Commercial Diplomacy Research Articles

Digital channels and technologies for commercial diplomacy: conceptualisation and future research propositions

In this article, we provide a conceptual framework for the practice and study of commercial diplomacy in the light of two developments in the field of diplomacy. The first development in the field is related to the relative popularity of two new terms in diplomatic practice: public diplomacy and nation branding. The second development is the role of information and communication technologies (ICTs). Our main objective is to clear the conceptual ambiguity by demonstrating the role of commercial diplomacy in the larger framework of diplomatic practices and the interdependence of commercial diplomacy, nation branding, and public diplomacy specifically in the age of digital communications. With our model, we hope to bridge the gaps between different practices, concepts, and fields of studies.

Commercial Diplomacy In Serbia: Characteristics And Areas For Improvement

Abstract The paper analyses the challenges of modern commercial diplomacy (CD), which became more relevant than it was in the pre crisis period. In this context, the authors analyzed the chronology of implementation of CD in Serbia, scope and efficiency of its activities, and the areas for improvement. Some of their findings, related to the efficiency and challenges in CDs activities, are based on the questionnaire conducted among 25 Serbian CDs. The paper concludes that in order to increase the efficiency of commercial diplomacy, coordination of the activities of the responsible institutions should be improved, to avoid overlapping in their work and to rationalize use of limited resources. However, the authors emphasised that the space for contribution of commercial diplomacy to the increase of export and FDI is insufficient, due to limited export potential and poor investment climate in Serbia. The authors conclude that in order to increase the efficiency of commercial diplomacy in export promotion area, it is important to implement the necessary reforms, which will result in the restructuring of Serbian economy, make it more competitive and export oriented. To increase the inflow of FDI to Serbia, it is necessary to create a business friendly investment climate.

Conflicting Identities: French Economic Diplomacy between the State and Companies in the Twentieth Century

The question of diplomatic identity has rarely seen study from a specifically historical perspective rooted in the long term. This analysis explores the role and self-perceptions of an unknown and, yet, central actor in the French economic diplomacy: the commercial counsellor. It offers new and stimulating ideas on the entangled links between State and the business sphere in France. The fundamental ambivalence of the commercial counsellor’s identity illuminates the atypical nature of French commercial diplomacy from 1918 to the 2000s. Through assimilation into the Ministry of Economy and in a Janus-like role facing both the Quai d’Orsay and French companies, French commercial counsellors have had to endure a complicated situation whilst remaining the Cinderella of the diplomatic sphere. Deploying an historical analysis to enrich the contemporary debate on the state of diplomacy, this study explores the impact of interventions by non-state actors at the heart of the diplomatic machinery. Far from being an innovation of the 1990s, this intervention was a recurring theme throughout the twentieth century, and its examination sheds new light on the persistence of the neo-corporatist practice of commercial diplomacy in France.

Foreign Advisers and Modernisation before the First World War: British Diplomacy, Sir Richard Crawford, and the Reform of the Ottoman Empire's Customs Service, 1906–11

This article examines the British involvement in the reorganisation of the Ottoman Empire's customs service. The study focuses particularly on the role of Sir Richard Crawford, who was appointed as a consultant to the Ottoman customs administration in 1909. In doing so, the article sheds fresh light on the position of European advisers as well as on British commercial diplomacy in the Ottoman Empire during the years preceding the First World War. This topic warrants further historical research as previous studies have not considered Crawford's position and the progress of the customs reform in detail. He introduced some important reforms, but proved unable to solve the complex question over the porterage service or to increase customs revenue as much as had been anticipated. War and revolution as well as the consequent disruption of trade; the vast geographical scope of the Ottoman Empire; and opposition from local and international stakeholders to his reforms explain to some extent why Crawford was unable to modernise the customs service as effectively as had been planned. In addition, Crawford's professional background and his personal characteristics were in some ways incompatible with the requirements of the demanding diplomatic world of Constantinople.

Innovation of international business support: a research agenda for commercial diplomacy

Commercial diplomacy plays a crucial role in the interplay between international business and international relations, yet research regarding it is limited and focuses on a macro-level international relations perspective whereas more integrative meso- and micro-level research is needed. This article presents a short overview of the current stance of literature on commercial diplomacy and identifies: 1) the international business-government relationship; 2) the organisation of commercial diplomacy; 3) value creation as promising areas for future research. This research identifies how mainstream concepts from international business are relevant to commercial diplomacy and provides guidelines towards the use of explanatory multi-method research with three units of analysis (government, business and individual actors) featuring both cross-sectional and longitudinal studies.

Croatian commercial diplomacy - stepping stone toward economic recovery?

This paper outlines how commercial diplomacy and its activities could help fighting current economic crisis in Croatia. Commercial diplomacy is defined as a support to home country’s business sector for the sake of national development (Rana, 2000). Based on the situation analysis and theoretical framework, the current model of Croatian commercial diplomacy is competition and initial steps for reorganisation towards unified model. This serves as a point of departure for identification of success factors and necessary adjustments in order to improve its efficiency. Focus is on FDI promotion, since it is among main activities of commercial diplomacy and it is considered as an important tool for economic recovery. It is concluded that well targeted commercial diplomacy could support economic national and exit from crisis.

Commercial diplomacy as an instrument for enhancing economic recovery: the case of Serbia

The article focuses on the role commercial diplomacy (CD) has on enhancing economic recovery of Serbia. Serbia is chosen as a case due to being a small country (in transition), facing many economic problems, largely emanating from its economic structure, with its economy being highly oriented towards the markets of the European Union upon which it is thus strongly dependent. In the time of the current economic crisis, excessive concentration on a limited number of markets in terms of promoting export and attracting foreign direct investments (FDIs) proved to be a weakness. Having grasped these realities, Serbia started to reorient its economic activity from the EU (markets), being severely affected by the crisis, to the new, emerging economies/markets, among which four especially stand out as important for the economy of Serbia: the Russian Federation – a traditional ally of Serbia, Turkey and China – Serbia’s partner countries yet from the times of the former Yugoslavia, and the United Arab Emirates, which due to its economic performance, investment opportunities in particular, became attractive for Serbia business-wise, especially in recent years. The findings of this study go in favour of Serbia’s decision to foster its CD towards the emerging markets.

The Place of Commercial Diplomacy in Nigeria-China Relations

Analysis of Nigeria and China relations has often been generalized with the best effort to break this down ending with economic diplomacy, yet this diplomatic relations encompass many aspects with its simultaneously agonizing and palatable consequences. This article analysed the contribution of commercial diplomacy in strengthening the overall relations between Nigeria and China. This was done not only for the singular purpose of bringing to the fore this almost neglected part of the relations but to also emphasis the danger of the overwhelming proliferation of Chinese goods in Nigerian Markets. The article used secondary data supported by empirical information from relevant bodies. The paper argues that the chief reason why China entered into diplomatic relations with Nigeria is for the exploitation of its large consumer population. Thus in analysing Nigeria-China relations emphasis should be on the commercial element .The conclusion derived from the available evidence is that Nigeria-China commercial diplomacy is a major contributory factor for the decline of the manufacturing sector in Nigeria. Hence, this paper advocates a renegotiation of the terms of commercial diplomacy between the two countries and the institutionalization of trade restrictions on the importation of goods that are produced in Nigeria.

Economic diplomacy of Slovakia in times of current economic crisis

The aim of this paper is to analyse and evaluate the current state of economic diplomacy in the Slovak Republic. The first part reviews its economic development since its independence until the global financial and economic crisis and selected current macroeconomic patterns are presented. Consequently, the Slovak perception of the concept of economic diplomacy in comparison to trade and commercial diplomacy is explained. The last part analyses the objectives, organisational structure, actors involved and their relationship, and assesses the model of the organisation of the economic diplomacy. The outputs are evaluated and the main challenges in the times of current economic crisis are identified in the conclusion.

The new Croatian commercial diplomacy

This article provides a summary of the concept chosen and the efforts undertaken so far in order to establish a viable and reliable system of Croatian commercial diplomacy serving well and going hand in hand with the needs of Croatian exporters and foreign investors in Croatia. In the comprehensive analysis of activities of the Ministry of Foreign and European Affairs and following the examination of the best practices and models of several other countries, it was identified that certain improvements have to be done in the economic and trade aspects of the Ministry’s work. A new approach taken should allow for reforming the service into a modern diplomatic service adopting a new institutional culture oriented towards achieving the high-level of satisfaction of ‘the clients’ – Croatian tax payers and business community.

Immigrant Foreign Relations

President Obama’s reelection, pundits said, owes itself to the “demographic revolution,” a journalistic shorthand for the distinctly browner hue of the U.S. voting-age population. This new hue was brought about by the immigration of parents, whose lives were disrupted by U.S. military interventions and the radical global economic restructuring, and the subsequent birth of a new U.S. citizen generation. Announcing the error of their ways, Republicans speedily offered up a weaker version of the DREAM Act, hoping to court part of this demographic, namely Latinos and Latinas. Immigration, it seems, is back on politicians’ radar screen. Although published before the election, Donna Gabaccia’s book, Foreign Relations: American Immigration in Global Perspective, helps make sense of the immigration debate’s twists and turns, by moving beyond the solely domestic context in which it is usually set. Instead, she aims to map the relationship between U.S. foreign policy interests, U.S. domestic priorities (local, state, and congressional), and the immigrants’ individual and collective goals and desires. Prioritized in this triangularization of interests and actors are “immigrant foreign relations,” which Gabaccia defines as the “intersection of transnational linkages created ‘from below’ by immigrants … and American international or foreign policies, created ‘from above’ by the federal government” (p. 1). Recent arrivals, like ambassadors, diplomats, and other State Department personnel, remained “deeply concerned with the world beyond U.S. borders” (p. 1). Immigrants’ continuing ties were often inharmonious and messy. Exploring this messiness, she tells us, reveals the profound historical transformation in how citizens categorized immigration: it changed “from an international matter,” that is, organized around “commercial diplomacy and the [Constitution’s] Commerce Clause, into a domestic [one], governed by Congress and driven by the electoral politics of protectionism” (p. 236). Immigration became political.

What is Holding Back EU Exports to China?

Access to the fast-growing Chinese economy is prized by policymakers and business people. Concerns that European firms are missing out on the Chinese boom have caused soul-searching in Europe about competitiveness and led to accusations of Chinese protectionism. For the first 15 members to join the European Union this paper estimates the determinants of the share of each country's exports going to China from 2000 to 2010. China's growing share of world spending is found to be the most important factor, however labour cost differentials within Europe, two forms of commercial diplomacy, and Chinese export management policies contributed too.

Commercial Diplomacy and International Business: Inseparable Twins?

This article discusses the relationships between government and business, relating commercial diplomacy and international business success. It calls for more research on commercial diplomacy by international business scholars. It presents a short description of what commercial diplomacy is and most importantly, how, from an international business point of view, research should be undertaken in terms of business-government communication as well as the organization and value creation process of commercial diplomacy.

Letter from the Editors: Special Issue on Defining A Domain for International Business Study

This editorial article introduces the AIB Insights special issue focusing on Defining A Domain for International Business Study. The issue includes “The Domain of International Business and the AIB” by Simon Collinson, Yves Doz, Tatiana Kostova, Peter Liesch, and Kendall Roth; “What Is, and to What Purpose Do We Study, International Business?” by Klaus E. Meyer; “Commercial Diplomacy and International Business: Inseparable Twins?” by Huub J.M. Ruël, Donna Lee, and Robin Visser; and “Reprise of: “Rethinking our Roles” Address to the Academy of International Business 2012 Annual Meeting – Opening Plenary” by Ray Offenheiser.

Commercial diplomacy in practice: experiences of international business executives and representatives in Malaysia

Commercial diplomacy aims at creating and expanding business opportunities abroad. Empirical research on commercial diplomacy from a business perspective is scarce. This paper presents the results of a study on the experiences of an embassy’s commercial diplomacy activities in Malaysia by home country business executives and representatives abroad. The findings show that companies familiar with the Malaysian business environment apply less for diplomatic business support, but that support towards newcomers is assessed as valuable. Businesses experience the commercial diplomatic services as reactive, though willing to help. Matchmaking facilities are valued, especially by companies that are not familiar with the Malaysian business environment.

Análise da Estratégia Diplomática para Introdução de Transgênicos na Argentina e no Brasil

O artigo compara a estratégia diplomática de uma empresa multinacional, atuante no segmento de biotecnologia, em dois países da América do Sul: Argentina e Brasil. Aplicando-se as ferramentas de análise propostas pelo Institute for Trade and Commercial Diplomacy e por Sarfati (2007): Política Externa Corporativa - PEC, constata-se que as estratégias empregadas em cada país foram bastante distintas, assim como o resultado alcançado.

What is Corporate Diplomacy?

This study aims to analyze the concept of corporate diplomacy, that is, the organizational behavior aimed at implementing favorable conditions for carrying out corporate activities. By following a cognitive-linguistic approach, the analysis outlines the meaning of corporate diplomacy along various dimensions, and in relation to other 'bordering' concepts such as diplomacy, economic or commercial diplomacy, negotiation, and public relations. The result of the analysis allows to better define what corporate diplomacy is, and offers interesting cues for acknowledging this activity as an important function of firms with intense relationships with governments and other entities alike.

FINANCIAL SPECULATION, POLITICAL RISKS, AND LEGAL COMPLICATIONS: BRITISH COMMERCIAL DIPLOMACY IN THE BALKANS, c. 1906–1914

ABSTRACTBefore 1914, a more intimate relationship started to develop between overseas commercial activity and foreign policy. This occurred as a consequence of the politicization of international business relations that came about when other great powers began increasingly to challenge Britain's global commercial, political, and imperial supremacy. Britain had traditionally followed alaissez-faireline when it came to supporting or protecting British overseas business enterprise. In the mid-1880s, Britain was compelled to review its policy. After this, the British government was prepared to offer limited assistance to British firms, but this often took place only in regions which were significant in terms of overall policy interest, including Turkey, Iran, and China. This article examines British commercial diplomacy in the Balkans, a region which has not received much attention from historians in this framework. British commercial diplomacy there followed the general line of limited intervention and support was offered mostly on legal grounds. Local political troubles and great power politics also played a role in diplomatic decision-making as did negative cultural perceptions, but to a considerably lesser degree. In most cases, the British government refrained from supporting British business enterprise in the Balkans on account of fears about financial speculation.

African commercial diplomacy and its challenges in the context of globalisation

In view of the increasing international interest to do business with Africa, the paper provides analysis on the level of preparedness, and peculiar challenges facing Africa in conducting an effective commercial diplomacy. Increasing research is being done on commercial diplomacy in general and in the context of industrial countries. In the exception of South Africa, very little attention has been devoted to research on commercial diplomacy of Africa. The author wants to narrow this gap. Given its role on wealth creation through matching resources to investors, technology and markets, the author addresses general and specific challenges that have to be tackled for African commercial diplomacy to be able both attract and make the continent benefit fully from the newly enhanced international investments and trade. Some of the challenges, such as image building and media campaign, are beyond individual African nation’s capacity and can only be most effectively addressed by a pan-African (collective) approach. The issues and challenges are identified and discussed based on practical industry experience as well as theoretical research.

Value for money: a network approach to Dutch economic and commercial diplomacy in the USA

The USA is the Netherlands’s 6th largest export partner, the second most important destination of outward Dutch foreign direct investment (FDI) and the second largest origin of inward FDI. Given the potential for strengthening the bilateral economic relationship, the Dutch economic network in the USA has an ambitious agenda. The focal point in this agenda is the build-up of government-to-government, but increasingly also government-to-business networks, and the opening up of these networks for Dutch companies and the Netherlands economy at large. This article takes a practitioners perspective, and provides a case study on economic and commercial diplomacy ‘in practice’. It provides an overview of the ‘network approach’, illustrated by concrete examples. It will use data from the existing evaluation method in the network to assess the return on investment of the network approach in economic and commercial diplomacy. The conclusion is that the ‘network approach’ indeed appears to provide ‘value for money’.