Forty years after the publication of the original Uppsala Model, we revisit the empirical observations that inspired its conceptual development. The empirical evidence, we suggest, invites the ...formulation of an alternative and complementary model of the internationalization process of the firm, one that we have named the 'Casino Model' of internationalization. The Casino Model uncovers a number of new research issues pertaining to internationalization and to the nature of strategic decision-making under conditions of environmental uncertainty and partial ignorance.
This study examines the effects of family involvement on international market entry. Bridging theories of interorganizational imitation with the notion of socioemotional wealth protection, we argue ...that family-managed firms are more likely to act as “intuitive statisticians,” using the internationalization outcomes of industry peers to determine when to internationalize. An event history analysis of 2427 manufacturing firms supports this position. Family-managed firms’ likelihood to internationalize increases as prior entrants’ performance mean and variance increase. Ultimately, our study demonstrates that this imitation strategy enables family-managed firms to reduce risk and endure longer in broached international markets.
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BFBNIB, FZAB, GIS, IJS, KILJ, NUK, OILJ, SAZU, SBCE, SBMB, UKNU, UL, UM, UPUK
This article reviews and critically assesses the large and diverse literature on top management teams (TMTs) that has focused on international business (IB) issues. We apply an organizing framework ...that centers around four key elements of TMTs – TMT composition, structure, processes, and governance – and the most commonly studied IB-related choices and outcomes. This framework allows us to synthesize the contributions of the literature on TMTs in IB and identify opportunities for future research. The contributions of our review are threefold. First, we offer a roadmap for navigating the large and diverse literature on TMTs in IB. Second, we provide a systematic and critical evaluation of the key empirical and theoretical developments in this literature. Third, we highlight opportunities for future research to make theoretical and empirical advancements in each of the areas of our organizing framework. In these future research opportunities, we draw particular attention to the need to further contextualize TMT research in IB by proposing opportunities to more systematically incorporate the unique nature of the MNE and the external environment in which the MNE operates.
In China, the population is rapidly ageing and the capacity of the system that cares for older people is increasingly a concern. In this Review, we provide a profile of the long-term care system and ...policy landscape in China. The long-term care system is characterised by rapid growth of the residential care sector, slow development of home and community-based services, and increasing involvement of the private sector. The long-term care workforce shortage and weak quality assurance are concerning. Public long-term care financing is minimal and largely limited to supporting welfare recipients and subsidising the construction of residential care beds and operating costs. China is piloting social insurance long-term care financing models and, concurrently, programmes for integrating health care and long-term care services in selected settings across the country; the effectiveness and sustainability of these pilots remain to be seen. Informed by international long-term care experiences, we offer policy recommendations to strengthen the evolving care system for older people in China.
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GEOZS, IJS, IMTLJ, KILJ, KISLJ, NLZOH, NUK, OILJ, PNG, SAZU, SBCE, SBJE, UILJ, UL, UM, UPCLJ, UPUK, ZAGLJ, ZRSKP
25.
Quality, Pricing, and Release Time Feng, Haiyang; Jiang, Zhengrui; Liu, Dengpan
MIS quarterly,
03/2018, Volume:
42, Issue:
1
Journal Article
Peer reviewed
As a new software licensing model, software-as-a-service (SaaS) is gaining tremendous popularity across the globe. In this study, we investigate the competition between a new entrant and an incumbent ...in an SaaS market, and derive the optimal market entry strategy for the new entrant. One interesting finding is that, when its product quality is significantly lower than that of the incumbent, the new entrant should adopt an instant-release strategy (i.e., releasing its product at the start of the planning horizon). If the initial quality gap of the two products is small, the new entrant is better off adopting a late-release strategy (i.e., deferring the release of the new product until its quality surpasses that of the existing product). We also find that instant-release and late-release are essentially low-quality/low-price and high-quality/high-price strategies, respectively. In addition, we explore the scenario where the two competing products are partially compatible, and characterize the impact of asymmetric incompatibility on the two vendors’ market strategies at equilibrium. We find that the new entrant’s zero-profit region expands as the level of incompatibility between the two competing products increases. Moreover, if the new entrant adopts the instant-release strategy, its profit decreases with the level of incompatibility. When the level of incompatibility is sufficiently high, the instant-release strategy may not be viable for the new entrant. On the other hand, if the new entrant adopts the late-release strategy, its profit increases with the level of incompatibility from its product to the incumbent’s, but decreases with the level of incompatibility in the other direction.
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BFBNIB, CEKLJ, IZUM, KILJ, NMLJ, NUK, PILJ, PNG, SAZU, UL, UM, UPUK
Research Summary
This paper studies the impact of platform‐owner entry threat on complementors in platform‐based markets. We examine how app developers on the Android mobile platform adjust ...innovation efforts (rate and direction) and value‐capture strategies in response to the threat of Google's entry into their markets. We find that after Google's entry threat increases, affected developers reduce innovation and raise the prices for the affected apps. However, their incentives to innovate are not completely suppressed; rather, they shift innovation to unaffected and new apps. Given that many apps already offer similar features, Google's entry threat may thus reduce wasteful development efforts. We discuss the implications of these results for platform owners, complementors, and policy makers.
Managerial Summary
We examine one prevalent source of conflict: platform owners' entry into complementary product spaces. We show that app developers on Google's Android system are strategic and nimble actors. They respond to the threat of Google's entry by adjusting both value‐creation and value‐capture strategies. We also show that platform owners could use direct entry to shape innovation directions and encourage variety of complements. Overall, on the one hand, Google's entry may have pushed complementors into other areas (which might be less lucrative) and strengthened its position in the mobile market. On the other hand, the entry may have reduced wasteful production efforts in the development of redundant applications. The overall welfare implication is thus ambiguous.
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BFBNIB, FZAB, GIS, IJS, KILJ, NLZOH, NUK, OILJ, SAZU, SBCE, SBMB, UL, UM, UPUK
A conceptual framework is proposed to examine value creation through the evolution of business model themes. A critical assessment of the literature on business models, business model themes, and ...their evolution is presented. This assessment highlights the fact that business model themes are typically theorized as being static. Instead, the framework presented here characterizes business models and the business model themes of value creation as co-evolving within an evolving industry. The framework provides a set of propositions that specify how firms can create value by entering an industry, reacting to imitators, and co-evolving with product market strategies and with environmental factors. This study contributes to the literature on value creation through business model themes.
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GEOZS, IJS, IMTLJ, KILJ, KISLJ, NLZOH, NUK, OILJ, PNG, SAZU, SBCE, SBJE, UILJ, UL, UM, UPCLJ, UPUK, ZAGLJ, ZRSKP
Electrocatalytic transformation of carbon dioxide (CO
) and water into chemical feedstocks offers the potential to reduce carbon emissions by shifting the chemical industry away from fossil fuel ...dependence. We provide a technoeconomic and carbon emission analysis of possible products, offering targets that would need to be met for economically compelling industrial implementation to be achieved. We also provide a comparison of the projected costs and CO
emissions across electrocatalytic, biocatalytic, and fossil fuel-derived production of chemical feedstocks. We find that for electrosynthesis to become competitive with fossil fuel-derived feedstocks, electrical-to-chemical conversion efficiencies need to reach at least 60%, and renewable electricity prices need to fall below 4 cents per kilowatt-hour. We discuss the possibility of combining electro- and biocatalytic processes, using sequential upgrading of CO
as a representative case. We describe the technical challenges and economic barriers to marketable electrosynthesized chemicals.
Both Anderson and Gatignon and the Uppsala internationalization model see the initial mode of foreign market entry and subsequent modes of operation as unilaterally determined by multinational ...enterprises (MNEs) arbitraging control and risk and increasing their commitment as they gain experience in the target market. OLI and internalization models do recognize that foreign market entry requires the bundling of MNE and complementary local assets, which they call location or country-specific advantages, but implicitly assume that those assets are freely accessible to MNEs. In contrast to both of these MNE-centric views, I explicitly consider the transactional characteristics of complementary local assets and model foreign market entry as the optimal assignment of equity between their owners and MNEs. By looking at the relative efficiency of the different markets in which MNE and complementary local assets are traded, and at how these two categories of assets match, I am able to predict whether equity will be held by MNEs or by local firms, or shared between them, and whether MNEs will enter through greenfields, brownfields, or acquistions. The bundling model I propose has interesting implications for the evolution of the MNE footprint in host countries, and for the reasons behind the emergence of Dragon MNEs.
The objective of this article is to examine the relevant dimensions of distance for foreign market entry mode choice. Based on a sample of 203 interfirm linkages formed by French multinationals with ...partners across the world, we analyze the impact of four dimensions of distance on the choice between cooperative alliances and mergers-acquisitions. The findings indicate that administrative and economic distance have a significant influence on market entry mode choice, whereas the impact of cultural and geographic distance is not significant. They further highlight the important role of the host country's government effectiveness for market entry mode decisions.
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GEOZS, IJS, IMTLJ, KILJ, KISLJ, NLZOH, NUK, OILJ, PNG, SAZU, SBCE, SBJE, UILJ, UL, UM, UPCLJ, UPUK, ZAGLJ, ZRSKP
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