Global Strategy
Name the two papers related to Global Strategy in the curriculum
1) Yip (1989)
2) Zou & Cavusgil (1996)
What are the different governance structures proposed by Williamson (1985)?
- Market governance
- Trilateral governance
- Bilateral governance
- Unified governance (hierachy)
Name the papers from the curriculum that are related to entry mode and entry timing
Entry mode
- Anderson & Gatignon (1986)
- Maekelburger et. al. (2012)
Entry timing
- Dierickx & Cool (1989)
- Beamish et. al. (2014)
What four criteria do a capability need to fulfill in order to be a sustained competitive advantage according to Barney & Hesterly (2019)?
- (V) Valuable
- (R) Rare
- (I) Inimitable
- (O) Organization
What are the different types of options in international strategy, according to Li (2007)?
- Option to defer (important in: entry timing)
- Option to grow (important in: entry mode)
- Option to switch (important in: entry timing)
- Option to abandon (important in: entry mode)
- Option to learn (important in: entry mode)
- Market factors
- Cost factors
- Environmental factors
- Competitive factors
What are the behavioral assumptions in Williamsons transaction cost theory?
1) Bounded rationality
2) Opportunistic behaviour
What are the four constructs in Anderson & Gatignon (1986) to determine entry mode - Equity entry vs. non-equity entry (based on transaction cos theory)
- External uncertainty
- Internal uncertainty
- Free riding potential
Name the two simplifying assumptions in Barney & Hesterly (2019)s VRIO model.
- Resource homogeneity (firms are identical)
- Perfect mobility (firms´ resources are highly mobile)
What does Li & Li (2010) suggest about market uncertainty and flexible ownership modes?
And what factors influence the choice of ownership mode?
The more market uncertainty, the more flexible ownership mode.
1) Uncertainty (+ /base/)
2) Growth potential (-)
3) Irreversibility (+)
4) Intensity of competition (-)
What characterize a Global Strategy according to Yip (1989)?
- Major market participation
- Product standardization
- Activity concentration
- Uniform marketing
- Integrated competitive moves
Name the six types of asset specificity
- Site asset specificity
- Physical asset specificity
- Human asset specificity
- Dedicated asset specificity
- Brand name asset specificity
- Temporal asset specificity
What are the 5 safeguards mentioned by Maekelburger et. al. (2012)
1) International experience
2) Host-country networks
3) Imitation
4) Property rights protection
5) Cultural proximity
What are the two new constructs proposed by Sharma & Erramili (2004)?
A firm´s likelihood of (establishing) or (transferring) a competitive advantage in host country in:
1) Production operations
2) Marketing operations
What does Chi, Li and Triegeorgis (2019) mean, when they talk about endogenous- and exogenous uncertainty?
Endogenous uncertainty:
- Learning possible
- Learning costs
- No learning without investment
Exogenous uncertainty:
- Passive learning over time
- Uncertainty resolved over time
What do Zou & Cavusgil (1996) add to the framework proposed by Yip (1989)
--> Technological factors
To Global Strategy characteristics
--> Coordination of value-adding activities
Internal organizational factors
- Market orientation
- Managerial orientation and commitment
- Organizational culture
- Organizational capabilities
- International experience
What are the three dimensions of a transaction according to Williamson (1989)
- Transaction frequency (how often similar transactions are repeated)
- Uncertainty
- Asset specificity
What does Dierickx & Cool (1989) say about speed and entry?
Time Compression Diseconomies
- Inefficiency occurs when things are done faster.
- As the time allowed for develop a competence shortens, the cost of developing it increases exponentially
What does Mayer & Solomon (2006) suggest about entry mode, in the presence of contractual hazards?
A firm is more likely to use internal forms of governance (equity mode), when a transaction is subject to contractual hazards (Hypothesis 1A)
... further, when a technological capability is;
- weak = market (H2A)
- strong = internal (hierachy) (H2B)
How is "Irreversibility" defined?
The degree to which an assets re-sale value decreases compared to its purchase price.
Low irreversibility = low losses
High irreversibility = significant losses
What does Bearmish et. al. (2014) say about entry and speed?
H1: Faster speed (of subsequent subsidiary establishment) is associated with lower performance (of the subsidiary)
H2: The negative relationship between speed and performance is stronger for early mover subsidiaries in a foreign market