Relationship Between the Relocation and Operation of Global Firms

The authors address the importance of the operation of manufacturing networks in order to explain why a company brings its previously offshored facilities back. Fundamentally, this chapter stresses the relevance of network operations in the context of relocation, and hence, the linkage of network-manufacturing capabilities to the reshoring phenomenon. First, it focuses on investigating the relevance of strategic objective of international manufacturing to the management/network operations of international manufacturing network (IMN). Second, it explores the role of strategic capabilities of network-manufacturing on the phenomenon of reshoring. The empirical foundation of this research builds on data from multiple in-depth interviews at companies' headquarters in Spain and Sweden. The results showed the relevance of strategic capabilities of network-manufacturing to reshoring. The authors also provide the guidance for decision making in the operation of international manufacturing.

Proposing an Integrative Model for Reshoring Antecedents

The economic reasons that dictated offshoring for countries such as China are vanishing. Customers are increasingly demanding and more informed about the origin and methods of production of the products they buy, and governments are realizing the impact of manufacturing. This new reality is encouraging many companies to relocate their activities and, in some stances, returning manufacturing processes back to their home countries. This rather recent process, known as reshoring poses challenges of all kind with managerial implications in logistics, marketing, strategy, finances, commercial strategy, innovation, and human resources management. Reshoring antecedents are fundamental concepts for the understanding of the sources that may conduct those activities back home. This chapter takes one step in this direction and proposes a comprehensive model of the antecedents of reshoring that can be applied to a specific industry or sector. In particular, the authors examine the important role of economic, marketing, and social/political antecedents.

Causes of De-Internationalization

Until a few years ago, internationalization was seen as a self-feeding process, resulting from decisions based on accumulated knowledge. De-internationalization is not an option. However, the reality shows us that enterprises have done international divestment. To this date, the research on de-internationalization remains somehow scarce and needs additional research. The authors want to understand the causes of de-internationalization. They use the grounded theory methodology, studying six Portuguese cases that already have a process of de-internationalization. Five firms cooperate with, presenting six cases. The authors distinguish causes that occur before/after the internationalization process begin and causes related to firm or external to firm. One of the main causes of de-internationalization is the incorrect internationalization process. The Misfit Micro-Location (the wrong choice of place inside a determined country) is a very important cause, which means that, after choosing the country, it is necessary to choose the best place to be located.

The Restructuring of the Financial System in the 21st century

The financial system on the first decades of the 21st century followed the trend of the last decades of the 20th century with corporate restructuring and international financial markets integration and delocalization being oriented by profits and mergers and acquisitions. The global economy and financial structure changes, in the current century, derived from financial innovations, market deregulation, globalization, technology, market structure changes, regulatory reforms, and (re)formulation of central banks' monetary policy. Currently, the financial system is interconnected, interactive, interdependent, and became over-leveraged. The present chapter focuses on the analysis of the evolution of the financial system and the main determinants of global financial markets restructuring on last decades to explain the relevant changes verified in the financial system in the 21st century. After a literature review, an evaluative and descriptive macro analysis of the financial system is presented to study the process of restructuring of the financial system in the main developed economies.

Linking Intangible Resources and Competitive Advantage

The purpose of this chapter is to analyze the linkage between intangible resources and competitive advantage. The author uses a quantitative approach based on a survey data from 247 Portuguese small and medium-sized enterprises (SMEs) from the textile industry. Findings suggest that intangible resources have a positive and significant influence on competitive advantage, either by cost leadership or differentiation. This chapter presents further evidences of the strategies that SMEs managers should pursue and policy makers should promote. This study deepens our understanding and provides novel insights into strategic management literature, since it combines multiple factors and has obtained the importance of each construct in SMEs business growth.

Export Performance

The purpose of this chapter is to analyze the influence of absorptive capabilities on export performance. The author uses a quantitative research approach by conducting a study based on a survey data from 247 Portuguese small and medium-sized enterprises (SMEs) from the textile industry. Findings suggest that absorptive capabilities have a positive and significant influence on export performance. This chapter presents further evidences of the strategies that SMEs managers should pursue and policy makers should promote. This study deepens our understanding and provides novel insights into strategic management literature, since it combines multiple factors and has obtained the importance of each construct in SMEs business growth.

Reactivation or Collapse

This chapter is structured for contrasting how differentially firms applying strategies of contraction/reactivation reach converse results and how management models may impact the organizational life and success in these circumstances. It analyzes two organizations in difficult situation in Colombia (Aluminios Reynolds Santo Domingo and Hospital Niño Jesus in Barranquilla city), and it identifies strategies to be applied for maintaining alive these organizations, evaluates management styles accompanying the formulated strategies, and reveals the organizational denouement. In this work two styles for confronting turnaround are identified: classic, applied in a ruptured and aggressive way with strong reduction of direct cost; and inclusive, integrating members of the firm around the problem solution and socially building a strategy as a solution. For the empirical analysis, the case method is used accompanied by qualitative techniques as interviews, documental material, and observation.

Restructuring and Globalization of Telecommunications Industry

Restructuring and globalization are very important for every technology sector. It provides key competitive advantages to the companies over their rivals. Telecommunications sector is an important strategic segment of the modern economy. Telecommunications is also an advanced technology sector and its restructuring is essential to optimize its revenues. Now it has been evolved to information and communication technologies (ICT), which is the main driving force of growth worldwide. In fact, ICT has paved the way for modern globalization. Overall, ICT and ICT-enabled sectors are among the main contributors of global economy. This sector has passed through several restructuring and evolves continuously. Its globalization is obvious as it is the main technology which promotes globalization. In this chapter, the authors provide the restructuring of telecommunications sectors since the time of its inception in the early 19th century. They also analyzed the strategic changes that promote the restructuring and globalization of this sector.

Supply Chain Startups in India

Supply chain management (SCM) has become a critical business function. SCM has become such a specialized function that dedicated firms on SCM has emerged. Startups in SCM domain target to reduce the inefficiencies through technological interventions and innovative business models. This chapter focuses on 10 Indian supply chain startups. These startups were analyzed based on supply chain drivers, supply chain operation reference model (SCOR), and using business model canvas (BMC). The case data was collected through secondary sources and analyzed through the cross-case analysis. It was found that the SCM startups were focusing more on transportation driver. SCOR model analysis demonstrated that the SCM startups assisted in operational area of the SCM where they carried out operational activities and decision making. BMC analysis revealed that startups were asset light and resources held by these startups were the financial funding which the firm secured through venture capitalists and software development teams.

Outward US Foreign Direct Investment and Environmental Degradation

This chapter analyzes whether US outward foreign direct investment contributes to mitigating environmental degradation in host countries or not. This relationship is investigated within the environmental Kuznets curve framework, using dynamic panel data models which include trade openness and environmental regulation as controlling variables. The results lend support to the existence of an environmental Kuznets curve hypothesis. Moreover, the results indicate that capital expenditures from majority-owned foreign affiliates of US multinationals decrease carbon dioxide emissions per capita and provide support for the pollution halo hypothesis. The findings suggest that foreign direct investments carried out by firms with their headquarters based in the United States of America enhance the natural environment. These findings offer some support for host government policies offering generous financial incentives to attract environmentally friendly investments to improve environmental sustainability.