International Growth Research Articles

Business model innovation for resilient international growth

ABSTRACT Our knowledge concerning the link between internationalization and business model innovation remains limited. This study investigates the change in small and medium-sized enterprises (SMEs) searching for organizational resilience. It particularly focuses on discovering how SMEs innovate their business models when seeking organisational resilience through international growth. In order to answer this research question, we conducted a multiple-case study of three Finnish SMEs. The critical sources of resilience were digitalization, strategic collaboration, customer intimacy, agile use of resources/expertise, and an improved revenue model. For all the case firms, significant business model innovation was required for resilient international growth. Based on the study findings, a new concept is proposed for future research: SME international resilience.

Exploring different responses to mimetic pressures: an institutional theory perspective on e-commerce adoption of an internationalizing retail SME

ABSTRACT The purpose of this article is to explore how mimetic pressures affect an internationalizing small- and medium-sized enterprise’s adoption of e-commerce in the retail business, and by so doing generating insights into the different available responses to such pressures. A single, qualitative case study research design is employed to conduct an in-depth analysis of a retail SME. The data shows evidence of mimetic pressures that are perceived by the retailer. A trajectory of organizational responses to these pressures are identified by examining the changes that the investigated retailer made in its organization. By probing deeper into retail SMEs’ decisions to use e-commerce as a vehicle for international growth, this article contributes to extending the understanding of how internationalizing retail SMEs can respond to mimetic pressures and adopt e-commerce strategies that provide a fit with their business models. One empirical case provides limited possibilities for generalization. Further studies that can enhance the understanding of retailers’ various responses to mimetic pressures of e-commerce in different contexts are therefore suggested.

Church History from the International Periphery: The South American Perspective

Church History from the International Periphery: The South American Perspective

Experienced ‘misfits’: Multinationality alignment, international experience, and adjustments to multinationality

Transaction cost and internalization theory offers that firm-specific transaction-cost factors determine firm-specific optimal levels of multinationality. Decision makers should prefer alignment with optimal levels of multinationality. Yet, some firms continuously misalign with their optimal levels of multinationality. We argue that having multiple preferences may explain these ‘misfit’ firms. Specifically, firms with international experience may develop an inertial preference for further international growth, along with their preference for efficiency/optimization. Hence, more internationally experienced firms with insufficient multinationality will increase their levels of multinationality in subsequent time periods to satisfy both preferences. However, growth preferences in more internationally experienced firms with excess multinationality will counter optimization preferences, reducing the likelihood of decreases to levels of multinationality in subsequent periods. We find support for these ideas in the context of 242 Japanese electrical appliance firms between 2011 and 2019 (1401 firm-year observations).

Missing and Restoring Meaning

Missing and Restoring Meaning

CHAPTER 5: Responding to the Call for Higher Education Transformation in South Africa: The Need to See Beyond “Decolonization” to Contextualization of the Current Curriculum

South African higher education has undergone numerous social, political and cultural changes that call for transformation in the sector. This dates to decades of diplomatic conversations and active protests on old and progressively new antagonisms. Attention-grabbing student protests – popularly referred to as the #RhodesMustFall and #FeesMustFall campaigns – set a new tone and platform for reflection by leaders in the education sector, inclusive of higher- and basic education in South Africa. These have steered many conferences, seminars and research on “transformation” by national education departments, universities, colleges and organizations such as Universities South Africa (USAf). The same protests brought to light several other challenges, such as funding, accommodation, security and academic exclusions, among others. However, as obnoxious as the situation may seem, it still provides the necessary conditions for a deep reappraisal of current hegemonies within the sector, which provides opportunities for stakeholders to reimagine how to shape the goal of the sector. This chapter provides a discussion on how such reimagination has concentrated on the decolonization of the curriculum as a shot at achieving the transformation agenda. For example, the series of debates on decolonizing the curriculum as fundamental to informing and achieving transformed higher education as organized by the Council of Higher Education Quality Committee (HEQC). We argue that this approach is limiting in focus and scope and impacts less on transformational challenges in higher education. It is suggested that an all-inclusive curriculum suited for globalization is contextualized. Such an approach would not only address the need to decolonize the higher education curriculum and provide cognitive justice but also other higher education challenges such as graduate employment and curriculum relevance to national and international economic growth.

A Nonlinear Stochastic Matrix Model for the Analysis of the Association between International Trade Growth and Environmental Change

This study uses a nonlinear stochastic matrix for an in-depth analysis of the association between international trade growth and environmental change. First, for a class of uncertain stochastic nonlinear time-lag systems, this study investigates its time-lag-related robust stochastic stabilization problem. A memory-free state feedback controller for the system is then obtained to ensure the effectiveness of the system performance. This makes the system more general and the corresponding theoretical results less conservative. Finally, numerical examples are given to further verify the validity and feasibility of the results. The “tariff measure” based on the magnitude of adverse changes in trade policy is not an accurate measure of trade policy uncertainty; the stochastic volatility method measures trade policy uncertainty by including tariff fluctuations that have been communicated in advance in the trade policy uncertainty indicator and fail to identify the different commodities that occur during the current trade friction. The trade policy uncertainty index constructed through textual analysis of newspapers can better reflect the trade policy uncertainty during this trade friction between China and the United States, and the rich time-varying nature can also reflect the alternating changes of tension and détente in economic and trade relations over some time. The analysis of the mechanism reveals that exporters have fewer emission reduction facilities than nonexporters but significantly lower energy consumption intensity for coal and water than nonexporters, reasoning that the mechanism by which exporters are more environmentally friendly than nonexporters lies in their cleaner energy use mix. Following the conclusions of this study, relevant policy recommendations are put forward, specifically the use of more efficient energy sources in the production process and more investment in energy efficiency and emission reduction to combat pollution.

The contribution of international tourism development to economic growth in Chinese economy

ABSTRACT This study investigates the asymmetric effect of international tourism development on economic growth in eastern China based on yearly data for the period between 1995 and 2020. The quantile-on-quantile (QQ) approach introduced by Sim and Zhou was adopted in this work, because it assesses how various quantiles of inbound tourism affect different quantiles of economic growth. Thus, the QQ approach gives a more detailed explanation of general dependence of international tourism development and economic growth than traditional approaches, such as ordinary least squares or quantile regression. The empirical outcomes explain that the relationship between international tourism development and economic growth is mostly positive for eastern China. However, among China’s eastern regions, the correlation between economic growth and tourism development in Hebei and Zhejiang was the weakest.

Revealing the nexus between tourism development and CO2 emissions in Asia: does asymmetry matter?

Asia is one of the fastest-growing regions in international tourism, economic growth, and CO2 emissions around the globe. However, the relationships between tourism and CO2 emissions are little and unclearly identified. The purpose of the study is to explore the asymmetric nexus between tourism and CO2 emissions in a panel of five high emitters Asian countries covering the period of 1995-2019 by using panel-NARDL-AMG. The empirical results reveal that a positive shock in tourism arrivals increases CO2 emissions, while a negative shock also increases CO2 emissions in the long run. Moreover, a negative shock has a greater effect on CO2 emissions than a positive shock in Asia in the long run. Tourism receipts are expected to maintain the robustness of CO2 emissions in the long run in Asian economies. The authorities should develop and design green international tourism activities in the Asian economies.

Internationalisation-Localisation Debate in Case of Croatian Exporters’ Intangible-Tangible Asset Investment

Abstract This study analyses the role of investment in intangible and tangible fixed assets on firm internationalisation pace. Financial microdata of the largest 300 Croatian exporters for the period 2006-2015 were examined by system dynamic panel GMM. Results illustrate that investments in intangible assets significantly and positively increase export growth but not domestic revenue growth. The study also analysed differences in internationalisation and localisation growth depending on investments in intangible and tangible fixed assets. Investments in intangible assets positively affect firm internationalisation growth, while an increase in intangible assets negatively affects localisation growth. Significance of this study is twofold. Firstly, it provides evidence of the importance of investments in intangible assets for export growth and internationalisation growth. Secondly, it shows that investments in intangible assets are more important that investments in fixed assets, thereby providing practical implication for firms aiming to increase the pace of their international expansion.

Comparison of National Growth Standards for Turkish Infants and Children with World Health Organization Growth Standards

Objective:Using World Health Organization (WHO) standards in pediatric practice is still controversial in many countries. It is suggested that national growth charts best reflect the genetic and ethnic characteristics of a population. The aim of this study was to compare length/height, body weight, and body mass index (BMI) in healthy Turkish children of ages 0 to 18 with those proposed by WHO as the international growth standards.Methods:The data of Turkish children were collected from infant/child population aged 0-5 years (2391 boys, 2102 girls) and children of ages between 6-18 years (1100 boys, 1020 girls). For comparison, the 50th, 3rd, and 97th percentile curves for length/height, weight, and BMI in Turkish children were plotted together with respective WHO data.Results:Heights were essentially similar in the Turkish and WHO data at ages between 3-10 years. Turkish children were markedly taller compared to the WHO standards after the age of 10 years. Evaluation of the 3rd percentile data revealed that Turkish boys were shorter than the WHO subjects in the first 2 years of life. From 6 months of age, Turkish children showed higher weight for age values in the 3rd, 50th, and 97th percentiles. In all age groups between 6 months and 3 years, and in between 6-18 years of age, Z-score values, as well as the 50th, 15th, 85th, and 95th percentile values were higher in Turkish children. The differences were particularly noteworthy at ages 1-2 years and in the pubertal years.Conclusion:WHO growth standards do not reflect the growth of Turkish children and may substantially alter the prevalence of short stature and underweight in Turkish children in the 0-5 years age group. When assessing the nutritional and growth status of children, national growth standards may be more appropriate.

Towards Economic diversification by Enhancing Inflow of International Students to Oman

The higher education in the GCC region in general and Oman in particular has shown tremendous growth in internationalization of higher education since late 1990s as private universities and colleges were permitted to establish affiliation with foreign universities and higher education institutions (HEIs). The government has been proactively investing in improvising its human capital through higher education. Furthermore, the country enjoys many advantages over other GCC countries with respect to foreign policy, political stability, global competitiveness index and global peace index. Despite its established advantages, the rate of inflow of foreign students is not encouraging. This paper overviews the globalization of higher education in terms of inbound and outbound ratios in the GCC region and attempts to provide an outline for enhancing the inflow of international students to Oman. The inflow of international students will contribute to the economic growth of Oman economy as well.

Empirical study on international tourism and economic growth of Thailand: an ARDL - ECM bounds testing approach

Purpose — To examine the impact of tourism on economic growth in Thailand.Research method — This study was conducted using the Autoregressive Distributed Lag (ARDL) bounds testing approach, performed between 1995 and 2018.Result — The analysis finds out that there is a long-run cointegration in the data. The ECM approach is applied, and the results conclude that the long-run cointegration exists. However, the model depicts that there is not any significant positive relation between FDI and economic growth. The study results showed that the positive impact of tourism in the short term is extremely low, relative to that of the long term. The study results indicate that tourism's optimistic short-term effect is slightly smaller than in the long-term. This can be because certain government restrictions and other exogenous factors hinder the arrival of visitors in Thailand in the short term. Therefore, the government needs to resolve these constraints concerning trade, transportation, taxes, allocation of capital, and environmental risks to attract further tourism visitors and thus improve Thailand's economic growth.

Justifying International Growth in Spanish Family Wineries and Olive Oil Mills

This article examines the mediating effect of economic motivations on the relationship between family involvement and the growth-oriented made decisions. Besides, it analyses the moderating effect of internationalisation in this relationship as one strategic alternative to achieve that business growth. Family businesses possess features that set them apart from other types of businesses and influence on the establishment of objectives, in the selection of strategies and the decision-making process. Therefore, their desire to achieve long-term growth and/or survival could be motivated by reasons that differ from those of non-family businesses. Internationalisation is a possible strategy for achieving these long-term objectives. The developed empirical study is quantitative research based on the Partial Least Squares (PLS) methodology. The study population comprises Small Spanish wine and olive oil producers companies. Study results show that economic motivations affect the relationship between family involvement in the business and achievement of business growth. Likewise, we find that, depending on their international propensity as moderating variable, the mediation effect of the underlying business economic motivations is total for non-international firms, whereas that effect is a partial one if the firms have become international. Additionally, there is a moderation of internationalisation, with a total mediation of economic motivations in Spanish wineries, not occurring in the case of olive oil mills, where there is a partial mediation. In the decision-making process of high family involvement business, the economic motivations should be taken into account to achieve business growth from the development of the internationalisation strategy. These economic motivations could be as relevant as other non-economic motivations to guarantee the continuity of the family nature of the business, especially when the firms belong to the Spanish wine sector.

Corruption, institutional quality, and offshoring: How do they affect comparative advantage, inter‐country wage inequality, and economic growth?

AbstractWe analyze whether, due to the effects on corruption, institutional quality, and offshoring affect comparative advantage, income inequality between countries and economic growth. We start by developing a theoretical model of endogenous R&D growth for an integrated area with two representative countries that differ in the economic development level. Then, we estimate an econometric model with panel data, considering combinations of 14 different countries, between 2000 and 2017. We show that an improvement in offshoring increases the comparative advantage of developing‐South countries and decreases the wage gap between developed‐North and South countries. In turn, an improvement in institutional quality increases the comparative advantage of the North and widens the wage gap between countries. Whatever the improvement, there is always an increase in the world economic growth rate. Thus, all countries can improve their position in international trade, labor market, and economic growth through the conduction of policies that reduce corruption and, respectively, increase the quality of institutions and the attractiveness for the offshoring.

‘The Lucky Country’: How the COVID-19 Pandemic Revitalised Australia’s Lethargic Art Market

Since its publication in 1964, Australians have used the title of Donald Horne’s book, The Lucky Country, as a term of self-reflective endearment to express the social and economic benefits afforded to the population by the country’s wealth of geographical and environmental advantages. These same advantages, combined with strict border closures, have proven invaluable in protecting Australia from the ravages of the global COVID-19 pandemic, in comparison to many other countries. However, elements of Australia’s arts sector have not been so fortunate. The financial damage of pandemic-driven closures of exhibitions, art events, museums, and art businesses has been compounded by complex government stimulus packages that have excluded many contracted arts workers. Contrarily, a booming fine art auction market and commercial gallery sector driven by stay-at-home local collectors demonstrated remarkable resilience considering the extraordinary circumstances. Nonetheless, this resilience must be contextualised against a decade of underperformance in the Australian art market, fed by the negative impact of national taxation policies and a dearth of Federal government support for the visual arts sector. This paper examines the complex and contradictory landscape of the art market in Australia during the global pandemic, including the extension of pre-pandemic trends towards digitalisation and internationalisation. Drawing on qualitative and quantitative analysis, the paper concludes that Australia is indeed a ‘lucky country’, and that whilst lockdowns have driven stay-at-home collectors to kick-start the local art market, an overdue digital pivot also offers future opportunities in the aftermath of the pandemic for national and international growth.

An Analysis of Direct Sales Business in European Market-A Case Study of Tshi Company

<p><span style="font-family: 'Times New Roman';">Direct sales is a business </span>model widely <span style="font-family: 'Times New Roman';">adopted in the sectors of health products, cosmetics, and etc. Many companies adopting this business model are seeking international growth, and multiple types of barriers could emerge during this process. This paper carries out a classic SWOT analysis to understand the situations faced by a typical direct sales company marketing complementary </span>food with <span style="font-family: 'Times New Roman';">TCM elements to the European market, in the hope of providing reference for business of similar qualities and other researchers interested in this field.</span></p>

A Comparison Between University Curriculum Design and Practical Ability Requirement of Business English Majors

The cultivation of Business English talents is of great significance to Chinese people’s promotion of international cooperation and economic growth. However, the colleges and universities in China are still exploring how to best achieve this goal. By interviewing four Business English graduates who are currently working in the sector of international trade, this study attempts to investigate the gap between the curriculum design and the actual ability requirement for Business English majors. The analysis shows that gaps exist in all the six aspects, namely comprehensive quality, theoretical knowledge, practical experience, industry knowledge and general knowledge. The lack of practical experience and industry knowledge are most prominent. This study reveals that there is room for improvement in the current training programs for Business English, especially the modules of parallel classroom, theoretical courses, practical teaching, cooperation between schools and enterprises and general courses.

What corporations can learn from the struggle in the market for souls

AbstractThe pace and extent of expanding religions holds essential lessons for business leaders and their corporations' international growth style. Monotheistic religions overtook polytheistic ones and the proselytizing religions expanded faster and farther. This lesson underscores the importance of alignment, as well as suggesting that corporations grow through acquisitions and promoting greater permeability at headquarters. This would improve the international allocation of headquarter capabilities as well as allow faster deployment of the talents acquired through global expansion.

Getting a Foot in the Door: Trade Credit Strategies and the Pursuit of Entrepreneurial Internationalisation

Trade credit strategies – comprised of the approaches used by internationalising firms to set the payment terms and schedules for their customers – are one of the few levers available to new small firms to overcome the liability of outsidership. They are vital to entrepreneurial firms seeking to achieve international market growth in the context of scarce resources and limited knowledge of foreign markets and partners. Though under-explored and under-theorised to-date, trade credits may unlock material insights for predictive models of entrepreneurial growth. As such, our study develops and tests the notion that trade credits constitute an important mechanism for entrepreneurial firms to initiate goodwill and generate valuable referrals. However, our findings also suggest that while riskier trade credit strategies help first-time exporters combat exclusion from networks key to a firm’s ability to internationalise, the attendant risks often have a detrimental impact on long-term profitability and survival, thus creating a decision-making conundrum for growth-aspirants. Drawing upon a sample of 88,000 export transactions by 1040 small lumber firms from 52 countries, we advance theory and practice by showing how trade credit strategies shape both growth and performance.