J. for International Business and Entrepreneurship Development (10 papers in press)
Antecedents of network strength in foreign-owned subsidiaries: locational, expatriate, and industrial conditions
by Sven Dahms
Abstract: Although the effects of networks on numerous outcome variables, such as performance or innovation, have been investigated multiple times in the foreign-owned subsidiary literature, relatively little is known about the antecedents of network relationships. This research addresses this gap in applying configuration theory and network perspectives in order to explain network relationship strength in foreign-owned subsidiaries located in the mid-range emerging economy of Taiwan. The data collected from a large scale survey is analysed using fuzzy set qualitative comparative analysis method. The results show that there are a number of different solutions that can lead to increased network strength. These solutions, consisting of industrial, locational, and expatriate conditions, also vary with the kind of network. We hence find strong support for equifinality in MNE networks, local non-business networks, and local business networks strength development.
Keywords: foreign-owned subsidiaries; fuzzy sets; expatriates; global cities; geographic distance; fsQCA; networks.
International women entrepreneurs and international opportunity recognition skills for start-up ventures
by Imtiaz Mostafiz, Goh See Kwong
Abstract: Entrepreneurship is an alternative employment source for women in many nations. It has been shown that entrepreneurship is often a male-dominated sphere. However, women with proper skills, knowledge, learning, and support can flourish in entrepreneurial activities. The aim of this paper is to provide deeper insights on international women entrepreneurship by focusing on the success factors of women entrepreneurs, international opportunity recognition skills, and performance of start-up ventures. Building on the extant literature of human capital, social network relationships, and entrepreneurship literature, this study presents a conceptual model predicting the performance of new start-up ventures of women entrepreneurs. The article concludes with important theoretical and practical research implications and provides future research avenues.
Keywords: women entrepreneurship; human capital; social network; work-life support; and international opportunity recognition skills.
Innovation, dynamic capabilities and family firms operating in an emerging economy
by Abel Duarte Alonso, Seamus O'Brien, Seng Kok
Abstract: Drawing on the dynamic capabilities framework (DCF), this exploratory study examines family firms involvement in innovation practices, including reasons and ways to innovate. The cases of four family firms operating in an emerging economy (Uruguay) are investigated. Semi-structured, face-to-face and telephone interviews were conducted with owners and managers, and complemented with email correspondence. Based on the need to solve problems in their industry, firms management were intensively involved in various innovative processes. These processes included quality improvements, responding to a dynamic and competitive business and consumer environment, and extending the life and survival of the family enterprise for future generations. Notably, the importance of sensing and learning in the form of identifying and assimilating key information, and seizing, applying such information to develop or adopt innovation, including new technologies, emerged strongly. The findings also highlight the usefulness of the DCF to understand firms integration, and transformation of learning.
Keywords: innovation; innovative practices; dynamic capabilities; family firms; emerging economy.
Self-direction as potential predictor of undergraduates entrepreneurial intentions
by Kim Hoe Looi
Abstract: Entrepreneurial motivations merit further scholarly research owing to their scientific power to explain and predict entrepreneurial intentions and behaviours. This study bridges two streams of literature from entrepreneurial values and entrepreneurial intentions for new venture creation in the context of 205 students from a Malaysian private university. Additionally, the adoption of rigorously developed and psychometrically validated values and intention measurement instruments, as well as the structural equation modelling technique, advance entrepreneurial intentions research in terms of theoretical sophistication and methodological rigour. Using a comprehensive values model to scrutinise the simultaneous influence of five individualistic values, the results revealed that only self-direction is a significant predictor of undergraduates entrepreneurial intentions for new venture creation. Consequently, this study suggests that self-direction is potentially a universal motivation for new venture creation.
Keywords: entrepreneurial motivations; entrepreneurial values; entrepreneurial intentions; new venture creation; undergraduates; Malaysia.
Jamaican cultural attitudes to entrepreneurship: a comparative exploration
by Dave Valliere
Abstract: This is an exploration of cultural beliefs and attitudes to entrepreneurship in Jamaica. A hybrid qualitative and quantitative methodology is employed to empirically discover the existence of diverse subcultural perspectives in Jamaica that cannot be predicted from coarse measures such as Hofstedes dimensions of national culture. A comparison with similar data from Canada serves to place these results in a broader research context. It is proposed that the relative strength and preponderance of these subcultures in the local environment act to bridge between Jamaican national culture and the individual cognitions and subjective norms that directly influence entrepreneurial intentions and actions. These subcultures are therefore significant to the design of policies and practices to affect national entrepreneurship rates in Jamaica.
Keywords: entrepreneurial culture; subjective norms; Q methodology; theory of planned behaviour.
The role of market orientation in the performance of born global firms: a multi-dimensional construct approach
by Tishani Herath, Hettige Don Karunaratne
Abstract: This study investigated the multi-dimensional effect of market orientation in the performance of born global firms. To date, the existing literature lacks empirical findings from developing country contexts and the conceptualization of market orientation as a multi-dimensional construct. Thus, this study contributes to fill the said gaps in the Sri Lankan context, a developing country. The conceptual model was tested drawing on data from 225 ICT (Information and Communication Technology) born global firms and the structural equation modelling (SEM) was performed to test the hypothesised relationships. The findings indicate that all three dimensions of market orientation, customer orientation, competitor orientation and inter-functional coordination, significantly and positively influence the performance of ICT born global firms in Sri Lanka. The findings suggest several insights into the market orientation and performance relationship.
Keywords: born global firms; market orientation; customer orientation; competitor orientation; inter-functional coordination; performance.
Women entrepreneurship in Bangladesh: influential aspects and their relationship in small and medium enterprise involvement
by Md. Zillur Rahman Siddique
Abstract: This study aims to recognise influential factors for women initiating their involvement in business and the relationship among those dynamics. Current research acclimates theoretical models and hypotheses based on past literature to examine the relationship among essential aspects. To test the hypotheses, this paper develops a structured questionnaire and pre-tests it before the survey. Using CFA and multiple regression analysis, this paper has identified that technological support (TECS), training (TRA), tax benefits (TAXB), contribution for family (CFF), feminism (FEM), and entrepreneur skills (ENS) are essential dynamics for women entrepreneurship development. TECS, TAXB and CFF motivate to participate in TRA, which enriches ENS for entrepreneurship involvement. Again, TECS influences FEM, and FEM affects ENS. Finally, entrepreneurship skilled women are likely to become involved in business. Results of the study will provide guidelines for stakeholders who are dealing with women entrepreneurship development and will aid in design strategies.
Keywords: women entrepreneurship; influential aspects; SME; women business involvement; Bangladesh.
A model for understanding the process of firm establishment in foreign markets
by Desalegn Abraha, Syeda-Masooda Mukhtar
Abstract: Our understanding of the process of firm establishment of foreign firms within the developing and emerging countries remains limited, while the market-specific context-driven nature of the firm establishment process is largely overlooked in the literature. We aim to address these omissions and explore the establishment process of a Spanish telecommunication firm, Telef
Keywords: internationalisation; firm establishment; Telefónica; Brazil; Chile; Spain; telecommunication; multinational; foreign market entry process.
Special Issue on: “New Paradigms in International Business”
Greenfield investment vs. merger and acquisition as an entry strategy in Mexico: the case of Austrian companies
by Manuela Sandler, Vito Bobek, Anita Macek, Tatjana Horvat
Abstract: Over recent decades, Mexico has become a very attractive destination for FDI. When opening a wholly-owned subsidiary, firms can establish local presence through either greenfield investment or merger and acquisition (M&A). The aim of this paper is to make recommendations to Austrian companies that want to establish a wholly-owned subsidiary in Mexico. An empirical study in the form of qualitative semi-structured interviews was conducted in order to learn from the experiences of Austrian firms that have already taken the step into the Latin American nation. The size and the location of the Mexican market are the main motivations for Austrian companies to establish local presence; hence, Austrian investors can be defined as market-seekers. Also, the cost advantage is an important driver. Moreover, it is more common to build up the subsidiary from scratch. The ratio of greenfield investment to M&A is 9 to 1, simply because the value chains are not as developed yet in Mexico.
Keywords: wholly-owned subsidiary; FDI; greenfield investment; finance; merger and acquisition; Mexico; market entry strategy; location-specific investment motives.
International franchising in the fashion industry from the franchisor perspective
by Anita Macek, Johanna Kros, Vito Bobek
Abstract: Over the years, fashion retail franchising in emerging markets has seen a significant growth. Nevertheless, when a fashion brand decides to franchise its business, it also affects the control level over franchise store operations, which may influence a brands image and overall success. This paper investigates how international fashion companies can implement and assure brand standards and qualities among their franchise network in emerging markets. With exploratory qualitative research authors give more insight into the general motives for fashion companies franchising their businesses in emerging markets and the implementation of brand standards, assuring quality and control, and challenges in operating franchise stores. The research shows that the implementation process and assurance of brand standards and qualities involve high management and control skills, in which a solid, lasting relation between franchisor and franchisee is required. With relationship marketing, the brand standards implementation can be strategically planned and managed. Since follow up and control of brand standards and qualities are often inconsistent, the procedures must get standardised.
Keywords: franchising; fashion industry; emerging markets; brand standards.