Business Commons^™

Selecting International Modes Of Entry And Expansion, Gregory E. Osland, Charles R. Taylor, Shaoming Zou

Gregory E. Osland

Selecting a mode for entering or expanding in a foreign market is a crucial strategic decision for an international firm. This article identifies and compares the most influential factors that affect the international modes of entry and expansion decisions of US and Japanese firms. Using mail surveys, this is one of the first studies on this subject to collect data from top executives in both Japan and the USA. Findings reveal that the Japanese are particularly sensitive to external risk and other target market factors. For Americans, company factors, such as international experience, appear to be most important when selecting …

Performance Issues In U.S.–China Joint Ventures, Gregory E. Osland, S. Tamer Cavugsil

Gregory E. Osland

Based on an in-depth study of U.S.-China joint ventures, this article offers some insights into the performance of such international business relationships. While the conventional literature treats government as an amorphous aspea of the political-legal environment, in this case government is an active participant and influence in the performance of international joint ventures (UVs). It has both a constraining and enabling effect on LJV structure, strategy, and performance. For example, limits can be placed on ownership shares of joint ventures and on prices of the output. At the same time, government can cooperate with LJVs and foreign parent companies by …

The Experf Scale: A Cross-National Generalized Export Performance Measure, Shaoming Zou, Charles R. Taylor, Gregory E. Osland

Gregory E. Osland

A large number of studies have attempted to identify factors that are correlated with exporting success. However, much controversy exists about the key determinants of export performance and their relative importance. A major reason for this lack of consensus is the absence of a unified measure for capturing export performance. In this study, an attempt is made to develop a generalized export performance measure, the EXPERF scale, that can be applied to multiple countries. Results from a survey of top executives of U.S. and Japanese exporters support a three-dimensional scale for measuring export performance. The three dimensions of the export …

Successful Operating Strategies In The Performance Of U.S.-China Joint Ventures, Gregory E. Osland

Gregory E. Osland

Evaluations of the performance of international joint ventures (IJVs) in China have produced mixed conclusions. This study sought to uncover performance criteria used by various groups of managers and to identify critical factors in IJV performance in China. Using in-depth case studies, matched data were collected from personal interviews with managers from Chinese and U.S. parent companies, joint venture operating managers from both partners, and government officials from both countries. The performance criteria used by joint venture participants appear to be converging, with profitability emerging as the dominant element. This exploratory study uncovered four important strategic factors in the performance …

Foreign Market Entry Strategies Of Japanese Mncs, Charles R. Taylor, Shaoming Zou, Gregory E. Osland

Gregory E. Osland

While much prior research has focused on Japanese multi‐national corporations’ (MNCs) marketing strategies, little is known about the factors that influence Japanese MNCs’ foreign market entry mode choice. In this study, a survey of Japanese MNCs is conducted in order to assess the factors that are the most influential in the foreign market entry decisions of Japanese MNCs. Using bargaining power theory, eight factors are identified in the study. The findings indicate that five of the eight factors (stake of the host country, need for local contribution, riskiness of the host country, resource commitment, and host government restrictions) are significant …

Going Global: Factors Influencing U.S.-Based Smes’ International Market Access, Jayati Ghosh, Denise Lucy, Françoise Lepage

Denise Lucy

Globalization promotes vast business opportunities for trade, flow of capital, ideas, and people. In order to integrate into the global economy, countries tend to promote policies, which in turn, help to remove barriers to the flow of investment, goods, and services. While there is ample information describing how multinational corporations have benefited from globalization through greater access to international markets and investment, there is a need to identify ways to unburden small to medium-sized enterprises so that they can reach their potential in the global economy. Barriers vary across business sectors. However, there are fundamental impediments that prevail, in general. …

California's Contributions To The U.S. Export Profile, Denise M. Lucy, Françoise Lepage, Jayati Ghosh

Denise Lucy

Small to medium sized enterprises (SME) are the engine of the United States economy. And the world’s emerging economies offer great opportunities to expand. However, only 1% of U.S. SMEs engage in the international marketplace. Efforts at the national level to expand all U.S. exports, and especially those of SMEs, depend upon each state in the union to participate in this venture. As a key contributor to the U.S. economy, California’s and its vast majority of SMEs, play a key role in U.S. export profile. This paper describes the export landscape of the top five U.S. states, focusing on California’s …

Understanding The Impact Of The Global Economic Crisis On U.S. Smes' Trade Exports To Bric, Jayati Ghosh, Denise Lucy, Françoise Lepage

Denise Lucy

The global economy offers vast trade opportunities for U.S. businesses. United States’ SMEs are grossly under-represented in the global market. It is essential that U.S. SMEs adopt a global approach by expanding trade focus to include the emerging BRIC markets. Demographics and increasing purchasing power in the emerging countries of Brazil, Russia, India and China (BRIC) offer significant trade potential for U.S. SMEs export expansion. However, there are external and internal barriers to expanding beyond the NAFTA region. Free trade agreements reduce trade barriers, while creating opportunities for U.S. exports. Although US SMEs face their own set of challenges to …

Experimentation And Decentralization In China’S Labor Relations, Eli D. Friedman, Sarosh Kuruvilla

Sarosh Kuruvilla

In this introduction to the special issue ‘Changing work, labour and employment relations in China’, we argue that China is taking an experimental and decentralized approach to the development of new labor relations frameworks. Particular political constraints in China prevent interest aggregation among workers, as the central state sees this as posing a risk to social stability. Firms and local governments have been given a degree of space to experiment with different arrangements, as long as the categorical ban on independent unions is not violated. The consequence has been an increasingly differentiated labor relations landscape, with significant variation by region …

From The Firm To The Network: Global Value Chains And Employment Relations Theory, Tashlin Lakhani, Sarosh Kuruvilla, Ariel Avgar

Sarosh Kuruvilla

We posit that traditional employment relations theories that focus on individual firms embedded in distinct national institutional contexts are no longer adequate for the analysis of employment relations in a globalized era where production and services are increasingly coordinated across countries and firms. Building on Global Value Chain theory, we introduce a configurational framework that explicitly addresses the employment relations implications of the interconnections within and between firms in the global economy. We argue that different value chain configurations will evidence different employment relations patterns and we validate our framework by applying it to the study of three contemporary global …

National Innovation Systems And Multinational Corporations, Kyle S. Herman

Dr. Kyle S. Herman

Großbritannien: Noch Immer Heimat Des Neoliberalismus?, Ian Greer

Ian Greer

Großbritannien wurde zur Referenzgröße für neoliberale Reformen, und dies nicht nur aufgrund der Entwicklung unter Premierministerin Thatcher. Die Regierungen von New Labour (1997-2010) leiteten ebenfalls kontinuierlich Reformen ein, um die »Abhängigkeit vom Sozialstaat« zu bekämpfen. Damit hielten sie Großbritanniens Status als eine der am meisten ungleichen Gesellschaften Europas aufrecht. Der leichte wirtschaftliche Aufschwung führte dazu, dass die Erwerbslosenquote bei ungefähr acht Prozent verharrte, und eine neue Regierungskoalition von Konservativen und Liberaldemokraten verschärfte Kürzungen bei Sozialausgaben und kündigte Entlassungen im öffentlichen Sektor an, so dass eine weitere Verschlechterung der Lage zu erwarten ist.

The European Migrant Workers Union: Union Organizing Through Labour Transnationalism, Ian Greer, Zinovijus Ciupijus, Nathan Lillie

Ian Greer

Despite the presence of hyper-mobile migrant workers in the European Union, there is very little research on transnational union organizing efforts. This paper examines the European Migrant Workers Union (EMWU), which signalled a shift by the German union Industriegewerkschaft Bauen-Agrar-Umwelt (IG BAU) in its approach to migrant workers away from national protectionism and toward transnational organizing. The EMWU, however, failed to thrive as an organization, primarily because of decisions by other unions to reject the transnational approach and instead to defend existing jurisdictions. We argue that this inaction constitutes a setback for union reassertion of control over markets and for …

Social Movement Unionism And Social Partnership In Germany: The Case Of Hamburg’S Hospitals, Ian Greer

Ian Greer

This paper traces the emergence of social movement unionism in Hamburg, Germany, as labor’s channels of influence have broken down and economic pressures have intensified. Trade unionists have responded to the privatization of the municipal hospitals by mobilizing members and building coalitions around issues beyond their members’ immediate interests, including democracy and public service quality. Although the loss of union influence has facilitated social movement unionism, in East Germany economic crisis has had a demobilizing effect.

Marktorientierung Und Anstellungsverhältnisse In Der Aktivierungsindustrie: Fallstudie Zu Großbritannien Und Deutschland, Ian Greer, Ian Greenwood, Mark Stuart

Ian Greer

In diesem Beitrag beschreiben wir »Aktivierung« als staatlich finanzierte Industrie mit einem großen Personalbestand. Wir untersuchen die Beispiele Großbritannien und Deutschland, wo die wichtigsten Akteure die öffentlichen Arbeitsämter sind. Gemeint sind damit insbesondere die Bundesagentur für Arbeit (BA) und das Jobcentre Plus (JCP), welche selber Arbeitsvermittlung betreiben sowie Weiterbildung und Beratung für Erwerbslose an externe Unternehmen auslagern. Als weitere wichtige Akteure sind große Anbieter wie die deutschen Sozialverbände und die nationalen karitativen Verbände Großbritanniens zu nennen, aber auch Konzerne wie A4e, Maximus oder Ingeus. In vielen Ländern expandierte die Aktivierungsindustrie zusammen mit den steigenden finanziellen Mitteln für Aktivierungsprogramme. Auch veränderte …

Labor And Regional Development In The U.S.A.: Building A High Road Infrastructure In Buffalo, New York, Ian Greer, Lou Jean Fleron

Ian Greer

[Excerpt] In a country where worker representatives lack broadly institutionalized roles as "social partners," how can they play a constructive role in solving the problems of regional development? In Buffalo, New York, regularized, labor-inclusive procedures of problem solving involving multiple coalition partners – what we call a high-road social infrastructure – has emerged. Socially engaged researchers and educators have played a role in spreading lessons and organizing dialogue. Despite the emergence of regional cooperation, however, successful development politics are hampered by many of the same problems seen in European regions, including uncertainty about the best union strategy, hostility from business …

Industrial Relations, Migration, And Neoliberal Politics: The Case Of The European Construction Sector, Nathan Lillie, Ian Greer

Ian Greer

Transnational politics and labor markets are undermining national industrial relations systems in Europe. This article examines the construction industry, where the internationalization of the labor market has gone especially far. To test hypotheses about differences between “national systems,” the authors examine the United Kingdom, Finland, and Germany, alongside European-level policy making. Regardless of overall national institutional framework, employers seek to avoid industrial relations rules, while unions attempt to relocalize labor relations. Both use shop-floor, national, and European power resources. The authors argue that comparative industrial relations should take seriously the connection between action at the national and transnational levels.

Regional Integration And Transnational Politics: Popular Sector Strategies In The Nafta Era, Maria Lorena Cook

Maria Lorena Cook

[Excerpt] This chapter argues that although economic integration between the United States and Mexico had been taking place for some time, it was the formal recognition of this process as represented by the discussions surrounding the North American Free Trade Agreement that facilitated transnational political action by non-state actors. Whereas the globalization of the economy and the prevalence of neoliberal economic policies may be considered by some to undermine popular sector organization and actions, formal recognition of regional economic integration in North America has produced a ‘transnational political’ arena that has expanded the resources available to non-governmental groups, increased their …

Working Through The Past: Labor And Authoritorian Legacies In Comparative Perspective, Teri L. Caraway (Ed.), Maria Lorena Cook (Ed.), Stephen Crowley (Ed.)

Maria Lorena Cook

[Excerpt] Democratization in the developing and post-communist world has yielded limited gains for labor. Explanations for this phenomenon have focused on the effect of economic crisis and globalization on the capacities of unions to become influential political actors and to secure policies that benefit their members. In contrast, the contributors to Working through the Past highlight the critical role that authoritarian legacies play in shaping labor politics in new democracies, providing the first cross-regional analysis of the impact of authoritarianism on labor, focusing on East and Southeast Asia, Eastern Europe, and Latin America. Legacies from the predemocratic era shape labor’s …

A Value-Added Trade Perspective On Recent Patterns In World Trade (Cepr), Paul Veenendaal, Hugo Rojas-Romagosa, Arjan Lejour, Henk Lm Kox

Henk LM Kox

The Globalization Of Service Work: Comparative Institutional Perspectives On Call Centers (Introduction To A Special Issue Of The Industrial & Labor Relations Review), Rosemary Batt, David Holman, Ursula Holtgrewe

Rosemary Batt

This introduction to the special issue on the globalization of service work provides an overview of the call center sector and its development in coordinated, liberal market, and emerging market economies. The introduction's authors situate this research in literature on the comparative political economy and industrial relations. Drawing on qualitative research and a unique survey of 2,500 establishments in 17 countries conducted in 2003-2006, they discuss the extent of convergence and divergence in management practices and employment relations. They also describe the research methodology for the overall research project, highlight its major findings, and summarize the contributions of the thematic …

Experimentation And Decentralization In China’S Labor Relations, Eli D. Friedman, Sarosh Kuruvilla

Eli D Friedman

In this introduction to the special issue ‘Changing work, labour and employment relations in China’, we argue that China is taking an experimental and decentralized approach to the development of new labor relations frameworks. Particular political constraints in China prevent interest aggregation among workers, as the central state sees this as posing a risk to social stability. Firms and local governments have been given a degree of space to experiment with different arrangements, as long as the categorical ban on independent unions is not violated. The consequence has been an increasingly differentiated labor relations landscape, with significant variation by region …

Getting Through The Hard Times Together? Chinese Workers And Unions Respond To The Economic Crisis, Eli D. Friedman

Eli D Friedman

How do post-socialist unions respond to market crisis? And what are the implications of this response for labor representation? Drawing on literature on post-socialist labor and union democracy, I argue that economic crisis affects not just labor – capital and labor – state relations, but also the relationship between union representatives and workers. Such a dynamic is highlighted by an empirical account of the divergent activities of workers and All-China Federation of Trade Unions (ACFTU) unions in China following the economic crisis of 2008. While the union responded to mass unemployment with an administrative and policy-oriented strategy, workers took to …

Insurgency And Institutionalization: The Polanyian Countermovement And Chinese Labor Politics, Eli D. Friedman

Eli D Friedman

Why is it that in the nearly 10 years since the Chinese central government began making symbolic and material moves towards class compromise that labor unrest has expanded greatly? In this article I reconfigure Karl Polanyi's theory of the countermovement to account for recent developments in Chinese labor politics. Specifically, I argue that countermovements must be broken down into two constituent but intertwined "moments": the insurgent moment that consists of spontaneous resistance to the market, and the institutional moment, when class compromise is established in the economic and political spheres. In China, the transition from insurgency to institutionalization has thus …

The Role Of Family Ownership In International Entrepreneurship: Exploring Nonlinear Effects, Salvatore Sciascia, Pietro Mazzola, Joseph H. Astrachan, Torsten M. Pieper

Torsten M Pieper

Empirical research on international entrepreneurship is growing, but results on the role of family ownership in this phenomenon are inconsistent. We believe these inconsistencies owe to prior researchers having not yet investigated nonlinear relationships. Drawing on opposing perspectives of stewardship and stagnation, we explore potential benefits and drawbacks of family ownership for international entrepreneurship and explore nonlinear relationships among these two variables. Using a sample of 1,035 US family businesses and applying ordinal regression analysis, we find an inverted U-shaped relationship between family ownership and international entrepreneurship: International entrepreneurship is maximized when family ownership stands at moderate levels. We discuss …

Customer Loyalty, Repurchase And Satisfaction: A Meta-Analytical Review, Tamilla Curtis, Russell Abratt, Dawna L. Rhoades, Paul Dion

Dr. Tamilla Curtis

The purpose of this article is to investigate the relationship between customer loyalty, repurchase/repurchase intent and satisfaction in order to attempt to resolve the mixed views on these concepts. A quantitative review of loyalty-repurchase satisfaction constructs was conducted to identify the strength and direction of the researched relationships and the influence of possible moderating factors affecting those relationships. The Hunter and Schmidt (1990) meta-analytical technique and software were employed. The results demonstrate that loyalty and satisfaction indicate strong positive relationships (0.54). Repurchase and satisfaction display a complicated relationship, which confirmed the view that satisfaction does not explain repurchase behavior. Repurchase …

Effects Of Global Competitiveness, Human Development, And Corruption On Inward Foreign Direct Investment, Tamilla Curtis, Dawna L. Rhoades, Tom Griffin

Dr. Tamilla Curtis

The purpose of this paper is to investigate which of Dunning's location-specific advantages of host countries, presented as composite indices for Global Competitiveness, Human Development and Corruption Perception, better predict the level of inward Foreign Direct Investment (FDI). A stepwise multiple regression method was applied on a sample of 129 countries, which was further divided into two subgroups: OECD members and non-OECD members. The study provides evidence that global competitiveness and the level of corruption of the host country are important determinants for inward FDI. For non-OECD countries the Human Development index appears to be an additional FDI determinant. More …

Deification Of Market; Homogenization Of Cultures: 'Free Trade' And Other Euphemisms For Global Capitalism, Gwendolyn Yvonne Alexis

Gwendolyn Yvonne Alexis

In this book chapter, I argue that states and MNCs enter into extraterritorial pacts with global institutions like the WTO, UN, and IMF to derive economic benefit from international trade. Given that both entities are drawn to international trade by the quest for financial gain, there is no justification for attributing to either corporations or their countries of national origin malevolent intent such as colonization of the world under the banner of a particular culture. Economic actors direct their deliberate and intentional activities towards achieving economic goals; and this is done to such an extent that they are often willing …

China's Renewable Energy Push And Rare Earth Materials, Kyle Herman

Dr. Kyle S. Herman

This paper looks at the political and economic implications of China’s renewable energy industrial policy (REIP) within the context of trade policy. Clean energy technologies, including renewable energy and energy efficiency products, represent new territory for global policy and the World Trade Organization (WTO). It is important to look at what role the WTO plays in clean energy products because its facilitation or obstruction of these might ultimately determine the success of renewable energy technologies and, subsequently, climate change policy.

Deification Of Market; Homogenization Of Cultures: 'Free Trade' And Other Euphemisms For Global Capitalism, Gwendolyn Yvonne Alexis

Gwendolyn Yvonne Alexis

In this book chapter, I argue that states and MNCs enter into extraterritorial pacts with global institutions like the WTO, UN, and IMF to derive economic benefit from international trade. Given that both entities are drawn to international trade by the quest for financial gain, there is no justification for attributing to either corporations or their countries of national origin malevolent intent such as colonization of the world under the banner of a particular culture. Economic actors direct their deliberate and intentional activities towards achieving economic goals; and this is done to such an extent that they are often willing …