It has been claimed that Born Globals are incompatible with the Uppsala model, which is based on the firm having a maximum tolerable risk level. This assumption was used to…
Abstract
Purpose
It has been claimed that Born Globals are incompatible with the Uppsala model, which is based on the firm having a maximum tolerable risk level. This assumption was used to explain observed incremental commitments, with further commitments being made as experiential learning reduces the level of risk faced. This study aims to show that adding a consideration of the role of expected value, including the effects of resource constraints, can reconcile the Born Global and internationalisation process literatures.
Design/methodology/approach
The theoretical arguments are supported by mathematical modelling of a firm pursuing expected value based on subjective beliefs.
Findings
While the effects of risk and expected value coincide when firms limit their downside risks by taking an incremental approach to commitments, other factors impacting on expected value can shift the balance of incentives towards earlier and more rapid internationalisation. For instance, some firms are specialised and have high costs of R&D, and so need to achieve early and rapid growth but face small home markets. While resource constraints can lead a firm to expand for some time in its home market before internationalising, the effect can be reversed in the case of the finance constraint for some firms.
Originality/value
The study shows how Born Global and internationalisation process literatures can be reconciled through a consideration of the effects of expected value on internationalisation decisions. It also provides a novel theoretical analysis of Born Globals.
Details
Keywords
This paper aims to propose a way of addressing unresolved issues in international business theory.
Abstract
Purpose
This paper aims to propose a way of addressing unresolved issues in international business theory.
Design/methodology/approach
A new model of the multinational enterprise as a coordinator of supply chains is presented.
Findings
This paper identifies a new market‐seeking strategy that is an alternative to conventional strategies, such as exporting, licensing and foreign direct investment, and analyses the conditions under which it will be adopted by firms. The new strategy involves the offshoring of production and the out‐sourcing of research and development, and is implemented through co‐operation between a source country firm and a host country firm.
Originality/value
This paper presents a new way of modelling international business as a supply chain system, which can be easily extended in various ways.
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Pattana Boonchoo, Nigel Wadeson and Denise Tsang
The purpose of this paper is to explore empirically whether there are meaningful relationships between key entrepreneurial marketing (EM) variables and the demographic…
Abstract
Purpose
The purpose of this paper is to explore empirically whether there are meaningful relationships between key entrepreneurial marketing (EM) variables and the demographic characteristics of the organization and its manager.
Design/methodology/approach
The data were gathered from a sample of 369 hotels from all regions of Thailand through the use of a postal survey. Several multiple regression models were used to test the relationships in the study. Interaction terms were added to some models to test the moderating effects of major demographic variables on various EM attributes.
Findings
The study shows which types of hotels and which types of managers were associated with EM characteristics. The results indicate that demographic characteristics, such as age, size, location, experience, and gender, significantly explain sets of entrepreneurial marketing variables. It was found, for instance, that both a young hotel and a large hotel are positively associated with entrepreneurial marketing, while owner management is positively associated with market orientation and negatively associated with growth aspirations but has no significant relationship with entrepreneurial orientation.
Originality/value
The paper provides a comprehensive overview of selected relationships between key EM dimensions in the existing literature. It is suggested that future research involves a more in‐depth exploration of some of the relationships found in this study.
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Keywords
Book review by William H. A. Johnson. Casson, Mark et al., eds. The Oxford Handbook of Entrepreneurship, New York, NY: Oxford University Press, 2006. ISBN 9780199288984
The growth in popularity of the regional innovation system approach has, in part, been driven by the need for economies to respond to the after shocks of the global financial…
Abstract
Purpose
The growth in popularity of the regional innovation system approach has, in part, been driven by the need for economies to respond to the after shocks of the global financial crisis. At the same time, the author sees the term anchor institutions are used increasingly to describe organisations that have an important presence in the local community and make some strategic contribution to the local economy. The purpose of this paper is to consider the needs of the micro and small business (MSB) ecosystem through the lens of the entrepreneurial university as a regional anchor institution.
Design/methodology/approach
Asheim et al. (2011) refers to regional innovation systems as, an emphasis on economic and social interaction between agents, spanning the public and private sectors to engender and diffuse innovation within regions embedded in wider national and global systems. According to Doloreux and Parto (2005) three dimensions underpin the use of the regional innovation systems concept, namely: the interactions between different actors in the innovation process, the role of institutions and the use of regional systems analysis to inform policy decisions. The author has drawn on contemporary literature on the entrepreneurial university, regional systems of innovation and institutions to explore some key qualities and problems around anchor Institutions, networks and national and local policy.
Findings
Following the Chancellor’s Comprehensive Spending Review in November 2015 and post the changes in the Department of Business Innovation and Skills remit the author wants to highlight the way universities can take a lead role as an anchor institution within their region. The author argues that this role should include providing a wider range of formal and informal support, knowledge and resource for MSBs, alongside the usual SME suspects (Hart and Anyadike-Danes, 2014; Witty, 2013; Wilson, 2012). Based on my analysis and involvement in the the work of the eight Entrepreneurial Universities of the Year Award winners – during the author’s time as President of ISBE – He suggested four different ways in which collaboration might be enhanced to ensure MSBs make maximum use of the advice and support on offer from universities playing this anchor role.
Originality/value
The results emerging from this work suggest a need for regional policy makers to embrace a innovation-supportive culture, which actually enables firms and systems to evolve over time would be far more effective than those proposed in the latest Comprehensive Spending Review. The outcomes of which will see some of the most robustly evaluated programmes, designed to support small firm growth, closed down and replaced by a commitment (by government) to secure a strong, growing economy, cutting of more red tape and extending small business rate relief for an extra year (Mole, 2015).