Summary lectures all (1-20) MIBO readings

MIBO lectures:

Reading 1:

Two dominant internationalization approaches:

  • Gradual vs Rapid internationalization
  • Timing of initial expansion and speed of internationalization

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:

  • Higher the cultural distance, higher the likelihoods to opt for collaborative entry modes (e.g. do a joint venture)
  • Higher the market attractiveness, higher the likelihood to opt for higher control (e.g. a wholly owned subsidiary
  • Higher the uncertainty, higher the likelihood to opt for collaborative entry modes
  • Higher the desire to control or monitor the subsidiary, higher the likelihood to opt for higher control
  • Higher the international experience in similar markets, higher the likelihood to opt for higher control
  • Higher the desire to safeguard specific assets, higher the likelihood to opt for higher control

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

  • Shows how MNCs make mode change decision over time (make a distinction from entry mode decisions
  • Types of mode changes
  • Antecedents mode change (firm and environment level antecedents) à increase level of commitment

Can de company reduce the level of ownership? à of case study

Reading 4:

De-internationalization vs Internationalization à help with case presentation.

  • Understand the antecedents, outcomes and moderators of de-internationalization

 

Internal dynamics:

  • Ownership
  • Pace of internationalization
  • HQ-Subsidiary differences
  • Subsidiary performance

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:

  • Drawbacks: costs, complexity, uncertainty
  • Benefit: better decision-making (psychic distance paradox

Impact on key MNC decision à skewed focus on cultural distance

Higher the distance:

  • Lower the FDI
  • Lower the market attractiveness
  • Lower the research commitment or ownership
  • Lower the knowledge transfer or willingness to transfer knowledge
  • Lower the ability of HQ to make sense of the knowledge
  • Lower the ability of the HQ to monitor or control the activities of the subsidiary
  • Lower the subsidiary performance

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:

  • Gaining legitimacy (fit in)
  • Be unique (stand out)

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:

  • Show how the size, role and importance of the corporate HQ varies across firms
  • CHQ has three main roles: administrative, loss preventive and entrepreneurial
  • Corporate strategy is the key determinant

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:

  • How should MNCs manage their subsidiaries à because subsidiaries have more roles (previous only one role) some need more autonomy then others
  • Different roles and functions of subsidiaries
  • Subsidiaries are taking on advanced roles in MNC’S making it challenging to manage subsidiaries

  • Role of subsidiary can change over time à strategic assets not only receiving knowledge, however it is creating knowledge
  • Main distinction, is it creating knowledge are using already existing knowledge
  • Knowledge only usable for 1 product or for everything is also one thing to keep in mind

Key findings: