International Competitive Strategies Research Articles

THE IMPACT OF THE INTRODUCTION OF INDUSTRY 4.0 TECHNOLOGIES ON THE IMPLEMENTATION OF INTERNATIONAL COMPETITIVE STRATEGIES OF NATIONAL ECONOMIES

Modern technological transformations associated with Industry 4.0 have a significant influence on the competitiveness of national economies on a global scale. The article analyzes the impact of the introduction of Industry 4.0 technologies on the implementation of international competitive strategies, focusing on key economies such as China, the United States of America, Germany, France, Japan, South Korea, India, Australia, Brazil, South Africa, Pakistan, Venezuela, and Ukraine. The main competitive strategies that take into account the new technological context are considered. These include digital transformation strategies, the use of artificial intelligence, the Internet of Things and other aspects of Industry 4.0. In particular, the article examines which technological innovations are reflected in the strategies of leading countries and how they contribute to their international competitive success. Great attention is paid to the aspects that influence the formation of competitive strategies of national economies, such as changes in global supply chains, development of digital platforms, cybersecurity and response to the challenges of technological shifts. The main focus is on the fact that enterprises tending to increase their international competitiveness should develop strategies taking into account the new technological context. The core strategies are digital transformation, globalization, innovation, and partnership. These strategies include adjusting to new technologies, increasing international presence, seeking innovation, and cooperating with other parties for common success. The paper highlights not only the positive aspects of implementing Industry 4.0 technologies, but also the risks associated with the unequal distribution of technological capabilities between countries. It emphises the interaction of countries in the context of international economic relations and the development of cooperation strategies to ensure mutual benefits. The article can serve as an important source for specialists in the field of economics, public administration and business, as well as for researchers interested in the relationship between technological development and the competitiveness of national economies in the modern world.

System-on-System Competition in Defense Innovation

Defense innovation systems (DIS) have become an important analytic concept in defense policy circles in recent years. DIS are networks of interacting agents involved in the generation, diffusion, and utilization of defense-related technologies supported by local institutional infrastructures. This notion can be a valuable addition to one’s arsenal of tools for understanding aspects of great power competition between the United States and China. The DIS construct draws attention to competition between the United States and China being fundamentally a contest between different innovation systems. This adds an important perspective to policy debates because it broadens the analysis of competition away from particular elements and toward the overall systems involved, including global technological systems, dual-use technologies, and civilian elements that are important components of nearly all innovation systems. Furthermore, while U.S. industrial policy may have historically hidden it, the DIS construct draws attention to the intensive management and networking activities by U.S. Department of Defense elements involved in organizing the generation, diffusion, and utilization of defense-related technologies. For China, the DIS construct helps shed a bright light on the civilian-military fusion that has been a bedrock of China’s international competitive strategy.

International competitive strategies, organizational learning and export performance: a match and mis-match conceptualization

PurposeThis study aims to examine the effects of international competitive strategies, i.e. cost leadership and differentiation, on export (market share and strategic) performance. This study further explores the roles of exploitative and exploratory organizational learning in the relationships between international competitive strategies and export performances. To fill research gaps, this study intends to provide guidance on how varied exploitative/exploratory organizational learning and cost leadership/differentiation strategy combinations would affect export performance. The outcomes of this study provide a new match and mis-match conceptualization to extant international competitive strategy and organizational learning literature.Design/methodology/approachThis study selected New Zealand (NZ) exporting as the research setting because exporting plays such a vital role in NZ’s economy and NZ exporting firms have long been highly competitive in international markets (e.g. meat and dairy exporters), with the primary data collected through surveys conducted in 2010 and 2013. This study adopted a three-year lagged performance approach.FindingsCost leadership strategy has a positive effect on market share performance. This effect is enhanced by exploitative learning but dampened by exploratory learning. Cost leadership also has a positive effect on strategic performance, which is not affected by exploitative and exploratory learning. Differentiation strategy bears no relation to market share and strategic performance, even allowing for exploitative and exploratory learning. Collectively, the contingent role of organizational learning in the international competitive strategies and export performance framework is far more comprehensive than was expected.Research limitations/implicationsThis study reveals that a match between cost leadership strategy and exploitative learning may result in a superior market share. The configuration of differentiation strategy and exploitative learning and the integration of cost leadership strategy and exploratory learning are suggested as mis-matches, as these combinations would not lead to any significant and positive market share and strategic performance. Unexpectedly, the co-alliance of differentiation strategy and explorative learning is not suggested as a match, as it does not result in a superior market share and strategic performance. This latter outcome suggests that the differentiation strategy-export performance link may be stimulated by other moderating factors (e.g. business managerial ties).Practical implicationsWhile choosing an appropriate international competitive strategy, managers may use cost leadership over differentiation strategy to achieve successful export performance in both the market share and strategic perspectives. Export managers focusing on cost leadership strategy may further implement exploitative learning instead of explorative learning, when market share is vital. Meanwhile, they may note that explorative learning may not have a moderating effect on enhancing strategic performance through cost leadership. These points signify that exploitation of existing knowledge may be more effective than exploration of new knowledge for market share expansion when cost leadership strategy is devoted to exporting activities. Differentiation strategy, however, does not influence market share and strategic performance in exporting, even with an alignment of exploitative/exploratory learning. Managers are urged to pay attention to the mis-match of differentiation strategy and organizational learning when market share and strategic performance are the priorities in export performance evaluation.Originality/valueThis study contributes to the organizational learning literature by providing a new match and mis-match conceptualization relating to international competitive strategy and export performance. The new framework provides directions on when firms should use organizational learning to enhance their competitive strategies (a match scenario) and when they should not use it (a mis-match scenario). This study broadens the existing research that has mainly focused on alignment combinations such as organizational learning-internationalization strategy and organizational learning-social network.

Formation Of An Integrated Structural Assessment Of The Export Potential Of The Aviation Complex

Successful operation and development of enterprises in modern conditions involves the expansion of markets. The company's entry into international markets requires the formation of its international competitive strategy, identification of competitive advantages in the markets of selected countries, and this, in turn, implies the need for export potential of the company. In determining the export potential of the aviation complex, it is necessary to consider the specific features of enterprises in this industry, among which we can highlight the features of the products of aviation enterprises and the features of the international aviation market. To qualitatively assess the level of economic potential, we propose to use a system of classification features, developed based on the well-known Harrington scale, but slightly modified by the authors in relation to the calculated data and available statistical information. The phases of the life cycle of the economic potential of the enterprise are determined. Not only the quantitative and qualitative level of economic potential are important, but also the changes associated with the passage of time. In order to determine the importance of indicators in each group, methods of component analysis of the characteristics of variation series of the results of the survey of experts were used. When comparing the variation of different features in one set with different average value, we use the relative indicators of variation - coefficients of variation. The obtained result together with the results of application of the method of component analysis allows us to conclude that in the formation of the integrated indicator of the first group (K1) it is enough to consider these five indicators, and the most important of them are two: technological processes to other activities.

Organizational ambidexterity in subsidiaries of knowledge-intensive sectors

In the knowledge society, multinationals and, more specifically, their subsidiaries acquire great importance as a source of competitiveness for the multinational as a whole. From this perspective, this article has a double objective: (1) to define ambidextrous subsidiary, and (2) to explore if subsidiaries are ambidextrous. A quantitative methodology is used on a sample of 102 Spanish subsidiaries of foreign multinationals from knowledge-intensive sectors. Findings show that the subsidiaries analyzed are highly explorers of knowledge. However, despite the coherence between the roles played and their international competitive strategies, not all subsidiaries turned out to be ambidextrous. Only those with an integrated player role and transnational strategies can be considered as such.

When and how managerial ties matter in international competitive strategy, export financial and strategic performance framework

PurposeThis study aims to present two new contingent frameworks that hypothesize the moderation role of managerial ties (MTs) in the international competitive strategy-export financial and strategic performance framework. The purposes of this study are to explore whether a common standardized or individual customized conceptualization consisting of MTs, international competitive strategy and performance can be used to achieve export financial and strategic performance; to offer contingent factors for the current international competitive strategy-export performance framework; and to generalize the roles of MTs in the developed vis-à-vis developing region.Design/methodology/approachThis study uses the experience of 114 exporting firms operating in the European Union region to test its theoretical frameworks. MTs include both business and political ties.FindingsBusiness and political ties have completely different moderation effects on the relation between international differentiation/low-cost strategy and export financial/strategic performance. Business ties have a positive influence on the international differentiation strategy-export strategic performance and international low-cost strategy-export financial performance dyads, but a negative effect in the international low-cost strategy-export strategic performance framework. In contrast, political ties are revealed to have a negative effect on the international differentiation/low-cost strategy-export financial performance framework.Originality/valueThis research advances extant international competitive strategy-export performance literature by revealing the bright and dark sides of business ties and the down side of political ties in the framework. Performance should be investigated in terms of financial and strategic performance. The moderation effect of business ties is more complex than that reported in the developing region; thus, a cross-regional generalization on these ties’ effects is more difficult to establish. In contrast, the dark side effect of political ties is consistent across developed and developing regions; a cross-regional generalization on these ties is more viable. Collectively, the results show that a standardized process for achieving both export financial and export strategic performances is not feasible, while a customized process for each export performance is needed.

Identifying challenges facing manufacturing enterprises toward implementing sustainability in newly industrialized countries

PurposeThe purpose of this paper is to present and identify the challenges toward implementing sustainability strategies both strategic and tactical (STs) and performance measures (PMs) facing industrial organizations in newly industrialized countries.Design/methodology/approachConducting a comprehensive survey on the published papers focused on the area of sustainability and/or sustainable development (S/SD) in manufacturing enterprises to identify the most common critical challenges. Setting with industrialists to determine which challenges the industrial organizations facing while implementing the S/SD strategies in terms of strategic, tactic and PMs. Using support logic techniques such as interpretive structural modeling (ISM) and interpretive ranking process (IRP) as modeling approaches to examine the contextual relationship among the STs and PMs individually “first phase,” to clarify and identify the most and least dominant factors, and to rank STs with respect to the PMs “second phase.”FindingsThe investigation shows that some challenges are more dominant and influential. Literacy and an awareness of sustainability, globalization and international issues and competitive strategies have emerged as the most dominant and key driving factors for STs in the ISM model, while the whole PMs are driven by remanufacturing and recycling factors in the ISM model. In addition, drivers and barriers to implementing S/SD challenges received the highest rank in the IRP model.Research limitations/implicationsMost of the STs and PMs were identified from academicians. Most of the manufacturing companies participated in the discussion; unfortunately, all are not familiar with the S/SD as a whole. They see to the S/SD from very narrow scope like climate change, environmental and energy issues only based on what they heard from media. Most of them are not fully interested to join with academicians to progress the work.Practical implicationsMost of the manufacturing companies are keen to investigate extremely sustainability challenges. Although this paper has a goal to provide a comprehensive framework to analyze, investigate and model sustainability challenges for industrial/manufacturing companies in different industrial sectors, most of the STs and PMs were identified from academicians. Most of the industrial/manufacturing companies participated in the discussion; unfortunately, all are not familiar with the S/SD as a whole. This study will help manufacturing/industrial companies to analyze and investigate the challenges toward implementing S/SD.Originality/valueThe originality of this paper is to identify the most common ST and PM challenges facing industrial organization toward implementing S/SD, modeling them into logical techniques and comparing between STs with respect to PMs.

Conditional mediation of competitive strategy and environment in international entrepreneurial orientation of family businesses

This paper analyzes the effect of conditional mediation of environment-competitive strategy in business orientation of family businesses. In order to study the results we propose a method based on a second generation structural equation (PLS-SEM) where software SmartPLS 3.2.6 is applied to measure data of 174 Spanish family businesses. This paper presents a relevant contribution both to the academic field and the performance of family firms, helping to understand the process of transforming international entrepreneurial orientation into a better international performance through competitive strategy while family businesses invest their efforts in aligning international entrepreneurial orientation and competitive strategy with international results, bearing in mind the positive moderator effect of environment.

Conditional mediation of competitive strategy and environment in international entrepreneurial orientation of family businesses

This paper analyzes the effect of conditional mediation of environment-competitive strategy in business orientation of family businesses. In order to study the results we propose a method based on a second generation structural equation (PLS-SEM) where software SmartPLS 3.2.6 is applied to measure data of 174 Spanish family businesses. This paper presents a relevant contribution both to the academic field and the performance of family firms, helping to understand the process of transforming international entrepreneurial orientation into a better international performance through competitive strategy while family businesses invest their efforts in aligning international entrepreneurial orientation and competitive strategy with international results, bearing in mind the positive moderator effect of environment.

Multilocalisation and the Growth of Knowledge Assets in Medium-Sized Multinationals (MSMs)

This work aims to investigate how international competitive strategies are based and may be in some cases actually heavily dependent on the capacity to form and enhance skills in design, engineering and production activities and on the propensity to invest more resources in research and development (R&D) activities as well as in activities that are more strictly speaking production-based (manufacturing). This study focuses on medium-sized multinationals (MSMs) that belong to the sectors of mechanics and electronics and highlights different innovation processes’ approaches in the same unit of the analysed MSMs. We should draw attention to the propensity of Marche’s MSMs to effectively take advantage of new process technologies and their ability to increase the innovative knowledge possessed co-evolve with planning and managing multiplant establishments on a global scale. This would mean that, for smaller businesses, the complex process of ‘generation, use, acquisition and dissemination’ of technological knowledge would derive mainly from internal factors and be only limited by external sources. The study is based on the empirical analysis of the most representative business cases among those analysed in the mechanical and electronic areas of the Marche Region. It creates new challenges for both theoretical treatments of the MNE, for practitioners and for policy makers.

International competitive strategy choices: comparing firms in China and India

This study investigates the types of international competitive strategies (ICS) followed by Chinese and Indian firms. Using firm-level primary data, the contribution analyses the factors that affect ICS choices and whether these factors differ between the two countries. It argues that firms' resources and capabilities influence firms' propensity to choose a specific ICS and that the strategies differ in relation to firms' location, sector and destination market as well.

International Tax Law and the Multinational Capital Structure: Evidence from US MNCs German Direct Investment

Multinational financial decisions are a central aspect of multinational parent companies (MNCs) managerial strategy. Investments must be financed in some way. However, there are always financing alternatives that can be considered. International competitive strategies of managers involve cross-border complexities. Choices about investment, organizational and internal financial structure involve international considerations. How do tax considerations factor into MNCs management strategies and internal financial decision-making? In this regard, ( US) MNCs often use intra-group cross-border debt financing structures in order to optimize the effective tax rate (ETR) of high-taxed German affiliates. However, the new German thin capitalization (hereinafer 'thin cap') provision (German interest barrier) restricts this financial tax planning approach significantly. Currently, tax-effective income shifting from German subsidiaries to low-taxed intra-group finance companies by internal debt financing is limited to 30% of the taxable earnings before interest, tax, depreciation, and amortization (EBITDA) per fiscal year. Thus, the German thin cap provision has a major impact in terms of the value of the debt tax shield. Therefore, the way US MNCs configurate the entrepreneurial capital structure of German subsidiaries (equity versus debt capitalization) is extremely tax driven and affected by German thin cap rules. This paper shows a new and innovative tax-efficient internal debt financing structure for US MNCs that has been developed to optimize the net after-tax profits of German operative affiliates. This new and flexible internal financial structure allows US MNCs unlimited internal debt financing of German subsidiaries without the harmful effects of the German thin cap provision. However, the scope of the application of the new intra-group debt financing structure is not limited to US MNCs. This investment and financing structure is also of high importance for global investors engaged in direct investments in Germany.

The effect of corporate-level organizational factors on the transfer of human resource management practices: European and US MNCs and their Greek subsidiaries

One of the central questions in the literature on MNCs is the extent to which their subsidiaries act and behave as local firms (local isomorphism) versus the extent to which their practices resemble those of the parent company or some other global standard (internal consistency). Drawing on the resource-based view and resource-dependency theory, this paper aims to provide an insight into the interplay of several corporate-level organizational factors that affect the transfer of HRM practices across borders. Data collected from 80 European and US multinationals with subsidiaries in Greece are used to test specific hypotheses. Our results indicate that the level of importance attached to HRM by the MNC's top management and international experience have the highest explanatory power for the transfer of HRM practices, while international competitive strategy, informal control and the presence of expatriates also have a marginally significant influence.

Optimal pricing strategy for foreign market entry: a game theoretic approach

Given that pricing plays an important role in a company's international competitive strategy, researchers have long argued the need for theory building in the area of international pricing. This study develops an optimal pricing strategy for foreign market entry using a game theoretic framework. The proposed model assumes two firms, a local incumbent and a foreign entrant, competing in a market. Consumers know the quality of the incumbent's offering, but do not know how it compares to that of the foreign entrant's. Based on these assumptions, and using the theory of inference making, we propose an upward price distortion by the entrant firm as an optimal entry strategy under incomplete information. The paper presents a game theoretic derivation to establish that the game has a unique intuitive separating equilibrium where the entrant firm stands to gain by engaging in upward price distortion to signal high quality to consumers. Copyright © 2006 John Wiley & Sons, Ltd.

Competitive Strategies of Countries and Firms under Export Oriented Growth

This paper develops a framework for analysis of international competitive strategies at country and firm levels under export-oriented growth. The framework accounts for technical progress and competitors' reaction. It is argued that attracting foreign private investment is the least profitable strategy for Russia, while copying East Asian "catching-up" strategies is shown to be infeasible given the present state of science and technology. The conditions for implementation of the strategy of leadership in R&D-intensive industries are formulated.

Proactive corporate environmental management: A new industrial revolution

Executive Overview Corporations in North America, Europe, Japan, and in most newly industrializing nations are embracing environmental protection as part of their international competitive strategies. For many firms, the shift to proactive environmental management is driven by pressures from governments, customers, employees, and competitors. Both consumers and investors are beginning to see more clearly the relationship between business performance and environmental quality. The trend toward proactive environmental management is being accelerated by public pressures on governments almost everywhere to assure a cleaner environment. Government regulations have become more stringent, legal liabilities for environmental damage have become more burdensome, and customers have become more demanding. But more importantly, there is growing evidence that firms that adopt proactive environmental management strategies become more efficient and competitive. In many countries, the public has become more vocal in deman...

International technology-based competitive strategy: A literature review and integrative model

A multilevel, integrative model of international technology-based competitive strategy is developed through the integration and extension of diverse literature streams. The critical activity in these strategies is sustainment of a development process which results in creation of value-added products or services that can be profitably manufactured and distributed to customers. The model identifies variables and interactions that influence technology-based competitive strategy success at the organization, competitive or task environment, and external domestic and international environment levels. Propositions to be tested in future empirical research are developed.

Domestic and international competitive focus, technology strategy and company performance: an empirical analysis

This study empirically explores the association of a firm's approach to domestic and international operations with its technological choices and financial performance. The technological choices examined unclude the following: commitment to leading the creation of new technologies: emphasis on internal and external sources of technology: capital spending for technological pursuits: R&D investments. Cluster analysis of data from 180 US electronics firms produced four clusters of international and domestic operations. These clusters exhibited variaions in companies' technological choices and in the associations between technology variables and company financial performance. The results help to identify viable technolgical choices under different combinations of domestic and international competition.

Self‐Efficacy, Outcome Expectancy and Performance of International Joint Venture General Managers

AbstractDespite the increasing frequency and strategic importance of international joint ventures (IJVs), the issues of effective IJV management and the role and required skills of the IJV general manager (IJVGM) have received minimal attention. Thus, it is essential to identify factors which contribute to IJVGM effectiveness. Using data on a sample of 39 IJVs, this study examined the empirical relationship of self‐efficacy and out come expectancy with IJVGM performance. Hypotheses that both self‐efficacy and outcome expectancy are significantly related to both IJVGM and IJV performance were supported. Theoretical, practical, and methodological implications are discussed.RésuméMalgré l'importance stratégique et le nombre croissant de “joint‐ventures” internationaux (IJV), la gestion de ces organisations ainsi que le rôle et les compétences des directeurs généraux de IJV (IJVGM) ont jusqu‘à maintenant été peu étudiées. Dès lors, il apparaît important d'examiner les facteurs contribuant à la bonne performance des IJVGM. à partir d'un échantillon de 39 IJV, cette recherche s'intéresse à la relation liant l'efficacité personnelle, les attentes vis‐à‐vis les résultats et la performance des IJVGM. Les résultats démontrent que l'efficacité personnelle et les attentes vis‐à‐vis les résultats sont effectivement des facteurs de la performance des IJVGM et des IJV. Les auteurs terminent en discutant des implications théoriques, pratiques et méthodologiques de ces résultats.

A conversation with Michael Porter: International competitive strategy from a European perspective

A conversation with Michael Porter: International competitive strategy from a European perspective