IBS: Les 2

Question 1

Centralized exporter

Answer 1

Bv ROLEX
= standardized products manufactured at home embody the firms FSAs and make the exporting firm successful in international markets
=>No development of new LB FSAs in the host country

Question 2

Interntional projector

Answer 2

Bv DISNEY
=Knowledge based FSAs developed in the home country are transferred to subsidiaries in host countries. The international projector MNE seeks international expansion by projecting its home country succes recipes abroad
=> NLB FSAs are copied from the home country and adapted to host country. No new LB FSAs are formed in the host country

Question 3

Interntational coordinator

Answer 3

Bv APPLE
= International operations are specialized in specific value-added activities and form vertical call chains across borders. The MNE’s key FSAs are in efficiently linking these geographically dispersed operations through seamless logistics.
=> all subsidiaries are linked through the MNE to create a valued chain base.

Question 4

Multi centered MNE

Answer 4

Bv AB-INBEV
= The multi-centered MNE consists of a set of entrepreneurial subsidiaries abroad, which are key to knowledge-based FSA development. National responsiveness is the foundation of the international strategy. The NLB FSAs that hold these firms together are minimal: common financial governance and the identity and specific business interests of the founders or main owners
=> Only key routines are transferred

Question 5

Recombination capability

Answer 5

higher order FSA

reflects a firms ability to combine its existing resources with newly-accessed resources in innovative ways.

Question 6

Requirements for recombination

Answer 6

1. entrepreneurial skills
2. slack Human Resources
3. the replacement of some resources in the initial resource bundle

Question 7

Complementary resources of external actors

Answer 7

Often needed to fill ‘resource gap’

Question 8

Bounded rationality

Answer 8

information problems

1. information incompleteness
2. information overload

Question 9

Bounded reliability

Answer 9

internal and external actors do not always put into practice their expressed intentions.

1. opportunistic behavior
2. Benevolent preference reversal