International Business Strategy Research Articles

CRM СПРЯМО СТРАТЕГИИТЕ ЗА ИНТЕРНАЦИОНАЛИЗАЦИЯ

This study examines the pivotal role of Customer Relationship Management (CRM) in the realm of international business strategy. By analysing various definitions and models of CRM, it identifies how CRM strategies align with organisational goals across different market conditions and cultural landscapes. The paper synthesizes these findings to propose a comprehensive CRM approach that enhances customer satisfaction and organisational profitability while addressing the challenges of international business operations.

Unleashing synergy: exploring the impact of experiential learning and component technology on integration implementation strategy in cross-border technological acquisitions

PurposeDrawing on organizational design theory and organizational learning theory, this paper aims to examine component technology (CT) and the interaction between CT and experiential learning (EL) effects on the degree of integration (DI) of cross-border technological acquisitions.Design/methodology/approachUsing a sample of 267 firms consisting of 229 acquirer firms who started cross-border technological acquisitions from developed economies and 38 acquirer firms who initiated cross-border technological acquisitions from emerging economies over the period of 1993–2016, this study adopts a value chain framework to measure the acquirers’ acquisition integration degree for the investigation of the effects of CT and the interaction between CT and EL.FindingsFirst, this paper finds CT in cross-border technological acquisitions exerting a positive influence on the acquirer firm’s likelihood of the DI implementation, in line with the organizational design theory. Second, in view of organizational learning theory, this study finds EL and the combined effect of CT and EL to have an inverse influence on the DI.Practical implicationsThe results imply that the moderating role of EL significantly optimizes decision choices for an acquirer firm for integration implementation strategies in the form of DI, such as full integration (structural integration), partial integration and no integration (structural separation), which appears to be crucial for cross-border technological acquisitions.Originality/valueThis study contributed to international business strategies by shedding light on the importance of the DI for an acquirer firm that undertakes a cross-border technological acquisition with a CT target firm. This study explains why structural integration might be necessary in cross-border technological acquisitions regardless of the costs of disruption it imposes, as well as the contexts in which it becomes less important or unnecessary. The study disclosed that the increase in the likelihood of DI because of CT depends on the EL of the acquisition company in the host country environment and fluctuates with the prior acquisition knowledge and EL of the host country. Combining two cross-border technological acquisition’s literature streams, such as CT and EL, this study enlightens the importance of organizational learning theory and theory of organization design strategic direction making on acquisition integration implementation strategies.

How wicked is modern slavery: a consideration of Raškovic’s “taming wicked problems”

Purpose This is a response to “Taming wicked problems”, a paper recently published in CPOIB in which modern slavery is framed as a wicked problem. The purpose of this study is to convey the author’s appraisal of its contribution to policymaking regarding modern slavery in global supply chains. Design/methodology/approach The author engages in a discursive review of “Taming wicked problems”, taking inspiration from its perceived strengths and weaknesses to expand on the problem of modern slavery as a challenge to international business (IB) researchers. Findings “Taming wicked problems” is welcomed as a provocative contribution to modern slavery research in IB, although it is perceived to give too little critical attention to the problem of modern slavery itself. Research limitations/implications This is, by design, a subjective assessment of the treatment of modern slavery and policy from the perspective of an IB researcher who has previously studied the phenomenon without a wicked problem framing. Practical implications Modern slavery is a serious problem for IB scholars, as they have failed to extrapolate it from their analysis of international business strategy. This paper is intended to advance the disciplinary defence of vulnerable workers exploited to the ultimate benefit of MNEs. Social implications IB must engage critically with international business strategies that heighten the risk of human rights violations. The persistence of modern slavery disadvantages all persons in employment. Originality/value This paper seeks to better define the offense implicit in modern slavery so to inform critical IB research into its causes and deterrence.

Winners and losers in U.S.–China trade disputes: A dynamic compositional analysis of foreign direct investment

AbstractBackgroundThe trade conflicts between the United States and China have significantly disrupted global trade and economic growth. In today's globalized economy where the production of goods and services spans across multiple nations, these disputes have far‐reaching consequences that extend beyond the involved parties and impact the broader global economy.ObjectiveWe examine the effects of the U.S.‐China trade disputes on multinational investment patterns in China and Southeast Asia.MethodsUsing a dynamic compositional approach, we analyze data on firm‐level greenfield foreign direct investment.ResultsWe observe European firms increasing their investments in China to enhance market penetration, while American firms are withdrawing, redirecting their focus toward Southeast Asia to mitigate dependence on the Chinese market.ConclusionThis shift highlights broader international business strategy trends amid geopolitical and economic changes. The results indicate significant transformations in global supply chains, shedding light on the extensive effects of U.S.–China trade tensions on global economic equilibrium and how these tensions are reshaping international investment and supply chain dynamics.

Artificial intelligence for international business: Its use, challenges, and suggestions for future research and practice

AbstractThe emergence of artificial intelligence (AI) has transformed global business, aiding operational efficiency and innovation. It utilizes machine learning and big data analytics, driving predictive market trends and strategic decision‐making. However, despite the rising discussion and accessibility of AI tools, understanding its impact on international business remains limited. This article explores AI's potential in international business strategies, practices, and activities. To address this aim, we reviewed 37 articles in the existing literature to critically explore AI within the context of international business. More specifically, we explored how AI can be applied to innovation approaches in international business, international market selection, entry modes, foreign exchange, international human resource management, international supply chains, managing across cultures, and more topics. AI has necessitated changes in workplace configurations and the need for organizational and employee adjustments in response to this technology. As a result of the foregoing issues on AI integration within international business, our analysis provided an exploratory discussion around its use, challenges, managerial implications, and suggested areas requiring future studies.

Airbnb exits China: insights from platform competition

Purpose This study aims to provide insights into Airbnb’s exit from the China market, specifically from the perspective of platform competition. Design/methodology/approach Based on the understanding of the evolution and competition of peer-to-peer (P2P) accommodation market in China and the double-edged network effects, this viewpoint article provides an in-depth discussion on Airbnb’s withdrawal from the China market. Findings This viewpoint paper contends that Airbnb faced increasing challenges in establishing unique competitive advantages against local rivals, who demonstrate a capacity for innovation and maintaining loyal customers in adapting to the market evolution. Consequently, this may inhibit Airbnb from attracting the mainstream market and lead Airbnb into a negative spiral, exacerbated by indirect network effects. Originality/value This study offers insights into the failure of an internationalisation process, drawing from an analysis of the competitive environment and the competition strategies of P2P accommodation platforms in China. These findings have practical implications for the implementation of international business strategies in P2P accommodation.

Internationalization of enterprises and quality of financial reports in China: Moderating roles of audit committee characteristics

In the process of seeking sustainable development, enterprises have chosen international business strategy. The purpose of this study is to examine the relationship between the degree of internationalization of Chinese listed firms and financial reporting quality, as well as whether audit committees can moderate the impact of enterprise internationalization on financial reporting quality. The empirical analysis results of Chinese listed manufacturing firms from 2014 to 2018 show that: the degree of corporate internationalization has a significant U-shaped relationship with earnings management. This new finding solves the problem that scholars have inconsistent views on the internationalization of enterprises and the quality of financial reporting. The study also found that audit committees with experience working in accounting firms can inhibit firm earnings management behavior in the early stage of internationalization; audit committees with experience working overseas can inhibit firm earnings management behavior in the later stage of internationalization; the higher the remuneration of audit committee experts, the more it can inhibit firm earnings management behavior in the early stage of internationalization. In the later stage of internationalization, the higher the remuneration of audit committee experts, it helps the earnings management behavior of firms. This provides new evidence on the functioning of the audit committee’s role; however, the independence of the audit committee and the proportion of financial experts do not have a significant effect on the inhibition of earnings management.

Ethical Leadership and Corporate Social Responsibility in Diversified Business Groups: a Conceptual Model of Asian and Latin America

Purpose: This research provides a brief review which explores theories and concepts in International Business (IB) and management, covering global market dynamics, factors influencing foreign direct investment, the role of national culture in socially responsible policies, decision-making processes, evolving trends in CSR, ethical leadership's relationship with CSR in diverse business groups, and advancements in online communication, simulation games, and enterprise systems. Valuable insights for practitioners and scholars are provided, illuminating the complexities of the dynamic field of business and management.
 
 Design/Methodology/Approach: This research paper employs diverse methodological approaches, including literature review, qualitative analysis, and theoretical modeling, to investigate various aspects of IB and management. Through a qualitative synthesis approach, key themes and findings related to the research topic are identified.
 
 Findings: This research highlights the significance of digital platforms in delivering global consumer value. Cultural differences influence Foreign Direct Investment (FDI) inflows, shaped by host country norms. European SMEs' profitability, responsible conduct, and B2B relationship tendencies are affected by national culture dimensions.
 
 Theoretical Implication: This analysis reveals the impact of digital platforms, cultural differences, and national culture on global markets and international business. It emphasizes ethical leadership, institutional diversity, strategic direction, and human rights.
 
 Managerial Implication: Managerial implications for international business strategies include leveraging digital platforms for value creation, assessing cultural agility competencies in talent identification, considering socio-cultural context in framing victimization experiences, incorporating factors like corruption, contract enforcement, IP protection, and cultural compatibility in FDI decisions.
 
 Industrial Implication: Significant implications found for the industry in utilizing big data, including ethical and legal considerations. Cultural adaptation crucial for FDI strategies and CSR initiatives. Ethical leadership as a competitive advantage for CSR.
 
 Originality and Value: This literature review highlights the significance of cultural adaptation in global markets, exploring the impact of national culture on corporate behavior. It introduces a novel model for ethical leadership and CSR in Digital Platforms and Ecosystems (DPEs). It serves as a valuable resource for researchers, policymakers, and practitioners in the field of International Business, identifying research gaps for future studies.

Social Frictions, Strategic Leadership, and International Business Strategy

Social Frictions, Strategic Leadership, and International Business Strategy

Striking a balance? Finance perspectives on international business research

PurposeThe purpose of this paper is to bridge the disciplinary divide between international finance and international business (IB) to realign academic research with business reality in which strategy and finance align to determine firms’ success or failures.Design/methodology/approachThe authors discuss theoretical differences between the fields of international finance and IB strategy that caused the fields to develop in isolation with little fertilization across disciplines. The authors review scarce interdisciplinary contributions between the fields. Finally, the authors identify complementarities that suggest fruitful avenues for future research.FindingsThe authors find a persistent disconnect between finance and strategy/IB literature that can be explained by fundamentally different aims and assumptions about the markets. While finance theory seeks to explain typical effects under functioning markets, strategy and IB theories focus inherently on exceptional effects and market inefficiencies.Research limitations/implicationsThe fundamental theoretical differences that isolate finance and strategy/IB create avenues for interdisciplinary research that harness the complementarities of the two disciplines. These include strategic aspects of capital structure, internal capital market inefficiencies, corporate governance, capital market liability of foreignness and institutional aspects of financial management.Practical implicationsWith this paper, the authors not only bring academic researchers in finance and strategy closer to corporate practice. The theoretical discussion also challenges the functional blind spots of practitioners and encourages more holistic decision-making.Social implicationsChallenging market functioning and recognizing market inefficiencies using strategy and IB foundations connects financial economics with non-market topics such as environment, society and governance or impact investing.Originality/valueThe value and originality of the paper come from the qualitative, epistemological approach to study and analyse the divide between international finance and strategy/IB scholarship.

The Multinational Enterprises Strategies in Emerging Economies

The purpose of this paper is to review international business articles, particularly what strategies in emerging economies and multinational enterprises subsidiaries strategies. The first paper is Hoskisson, Eden, Lau and Wright's 2000 article, entitled strategy in emerging economies. Emerging economies are low-income, fast-growing countries that rely on economic liberalization as their primary growth engine. Emerging Economies investigates strategy formulation and implementation by private and public enterprises in a variety of regional contexts and from three major theoretical perspectives: institutional theory, transaction cost economics, and the resource-based view of the firm. The second paper is Amy J Hillman and William P Wan's 2005 article, The Determinants of MNE Subsidiary Political Strategies: Evidence of Institutional Duality. A model of the determinants of political strategies used by foreign subsidiaries of multinational enterprises (MNEs) is developed and tested in this study by integrating international business and political strategy literature to create a multilevel model of the subsidiary, host country, and parent determinants of political strategy. Using recent theoretical advances in institutional theory that acknowledge that MNE subsidiaries face pressures for isomorphism both within the corporation (internal legitimacy) and within the host country (external legitimacy). A common thread can be drawn between these two articles, namely the use of institutional theory in determining the strategy for multinational enterprises.

Towards a unified typology of digital communication technologies in international business: a tool for management and research

PurposeDigital communication technologies have become ubiquitous for various firm processes related to international business (IB) and global strategy. However, IB and strategy scholars lack an encompassing and theory-based typology of these technologies that facilitates analysis and discussion of their uses and effects. Likewise, managers have a large choice of technologies at their disposal making it difficult to determine what technology to use in different IB areas. This paper aims to develop a typology of digital communication technologies based on the synchronicity and interactivity of these technologies and capture their fundamental social and temporal dimensions. This results in four ideal types: broadcasting, corresponding, aggregating and collaborating technologies.Design/methodology/approachThis is a conceptual paper incorporating theoretical perspectives to theorize about four ideal types of digital communication technologies. A subsequent empirical test of this typology has been provided in the appendix.FindingsThe authors discuss how the typology might be applied in IB decisions and some of the contingencies that impact this choice. Building on that, the authors develop directions for future research to increase their understanding of the use of digital communication technologies to help improve IB functions. Overall, the authors suggest future research explores contingencies about where and when different types of digital communication technologies should be used. Finally, the authors provide implication of having a unified typology for both academics and managers.Originality/valueThe authors offer a robust framework for thinking about and capturing different types of digital communication technologies that can be applied by researchers and used by managers when making decisions related to IB. The authors also provide some initial testing of the typology with a three-country study design helping to determine its validity.

Ethical Leadership and Corporate Social Responsibility in Diversified Business Groups: A Conceptual Model of Asian and Latin America

Purpose: This research provides a brief review which explores theories and concepts in International Business (IB) and management, covering global market dynamics, factors influencing foreign direct investment, the role of national culture in socially responsible policies, decision-making processes, evolving trends in CSR, ethical leadership's relationship with CSR in diverse business groups, and advancements in online communication, simulation games, and enterprise systems. Valuable insights for practitioners and scholars are provided, illuminating the complexities of the dynamic field of business and management. Design/Methodology/Approach: This research paper employs diverse methodological approaches, including literature review, qualitative analysis, and theoretical modeling, to investigate various aspects of IB and management. Through a qualitative synthesis approach, key themes and findings related to the research topic are identified. Findings: This research highlights the significance of digital platforms in delivering global consumer value. Cultural differences influence Foreign Direct Investment (FDI) inflows, shaped by host country norms. European SMEs' profitability, responsible conduct, and B2B relationship tendencies are affected by national culture dimensions. Theoretical Implication: This analysis reveals the impact of digital platforms, cultural differences, and national culture on global markets and international business. It emphasizes ethical leadership, institutional diversity, strategic direction, and human rights. Managerial Implication: Managerial implications for international business strategies include leveraging digital platforms for value creation, assessing cultural agility competencies in talent identification, considering socio-cultural context in framing victimization experiences, incorporating factors like corruption, contract enforcement, IP protection, and cultural compatibility in FDI decisions. Industrial Implication: Significant implications found for the industry in utilizing big data, including ethical and legal considerations. Cultural adaptation crucial for FDI strategies and CSR initiatives. Ethical leadership as a competitive advantage for CSR. Originality and Value: This literature review highlights the significance of cultural adaptation in global markets, exploring the impact of national culture on corporate behavior. It introduces a novel model for ethical leadership and CSR in Digital Platforms and Ecosystems (DPEs). It serves as a valuable resource for researchers, policymakers, and practitioners in the field of International Business, identifying research gaps for future studies.

The Impact of globalisation on international business strategy and operation: A cross sectional study of expert’s Opinion

Globalization has significantly altered the international business terrain, which has impacted the strategies and operations of companies across the globe. The amplification of global interconnectedness and the dismantling of trade impediments have enabled businesses to proliferate their markets beyond their borders, thereby creating novel prospects for growth and profitability. Notwithstanding, globalization has also posed manifold challenges, such as augmented competition, cultural variances, and geopolitical hazards. To flourish in this milieu, enterprises must adapt their strategies and operations to efficiently navigate these challenges. This encompasses the development of an intricate understanding of local markets, the establishment of robust relationships with stakeholders, and substantial investments in technology and innovation. Furthermore, businesses must remain poised to embrace a flexible approach and acclimate to fluctuations in the global business landscape. In summation, globalization has both auspicious and adverse implications on international business, and companies must adopt a tactical and adaptive approach to prosper in this dynamic landscape

International Business Strategies of Firms with Political Changes: A Case of Xiaomi's Entry into the Indian Market

Due to the instability of the global economy, an increasing number of firms are seeking to expand their businesses into other nations, which has contributed to the development of a variety of international business strategies. The primary purpose of the study is to investigate the impact and theoretical support of international business strategies on global expansion. The article argues for the importance of international business by infusing international business strategy into Xiaomi's globalization strategy. The article describes the current state and future outlook of the Indian smartphone market. It highlights Xiaomi's unique internationalization approach by applying SWOT analysis to determine the company's strengths, weaknesses, opportunities, and threats. In conjunction with the practicalities, it also assists in the development of unique strategies for a certain target market. The findings indicate that Xiaomi needs to be more locally developed and operated to match the requirements of the Indian market in order to preserve and expand its market share.

Let the data speak about the cut-off values for multidimensional index: Classification of human development index with machine learning

The Human Development Index (HDI) classification is essential as it relates to international aid policies and business strategies. Although the existing literature has criticized the arbitrariness of cut-off values of the HDI, few proposed an ideal approach to overcome this drawback. This paper first employs the unsupervised machine learning techniques, the K-means clustering and Partitioning Around Medoids algorithms, to cluster the HDI and offers more reasonable cut-off values for classifying countries in combination with the current HDI calculation method. The results indicate that we can group the countries worldwide into three clusters, given the 2018 HDI dataset. We suggest cut-off values of 0.65 and 0.85 to classify low, medium, and high human development countries. This paper provides a new perspective to classifying the HDI based on the similarity of countries’ development but not subjective judgments.

Integration of Digital Transformation and Corporate Innovation in International Business Strategies and Practices

Integration of Digital Transformation and Corporate Innovation in International Business Strategies and Practices

АНАЛІЗ РОЗВИТКУ ГЛОБАЛЬНОГО РИНКУ АУТСОРСИНГУ В ІТ-БІЗНЕСІ

This article provides a comprehensive analysis of the global IT outsourcing market, highlighting its historical roots, current state and future prospects. The paper examines key moments and transformations in the industry, from the early days of outsourcing to its current scale. Particular attention is paid to the impact of technological innovations such as cloud computing, artificial intelligence, and blockchain on market dynamics. The article analyses how outsourcing affects countries' economies, labour markets, and social structures, with a particular focus on changes in the global distribution of jobs and economic growth. The article also includes forecasts of future market trends, taking into account current technological changes and global economic factors. In the context of rapid globalisation, the IT services market is experiencing significant growth. Global outsourcing, as a tool for business expansion and cost optimisation, is becoming a key success factor for many companies. Outsourcing allows companies to reduce costs and focus on their core competencies, which is especially important in the highly competitive IT sector. Given the rapid development of the IT sector in Ukraine, it is important to study the country's role in the global outsourcing market to assess the potential and capabilities of local professionals and companies. Thus, this topic is highly relevant, given its impact on the international economy, technology development and business strategies. Its study opens up broad prospects for analysing IT outsourcing, taking into account both global and local contexts. An important part of the article is the recommendations for various stakeholders, including outsourcing companies, service providers, policy makers and researchers. These recommendations are aimed at optimising the use of outsourcing in the IT industry, ensuring balanced and sustainable growth of the industry. The article uses data from a variety of sources, including market research, analytical reports and expert interviews, making it a valuable resource for anyone interested in the development of the global outsourcing market in the IT business.

Opportunities and Risks of Digitization for Labor Market Subjects

Digital transformation has changed consumer expectations and behavior, putting great pressure on organizations and multiple markets. The article examines the impact of digitalization on employment in the world, provides information on the nature of the impact of digitalization shifts, provides examples of professions that will be the first to suffer from an increase or decrease in demand, and identifies new needs for competencies. Increased attention in the work is given to the importance of digital transformation for the integration of technological tools in international business practice and strategy, as well as the obstacles that arise during the implementation of digital new technologies. It is noted that in order to improve the quality of management decision-making in the conditions of digital transformation, ways of obtaining a sustainable competitive advantage must be determined, taking into account international experience and available resources, consistency with new strategies aimed at growth and entering new markets, this implies significant changes in internal organizational structure of enterprises and organizations. Remote work from non-traditional forms of employment has turned into a traditional form of organizing the labor process and interaction in organizations. With the stabilization of the situation in Ukraine and the elimination of the influence of the negative factors of the external environment, it is impossible to refuse remote work, many companies have already made the hybrid work model permanent. Industries such as food processing, retail, and construction show the lowest rates of remote staff employment. Among the main threats of digital transformations, the decrease in social protection of employees is mentioned. The emergence of new types of jobs and working conditions contributes to the growth of the number of self-employed people who are not ready to enter into a dialogue with the employer regarding their social protection. The responsibility for social protection of the employee in new work models is transferred to him, while society is not yet ready for such changes. Eliminating or minimizing the disadvantages of remote forms of work needs to be taken into account in the development strategies of every organization and enterprise.

Digital tools in shaping international business strategy

This article examines the role of digital tools in shaping strategies for international business. The author focused on three key technologies that have been gaining popularity in the business environment recently, namely blockchain, Internet of Things strategy and business ecosystem. Based on theory and practical cases, the impact of new digital tools on the evolution of the strategic approach to international business was explored, providing companies with effective adaptation, competitiveness, and innovation.