shows results of technological systems development. Defefinite analogy with development of biological systems can be observed, i.e. evolution from the simplest to more complicated under influence of external factors.One has to note that paper deals with development of only one direction of scientific school, i.e. sheet articles forming. Research and development of such two other directions as impulse forming by impact of solid and impulse volumetric forming are waiting for their researchers. Authors of the paper tried to escape of conventional approaches of scientific schools description and concentrated on studying of objectives and tasks occurred in frames of considered scientific school. Therefore, the paper doesn’t mention many names of scientific advisors of different directions, titles of exact studies and topics, which involve crucial contribution in achievements of mentioned scientific school.