“Outside in”: Global demand heterogeneity and dynamic capabilities of multinational enterprises

2019 ◽  
Author(s):  
Xiao Zhang ◽  
Luqun Xie ◽  
Jiatao Li ◽  
Li Cheng
Keyword(s):  
Multinational Enterprises ◽  
Dynamic Capabilities ◽  
Global Demand ◽  
Demand Heterogeneity

Building (or not building) dynamic capabilities: the case of Italian subsidiaries in China and India

2018 ◽  
Vol 26 (4) ◽  
pp. 337-360 ◽  
Author(s):  
Giuseppe Tattara
Keyword(s):  
Value Chain ◽  
Multinational Enterprises ◽  
Dynamic Capabilities ◽  
Case Study Research ◽  
Business Strategies ◽  
Future Research ◽  
Capability Development ◽  
Regional Effect ◽  
Content Type ◽  
Capability Building

Purpose The purpose of this paper is to examine the process of capability building at subsidiary level and the forces preventing such process. The paper discusses and tests three propositions governing this process. Design/methodology/approach This research is based on multiple case studies. A case study research is most useful when addressing issues about which little prior theory has been developed or empirical evidence collected. Findings Subsidiaries in Asia operate in a way substantially different from those in the West. Specifically what ways do market specificities in Asian economies serve to either inhibit or positively encourage the development of a subsidiary? What are the circumstances which could induce subsidiaries to outsource production? Research limitations/implications Future research should explore the regional effect on MNE subsidiary types and different flexibilities exhibited in the value chain. What are the specific aspects (macro and micro) that explain variations of business strategies at subsidiary levelboth over time and between countries? Practical implications Multinational enterprises (MNEs) should be aware of the strong potential for capability development at the subsidiary level. This increased awareness ought to induce consideration in MNEs about how best to encourage such know capability development and how to leverage these capabilities for a better MNE performance. Social implications Managers who knew the host country languages and culture, and have outward-looking attitudes, are in advantageous positions to learn about new opportunities. Originality/value The paper offers empirical insights into the state and drivers of subsidiary performance in Asia. Specifically it shows how neglect of external conditions can act to open people’s eyes and foster a capability-building process within subsidiaries.

Global value Chain Governance

2020 ◽  
pp. 420-434
Author(s):  
Anthony Goerzen ◽  
Ari Van Assche
Keyword(s):  
Value Chain ◽  
Multinational Enterprises ◽  
Dynamic Capabilities ◽  
Raw Materials ◽  
Capabilities Approach ◽  
Global Value Chain ◽  
Spatially Distributed ◽  
Control Production ◽  
End Use ◽  
And Performance

The drivers of economic globalization are leading many firms to disaggregate and redistribute their operations by outsourcing and offshoring. The result of the process is to create global value chains (GVCs) that are a collection of loosely affiliated, spatially distributed firms engaged in bringing products from raw materials to end use. A key insight from previous research is that GVCs are typically orchestrated by multinational enterprises (MNEs) given their control over key markets or critical technologies. Yet, very little is known about the emerging phenomenon in which MNEs appear to control production along the GVC without ownership of those assets. This is an important issue as consumers, regulators, and civil society are holding flagship MNEs increasingly responsible for behavior and performance along their entire GVC. This chapter analyzes GVC governance to highlight the fact that MNEs often require specific types of capabilities that relate to the context of their industry and the GVC in which they are embedded. The dynamic capabilities approach is extended to explore the ways and means of GVC governance by lead MNEs to shed new light on the contextual differences that influence the resources and capabilities required to improve GVC performance.

scholarly journals Determinants of MNEs' Natural Resources Endowments on Performance: An Analytical Model

2018 ◽  
Vol 11 (7) ◽  
pp. 35
Author(s):  
Luis E. Davila ◽  
Vijay S. Sampath
Keyword(s):  
Natural Resources ◽  
Analytical Model ◽  
International Business ◽  
Multinational Enterprises ◽  
Dynamic Capabilities ◽  
State Ownership ◽  
Financial Resources ◽  
Private Ownership ◽  
Resource Based View ◽  
Proposed Model

Drawing on the resource-based view and dynamic capabilities’ perspectives of the firm, we present a comprehensive analytical model of the key determinants of natural resources endowments (NREs) on the performance of multinational enterprises (MNEs). We also propose four moderators that influence the NRE-performance relationship: private ownership, state ownership, financial resources availability, and research and development efforts. The model makes clear how the various determinants of the NRE-performance relationship impacts international business. The model is designed to motivate empirical research on this topic. Implications to various stakeholders flowing from the proposed model are also discussed.

Toward a dynamic capabilities’ diffusion model for international business headway of SMEs: evidence from the metallurgic and metal-mechanic (MMI) sectors

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Bruno Fernandes Abrantes ◽  
Miguel Torres Preto ◽  
Nelson António
Keyword(s):  
Multinational Enterprises ◽  
Dynamic Capabilities ◽  
Small And Medium Enterprises ◽  
Organizational Capabilities ◽  
Content Type ◽  
Global Dynamic ◽  
Manifest Content ◽  
Multiple Case ◽  
Medium Enterprises ◽  
Current Paradigm

Purpose This paper aims to explore the characteristics of capability exchange within internationalizing small and medium enterprises (SMEs) of the Portuguese metallurgic and metal-mechanic sectors. Design/methodology/approach Multiple case research instrumentalizes a (manifest) content analysis based upon qualitative data gathered from the interviewing of the strategic apex of four multinational enterprises, codified in the light of the well-known Weber protocol. Findings The results uncover the existence of a multi-diffusional approach with a bi-directional regime of transferability, where reciprocal transference is non-simultaneous. Operational rigidities are asserted to be stifling the diffusion of capabilities across subsidiaries and hindering higher economies of learning. Research limitations/implications The current paradigm of international capabilization of the sector requires substantial enhancements in its design for the benefit of the firm’s international competitiveness, growth and wealth. Originality/value Organizational capabilities are a determinant of competitiveness. Hitherto, the phenomena of (capabilities) mobility and transferability are still acknowledged as a clear gap. This study opens, therefore, avenues on international capabilization in relation to the modeling and testing of global dynamic capabilities and its replicability across industries.

Dynamic integration paths of emerging multinational enterprises in advanced markets

2019 ◽  
Vol 30 (1) ◽  
pp. 1-23 ◽  
Author(s):  
Yanan Yang ◽  
Christoph Lütge
Keyword(s):  
Multinational Enterprises ◽  
Dynamic Capabilities ◽  
Data Set ◽  
German Market ◽  
Content Type ◽  
Multi Stage ◽  
Linear Integration ◽  
Dynamic Perspective ◽  
Post Merger Integration ◽  
Integration Strategies

Purpose This paper aims to examine dynamic multi-stage post-merger integration (PMI) evolutions by Chinese multinational enterprises (CMNEs) in the German market and their potential influencing factors. Design/methodology/approach A data set was collected from 25 interviews with 21 respondents from six Chinese acquisition cases in Germany, and a comparative multi-case study and content analysis were applied. Findings The results reveal that Chinese acquirers take segmented linear integration path in Germany from nearly no integration to organisational integration and then to production integration. It contains three sub-paths: the P-O-O path (partnering–organisational optimisation–production optimisation), the P-P-P path (preservation–organisational preservation–production preservation) and the P-C-C path (preservation–organisational centralisation–production confusion). The initial nearly no integration condition is mainly impacted by asymmetric information and the targets’ strategic positions, whereas different organisational and production integration degrees in mid- and long-term stages are primarily influenced by Chinese acquirers' different dynamic capabilities. Moreover, Chinese acquirers' corporate ownership is not found to be a significant factor that influences CMNEs to take different integration strategies in different PMI stages. Research limitations/implications This paper contributes to broaden emerging multinational enterprises’ (EMNEs) PMI theory by adding dynamic perspective and provides suggestions for mergers and acquisitions (M&As) practitioners to identify integration options and avoid integration pitfalls in different integration stages. Originality/value Existing works identified that EMNEs prefer to partner with the targets in advanced markets, but lacked a dynamic perspective to disclose whether the partnering strategy would be adjusted or not over time. This study is the first to explore multi-stage integration changes and is one of the few studies that recognise the interaction of the integration strategy with the dynamic capability of the acquiring enterprises.

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