Articles Flashcards
1
Q
Bartlett and Ghoshal - transnational solution
A
- global efficiency, local responsiveness, and worldwide learning
2
Q
characteristics of a transnational organization
A
- cost advantage while adapting products to local markets
- knowledge and control shared
- interdependent global and local teams
Bartlett and Ghoshal
3
Q
organizational capabilities needed for a transnational model
A
- differential roles for subsidiaries
- strong interunit linkages
- flexible and dynamic processes
Bartlett and Ghoshal
4
Q
Levitt - globalization of markets
A
- markets and consumers becoming homogeneous, demanding for a standardized product.
5
Q
standardization vs customization
A
- firms should focus on standardized global products, which leads to lower production costs, economies of scale, and brand consistency
Levitt
6
Q
role of technology in globalization
A
- allows for companies to reach global audiences
- global consumer convergence due to mass communication (e.g.: TV)
Levitt
7
Q
price vs differentiation strategy
A
- price-driven competition (cheap over locally produced)
- focus on high-quality low-cost standard product
- Coca-cola as example
Levitt
8
Q
implications for business in global markets according to Levitt
A
- global mindset
- cost efficiency
- global branding
9
Q
Vahlne - development of the Uppsala Model
A
- international expansion from a broader and more dynamic perspective
- new model emphasizes evolution
10
Q
key elements of the updated Uppsala Model
A
- experiential learning rather than incremental learning (learning from experience rather than learning from theory and then experimenting)
- firms start in low-risk markets
- reliance on international business networks to accelerate growth
Vahlne
11
Q
shift from market entry to evolution
A
- internationalization as continuous evolution, where firms adapt to external changes
- accounts from disruptions (e.g.: global crises)
Vahlne
12
Q
digitalization’s impact on internationalization
A
- scale globally faster
- online platforms and data analytics reduce uncertainties, especially when entering markets
Vahlne
13
Q
implications for global business strategy according to Vahlne
A
- focus on continuous learning
- build strong networks
- use digital tools and data-driven decision-making
14
Q
welch and Luostarinen - internationalization
A
- increasing involvement in international markets with various ways of engagement (e.g.: exports, foreign direct investment FDI)
- inward and outward internationalization
15
Q
traditional vs modern view on internationalization
A
- traditional: linear and predictable
- now: complex and dynamic process influenced by internal and external factors.
- companies adapt based on market conditions, competition and objectives
welch and Luostarinen
16
Q
inwards vs outward internationalization
A
- outward: through export or FDI
- inward: importing or foreign partnerships
- interconnected: can start as inward and move on to outward
welch and Luostarinen
17
Q
factors influencing internationalization
A
- firm-specific (e.g.: resources)
- external (e.g.: market demands)
- network relationships
welch and Luostarinen
18
Q
the evolution of internationalization theory
A
- captures the diverse and flexible ways firms internationalize
- ‘born globals’ concept (firms that internationalize early and rapidly)
- continuous learning process
welch and Luostarinen
19
Q
implications for global business strategy
A
- involves more than just exporting
- strategic flexibility is key
- networks and partnerships are crucial
welch and Luostarinen
20
Q
Buckley, Doh, and Benischke - Renaissance in IB research
A
- IB research needs to focus on real-world challenges
- Calls for interdisciplinary approach (economics, political science and environmental studies)
- new opportunities for IB: globalization, digital transformation, and sustainability
21
Q
grand challenges IB should address
A
- Globalization and de-globalization: shifts in global trade and geopolitical risks
- digitalization and technology: AI and Big Data impact on MNCs
- sustainability and Corporate Social Responsibility (CSR): balancing profitability and sustainable responsibility
- emerging markets reshaping IB dynamics
Buckley, Doh, and Benischke
22
Q
new IB models should include:
A
- impact of digital platforms and e-commerce
- global value chains in trade and investment patterns
- geopolitical tensions
Buckley, Doh, and Benischke
23
Q
the role of MNCs in a changing world
A
- should focus on stakeholder value, ethics, and inclusive growth, not only profit maximization
- IB scholars should study how MNCs influence and are influenced by global policy frameworks
Buckley, Doh, and Benischke
24
Q
the future of IB research
A
- must bridge academia and practice
- interdisciplinary collaboration
- focus on resilience, agility, and sustainability
Buckley, Doh, and Benischke
25
Dunning - the eclectic paradigm
- OLI framework
- why firms engage in foreign direct investment (FDI) and expand internationally
26
OLI framework
- Ownership advantages: firm-specific assets
- Location advantages: country-specific factors
- internalization advantages: controlling operations rather than outsourcing
Dunning
27
extensions to the eclectic paradigm
- rise of EM MNCs (don't always follow OLI)
- impact of digitalization
- increasing importance of institutional and political factors
Dunning
28
the role of globalization in international production
- Global Value Chains (GVCs) change the way firms organize production
- companies leverage production in multiple locations for different activities
Dunning
29
the impact of institutional and policy factors
- firms must consider institutional frameworks
- countries with strong legal and economic environment get more FDI
Dunning
30
sustainable and responsible IB
- growing CSR and ethical business practices
- balance profitability and sustainability
- FDI shaped by green investment trends
Dunning
31
According to Bartlett and Ghoshal, what is the biggest barrier to implementing a transnational strategy?
The organizational capability to execute the strategy
32
What organizational model do Bartlett and Ghoshal advocate for in multinational companies?
A transnational model combining global efficiency with local flexibility
33
What is one of the key challenges multinational corporations face, according to Bartlett and Ghoshal?
Balancing global integration with local responsiveness
34
What is a major mistake companies make when entering global markets?
Assuming global consumers have different preferences
35
What is a key difference between multinational and global corporations?
Multinationals tailor products for each market, while global corporations standardize
36
According to Levitt, what is driving global market homogenization?
Advances in technology and communication
37
According to the Uppsala model, what factor is crucial in a firm’s internationalization?
Experiential learning and commitment
38
How did the Uppsala model evolve over time?
It shifted from explaining internationalization to explaining evolution
39
According to Welch & Luostarinen, what factor often influences early internationalization decisions?
Psychic distance between home and foreign markets
40
