Aim of the present monograph is the economic analysis of the role of MNEs regarding globalisation and digital economy and in parallel there is a reference and examination of some…
Abstract
Aim of the present monograph is the economic analysis of the role of MNEs regarding globalisation and digital economy and in parallel there is a reference and examination of some legal aspects concerning MNEs, cyberspace and e‐commerce as the means of expression of the digital economy. The whole effort of the author is focused on the examination of various aspects of MNEs and their impact upon globalisation and vice versa and how and if we are moving towards a global digital economy.
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International joint ventures (IJV) management teams exhibit organizational commitment to multiple organizations: to the IJV, to the domestic parent, and to the foreign parent…
Abstract
International joint ventures (IJV) management teams exhibit organizational commitment to multiple organizations: to the IJV, to the domestic parent, and to the foreign parent. Conflicting loyalties occur when there is an unbalanced commitment to these entities. An empirical study found that almost one third of the IJV managers sampled perceived conflicting loyalties in the IJV management team. The negative consequences of conflicting loyalties are discussed, and suggestions are offered for mitigating their effects.
Rodrigo Garza Burgos, James P. Johnson and Misty L.L. Loughry
This paper aims to investigate organizational learning (OL) at the individual, group and organizational levels in service and manufacturing firms in Mexico to determine if there…
Abstract
Purpose
This paper aims to investigate organizational learning (OL) at the individual, group and organizational levels in service and manufacturing firms in Mexico to determine if there are differences in how OL operates or in the link between OL and firm performance.
Design/methodology/approach
The authors surveyed experienced managers from 1,093 Mexican firms across a range of service and manufacturing industries, using the Strategic Learning Assessment Map (Bontis et al., 2002).
Findings
Organizational learning processes (OLPs) were highly similar in service and manufacturing firms and OL had a strong positive association with performance in both types of firms. OLPs at the individual level had a slightly greater impact on performance for service firms.
Research limitations/implications
The results provide further evidence of the strong link between OL and firm performance. There were no significant correlations of firm size or age with the OLPs or firm performance. However, the micro-companies that constitute 95% of Mexican firms were under-represented in the sample.
Practical implications
OLPs are equally important in manufacturing and service firms and across developed and developing economies. Therefore, OL should pervade all organizations. Managers should create cultures that encourage employees to produce new ideas and share those ideas with peers and supervisors through both formal and informal communication processes.
Social implications
The findings indicate that the individual employees’ contributions to OL are the main driver of the impact of OLPs on firm performance and that individual-level learning processes are even more relevant for service firms than for manufacturing firms. As value co-production takes place simultaneously at the moment of the service delivery/service consumption, the individual learning stock is fundamental for enhanced firm performance.
Originality/value
The authors believe this to be the first large-scale study to compare OLPs in manufacturing and service firms across industries in a major emerging market.
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Tomasz Lenartowicz and James P. Johnson
This paper examines the challenges facing multinational enterprises (MNEs) in finding competent managers to staff operations and subsidiaries in emerging market economies (EMEs).
Abstract
Purpose
This paper examines the challenges facing multinational enterprises (MNEs) in finding competent managers to staff operations and subsidiaries in emerging market economies (EMEs).
Design/methodology/approach
The key question examined is – who is going to manage the business expansion of MNEs in EMEs? Will it be host country nationals who know and understand the local business environment; parent country nationals (PCNs) who are sent on an overseas assignment by the parent corporation; or third country nationals (TCNs) recruited for their unique set of skills and expertise?
Findings
There is no “one size fits all” solution; for most multinational corporations (MNCs), a combination of strategies will work. One approach is to seek out EME nationals that are currently working or studying in the MNCs home country. Other MNCs seek recruits directly in the EMEs and then put the recruits through an intensive training program. An alternative is to improve the cross‐cultural training provided to expatriate PNC and TNC managers. However, despite calls for improved training that have been made over decades, there is little evidence that MNCs are investing the necessary resources in training their expatriates in the soft skills that are essential to success. With a growing need for good managers to staff their overseas operations and not enough local managers to do the job, at least in the short to medium term, MNCs will continue to use a combination of staffing strategies, in the hope that they will be able to build up a cadre of culturally competent international managers, regardless of national origin, who can operate effectively in EME environments.
Research limitations/implications
Unless there is a marked shift in the quality and rigor of the cross‐cultural training programs currently being provided to PCNs and TCNs, we foresee plenty of storm clouds developing in the blue skies of emerging markets.
Originality/value
This paper provides a current and practitioner focused discussion of the specific cultural challenges of EMEs and develops the concept of managerial cultural competence.
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Zafar U. Ahmed, James P. Johnson, Chew Pei Ling, Tan Wai Fang and Ang Kah Hui
This study examines country of origin (CO) and brand effects on consumers’ quality perceptions, attitudes, and purchase intentions with respect to a service‐industry product…
Abstract
This study examines country of origin (CO) and brand effects on consumers’ quality perceptions, attitudes, and purchase intentions with respect to a service‐industry product: international cruise‐line packages in Singapore. Star Cruise (Malaysia) and Royal Caribbean Lines (USA) were selected as the brands and countries for the study. Respondents provided quality, attitude and purchase intention ratings. Contrary to prior evidence, CO does appear to be an important informational cue for consumers of services; CO effects were found to be stronger than brand effects for quality and attitude ratings, while brand was more significantly correlated with purchase intentions. A positive CO image compensated for a weak brand, suggesting that, where applicable, marketing efforts should emphasize an association with a positive CO perception. Conversely, a strong brand was not found to compensate for a negative CO perception; in this case, it would be appropriate to change the associated CO to one with a more positive image, as at least one major cruise line has already done.
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This paper studies how Chinese consumers respond to foreign goods in the post‐WTO era. Specifically, it examines brand sensitivity as a mediator and product cues as moderator of…
Abstract
This paper studies how Chinese consumers respond to foreign goods in the post‐WTO era. Specifically, it examines brand sensitivity as a mediator and product cues as moderator of purchase intention. Additionally, it examines consumer preferences for different products and consumption plans for the subsequent five years. The survey sample is drawn from a population of foreign product users from 34 cities in 18 provinces in China. Results provide evidence that brand sensitivity mediates the relationship between consumer ethnocentrism and purchase intention; product cues moderate the effect of ethnocentrism on purchase intention. As the first study to link consumer ethnocentrism directly to brand sensitivity and purchase intention, this research provides some managerial implications. Global marketers can offset the negative effect of ethnocentrism by emphasizing brand image of its products, taking advantage of specific product cues, or by providing more comprehensive after‐sale service to reduce the perceived risk of purchasing imports. Also, price is still a hurdle that prevents Chinese consumers from mass consumption of foreign products. Global firms should not overestimate the purchasing power of Chinese consumers. This study represents a “snapshot” of Chinese consumers’ decision making at a time when their economic system is undergoing rapid change.
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Marc Fetscherin, Ilan Alon, James P. Johnson and Rajesh K. Pillania
The purpose of this paper is to measure and analyze industry export competitiveness of India and it tries to achieve this by presenting a multi‐dimensional framework for measuring…
Abstract
Purpose
The purpose of this paper is to measure and analyze industry export competitiveness of India and it tries to achieve this by presenting a multi‐dimensional framework for measuring and illustrating industry export competitiveness.
Design/methodology/approach
The framework considers industry specialization, industry export growth rate, and relative export market share for a dataset of 97 different Indian industries over a five year period (2001‐2005).
Findings
The analyses identifies four different types of industry groups, namely domestic static, domestic dynamic, global dynamic and global static. The result shows that the majority of Indian industries are dynamic and growing faster than the world export growth rate for the period of study. A total of 40 percent of India's industries are more global, in terms of industry specialization, compared to the world average, with such highly specialized industries as silk, gums, carpets and textiles, floor coverings, pearls, precious stones and metals. The authors show that industry specialization leads to dominance in worldwide export market share. India's global dynamic industries are mainly in the raw materials, commodities and skilled manual labor rather than high tech or manufacturing sectors.
Research limitations/implications
The framework allows us to measure and illustrate industry export competitiveness and permits an intra‐country comparison, a comparison of various industries of one country, or permits an inter‐country comparison, a comparison of one industry across different countries.
Practical implications
The framework should help policymakers, government officials, industry associations, and company executives to assess their export competitiveness and focus on protecting or promoting certain industries by directing scarce resources to sectors where they may count the most. The findings of the study can also be useful for international bodies such as UNCTAD and world‐bank in identifying regional industry that can foster growth of trade and economies in the South‐Asian region.
Originality/value
The framework used is conceptually innovative and applicable to a variety of contexts for modeling industry export competitiveness. The framework also facilitates inter‐ and intra‐country export benchmark analyses.
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Zafar U. Ahmed, James P. Johnson, Xia Yang, Chen Kheng Fatt, Han Sack Teng and Lim Chee Boon
This empirical study focusses on consumers’ attitude to low‐involvement products, bread and coffee, in a newly‐industrialized nation. Using data from 236 consumers in Singapore…
Abstract
This empirical study focusses on consumers’ attitude to low‐involvement products, bread and coffee, in a newly‐industrialized nation. Using data from 236 consumers in Singapore, the study examines the influence of country of origin (COO) relative to other product attributes in consumers’ evaluation of domestic and foreign food products. The results indicate that COO does matter when consumers evaluate low‐involvement products but, in the presence of other extrinsic cues (price and brand), the impact of COO is weak and brand becomes the determinant factor. In addition, the results suggest that a country's positive image in some product categories does not necessarily carry over to other product categories. The implications of these findings for marketing food products internationally are discussed.
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Attempts to establish a decision‐making model by which multinational enterprises (MNEs) front‐end financial target can be evaluated and determined. Explains and defines the…
Abstract
Attempts to establish a decision‐making model by which multinational enterprises (MNEs) front‐end financial target can be evaluated and determined. Explains and defines the financial range. Identifies their strategic concerns in order to do this. Continues by exploring the pattern of front‐end financial target variation and the process of its determination, constructing an international joint venture investment supply‐demand model. Elaborates upon how contingency factors in international operations exert direct impact on this matter and gives some considerations for future research.