Contemporary Challenges to International Business (Academy of International Business)

322 Pages·2016·1.71 MB·English

by  Kevin Ibeh

Contemporary Challenges to
International Business
Edited by
Kevin Ibeh
Professor of Marketing and International Business, the University of Strathclyde, UK
and
Sheena Davies
Senior Lecturer in Strategic Management, the University of Portsmouth, UK
Selection and editorial content © Kevin Ibeh and Sheena Davies 2009
Foreword © Frank McDonald 2009
Individual chapters © contributors 2009
All rights reserved. No reproduction, copy or transmission of this
publication may be made without written permission.
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work in accordance with the Copyright, Designs and Patents Act 1988.
First published 2009 by
PALGRAVE MACMILLAN
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ISBN-10: 0–230–21845–8 hardback
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Printed and bound in Great Britain by
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Contents
List of Illustrations vii
List of Acronyms ix
Acknowledgements xii
Foreword xiii
Notes on Contributors xiv
1 Perspectives on Contemporary Challenges to International Business 1
Kevin Ibeh and Sheena Davies
Part I Cross-Border Management and
Institutional Challenges
2 The Challenge of Managing Employee Tenure in China 13
Angelika Zimmermann, Xiaohui Liu and Trevor Buck
3 Organizational Identification and Commitment Following
a Cross-Border Acquisition 32
Mélanie Elina Raukko
4 Cross-Border Transfer of Employment Relations Approaches:
Country-of-Origin Effects and the Level and Type of
Industry Internationalization 52
Heinz-Josef Tüselmann, Frank McDonald, Matthew Allen,
Sougand Golesorkhi and Despoina Filiou
5 Tensions Arising from Process of Transferring HRM Practices
across Borders: The Case of Taiwanese MNCs in the UK 68
Yi-Ying Chang, Kamel Mellahi and Adrian John Wilkinson
Part II SMEs’ Resource-Related Challenges
6 Micromultinationals: Transcending Resource Challenges in
International Business 85
Kevin Ibeh, Oliver Borchert and Colin Wheeler
7 Survival and Failure of Born Globals:
The Case of Software Firms 106
Mika Gabrielsson and Peter Gabrielsson
v
vi Contents
8 T he Challenge of Accelerated International Growth:
A Focus on Winners and Losers in the Finnish Software Sector 126
Niina Nummela, Sami Saarenketo, Jussi Hätönen and Mika Ruokonen
9 I nternational New Ventures and the Development of Partnerships:
A Social Capital Approach 148
Arild Aspelund, Roger Sørheim and Magne Sivert Berg
10 Clustering and the Internationalization of SMEs in
the Media Industry 164
Gary Cook and Naresh R. Pandit
Part III Emerging Market Challenges
11 L earning in International Joint Ventures in Central and
Eastern European Countries: System of Innovation Approach 183
Irina Jormanainen
12 Returning Entrepreneurs vs Indigenous Entrepreneurs:
An Investigation of High Technology SMEs in Emerging Markets 200
Ou Dai and Xiaohui Liu
13 T he Emergence of Low-Cost Airlines in Africa:
A Preliminary Analysis of Internal and External Drivers 218
Joseph Amankwah-Amoah and Yaw A. Debrah
14 Re-examining Women’s International Management Experiences:
A Middle Eastern Perspective 232
Beverly Dawn Metcalfe, Kate Hutchings and Brian Cooper
Part IV Emergent Challenges
15 Trends in International Terrorism against Business Targets 251
Andrew Lee
16 The Automotive Industry and Environmental Regulations:
Challenges to Corporate Political Activities of Multinational
Enterprises in the European Union 269
Sigrun M. Wagner
17 Intra-Community Fraud among UK and German Expatriate
Entrepreneurs in Spain: A Trust and
Social Networks-Based Explanation 285
Andreas Hoecht
Index 297
Illustrations
Tables
2.1 R elationships of nationality and tenure with
HR practices and control variables 22
2.2 R elationships between HR practices 23
3.1 Scales and their reliability 39
3.2 C orrelations between organizational identification and
commitment towards the target and acquiring organizations 45
4.1 Nationality-of-ownership differences in
employment relations approaches 60
4.2 I ndustry internationalization characteristics and
employment relations in German subsidiaries 63
6.1 Typical characteristics of micromultinationals and
conventional multinationals 86
6.2 Summary of key SME-FDI research 87
6.3 Profiles of previously studied micromultinationals 90
6.4 Success factors of previously studied micromultinationals 91
6.5 Profiles and success factors of Canadian micromultinationals 97
7.1 Case descriptions 113
7.2 Founders and their experience and the early internationalization 117
7.3 Resources, capabilities and lateral rigidity 119
8.1 Cross-case analysis 143
10.1 Logistic regression for probability of engaging in
importing and exporting 170
10.2 Heckman two-step model of export intensity second step results 172
10.3 Heckman two-step model of import intensity second step results 173
10.4 Negative binomial regressions of number of export and
import markets served 174
11.1 Number of students in tertiary education
(percentage of total population) 190
11.2 Number of foreign US patents by institutional sectors,
1969–1994 (percentage) 191
11.3 Sectoral distribution of IJVs in manufacturing industries in
Russia, Czech Republic, Poland and Hungary (percentage) 193
11.4 Indicators of economic development in transition economies and
developed countries 195
12.1 Correlation matrix and descriptive statistics 210
12.2 The dependent variable: business performance (BP) 211
13.1 Sample route networks of LCCs in Africa 221
14.1 HDI, GDI and GEM rankings 235
vii
viii Illustrations
14.2 Gender and employment measures 235
15.1 Types of target 255
15.2 R egional trends in terrorism attacks against business targets
compared to the Lloyds survey of perceived threat to businesses 265
16.1 Interview guide 275
16.2 Overview of distribution of interview partners 276
16.3 M atrix of corporate political activities across cases and
countries (less/medium/high and yes/no, blank) 279
Figures
2.1 Nationality and tenure (a) 24
2.2 Nationality and tenure (b) 24
3.1 The development of organizational identification 42
3.2 T he development of commitment towards the target and
the acquiring company 43
3.3 T arget identification and commitment and acquirer identification in
relation to low, medium and high acquirer commitment
(survey May 2007 total n (cid:2) 180) 46
3.4 T he development of organizational identification and
commitment during the early post-acquisition integration phase 47
7.1 Born global trajectories 107
7.2 Framework for survival and growth of born globals 108
8.1 The internationalization process of MobileAd 133
8.2 The internationalization process of eDiary 134
8.3 The internationalization process of 4mobile 136
8.4 The internationalization process of mNet 138
8.5 The internationalization process of mCon 139
8.6 The internationalization process of ServSystem 141
9.1 How the dimensions relate to each other 150
9.2 Propositions on the role of social capital in
the internationalization of international new ventures 161
11.1 The impact of the SI on the scope and
outcome of learning in IJVs 186
13.1 A proposed framework of the emergence of
low-cost airlines in Africa 223
15.1 Trends in international terrorism against
business targets 1968–2008 by region 259
15.2 T rends in international terrorism against
business targets 1968–2008 by type of target 261
15.3 T rends in international terrorism against
business targets 1968–2008 by tactic used 263
15.4 Trends in international terrorism against
business targets 1968–2008 by weapon used 264
16.1 Resource-based determinants of MNE political activities 273
16.2 The societal triangle – triangulating corporate political activities 274
Acronyms
ACQ Acquiring Organization
ACEA Association des Constructeurs Européen d’Automobiles
ARD Annual Respondents’ Database
B2B Business to Business
BBC British Broadcasting Corporation
BI Born International
BG Born Global
BP Business Performance
BS Business System
CAA Civil Aviation Authority
CEE Central Eastern European
CEO Chief Executive Officer
CMO Chief Marketing Officer
CoO Country of Origin
COO Chief Operating Officer
CO Carbon Dioxide
2
CPA Corporate Political Activities
DTI Department of Trade and Industry
EBITDA Earnings before Interest, Tax, Depreciation and Amortization
EC European Commission
ECAM European Common Aviation Market
EJV Equity Joint Venture
ELV End of Life Vehicles
ER Employment Relations
EU European Union
FTV Film and Television Services
FDI Foreign Direct Investment
FIE Foreign Invested Enterprises
GDI Gender Development Indicator
GDP Gross Domestic Product
GTD Global Terrorism Database
HDI Human Development Indicator
HIS High Involvement Systems
HPWS High Performance Work Systems
HQ Headquarters
HR Human Resources
HRM Human Resource Management
IB International Business
ICT Information Communication Technology
IHRM International Human Resource Management
ix
x Acronyms
IJV International Joint Venture
ILO International Labour Office
IM International Management
IMF International Monetary Fund
INV International New Venture
IPO Initial Public Offering
IR Industrial Relations
ISCO International Standard Classification of Occupations
IT Information Technology
JAMA Japanese Automobile Manufacturers’ Association
JV Joint Venture
KAMA Korean Automobile Manufacturers’ Association
KBV Knowledge Based View
KSA Kingdom of Saudi Arabia
LCC Low-Cost Carriers (Airlines)
LE Larger Enterprises
LTO Long Term Orientation
M&A Mergers and Acquisitions
MDG Millennium Development Goals
ME Middle East
MENA Middle East and North Africa
MEP Member of European Parliament
MIPT Memorial Institute for the Prevention of Terrorism
mMNE Micromultinational
MNC Multinational Company (is also known as Multinational
Corporation)
MNE Multinational Enterprise
NACE Nomenclature générale des activités Économiques dans les
Communautés européennes
NGO Non Governmental Organization
NIE Newly Industrialized Countries
NOK Norwegian Kroner
NTBF New Technology-based Firms
OC Organizational Commitment
OCQ Organizational Commitment Questionnaire
OECD Organization for Economic Cooperation and Development
OEM Original Equipment Manufacturer
OID Organizational Identification
OSAC Overseas Security Advisory Council
PAC Political Action Committee
PDA Personal Digital Assistant
PRC People’s Republic of China
R&D Research and Development
RBT Resource Based Theory
RBV Resource Based View
Acronyms xi
RDE Remote Detonated Explosives
RMB Renminbi (Chinese currency – Yuan)
SCA Sustainable Competitive Advantage
SI System of Innovation
SINTEF Skandinavias største uavhengige forskningsorganisasjon (the largest
independent research organization in Scandinavia)
SME Small/Medium Enterprise
SOA State Owned Airlines
SOE State Owned Enterprise
TARG Target Organization
TKB Terrorism Knowledge Base
UAE United Arab Emirates
UCDP Uppsala Conflict Data Programme
UNCTAD United Nations Conference on Trade and Development
UNDO United Nations Development Organization
UNDP United Nations Development Program
UNIFEM United Nations Development Fund for Women
UM Uppsala School
US United States
VA Value Added
VAA Value Added Activities
WAP Wireless Access Protocol
WERS Workplace Employment Survey
WTO World Trade Organization
YD Yamoussoukro Declaration
WOS Wholly Owned Subsidiary
Acknowledgements
Many thanks to the Portsmouth Business School of the University of Portsmouth
for hosting the 35th Annual Conference of the Academy of International
Business, United Kingdom and Ireland (UKI) Chapter. Thanks in particular to
Professor Colin Wheeler for organizing the Conference, the staff of the Business
School, especially Valerie Anderson, Chris Fill, Rosie Booker, Grace Cheng and
Paul Krycler, for co-ordinating operations and compiling the proceedings, and
Ray French for his assistance at the initial stage of the editing process.
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