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MIBO lectures:
Reading 1:
Two dominant internationalization approaches:
Gradual internalization research is rooted in Uppsala model à relationship between learning and commitment
Rapid internationalization research is rooted in research on born globals and international new ventures à prior experience and learning (learning by doing).
Profile is important (so see the industries) à read the paper and develop profile
Examine the internalization approach of Netflix. Did Netflix persuade gradual rapid internationalization, also argue why Netflix adopted this approach
Reading 2:
Overview of entry mode research à key antecedents and multiple theoretical perspectives (docus primarily on external and internal antecedents.
Antecedents:
What entry mode would an MNC prefer for a distant subsidiary located in highly attractive market in terms of its customer base
Reading 3:
How do MNC changes foreign operation modes
Can de company reduce the level of ownership? à of case study
Reading 4:
De-internationalization vs Internationalization à help with case presentation.
Internal dynamics:
Which are important for your own case study and which ones are least important?
If you are hired as a consultant for you assigned companies, would you advise them to re-enter the markets they have exited? Also, provide a justification for your response. For example would you advise target to re-enter Canada?
Reading 5:
Findings apply do de-internationalization
Antecedents of de-internationalization à superior understanding of antecedents in relation to reading 4
Host country experience increases the likelihood of divestment (or de-internationalization)
Reading 6:
Overview of distance research à negative perspective on distance
Drawbacks and benefits of distance:
Impact on key MNC decision à skewed focus on cultural distance
Higher the distance:
Does distance really lead to better decision making? Can you think of examples or situation where multinational companies have not made better decision when entering distant markets
Reading 7:
Overview of research done of foreignness à takes a more positive perspective on distance in relation to reading 6
Drivers and response to over liability of foreignness:
Presents assets of foreignness as a contrary notion to liability of foreignness
Can you think of specific actual example where multinational companies have used their foreignness to gain benefits?
Reading 8:
Unilever and shell have recently decided to base their HQ in the UK only, previously they had their HQ both in the Netherlands and the UK. What are the benefits and costs of having multiple corporate HQ. Do you agree with their decision to bade the corporate HQ in the UK, not in the Netherlands?
Reading 9:
Key findings:
Many Dutch companies use home country nationals expatriates in distant subsidiaries, like China and Brazil. They are given top positions in the subsidiary such as country manager or president. What are the pros and cons of this policy?
Reading 10:
Are multinational companies always successful? à Do multinational companies hold an advantage over domestic companies
Research on multinational and performance had mixed results
Performance of MNCs is linked with FSAs not multinationality à exploit FSAs and develop new FSAs in foreign markets
Perspectives à empirical findings (last two are both non-linear)
Churros wants to open an second shop after amazing success in Groningen. He is thinking of Hamburg as an option. Would you recommend him: stay in Groningen only or open a shop in Hamburg (make cost and benefit analysis)
Reading 11:
Provide a supply chain or global value chain perspective
Role of location advantages and institutions
Discussion of the notion of governance and upgrading
We can observe upgrading at the country level in Bangladesh. How have they made it possible? Why is upgrading happening at firm level, as there are no textile brand from Bangladesh?
Reading 12:
Which marketing strategy does Friesland Campina adopt, primarily terms of its products. Argue why they adopt this strategy
How do you think McDonalds finds a balance between selling products that reflects the company’s resources and identity, but also enables the company to find a strategic fit with the multiple cultural environments in which they operate
Reading 13:
Social responsibility domain of a multinational company à combination of environment, ethical, and social dimensions of MNC activities
Transition of the social responsibility domain over time à pollution control to corporate activism
Use Ben & Jerry’s as the case study to discuss the costs and benefits associated with corporate activism
Reading 14:
Overview of non-market strategies of multinational companies
Non-market strategy: actively manage the institutional and/or societal context
Purpose: gaining legitimacy, risk reduction; ultimately to maintain competitive advantage and profitability
Integrate CPA and CSR activities
Non-market strategies:
What is the purpose of sustainability reports. What information do companies include in them?
MTN was accused of giving protection money to Taliban in Afghanistan to secure its infrastructure between 2009 and 2017. Taliban had complete control of certain parts of the country and the formal Afghan governments had no writ in those areas. If you were working as and expatriate in Afghanistan, how would you have dealt with this problem?
Reading 15:
Is decision making always rational?
Heuristics: decision rules, procedures, or rules of thumb that simplify decision making à decision makers are faced with bounded rationality issues
Biased or prone to error vs. fast and frugal
Use of heuristics is prevalent in the IB contexts à imitative behaviour, availability heuristic and anchoring heuristic
Why is franchising so prevalent among fast food chains, like KFC and Burger King? Is it the most effective entry mode strategy in foreign markets for fast food chains?
Reading 16:
ethical dimensions in decision-making
Convergence vs divergence à this paper focuses on the divergence perspective
Discusses how ethical standard vary across cultures
What explains the reactions of PepsiCo and how would you have reacted if you worked at PepsiCo à suing farmers that produce for Lays Chips
Is it wrong to bribe politicians in Iceland, but right to do this in Namibia?
Reading 17:
Understand the international expansion of digital platform firms à FSA are the users on the platform
Importance of network externalities:
Nature of network and externalities had an impact on the internationalization strategies
Bol.com only operates in Netherlands and Belgium. Should it peruse further global expansion? If no, what are they challenges. If yes, how should it proceed with the global expansion (which countries and entry mode choises)
Reading 18:
Distinction between family firms and non-family firms à long term horizon (wants to provide something sustainable for the next generation) and financial and non-financial goals
All family firms are not risk averse of careful in decision making à balance financial goals with non-financial goals (SEW)
Family firms differ in their approach to internationalization à no consensus in existing research
Social economic wealth:
Examine the global expansion patterns of Heineken. What key lessons can be learnt from Heineken as a global company, primarily in terms of maintaining successful family business over four generations
Reading 19:
Have we overestimated the capabilities and potential of emerging market multinationals
New theories are not required to understand the actions of emerging market multinationals (goldilocks story)
No evidence to support springboard perspective
Not appropriate to treat all emerging markets as being completely identical
Home markets of emerging markets multinational are characterized by institutional vulnerabilities and markets constraints.
Dependent on strategic assets of multinationals based in advances markets à pursuing strategic assets seeking investments to become global leaders
Can they easily identify and assimilate these strategic assets?
Home markets of ermerging markets multinational vary considerably from each other; do not have institutional voids
Combine market seeking investments with strategic assets seeking investments à actively investing in Africa
Not solely dependent on strategic assets possessed by multionationals in advanced markets
Do not want to become global leaders
Geely acquired Volvo Cars in 2010. It was being described as a move that will lead to Geely becoming a world leader in the automotive industry. How has Geely gained from this acquisition and how did Volvo gain from this? Did Geely pursue more global expansion after that?
Reading 20:
Explain the global expansion of state-owned companies
Mechanism for providing social welfare to citizens to serving as vehicles for political diplomacy
State-owned multinational need to manage financial goals with political ambitions of the home government
State ownership provides access to resources, but can also be a source of hostility in foreign markets à need legitimacy building initiatives
Indian Oil, a state-owned multinational company, has subsidiaries in Mauritius, Sri Lanka, and United Arab Emirates. Can you explain the motivation behind the choice of entering these foreign markets?
Are there any Dutch state-owned multinational companies and why are there so few or none
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Very clear and compact! Luc Berger contributed on 17-03-2022 13:05
This is a great summary to really see the most important things of each reading! I think this is helpful for a lot of people!
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