When are international managers a cost effective solution? an exploratory study in a sample of spanish mncs

A common claim in the literature of expatriation is the one referring to the high costs of expatriation. In this paper, on the basis of transaction cost literature, we show how limited this approach is. In particular, we 'consider a set of costs that, although ignored in traditional expatriation literature, must be accounted for when an MNC is deciding on whether to recruit expatriates or local managers in its subsidiaries. These costs include selection, training and performance evaluation costs. We also formulate a series of hypotheses around the situations in which the total costs of recruiting expatriates are lower than those generated by local managers. We them test these hypotheses in a sample of 124 SpaniSh MNCs. The results of the study allow us to explain the apparent contradiction that, although businesses have a need to reduce costs, they continue to employ apparently costly practices such as expatriation

Accelerated Internationalisation: New Evidence from a late investor country

Recent studies are trying to adapt the explanation of the internationalisation process to new environmental conditions. By using cluster analysis and logit regressions in a sample of 271 Spanish export firms, this paper offers evidence of the existence of a group of firms that use a speed-up internationalisation process. The results obtained support the claim that substantial differences do exist between Fast and Gradual Internationalising firms. The firms included in the more international active group are characterised by: (1) a proactive attitude on the part of managers with regard to internationalisation activities, (b) a strategy based on marketing differentiation advantages and (c) strong relationships with clients and suppliers, which encourage or facilitate their international activities. These results may favour reflection upon what are the most important factors for achieving an active, international strategy and how to respond to these demands. From a politics perspective our research suggests several ways to stimulate the acceleration of the internationalisation process. Politicians must realise the importance of looking for ways of improving the promotion of business networks. The stimulation of relationships between firms will reduce the uncertainty associated with the risks of foreign operations and increase the international competitiveness of firms. Moreover, they should provide incentives for business leaders to adopt an increasingly positive attitude to the international market. Tax benefits and other incentives could be provided to increase the international work experience of managers and employees

La inseparabilidad y el grado de adaptación como determinantes de la internacionalización de las empresas de servicios

[email protected] [email protected] mayor parte de enfoques teóricos de internacionalización han surgido en el marco del sector industrial y, por tanto, algunas explicaciones podrían no ser generalizables al sector servicios en su globalidad. Por ello, las características sectoriales deben ser tenidas en cuenta en el análisis de los modos de entrada de las empresas de servicios, ya que es posible encontrar patrones de comportamiento muy diferentes no sólo con respecto a las empresas industriales sino también entre las propias empresas de servicios. En este trabajo se proponen la inseparabilidad de los servicios y el grado de adaptación a las necesidades del cliente como dimensiones clave para agrupar lo servicios debido a las importantes repercusiones que éstas tienen en un contexto internacional. A partir de un análisis de conglomerados no jerárquico aplicado a una muestra de 113 empresas de servicios españolas, en el trabajo se identifican cuatro grupos de servicios y se constata la existencia de algunas diferencias en los patrones de elección de métodos de entrada según la naturaleza del grupo analizado.The vast majority of theoretical approaches in internationalisation have emerged from manufacturing sector and, thus, some explanations may not be true in the whole service sector. This paper analyses the importance of sector characteristics in the entry mode choice and shows that there are different behaviours patterns not only among the service and manufacturing sectors but also among service firms. In this paper, we propose two characteristics of services, inseparability and customisation degree, as key dimensions to classify services because of their importance in the international arena. From a cluster analysis in a sample of 113 Spanish service firms, this paper identifies four groups of services and it provides evidence about the existence of some differences in the entry mode choice patterns according to the nature of the group being analysed

La influencia de las características y percepciones directivas en los nuevos modelos de internacionalización

En las economías desarrolladas y con el actual escenario competitivo, las pymes de los sectores industriales maduros están sometidas a una serie de fuerzas económicas que limitan su capacidad para subsistir. Factores como el endurecimiento de la competencia proveniente de los grandes productores asiáticos (China, India, Pakistán) y de los países de Europa del Este, el incremento espectacular del poder de negociación de los distribuidores o la desaparición del canal minorista y de los mercados referenciados en dólares (Camisón, 2001, Pla-Barber, et. al, 2007) han generado una alarmante disminución de empresas y empleos en estos sectores. Frente a este panorama poco alentador, existen soluciones que pueden favorecer las oportunas respuestas. Una de las estrategias que históricamente han utilizado las pymes para contrarrestar estas situaciones negativas ha sido la expansión internacional, sobre todo a través de la exportación en mercados cultural y geográficamente cercanos (Johanson y Vahlne, 1977). Sin embargo, se ha constatado en diferentes trabajos (Barker y Duhaime, 1997, Barker y Mone, 1998, Pearce y Robbins, 2008) que en estos sectores para hacer frente al nuevo entorno «globalizado e hipercompetitivo» son necesarias estrategias internacionales mucho más complejas que, en algunos casos, suponen plantearse la esencia misma de la empresa, aquello a lo que se dedica y, por tanto, son ajustes mucho más difíciles de implantar porque normalmente suponen cambios en los «límites» o «fronteras» de la empresa

Organisational learning capability, product innovation performance and export intensity

The hypothesis that managerial characteristics which facilitate the organisational learning process can provide firms with a basis for competitive advantage has received a great deal of attention. While there is evidence that organisational learning affects export intensity, we argue that intermediate variables, such as innovation, should be used in order to evaluate its impact in organisations. This study shows that firms with a higher organisational learning capability tend to be more innovative, and for this reason, they are more likely to export a higher share of their production. From a longitudinal perspective, we use structural equation modeling on a database from Italian and Spanish ceramic tile producers, worldwide leaders in terms of technology. The database combines primary and secondary data. The results support our theoretical conjectures. Findings improve our understanding of the antecedents of export intensity and are related to previous research

El offshoring en la empresa multinacional europea

En los últimos años el fenómeno del offshoring ha adquirido una gran importancia en la industria europea, especialmente en los sectores manufactureros. La complejidad de la estrategia, así como la necesidad de profundizar en aquellos aspectos que son de mayor interés para las empresas (factores determinantes de su elección y resultados de su implementación) justifican el interés de este trabajo. En este sentido, el objetivo de esta investigación consiste en validar si ciertas características propias de la empresa influyen en la decisión del tipo de offshoring a implementar (internal o external), así como comprobar si los resultados derivados de su uso difieren según el tipo de offshoring utilizado. A partir de una muestra de 156 multinacionales europeas, se verifica que ciertas características propias de la empresa no actúan como determinantes del tipo de offshoring, y se comprueba que, en términos de resultados empresariales, ningún tipo de offshoring es más beneficioso que otro. Aunque se observa que las razones que motivan el uso de un tipo de offshoring u otro son distintas. Sin embargo, los resultados obtenidos podrían servir de referencia para profundizar en el análisis del offshoring, por un lado, por la importancia que el uso de estas estrategias está teniendo en la actualidad, y, por otro, porque, como pone de manifiesto este trabajo, los resultados obtenidos hasta el momento únicamente analizan la dimensión externa de la estrategia (external offshoring), dejando fuera del análisis el offshoring realizado a través de filiales propias (internal offshoring)

Governance of global value chains after the Covid-19 pandemic: a new wave of regionalization?

The disruption of the trade and investment activities of multinational enterprises as a consequence of the Covid-19 pandemic has reinvigorated the debate on the configuration of global value chains (GVCs) as well as the risks and challenges associated with offshoring. This paper depicts how the pandemic might affect GVC configuration by driving a trend towards a more regional footprint in industries in which resilience and reliability are critical. Such a shift would create new opportunities for reshoring, and affect both the types of upgrading trajectories and the governance systems in value chains. The paper also draws from the intersection of the global-strategy and value-chain fields to propose potential topics and avenues for further research related to these trends

Fine slicing of the value chain and offshoring of essential activities: empirical evidence from European multinationals

The offshoring of more advanced activities is increasing and a debate about the limits of offshoring has emerged. Companies are fine-slicing their value chains, and moving beyond the offshoring of peripheral and non-core activities to the offshoring of advanced and essential activities that are closer to their core (e.g. research, design and product development). The challenge is to understand the limits of offshoring and the most appropriate modes of offshoring. The purpose of this paper is to analyze what activities are offshorable and how best to govern offshored activities. We argue that companies are redefining their core activities and in this process, some essential activities previously viewed as core activities are being detached from the core, and they become more offshorable. The study uses a sample of 565 offshoring operations conducted by 263 multinational companies from 15 European countries. A logistic regression was used to analyze the relationship between the activities offshored (non-core versus essential activities) and the offshoring mode implemented (captive offshoring versus offshore outsourcing). We find that essential activities are typically offshored using the captive mode, while offshore outsourcing is commonly used to offshore non-core activities; and this trend is even more pronounced in knowledge-intensive companies where interfaces between the various activities are less standardized. This paper offers managers and CEOs an integrative tool that can make easier decisions regarding offshoring modes (captive versus offshore outsourcing) and serves as a reference point for further analyses of the implementation of offshoring strategies in multinational enterprises

Configurational theory in traditional manufacturing industries: a new model of high-performing small and medium-sized enterprises

The goal of this study is to provide a model of high-performing small and medium-sized companies to address the new environmental challenges in traditional manufacturing industries. Adopting a configurational logic and following an inductive approach based on four high-performing firms, this paper provides new empirical evidence on how the steps followed by these firms are adjusted to the high-performance models prescribed by the literature. In doing so, it also offers a dynamic view of the interrelationships between the strategy and the new conditions of the environment. At a practitioner level, the paper illustrates which recipes are more appropriate to prescribe recommendations for a more robust model that reinforces competitiveness in these industries. This research suggests that competitive success in traditional manufacturing industries requires movement along five complementary and interlinked strategic-development axes: the use of cooperation agreements, the combination of local and international manufacturing, the greater control of the distribution channel, the sale of customized products, and an increasing concern for sustainability