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Book part
Publication date: 8 April 2005

Ricardo Madureira

This paper illuminates the distinction between individual and organizational actors in business-to-business markets as well as the coexistence of formal and informal mechanisms of…

Abstract

This paper illuminates the distinction between individual and organizational actors in business-to-business markets as well as the coexistence of formal and informal mechanisms of coordination in multinational corporations. The main questions addressed include the following. (1) What factors influence the occurrence of personal contacts of foreign subsidiary managers in industrial multinational corporations? (2) How such personal contacts enable coordination in industrial markets and within multinational firms? The theoretical context of the paper is based on: (1) the interaction approach to industrial markets, (2) the network approach to industrial markets, and (3) the process approach to multinational management. The unit of analysis is the foreign subsidiary manager as the focal actor of a contact network. The paper is empirically focused on Portuguese sales subsidiaries of Finnish multinational corporations, which are managed by either a parent country national (Finnish), a host country national (Portuguese) or a third country national. The paper suggests eight scenarios of individual dependence and uncertainty, which are determined by individual, organizational, and/or market factors. Such scenarios are, in turn, thought to require personal contacts with specific functions. The paper suggests eight interpersonal roles of foreign subsidiary managers, by which the functions of their personal contacts enable inter-firm coordination in industrial markets. In addition, the paper suggests eight propositions on how the functions of their personal contacts enable centralization, formalization, socialization and horizontal communication in multinational corporations.

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Managing Product Innovation
Type: Book
ISBN: 978-1-84950-311-2

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Book part
Publication date: 2 December 2024

Vítor Corado Simões, John Cantwell and Philippe Gugler

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The History of EIBA: A Tale of the Co-evolution between International Business Issues and a Scholarly Community
Type: Book
ISBN: 978-1-83608-665-9

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Book part
Publication date: 1 January 2005

Shelby D. Hunt and Robert M. Morgan

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Review of Marketing Research
Type: Book
ISBN: 978-0-85724-723-0

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Book part
Publication date: 3 December 2018

Wasana Jayawickramarathna, Kaleel Rahman, Rajendra Mulye and Tim Fry

The market-based approach to catering for the poor mainly focusses on companies making profits while helping the poor enhance their lives. This concept presented the possibility…

Abstract

The market-based approach to catering for the poor mainly focusses on companies making profits while helping the poor enhance their lives. This concept presented the possibility of there being a ‘fortune’ to make at the Bottom of the Pyramid (BoP) market that was an opportunity for both businesses and consumers. The notion of the BoP market has been widely studied using urban and rural contexts as distinct classifications; yet many argue that the opportunity does not in fact exist in the rural BoP markets. In this chapter the authors examine the prospects in the rural BoP in Sri Lanka through a qualitative study using insights provided by industry practitioners who operate at the BoP level. Findings show that a large percentage of the income of multinational companies is derived from rural BoP markets. Compared to the urban sector, the rural BoP market indicates relatively higher disposable income and is viewed as an attractive market segment by industry practitioners. The findings also show that rural BoP people have more resources and skills than their urban counterparts, although the former commonly have lower levels of education. Moreover, the youth segment in both the urban and rural BoP markets was found to heavily consume social media. The authors conclude their discussion by providing several key proposals for organisations looking to seize opportunities in this market.

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Bottom of the Pyramid Marketing: Making, Shaping and Developing BoP Markets
Type: Book
ISBN: 978-1-78714-556-6

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Article
Publication date: 17 August 2012

Joe Follman

The purpose of this paper is to synthesize the first ten years of research on the Bottom (or Base) of the Pyramid (BoP) strategy of providing products and services to billions of…

762

Abstract

Purpose

The purpose of this paper is to synthesize the first ten years of research on the Bottom (or Base) of the Pyramid (BoP) strategy of providing products and services to billions of the world's poor. Conceptions of BoP have shifted significantly, but the nature and implications of these shifts have not been adequately explored. The paper asks: What is the present conception of BoP, how and why has it evolved since 2002, and what are differences and concordances between first‐ and second‐generation understandings? What would an integrative perspective on BoP include, and how can it be applied?

Design/methodology/approach

The paper takes the form of a literature review of peer‐reviewed journal articles and books on BoP.

Findings

It is found that ten years of research have rapidly advanced the definition of BoP, from a way for multinational corporations to profit by selling to the poor to how collaborative networks – including local firms and NGOs – engage with the poor to design, produce, distribute, and sell goods and services. An emerging consensus is that successful BoP ventures must use an integrative approach in key areas: understanding distinctions among poverty levels, focusing on BoP need to create customized products and services at low prices, collaboration with local organizations, engagement of BoP populations as producers and not just consumers, and applying a reciprocal shared value concept (Porter and Kramer) to ensure products and services provide real economic and social benefits to both the company and members of the BoP.

Originality/value

The paper's suggested integrative approach reframes the BoP discussion as a meso approach of using effective strategies in complementary ways, as does the application of the shared value framework for BoP initiatives.

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South Asian Journal of Global Business Research, vol. 1 no. 2
Type: Research Article
ISSN: 2045-4457

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Available. Content available

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Strategy & Leadership, vol. 32 no. 3
Type: Research Article
ISSN: 1087-8572

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Article
Publication date: 10 May 2013

Yazid Abdullahi Abubakar

While it has been speculated for some time that technology market development at the bottom of the pyramid (BOP) will create millions of new entrepreneurs in developing countries…

366

Abstract

Purpose

While it has been speculated for some time that technology market development at the bottom of the pyramid (BOP) will create millions of new entrepreneurs in developing countries, as the BOP is the largest untapped market, to date, there is hardly any macro‐level cross‐country study investigating the extent to which such market development at the BOP influences new business formation “rates” in developing countries. The purpose of this paper is to examine the role of technology market development at the BOP in the information and communications technology (ICT) sector in influencing new business formation rates in developing countries.

Design/methodology/approach

The study draws on cross‐country data from developing countries from World Resources Institute and the World Bank. Several steps were taken to ensure robustness.

Findings

First, a connection is established between a developing country's level BOP market for ICT and the county's “rate” of new business formation. Second, it is suggested that the level of industry specialization in a developing country enhances the relationship between BOP markets for ICT and new business formation in a developing country. Third, the empirical analysis is based upon a rigorously‐collected authoritative multi‐country data from World Bank that answers the concern voiced by researchers. Fourth, the results suggest that the established link between ICT and economic growth in developing countries may be occurring through “new business formation” acting as a mediator between the two.

Research limitations/implications

Implications are drawn for policy and further research.

Originality/value

The study establishes a macro‐level connection between a developing country's level of BOP market for ICT and its “rate” of new business formation.

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Article
Publication date: 1 March 1996

C.K. Prahalad and Larry Bennigson

As recently as 24 months ago, the principal focus of management attention was cost reduction. Today, the captivating target is growth. How do you account for this rapid shift in…

272

Abstract

As recently as 24 months ago, the principal focus of management attention was cost reduction. Today, the captivating target is growth. How do you account for this rapid shift in interest?

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Strategy & Leadership, vol. 24 no. 5
Type: Research Article
ISSN: 1087-8572

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Article
Publication date: 1 March 2005

Bo Bernard Nielsen

This article traces the evolution of strategic management and knowledge management research during the past four decades with particular emphasis on the role of knowledge in…

231

Abstract

This article traces the evolution of strategic management and knowledge management research during the past four decades with particular emphasis on the role of knowledge in interorganizational collaborative arrangements. By outlining the main strategic management perspectives in contemporary business literature and combining them with current knowledge management perspectives, an indication of the evolution of research pertaining to strategic knowledge management emerges. It is shown that most of the current strategic knowledge management research is conducted within the existing paradigms of strategic management. A criticism of this is offered and the article concludes by offering a new, more dynamic perspective of knowledge management, focusing on the synergies of knowledge‐related capabilities in explaining the formation and economic justification of strategic collaborative arrangements.

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Competitiveness Review: An International Business Journal, vol. 15 no. 1
Type: Research Article
ISSN: 1059-5422

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Book part
Publication date: 17 February 2017

Rebecca Piekkari and D. Eleanor Westney

The multilingual MNC provides a promising territory for enhancing the dialogue between organization theory and International Business. We draw parallels between research on the…

Abstract

The multilingual MNC provides a promising territory for enhancing the dialogue between organization theory and International Business. We draw parallels between research on the multinational corporation and that on the multilingual corporation. Our review shows that the changing conceptualizations of the MNC toward a network model have carved space for language-sensitive research in International Business. We scrutinize this stream of research from the viewpoint of three organization theory lenses: the role of language in organizational design and architecture, in identity building and culture, and in organizational political systems, and comment on future research.

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Multinational Corporations and Organization Theory: Post Millennium Perspectives
Type: Book
ISBN: 978-1-78635-386-3

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