Global Strategy and Multinational Corporation Capabilities

2021 ◽  
Author(s):  
Donald R. Lessard ◽  
D. Eleanor Westney
Keyword(s):  
Competitive Advantage ◽  
Multinational Corporation ◽  
Home Country ◽  
Global Strategy ◽  
Strategic Decisions ◽  
Strategic Resources ◽  
Tangible Assets ◽  
Factors Of Production ◽  
National Boundaries

Strategy in a global setting involves competition in industries that extend across national boundaries and among firms with different national home bases that may tap into strategic resources in more than one location. The resources that the firm accesses from its home country provide it with international competitive advantage only if they are relevant in other markets, if the value they create is appropriable, and if they are transferable to those markets (RAT), These resources include tangible assets and factors of production, but, importantly, also the capabilities the firm develops. Similarly, the resources that it taps from other contexts provide it with further competitive advantage only if these resources are complementary to the firm’s existing resources, appropriable, and transferable to the locations where it can exploit them (CAT). These two sets of factors—RAT and CAT—provide a framework for international strategic decisions that emphasizes developing, acquiring, and transferring capabilities.

scholarly journals Resource-based view model implementation toward business competitiveness (Case study in mushroom SMEs in Malang, Indonesia)

2021 ◽  
Vol 4 (1) ◽  
pp. 18-24
Author(s):  
Ardaneswari Dyah Pitaloka Citraresmi ◽  
Andan Linggar Rucitra ◽  
Novi Haryati ◽  
Faizatul Amalia
Keyword(s):  
Competitive Advantage ◽  
Strong Influence ◽  
Intangible Assets ◽  
Partial Least Square ◽  
Least Square ◽  
Company Performance ◽  
Resource Based View ◽  
Strategic Resources ◽  
Tangible Assets ◽  
Business Competitiveness

Mushroom is one of the main commodities of agroindustry which experienced an increase in production due to the existence of consumer awareness to consume healthy products. The popularity causes the development of the mushroom processing industries in Malang. To improve the quality of products, mushroom SMEs need to further develop the company performance. Company performance can be achieved with an effective competitive advantage. Competitive advantage is a factor that a company should have in order to succeed in business. The fundamental source of competitive advantage is assets. This research use a Barney’s theory in determining strategic resources to achieve competitive competitiveness called Resource-Based View (RBV). The purpose of this research are to determine the influence of: (1) tangible assets on competitive advantage strategy, (2) intangible assets on competitive advantage strategy, (3) company capability on competitive advantage strategy, and (4) competitive advantage strategy on company performance. The exploration techniques utilised are quantitative and Partial Least Square (PLS). The results showed that the tangible assets and company capability have a strong influence and positively contribute to competitive advantage strategy, meanwhile intangible assets have a weak influence and negatively contribute to competitive advantage strategy, and competitive advantage strategy has a strong influence and positively contributes to company performance.

Supply resource management: Salomon and his network of subcontractors in Romania

2017 ◽  
Vol 33 (2) ◽  
pp. 4-6
Author(s):  
Richard Calvi
Keyword(s):  
Supply Chain ◽  
Resource Management ◽  
Competitive Advantage ◽  
Strategic Decisions ◽  
Content Type ◽  
External Resources ◽  
Internal Resources ◽  
The One ◽  
Practical Implications

Purpose According to Christopher (2000), in a lot of sectors, the competition is a question of supply chain against supply chain. The winner in term of competitive advantage should be the one, who is able to obtain more than the competitor from the available resources. In strategic literature, Dyer and Singh (1998) are the first who introduced the concept of “relational competency” to explain why some companies gain their competitive advantage not directly from their internal resources but mainly because they are able better to combine external resources. Design/methodology/approach This paper is a case study. Findings The author describes the different phases and strategic decisions in the building of a real supplier eco-system. Research limitations/implications It is a sole case study. Practical implications This study is a description of a success story. Originality/value This study is a description of an external resource management in action.

Strategic Transcultural Marketing Management and Global Competitiveness

2014 ◽  
pp. 1226-1248
Author(s):  
Angelo A. Camillo ◽  
Svetlana Holt ◽  
Joan Marques
Keyword(s):  
Strategic Management ◽  
Competitive Advantage ◽  
Business Schools ◽  
Global Strategy ◽  
Education Programs ◽  
Competitive Position ◽  
Leadership Culture ◽  
Global Competitiveness ◽  
Resources And Capabilities

An organization achieves competitive advantage if it delivers above average profits in its industry. Strategic management has many definitions. In this context, the authors define global strategic management as a bundle of decisions and acts based on resources and capabilities that a manager undertakes that decide the long-term competitive position of the firm. The past and current economic conditions are evidence that global strategy will never be perfect but an ongoing effort to achieve optimal results for all stakeholders. Hence, the task for the global leaders has become increasingly challenging and hypercompetitive. While these leaders materialize their vision and accomplish their mission, they also build a strong leadership culture. However, successful executives are too busy or do not have the capability to develop new skills to plan and execute their long- and short-term strategies. To narrow the gap between achievement and acquiring new skills, business schools from across the globe offer Executive Education Programs that help them expand their skills. These programs can be highly specialized and individually designed for specific companies in a given industry. Present and future global leaders must stay current with competitive trends and ahead of the competition to achieve and sustain competitive advantage in their industry.

IKEA Inc.: the India way

2020 ◽  
Vol 10 (1) ◽  
pp. 1-9
Author(s):  
Neetu Yadav
Keyword(s):  
Emerging Markets ◽  
Competitive Advantage ◽  
Learning Outcomes ◽  
Emerging Market ◽  
Local Environment ◽  
Global Strategy ◽  
International Strategy ◽  
Content Type ◽  
Academic Level

Learning outcomes Learning outcomes are as follows: to learn about the application of Bartlett and Ghoshal’s model of international strategy; to compare and contrast the global strategy of IKEA in India and China; and to understand how adaptability can create a new competitive advantage in emerging markets. Case overview/synopsis The case study enables discussion about the global strategy of a well-established multi-national company, IKEA in an emerging market. IKEA is a well-established and well-known brand in the international market in furniture retailing. It has decided to make a debut in India in 2017 with its first store in Hyderabad. However, it was yet to open it in 2018. The case emphasizes upon understanding the global strategy of IKEA, positioning itself in the fragmented Indian furniture industry, managing differences in emerging markets and adapting to the local environment of the particular country. The case highlights how adaptability can create a new competitive advantage in managing global strategy in different countries of emerging markets. Complexity academic level This case study is developed for post-graduate management programs as an MBA, Executive MBA and executive development programs. Supplementary materials Teaching Notes are available for educators only. Subject code CSS 11: Strategy.

Country-of-origin and CSR initiatives: a social dominance perspective

2018 ◽  
Vol 14 (3) ◽  
pp. 501-515
Author(s):  
Leyla Orudzheva ◽  
Nolan Gaffney
Keyword(s):  
Competitive Advantage ◽  
Host Country ◽  
Social Dominance ◽  
Multinational Enterprises ◽  
Home Country ◽  
Country Of Origin ◽  
Developed Countries ◽  
Less Developed Countries ◽  
Content Type ◽  
Business Context

Purpose Research on corporate social responsibility (CSR) continues to proliferate, but why and how multinational enterprises (MNEs) from different parts of the world engage in CSR is still unclear. The purpose of this study was to investigate whether there are differences in behavior based on the status of the MNE’s home country relative to the host country. Design/methodology/approach Applying a social dominance theory (SDT) framework, the authors explain variations in MNE behavior because of perceived hierarchical differences between a MNE’s home country and that of the host country. It is posited that these hierarchical differences trigger a country-of-origin bias that affects stakeholders’ expectations for the MNE, as well as that firm’s response to those expectations. In this integrative conceptual paper, we propose a testable framework derived from a deductive approach that applies the tenets of SDT to predict outcomes of CSR implementation by MNE’s subsidiaries. Findings MNEs from less developed countries are subject to lower expectations and engage in self-debilitating behavior, which may hinder their attempts to implement CSR initiatives in more developed countries. Paradoxically, engaging in CSR initiatives could help reduce liability of foreignness and increase chances for competitive advantage. Practical implications MNEs from developing countries should be aware of a potential country-of-origin bias affecting decisions on CSR implementation and that could also be detrimental to their competitive advantage when operating in more developed countries. Conversely, MNEs from developed countries should be ready for higher expectations of their CSR initiatives in less developed countries. Originality/value This paper strives to contribute to two extant literatures. First, it contributes to the social dominance literature by applying the perspective in the international business context, specifically research on MNE liability of origin. Second, this perspective offers testable propositions on how perceived hierarchies and liability of origin affect firm decision-making, specifically in the context of developing country MNEs. Third, this paper seeks to expand the discussion of MNE subsidiary CSR behavior to account for the relative context of the home and host country.

The Evolution from E-Commerce to M-Commerce

2012 ◽  
Vol 8 (1) ◽  
pp. 1-16 ◽  
Author(s):  
Esther Swilley ◽  
Charles F. Hofacker ◽  
Bruce T. Lamont
Keyword(s):  
Decision Making ◽  
Competitive Advantage ◽  
Model Misspecification ◽  
Strategic Decision ◽  
Strategic Decision Making ◽  
Strategic Decisions ◽  
Firm Capabilities ◽  
Isomorphic Pressures

This study focuses on the isomorphic pressures and firm capabilities that affect strategic decision-making in organizations in the context of m-commerce. The authors take into consideration that the three isomorphic forces set forth by DiMaggio and Powell (1983), mimetic, coercive and normative pressures, work together to impact strategic decisions based on stakeholder influences. This study found that the effects of mimetic pressures seen in results of previous studies may be the result of model misspecification. Findings also indicate that firms want to leverage capabilities gained from e-commerce in the m-commerce wave in order to gain a competitive advantage in the marketplace

Home Country Institutions and the Internationalization-Performance Relationship

2016 ◽  
Vol 42 (5) ◽  
pp. 1075-1110 ◽  
Author(s):  
Valentina Marano ◽  
Jean-Luc Arregle ◽  
Michael A. Hitt ◽  
Ettore Spadafora ◽  
Marc van Essen
Keyword(s):  
Home Country ◽  
Meta Analysis ◽  
Analytical Techniques ◽  
Informal Institutions ◽  
Global Strategy ◽  
Future Research ◽  
General Hypothesis ◽  
Country Level ◽  
Formal And Informal Institutions ◽  
Partial Correlations

We propose that the mixed findings of research on the internationalization-performance (I-P) relationship reflect its failure to adequately consider the moderating role of firms’ home country formal and informal institutions. This general hypothesis is supported in a meta-analysis of the firm-, industry-, home country–, and host country–level factors driving the I-P relationship across 32 countries between 1972 and 2012 from 359 primary studies—the largest sample of primary studies of any meta-analysis on this topic to date. We make three main contributions to the I-P and global strategy literatures. First, we develop a novel integration of the theoretical logics from the I-P research and the institution-based view of strategy to explain how embeddedness in home country institutions affects the strength of the I-P relationship. Second, we show the importance of including both formal and informal institutions in analyses of firms’ institutional embeddedness, thereby extending our knowledge of the effects of institutional complexity. Our third contribution is methodological and reflects our use of advanced meta-analytical techniques based on both product-moment and partial correlations as effect sizes, which allow us to address unresolved debates about the sign and shape of the I-P relationship. Our results show that the I-P relationship is positive, although the overall effect is small and varies greatly across firms’ home countries. We conclude by discussing the findings’ relevance and promising future research avenues, including novel research questions, multilevel theoretical and empirical frameworks, and improvements in methodological rigor.

scholarly journals The Nature Of Firm’s Internal Environment Capabilities And Competencies Dynamics Evaluation: Feasible Strategy Crafting Imperatives

2020 ◽  
Vol 02 (10) ◽  
pp. 33-44
Author(s):  
John E. Chikwe ◽  
◽  
Chris Sam Biriowu ◽  
Keyword(s):  
Competitive Advantage ◽  
Core Competencies ◽  
Internal Environment ◽  
Human Beings ◽  
Strategic Decisions ◽  
External Resources ◽  
Sustainability Criteria ◽  
Self Confidence ◽  
Organizational Competencies ◽  
Critical Resource

The study strategically evaluated the nature of firm’s internal environment capabilities and competencies dynamics that will ensure feasible strategy crafting. The understanding and analysis of the challenges posed in the internal environment helps strategists to make strategic decisions relating to the resources, capabilities and core competencies since they are non routine. In order to facilitate the development and effective usage of core competencies, managers/strategists are advised to have courage, self-confidence, integrity, the capacity to deal with uncertainty and complexity, and a willingness to hold people accountable for their work, as well as their being accountable themselves. This should be necessitated because the competitive advantage and firm’s performance are often strongly related to the resources firms hold and how they are managed. This is found to be so, since human beings are strategic critical resource that produces innovation, develops policies and strategies, and firm’s competitive advantage enhancement. The study further explored some related perspectives of valuable capabilities, personnel and organizational competencies, resources tangibility and intangibility, as well as competitive advantage sustainability criteria that will guide feasible strategy crafting. The study recommends amongst others, that organization managers should as a matter of necessity, monitor and evaluate the internal environment capabilities and competencies in order to have fit with that of external resources dynamics to enhance feasible strategy crafting.

scholarly journals SIKLUS HIDUP ORGANISASI: UPAYA-UPAYA STRATEGIS DALAM MENGHADAPI GEJALA PENURUNAN ORGANISASI AGAR DAPAT “GOING CONCERN” DAN TETAP UNGGUL

2007 ◽  
Vol 9 (1) ◽  
pp. 17
Author(s):  
Suryo Budi Santoso ◽  
Herni Justiana Astuti Herni Justiana Astuti
Keyword(s):  
Competitive Advantage ◽  
Global Strategy ◽  
Transfer Of Knowledge ◽  
Going Concern

Keuntungan dari krisis multi dimensi yang terjadi sejak tahun 1997 di Indonesia banyak yang dapat kita ambil sebagai pelajaran berharga. Diantaranya adalah banyaknya perusahaan yang mengalami gulung tikar dimana sebelumnya dia menjadi salah satu perusahaan yang sangat sukses bahkan disegani di tingkat asia dengan julukan “Macan Asia”. Menjadi organisasi yang unggul (competitive advantage) adalah pilihan yang mau tidak mau harus di ambil jika kita tidak mau kalah dalam persaingan di era globalisasi ini sehingga perusahaan dapat going concern.Upaya strategis yang dapat dilakukan yaitu; dengan konsep glocal strategy yang terdiri dari local, international, multinational, and global strategy approaches; diperlukanya etika di dalam strategi pembuatan keputusan; efektifitas dan komitmen dalam organisasi; harus memiliki tujuh sifat kesadaran organisasi seperti yang disarankan oleh Heaton dan Harung (1999) dan kesadaran emosional serta kesadaran spiritual; modal intelektual organisasi; pembelajaran organisasi dengan mengunakan management by process, experiment, demi transfer of knowledge.

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