Abstract
The papers aims to analyse the key drivers for internationalisation in furniture industry by taking into consideration the cross-border activities of selected furniture manufacturers in Poland and Germany in comparison. The results show some similarities in internationalisation strategy design of selected furniture manufacturers in both countries. Export tends to be the predominant foreign market entry mode, and major motives to internationalise tend to have a reactive nature. There are some differences with regard to manufacturing location decisions, whereby the general assumption is confirmed that certain manufacturers are in a more advantageous position by concentrating their production at home.
Highlights
Diminishing barriers to international trade, crosscountry variations in production costs and the widening scope of production fragmentation at national, regional, and global level have unequivocally reshaped global value chains (Grossman & Rossi-Hansberg 2006)
This paper aims to analyse the key drivers for internationalisation in furniture industry by taking into consideration the cross-border activities of selected furniture manufacturers in Poland and Germany in comparison
The objective of the conducted research is to analyse opportunities arising from development in foreign markets as well as to present the involvement of German and Polish furniture manufacturers in internationalisation strategies in comparison
Summary
Diminishing barriers to international trade, crosscountry variations in production costs and the widening scope of production fragmentation at national, regional, and global level have unequivocally reshaped global value chains (Grossman & Rossi-Hansberg 2006). In various sectors production activities have increasingly been extended and/or re-located abroad, prompted by emerging or diminishing opportunities related to changing comparative advantages of various economies or changing needs and capacity of those involved in the production chains. In some production sectors though a predominance of export or, in general cross-border market transactions, in internationalisation strategy design is to observe. Foreign production locations are subject to a great variety of risk factors, meaning that manufacturing location decisions have become inherently complex. Relocating production abroad has repeatedly been subject to reconsideration, as many companies had, at best, mixed results (Tate et al 2014). Companies, while expanding internationally, must understand and prepare for dynamic changes at different locations that strategically necessitate a change of scenery with regard to their cross-border transactions
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