1 Flashcards

1
Q

2x2 Firm size vs Domestic Market size (type of internationalizer)

A

Occasional Slow

Follower Enthusiastic

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2
Q

2x2 IR framework
Advantages/Forces for local responsiveness
Advantages/Forces for global

+ characteristics

A

Global Transational
International Multinational

Centralized/Scale Global efficiency+flexibilty

Centralize most Decentralized, self-sufcnt
valuable resources Entrepenurial
Export knowl/capab

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3
Q

The intensity of rivalry (2x2)

A

Based on (resource similarity, market commonality)

4th 3rd
2nd 1st

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4
Q

Top 3 hassle factors

A

Local Transport
Climate
Business Fascilitation

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5
Q

Institutions provide ___ and ___ for firms

A

Certainty Predictability

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6
Q

During institutional transition, what is very important

A

Informal Institutions

note - instituttions are socially constructed, and inform managerial decision making

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7
Q

Country attractivness is a multi-level concept

A

Supra-national - Global (bits/mits)
Macro-national - Country
Sub-national - City

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8
Q

What are the resources that are necessary for expansion?

  1. seperate into
  2. 3 types
  3. 4 types of drivers (motivation) for internationalization
A

What we have - What we need

Funding / People / Products

  1. Efficiency
  2. Resources
  3. Market
  4. Strategic-asset seeking
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9
Q
  1. Matching internal resources with customer needs in new market
A

How do we create value for these new dudes

Are our capabilities transferable? (im)perfectly?

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10
Q

Entry mode decisions follow a series of decisions, that have some inherent ordering, and involve different factors

but..

A

1st Order - Equity or non-equity, macro factors
2nd order - 4 types
Last order - Actual entry choice, driven by transaction cost entry

but…

should also focus on institutions and culture (all 3, not just TCE)

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11
Q

Brownfields - a type of acquisition …

Setting is emerging economies, emphasis on imperfect external and internal markets. 3Many issues:

A

Valuation
Negotiation
Enforcement

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12
Q

Brownfield/Greenfield/Conventional decision

A

External/Internal Preferance

Target have suffcnt resource/Project depend on resources not freely available

Conventional
Brownfield
Brownfield
Greenfield

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13
Q

Heirarchical model of choice of entry

A

Non Equity vs Equity
Export - Contractual Equity joint venture -WOS

Export (Direct,Indirect, Other)
Contractual (Lisensing, R&D contract, alliance, other)
EQJ - (minority, majority, 50/50)
Acq - (greenfield, acquisition, Other)

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14
Q

Specifics for the 4 types

A

Export (Low Risk/Low control/Low reward)
search cost/ monitor cost/ negotiation cost

Contractual Agreement
Lisencing - OMM asks OEM to manafacturer
R&D - learning & reciprocity

EQJ - sub 100%

WOS (High risk/ High control / High reward)
valuation cost / integration cost

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15
Q

Process theory / Stages model / Uppsala model

4 key parts

Butttttt -

A

International Expansion is Incrimental
Internationalization takes place AFTER home country
Low commitment first (left side) -> risk avoidance
Build gradual international experience

but -> GLobal new ventures also exist

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16
Q

Gloabl new ventures variables (2each)

Do we go international?
Home important are international activities?

A
  1. Size of home market
  2. Inaugral capacity
  3. Size of foreign market (moderated by cultural distance, more important for non-specific mass market)
  4. Number of competitors
17
Q

Learning from Expansion Model (cycle)

3 Learning Dimensions, depends on=

A

Exploit existing capabilities in Host country
Develop new capabilities from Host country

Breadth
Depth
Speed
= Knowledge Integration

18
Q

International Experience effect on growth and survival

Moderated by

__ is substitutable for __ in this model (check prof email)

A

+ Growth
- Survival

Liability of newness, makes both effects weaker

Managerial experience for Organizational experience

19
Q

Liability of smalness 3 dimensions

A
  1. Resources
  2. Managerial Expertise
  3. International Experience
20
Q

Liability of newness 2 dimensions

A
  1. Routines
  2. Relationships

BUT lower chance of competency trap