International Expansion Strategy Research Articles

The Tragic Note and Pessimism in Twentieth Century British Novel

This research aims to formulate an international expansion strategy for Kirana Tour and Travel, a Small and Medium Enterprise (SME) in the tourism industry in Indonesia, utilizing a SWOT Analysis approach. Kirana Tour and Travel is an SME operating in the tourism sector in Indonesia. This study employs a qualitative approach with data collection through interviews with business owners, direct observation, and documentation. The results of the SWOT analysis indicate that Kirana Tour and Travel has significant potential for international expansion, but also faces several challenges that need to be addressed. Internal strengths of the company, such as a good reputation, extensive network, and quality service, serve as assets to leverage in facing global competition. However, there are also internal weaknesses that need to be addressed, such as limited resources and a lack of experience in international markets. Based on the SWOT analysis, recommended international expansion strategies for Kirana Tour and Travel include product and service diversification, enhanced digital marketing, strategic partnership development with international travel agencies, and enhancing employee competencies related to the global market. The implementation of these strategies is expected to increase the global presence of Kirana Tour and Travel and mitigate risks associated with international expansion for SMEs

Kirana Tour and Travel MSME Go International Strategy with SWOT Analysis

This research aims to formulate an international expansion strategy for Kirana Tour and Travel, a Small and Medium Enterprise (SME) in the tourism industry in Indonesia, utilizing a SWOT Analysis approach. Kirana Tour and Travel is an SME operating in the tourism sector in Indonesia. This study employs a qualitative approach with data collection through interviews with business owners, direct observation, and documentation. The results of the SWOT analysis indicate that Kirana Tour and Travel has significant potential for international expansion, but also faces several challenges that need to be addressed. Internal strengths of the company, such as a good reputation, extensive network, and quality service, serve as assets to leverage in facing global competition. However, there are also internal weaknesses that need to be addressed, such as limited resources and a lack of experience in international markets. Based on the SWOT analysis, recommended international expansion strategies for Kirana Tour and Travel include product and service diversification, enhanced digital marketing, strategic partnership development with international travel agencies, and enhancing employee competencies related to the global market. The implementation of these strategies is expected to increase the global presence of Kirana Tour and Travel and mitigate risks associated with international expansion for SMEs

Localised multiple channel distribution strategies of luxury fashion retailers – evidence from China

PurposeThis empirical study aims to examine luxury fashion retailers' localised multiple channel distribution strategies in China.Design/methodology/approachThrough case studies of 15 participating retailers, qualitative data were collected from 33 semi-structured interviews.FindingsStrong impacts of internationalisation strategies, distribution strategies and channel length towards multiple channel retailing are revealed. Multi-channel retailing is widely employed by firms who have entered China and further developed their businesses through local partnerships and adopted a selective distribution strategy via relatively longer channels. Omni-channel retailing is only suitable for the few retailers using an exclusive distribution strategy through direct marketing and wholly owned customer relationship management. As a dynamic transformation from multi- to omni-channel retailing, cross-channel retailing is adopted by those who are withdrawing from local partnerships and shifting to wholly owned expansions and operations in host markets.Research limitations/implicationsThe results are potentially challenged by relatively small sample size.Practical implicationsPractitioners are suggested to adapt multiple channel retailing to their international expansion strategies, distribution strategies and channel length in the host markets.Originality/valueThis paper contributes to the literature in both multiple channel retailing and international retailing by offering insights into the motives, development patterns and suitability of multiple channel retailing in the international retail marketing context.

Enhancing strategic decision-making: The role of business intelligence tools and organizational ambidexterity

The study aims to investigate the influence of business intelligence on decision-making quality, considering organizational ambidexterity as a moderating factor. The sample included a broad group of professionals from the high-technology segment, surveying 450 respondents; 254 valid responses were obtained from senior executives, supervisors, and analysts. These respondents were selected as they had a clear ability for a deeper dive into strategic goals and international expansion strategies, effectiveness in capacities, and daily financial management improvement. The results showed that with the use of business intelligence tools, organizations were in a better position to provide a higher quality of strategic decision-making (p < 0.01) as it helped in the functioning of new opportunities to identify and capitalize, while keeping an eye on the current capabilities. The study underscores that organizational ambidexterity is one of the most dominant causes (p < 0.01) for the effective realization of the benefits of business intelligence. Thus, for effective decision-making, it is crucial for organizations to synergize business intelligence tools with their ambidextrous capabilities. This underscores the significant role of organizational ambidexterity as a moderator and further demonstrates its importance in optimizing the use of business intelligence to improve strategic decision-making processes.

Super-appification: Conglomeration in the global digital economy

‘Super apps’ are on the rise. This study explores the characteristics, origins, and manifestations of these apps worldwide, presenting the concept of ‘super-appification’ to describe processes of conglomeration in the global digital economy. Super apps aim to become deeply integrated into people’s everyday lives, capturing and monetising essential activities. By analysing 41 super apps, we identify four distinct types of ‘super-app constellations’, showcasing different patterns and dynamics of conglomeration: ‘Swiss-Army Knife’ apps that consolidate services in one app, ‘Family’ apps that expand through subsidiaries, and ‘Host’ and ‘Hub’-style apps that leverage external developers. This typology offers a comprehensive understanding of the conglomeration patterns underpinning the rise of super apps, involving corporate, development and international expansion strategies. Ultimately, super-appification represents an intensified form of ‘appification’, as these apps increasingly pervade and commodify various aspects of everyday life, such as payment, insurance, grocery delivery, mobility and travel, with significant sociopolitical implications.

International business expansion and merger investment risk strategies by promoting innovation and circular economy: A case study analysis

This research paper investigates how Alpha, a leading European company in the architectural aluminum systems sector, adopts its international business expansion and merger strategy and integration of innovation and circular economy principles. The study focuses on Alpha’s dedication to sustainability through innovative methods, emphasizing the company’s efforts in recycling, waste management, and energy efficiency. As companies recognize their responsibility to reduce their environmental impact, they have begun by making changes within their own production sites and offices and are now extending their efforts to their supply chains and beyond. The circular economy offers solutions to these problems. Various studies indicate that the circular economy fosters economic growth by increasing employment and utilizing resources more efficiently. By embracing a circular economy approach, Alpha illustrates how environmental sustainability and economic growth can coexist. This study could serve as a company example strategy that tries to follow and achieve a significant transformation necessary for net-zero emissions and is transformed in order to be committed to renewable energy, renewable resources, and high-grade recycling.

Marketing and Business Operations Analysis of Modern Mainstream Sports Events: A Comparative Study of NBA and CBA

This study delves into the marketing strategies and business operations of contemporary mainstream sports events, focusing on a comparative analysis between the National Basketball Association (NBA) and the Chinese Basketball Association (CBA). In today's globalized world, sports have evolved beyond mere competition into lucrative entertainment businesses. The NBA and CBA stand as two prominent examples of sports leagues that have garnered massive fan followings and commercial success, albeit in distinct ways. The research investigates the multifaceted aspects of marketing employed by these leagues. It explores how the NBA's international expansion strategies and well-orchestrated marketing campaigns have enabled it to establish a strong global presence. Meanwhile, the CBA's unique approaches to catering to its domestic audience and its collaboration with local brands are scrutinized for their impact on the league's marketability. Furthermore, the study dissects the business operations behind these sports leagues. It analyzes revenue generation models, including ticket sales, broadcasting rights, merchandise, and sponsorship deals, to discern their efficiency and sustainability. By comparing the revenue structures and financial performances of the NBA and CBA, this research aims to provide valuable insights into optimizing the business side of modern sports events. Through this comparative analysis, we hope to shed light on the key factors contributing to the success of sports leagues in the contemporary era. The findings are expected to be of interest to sports industry stakeholders, marketers, and businesses seeking to understand the dynamics of sports marketing and business operations in a global context.

DEVELOPMENT AND SUPPORT OF A SUSTAINABLE: MARKETING PROVISION OF ENTERING STRATEGIES ON INTERNATIONAL MARKETS OF CHINESE COMPANIES: A CASE OF BYD AUTO

The formation of powerful companies in the People's Republic of China that possess their own technologies and are able to offer a competitive product on global markets necessitated the formation of integral strategies for entering these markets. The implementation of such strategies requires an effective marketing strategy, one of the key elements of which is the formation of a sustainable brand. Chinese manufacturers have traditionally relied on price advantages to gain a foothold in new markets, but this approach has proved ineffective in the case of high-tech products such as electric cars. Despite large investments, most companies from the PRC have not succeeded in forming a successful brand, so a study of the experience of the BYD AUTO company, which in a short time turned into the world's number one manufacturer of electric cars, reveals the conditions for implementing a successful international expansion strategy. The main challenge faced by the BYD AUTO company was the formation of a sustainable brand that would play a leading role in the promotion of products to international markets. Achieving this goal is facilitated by two key aspects of BYD AUTO's international marketing strategy: firstly, it is the brand's focus on the combination of technological advantages and social responsibility in the form of promoting solutions for transport with environmentally friendly electric motors, and secondly, the coordination of all elements of the marketing policy and orientation around them set of consumer requirements for the company's products and services. Like most Chinese companies, BYD AUTO implemented a step-by-step strategy for entering foreign markets, adapting to the specifics of local markets. The main competitive advantages were the low price of the product and the involvement of a wide partner network from local companies through the financing of joint investment projects. To reorient the strategy to create a sustainable international brand, it is necessary to focus the brand on the company's key values, synchronize this positioning with the expansion of the product range, standardize the service and reconcile it not only to the field of sales, but also to further operation, intensify electronic sales channels, build an adaptive communication system with clients, which is able to maintain communication on a global level.

International Expansion Strategy in Fast-Growing Businesses: Using Bayesian Networks to Identify Influencing Factors

International Expansion Strategy in Fast-Growing Businesses: Using Bayesian Networks to Identify Influencing Factors

Cementing a place in Africa: PPC’s internationalisation drive

Learning outcomes The study enables students to critique the internationalisation strategy of an African business including elements of macroeconomic analysis, company fit with jurisdictions, non-market strategies and mode of entry. Case overview/synopsis Roland van Wijnen was the chief executive officer of Pretoria Portland Cement Company Limited (PPC), a 130-year-old cement maker based in South Africa. He joined after the business had embarked on an international expansion strategy that had taken the business to countries of Rwanda, the Democratic Republic of the Congo and Ethiopia in a matter of years. This expansion caused the deflation of the Johannesburg-listed company’s share price. The company failed to appreciate a number of success factors in each jurisdiction. The challenges included cultural misalignments, macroeconomic analysis and mode of market entry. The case dilemma involved the choices that van Wijnen faced in re-evaluating the international footprint of the business. Complexity academic level Undergraduate or postgraduate level. Supplementary material Teaching notes are available for educators only. Subject code CSS 5: International business.

Cross-border mergers and acquisitions by emerging country banks: What do acquisition premiums tell us?

Our knowledge of international expansion motives and strategies of emerging country banks (ECBs) is limited. Using a worldwide sample of cross-border mergers and acquisitions (CBMAs) and a mixed model, we explore firm- and country-level determinants of acquisition premiums. We show that the effects of target bank and target country characteristics on premiums are contingent on the acquirer’s home country: emerging vs. advanced. More specifically, compared to advanced country acquirers, ECBs pay lower premiums for targets that are: (i) more efficient; (ii) offering better functional diversification opportunities; and (iii) based in markets with higher growth prospects or better institutional development levels. Furthermore, state-owned ECBs pay higher premiums. Our findings suggest that CBMAs undertaken by ECBs might not be motivated by competence-enhancing strategies while being less sensitive to the target country’s institutional development.

DIGITALIZATION OF SUPPLY CHAIN MANAGEMENT (BASED ON THE SPORTS INDUSTRY COMPANY SIGNA SPORTS UNITED)

The war in Ukraine has led to a change in the supply chains around the world. In the realities of turbulent environment, managing supply chains became an essential requirement. In addition, under the influence of COVID-19, new realities of management were formed, increasing the need for the businesses to integrate digital technologies in order to withstand the turbulence. Those companies which timely shifted their management strategies will be able to experience more advantages in the future. However, digitalizing the supply chains remains a challenging issue, the resolution to which the authors are attempting to provide in this article.
 The main purpose of the research is to investigate opportunities and challenges of the supply chain digitalization based on the Signa Sports United case, the European e-commerce leader in the sports industry. The article examines the main international expansion strategies in order to determine the safest option for the company to implement its business activities in other countries within the current conditions; the methods of establishing resilient and agile supply chains. The article also examines digitalization in the context of supply chain management through analysis of such processes as automation, integration of the Internet of Things, machine learning, predictive maintenance, blockchain, etc.
 As a result, it was found that the topic of supply chain management coincides with the company’s issue, as long as the latter experienced long-term supply chain disruptions. The company’s case helped to disclose the topic in greater depth based on a concrete example. The analysis of the existing strategies in Signa Sports United in combination with the research results act as a basis for development propositions. The article also discloses methods of increasing sustainability in business operations, as long as the impact on the environment is closely related to the supply chain, and its components are the main contributors to global climate change.

Scale, scope, and the international expansion strategies of multiproduct firms

AbstractA growing literature seeks to understand how the characteristics of firms shape the manner in which they serve foreign markets. We consider an environment in which multiproduct firms can sell their products in multiple countries from multiple locations. We show that there are strong empirical regularities in the expansion strategies of U.S. multinational firms and that simple extensions of standard models do not explain these regularities. We augment these models by introducing a framework in which organizational capital is a scarce input within the firm that has to be allocated to particular products and production locations and show that the standard model, so amended, is consistent with the data. We then use the model to analyze the productivity effect of changes in international frictions both within and across firms.

Impact of international expansion strategy on the performance of Japanese banks

The effect of cross-border diversification on bank performance is part of the broader debate on how multinational banking and financial integration affect the global financial economy. Previous studies that examined this relationship present mixed results - namely that cross-border diversification improves bank performance but also increases bank risks that could lead to systemic failure. Even so, this line of debate has not been examined in the case of Japanese banks conducting international operations. The present study questions whether cross-border diversification improves the performance of Japanese banks and to what extent each cross-border expansion activity affects bank performance. The latter was largely ignored in previous studies. Our results show that cross-border diversification improves cost efficiency but decreases/harms the profit efficiency of the banks analyzed. In addition, we find that the expansion of foreign assets and foreign branch operations present funding risks and operational inefficiency. We offer two important recommendations. First, as a major player in international lending, the current expansion activities of Japanese banks require close monitoring and supervision to prevent systemic risk resulting from aggressive and risky overseas expansion activities. Second, the current expansion strategies of Japanese banks, especially the expansion of overseas assets and branch operations (retail banking), should be re-examined.

The Risk-taking Tendency of CEO: The Impact of CEO’s Career Horizon on Internationalization

The paper examines the influence of Chief Executive Officer (CEO) career horizon on the firm’s internationalization. Specifically, we suggest that CEOs with longer career horizon will have the tendency of adopting risk-taking strategies in which they will try to expand their businesses into foreign market regions. Whereas, CEOs who have relatively a shorter career horizon tend to be risk averse but may become risk takers under the circumstances in which they possess higher ownership of the firm. From a sample of US-based firms in various industries, our data analysis showed that the longer the CEO career horizon is, the higher the likelihood that firms will pursue the international expansion strategy. In other words, CEOs who have a longer time until their retirement will more likely engage in the process of focusing their businesses overseas. However, the positive moderating effect of CEO ownership was not supported, but that CEO career horizon is negatively related with the firms’ internationalization when they possess high ownership. In sum, the results of analysis provides a meaningful academic and practical implications for understanding firm’s internationalization decision from the upper echelon theory.

NIVA: business expansion dilemma

Learning outcomes The purpose of this case is to expose readers to the dilemma of expanding domestically or internationally and simultaneously taking key decisions while expanding the business to the international markets. It could be a foundational case for understanding international expansion and growth strategies. After the case analysis, students would be able to: • understand the potential of the domestic market and the factors affecting the international expansion; • evaluate the various methods to enter an international market; • identify the challenges of expanding a business into emerging markets such as India; • analyze the various growth and expansion strategies in an emerging market such as India; and • assess the online promotion strategies in an emerging market. Case overview/synopsis NIVA, The Satin Collection, is a manufacturer and distributor of a luxury collection of silk and satin products. Founded in 2020, NIVA is based in Dubai with more than 1,000 customers. The products include silk bedding, silk sleepwear, fashion accessories and reusable satin masks, and they are made-to-order, custom-made and tailored locally in Dubai. Currently, all the operations are run and managed by the company’s founder, Purva. The only operation which is outsourced is the stitching process. The company is completely operating online and is currently promoting products only through social media platforms such as Instagram and Facebook. Purva is planning to expand her business. The two options are extending her existing operations in the UAE and expanding to other emerging markets, starting with India. Purva needs to decide on a suitable internationalization strategy to decide whether it is the right decision to enter the Indian market, including an entry and promotion strategy in her target market. In addition, she needs to decide whether to continue with NIVA’s current business model in India. There might also be additional possible challenges for NIVA in entering the Indian market. Complexity academic level Postgraduate MBA students, other graduate-level management programs and undergraduate-level students. Supplementary materials Teaching notes are available for educators only. Subject code CSS 5: International Business.

Bridging ‘Home’ Political and Economic Rationalities with ‘Host’ Demands and Constraints: The Case of Regional Chinese State‐owned Multinational Corporations

AbstractRegional state‐owned multinational corporations (SOMNCs) are a major constituent of the ‘going out’ strategy of the Chinese state. Although SOMNCs are nominally infused with political rationalities, they also have explicit contractual economic targets. We therefore explore the underlying rationalities of regional SOMNCs and the roles of expatriate managers in relation to their international expansion strategies. We mobilize Foucault's conception of ‘governmentality’ in providing a holistic understanding of the case of a regional SOMNC (and its subsidiary in Ghana), notably how its managers rationalize their decisions in terms of reconciling political vision with local contexts, tackling domestic competition via foreign market exploration, mobilizing local engagement, improving expatriate managers’ morale, and reinterpreting an interdependent government–business relationship. Our study suggests that coexisting economic and political considerations between the regional government and SOMNCs are instrumentalized with a view to ‘governmentalizing’ overseas operations via business strategies and localization management practices in the Ghanaian subsidiary. In such an interdependent relationship, political appeals and market imperatives are mutually beneficial and complementary, with expatriate managers skilfully using their affiliation with their government. Our theoretical contribution lies in adapting a governmentality driven framework to forge an alliance between liberal forms of management and non‐liberal forms of governing and control.

Impact of organizational dynamic capability on international expansion and the moderating role of environmental dynamism

PurposeThe purpose of this study is to examine the impact of dynamic capability (DC) of organizations on international expansion and further investigate the moderating role of environmental dynamism in the same context.Design/methodology/approachBased on the dynamic capability view (DCV) theory and related literature on international business strategy, a theoretical model is developed. This model is subsequently validated with the structural equation modelling technique through a survey of 324 respondents from Indian organizations. The study also examines the moderating impacts using the multigroup analysis method.FindingsThe study finds that organizations’ sensing, seizing and transformational capabilities impact positively and significantly on international marketing capability, as well as on technological innovation capability, which positively and significantly impacts organizations’ international expansion ability. The study also finds that there is a significant moderating impact of environmental dynamism on organizations’ international expansion.Research limitations/implicationsThis study has provided a unique theoretical model which can explain the factors impacting organizations’ ability toward international expansion. The study also provides vital insights and directions to practitioners, researchers and academicians on the international business strategy for the expansion of organizations. The theoretical model, however, cannot be generalized, as data was taken only from Indian firms.Originality/valueThe study adds to the body of knowledge of international business strategy, international marketing strategy and technological innovation, adding to the scant research on the relationship between organizations’ DC and the international expansion strategy through a unique and tested model with an explanative power of 73%.

Impact of International Expansion Strategy on the Performance of Japanese Banks

Impact of International Expansion Strategy on the Performance of Japanese Banks

The Contradictions of Currency Integration in the EEU

The growth of monetary and financial cooperation will be required to encourage the expansion of trade relations and continued liberalization between EEU member states. The strengthening of national currencies and exchange rates of member states, the development of currency systems, and the coordination of monetary policy will contribute to the deepening of integration processes between member states. Economic integration and the liberalization unfolding within its framework contribute to the internationalization of the currency of a relatively strong country in economic and political terms, as a result of deepening cooperation between countries, as well as increasing transactions of a commercial and financial nature. The paper highlights that such factors, as high currency risks, national currency instability, limited convertibility, different exchange rate dynamics and regimes among member nations and a lack of financial market development make it difficult to increase the share of national currencies in mutual settlements in addition to the low proportion of national currency transactions. Meanwhile, further economic integration is facilitated by the depth and liquidity of financial market development, financial stability measures that prevent exchange rate fluctuations, and international expansion strategies of national financial institutions. The research objective is to evaluate the inconsistencies currently present in the EEU countries' monetary and financial cooperation and to suggest ways to move forward with successful collaboration. The research shows that the depth of financial market development, handling currency rate fluctuations and the global expansion goals of national financial institutions contribute to tighter economic integration.