Sequential expansion in a foreign market

2016 ◽  
Vol 28 (3) ◽  
pp. 285-311 ◽  
Author(s):  
Anders Pehrsson
Keyword(s):  
Corporate Strategy ◽  
Cox Regression ◽  
Foreign Market ◽  
Multinational Firm ◽  
International Expansion ◽  
Content Type ◽  
The Usa ◽  
Wholly Owned Subsidiary ◽  
Scope Of The Firm ◽  
The Uk

Purpose A multinational firm’s expansion in a foreign market is a key issue of international business. The purpose of this study is to extend the understanding of essential drivers that will facilitate firm’s assessment of alternative modes of sequential expansion. Design/methodology/approach The study applies the knowledge-based view and explores a multinational firm’s sequential post-entry expansion in a foreign market. Event histories of Swedish industrial firms’ establishments of wholly owned subsidiaries in Germany, the UK and the USA were explored using Cox regression. Findings Broad market experiences stemming from corporate strategy and deep experiences from the preceding subsidiary increase the likelihood of a sequential investment. Effects of broad experiences are contingent on the context specified by the geographic scope of the firm and its general subsidiary experience. Research limitations/implications The study contributes to international expansion theory and integrates sources of knowledge originating from strategy theory and internationalization theory. The study shows that the dual approach is needed to understand international expansion. Practical implications In evaluating a further subsidiary investment in a foreign market, the multinational firm is advised to assess whether it possesses enough market experiences to justify the investment. The experiences should be associated with corporate strategy, the previous wholly owned subsidiary and the context specifications identified in the study. Originality/value The study is unique, as it addresses the simultaneous impact of broad and deep market experiences. Also, the inclusion of central context specifications makes the study novel.

Foreign value-adding of industrial firms

2014 ◽  
Vol 7 (2) ◽  
pp. 155-171 ◽  
Author(s):  
Anders Pehrsson
Keyword(s):  
International Strategy ◽  
Foreign Subsidiary ◽  
Industrial Firms ◽  
Content Type ◽  
International Scope ◽  
Market Experience ◽  
The Usa ◽  
Wholly Owned Subsidiary ◽  
Scope Of The Firm ◽  
The Uk

Purpose – There is a lack of research on how the industrial firm's international strategy is associated with basic and advanced value-adding modes of the wholly owned foreign subsidiary. The purpose of this paper is to fill the gap by answering two questions: how are relatedness between the firm and the foreign subsidiary, and the firm's international scope associated with foreign subsidiary's value-adding mode? How does the subsidiary's market experience moderate the relationships? Design/methodology/approach – The study develops a conceptual model that integrates strategy theory and internationalization theory in order to explain basic value-adding modes (promotion, sales, and after-sales services), and advanced modes that also include product development and/or production. Also, the study tests the model using statistical data from subsidiaries of Swedish firms operating in Germany, the USA, and the UK. Findings – It was found that greater relatedness between the core business unit of the parent firm and the foreign subsidiary favors a basic mode. However, the foreign subsidiary's market experience weakens the relationship, and the interaction triggers an advanced mode. Also, greater international scope of the firm favors an advanced mode. Research limitations/implications – The model test shows that research needs to consider both international strategy and market experience in explaining value-adding modes of an industrial firm's wholly owned subsidiary. Practical implications – By using the study contributions the industrial firm's efforts to efficiently implement international strategy would become more efficient as strategy coherence will increase. Originality/value – This paper contributes to literature on international strategy and internationalization by showing that international strategy and market experience of foreign markets mutually impact value-adding modes of wholly owned foreign subsidiaries.

Communicating the corporate strategy

2019 ◽  
Vol 23 (4) ◽  
pp. 348-374 ◽  
Author(s):  
Karolin Köhler ◽  
Ansgar Zerfass
Keyword(s):  
Corporate Strategy ◽  
Quality Criteria ◽  
Holistic Approach ◽  
Listed Companies ◽  
Content Type ◽  
Organizational Goals ◽  
Corporate Strategies ◽  
Corporate Websites ◽  
The Usa ◽  
The Uk

Purpose The purpose of this paper is to address an important but seldom explored field of study: the communication of corporate strategies to external and internal stakeholders. The relevance of the topic can be tracked both in communication studies and in management research, but empirical insights are rare. The paper addresses this research gap by asking: How do listed companies in key industrial markets communicate publicly about their corporate strategy? Design/methodology/approach A comprehensive content analysis of corporate websites was conducted for a sample of the 20 largest listed companies in the UK, the USA and Germany (n=60). The subsequent benchmark analysis has identified best practices and highlighted them in detail. Findings The study revealed significant differences between companies and countries in the sample for most of the dimensions. Cross-country comparisons confirm these differences statistically: German companies score significantly higher in the benchmark than British or US companies. Practical implications This paper outlines quality criteria for professional strategy communication, helping practitioners to improve their activities and contribute to organizational goals. Originality/value The study offers a holistic approach to strategy communication by providing an interdisciplinary theoretical foundation as well as insights into corporate practice, with the aim of laying the ground for further research and discussion in both academia and practice.

Consistent resource base of a foreign subsidiary's greenfield expansion

2014 ◽  
Vol 26 (1) ◽  
pp. 64-78 ◽  
Author(s):  
Anders Pehrsson ◽  
Tobias Pehrsson
Keyword(s):  
Conceptual Framework ◽  
Corporate Strategy ◽  
Foreign Country ◽  
Resource Base ◽  
Industrial Firms ◽  
Content Type ◽  
Local Expansion ◽  
Country Market ◽  
The Usa ◽  
Wholly Owned Subsidiary

Purpose – The purpose is to extend the understanding of the resource base of the industrial firm's greenfield expansion on a foreign country market once a wholly owned subsidiary has been established. Design/methodology/approach – A conceptual framework is developed relying on the resource-based theory of strategy. Resource bases in terms of value-adding activities of four Swedish industrial firms' subsidiaries in the USA are analysed. Four theoretical propositions are formulated regarding consistent associations among the activities and contingencies that are relevant to expansion on a foreign country market. Findings – The propositions show how foreign subsidiaries' value-adding activities are aligned with two contingencies: the corporate strategy manifested by the product/market knowledge transferred from the parent firm that enable local expansion and the subsidiary's knowledge of competition barriers that obstruct local expansion. The value-adding activity may be basic or advanced and may repeat the parent firm's activity. Research limitations/implications – US subsidiaries of four Swedish industrial firms were analysed. The propositions may be turned into hypotheses suitable for tests in statistical studies. A test may include firms from different home countries and subsidiaries on different host country markets. Practical implications – The conceptual framework and the propositions provide a ground for an industrial firm's decision to conduct a strategy of greenfield expansion on a foreign country market once a wholly owned subsidiary has been established. Originality/value – The framework is unique and emphasizes that both knowledge stemming from corporate strategy and knowledge of local competition need to be acknowledged in order to understand firm's greenfield expansion on a foreign country market.

From Asia to Africa: the international expansion of Hon Chuan enterprise

2018 ◽  
Vol 8 (1) ◽  
pp. 1-33
Author(s):  
Caleb Huanyong Chen ◽  
Allan KK Chan
Keyword(s):  
Emerging Markets ◽  
International Business ◽  
Success Factors ◽  
Corporate Strategy ◽  
Mainland China ◽  
Subject Area ◽  
International Expansion ◽  
Content Type ◽  
Key Customer ◽  
Beverage Packaging

Subject area International Expansion; Emerging Markets; Corporate Strategy; Strategic Management. Study level/applicability Senior undergraduate; MBA; EMBA. Case overview This case focuses on the international expansion of Hon Chuan Enterprise, a beverage packaging and filling company headquartered in Taiwan. The company has set foot in Africa after its development in mainland China and Southeast Asia. Its 41st factory has just started production in Mozambique, Africa. The African base may help the company reach the turnover milestone of NT$20bn (approximately US$640m) in the next year. This NT$20bn turnover has been a target every year since 2013, but they have so far failed to reach it. As an original equipment manufacturer (OEM) in beverage packaging and filling, Hon Chuan to some extent relies on customers that own brands. After losing a key customer in mainland China, the company has experienced a three-year slump that forced the company’s president, Hish-Chung Tsao, to modify his strategy. Africa was the new battlefield bearing his ambition. His intention was not just to add another manufacturing base, but to develop its own beverage brands as an OBM. Yet, how could this be achieved in Africa? It would be a new journey full of challenges. Africa was more complex than other markets. The company’s first factory there had just been established, and its future was still unknown. Expected learning outcomes This case is appropriate for courses in international business, emerging markets, corporate strategy and marketing management. After studying the case, students should be able to understand international expansion of a manufacturing company in emerging markets; understand several key emerging markets of the world and learn what CAGE distances are; identify Hon Chuan’s success factors, challenges and necessary capabilities for future development and then comprehend why it is important to upgrade from OEM to OBM; and learn how to develop beverage brands in emerging markets. Supplementary materials Teaching Notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes. Subject code CSS 5: International Business.

Is Hong Kong ready for accounting education reform: an analysis of tri-partite views

2014 ◽  
Vol 27 (3) ◽  
pp. 249-265 ◽  
Author(s):  
Theodore T.Y. Chen
Keyword(s):  
Hong Kong ◽  
Education Reform ◽  
Financial Reporting ◽  
Accounting Education ◽  
Accounting Firms ◽  
Content Type ◽  
The Usa ◽  
Accounting Practitioners ◽  
The Uk ◽  
Big Four

Purpose – The purpose of this study is to determine whether Hong Kong is ready for accounting education reform. Design/methodology/approach – The approach for this study is using a Likert-scale questionnaire for the academic institutions, the Hong Kong Institute of Certified Public Accountants and the big four accounting firms, followed by detailed follow-up interviews with each. Findings – There is general agreement among accounting academics and the profession that the Accounting Education Change Commission initiatives should be adopted in Hong Kong. Hong Kong accounting academics in public institutions do not oppose to a balance between teaching and research, but would oppose to an emphasis of teaching over research. This is important as an overemphasis on research could mean less time for teaching and curriculum development. The big four accounting firms are either happy with the way Hong Kong universities have been educating the accounting graduates or have no complaints against them. This is also important as an urge for accounting education reform usually comes from the practitioners as in the USA. Originality/value – The USA was the first country that saw the need for accounting education reform as accounting practitioners felt that curriculum and pedagogical considerations placed heavy emphasis on the technical aspects of accounting at the expense of a general, broad-based education. Similar needs for change were also found in the UK and Australia. As Hong Kong is one of the world’s major financial centres with a large securities exchange, there is a great deal of emphasis on accounting standards, financial reporting, corporate governance, etc., and hence the importance of accounting education. Is Hong Kong ready for the change?

scholarly journals Implications of divergences in adult protection legislation

2016 ◽  
Vol 18 (3) ◽  
pp. 149-160 ◽  
Author(s):  
Lorna Montgomery ◽  
Janet Anand ◽  
Kathryn Mackay ◽  
Brian Taylor ◽  
Katherine C. Pearson ◽  
...  
Keyword(s):  
Design Methodology ◽  
Elder Abuse ◽  
Consensus Model ◽  
Content Type ◽  
Legal Responses ◽  
The Usa ◽  
Protection Legislation ◽  
The Uk ◽  
Practical Implications ◽  
Adult Protection

Purpose – The purpose of this paper is to explore the similarities and differences of legal responses to older adults who may be at risk of harm or abuse in the UK, Ireland, Australia and the USA. Design/methodology/approach – The authors draw upon a review of elder abuse and adult protection undertaken on behalf of the commissioner for older people in Northern Ireland. This paper focusses on the desk top mapping of the different legal approaches and draws upon wider literature to frame the discussion of the relative strengths and weaknesses of the different legal responses. Findings – Arguments exist both for and against each legal approach. Differences in defining the scope and powers of adult protection legislation in the UK and internationally are highlighted. Research limitations/implications – This review was undertaken in late 2013; while the authors have updated the mapping to take account of subsequent changes, some statutory guidance is not yet available. While the expertise of a group of experienced professionals in the field of adult safeguarding was utilized, it was not feasible to employ a formal survey or consensus model. Practical implications – Some countries have already introduced APL and others are considering doing so. The potential advantages and challenges of introducing APL are highlighted. Social implications – The introduction of legislation may give professionals increased powers to prevent and reduce abuse of adults, but this would also change the dynamic of relationships within families and between families and professionals. Originality/value – This paper provides an accessible discussion of APL across the UK and internationally which to date has been lacking from the literature.

scholarly journals International new ventures market expansion through collaborative entry modes

2018 ◽  
Vol 35 (6) ◽  
pp. 890-913 ◽  
Author(s):  
Pushyarag N. Puthusserry ◽  
Zaheer Khan ◽  
Peter Rodgers
Keyword(s):  
Small And Medium Enterprises ◽  
New Ventures ◽  
Entry Mode ◽  
Foreign Market ◽  
International New Ventures ◽  
Structured Interviews ◽  
Entry Modes ◽  
Content Type ◽  
Market Expansion ◽  
The Uk

PurposeThe purpose of this paper is to examine the role that different collaborative entry modes play in how international new ventures (INVs) expand into international markets.Design/methodology/approachThe paper’s arguments are based on the INVs and social network literatures. In order to investigate the entry modes adopted by British and Indian small and medium information and communication technology (ICT) firms into each other’s markets, the paper outlines the results of qualitative semi-structured interviews with the key decision makers of ten British and ten Indian ICT firms.FindingsThe findings contribute to the relatively under-researched area of how INVs enter foreign markets through collaborative entry mode. The findings suggest that INVs utilize both equity and non-equity modes of collaboration to expand their international operations. The findings also indicate that financial and non-financial resources always limit the market expansion and internationalization of such companies. Against this background, the INVs rely on building collaboration as one of the safest methods for foreign market expansion and successful internationalization. The collaborative entry mode is enhanced by entrepreneurs’ prior experience, social ties and knowledge of the foreign market.Research limitations/implicationsSet against the backdrop of an ever-increasing trend of internationalization of small and medium enterprises (SMEs), the paper offers important implications for understanding the conditions and factors behind the choice of collaborative and non-collaborative entry modes by INVs in particular and SMEs more broadly.Originality/valueThe paper is one of the few studies that have examined the role of collaborative entry modes choice adopted by INVs from two of the largest economies – the UK and India.

The impact of business networks on foreign subsidiaries development

IMP Journal ◽  
2018 ◽  
Vol 12 (3) ◽  
pp. 427-443
Author(s):  
Enrico Baraldi ◽  
Francesco Ciabuschi ◽  
Olof Lindahl ◽  
Andrea Perna ◽  
Gian Luca Gregori
Keyword(s):  
Single Case ◽  
Foreign Market ◽  
Business Networks ◽  
International Expansion ◽  
Content Type ◽  
Fine Grained ◽  
Automatic Control Systems ◽  
Industrial Networks ◽  
The Impact

Purpose The purpose of this paper is to explore two specific areas pertaining to industrial networks and international business (IB). First, the authors look at how business relationships influence the internationalization in time, from the establishment of the first subsidiary in a foreign market to the following ones, and in space, that is, across different markets. Second, the authors investigate how an increasing external network dependence of subsidiaries in their internationalization may cause a detachment of a subsidiary from the mother company as its knowledge becomes insufficient to guide a subsidiary’s internationalization. Design/methodology/approach This paper utilizes an exploratory, longitudinal, single-case study of Loccioni – a manufacturer of measuring and automatic control systems for industrial customers – to illustrate the specific dynamics of the influences of industrial networks on the internationalization of subsidiaries. Findings The case study helps to elucidate the roles, entailing also free will and own initiative, of small suppliers’ subsidiaries which operate inside several global factories, and how “surfing” on many different global factories, by means of several local subsidiaries, actually supports these suppliers’ own international developments. This notion adds to our understanding of the global factory phenomenon a supplier focus that stresses how the role of suppliers is not merely that of being passive recipients of activities and directions from a focal orchestrating firm, but can also be that of initiative-takers themselves. Originality/value The paper contributes to the IMP tradition by providing a multi-layered and geographically more fine-grained view of the network embedding companies that operate on internationalized markets. This paper thereby sheds light on a less investigated area of research within the IMP tradition: the link between internationalization in different countries and the interconnectedness between the industrial networks spanning these countries. At the same time, this paper contributes to IB theories by showing how a late-internationalizing SME can enter highly international markets by “plugging into” several established “Global Factories” as a way to exploit further opportunities for international expansion.

Automatic enrolment to pension plans in small organisations: a research agenda

2019 ◽  
Vol 41 (1) ◽  
pp. 142-157 ◽  
Author(s):  
Maureen Maloney ◽  
Alma McCarthy
Keyword(s):  
Firm Size ◽  
Pension Plans ◽  
Occupational Pension ◽  
Pension Policy ◽  
Policy Makers ◽  
Research Attention ◽  
Content Type ◽  
The Usa ◽  
The Uk ◽  
Small Employers

PurposeThe purpose of this paper is to analyse how firm size impacts pension workforce coverage with a particular focus on automatic enrolment (AE) to pension plans in small organisations.Design/methodology/approachThe paper examines the alignment of government AE interests with those of small employers, their employees and pension providers to better understand how firm size impacts pension workforce coverage.FindingsThe alignment of interests between stakeholders (government, pension providers, employers and employees) differs between large and small organisations, and empirical findings from large organisations cannot be assumed to apply in small organisations.Research limitations/implicationsThe paper calls attention to the need for future empirical research and identifies a number of research questions for further analysis to examine how AE impacts pension participation in small organisations and advance the field.Originality/valueThe policy of automatically enroling employees into occupational pension plans, recently legislated for all eligible workers in the UK and under consideration in the USA and Ireland, was developed from research conducted in a small number of large organisations. Pension coverage is particularly inadequate for the large number of employees working in small organisations (1–49 employees). However, little research attention has been focussed on pensions in small organisations with pension policy makers assuming that legislated AE will work as effectively in small organisations as it did in large organisations. This paper addresses this gap in the field.

scholarly journals Digital curation: the development of a discipline within information science

2018 ◽  
Vol 74 (6) ◽  
pp. 1318-1338 ◽  
Author(s):  
Sarah Higgins
Keyword(s):  
Information Science ◽  
Theoretical Models ◽  
Digital Information ◽  
Content Type ◽  
Digital Curation ◽  
The Usa ◽  
The Uk ◽  
Financial Ecology

Purpose Digital curation addresses the technical, administrative and financial ecology required to ensure that digital information remains accessible and usable over the long term. The purpose of this paper is to trace digital curation’s disciplinary emergence and examine its position within the information sciences domain in terms of theoretical principles, using a case study of developments in the UK and the USA. Design/methodology/approach Theoretical principles regarding disciplinary development and the identity of information science as a discipline are applied to a case study of the development of digital curation in the UK and the USA to identify the maturity of digital curation and its position in the information science gamut. Findings Digital curation is identified as a mature discipline which is a sub-meta-discipline of information science. As such digital curation has reach across all disciplines and sub-disciplines of information science and has the potential to become the overarching paradigm. Practical implications These findings could influence digital curation’s development from applied discipline to profession within both its educational and professional domains. Originality/value The disciplinary development of digital curation within dominant theoretical models has not hitherto been articulated.

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