FALL 2012
VOLUME13, NUMBER2

SUCCESSFUL IN-BETWEEN? ANALYZING THE INTERNATIONALIZATION OF MEDIUM-SIZED WORLD MARKET LEADERS

David Rygl

Successful internationalization has become an inevitable challenge for most small and medium-sized companies. In this explorative study, based on interviews with 84 owners and CEOs of German small and medium-sized world market leaders (WMLs), specific success factors, typical internationalization patterns, existing challenges and potential risks are identified. Four types of those WMLs could be classified leading to the taxonomy of Visionaries, Conquerors, Companions and Globalizers. Their internationalization scheme could be assigned to three internationalization stages. When matched with the learning theory of internationalization (Johanson and Vahlne, 1977, 1990) this study contributes to the ongoing discussion regarding the applicability of traditional IB-theories.


https://doi.org/10.51240/jibe.2012.2.1          PDF

CROSS-NATIONAL DISTANCE: CONCEPTS, MEASURES AND RELATIONSHIPS

Karen L. Newman

Cross-national distances between national cultures and national institutions have been studied extensively in the last two decades, particularly with respect to their effects on the conduct of international business. Yet varying levels of analysis, inconsistent definitions, and different operationalizations of cross-national distances inhibit theoretical and empirical advances. Three approaches to non-geographic cross-national distance permeate the literature: psychic distance, national cultural distance, and institutional distance. The meaning of psychic distance has become muddied by evolving operationalizations, from objective indicators to individual perceptions. National cultural distance has been confused with both psychic distance and institutional distance. Various and inconsistent institutional arrangements and business practices are used as measures of institutional distance. This article reviews overlaps, inconsistencies, and ambiguities in the definitions and measurements of psychic, national cultural and institutional distance; suggests a way to rationalize the three constructs; and offers two competing models to explain the role of all three distances in international business decisions.


https://doi.org/10.51240/jibe.2012.2.2          PDF

EXAMINING INDUSTRIAL CLUSTERS FROM AN ECOLOGICAL PERSPECTIVE: EVIDENCES FROM NORTH-EAST CHINA

Ge Li, Ramudu Bhanugopan, and Alan Fish

Industrial clusters are increasingly seen as essential in effectively combining, developing and enhancing like-minded businesses. Industrial clusters irrespective of their location are providing positive outcomes for ecological derivatives in supporting effective industrial developments. This perspective is addressed within this paper via employing the ‘Logistic Model of Ecology’; through the application of differential equations. This paper explains key interspecies relationships; competition, predation and symbiosis, operating within a regional cluster in the Jilin Province in the north-east of The Peoples’ Republic of China. The paper draws the conclusion that ‘intense competition’ is the key factor contributing to the successful existence of the cluster.


https://doi.org/10.51240/jibe.2012.2.3          PDF

FOREIGN DIRECT INVESTMENT AND CURRENT ACCOUNT DEFICIT - A CAUSALITY ANALYSIS IN CONTEXT OF INDIA

Manpreet Kaur, Surendra S. Yadav, and Vinayshil Gautam

Current Account Deficit is one of the major macroeconomic problems facing India. In this paper, we have tried to investigate the relationship between Foreign Direct Investment (FDI) and current account in the context of India. Using the Toda-Yamamoto (T-Y) granger causality technique for the period 1975-2009, our results indicate that FDI and current account are co-integrated in the long run. There is evidence of unidirectional causality from FDI to current account. Furthermore, the analysis of FDI and international trade components (Exports and Imports), which are the major constituents of current account, supports our results of granger causality. Also, an attempt has been made to provide for the impact of FDI on current account through impulse response function


https://doi.org/10.51240/jibe.2012.2.4          PDF

THE IMPACT OF COMPETITIVENESS ON FIRM GROWTH IN SPECIAL ECONOMIC ZONE: A STUDY OF ELECTRONICS CLUSTER IN BATAM, INDONESIA

Sari Wahyuni, Irwan Adi Ekaputra, and William Tjong

Special Economic Zones (SEZ) have proven to be a powerful engine in fostering regional economy but also excel the capability of a country. This research aims to investigate some major determinants of electronics firms’ growth operating in Batam Island which is considered as the first SEZ in Indonesia. By employing qualitative and quantitative approach, the result of this study shows that there are some macro and micro variables that influence the growth of electronic firms. The macro factors consist of good governance, institutional, human resources, labour, and corruption. The micro factors are size of the firm, efficiency in value chain activities, and innovation.


https://doi.org/10.51240/jibe.2012.2.5          PDF