Buy(pass)ing Indigenous? Settler Co-optation of the Procurement Strategy for Indigenous Businesses

Abstract: This chapter on "Global Business and Trade Strategies" provides a comprehensive exploration of the key concepts, economic impact, and historical evolution of global business and trade. It highlights the fundamental importance of international trade in promoting economic growth, improving efficiency, and fostering innovation. The chapter traces the historical context through an examination of early trade routes, the colonial trade era, the Industrial Revolution, and modern trade agreements like GATT, WTO, NAFTA, and TPP. The chapter delves into the drivers of global business, including economic policies, market demand, technological advancements, and cost efficiencies, and explores how globalization has reshaped business strategies to achieve competitive advantage. It analyzes the global trade environment through the lens of economic, political, legal, and cultural factors, and discusses key international trade theories such as comparative and absolute advantage. The roles of international economic institutions, trade policies, tariffs, and trade agreements are examined, along with strategies for managing cultural diversity in international business. Market entry strategies such as exporting, importing, foreign direct investment (FDI), joint ventures, strategic alliances, licensing, and franchising are thoroughly examined, with a focus on benefits, challenges, and best practices. The chapter also emphasizes global supply chain management, including logistics, risk management, and the role of technology. International marketing strategies, financial management, and legal and ethical issues are addressed, highlighting the importance of digital marketing, currency exchange mechanisms, compliance, and corporate social responsibility. The chapter concludes with case studies of successful global business strategies and a summary of key points, future trends, and recommended further reading. Keywords: Global Business,International Trade,Economic Impact,Historical Trade Evolution,Globalization,Trade Theories,Economic Indicators,International Economic Institutions,Trade Policies,Cultural Differences,Market Entry Strategies,Exporting and Importing,Foreign Direct Investment (FDI),Joint Ventures,Strategic Alliances,Licensing,Franchising,Supply Chain Management,Logistics and Distribution,Risk Management,Digital Marketing,Financial Management,Currency Exchange,Risk Management,Budgeting and Forecasting,International Trade Laws,Ethical Business Practices,Corporate Social Responsibility (CSR),Intellectual Property Rights,Case Studies,Multinational Companies,Innovation,Competitive Advantage,Sustainability and Global Business Strategies.

Launched in 2015, the Indigenous Procurement Policy (IPP) has generated significant public procurement spend towards Indigenous‐owned businesses in Australia. With government agencies exceeding their targets for Indigenous procurement, the Indigenous business sector growing, and the IPP maintaining bipartisan support, the IPP appears to stand out as an isolated area of success in federal Indigenous economic policymaking. Yet, despite operating for a decade, there has been almost no analysis of the IPP and the distribution of contracts across the Indigenous business sector. Without this analysis, it is challenging to understand the full scope of the IPP's impact and the degree to which broader aspirations for the IPP are being fulfilled. This paper analyses the distribution of Commonwealth public procurement contracts awarded to Indigenous businesses in the first 8 financial years of the IPP (2015–16 to 2022–23), using contract data provided under Freedom of Information. Though the IPP has generated procurement contracts for over 3900 Indigenous businesses, this analysis finds that over 50% of the number of contracts valued over $10,000 have been awarded to just 11 businesses, with 50% of the accumulative value of contracts over $10,000 awarded to 18 businesses. Contract flows are heavily skewed to businesses located in major cities, primarily Canberra, and to businesses in select industries. This analysis also finds that approximately three quarters of the accumulative value of contracts over the lifespan of the IPP have been awarded to businesses with 50%–51% or unreported Indigenous ownership rates. Ultimately, this analysis demonstrates the need for amendments to the IPP—including the development of a more robust and culturally accountable definition of an Indigenous business—that ensures that the economic and social outcomes of the policy match the expectations and aspirations as defined by those in the Indigenous business community. Points for practitioners This paper analyses public procurement contract data on Indigenous‐owned firms for the first 8 years of the IPP. Fifty per cent of all contracts of over $10,000 have been awarded to just 11 businesses, and 50% of the total value of all contracts have been awarded to 18 businesses. Forty‐seven per cent of the total value has been awarded to businesses of between 50% and 51% Indigenous ownership, with an additional 27% to businesses with unidentified Indigenous ownership status. Over 40% of the number and 30% of the value of contracts have been awarded to businesses in Canberra. Though the IPP has been successful in exceeding its Indigenous procurement targets, the way these targets are being met reveals limitations in the policy design. Incorporating Indigenous‐defined measures of success in the design of the IPP and adequately pricing the social value creation of Indigenous firms may better reflect the social and economic aspirations of the IPP. Enhancing Indigenous governance over how the IPP operates—including through developing a more robust, workable, and culturally accountable definition of an Indigenous business—will ensure the IPP delivers on Indigenous‐defined metrics for success.

Major changes have occurred in the competitiveness and market structure of Indian banking. Technological and digital innovations are transforming the banking services of the future. In the near future, it is expected that technological improvements will have a major impact on the global financial sector. Financial institutions' business models and strategies are challenged by innovations in payments, lending, asset management, and insurance, but these innovations also present opportunity for new entrants and established market players. Due to a greater reliance on information technology, the financial services industry is characterised by developing technical developments known as fintech. The growing adoption of technology by traditional banks, whether through internal improvements or joint ventures with fintechs, is in line with the idea of new-generation banking. This is pushing the banking industry to adopt new business strategies and provide cutting-edge goods and services. Consumers today expect banks to provide them with dependable, individualised, and efficient services. This is especially true for retail clients. Offering financial services that are both inexpensive and available to everyone is therefore necessary. small banks. Neo banking is one such innovative tactic employed by fintech companies. The financial industry term "neo banking" is revolutionising the Fintech sector in India. Now making their way into India, the highly successful Neo banks allow customers to obtain financial services with just a click of the mouse. Neo banks offer their customers, especially the underbanked population of our country and the tech-savvy generation, state-of-the-art banking solutions. As a result, the purpose of this research paper is to analyse the opportunities and problems associated with the notion of neo banking.

The fundamental unit of production in microeconomics is the firm, and this mirrors reality in the United States and United Kingdom. But elsewhere, business groups can be the more important unit, for business strategy is often formulated at the business group level, not the firm level. In many countries, this is legally enshrined in corporate governance codes that assign officers and directors a duty to act for their business group, not their firm or its shareholders. Even where a duty to individual firms' shareholders exists, business groups often have pyramidal structures of intercorporate blockholdings that entrench controlling shareholders, usually wealthy families, who run their groups to maximize their utility. This can impose exacerbated agency problems. In either case, foreign joint venture partners who expect domestic firms to maximize shareholder value can be sorely disappointed. We explain agency behavior in business groups and how controlling insiders can divert resources between firms they control, including joint ventures, to enrich themselves; and highlight differences between this behavior and agency problems in freestanding firms. We then examine the telecoms industry in Brazil, a country in which most large businesses belong to pyramidal business groups controlled by wealthy families. We find that joint ventures between Brazilian telecoms firms and partners from countries where business groups are rarer have significantly elevated failure rates; while joint ventures with foreign partners from countries where pyramidal groups are more common are more likely to succeed. We then present clinical examples illustrating the mechanisms that drive such divergent performance in joint venture partnerships. While our results are based on a single industry in a single country, we believe they highlight a previously unexamined important issue in international business strategy.

PurposeSince the early 1990s, the US natural gas sector is characterized by substantial industry restructuring as a result of regulatory requirements following a liberalization objective. Accordingly, firms have chosen different strategies as a reaction of regulatory constraints, such as acquisitions, forming holding companies, or joint venture investment. In order to contribute to the success of business strategies driven by the regulatory framework, the purpose of this paper is to provide first evidence for the impacts of business strategies on a firm's efficiency within the gas transmission business.Design/methodology/approachThe approach taken is a stochastic frontier analysis.FindingsThe results highlighted significant effects of acquisitions, holding structures, and joint ventures within the industry on the firms' technical efficiency estimates. The paper finds evidence for efficiency improvements caused by the new shareholder. The results suggested those holdings to be successful which have great experience in the construction and operation of oil pipelines. In the case that firms formed a joint venture to construct and operate a gas transportation pipeline, the empirical analysis showed a negative impact of such a joint venture on technical efficiency of the pipeline company.Originality/valueThe paper provides evidence for the missing link between operating performance and the evaluation of different business strategies in terms of efficiency within the natural gas interstate pipeline industry.

We investigate the impact of market‐supporting institutions on business strategies by analyzing the entry strategies of foreign investors entering emerging economies. We apply and advance the institution‐based view of strategy by integrating it with resource‐based considerations. In particular, we show how resource‐seeking strategies are pursued using different entry modes in different institutional contexts. Alternative modes of entry—greenfield, acquisition, and joint venture (JV)—allow firms to overcome different kinds of market inefficiencies related to both characteristics of the resources and to the institutional context. In a weaker institutional framework, JVs are used to access many resources, but in a stronger institutional framework, JVs become less important while acquisitions can play a more important role in accessing resources that are intangible and organizationally embedded. Combining survey and archival data from four emerging economies, India, Vietnam, South Africa, and Egypt, we provide empirical support for our hypotheses. Copyright © 2008 John Wiley & Sons, Ltd.

We investigate the impact of market-supporting institutions on business strategies by analyzing the entry strategies of foreign investors entering emerging economies. We apply and advance the institution-based view of strategy by integrating it with resource-based considerations. In particular, we show how resource-seeking strategies are pursued using different entry modes in different institutional contexts. Alternative modes of entry - greenfield, acquisition, and joint venture (JV) - allow firms to overcome different kinds of market inefficiencies related to both characteristics of the resources and to the institutional context. In a weaker institutional framework, JVs are used to access many resources, but in a stronger institutional framework, JVs become less important while acquisitions can play a more important role in accessing resources that are intangible and organizationally embedded. Combining survey and archival data from four emerging economies, India, Vietnam, South Africa, and Egypt, we provide empirical support for our hypotheses. Copyright @ 2008 John Wiley & Sons, Ltd.

Global changes related to economic and geopolitical factors have influenced business sustainability. The pressure of ESG factors also impacts business strategies. PMM, a coal trading company, is exploring a new business venture in mineral trading. PMM needs to formulate a strategy for developing its mineral trading business. The purpose is to analyze external and internal factors that influence the business development strategy of mineral trading, formulate strategic alternatives, and determine the appropriate business strategy priorities. Industry foresight is used to assess the future business environment for gold and nickel mineral trading. For the macro and external environment, PESTEL and Porter’s 5 Forces are used, while internal analysis uses the VRIO framework. Strategic alternatives are formulated through SWOT, and strategy prioritization is determined using a hybrid AHP-SWOT (A’WOT). The results show that gold and nickel are in increasing demand, making them viable for PMM to enter the mineral trading business. Strength factors rank highest. The most influential internal factor is the efficiency of the international joint venture company based in Singapore, which serves as a key strength for entering the new business. Meanwhile, AP/AR management is the main weakness. The most influential external factors are the low threat from new entrants, which are considered opportunities. On the other hand, low buyer differentiation is considered a threat. The strategic alternatives for PMM’s mineral trading business development include optimizing the Singapore-based joint venture subsidiary as a center for international development and trade, mastering mineral trading competencies, and enhancing operations with technology implementation. Keywords: business strategy, mineral trading, EFE, IFE, SWOT, AHP

ABSTRACTSince the 1990s certain retail companies have evolved into some of the largest and most dispersed transnational corporations worldwide. However, within the ‘new era of retail distribution’ retailers are increasingly divesting from foreign markets. This study addresses these recent and under-explored dynamics by revealing the traces transnational retail corporations leave after divesting from a country. It explores the aspect of learning of host market retailers from entering transnational corporations (TNCs) and examines how foreign knowledge is adjusted in the business strategies of these local actors. It takes a fresh empirical slant using qualitative interviews with host market retail managers including former TNCs’ subsidiaries operating under domestic ownership. The emerging economy of Turkey serves as an empirical example. The paper finds that foreign retailers transfer firm-specific resources to the local retail through (1) demonstration and imitation, (2) vertical linkages with suppliers, (3) joint ventures and acquisitions, and (4) labor turnover of TNC trained staff. Certain successful local companies adjust the foreign knowledge based on their local knowledge and strengths, their high level of flexibility and deep territorial embeddedness, and create ‘hybrid’ business strategies. These findings suggest that dynamic capabilities are crucial to successful retailing in an international competitive environment. TNC managers should work with local staff in partnerships of equals and managers of locally operating companies should incorporate new knowledge by hiring TNC trained staff.

INEX Pharmaceuticals is developing a liposomal formulation of vincristine [Onco TCS, vincacine, VSLI, Vincristine sulfate liposomes for injection] for the treatment of relapsed aggressive non-Hodgkin's lymphoma (NHL) and other cancers. It is being developed using INEX's proprietary drug-delivery technology platform called the transmembrane carrier systems (TCS), which enables the targeted intracellular delivery of various therapeutic agents. Liposomal vincristine is expected to have certain advantages over the existing standard preparation of vincristine because the use of TCS technology enables the vincristine to circulate in the blood for longer, accumulate in the tumour, and be released over an extended period of time at the tumour site. The application of TCS technology to any agent, including vincristine, has the potential to increase the efficacy and decrease the side effects of the agent. INEX decided in 1998 to focus on gaining approval for liposomal vincristine in the treatment of relapsed aggressive NHL because no standard therapy was approved for this indication. In 1999, liposomal vincristine was granted accelerated development status by the US FDA, which enables the FDA to approve it based on the surrogate endpoint of a single clinical trial. In addition, the FDA granted liposomal vincristine fast track status in August 2000. In April 2001, INEX and Elan Corporation formed a joint venture for the development and commercialisation of liposomal vincristine, with both companies contributing assets to the venture including worldwide rights to the product and intellectual property rights. The joint venture was called IE Oncology. However, in June 2002, Elan announced that it was going to focus its business strategy on three specific areas, which would not include cancer therapies. INEX announced it had regained 100% ownership of liposomal vincristine in April 2003, by reacquiring the 19.9% equity interest held by Elan and in addition retaining a fully paid-up licence to Elan's intellectual property pertaining to liposomal vincristine. All obligations to Elan under the agreement will be met through three milestone payments totalling $8 million. Some of the milestones may be paid in shares valued at the then current market price. In January 2004, INEX and Enzon Pharmaceuticals formed a strategic partnership to develop and commercialise liposomal vincristine. Under the terms of the agreement, Enzon receives the exclusive North American commercialisation rights for liposomal vincristine for all indications. INEX will receive upfront and milestone payments as well as a percentage of commercial sales. Additionally, the formation of this partnership triggered a US$3 million payment from INEX to the former joint venture partner, Elan Corporation. Nine clinical trials of liposomal vincristine are currently being conducted, including one phase I/II trial and eight phase II trials. A phase II/III trial was completed in December 2002. In September 2003, Inex commenced a 'rolling submission' for liposomal vincristine by submitting the first of three major sections of the NDA to the FDA. The second major section was submitted to the FDA in December 2003. INEX expects to complete the filing with the submission of the clinical section of the NDA in the first quarter of 2004. Dow Jones Newswires reported on 1 October 2001 that the CEO of INEX expects Onco TCS to achieve sales of between $US100 and $US400 million annually for the company. FDA approval was then predicted for late 2002 or early 2003.

In the year 2016, according to estimates by the Chinese Bureau of Statistics, joint ventures (JV) with foreign partners contributed over 25% of foreign investment inflows in China. To the extent these JV help emerging economies such as China become more competitive and innovative is a positive consequence that is widely welcomed by the international community. However, the alleged forced technology transfer in these ventures is the Achilles heel that has evoked various retaliatory responses from governments worldwide. The United States recently studied the issue in its section 301 investigation and subsequently implemented various measures, including tariffs worth over USD 250 billion, which led to the onset of the so-called US-China trade war. The European Union (EU), on the other hand, called for the regulation of forced technology transfer and resorted to a more restrained manner by officially filing a complaint before the World Trade Organization (WTO). The EU’s complaint confirms the onerous set of conditions – such as forced technology transfer for approval of investments in strategic areas such as electric cars and the biotech sector – that stand in clear contrast to the China’s commitments when it first joined the WTO. For the companies, particularly those in the high tech sector, intellectual property is a key source of competitive advantage. Knowingly sharing this source of advantage means that rational firms that seek profit maximization derive some unrivalled gains through these collaborations. Against this mixed backdrop, using inter-disciplinary insights from law and business strategy, this article, a part of series of articles on the subject, critically assesses the contemporary debate and different approaches to China’s practice of ‘discriminatory licensing’ and ‘forced technology transfer’. Technology Transfer, Discriminatory licensing, Joint Ventures, section 301 US Trade Act, European Union, Market Economy Status, State Owned Enterprises, WTO

This study tests two competing theories concerning human resource practices and firm performance--best practice theory and contingency theory. Using data collected from 201 firms in eastern China, the findings show that best practice theory applies for human resource practices such as emphasis on training and development, pay competitiveness, incentive pay, long-term orientation on human resources management. However, team work, job security and promotion from within, which are assumed to be effective human resource practices in the West, do not significantly contribute to firm performance in this context. Moreover, contingency theory is not supported for all three basic contingencies: business strategy, ownership and industry, except that long-term orientation of human resources management is more effective in state-owned enterprises than it is in joint ventures. Human resource practices in the current Chinese state-owned enterprises and joint ventures are compared with each other and also with the effective human resource practices found in this study. Implications for managers and future research directions are addressed.

Cross‐sector joint ventures offer the chance for new business strategies and might help to solve global challenges like the climate change. This case study analyzes a cross‐sector joint venture between an organization from the profit and non‐profit sector. The challenges and opportunities of this cooperation are revealed using a qualitative research approach. Guidelines for a successful cross‐sector cooperation are delivered. Copyright © 2008 John Wiley & Sons, Ltd.

Joint ventures have been an important research topic over the last few decades primarily because of their importance as a strategic alternative in global competition. Due to the inherent complexities of international joint ventures (IJVs), involving a mixture of different managerial systems, attitudes, and business strategies, such entities are very difficult to manage. In this study, the effect of strategic, organizational, and cultural fit between IJV partners and of interpartner relations on IJV performance is examined through a questionnaire survey. IJV performance is measured by means of two constructs: “project performance” and “performance of IJV management.” The results point out the significance of the quality of partner relations for a successful IJV operation. Findings of the study also suggest that the level of organizational fit between the partners has a moderate influence on IJV performance. It was observed that strategic fit between IJV partners affects interpartner relations extensively, which in turn affects IJV performance. IJV partners with compatible technical and managerial skills, financial resources, organizational size, workload, and project experiences are expected to achieve greater IJV success.

The essence of formulating an effective strategy should be dependent on a company’s understanding of its operating environment. The implementation of a unique and effective strategy in an indigenous and competitive business environment will result in a competitive advantage. Drawing on the models that reduce uncertainty in business organisations, this chapter examines the dynamics of indigenous strategic management practices in Africa using Dangote Cement in Nigeria and Equity Bank in Kenya as case studies. The conceptual framework of this chapter presents the synthesis of strategic management practices in Africa; a global perspective and emphasis on Africa and as a result of which emerging organisations adopt these management practices and findings from both organisations. We discuss the tenacity of Dangote Cement entrepreneurial understanding of the Nigerian political, social and economic environment and its effective government relationship. This chapter examines the challenges and trends of strategic management practices in Africa and the key success factors in doing business in Africa, despite the depth of challenges in a business environment that is volatile, uncertain, complex and ambiguous. We discuss Equity Bank’s stakeholder management practices, strategic leadership and its inclusive business model, developed to enhance financial inclusion and access to available and attractive financial services for those at the bottom of the pyramid. Significantly, we argue that to succeed in Africa, businesses must understand the dynamics of strategic leadership, the cultural context of the operating environment, stakeholder management and include the social dimension of business in their business strategy.