Firm-specific, country-specific and region-specific competitive advantages: the case of emerging economy MNEs - Thailand

Increasing levels of regional economic integration have created a new source of international competitiveness for MNEs from an emerging economy, Thailand, in the context of ASEAN economic integration. Building on the theoretical framework of firm-specific advantages (FSAs) and country-specific advantages (CSAs) grounded in internalization theory, we introduce region-specific advantages (RSAs) and advance a novel regional dual-double-diamond model to analyse regional competitiveness. Using both primary and secondary data we find that most Thai firms derive their international competitiveness from CSAs rather than FSAs, and will benefit from ASEAN RSAs. Our study significantly advances the literature on international competitiveness of emerging-economy MNEs

Democratizing Innovation. A Geo-Entrepreneurial Analysis and Approach Through the Company Democracy Model

Even that thinking, and innovative thinking, in particular, is supposed to be borderless and unbiased, it seems that most of the innovations globally derive from regions that have built a brand name on it. This limits the opportunities to bright ideas form bright people outside the innovation hubs, resulting in a general loss of intellectual capital for the global economy. This paper aims to democratize innovation by redefining geo-entrepreneurship through a reverse innovation framework that exposes the hidden intellectual capital around the world, evaluates innovation drives and opportunities and empowers the development, commercialization and utilization of innovation. Based on the Company Democracy Model the proposed framework impacts reversely national brain-drain contributes to innovation scouting, strategic partnerships, and redistributes success opportunities. This geo-entrepreneurial approach identifies innovation potential globally, reduces inequalities among all those who can and want to create opportunities regardless of where innovation takes place and by whom

Multinationality and performance literature: a critical review and future research agenda

The literature on the relationship between the degree of multinationality (M) and performance (P) in the context of multinational enterprises (MNEs) has attracted a large volume of research in the past 50 years. Yet, the theoretical foundations and the empirical conclusions concerning the nature of M–P relationship vary greatly, thus call for a critical review and assessment. We examine 135 articles in 39 leading scholarly journals and classic books published during the period 1960–2015. We use an inductive approach and a qualitative content analysis methodology for our comprehensive and critical review of the literature. We incorporate international business, finance, and accounting perspectives in our analysis. We review the conceptualization and measurement of M, P, the findings on M–P relationships, methodologies, and geographic focus. We identify six key inconsistencies in the existing research, which cause ambiguity in the relevant findings. We make eight recommendations for future research to address these inconsistencies. Thus, our study contributes to the central debate in this research field

When is a Publishing Business Truly ‘Global’? An Analysis of a Routledge Case Study with Reference to Ohmae’s Theory of Globalization

This study first reviews the writing of the management theorist Kenichi Ohmae, before assessing the potential application of his theory of global commercial maturation to the strategies adopted by the academic publishing company, Routledge, and its precursor imprints between 1960 and 2013. Based on the analysis of interviews carried out between 2011 and 2013 and supporting document analysis, the paper concludes that, with some caveats, the stages of globalization identified by Ohmae are of considerable explanatory value for students and analysts of global publishing as well as offering strategic insights to managers of academic publishing houses

Internationalisation speed and MNE performance: A study of the market-seeking expansion of retail MNEs

Existing research is divided on whether firms that rapidly expand their overseas operations perform better than firms that internationalize slowly. Drawing on Penrose’s theory of the growth of the firm we argue that the positive effects of rapid internationalization give way to negative effects with increasing internationalization speed, leading to an inverted U-shaped association between internationalization speed and firm performance. We analyse the market-seeking expansion of 110 retailers over a 10-year period (2003–2012) and find support for a curvilinear relationship between internationalization speed and firm performance that is moderated by the geographic scope of firms’ internationalization path and firms’ international experience. Our study contributes to resolving conflicting views on the link between internationalization speed and firm performance

How do MNC R&D laboratory roles affect employee international assignments?

Research and development (R&D) employees are important human resources for multinational corporations (MNCs) as they are the driving force behind the advancement of innovative ideas and products. International assignments of these employees can be a unique way to upgrade their expertise; allowing them to effectively recombine their unique human resources to progress existing knowledge and advance new ones. This study aims to investigate the effect of the roles of R&D laboratories in which these employees work on the international assignments they undertake. We categorise R&D laboratory roles into those of the support laboratory, the locally integrated laboratory and the internationally interdependent laboratory. Based on the theory of resource recombinations, we hypothesise that R&D employees in support laboratories are not likely to assume international assignments, whereas those in locally integrated and internationally interdependent laboratories are likely to assume international assignments. The empirical evidence, which draws from research conducted on 559 professionals in 66 MNC subsidiaries based in Greece, provides support to our hypotheses. The resource recombinations theory that extends the resource based view can effectively illuminate the international assignment field. Also, research may provide more emphasis on the close work context of R&D scientists rather than analyse their demographic characteristics, the latter being the focus of scholarly practice hitherto

Beyond brokering: Sourcing agents, boundary work, and working conditions in global supply chains

The role that sourcing agents, autonomous peripheral actors located in developing economies, play in the governance of working conditions in global supply chains has been greatly underexplored in the literature. The present paper reports on an in-depth qualitative study that examined the boundary work of sourcing agents aimed at dismantling or bridging the boundaries that affect the interaction between buyers and suppliers, in order to facilitate development and implementation of meaningful working conditions or social relations at work. We identify four types of boundary work that sourcing agents used to manage combinations of accommodative and non-accommodative buyers and suppliers in order to work through boundaries created by buyer’s liability of foreignness: reinforcing, flexing (type 1 and 2), and restoring. We also found four essential conditions for a sourcing agent to become an effective boundary-spanner in practice: acquiring knowledge about the relevant fields and actors, gaining legitimacy in the relevant fields and in the opinion of the parties involved, effectively translating the expectations of each party to the other, and benefiting from satisfying incentives. We contribute to the literature on governance for working conditions in global supply chains, boundary theory, and liability of foreignness

Organizational innovation in the multinational enterprise: internalization theory and business history

This article engages in a methodological experiment by using historical evidence to challenge a common misperception about internalization theory. The theory has often been criticized for maintaining that it assumes a hierarchically organized MNE based on knowledge flowing from the home country. This is not an accurate description of how global firms operate in recent decades, but this article shows it has never been true historically. Using longitudinal data on individual firms from the nineteenth century onwards, it reveals evidence of how entrepreneurs and firms with multinational activity faced with market imperfections changed the design of their headquarters and their organizational structures

What lies between market and hierarchy? Insights from internalization theory and global value chain theory

In this paper, we suggest that internalization theory might be extended by incorporating complementary insights from GVC theory. More specifically, we argue that internalization theory can explain why lead firms might wish to externalize selected activities, but that it is largely silent on the mechanisms by which those lead firms might exercise control over the resultant externalized relationships with their GVC partners. We advance an explanation linking the choice of control mechanism to two factors: power asymmetries between the lead firms and their GVC partners, and the degree of codifiability of the information to be exchanged in the relationship