Area Of International Business Research Articles

Banking sector performance and FDI inflows in Bangladesh: exploring the unexplored

PurposeThis research paper attempts to empirically examine the relationship between the performance of the banking industry and foreign direct investment (FDI), thereby helping the readers contemplate one of the least explored areas of the existing literature associated with the idiosyncratic characteristics of FDI resulting from its interaction with the efficient banking performance of the host country. The study has focused on the economy of Bangladesh because of its significant amount of FDI inflows from the rest of the world and its adoption of many liberalization policies, especially in the banking sector and in the areas of international business and trade.Design/methodology/approachThe study, to produce unbiased estimates, employed the autoregressive distributed lag (ARDL) model for analyzing the time series data collected from reliable sources.FindingsThe key outcomes of the study reveal that the sound performance of the banking industry appears to be counterproductive for FDI inflows, which is a bit unconventional insight. In the context of Bangladesh, trade openness, inflation rate and infrastructural development seem to be the dominant factors behind the rising inflows of FDI. Market size appears to be an insignificant determinant of FDI inflows.Originality/valueThis is a unique study because of its focus on the unexplored area in the literature.

한국 다국적 기업의 디지털 전환 및 데이터 분석 역량 준비도를 높이기 위한 최고 경영층 인식 연구

Purpose - This study investigates the differences in the recognition of the need, impact, and readiness of CEOs, directors, and employees for successful digital transformation. The success of digital transformation, which refers to the overall organizational change in business models and culture through application of advanced technologies is the shared perception and implementation of all members of the digital transformation. Design/Methodology/Approach - Based on data from 30 South Korean multinational enterprises, the difference in perception between groups was examined, and it was confirmed that there was a difference in perception among CEOs, directors, and employees. Findings - The data confirmed the relationship between the top management’s perception of digital transformation to the readiness of data analytics by employees, which is an essential element of sustainable digital transformation. Employees of the organization, which are recognized by top management as having a high need and readiness for digital transformation, are well prepared for data analytics. Third, we identified important sub-competencies through empirical analysis to derive priorities for employee competency development, and confirmed that programming ability and business domain differ between beginner and advanced levels, while the advanced scored the highest level of growth mindset. Research Implications - This study contributes to the international business area in terms of emphasizing the importance of shared perception among all members of the organization for successful digital transformation. Also, it provides priorities to enhance the readiness of data analytics for employees in terms of employee selection and development.

Determining investment size and local embeddedness under host market uncertainty and growth rates

This study employs a growth options perspective to examine how multinational corporations (MNCs) design their investment attributes under the influence of host market uncertainty and growth rates. It specifically examines MNCs’ decisions on investment size and local embeddedness under host market conditions. Using data on Korean overseas manufacturing subsidiaries, we find that MNCs choose either more-local-embedded small investments or less-locally-embedded large investments under high demand uncertainty and GDP growth rates. We also find that this choice is moderated by host market political risk and competition. Our findings imply that MNCs consider both uncertainty-driven flexibility and growth rate-induced commitment when selecting international investment modes. This consideration allows MNCs to gain flexibility as well as an enhanced ability to expand in the future. This study contributes to the literature on real options and entry modes in the international business area by showing how host market conditions and investment decisions are related.

Сучасні фактори активізації міжнародного бізнесу в Україні та світі

Introduction. The article is devoted to the issues of the modern factors of international business activation in Ukraine and the world. It has been noted that the last decade is characterized by the intensification of digital technologies and their active influence on the development of international economic activity. It has been confirmed that the most important factors in the intensification of international business are the development of information and communication technologies and the "fintech" technologies. It has been shown that the key carriers of modern digital technologies are the leading multinational corporations, which play a key role in the creation, development and dissemination of innovations. Modern TNCs directly affect new trends in international business, global competitiveness in international markets, as well as the economies of the world's economies. The article defines that in the current conditions of international business development it is becoming increasingly obvious that the interdependence between the activities of modern corporations and key trends in the world economy. Purpose. The main purpose of the article is to highlight the trends in the development of digitalization and informatization processes as the most important factors in the development of modern international business. It is necessary to study the indicators of economic activity of corporations in the sector of information and communication technologies. Results. It has been noted that the products of the ICT sector are used mainly by developed countries and especially by developing countries. The least developed countries and countries with economies in transition are almost not involved in this trade, but since 2017 they have been slowly increasing this trend. It has been confirmed that areas of international business differ significantly depending on the use of digital technologies. The risks and opportunities of digitalization for international companies have been identified. The indicators of the information and communication technologies’ development in Ukraine have been analyzed. The progressive development of the IT ecosystem in Ukraine in such elements as the number of IT outsourcing and product companies, the number of people employed in this industry, the growing market share of Ukrainian IT services and products have been identified. Among the modern world-class digital technologies that successfully transform the business environment within the country are the following: cloud computing, Internet of things, robotics, big data, machine learning, artificial intelligence, 3D printing and blockchain. It has been proved that among the main tasks of modern corporations today is the desire to gain new competitive advantages through the use of information and communication technologies, the full use of the needs of informatization of the world economy. Conclusions. Modern opportunities for TNCs in the information sphere are related to the sphere of the Internet of Things (IoT). IoT creates new opportunities for better business conduct and quality, increased customer satisfaction, consumermanufacturer relationships, and generally increased business activity in the industry The risks of informatization have been identified, namely: the growth of cybercrime; strengthening the technological vulnerability of digital infrastructure; issues of aging of fixed assets and their safe disposal; possible weakening of technological and economic national security of individual countries due to the growth of technological dependence on foreign suppliers. The issues of possible job loss due to the development of the innovative industry and automation of production processes are becoming more relevant.

David Versus Goliath: The Competitiveness Of Africa’s Local Enterprises In The Global Economy

As a result of the dynamics of globalization, the variegated economies of the world have become more homogenous, integrated, interrelated and interdependent. However, rather than becoming a veritable player in a network of interrelationship and interdependency, the African economy has increasingly become a powerless spectator in the theatre of globalization. Although there is a great deal of literature and research in this area of international business, most of it has concentrated on the multinational corporations and their effects on the host country’s economy. Research and literature in this field have mainly looked at protective measures and subsidies as the way out of foreign competition; it has rarely addressed competitive strategic responses of local firms to foreign multinational corporations operating in the local economies. Anchored on the resource-based view of the firm and the network interaction theory, the paper provides an alternative framework or a paradigm shift for analyzing the competitive options available to Africa’s local firms in a global market. From this paradigm shift, the competitive advantages of Africa’s local firms are conceptualized to be (i) a function of firm specific assets and (ii) the prevailing home market conditions. The method of inquiry adopted in this paper is textual deconstruction. The major contribution of this study to the existing globalization discourse is its shift of focus from the multinational corporation to the analysis of global competition from the perspective of the competitiveness of enterprises in less developed economies such as Africa. The suggested framework and paradigm shift can also be used by scholars to map strategic options for local enterprises in selected markets. Future research can subject the suggested framework to empirical scrutiny to see how well the arguments hold.

The Southeast Asian languages policy in Taiwan: the linguistic and nonlinguistic goals

ABSTRACT The purpose of this study is to examine the linguistic and non-linguistic goals of the Southeast Asian languages (SEAL) policy in Taiwan. It was proposed by former President Ma Ying-jeou’s administration to develop grades 1–12 students’ multilingual awareness, for there has been an increasingly significant presence of second-generation Southeast Asian immigrants at school. Since current President Tsai In-Wen’s first-term in 2016, the SEAL policy has been fuelled with an economic and sociopolitical agenda – the New Southbound Policy, the measure which is designed to advance the nation’s prospects in Southeast Asia. This study applies Cooper’s [1989. Language Planning and Social Change. New York, NY: Cambridge University Press] language policy as marketing and analyses the instrumentalist value of the SEAL. The Tsai government is conceptualised as a marketer; the SEAL are defined as the product; the Ministry of Education is assigned to the place as a hub which distributes the SEAL product to nationwide consumers; promotion piques the consumers’ interest in SEAL learning; price is set by making one’s profit gains larger than the sum of investment. The study concludes that the value of the SEAL product increases when its communication network is expanded from local immigrant communities and national school systems to an international business area.

FRANCHISING AS AN EFFECTIVE MODEL OF DOING INTERNATIONAL BUSINESS AND PROSPECTS OF ITS DEVELOPMENT IN UKRAINE

relations. The essence of franchising and its modern development is considered. The concept of franchising and franchising network, its importance inmodern forms of international business are given and the classification of franchising to the main features is carried out. The existing opportunities forthe development of franchising in Ukraine in comparison with the leading countries and the most effective realization of its potential for socio-economicdevelopment are analyzed. The importance of international franchising as an effective model of doing business is determined, the requirements for theconditions of its development are established, the analysis of the possibilities of its development in Ukraine from the point of view of variousinternational ratings is carried out. The necessity is revealed and the main priority directions of creation the conditions for realization of the internationalfranchising are given. The stages of franchising are systematized, the existing obstacles to ensuring its implementation and recommendations forimprovement from the point of view of ensuring the competitiveness of domestic subjects of international business in the implementation of the franchisestrategy to enter foreign markets are identified. The effectiveness of management of modern international business is determined by the possibility ofrealizing to access the foreign markets, the availability of different sources of income and the ability to implement different areas of internationalbusiness, which is reflected in the growth of business. It is proved that an important feature in the implementation of franchising as an effective modelof modern international business is the available potential and compliance of the conditions of development of business structures, which are precedesof the choice and belief of its implementation. This study will make possible the assessing of trends and general needs of enterprises in the implementation of the franchise model in order to ensure, above all, their effectiveness, implementation of effective strategies of managing of the entryinto foreign markets. Recommendations for international franchising development are determined on the basis comparative study of the developmentof franchising in the leading countries, an analysis of well-known world`s ratings and they are aimed of creating the prerequisites of developingfranchising in Ukraine.

КОРПОРАТИВНИЙ ФОРСАЙТ В МЕНЕДЖМЕНТІ МІЖНАРОДНОГО БІЗНЕСУ

Питання корпоративного форсайту набувають значну актуальність в управлінні мультинаціональними компаніями. Мета дослідження спрямована на визначення та систематизацію сучасних наукових поглядів щодо застосування корпоративного форсайту в сфері менеджменту міжнародного бізнесу. До основних результатів дослідження відноситься таксономія цінності застосування корпоративного форсайту за предметними областями дослідження міжнародного бізнесу. Також в статті запропоновано матрицю видів корпоративного форсайту. Вона надає можливість ідентифікувати недостатньо вивчені питання використання корпоративного форсайту в міжнародному бізнесі, до яких, зокрема, належить процес інтернаціоналізації підприємства. В подальшому значної наукової уваги заслуговують питання особливостей корпоративного форсайту в міжнародних компаніях в умовах діджиталізації та четвертої промислової революції.

The Importance and Level of Adaptation of STP Strategies for Growth in Foreign Markets: In the Case of Soft Drinks Company

STP denotes Segmentation, Targeting, and Positioning. This study's main purpose is to demonstrate the STP concept's understanding and its importance in the success or failure of a Soft Drinks company. Examines the competitive role of Soft Drinks in the global soft beverage industry. Since they operate in over 200 countries, they have a simple choice as to whether their products are standardized worldwide and whether they can benefit from economies of magnitude and adapt their products to a given market. Many literature has been written about external and sometimes uncontrollable factors that could influence a plan to position companies. This particular report has been developed with two major sections. The study covered and explained STP's concept and why STP is essential in the international business area in the first segment. In the second segment, the report covered the issue of changing and adapting the STP concept of Soft Drinks in the global market and how the companies formulate new strategies in place of their original one according to the international market's demand and volatility. Besides, this segment covered those companies' main steps to capture local business and create and enhance their brand value by securing profit margins by maintaining productivity. Based on the understanding gathered from this study, the report finally explored the practices of Soft Drinks Company in regards to this particular study area and dug out the reasons for changing and adapting its SPT strategy in the international marketplace and the underlying impact of this adaptation practices focusing on the distribution channel of Soft Drinks in overseas localized markets. These specific factors help Soft Drinks to established financial growth in the global market. The study's main limitation is the lack of enough analysis for Soft Drinks as STP analysis only a small part of the strategical analysis.

Modern Slavery Responses Need International Business Scholarship

Modern slavery poses a challenge to many areas of international business and sometimes questions the legitimacy of underlying business models. All businesses are exposed to modern slavery in one way or another through their supply chains, but their actions to address the issue differ hugely. Some blame the complexity and anonymity of international supply chains or the limits of their market power to push for change. These are of course familiar experiences of international business practitioners, but no excuse to avoid action. This article hopes to offer routes and inspiration for international business scholars to contribute to ending modern slavery.

РОЗВИТОК ІНДУСТРІЇ ТУРИЗМУ ТА ГОСТИННОСТІ В УКРАЇНІ

Сьогодні в умовах глобальних перебудов і переорієнтації галузей економіки важливим є зростання потреб і мотивів людей до туристичної діяльності. Туризм як галузь економіки поступово займає лідерські позиції в багатьох країнах світу, а також у перспективі і в Україні. Отже, маємо значний нереалізований людський, природно-ресурсний, історико-культурний, туристично-рекреаційний та науково-технічний потенціал, вдале географічне розміщення, сприятливий клімат. Також особливості ситуації в країні, економічна та політична нестабільність, умови військового конфлікту підштовхують до подальшої розбудови нашої держави, яка обов’язково повинна включати створення умов для розвитку туристичної галузі. При цьому формування високорозвинутої індустрії туризму та її інтеграція у світовий ринок туристичних послуг пов’язані з необхідністю вирішення гострих соціально-економічних проблем і залучення міжнародного досвіду. У статті розкрито, що феноменом ХХІ ст. визначають сьогодні індустрію гостинності, що стала одним із провідних напрямів соціально-економічної діяльності. Доведено, що це бізнес ХХІ ст., який сприяє створенню нових робочих місць, пошуку методів підвищення конкурентоспроможності підприємств на світовому рівні, популяризації країни на міжнародному ринку послуг та, як наслідок, підвищенню рівня національної економіки. Проте впродовж останніх років індустрія гостинності в Україні перебуває у стані стагнації, тому визначення факторів впливу на розвиток індустрії є актуальним, адже за допомогою отриманих знань можна запобігти деградації однієї з найперспективніших галузей міжнародного бізнесу. У статті розглянуто вплив чинників на розвиток індустрії гостинності, економічні дослідження потенційних можливостей цієї галузі в межах загальної стратегії соціально-економічного розвитку світу загалом та України зокрема.

CAGE distance framework and bilateral trade flows: case of India

PurposeThe paper is in the area of international business and international trade. Specifically, this paper aims to focus on cross-border trade flows of goods and services between India and its partner nations.Design/methodology/approachUsing the Cultural, Administrative, Geographic and Economic (CAGE) distance framework (Ghemawat, 2001), this paper provides empirical support for the impact these distance factors exert on the volume of trade in goods and services between countries. The sample used for empirical analysis consists of a set of 62 OECD countries which are involved in trade in goods and services with India over the period 2005 through 2015. This paper estimates a fixed-effects model to provide a comprehensive examination of all the distance factors impacting the bilateral cross-border trade flows of India.FindingsThe empirical findings in this paper show that different dimensions of the CAGE distances have varied influence on volume of trade flows between India and its trading partners. Also, the extent of this influence is guided by the nature of industries – manufacturing or services.Originality/valueDeparting from the common practice in the literature, using the trade flow data for both Indian manufacturing and service sectors separately, this paper examines to what extent is the impact of these distance factors industry driven.

Five decades of research on foreign direct investment by MNEs: An overview and research agenda

Despite the significance attached to foreign direct investment (FDI) by Multinational enterprises (MNEs), there are is no comprehensive review of the FDI literature. Moreover, those that have been published, focus on subsets of FDI. This review systematically examines the empirical as well as theoretical research on FDI through an analysis of 500 articles published during the last five decades. Theoretical models, methods, context, and contributions to scholarship were reviewed. We strive to highlight the key theories, paradigms, and articles and provide directions for future research. We conclude that FDI has evolved as the most significant area of international business.

Blockchain technology in international business: changing the agenda for global governance

PurposeBlockchain technology has extended beyond the border of cryptocurrency and taken hold in various areas of international business. This study aims to analyze the impacts of blockchain on international business and the resulting challenges and implications for global governance.Design/methodology/approachThe analysis of multiple blockchain applications in international finance, banking and insurance, supply chain management and logistics and marketing and advertising shows that the use of blockchain in international business has different impacts on global governance.FindingsAlthough the protection of property rights can be improved and transaction costs can be reduced, the effects on other functions of global governance are more ambivalent.Research limitations/implicationsAs a recommendation for future studies, the need for more multidisciplinary and empirical research is proposed.Practical implicationsAs the technology disrupts business activities, it also affects the governance of these activities on a global scale. Suggestions for the future regulation of blockchain applications in international business are developed.Originality/valueBlockchain technology has extended beyond the border of cryptocurrency and taken hold in various areas of international business. This study aims to analyze the impacts of blockchain on international business and the resulting challenges and implications for global governance. The application of blockchain technology in international business across multiple industries is explored in order to draw conclusions about its impacts on global governance. It is determined that blockchain brings about both challenges and benefits for global governance.

Toward Greater Understanding of the Relationship Between Entrepreneurial Orientation and International Performance

Despite of the importance of entrepreneurial orientation (EO) in international performance, we have yet to obtain sufficient insights into how and why a firm’s EO strengthens international performance. This article focuses on the underlying mechanism through which EO influences international performance, and develops a model of EO → knowledge creation → international venturing, and new product development decision-making flexibility → international performance linkages. Following a survey of 141 Taiwanese electronics firms, the results provide support for our proposed mediating process behind the EO–international performance link. These findings offer several theoretical and practical implications in the entrepreneurship and international business areas.

Global strategy gone astray: Maersk's big box boats and the world shipping industry

AbstractA.P. Moller‐Maersk Group (A.P. Moller‐Mærsk AS in Danish), commonly known as Maersk, is the world's largest global shipping conglomerate from Denmark and carries a rich history and corporate heritage in the industry. The company operates large container ships which are mostly known as “big box boats” in the industry. By using interdisciplinary literature and the shipping industry's operational routes and corporate developments, this case‐based research analyzes and discusses Maersk's internationalization and its global strategies. Although Maersk aggressively sought internationalization and company‐specific expansion, its global strategy and international expansion areas have encountered problems because of the slowdown of the global economy, de‐globalization, and the U.S.–China trade tussle. The case‐based research analyzes and discusses these issues within the areas of international business and the company's global strategies and industry‐specific competition. Analysts and industry observers believe that Maersk will continue to be a major shipping and logistics firm and will thrive in global markets. At the same time, the company will be impacted by the changing competition, regulatory forces, and new technologies in logistics and global shipping. This case study also provides future developments and growth prospects of Maersk and the shipping industry.

Economic Determinants of Foreign Direct Investment in India

Foreign direct investment is an investment made by a firm or individual in one country into business interests located in another country. It is one of the most interesting topics in the area of international business and trade. Foreign companies invest directly in fast growing private Indian businesses to take benefits of India. The foreign investors mostly from the urbanized dynamic centers are enhancing international production by investing in resource abundant economies. This shows substantial differences in specifications with little agreement on the set of covariates that are included. The main objective of this FDi are To examine the policy framework of India in relation to foreign direct investment and to analyze the trends and patterns of foreign direct investment in India and to assess the present position of FDI in India This paper empirically attempted to investigate the determinants of foreign direct investment in India. This paper investigates the role of economic structures as determinants of foreign direct investment inflows. The exports has been emerged the most powerful determinant of FDI. This article is to understand the extent to which well functioning economic structures are important drivers of FDI inflows into advanced countries. The Various factors which play a significant role in attracting FDI into a particular state are also examined. It is an appealing concept through which companies progress and enter into new markets as a result of globalization. It has grown that the academic and policymaking worlds have struggled to keep up with the expanding incident. FDI is an engine of economic growth and development of Indian economy but in this respect proper directions are needed to improve the quality of the Indian economy as a whole.

Evolution of Central and Eastern Europe related international business research

This study reviews the presence of articles related to Central and Eastern Europe (CEE) in Web of Science (WOS). Bibliometric analysis first reveals the trends of CEE-related articles in the areas of international business (IB), management and economics up to 2016. The results show steady growth in absolute and relative numbers after 1990, intensifying since 2010. Second, we conduct topic research using network analysis with blockmodeling. We identify a network of topics and their interrelations over time and used them to periodise the CEE-related research in IB. The most-cited CEE-related IB articles and the main citation path are also presented. The analysis adds to the discussion of how the CEE region is explored in IB research, its contributions, impacts and the challenges facing regional research in the future. In this study, a methodology and framework for performing a comprehensive bibliometric analysis on regional IB research is applied.

Gradual Internationalization vs Born-Global/International new venture models

PurposeDuring the last two decades, studies on the theoretical models in the area of international business (IB), such as gradual internationalization and the born-global firms, have gained the attention of researchers. The purpose of this paper is to critically review the studies on the process of internationalization (Gradual Internationalization vs Born-Global/International new venture models) to identify the research gaps in this area and to prepare a future research agenda.Design/methodology/approachSystematic literature review method was employed for this review. The authors highlight the findings from prior studies, compare and contrast salient characteristics and features, based on the articles published in journals with an impact factor score of at least 1.0, and provide directions for research.FindingsThe authors find that there are several areas that were under-explored in prior research. There is a great potential for theoretical extension and theory development in this field as it covers the tenets of four subjects: IB, marketing, strategic management and entrepreneurship.Originality/valueThere is no comprehensive/integrated review exploring the methods/variables and constructs used in prior studies integrating gradual internationalization/born-global models based on all the articles published in well-regarded academic journals. This review seeks to provide deeper insights, which help us to contribute toward the development of this research field.

ECONOMIC FACTORS AS ONE OF INTERCULTURAL FEATURES NEGOTIATING IN INTERNATIONAL MANAGEMENT

Cultural varieties between negotiators are constant in international business negotiation processes. In our modern world, there is a rapid development of international connections in all kind of spheres of human activity. The major aim of this study is to analyse and develop knowledge on the characteristics of intercultural negotiation that will give opportunities to the national representatives to be determined to their particular types of cultures, as well as to endow the characteristics of different countries in some business spheres.On a regular basis, in order to manage the expectations of the other party to the negotiations, it is important to discover the values of the associated partner at the supply stage and to try to manage all the information in the negotiation process, understanding the values and context of the other party involved in the negotiation process in the right place in order to make somewhat useful expectations from the other side, which would help to escape new conflicts in various business bargaining processes.In general, is notable from everyone that culture impacts the time, the style, and the course of the negotiation process. If prevented, cross-cultural connections may weaken an organization’s position in the market, protect it from fulfilling its purposes and eventually lead to reverse of negotiation. The research paper is focused in the scientific discussion part on the impact of intercultural negotiations on the international business environment, it can ensure inspiration and guidance for entrepreneurs, as well as helping them to understand the complexity of economic factors as one of the intercultural negotiating features which is of more interest for the students who are working on cultural diversity and its impact on business. This research thoroughly connects the characteristics of various national cultures with different areas of international business and tries to show the relationship and complexity of international negotiation issues in different contexts. The article should be useful resource for experts, students and researchers who are conducting more research in this sphere.