Business Abroad Research Articles

Digital Attaches in the System of Ensuring Economic Security of the Russian Federation: Using Digital Platforms and Ecosystems as an Example

The study deals with the issue of forming a strategy for the activities of digital attaches, which are currently being gradually formed at some diplomatic missions of Russia. It is emphasized that the economic security of the country in the context of digital transformations will largely be determined by a competent and balanced policy to protect the interests of Russian business abroad. The object of our research can be identified as the activities of digital attaches aimed at supporting Russian IT companies. At the same time, emphasis is placed on the fact that a number of wellknown Russian IT companies are forming their own digital platforms. The subject of the study is the mechanism of interaction between digital attaches and domestic developers and owners of digital platforms. It is assumed that smoothed work in this direction will contribute to the achievement of the tasks assigned to digital attaches. The author focuses on the fact that in the process of building work with digital platforms, it is necessary to take into account such important factors as the specifics of the economic life of the country where the digital attaches are based, as well as national legal norms regulating business. The author analyzes domestic and foreign scientific literature on the regulation of digital platforms, while emphasizing that the legal mechanism regulating the cooperation of digital attaches and IT companies has not yet received its clear regulatory outline. The study focuses on the fact that the effective activity of digital attaches is an important factor in ensuring the economic security of the country.

‘Like aid given by a mother to her young’: The British Overseas Airways Corporation (BOAC) and the marketing of economic development 1948–1965

This paper locates Britain’s nationalised airline, the British Overseas Airways Corporation (BOAC), in the political discourse of colonial development. Between 1939 and 1974 BOAC connected Britain to destinations across the globe for business and leisure. However, the vast majority of people in Britain could scarcely afford the luxury of flight: BOAC had the task of convincing its shareholders, of whom were paying for a product they did not use, that it served an important national purpose. This paper explores BOAC not as an airline, but as a marketer: at the heart of BOAC’s communications was a vision of Britain and its place in the world. It sought to promote its services by using the language of economic development to encourage and justify increased business abroad. In so doing, it shows how BOAC used marketing to justify its operations using political, rather than economic, messages.

MNEs' capabilities and their sustainable business in emerging markets: Evidence from MNE subsidiaries in China

This study aims to identify the causal relationship between innovation ambidexterity and multinational enterprises' (MNEs) sustainable performance. It emphasizes how innovation ambidexterity driven by dynamic capabilities can allow MNE subsidiaries to achieve social and environmental performances. Additionally, we asserted the moderating impacts of host governments' pressures on the association between dynamic capability and innovation ambidexterity. We evaluated our hypotheses using a dataset consisting of 228 MNE manufacturing subsidiaries in China using partial least square-structural equation modeling. Utilizing dynamic capability and ambidexterity theories, our research contributes to the ongoing sustainable performance literature by addressing a growing call to understand how MNE subsidiaries may achieve long-term sustainability when conducting business abroad.

DEVELOPMENT OF LEGAL REGULATION OF VENTURE ENTREPRENEURSHIP IN THE REPUBLIC OF KAZAKHSTAN

The article deals with the issues of organizational and legal support for the industrial and innovative development of the Republic of Kazakhstan, the adoption by our country of a number of state programs, Concepts, legislation and other documents in this area and their content relating to the issues of innovation and closely related to it, as a growing popularity, venture entrepreneurship. The origin of this high-risk business abroad and the beginning of its operation on the territory of Kazakhstan, as well as its modern legal regulation, contained, due to its difficult, complex specifics, in a number of codes, laws, government decrees, etc. are analyzed. It is noted that, to date, neither domestic investors on behalf of companies or individuals, nor foreign investors today are particularly interested in investing in an innovative economy, in projects related to venture financing. In turn, innovation activity, as a result of venture entrepreneurship, requires an integrated approach to regulation, taking into account its various components (intellectual, financial, scientific, etc.). The state creates conditions for attracting investments, developing venture business, taking a rather balanced approach to financing this business by supporting innovation activities provided by the subjects of the innovation system, including by investing in innovative projects, creating legal entities with foreign participation, creating or participating in investment and venture funds; development of risk investment funds, venture funds and venture financing, etc. The measures taken by the state continue to improve, and the authors of the article formulated some proposals in this direction.

The community of Chinese “expat-preneurs”: understanding the challenges of doing business abroad

PurposeTo date, research on migration and entrepreneurship has rarely focused expat-preneurs. Based on recent developments in both fields, this paper aims to investigate the under-researched phenomenon of Chinese self-initiated expatriates who choose to temporarily live and do business abroad on their own volition.Design/methodology/approachTo address this research gap, 15 in-depth semi-structured interviews with Chinese expat-preneurs living in Portugal were conducted, exposing their narratives about their multiple challenges.FindingsThe findings corroborate the theoretical need to look beyond narrow economic explanations for why individuals engage in transnational entrepreneurship and entrepreneurial itinerancy. A collective identity and ethnic community are important because they influence how opportunities are identified and pursued.Research limitations/implicationsThis is a qualitative and interpretative study in a limited geographical area, which does not intent to ensure generalizability. More research is needed to further understand the phenomenon of entrepreneurial itinerancy in Europe and among other ethnic communities.Practical implicationsThe findings provide insightful inputs to Portuguese policymakers and locals on how to support ethnic entrepreneurship. Chinese expat-preneurs also benefit from understanding how to strength their ethnic social ties in connection with local communities.Originality/valueThis study contributes to the entrepreneurship and international mobility literatures by providing new insights into the nature and dynamics of Chinese “expat-preneurs”, including their entrepreneurial itinerancy, necessary to properly understand entrepreneurs’ diversity and assist in extending transnational entrepreneurial theory.

ДЕРЖАВНА ПІДТРИМКА МАЛОГО ТА СЕРЕДНЬОГО БІЗНЕСУ В УКРАЇНІ

The article highlights the main directions of state support for small and medium-sized businesses and the functions of the state as a supporter of business development, which consists in providing not only financial but also information support, creation and maintenance of institutional support and infrastructure. The reasons of ineffective activity of the enterprises, connected with the unbalanced state policy and the lack of protection from the state are also considered. The current directions of support of small and medium-sized businesses, including those taking into account European programs, are described. State support for small and medium-sized businesses today can be considered insufficiently effective, as evidenced by a number of examples and the consequences of ill-considered decisions of the authorities, which, with the aim of stabilizing the economy in the state, have a tangible impact on the activities of small businesses and endanger the existence of a significant part of it. The development for small and medium-sized businesses is important for the country in terms of social and economic character. Effective development of this sector of the economy requires state support at the proper level. Ukraine does not have such support because of the large number of deterrent factors. A number of measures have been proposed for small and medium-sized businesses development. Among them – the universal methods of state regulation and acceleration. Also, in order to stimulate the activities for small and medium-sized businesses, it was proposed to consider the experience of European countries. Small business abroad serves as a basis for a stable economy and is the basis for the EU's social and economic development. Small business stimulates the development of competition, the introduction of the latest technology. Therefore, European society for small and medium-sized businesses, the main purpose of which is to balance the interests of the state and business, provide optimal conditions for entrepreneurship, increase the competitiveness o for small and medium-sized businesses and the country in particular. Ukraine has no clear strategy for regulating for small and medium-sized businesses, the financing system for the formation and development of small businesses is imperfect, legal and organizational issues for micro enterprises remain unmanageable.

The labour market in the restaurant sector: 2022

Introduction. The emigration of more than 5.5 million citizens of working age and the inter­nal displacement of more than 7.7 million Ukrai­nians after the start of the full-scale war with Russia caused changes in the HoReCa labor market. Problem. The portrait of an employee in the HoReCa sector in Ukraine and abroad has chan­ged significantly. Therefore, the study of the state of the labor market in the field of restaurant industry in wartime conditions is relevant. The aim of the work is to carry out a compre­hensive analysis of the Ukrainian labor market state in the field of restaurant business in war conditions, to determine the main trends and pro­spects for further development. Methods. General scientific methods of ana­lysis and synthesis, comparison, isolation, gene­ralization and resulting systematization of the researched material are applied. Results. As a result of the war there was a decrease in the market potential of the restaurant business. Consequently, the labor market changed its orientation from the employee to the employer. Candidates are forced to give in to salary interests and adapt to new realities of work. The number of line workers is reduced as much as possible, resulting in an increase in the number of responsibilities of the rest of the staff. The Ukrainian restaurant business market suffers from a lack of qualified personnel, some of whom are mobilized, belong to IDPs or refugees. The labor market potential of the restaurant business abroad is analyzed. As a result, a port­rait of a potential employee in the wartime res­taurant business is described. Conclusions. There will be a significant per­sonnel update, we will have to reckon with changes in the portrait of a potential employee, and these circumstances will have a negative impact on business in general. While the Ukrai­nian restaurant market is undergoing structural changes, nothing will fundamentally change abroad.

The “costs of doing business abroad” in a cross-border context characterised by extreme political volatility

PurposeThe purpose of this study is to describe and explain the organisation design antecedents of coordination, learning and trust in an international strategic alliance in a cross-border context characterised by extreme political volatility.Design/methodology/approachThe research was carried out as a single-case study in situ in a humanitarian international strategic alliance in Pyongyang, the Democratic People’s Republic of Korea (North Korea).FindingsIn addition to explaining the effects of interface, specialisation, formalisation and centralisation on coordination, learning and trust, the study demonstrates the influence of classic international business (IB) “costs of doing business abroad” (Hymer, 1960/1976) on the same organisational outcomes. Moreover, the study identifies intergovernmental engagement/containment/disengagement as a contextual antecedent of both organisation design and outcomes.Originality/valueThe study extends IB theory by indicating that mainstream IB perspectives may not fully explain intraorganisational outcomes in cross-border contexts characterised by extreme political volatility. Notably, the study suggests that complementary constructs such as intergovernmental engagement are needed to account for the additional costs incurred by such settings.

Business across borders: perceptions of political risk in internationalised Brazilian companies

Brazil is an emerging country in terms of political, economic, and social development. Its companies are usually in a scenario of instability, especially since mid-2010. In this context, the paper provides unpublished evidence on political risk perception in companies of diverse branches. The purpose of this study is to analyse the perception of political risk in business abroad by managers of internationalised Brazilian companies. Qualitative and descriptive research was conducted in a multiple case study through document collection and semi-structured interviews. The internationalisation processes of six small and medium-sized Brazilian companies and their managers' political risk perception were investigated. The findings reveal the political risk factors inherent to different environments for internationalised companies in a context of political and economic uncertainties, namely, the internal environment, the external environment and the environment related to the organisation itself.

Three-Phased Risk-Management Benchmark for Internationalization of Small and Medium-Sized Construction Companies

Small and medium-sized construction companies (SMCCs) typically lack the international experience of their large counterparts. International construction projects often are more uncertain than domestic projects, which can pique SMCCs' interest or necessity for external benchmarks of best practices. This study aims to provide a three-phased risk-management benchmark framework for the internationalization of SMCCs. The first-phase benchmarking evaluates how well companies prepare to undertake business abroad and what capabilities they should improve upon based on comparative data from 41 SMCCs. The second-phase benchmarking provides risk information from 49 international subcontract projects that must be managed for SMCCs. In the last phase, the benchmark delivers subcontractor risk-response strategies through the analysis of 134 international-contractual cases. Additionally, the three illustrative cases show that the benchmark framework and metrics are quite helpful for decision-makers and SMCC practitioners in evaluating and responding to their international construction project risks.

Value creation and value destruction in investor-state dispute arbitration

We investigate whether investor-state arbitration under investment protection treaties is valuable to foreign investors, and whether international arbitration has effects on firm value that are like those seen in domestic litigation. An event study of abnormal returns when claims for arbitration are filed and adjudicated show that firms gain in market value both at the time they file for arbitration and when they receive an award. These gains in value generally exceed the size of the awards, indicating that success in arbitration provides the foreign investor not only monetary compensation but also non-monetary reputational effects that reduce costs of doing business abroad. Stock markets anticipate the outcomes of the arbitration process when claims are filed and when awards are announced. The effects on firm value of domestic litigation and investor-state arbitration differ, reflecting the institutional differences between the two methods of resolving disputes.

Between Political and Economic Imperialism: Russia’s Shifting Global Strategy

Abstract Russia experienced both economic and geopolitical expansion in the 2000s. During this time, the Kremlin and big business worked in tandem to assert Russian influence in post-Soviet space. However, the annexation of Crimea and Russia’s involvement in the war in Eastern Ukraine in 2014 marked a new period that severed the state’s geopolitical strategy and the interests of big capital. While the state continues to engage in open and covert military action, the activity of Russian business abroad has sharply diminished. Relying on David Harvey’s concepts of territorial and capitalist logics of power, the article explores the interplay between political and economic imperialism during Putin’s 20 years in power and situates Russia within today’s global imperialist landscape. I find that the Kremlin’s geopolitical and geoeconomic shift in 2014 can ultimately be explained by the strategic orientation of the country’s leadership, in particular, the deeply ingrained emphasis on security and ‘hard power’. However, the turn away from economic imperialism was also structurally determined by the exhaustion of the country’s economic engine that no longer generates surplus capital in need of a ‘spatial fix’.

Directionality matters: Board interlocks and firm internationalization

AbstractResearch SummaryThis paper examines an understudied aspect of network relationships—that is, direction of relational ties. Tie direction is important since it can shape when and how firms can benefit from the international experience of other firms. We focus on a specific type of network relationship—that is, interlocking directorates, which provides a clinical context to study directionality. We show that, due to their higher familiarity, identification, and executive power, focal firm directors serving in other firms' boards (i.e., outgoing ties) are more beneficial for utilizing partners' international experience. However, outside directors sitting on the boards of focal firms (i.e., incoming ties) can bring more useful first‐hand experience and facilitate international expansion once these ties get stronger. Theoretical and practical implications of these results are discussed.Managerial SummaryAs they grow internationally, firms need to manage risks and uncertainties of doing business abroad. In this regard, they can potentially benefit from the international experience of other firms in their network. We show how firms can realize these benefits by means of interlocking ties (i.e., shared board memberships). To that end, we examine the directionality of interlocking ties. Specifically, we argue that a firm's ability to utilize partners' experience for its own international expansion is greater when its directors sit on the boards of other firms (so‐called outgoing ties) compared to when other firms' directors sit on its own board (so‐called incoming ties). However, experience coming through incoming ties is more effective for a firm's international expansion once these ties get stronger.

Policy Forum: Promoting Tax Compliance by Regulating the Digital Economy—Quebec's Uber Initiative

The development and expansion of the digital economy is changing how companies interact with their customers and suppliers. Digital business models facilitate transactions between individuals and make it easier to conduct business abroad without the need for a physical presence. However, the growing use of such models creates many challenges for tax administrations. In particular, these new business practices call into question the traditional ways of collecting tax revenues, and thus force tax administrations to innovate. In Quebec, the context surrounding the legalization of the operations of the multinational Uber has led to an agreement between the company and the provincial government providing that Uber will carry out, on behalf of the drivers using its platform, tax compliance activities that employers would normally perform. Specifically, Uber now pays the sales tax applicable to drivers' transactions directly to Revenu Québec. This arrangement helps to protect commodity tax revenues in an economic sector where tax evasion is prevalent.

Foreign Direct Investment - Ways to Implement Business Abroad

Foreign Direct Investment - Ways to Implement Business Abroad

Extractive Sector Stakeholders' Perspectives of the Extractive Sector Transparency Measures Act (ESTMA)*

ABSTRACTThis commentary considers stakeholder perspectives of Canada's Extractive Sector Transparency Measures Act (ESTMA). In 2015, ESTMA was enacted under Canada's corporate social responsibility (CSR) strategy as a mandatory CSR reporting initiative requiring the financial disclosure of all payments relating to the commercial development of oil, gas, or minerals around the globe. Despite ESTMA's intended purpose to improve transparency and deter corruption within the global extractive sector, little remains known about the acceptance of this mandatory CSR initiative by extractive sector stakeholders. Success of this government initiative likely hinges upon stakeholder acceptance of ESTMA. This study reports the results of a survey of industry stakeholders, including managers, practitioners, and academics, on whether ESTMA positively or negatively affects transparency, financial performance, reputation, decision making, and the ability of firms to do business abroad. Findings indicate stakeholders in Canada believe ESTMA has improved transparency and has had a positive effect on the reputation of Canadian firms in the extractive sector with minimal costs to financial performance, changes to decision making, or effect on ability to conduct business abroad. Using a Canadian context, the findings provide important insights for regulators and practitioners, among other stakeholders, to better understand the effects of mandatory CSR initiatives, as well as the use of legislated financial disclosures as a CSR mechanism.

The risk of doing business abroad - How to deal with contradictory extraterritorial sanction regimes?

The risk of doing business abroad - How to deal with contradictory extraterritorial sanction regimes?

A Few Implications of the COVID‐19 Pandemic for International Business Strategy Research

A Few Implications of the COVID‐19 Pandemic for International Business Strategy Research

Procedure for Assessing the Investment Attractivenessof Foreign Markets.Comparative Analysis of Former USSR Countries

One of the natural stages of development of the enterprise is the desire to expand its business abroad. Globalization, global trade integration, technology development, the emergence of political, economic, customs unions, the existence of international courts of arbitration, the emergence of elements of world culture and other factors reduce the barriers between potential investors and countries to internationalization. This phenomenon has a positive impact on the decisions of companies in diff erent parts of the world about the expansion abroad. The main goal of a foreign investor who plans to internationalize is making the most optimal choice of a foreign market where prevailing realities on business environment will enable the achievement of competitive advantage. Because of this, before internationalization, foreign investors should evaluate the investment attractiveness of all potential directions of internationalization in order to be able to realistically assess their own capabilities in these markets and assess all the risks and opportunities that may arise during the operation. The quality of the analysis which assess the level of investment attractiveness of potential directions has a large impact on the success of the company abroad. The article presents the procedure of comparative analysis taking as an example former USSR countries at the macro level.

EXPLORING CHALLENGES FACED BY MALAYSIAN EXPAT-PRENEURS IN INTERNATIONAL ENTREPRENEURSHIP SECTOR AND STRATEGIES TO OVERCOME. A QUALITATIVE STUDY ON SELF-INITIATED EXPATRIATES

Numerous terms have been associated with expat-preneurs, such as expatriates and Self-Initiated Expatriates (SIEs), in order to explore more about the exact terminology and other attributes. How do expat-preneurs brace themselves in adapting to their new environment, meet varied challenges, overcome an array of obstacles, and solving problems? This research study is to uncover the reality checks of typical expat-preneurs, exposing to the world what it takes to become an expat-preneur. The main objective of this research is to explore the truth about an expat-preneur’s lifestyles, specifically focusing on two main themes, Malaysian citizens that have become expat-preneurs and those opening their own business abroad. This study will focus on three main topics, these being factors affecting Malaysians to become expat-preneurs, obstacles that they faced when opening their business abroad, and lastly how they managed to overcome these obstacles. Five (5) Malaysian citizens staying and living abroad were selected as respondents to participate in the interview sessions and the selection was conducted by using a snowball sampling methodology. The respondents came from five (5) different countries, namely Qatar, Egypt, Singapore, Indonesia, and Thailand. At the conclusion of the research study, the results show that the reasons why these Malaysian citizens became expat-preneurs were mainly due to (1) accompanying their spouses on overseas assignment, and (2) opportunity to earn side income while abroad. The obstacles most commonly faced when opening a business abroad were (1) financial problems, (2) marketing obstacles, and (3) no basic knowledge of business and management. Finally, the strategies to overcome these obstacles were (1) taking bank loans or borrowing money from family members and (2) acquire knowledge about business and marketing from friends. These findings are useful and shall serve as basic guidelines to Malaysians who want to be expat-preneurs in the near future. It helps Malaysian expat-preneurs to comprehend an array of hardships before starting a business abroad.