At the beginning of the twenty-first century, the paper is witnessing a new phenomenon of international entrepreneurship; skilled entrepreneurs from developed countries are…
Abstract
Purpose
At the beginning of the twenty-first century, the paper is witnessing a new phenomenon of international entrepreneurship; skilled entrepreneurs from developed countries are temporarily moving to emerging economies in order to pursue business opportunities. While anecdotal evidence exists, very little theoretical development has taken place so far to explain to this phenomenon. The paper presents two short cases based on such anecdotal evidence. These cases form the basis for the development of a conceptual framework which entails a profile of entrepreneurs who have the ability to establish and operate new business ventures in an emerging economy which is characterized by a high psychic distance.
Design/methodology/approach
Using Siu's work on immigrant laborers, the paper suggests that skilled, professional entrepreneurs from Israel, who seek business opportunities in China, have a profile that differs from typical immigrant entrepreneurs described in literature and is closer to the immigrant laborers described by Siu and the paper suggests therefore naming them “sojourning entrepreneurs”.
Findings
These entrepreneurs have the ability to overcome liability of foreignness, without integrating in the host society, and without becoming part of the local culture and the ability to engage both networks in the home country and in the host country to further the entrepreneurial venture in the host country. The paper poses that these foreign entrepreneurs will be more successful in China when using strategic alliances and that they will be more successful if they are able to leverage their foreignness temporarily and become liaisons and mediators between agents in the home and in the host country.
Originality/value
If, as posed, these entrepreneurs will indeed be more successful in China when using alliances rather than WOFEs and if their unique capabilities enable them to become liaisons and mediators, this line of research can lead to guidelines for such entrepreneurs as well as for the Chinese Government. The paper expects that in the Chinese century, more entrepreneurs will be footloose and fancy-free and exploit opportunities in globally emerging markets and they will be in need of guidelines based on empirical research.
Details
Keywords
Shlomo Yedidia Tarba, Tamar Almor and Haim Benyamini
Management researchers and practitioners point out that integration processes during the post-merger integration period are critical to synergistic effects and performance of the…
Abstract
Management researchers and practitioners point out that integration processes during the post-merger integration period are critical to synergistic effects and performance of the merged companies over time. However, the relation between the post-merger integration process, synergy potential exploitation, and its influence on M&A deal success, especially in the case of international M&A, is not clear. Moreover, the results of empirical studies are inconsistent and even contradictory. This chapter adds to the existing body of knowledge by developing a model, based on the analysis of the acquisition by Teva Pharmaceuticals of the Hungarian Biogal and of the Dutch Pharmachemie. The model addresses the key factors such as the effect of corporate culture differences, and synergy potential between the acquiring and acquired firms on the international M&A performance.
Niron Hashai, Tamar Almor, Marina Papanastassiou, Fragkiskos Filippaios and Ruth Rama
This chapter examines the interrelationships between internationalization and product diversification among the world's l35 largest food and beverage enterprises. Based on the…
Abstract
This chapter examines the interrelationships between internationalization and product diversification among the world's l35 largest food and beverage enterprises. Based on the argument that food and beverage enterprises enjoy economies of scope when moderately diversifying into new countries and product areas, but encounter resource constraints when extremely diversified and internationalized, we expect to find an inverted U-shaped relationship between the two strategies. Nevertheless, we find that the relationships between the two strategies show both an inverted U-shaped (when geographic diversification is the dependent variable and product diversification the independent one) and a U-shaped pattern (when product diversification is the dependent variable and geographic diversification the independent one). These results imply that the relationships between internationalization and product diversification among food and beverage enterprises are more complex than currently conceived.