Verbeke, A., International Business Strategy: Rethinking the Foundations of Global Corporate Success, 2nd Edition, Cambridge University Press, 2013

Abstract

Verbeke, A., International Business Strategy: Rethinking the Foundations of Global Corporate Success, 2nd Edition, Cambridge University Press, 2013 1 A Capsule Summary of the Book International business strategy issues have a long tradition in the academic literature and have been intensively discussed by practitioners and academic scholars. This book edited by Alain Verbeke presents a critical reassessment of different conceptual models in the literature related to international business strategy and multinational enterprises (MNEs). Based on a simple framework that provides a synthesis of different practitioner-oriented models in international business literature (especially articles from Harvard Business Review), the book picks up the essence of international business strategies and global corporate success and examines how MNEs cope with international opportunities and challenges. In this case the book describes MNE managers' possible strategies and provides suggestions, which strategies can be used effectively and how they can improve the performance of MNEs. This book is not limited to a general view of best practices; it also tries to raise awareness of MNE managers and scholars for preconditions related to successful international business strategies. The second edition of this book expands the previous edition by considering MNEs from emerging economies. Furthermore case studies were updated and learning objectives as well as managerial takeaways were added. In a nutshell, the comprehensive and strong practical approach taken in the book is highly relevant for students and practitioners in the field of international business strategy. 2 Objective and Target Audience The objective of the book is to contribute to the discussion on international business strategy. By providing a comprehensive framework including different models from international business strategy literature the book strengthens knowledge about concepts that can be applied by MNEs to improve firms' performance. Due to the practical perspective the book appears to be a well written and insightful source for practitioners who want to respond to opportunities and challenges of managing international operations. Furthermore, the book addresses Ph.D. students, researchers and other scholars who want to gain a basic, but comprehensive overview of well-known international business strategy concepts. 3 Structures and Contents The book is divided into three main parts with a total of 16 chapters. 3.1 Part I Within the first part (chapter 1-5), chapter 1 describes the unifying framework used throughout the book. The framework consists of seven main concepts, which integrate the "best" practitioner-oriented work from international business literature (including sub-themes of multinational strategic management as theory, analysis, location, environmental regulations and public policy). The seven concepts used in the framework are: (1) internationally transferable (or non-location-bound) firm-specific advantages, (2) non-transferable (or location-bound) firm-specific advantages, (3) location advantages, (4) investment in--and value creation through--recombination, (5) complementary resources of external actors, (6) bounded rationality, (7) bounded reliability. In sum, chapter 1 develops an understanding of the seven concepts of the unifying framework to lay-out the conceptual foundations of international business strategy. Chapter 2 addresses the crucial role of firm-specific advantages. Based on Prahalad and Hamel's (1990) work that core competencies are a critical source of MNE's success, chapter 2 describes the essence of core competencies and explains how companies can identify, build or acquire core competencies. Furthermore this chapter states challenges associated with the transferability of firm-specific advantages across borders and reflects requirements for expanding internationally without a sole focus on core competencies. …