Robert C. Moussetis, Ali Abu Rahma and George Nakos
This paper examined the relationships between national culture and strategic behavior in the banking industry in Jordan and U.S. The study first developed a strategic posture and…
Abstract
This paper examined the relationships between national culture and strategic behavior in the banking industry in Jordan and U.S. The study first developed a strategic posture and secondly a cultural profile for the top management of the research domain. The strategic posture suggested the readiness for strategic response from managers. The degree of readiness was correlated with the constructed cultural profile of the managers and financial performance of the banks. The study found significant relationships between certain national cultural strategic characteristics, (risk propensity, time orientation, and openness to change, uncertainty avoidance and managerial perception of control over the environment) strategic behavior and financial performance.
Details
Keywords
George E. Nakos, Keith Brouthers and Robert Moussetis
The international economic trade environment has been transformed in recent years by the rise of several regional trade blocks. The most important of these regional trade…
Abstract
The international economic trade environment has been transformed in recent years by the rise of several regional trade blocks. The most important of these regional trade associations has been the European Union. Many Eastern European countries are currently applying to join this regional group, hoping that it will help their future economic growth. This paper examines the trade impact of EU membership on Portugal, a country that joined the EU in 1986. Portugal experienced significant positive and negative changes in its trade flows in the years following its EU entry. The analysis of the trade data for the first seven years following Portugal's accession shows a deterioration of the Portuguese trade deficit and a vary rapid re‐direction of Portuguese trade towards EU countries.
Olli Kuivalainen, Sanna Sundqvist, Sami Saarenketo and Rod McNaughton
The purpose of this paper is to present an overview of the conceptual frameworks and concepts with which the research on internationalization patterns of small and medium‐sized…
Abstract
Purpose
The purpose of this paper is to present an overview of the conceptual frameworks and concepts with which the research on internationalization patterns of small and medium‐sized enterprises (SMEs) should be conducted.
Design/methodology/approach
A comprehensive overview of concepts and a conceptual framework to study internationalization patterns of SMEs is offered.
Findings
The complexities of existing definitions and methodologies for researching internationalization patterns are highlighted, and a synthesis of the issues is provided. An integrative model of internationalization pathways, and their antecedents and outcomes is presented.
Research limitations/implications
It is recommended that future research focuses especially on the time dimension of internationalization patterns. Future research can contribute to the literature by adopting a longitudinal approach with larger samples and more detailed cases to capture the dynamics of internationalization.
Practical implications
Practitioners might map their positions, and look for challenges and opportunities with regard to their chosen internationalization pattern. They can also benchmark other firms’ pathways and fine‐tune their own approach to internationalization.
Originality/value
The paper integrates a large body of research in an important research area in international marketing. It also provides guidance on how to conduct future research in the area, and introduces the content of this special issue of the International Marketing Review.
Details
Keywords
Pushyarag N. Puthusserry, Zaheer Khan and Peter Rodgers
The purpose of this paper is to examine the role that different collaborative entry modes play in how international new ventures (INVs) expand into international markets.
Abstract
Purpose
The purpose of this paper is to examine the role that different collaborative entry modes play in how international new ventures (INVs) expand into international markets.
Design/methodology/approach
The paper’s arguments are based on the INVs and social network literatures. In order to investigate the entry modes adopted by British and Indian small and medium information and communication technology (ICT) firms into each other’s markets, the paper outlines the results of qualitative semi-structured interviews with the key decision makers of ten British and ten Indian ICT firms.
Findings
The findings contribute to the relatively under-researched area of how INVs enter foreign markets through collaborative entry mode. The findings suggest that INVs utilize both equity and non-equity modes of collaboration to expand their international operations. The findings also indicate that financial and non-financial resources always limit the market expansion and internationalization of such companies. Against this background, the INVs rely on building collaboration as one of the safest methods for foreign market expansion and successful internationalization. The collaborative entry mode is enhanced by entrepreneurs’ prior experience, social ties and knowledge of the foreign market.
Research limitations/implications
Set against the backdrop of an ever-increasing trend of internationalization of small and medium enterprises (SMEs), the paper offers important implications for understanding the conditions and factors behind the choice of collaborative and non-collaborative entry modes by INVs in particular and SMEs more broadly.
Originality/value
The paper is one of the few studies that have examined the role of collaborative entry modes choice adopted by INVs from two of the largest economies – the UK and India.
Details
Keywords
Xinming He and Yingqi Wei
Drawing on the resource-based view and network theory, the purpose of this paper is to investigate the role of external networks (ENs) and absorptive capacity (AC) in export…
Abstract
Purpose
Drawing on the resource-based view and network theory, the purpose of this paper is to investigate the role of external networks (ENs) and absorptive capacity (AC) in export market location decision of emerging economy firms (EEFs) and the performance implication of this decision.
Design/methodology/approach
This study employs structural equation modeling to test three hypotheses: first, ENs influence an EEF manager's propensity to enter culturally/psychically distant markets for exports. Distant markets are more likely to be chosen by managers of firms with abundant ENs. Second, AC moderates this network-market location relationship. Third, superior performance results from the fit between managers’ propensity to enter a market and firms’ levels of ENs and AC.
Findings
An analysis of 196 Chinese exporting firms supports the hypotheses.
Research limitations/implications
Though the theoretical discussion is general, the empirical context is specific to Chinese export manufacturers. Replicating the study is necessary in different contexts.
Practical implications
The study identifies to managers the importance of external (i.e. ENs) and internal resources and capabilities (i.e. AC) and linkages between resources and capabilities, strategy and performance.
Originality/value
The study is novel in conceptually addressing the role of ENs and AC in firms’ decision making and performance and in testing hypotheses with robust methodology and data.
Details
Keywords
Nowadays, China is one of the most important destinations for international expansion of firms from all over the world. Based on the traditional theory on foreign direct…
Abstract
Nowadays, China is one of the most important destinations for international expansion of firms from all over the world. Based on the traditional theory on foreign direct investment and the resource‐based view of the firm, this paper analyzes the influence of various tangible and intangible firm‐specific factors on the choice amongst three different modes of entry into China: representative office, joint venture and wholly‐owned subsidiary. The results obtained suggest that the size of the investing firm, its performance as well as its experience regarding the country have a positive influence on the choice of types of foreign direct investment that involve a high level of resources commitment. In addition, the specific aim of the project affects these relationships.
Details
Keywords
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.
Details
Keywords
Monica A. Zimmerman and Keith D. Brouthers
Although diversifying internationally appears to be beneficial, relatively few small and medium‐sized firms actually participate. Building on recent research exploring the…
Abstract
Purpose
Although diversifying internationally appears to be beneficial, relatively few small and medium‐sized firms actually participate. Building on recent research exploring the international diversification of small and medium‐sized enterprises (SMEs) the purpose of this paper is to examine the relation among ownership and management team gender heterogeneity, entrepreneurial orientation, and firm international diversity.
Design/methodology/approach
The authors' hypotheses were tested using data gathered from members of Women Impacting Public Policy (WIPP), a national (US) public policy organization that advocates for women in business.
Findings
Results indicate that top management team gender composition and entrepreneurial orientation are significantly related to international diversification but that ownership gender composition is not. The authors found that team entrepreneurial orientation may be useful when teams are more homogeneous on relations‐oriented characteristics such as gender.
Originality/value
The paper's findings suggest that women‐only management teams high in entrepreneurial orientation are more likely to pursue international diversification, dispelling the idea that international diversification is more difficult for women.
Details
Keywords
Ann Sophie K. Loehde, Andrea Calabrò, Mariateresa Torchia and Sascha Kraus
The aim of this study is to advance knowledge on family firms' entry mode choices by examining the linkage between target market context, especially in the emerging economies of…
Abstract
Purpose
The aim of this study is to advance knowledge on family firms' entry mode choices by examining the linkage between target market context, especially in the emerging economies of China and India, and the dominant family firm logic of keeping ownership and control in the family.
Design/methodology/approach
We use an exploratory multiple case study analysis approach based on nine German family firms' internationalization endeavors. We use both primary and secondary data.
Findings
Traditionally, extant research concludes that family principals prefer foreign direct investments (FDIs) in order to exert maximum control when entering international markets. In contrast, our study finds a clear preference for international joint ventures (IJVs) as an initial entry mode of choice into unfamiliar markets. Our findings propose this decision to be rooted in cultural unfamiliarity and the complexity of the target markets' legal environment. The effect of these two factors is amplified by prior IJVs experiences.
Originality/value
This article offers several original insights. First, we identify the triggers of the paradoxical IJVs’ entry mode choice among family firms and thus explain the motivation for breaking with the dominant family firm logic of maximizing control. Second, we account for factors in China's and India's particular emerging market environments. In the light of family control, the unfamiliarity with these markets triggers the decision to compensate for the high level of uncertainty by engaging in an IJV partnership. Third, our study shows that family firms are indeed willing to share control if it serves the long-term survival of the firm.
Details
Keywords
Alfredo D'Angelo, Antonio Majocchi, Antonella Zucchella and Trevor Buck
The purpose of this paper is to examine the determinants of two distinct geographic pathways to internationalization for small and medium‐sized enterprises (SMEs). Regional and…
Abstract
Purpose
The purpose of this paper is to examine the determinants of two distinct geographic pathways to internationalization for small and medium‐sized enterprises (SMEs). Regional and global pathways are juxtaposed to study the influence on export performance of selected key intangible resources, namely, innovation, human resource management, networking and the firm's experience.
Design/methodology/approach
Building upon a resource‐based view of the firm, Tobit regression models are used to test the hypotheses on a sample of 2,657 Italian manufacturing firms.
Findings
The paper provides empirical evidence that the determinants of SME export performance vary in line with the geographic scope of internationalization. While product innovation (innovation) positively impacts on SME export performance, irrespective of export destination, other factors do so selectively. For example, location in industrial districts (networking) and the deployment of external managers (human resource management) exclusively exert their positive impact respectively on regional and global export performance. The firm's age (experience) does not seem to guarantee success on regional or global export markets.
Practical implications
Investing in product innovation and hiring specialist non‐family executives are associated with success on global export markets. Industry clustering provides the resources that are useful for internationalization up to a point (export growth in regional markets), but it is not effective in the case of expansion on distant international markets.
Originality/value
Exporting beyond the regional market exposes firms to the liability of foreignness to a greater degree, thus requiring more dedicated and specialized resources and competences. This paper supports the hypothesis that export drivers differ between regional and global markets and calls for a definition of export performance that distinguishes between them.