Internationalisation Strategies

258 Pages·1997·24.339 MB·English

by  George Chryssochoidis, Carla Millar, Jeremy Clegg (eds.)

INTERNATIONALISATION STRATEGIES
From the same publishers
INTERNATIONAL BUSINESS AND EUROPE IN TRANSITION
Edited by Fred Burton, Mo Yamin and Stephen Young
Internationalisation
Strategies
Edited by George Chryssochoidis, Carla Millar
and Jeremy Clegg
© Academy ofIntemational Business, UK Chapter 1997
Softcover reprint of the hardcover 1 st edition 1997
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First published 1997 by
MACMILLAN PRESS LTD
Houndmills. Basingstoke, Hampshire RG21 6XS
and London
Companies and representatives
throughout the world
ISBN 978-1-349-25355-5 ISBN 978-1-349-25353-1 (eBook)
DOI 10.1007/978-1-349-25353-1
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Published in the United States of America 1997 by
ST. MARTIN'S PRESS, INC.,
Scholarly and Reference Division
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ISBN 978-0-312-16407-2
Contents
List 0/ Figures vii
List 0/ Tables viii
Pre/ace XI
List 0/ Contributors XII
Ackllowledgemellts xiv
PART ONE ENVIRONMENTAL INFLUENCES
1 Introduction
George Chr)'ssochoidis, Carla Miliar and Jeremy Clegg 3
2 Trading BIoes, Trade Liberalisation and
Foreign Direct Investment
Roger Strange 19
3 Global Integration: Changing Bilateral Trade
and Investment Relations between Canada and the UK
Peter J. Buckle)" Christopher L. Pass and Kate Prescott 43
4 Internationalisation of Service Firms:
Strategie Considerations
Niklas Arvidsson 71
5 Industrial Restructuring and the Control
of 'Concentrations' in the European Market
Eleallor J. Morgall 91
6 National Culture, Corporate Culture and
Economic Performance: An Interdisciplinary Synthesis
and Implications for Internationalisation Strategy
Christos Nicolaidis and Carla Miliar 113
PART TWO INTERNATIONALISATION METHODS
7 International Franchising: Market versus Hierarchy 135
Fred BlIrtoll and Adam R. Cross
8 A Study of EC Firms' Choice of Entry Mode
into the Chinese Market: Licensing or Joint Ventures? 153
Wei-Pillg Wu
vi Contents
9 International Joint Ventures in China from a
Managerial Perspective: A Comparison between
Different Sources of Investment
Haochull Dong, Peter Jo Buckle)' and Hafiz Mirza 171
10 The Impact of Strategie Choice on the
Internationalisation of the Firm
Timoth)' Clark and Geoff Mallor 193
o)'
11 Global Procurement: A Strategy For
Improving International Business Competitiveness
Shan Rajagopal and Kenneth N. Bernard 207
Bibliog raph)' 227
Index 247
List of Figures
4.1 The relation between customisation, physical goods,
services and interaction between seiler and buyer'
during the production process 77
4.2 The internationalisation of a firm in relation to the
internationalisation of its business environment 80
6.1 Schein' s framework of organisational culture 123
6.2 Corporate culture: a synthetic view 126
7,1 Various structures of international franchise entries 140
7.2 Continuum of resource commitment to the local market 141
10.1 Between and within mode foreign market servicing shifts 198
11.1 A model of incremental internationalisation in the
purchasing process 211
11.2 A matrix of generic choices for global procurement
strategies 212
11.3 A typology of global sourcing strategies 213
11.4 A framework for developing aglobai sourcing strategy 215
11.5 Modes of international sourcing entry strategies 216
11.6 Profiling globalisation of procurement process
by country of domicile 223
List of Tables
1.1 Foreign direct investment stock, percentage distribution
for the leading regions of the world, 1980-1990 I I
2.1 A typology of the entrepreneurial motivations for
foreign direct investment 22
2.2 The effects of Iiberalisation measures on flows of foreign
direct investment into a trading bloc/common market 25
3.1 The sampIe of firms: firm codes 45
3.2 Summary of foreign market servicing strategies and
effects of regionalisation 48
5.1 National, community and international majority
acquisitions (inc\uding mergers), number and increases
in annual activity 92
5.2 Decisions after fuH proceedings (to I March 1993) 99
7.1 Characteristics of international franchising cited
in the literature 139
7.2 Principal differences between the licensing and
franchising entry modes 143
7.3 Some recommended terminology for international
franchising 144
8.1 Summary of hypotheses: joint ventures versus licensing 159
8.2 Results of logistic regressions for the choice between
Iicensing and joif!t ventures 163
9.1 SampIe pattern summary 177
9.2 Comparison of foreign partners' motivations
(Mann-Whitney test) 178
9.3 Comparison of local partners' motivations
(Mann-Whitney test) 179
9.4 Comparison of differences in selecting local partner
(Mann-Whitney test) 180
9.5 Comparison of differences in selecting foreign partner
(Mann-Whitney test) 181
9.6 Foreign partners' rates of control: comparison of the
differences (Mann-Whitney test) 183
9.7 Comparison of local and foreign partners' rates of
control in Group 2 (N=77) (WiIcoxon matched-pairs
signed-ranks test) 183
9.8 Comparison of local and foreign partners' rates
of control in Group I (N=37) (Wilcoxon matched-pairs
signed-ranks test) 184
Lists of Tab/es IX
9.9 Comparison of foreign partners' rates of conftict
(Mann-Whitney test) 186
9.10 Comparison of local and foreign partners' rates of conflict
(N= 114) (Wilcoxon matched-pairs signed-ranks test) 187
9.11 Comparison of partners' perceptions of IV performance
(Mann-Whitney test) 188
9.12 Comparison of local and foreign partners' perceptions of
IV performance (Wilcoxon matched-pairs signed-ranks test) 188
10.1 Foreign market servicing options 201
10.2 Types of foreign direct investment shifts 203
10.3 Types of mixed marketing approaches and their frequency 204
I \.1 Principal expectations regarding motivations for
internationalisation by country of domicile 222