The purpose of this paper is to explore how selected fast‐moving consumer goods markets in Central and Eastern Europe (CEE) have developed since the opening of CEE and what market…
Abstract
Purpose
The purpose of this paper is to explore how selected fast‐moving consumer goods markets in Central and Eastern Europe (CEE) have developed since the opening of CEE and what market structures have emerged since then. Particular attention is paid to the role of Western multinational corporations (MNCs) as drivers of globalization in this market‐reshaping process.
Design/methodology/approach
Based on household panel data the dissemination of international brands is analyzed in four product categories and four countries of the region. In addition, the question of whether the level of economic development of countries or the product character has an impact on the penetration levels of international brand is examined.
Findings
The outcomes of this retrospective study furnish evidence for the globalization of fast‐moving consumer goods markets in CEE. Although the level of diffusion of international brands varies by product category and country, the strong influence of Western MNCs in the shaping of market structures can be documented. The findings also mirror the predominantly‐employed marketing and brand strategies of foreign MNCs in CEE, namely internationally‐integrated as well as multi‐tier brand strategies.
Research limitations/implications
The data provides only a snapshot of the situation in selected consumer goods markets in the region. In order to obtain a fuller picture of the extent of market globalization, the market share of international brands should be complemented by additional data on purchase and usage behavior.
Originality/value
The paper contributes to the current discussion of the market globalization thesis.
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Purpose – This paper contributes to the discussion of the effects of the global financial and economic crisis of 2008–2009 (GFEC) on strategies of multinational companies (MNC) in…
Abstract
Purpose – This paper contributes to the discussion of the effects of the global financial and economic crisis of 2008–2009 (GFEC) on strategies of multinational companies (MNC) in the unique regional context of Central and Eastern Europe (CEE).
Methodology/approach – The considerations are based on secondary data and accessible studies dealing with corporate responses to the recent economic downturn.
Findings – The author argues that the business model which guided the expansion into CEE still remains valid. The huge market potential did not disappear and the advantages stemming from a skilled workforce and favourable resource situation were not eliminated by the crisis. What markedly changed is the perception of risk of doing business in CEE. As a consequence, foreign investors follow a more cautious and selective approach in their regional strategy. Regional players will try to stay in CEE and benefit from the exit of weaker competitors. Multi-tier brand strategies and affordability initiatives will gain in importance.
Research limitations/implications – As this is a discussion paper further research is necessary to validate the propositions.
Practical implications – An external shock such as the recent crisis forces management to conduct a comprehensive review of the pillars of their strategy. This paper offers a guideline for review of a regional strategy.
Originality/value of paper – The paper provides a comprehensive review of the business model for CEE in the light of the recent global crisis and highlights probable strategic responses of foreign MNCs.
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George Balabanis, Marios Theodosiou and Evangelia S. Katsikea
Export marketing research over the last four decades has covered a number of theoretical and practical issues such as standardisation and customisation, export development…
Abstract
Export marketing research over the last four decades has covered a number of theoretical and practical issues such as standardisation and customisation, export development processes, barriers to exporting, export performance, etc. Rapid technological, institutional, legislative, economic and attitudinal changes across the globe pose challenges for the future development of export marketing research. The emergence of turbulent and hypercompetitive business environments calls for exporters to reconsider the bases and sustainability of their competitive advantage to overseas markets. In particular, future research should focus on the identification of the right export marketing capabilities that firms should develop or acquire, the ability to leverage or transfer them across markets, and the ability to constantly upgrade them using proper organisational learning routines. Of critical importance are the processes used to develop capability‐based strategies and to manage relationships with international customers. This double issue comprises ten articles that deal with some of the main challenges posed to export marketing.
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Gerhard Fink and Maurice Yolles
The purpose of this study is to develop a generic cultural socio-cognitive trait theory of a “plural affect agency” (the emotional organisation). Interaction between the cognitive…
Abstract
Purpose
The purpose of this study is to develop a generic cultural socio-cognitive trait theory of a “plural affect agency” (the emotional organisation). Interaction between the cognitive and the affective personality is modelled.
Design/methodology/approach
James Gross’ (1988) model of Emotion Regulation is integrated with Normative Personality Theory in the context of Mindset Agency Theory: The agency has a “cognitive system” and an emotion regulating “affective system” which interact (Fink and Yolles, 2015).
Findings
Processes of emotion regulation pass through three stages: “Identification”, “Elaboration” and “Execution”. In a social environment, emotions are expressed through actions. The results of actions (feedback, goal achievement) are assessed through affective operative intelligence in the light of pursued goals.
Research limitations/implications
The theory will provide guidance for analysis of cultural differentiation within social systems (e.g. societies or organisations), with reference to identification, elaboration and execution of “emotion knowledge”.
Practical implications
Understanding interdependencies between cognition and emotion regulation is a prerequisite of managerial intelligence and strategic cultural intelligence, in demand for interaction and integration processes across social systems.
Originality/Value
The model provides a framework which links emotion expression and emotion regulation with cognition analysis. In part 2 of this paper, based on this theory a typology can be developed which for given contexts allows ex ante expectations of typical patterns of behaviour to be identified.
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Gerhard Fink and Maurice Yolles
A typology of basic affective and cognitive orientations is developed within a generic cultural socio-cognitive trait theory of a “plural affect agency” (the emotional…
Abstract
Purpose
A typology of basic affective and cognitive orientations is developed within a generic cultural socio-cognitive trait theory of a “plural affect agency” (the emotional organisation).
Design/methodology/approach
Affective personality is defined in terms of a set of affect traits. These are defined in terms of epistemically independent bipolar affect types, which in turn coalesce into a set of mindset types that can be related to the classical four temperaments.
Findings
Different affect types are supposed to differently regulate the three stages of emotion management. Affect types and cognitive types provide mutual contexts, and foster reciprocal affect and cognitive orientations.
Research limitations/implications
The theory provides guidance for analysis of cultural differentiation within social systems (societies/organisations), with reference to identification, elaboration and execution of “emotion knowledge” and “cognitive knowledge”.
Practical implications
Understanding interdependencies between cognition and emotion regulation is a prerequisite of managerial intelligence and strategic cultural intelligence, which is in demand for interaction and integration processes across social systems.
Originality/value
From the framework model linking emotion expression and emotion regulation with cognition analysis, a typology arises allowing ex-ante expectation of typical patterns of behaviour.
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Holger Schiele, Philipp Horn and Bart Vos
Research results concerning the cost‐saving potential of international sourcing have been ambiguous and the topic has been covered in isolation without accounting for influences…
Abstract
Purpose
Research results concerning the cost‐saving potential of international sourcing have been ambiguous and the topic has been covered in isolation without accounting for influences of alternative cost‐saving approaches. This paper aims to analyze the expected financial impact of international sourcing in relation to savings potential attributed to other sourcing tactics, such as, e.g. collaborative product improvement. Furthermore, the paper tests for potential trade‐offs between different levers.
Design/methodology/approach
Data stem from results of 134 cross‐functional cost‐saving workshops using an identical methodology. Workshop participants identified and estimated cost‐saving projects considering seven sourcing levers. Results were recorded in a standardized way and analyzed scrutinizing secondary data.
Findings
Contrary to other studies, data revealed that international sourcing projects averaged 3.4 percent savings expectations. More than 80 percent of total savings potential was attributed to other sourcing levers, such as pooling of demand or process improvement. Results highlight possible trade‐offs between international sourcing and, e.g. joint product optimization.
Research limitations/implications
A rigorous and strict, highly standardized method was employed and data were validated via cross‐functional team discussions, however, ex ante expectations instead of ex post realized savings are analyzed.
Practical implications
Findings give guidance on the importance of international sourcing compared to other levers and help to correct the misconception of international sourcing as a “purchasing panacea.” The findings highlight the need to develop a coherent sourcing strategy for specific commodity groups, including reinforcing tactics and avoiding trade‐offs.
Originality/value
For the first time, explicitly cost‐savings expectations from international sourcing have been analyzed together with other cost‐saving levers concerning relative importance and possible trade‐offs among them.
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Johannes W. Veile, Daniel Kiel, Julian Marius Müller and Kai-Ingo Voigt
Industry 4.0 is assumed to yield extensive industry-spanning opportunities. However, exploiting these opportunities requires a targeted implementation of Industry 4.0. The purpose…
Abstract
Purpose
Industry 4.0 is assumed to yield extensive industry-spanning opportunities. However, exploiting these opportunities requires a targeted implementation of Industry 4.0. The purpose of this paper is to generate a deeper understanding of relevant implementation action. Existing recommendations are mostly general, highly aggregated and difficult to grasp. Yet, specific and concrete actions that need to be taken to accelerate the realization of Industry 4.0 are essential.
Design/methodology/approach
The article uses 13 semi-structured in-depth expert interviews as the source of empirical data. The interviews were conducted with managers from Industry 4.0-experienced German manufacturing companies. All interviews are analyzed using qualitative content analysis.
Findings
The study reveals relevant and targeted aspects for Industry 4.0 implementation: the development of Industry 4.0-specific know-how, securing financial resources, integrating employees into the implementation process and establishing an open-minded and flexible corporate culture. Further aspects include comprehensive planning processes, cooperation with external partners, proper handling of data interfaces, interdisciplinary communication, an adaptable organizational structure and data security.
Research limitations/implications
The paper is limited to German manufacturing enterprises and should be transferred to other industries and countries.
Practical implications
The study supports managers to effectively implement Industry 4.0 within their organizations and consequently benefit from Industry 4.0 and derives recommendations for future research.
Originality/value
The paper is among the first to give specific and concrete examples for lessons learned from Industry 4.0 implementation, directly obtained from industrial application.