Strategy and the non-market environment (MANMST025)
Institution
Radboud Universiteit Nijmegen (RU)
Book
Nonmarket Strategic Management
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Strategy and the non-market environment (MANMST025)
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Lecture Title of the article Writers Abstract of the article Content Hypotheses Conclusions
This paper first sets out the main features of the Explains what determines tthe The key takeaway is that firms
eclectic theory of international production and boundaries or scope of a firm, i.e. why prefer FDI over licensing or
then seeks to evaluate its significance of ownership- firms invest overseas (FDI) rather than exporting to retain control.
Toward an eclectic H1-The international
and location-specific variables in explaining the through arms-length mechanisms such Furthermore the export potential
theory of international Dunning, J. competitive
industrial pattern and geographical distribution of the as trade and licensing. What are the of an industry in a less developed
1.Introduction and Internationalisation
production: Some H. (1980) hypothesis H2-The
sales. determinants of international economy is an important factor in
empirical tests location hypothesis
production? The OLI-Paradigm is determining the form of
explained. penetration.
The internationalization In this paper they develop a model of the Market knowledge and market The essence of this paper is that
process of the firm—A internationalization process of the firm that commitment are assumed to affect internationalisation a dynamic
model of knowledge Johanson, J. focuses on the development of the individual firm, and both commitment decisions and the process of learning is (step-by-step
management and Vahlne, particularly on its gradual acquisition, integration, and way current activities are n/a reduction of market uncertainty)
development and J.-E. (1977) use of knowledge about foreign markets and operations, performed. These in turn change
increasing foreign and on its successively increasing commitment to knowledge and commitment.
market commitments foreign markets.
A framework is presented that explains international Four aspects of international new The internationality of new
new ventures('born globals') by integrating ventures: (1) organizational ventures occurs at inception
international business, entrepreneurship, and strategic formation through internalization of largely because competitive forces
Oviatt, B.M. management theory. That framework describes four some transactions, (2) strong reliance preclude a successful domestic
Towards a Theory of
and necessary and sufficient elements for the existence of on alternative governance structures to focus. Their emphasis on
International New n/a
McDougall, international new ventures. access resources, (3) establishment of controlling rather than owning
Ventures
P.P. (1994) foreign location advantages, and (4) assets is due to resource scarcity
control over unique resources. that is common among new
organizations.
In this article a three-fold typology of multinational This article looks whether some factors They study was able clearly to
An empirical analysis companies: Global, Multidomestic and score high or low on the typologies distinguish three types of MNCs
and extension of the Transnational is developed from the literature. from Barlett & Goshall to check is the (Multidomestic, global,
Harzing, A.-
Bartlett and Ghoshal typologies are sufficient. n/a transnational) that differed
W. (2000)
typology of multinational systematically on a number of
2.MNE Market Behaviour: Strategy
companies important characteristics.
Examining both financial and non-financial The objective of this paper is to Firms whose mode choice could be
performance measures, they attempt to determine if enhance our understanding of the The article uses 5 predicted by the extended
firms that select their entry mode based on transaction impact of transaction cost, hypotheses to transaction cost model performed
Institutional, cultural cost, institutional context, and cultural context institutional and cultural context significantly better, on both
differentiate when
and transaction cost Brouthers, K. variables perform better than firms that make other variables on international entry mode financial and non-financial
firms tend to use
influences on entry mode D. (2002) mode choices. choice and mode performance. When measures, than did firms whose
wholly owned modes
choice and performance there is a high risk encorporate a joint mode choice could not be
or joint venture
venture. modes. predicted by the extended
transaction cost model.
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