Transnational Diaspora and Civil Society Actors Driving MNE Internationalisation: The Case of Grameenphone in Bangladesh

Multinational enterprises (MNEs) are viewed as proactive global economic actors that enter new and emerging markets with intentional strategies, building on their inherent resources and firm-specific advantages. However, an international joint venture involves numerous actors in the market entry process. While emerging markets tend to feature complex institutional contexts and idiographic entry challenges, our study with a focus on emerging market presents two under-examined types of stakeholders as distinct social actors' that affect internationalisation process: the transnational diaspora and civil society actors. It provides evidence of the reactive internationalisation of an MNE, showing how the transnational diaspora drove the MNE's internationalisation and how a civil society actor, in conjunction with a diaspora member, facilitated the creation of an international joint venture (IJV) in Bangladesh. This case study analyses and describes the stages of development, documenting how Norwegian Telenor, American Gonophone, Japanese Marubeni and Bangladeshi Grameen Bank created an IJV named Grameenphone in Bangladesh, and how diaspora and civil society actors made up the prime movers and organisational capability base for this process, which would not have happened without their market-driving and enabling influence. The findings illustrate the central role of transnational diaspora entrepreneurship and the related innovation, motivation, contextual intelligence, networking and funding that supported this emerging-market IJV development. The study contributes to research on international joint ventures, transnational diaspora entrepreneurship and civil society actors and the internationalisation of MNEs.     

External Knowledge Sourcing and Firm Innovation Efficiency

This study examines the relationship between external knowledge sourcing and firm innovation efficiency. We build on the organizational learning theory to propose that this relationship follows an inverted U‐shape: as the level of external knowledge sourcing increases from low to moderate, firm innovation efficiency increases; as the level of external knowledge sourcing increases from moderate to high, firm innovation efficiency declines. Further, we explore the moderating role of different contextual factors and contend that this inverted U‐shaped relationship is flattened in firms that operate in high‐tech sectors and in firms that face high internal constraints for innovation. Our empirical analysis is based on a sample of 3,204 Spanish firms over the period 2004–2015, and our results provide support for these contentions. We used data envelopment analysis methodology to estimate firm innovation efficiency relative to industry best performers, and truncated regression models for panel data with bootstrapped confidence intervals to test our hypotheses.     

From blind spots to hotspots: How knowledge services clusters develop and attract foreign investment

This paper explores local and global dynamics underlying the development of knowledge services clusters, which we define as new geographic concentrations of technical talent and service providers offering upstream technical and knowledge-intensive business services to regional and global clients. Taking a co-evolutionary perspective on the development of knowledge services clusters in Latin America, based on data from the Offshoring Research Network (ORN), we find that cluster growth results from intersecting trajectories: the emergence of local talent pools and capabilities initially serving local and regional demand; broadening global search for talent and expertise by multinational corporations; and internationalization strategies of service providers competing to serve global clients. Findings suggest that increasing commoditization of knowledge services opens up windows of opportunity for new clusters, but also involves challenges for sustainable growth. Results may stimulate future research on global sourcing and cluster development.     

Does ‘the China Option’ influence subsidiary technology sourcing strategy?

We draw on transaction cost economics and the technology innovation management literature to advance a contextual model of the link between the perceived influence of China on technology strategy and MNC subsidiary sourcing strategy. In particular, we hypothesize that the relationship between a perceived influence of China on technology strategy and MNC subsidiary process technology sourcing strategy is moderated by the innovation context. Here, we consider the innovation context to be externally represented by the appropriability regime and dominant design, while internally it is measured by the subsidiary's level of complementary assets. We test our predictions on a multi-industry sample of 111 MNC subsidiaries from the Association of Equipment Manufacturers. We find support for the moderating influence of the innovation contexts of appropriability regime and complementary assets.     

Global Multisourcing Strategy: The Emergence of a Supplier Portfolio in Services Offshoring

In today's global services outsourcing arena, increasing numbers of companies adopt “multisourcing,” that is, they select and combine information technology (IT) and business services from multiple providers. The literature on IT outsourcing and supply chain management has identified critical tradeoffs involved in increasing the number of suppliers and has strongly recommended focusing on a handful of strategic partners to balance these tradeoffs. Committing to a few strategic partners, however, may prevent a firm from discovering new suppliers, or even supply regions. Such missed opportunities may be particularly limiting in the context of offshoring professional services, which has exhibited rapid changes in supplier markets in the last decade. Thus, firms may want to engage in a more intensive multisourcing in services. If they do so, their success will depend on a global sourcing process that effectively addresses the critical tradeoffs involved. To explore how a global sourcing process can support multisourcing, we conducted a qualitative longitudinal case study of a large financial services institution that developed a varied global supply base to obtain offshore professional services. Our analysis results in a theory that emphasizes (i) advantages of a multiple provider strategy in rapidly changing global supply markets; (ii) the critical role of middle managers in enabling continuous innovation in the supplier structure; and (iii) the importance of the global sourcing process combining top–down and bottom–up decision making in multisourcing.     

Developing new innovation models: Shifts in the innovation landscapes in emerging economies and implications for global R&D management

Over the past two decades, there has been a substantial shift in the global innovation landscape. Multinationals from developed economies are increasingly globalizing their R&D activities and are developing an “open innovation” model to source innovations from outside the firm, including from emerging economies such as those in Asia. In addition, emerging economy firms, which traditionally have played a secondary role in the global innovation landscape, have now begun to catch up in developing their own innovative capabilities. This study explores the implications of this new innovation landscape for CEOs of multinationals and emerging economy firms, as well as for international management scholars and educators. While the multinationals might appropriate rents from their existing capabilities and source new ones in emerging economies, they may be threatened by weak intellectual property rights regimes and unintended knowledge spillovers to local firms, creating potential competitors. Firms in the emerging economies can learn from and catch up with investing multinationals, but to do so they need to develop their own innovative capabilities and move from a process to a product focus and from imitation to innovation.     

Overcoming blind spots in global sourcing research: Exploiting the cross-sections between supply chain management and international business

This article reviews existing work on global sourcing and suggests a number of new theoretical directions for research in this area. We discuss how international business (IB) and supply chain management (SCM) research can benefit from increased cross-fertilization of themes and perspectives. We begin by introducing a taxonomy of global sourcing research, building on relevant insights from SCM research. We then generate recommendations for potential future research on global sourcing, particularly highlighting antecedents, processes, performance and contextual variables. SCM research employs the entire supply chain as the primary unit of analysis (rather than the individual firm), while IB research focuses primarily on international aspects, adapting to institutional contexts in a globalized world. Building on this complementarity, several specific empirical directions are proposed for future research directions.     

Leveraging Open Innovation Using Intermediary Networks

Open innovation, fuelled by the rise of the Internet, has made it feasible and cheaper for firms to open themselves up to a wide range of external sources of innovative ideas. The explosive growth of open innovation intermediary networks, such as InnoCentive or Linked‐in, enables the rapid pairing of firms seeking knowledge to address a wide range of business challenges (seekers) with other firms or individuals who already have relevant knowledge (solvers or knowledge brokers). These intermediary networks allow procurement departments to source codified and un‐codified knowledge from firms or individuals outside their traditional supplier networks using one‐off transactional relationships. Although sourcing ideas in this way theoretically poses problems for knowledge search and transfer, we have found that companies can draw on processes and integration mechanisms developed by procurement and design engineering to develop effective organizational learning routines. These routines are strategically vital to source new ideas through open innovation using intermediary networks and create competitive advantage.     

Journal of International Management: A 25-year review using bibliometric analysis

The Journal of International Management (JIM) is a leading international academic journal in the field of international business. This study presents a retrospect of the publications in JIM for the last 25 years (as JIM was founded in 1995) through a bibliometric methodology using the Scopus database and Web of Science. The study graphically maps the bibliographic material using VOS viewer software and applies co-citation analysis, bibliographic coupling, and co-occurrence of author keywords. We identify that the journal has expanded consistently and steadily in terms of both number of publications and citations. The collaboration network has expanded over the years, and the geographical focus is more global, encompassing Asia and Oceania. Bibliographic coupling of JIM publications reveals several distinct, major themes in the international management/business domain. Conventional international management themes that have emerged include market entry modes, globalization, international human resource management, cross-cultural management/leadership, and expatriate management. New emerging themes include emerging markets, global sourcing, innovation performance, digital firms, diversity of global teams, internationalization in uncertain environments, and virtual teams. A summary of the shifting research trends and themes in the discipline and their development is presented in this review, culminating in future directions for prospective publishers of JIM.     

Complements or substitutes? The contingent role of corporate reputation on the interplay between internal R&D and external knowledge sourcing

Existing research does not provide a clear answer to the question of whether internal knowledge development and external knowledge sourcing are complementary or substitutive innovation activities. This paper adopts a contingent approach for addressing this issue by examining whether and how the interactive effect of internal R&D efforts and external knowledge sourcing on product innovation performance may be affected by the firm’s corporate reputation. In doing so, a three-way interaction model is applied to a sample of 251 Spanish high-technology manufacturing firms. Interestingly, initial results support the substitutive argument: the positive effect of internal R&D on product innovation performance diminishes as the exposure to external knowledge increases. However, in well reputed companies, interaction becomes positive, revealing a complementary effect. Thus, the study extends the traditional approach focused on determining whether internal and external knowledge sourcing are complements or substitutes by showing that their interplay depends on other firm-specific characteristics. Moreover, identifying corporate reputation as a source of complementarity between both activities provides an additional explanation of how corporate reputation contributes to a more effective management of knowledge assets.     

Catch-up as a Survival Strategy in the Solar Power Industry

We evaluate the strategies of the emerging market firms in the context of nascent industries. We use the Indian solar power industry as the empirical setting, against the backdrop of the evolution of the global industry, While in traditional industries emerging market firms learn from advanced economy multinational enterprises (MNEs) and slowly upgrade their capabilities, in the intensely competitive environment of nascent innovative industries, emerging market firms are exposed to global competition in their home market right from the early years. This shortens their catch-up clock. As a result, their long-term survival depends on their ability to catch-up fast, both in output and innovation capabilities. In the solar power industry, we find that innovations stem, in the main, from advanced economy firms. Further, Chinese firms are beginning to move from cost-based imitation to innovation. In contrast, with a few key exceptions, most firms in the Indian solar industry remain locked within a narrow niche of downstream site-based installation. Their operations are opportunistic, short term, and without specific catch-up goals, a scenario that does not bode well for the industry's future in India.     

Effects of Partnership Quality,Talent Management,and Global Mindset on Performance of Offshore IT Service Providers in India

This paper investigates the effects of partnership quality, talent management and global mindset on the performance of offshore service providers (OSPs) in the information technology sector in India. The findings show that partnership quality has partial and strong mediation effects on the impact of talent management and global mindset on performance of OSPs. We also find that talent management strongly mediates the effects of global mindset on partnership quality. Overall, the results confirm that global mindset, by itself, has limited direct influence on the performance of OSPs and that the full benefits of global mindset can only be enjoyed by OSPs which have well developed talent management and high quality partnerships with their clients. The implications and limitations of the study are also discussed.     

Global Innovation Networks – Organizations and People

Innovation is increasingly the outcome of global networks that connect geographically dispersed knowledge centers. The international business (IB) literature has developed a sophisticated understanding of the multinational enterprise (MNE) as an organization generates value by integrating knowledge across national borders. We advance this literature by making three key arguments. First we highlight the three megatrends that shape the strategy of the modern MNE: the disaggregation of the value chain into ever narrower activities, the migration of value to knowledge-intensive intangibles and the rise of huge emerging markets like China and India, whose domestic firms can grow to enormous size before venturing abroad. Second, we trace these three megatrends to falling spatial transaction costs, enabled in the main, by digitalization. Third, we draw on earlier research on the generic forms of global linkages, arguing that the IB literature has limited itself to organizational pipelines, while paying relatively little attention to personal relationships. The latter are particularly important in the genesis of both entrepreneurship and radical innovation, but are particularly sensitive to the anti-globalization policies. An environment where technology continues to reduce spatial transaction costs, while policy raises them, strengthens large MNEs at the expense of innovative international new ventures.     

Breadth of external knowledge sourcing and product innovation: The moderating role of strategic human resource practices

Prior research has argued that external knowledge sourcing can be supported by effective strategic human resource (HR) practices. However, whether and how the adoption of new organizational mechanisms in group settings influences the relationship between external search strategies and innovation performance represents an unanswered question. Therefore, the present paper aims to explore the relationship between the breadth of external knowledge sourcing (i.e., external search breadth) and product innovation by unveiling the moderating effects of strategic HR practices, as represented by the implementation of heterogeneous work groups and brainstorming sessions. On the basis of data from the Italian Innovation Survey, our results reveal that external search breadth is curvilinearly (inverted U) related to product innovation, and its negative effects occur later in the presence of heterogeneous work groups and brainstorming sessions.     

Diaspora Ownership and Homeland Firms' Internationalization

Although the contribution of diaspora to international business is becoming more evident, little is known about the channels used by individual firms to benefit from diaspora. In this paper, we propose equity ownership as a form of connection between the homeland firms and diasporans (i.e. diaspora members). Specifically, we draw on the literature on diaspora combined with an owners-as-resources perspective to theorize about how diaspora owners can affect the homeland firm's internationalization. We suggest that the anticipated entry costs deriving from the liability of foreignness faced by homeland firms explain how the impact of diaspora owners varies depending on entry mode. Finally, we compare diaspora owners to other types of foreign owner which we argue have lower levels of motivation and ability to help homeland firms to internationalize, and contribute relatively less to their internationalization than diaspora owners. We test and confirm our predictions using data on 2608 domestically controlled Indian firms and their internationalization in 2006–2012.     

Optimal Inventory Control with Dual‐Sourcing,Heterogeneous Ordering Costs and Order Size Constraints

We consider a dual‐sourcing inventory system, where procuring from one supplier involves a high variable cost but negligible fixed cost whereas procuring from the other supplier involves a low variable cost but high fixed cost, as well as an order size constraint. We show that the problem can be reduced to an equivalent single‐sourcing problem. However, the corresponding ordering cost is neither concave nor convex. Using the notion of quasi‐convexity, we partially characterize the structure of the optimal policy and show that it can be specified by multiple thresholds which determine when to order from each supplier and how much. In contrast to previous research, which does not consider order size constraints, we show that it is optimal to simultaneously source from both suppliers when the beginning inventory level is sufficiently low. We also show that the decision to source from the low‐cost supplier is not monotonic in the inventory level. Our results require that the variable costs satisfy a certain condition which guarantees quasi‐convexity. However, extensive numerical results suggest that our policy is almost always optimal when the condition is not satisfied. We also show how the results can be extended to systems with multiple capacitated suppliers.     

Production systems and supplier selection: a multi-phase process model

Abstract

Purpose: This paper presents a combined multi-phase supplier selection model. The process repeatedly revisits the criteria and sourcing decision as the development process continues. This enables a structured adoption of product and production system innovation from strategic suppliers, where previously the literature purely focuses on product innovation or cost reduction. Design/methodology/approach: The authors adopted an embedded researcher style, inductive, qualitative case study of an industrial supply cluster comprising a focal automotive company and its interaction with three different strategic stamping suppliers. Findings: Our contribution is the multi-phased production and product innovation process. This is an advance from traditional supplier selection and also an extension of ideas of supplier-located product development as it includes production system development, and complements the literature on working with strategic suppliers. Specifically, we explicitly articulate the previously unreported issue of whether a supplier chosen for its innovation capabilities at the start of the new product development process will also be the most appropriate supplier during the production system development phase, when an ability to work collaboratively may be the most important attribute, or in the large-scale production phase when an ability to manufacture at low unit cost may be most important. Originality/value: The paper identifies a multi-phase approach to tendering within a fixed body of strategic suppliers which seeks to identify the optimum technological and process decisions as well as the traditional supplier sourcing choice. These areas have not been combined before and generate a valuable approach for firms to adopt as well as for researchers to extend our understanding of a highly complex process.     

Global sourcing in integrated network structures: The case of hybrid purchasing organizations

An issue for companies in globally competitive markets is to adapt their organizational structures and governance in increasingly complex organizations. At the functional level of purchasing, companies are turning to hybrid purchasing organizations in order to leverage global sourcing benefits. One of the key challenges in this context is to distinguish between categories to be integrated across sites and those that are to remain under the authority of each purchasing location in order to maximize purchasing synergies.This paper presents a purchasing portfolio model that provides a comprehensive view of relevant global synergy dimensions. Based on a literature review, a theoretically-grounded purchasing portfolio model for global sourcing is developed. The theoretical basis stems from information processing theory, organizational buying behavior (OBB) and transaction cost economics. The validity of the model is explored by means of case study research. Complementing the extant literature, the theoretical contribution of the paper lies in not only addressing category selection criteria for exploiting economies of scale, but also for economies of information and learning and economies of process. Furthermore, it provides insights regarding integrated network coordination mechanisms at the functional level of purchasing.     

Innovation in Emerging Markets: The Role of Management Consulting Firms

Firms in emerging markets are often reluctant to invest in innovation because of the institutional voids endemic to such markets. Addressing the gap in the literature concerning the role of consultancy firms in emerging markets, we argue that management consultancy firms can fill institutional voids and thus help firms implement innovation initiatives. We buttress our main argument by combining strands of institutional theory with the resource-based view. Acknowledging the tensions inherent in the use of consultancy firms, we also examine two contextual variables that may mitigate their positive effects. We explore the critical aspects of the firms' internal and external environments and posit that well-functioning national institutions and a high level of firm competency attenuate the positive roles of management consulting firms because there are few voids that management consultancy can effectively address under such conditions. To test our hypotheses, we examine the effects of management consultancy on both the input and output aspects of innovation. We use a sample of 1330 establishments operating in nine emerging markets. Our findings support all main and moderating effects on innovation inputs but not on innovation outputs. We discuss the theoretical implications of our findings and provide suggestions for future research.     

The Competitive Impact of Targeted Television Advertisements Using DVR Technology

Digital video recorders (DVRs) are an emerging technology that is fundamentally changing the competitive landscape in industries that advertise on television. Perhaps the most familiar impact of DVR technology is that it enables consumers to avoid advertisements (ads) by fast forwarding through them. However, this “zipping” of ads is only one aspect of the impact of DVR technology. DVRs also collect a wealth of information at the consumer level that can be used by firms to target their ads more effectively. We examine how this targeting capability moderates the impact of ad avoidance in a competitive setting. Insights are provided on how best to manage this emerging technology in terms of the key managerial decisions of product pricing and advertising efforts, as well as its impact on profits in a competitive (duopoly) marketplace.