International business strategy: development of an integrated framework and typology

2020 ◽  
Vol 30 (3) ◽  
pp. 345-373 ◽  
Author(s):  
Som Sekhar Bhattacharyya

Purpose The purpose of this study is international business strategy (IBS) has evolved into a complex and vast domain of study. Given this fact, the author first proposed a set of screens that a firm’s IBS manager was required to assess before venturing into a foreign country. Then the author developed an integrated IBS framework to secure a holistic view regarding IBS. Finally, the author proposed a typology to classify IBS archetypes. Design/methodology/approach The author undertook a systematic and integrated literature review of IBS literature. The literature review was carried out with a conceptual perspective in mind. Incremental and argumentative logic was applied to develop the integrated IBS framework from a wide domain of literature. Furthermore, the typology on IBS initiatives was also developed based upon a classification scheme developed in the framework. Findings The author developed the integrated conceptual framework based upon six building blocks which were conceptual elements. The framework consisted of the antecedent variable as internationally deployable organizational resources and capabilities (IDORC), the mediating variables as internationally implementable organizational process (IIOP), internationally executable practices and activities (IEPA) and international market product service offerings (IMPSO). The moderating variable was international initiatives management direction and control (IIMDC), while the dependent variable was international market performance assessment (IMPA). Thus, IDORC, IIOP, IEPA, IMPSA, IIMDC and IMPA were the building blocks of IBS framework. There were 12 types of IBS typologies based upon the dominant role played by the home and host countries in the six building block elements of IBS mentioned. The 12 typologies were domestic reproduction (DR), foreign country centric offerings (FCCO), international offerings perspective (IOP), foreign country-driven activities (FCDA), international-driven activities (IDA), foreign country-driven process (FCDP), international-driven process (IDP), foreign country initiatives domestically controlled (FCIDC), international initiatives domestically controlled (IIDC), international initiatives home-dominant foreign dyad controlled (IIHDFDC), international independent initiative (III) and international coordinated network approach (ICNA). Research limitations/implications In this study, an integrated framework on IBS was developed. In the theoretical framework, antecedent (DORC), mediating (IIOP, IEPA and IMPSA), moderating (IIMDC) and dependent variables (IMPA) have been incorporated. This was the first theoretical contribution of this paper toward IBS theorization. Second contribution of this paper was toward typology development regarding IBS initiatives archetypes. The 12 typologies were DR, FCCO, IOP, FCDA, IDA, FCDP, IDP, FCIDC, IIDC, IHDFDC, III and ICNA. The IBS typology is based upon the six constituent concepts developed from literature. Practical implications Managers who are responsible for the planning and execution of IBS initiatives could from the integrated IBS framework comprehend what would be the steps required to plan and execute an IBS strategy in its entirety for success in foreign markets. Furthermore, managers could understand the various mediation and moderation roles regarding the IBS factors present in any firm internationalization effort. This would help managers not only to amplify the mediating effects but also to tweak the efforts of moderation so as to arrive at better internationalization performance. The section on typology on IBS initiatives would help managers to secure a better fit for the IBS initiative of the firm. The typology would anchor managerial perspectives regarding how the home country firm organizational contributions on resources and capabilities, processes, practice activities and products and services need to be offered in foreign countries. Originality/value To the best of author’s knowledge, this is one of the first frameworks regarding an integrated perspective on IBS and a typology on IBS based upon a set of antecedent (resources and capabilities), mediation (process, activities and market offerings), moderation (management control) and dependent (performance) variables building on firm resource-based view perspectives.

2016 ◽  
Vol 11 (1) ◽  
pp. 89-110 ◽  
Author(s):  
Karim Marini Thomé ◽  
Janann Joslin Medeiros

Purpose – The purpose of this paper is to identify and describe the drivers of trading company strategy that explain trading company success in international business. Design/methodology/approach – The strategy tripod that results from combining the industry-, resource- and institution-based views, each of which proposes specific drivers of strategic success, was used as the framework for investigating, in a longitudinal perspective, the drivers of the strategy of a trading company and its success in emerging economies. Data were collected using in-depth interviews, document analysis and non-participant observation and analyzed using content analysis techniques. Findings – Rather than a single driver, the authors found that strategic choices were driven at times by the demands of industrial competitiveness, at times by firm resources and capabilities, and at times by institutional conditions. There was evidence neither of a linear chronological order for these drivers, nor of driver obsolescence. On the contrary, findings suggest that drivers are cumulative and interactive. Changes in organizational resources and capabilities or in competitive or institutional environments can force review and re-thinking of strategic objectives. Research limitations/implications – Generalization is affected by the fact that the study focusses on the experience of one individual trading company. Practical implications – From a pragmatic, managerially oriented perspective, the findings show the importance to be alert to all the tripod legs over time, and not belittle the institutional context. This fact is noted by the data, which not realize a timeline or order between the drivers and the strategies adopted by the firm. Originality/value – The paper is of value in showing the drivers of trading company strategy and the determinants of trading company success in emerging economies using a longitudinal perspective rather than the more usual sectional perspective. In addition, the study is original in simultaneously investigating all three legs of the strategy tripod and providing empirical evidence about how the respective drivers interact over time.


Author(s):  
Gabriel R. G. Benito ◽  
Bent Petersen ◽  
Lawrence S. Welch

This chapter takes stock of fifty years of research on mode dynamics—that is, the decisions to switch and add operation modes in a foreign country—as a central international business strategy phenomenon. Numerous studies have advanced knowledge about the various forms of mode dynamics and their underlying drivers, especially regarding mode switches. However, this review of the research also reveals that understanding of the phenomenon of mode additions needs further development. The chapter proposes a theoretical framework for understanding mode additions and provides the example of modularization as an illustration of a mechanism that may help improve the cost–benefit balance of mode switches and additions.


2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sheshadri Chatterjee ◽  
Ranjan Chaudhuri ◽  
Demetris Vrontis ◽  
Alkis Thrassou

Purpose The purpose of this study is to examine the impact of dynamic capability (DC) of organizations on international expansion and further investigate the moderating role of environmental dynamism in the same context. Design/methodology/approach Based on the dynamic capability view (DCV) theory and related literature on international business strategy, a theoretical model is developed. This model is subsequently validated with the structural equation modelling technique through a survey of 324 respondents from Indian organizations. The study also examines the moderating impacts using the multigroup analysis method. Findings The study finds that organizations’ sensing, seizing and transformational capabilities impact positively and significantly on international marketing capability, as well as on technological innovation capability, which positively and significantly impacts organizations’ international expansion ability. The study also finds that there is a significant moderating impact of environmental dynamism on organizations’ international expansion. Research limitations/implications This study has provided a unique theoretical model which can explain the factors impacting organizations’ ability toward international expansion. The study also provides vital insights and directions to practitioners, researchers and academicians on the international business strategy for the expansion of organizations. The theoretical model, however, cannot be generalized, as data was taken only from Indian firms. Originality/value The study adds to the body of knowledge of international business strategy, international marketing strategy and technological innovation, adding to the scant research on the relationship between organizations’ DC and the international expansion strategy through a unique and tested model with an explanative power of 73%.


2017 ◽  
Vol 47 (2) ◽  
pp. 250-264 ◽  
Author(s):  
Chulatep Senivongse ◽  
Alex Bennet ◽  
Stefania Mariano

Purpose The purpose of this paper is to demonstrate the value of using a systematic literature review to develop an integrated framework for information and knowledge management systems. Design/methodology/approach First, the systematic literature review method is introduced, differentiating it from traditional literature reviews in terms of value-added and limitations. Second, this methodology is used in a research application focused on absorptive capacity internal capabilities with regard to the processes of acquisition, assimilation, transformation and exploitation. Third, an integrated framework for information and knowledge management systems is developed from this application. Findings The systematic literature review approach provides a rigor that can assist in reducing researcher bias while simultaneously enabling the definition of a precise scope of review, with a clear explanation of selection criteria with the objective to find and review all the studies that are relevant to the search definitions. As a research method, it effectively supports a qualitative, quantitative or mixed methodology. Research limitations/implications This methodology was applied to one specific area of research. Specific limitations include the availability of articles in subscribed databases and the analytical capabilities of the tools used for text mining and analytics. Originality/value This paper demonstrates the usefulness of the systematic literature review methodology in developing an integrated framework for analysis.


2017 ◽  
Vol 25 (2) ◽  
pp. 233-250 ◽  
Author(s):  
Sangeetha Lakshman ◽  
C. Lakshman ◽  
Christophe Estay

Purpose The purpose of this paper is to examine the relationship of business strategies with executive staffing of multinational companies (MNCs). Design/methodology/approach Based on in-depth interviews conducted with top executives of 22 MNCs’, the authors identify important connections between international business strategies and staffing orientation. The authors used the qualitative research approach of building theory from interviews; thus, creating theoretical propositions from empirical evidence. Findings The authors find that when the pressure for global integration is high, MNCs use more parent-country national (PCNs) (ethnocentric staffing) as against the use of host-country managers (HCNs) (polycentric staffing) when this pressure is low. Additionally, MNCs using a global strategy are more likely to use an ethnocentric staffing approach, those using a multi-domestic strategy use a polycentric approach and firms using transnational strategy adopt a mix of ethnocentric and polycentric approaches. Research limitations/implications Although the authors derive theoretical patterns based on rich qualitative data, their sample is relatively small and comprises mostly of French MNCs. Generalizability to a broader context is limited. However, the authors’ findings have critical implications for future research. Practical implications The authors’ findings provide critical managerial implications for MNCs in matching their HR strategies with business strategies. These are important for effective strategy implementation. Originality/value Although MNC staffing orientations have been studied for a long time, their relationship to international business strategies is still not clearly understood. The authors contribute to the literature by investigating the relationship between MNCs’ business strategy types with staffing orientations.


2014 ◽  
Vol 4 (5) ◽  
pp. 1-12 ◽  
Author(s):  
Hamad A. Al Ali ◽  
Syed Zamberi Ahmad

Subject area International business and/or strategic management. Study level/applicability This case is useful for undergraduate and postgraduate level students majoring in international business management and/or strategic management. Case overview Etihad Airways was established in 2003, in Abu Dhabi, United Arab Emirates (UAE) with the UAE government as sole owner. It is the national carrier of UAE with Abu Dhabi as its centre of operations. Etihad is recognized as a fast-growing player in the aviation industry, and has become one of the dominant international players in the industry in a relatively short time. Etihad's fleet now contains more than 67 planes, with more than 1,300 flights per week to diverse destinations across the Middle East, Africa, Europe, Asia, Australia and North America. The company describes its business strategy as “sustainable growth”. Looking through a practitioner's lens, strategic partnerships have been the critical activities through which Etihad has delivered its strategy. The purpose of this case study is therefore to elaborate on its major and successful partnerships and the critical benefits of these. Secondary data were collected from credible sources including academic studies, relevant Etihad publications and industry reports published by official aviation associations. Expected learning outcomes Students will be able to understand the theory of strategic partnerships, their roles and benefits and critically evaluate the pre-staging “requirements” of such partnerships. In this case, the specific learning outcome of it is to help students to understand the importance of successful strategic partnerships for Etihad Airlines and how partnership strategies can improve the performance of Etihad Airlines. 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.


2014 ◽  
Vol 8 (2) ◽  
pp. 168-186 ◽  
Author(s):  
Syed Zamberi Ahmad

Purpose – The purpose of this paper is to investigate the international business strategy, key driving factors and the major barriers that may hinder the internationalisation progress of Malaysian small and medium-sized enterprises (SMEs). Design/methodology/approach – Based on the aims of the study, the paper encompasses both quantitative and qualitative data. For quantitative data, structured questionnaires were used, and a total of 216 SMEs that engaged in international business participated using purposeful sampling, covering all the states in Peninsular Malaysia. For the collection of qualitative data, the study involved in-depth interviews with 25 owners/managers of SMEs. Findings – The findings indicate that the motives of SMEs for international expansion are varied, and that SMEs still face many institutional challenges, which have prevented them from making a greater contribution. Research limitations/implications – Due to lack of resources, firms from West Malaysia were included. West Malaysian firms may well possess characteristics concerning the challenges and issues to internationalisation that are unique to their region. Originality/value – The paper addresses a knowledge gap in respect of the internationalisation process of SMEs in the context of Southeast Asia. The findings of this paper will have relevance for policymaking and supportive measures at the government level to create an environment that will stimulate the competitiveness of SMEs in their attempts for internationalisation.


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