In addition, their role in the overall market of the region or nation of interest, reputation, customer service record, level of influence with the government, and potential to open entirely new markets also must be considered. Previous experiences with managing international relationships, roles of their senior management team earlier in their careers in managing global alliances, and track record with equity and non-equity forms of expansion all need to be considered (Hipkin, Naude, 63, 64)
The depth of knowledge is this specific area of a foreign market is critically important to thoroughly understanding and making full use of the bases of comparison. The five bases of comparison need to include a relative risk assessment, availability of infrastructure and technologies, scope of innovation (Jamali, Yianni, Abdallah, 375), government policies and programs that enable both localized and global business development including FDI policies (Lin, Tao, 50) and long-term viability of the market segments and audiences served
WalMart concentrates on how effectively they can build a local supply chain, how the local infrastructure can support the information systems and logistics processes they rely on, and how available the skills they need are in the workforce. WalMart also considers the role of local Chinese entrepreneurs from the standpoint of investing in their long-term growth as part of the regional and global WalMart supplier network as well (Lin, Tao, 64)
It is no longer held that industry structure is the prime determinant of firm performance: the variance of performance around the industry mean is simply too great. Besides, it is much less clear today than 30 years ago where the 'boundaries' to an industry lie (Aspelund & Moen, 2001)
Born Global Firms Even though classic internationalization theories dictate that foreign direct investment (FDI) is mostly the sanctioned by larger, entrenched companies (Caves, 1971, 1996; Chandler, 1990), rapidly falling trade and deal obstacles, technological progress and enhanced information technology in addition to diminished transportation costs have revealed that classic theories do not at all times stand for genuine business performance. Globalization forces and environmental drivers, including increasing market liberalization and advances in information and communication technologies (Bell, et al
Globalization forces and environmental drivers, including increasing market liberalization and advances in information and communication technologies (Bell, et al., 2004) have changed the realities of conducting international business (Cavusgil, et al
Nokia and Ericsson thrived (more than did less-focused Motorola) only after paring down to their wireless technology essentials - at least before that whole market hit a speed bump. Unilever divested chemicals (Christensen, 1997)
One I learned from speaking with GE executives. To wit: 'the giant cuts itself up into midgets when it goes to market' (Coveney & Moore, 1998)
Even before the Enron debacle and its knock-on effects on Tyco, institutional shareholders were becoming increasingly intolerant of the opacity and complexity of multi-activity firms. Tyco's decision to end its life as an acquisitive conglomerate and break itself into four separate companies was its means of attempting to avoid the dreaded 'conglomerate discount' imposed by the financial markets - read institutional investors - on firms whose operations are deemed non-transparent (Coviello & Jones, 2004)
(it is number 827 on the Fortune 1000 for the year 2000.) Its once famous Latin American ship- ping activity was disposed of long ago, and it divested many 'non-core' packaging, water treatment, organic chemicals, oil and gas production and services businesses during the 1990s (Cressy & Olofsson, 1996)
The raiders and takeover artists and leveraged buy-out (LBO) firms were quite unsentimental about keeping underperforming activities inside firms just because they had always been there, or waiting for internal corporate reorganizations to produce - perhaps, maybe someday - results. Especially in Born Global firms, the 'sword of debt' forced quick disposals and sales of under- performing assets and of the people who managed and worked in them (Erikson & Sorheim, 2005)
The raiders and takeover artists and leveraged buy-out (LBO) firms were quite unsentimental about keeping underperforming activities inside firms just because they had always been there, or waiting for internal corporate reorganizations to produce - perhaps, maybe someday - results. Especially in Born Global firms, the 'sword of debt' forced quick disposals and sales of under- performing assets and of the people who managed and worked in them (Erikson & Sorheim, 2005)
S. pattern incorporating international divisions, the European pattern that does so to a lesser degree, some other pattern, or none at all? Classic Internationalization Theories Reference to internationalisation theories suggests that the degree of internationalisation might be seen from three perspectives: performance (what goes on overseas, Coviello & Jones, 2004) structural (what resources are overseas, Moen, (1999) and attitudinal (what is top management's international orientation, (Freear, et al
Financial markets, and especially equity markets, were not globally integrated 30, even 15, years ago. Even many developed countries then had currency and other controls that severely inhibited cross-border stock investments and other financial flows (Harrison & Mason, 2002)
The internationalisation of service firms and firms that combine goods and services needs more attention (Landstrom, 2004). This observation is highly relevant for Australian scholars as the majority of Australian FDI abroad has been directed to service firms (Johanson & Vahlne, 1990)
The internationalisation of service firms and firms that combine goods and services needs more attention (Landstrom, 2004). This observation is highly relevant for Australian scholars as the majority of Australian FDI abroad has been directed to service firms (Johanson & Vahlne, 1990)
The dynamic nature of internationalisation, and associated financing methods such as FDI, calls for research that is responsive to the longitudinal character of internationalisation as a development process through time. While it is valuable to study individual events, a more complete picture is supplied when the whole development of a firm from the time of its founding to the present time is examined (Knight, 2006)
The dynamic nature of internationalisation, and associated financing methods such as FDI, calls for research that is responsive to the longitudinal character of internationalisation as a development process through time. While it is valuable to study individual events, a more complete picture is supplied when the whole development of a firm from the time of its founding to the present time is examined (Knight, 2006)
Stages model of internationalisation, including those of Vahlne and Johanson, Vernon, and evolutionary models of international structure, including those of Stopford and Wells, Franko and Bartlett and Goshal, are based on surveys of manufacturing firms. The internationalisation of service firms and firms that combine goods and services needs more attention (Landstrom, 2004)
All these options may serve to add back new complexity for management until the governance provisions and 'logic' are sorted out clearly. How managers go about the task will provide a fruitful and challenging domain for future research (Lautanen, 2000)