International Business: Adjusting to New Challenges and Opportunities

335 Pages·2002·0.88 MB·English

by  Frank McDonald

International Business
Adjusting to New Challenges and Opportunities
Edited by
Frank McDonald, Heinz Tüselmann and
Colin Wheeler
INTERNATIONAL BUSINESS
THE ACADEMY OF INTERNATIONAL BUSINESS
Published in association with the UK Chapter of the Academy of
International Business
Titles already published in the series:
INTERNATIONALBUSINESSANDEUROPEINTRANSITION(Volume 1)
Edited by Fred Burton, Mo Yamin and Stephen Young
INTERNATIONALIZATIONSTRATEGIES(Volume 2)
Edited by George Chryssochoidis, Carla Millar and Jeremy Clegg
THESTRATEGYANDORGANIZATIONOFINTERNATIONALBUSINESS
(Volume 3)
Edited by Peter Buckley, Fred Burton and Hafiz Mirza
INTERNATIONALIZATION:PROCESS,CONTEXTANDMARKETS(Volume 4)
Edited by Graham Hooley, Ray Loveridge and David Wilson
INTERNATIONALBUSINESSORGANIZATION:SUBSIDIARY
MANAGEMENT,ENTRYSTRATEGIESANDEMERGINGMARKETS
(Volume 5)
Edited by Fred Burton, Malcolm Chapman and Adam Cross
INTERNATIONALBUSINESS:EMERGINGISSUESANDEMERGING
MARKETS(Volume 6)
Edited by Carla C. J. M. Millar, Robert M. Grant and Chong Ju Choi
INTERNATIONALBUSINESS:EUROPEANDIMENSIONS(Volume 7)
Edited by Michael D. Hughes and James H. Taggart
MULTINATIONALSINANEWERA:INTERNATIONAL
STRATEGYANDMANAGEMENT(Volume 8)
Edited by James H. Taggart, Maureen Berry and Michael McDermott
INTERNATIONALBUSINESS:ADJUSTINGTONEW
CHALLENGESANDOPPORTUNITIES(Volume 9)
Edited by Frank McDonald, Heinz Tüselmann and Colin Wheeler
International Business
Adjusting to New Challenges
and Opportunities
Edited by
Frank McDonald
Heinz Tüselmann
and
Colin Wheeler
© Academy of International Business, UK Chapter, 2002
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as the authors of this work in accordance with the
Copyright, Designs and Patents Act 1988.
First published 2002 by
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ISBN 0–333–98411–0
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Printed and bound in Great Britain by
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Contents
List of Figures viii
List of Tables ix
Preface x
Acknowledgements xi
Notes on the Contributors xii
List of Abbreviations xvi
1 Introduction:Adjusting to New Challenges and Opportunities
Colin Wheeler 1
PART ONE BEST PAPER
2 The Importance of International Predisposition and
Contact with the Foreign Market: Empirical Evidence
from UK High Technology Small Firms
Marian V. Jones 9
PART TWO ETHICS, ENVIRONMENT AND CORPORATE GOVERNANCE
3 Multinational Companies and Ethical Issues
Sumi Dhanarajan 27
4 Multinational Companies and Environmental Issues
Duncan McLaren 31
5 Russian History and the ‘Americanization’ of
Corporate Governance
Trevor Buck 37
PART THREE THE STRATEGIC DEVELOPMENT OF SUBSIDIARIES
6 Globalization, Corporate Restructuring and Influences
on the MNC Subsidiary
Stephen Young, Neil Hood and John R. Firn 59
v
vi Contents
7 Product Mandate Subsidiaries and High Value-Added
Scope in MNEs’ Operations in the UK: An EU-Based
Comparative Investigation
Ana Teresa Tavares and Robert Pearce 76
8 Knowledge Transfer Between Parent and Developing
Country Subsidiaries: A Conceptual Framework
Paul N. Gooderham and Svein Ulset 88
9 Autonomy and Procedural Justice: Validating and
Extending the Framework
James H. Taggart and Jennifer M. Taggart 98
10 The Development of Pan-European Industrial Structures
and the Strategic Development of Subsidiaries
Frank McDonald, Heinz Tüselmann and Arne Heise 120
11 Cluster Development Policy and New Forms of Public–Private
Partnership
Philip Raines 132
PART FOUR ASSESSING THE PERFORMANCE OF
INTERNATIONAL BUSINESS OPERATIONS
12 Export Behaviour Research in the UK: A Review
Colin Wheeler and Kevin Ibeh 147
13 Understanding International Strategy in the Professional
Services Industry: The Case of the International Marketing
Communications Sector
Dev K. Boojihawon and Stephen Young 166
14 Modelling the Export Marketing Strategy–Performance
Relationship: A Replication
Colin Wheeler, Stephen Tagg and James H. Taggart 181
15 Does International Entry Mode Choice Influence
Firm Performance?
Keith D. Brouthers and Lance Eliot Brouthers 194
16 International Price Competition on the Internet: A Clinical
Study of the On-Line Book Industry
Rajesh Chakrabarti and Barry Scholnick 205
17 New Strategic Group Concepts in the Transition to a Changing
Global Environment: A Dynamic Analysis of Strategic
Group Behaviour in the World-Wide Spirits Industry
Benedikt Schwittay and Chris Carr 221
Contents vii
18 Explaining Organizational Performance Through
Psychic Distance
Jody Evans and Felix Mavondo 234
PART FIVE INTERNATIONALIZATION OF SMEs
19 Globalization and the Smaller Firm: Reconcilable Notions?
Maureen Berry, Pavlos Dimitratos and Michael McDermott 247
20 Multiple Sales Channel Strategies in the Export Marketing
of Small and Medium-Sized Design Companies
Mika Gabrielsson and Zuhair Al-Obaidi 258
References 276
Name Index 303
Subject Index 309
List of Figures
6.1 The global knowledge economy and characteristics of
MNC corporate restructuring 61
8.1 Factors determining the move from level 1 to level 4 knowledge
in transfer capacity 96
9.1 Autonomy–procedural justice framework 100
10.1 FDI flows and pan-European specialization 124
10.2 The development of mandates 126
10.3 Parent country effects 128
10.4 Characteristics of host regions and development of mandates 129
13.1 PSFs and modes of supply 168
13.2 The conceptual framework: a dynamic view of
internationalization strategy of PSFs 171
14.1 An operational model of export marketing
strategy and performance 191
16.1 Percentage of books in each despatch/availability category 213
16.2 Chapters’ premium: value and statistical significance by week 215
16.3 Actual exchange rates and implied exchange rates 217
16.4 Scatter plot of Amazon’s and Chapters’ prices for 5125 books 218
17.1 Hierarchical cluster analysis of the UK spirits market, 1982–86 229
17.2 Hierarchical cluster analysis of the German spirits
market, 1982–86 230
17.3 Hierarchical cluster analysis of the US spirits
market, 1982–86 230
17.4 Hierarchical cluster analysis of the global spirits
market, 1987–95 231
19.1 Dimensions of the smaller global firm 254
20.1 Sales channels for international expansion 260
20.2 Multiple sales channels 262
20.3 Dynamic framework for sales channel structure situation 264
20.4 Single sales channel strategies 271
20.5 Multiple sales channel strategies 272
viii
List of Tables
2.1 Sample profile 14
2.2 International predisposition 15
2.3 Predisposition to internationalize by contact mode 17
2.4 Predisposition to internationalize by frequency of contact 19
2.5 Factor matrix: patterns of overseas contact frequency 21
2.6 Pattern of contact frequency for ‘research contact’ by
firm performance 21
2.7 Pattern of contact frequency for ‘trade contact’ by firm performance 22
2.8 Pattern of contact frequency for ‘professional association’ by
firm performance 22
5.1 Corporate governance and contingencies 40
6.1 Characteristics of subsidiary restructuring 67
7.1 The sample 77
7.2 Relative importance of distinct subsidiary roles/strategies in
the UK by MNE home country and industry 79
7.3 Relative importance of distinct subsidiary role/strategies in
four EU host countries 80
7.4 Degree of decision-making autonomy of subsidiary 83
7.5 Technological activities carried out by subsidiaries 85
9.1 Characteristic of respondent subsidiaries 105
9.2 Strategic decision variables 107
9.3 Cluster analysis: means of four-cluster solution 110
9.4 Means of strategic decision making 112
11.1 Public–private partnership, policy orientation 141
12.1 UK export behaviour studies, 1990–2000 159
14.1 Initial measurement model 185
14.2 Fitting the factor model 187
14.3 Purified measurement model reliability for the Scottish and
US samples 189
15.1 Correlation matrix PRIVATE 201
15.2 Regression analysis for performance 202
16.1 Descriptive statistics of panel data 210
16.2 Despatch/availability categories 210
17.1 The ‘four-phases’ framework 225
17.2 Major international acquisitions/joint ventures by UDG,
IDV and Allied, 1986–95 232
18.1 Psychic distance and organizational performance 240
18.2 Psychic distance dimensions and organizational performance 242
19.1 Key defining characteristics of references on global,
transnational and multinational enterprises 249
ix