The influence of regionalization and psychic distance on the direction of Australian exports

International business research has identified separately two distinct influences on the direction of firm internationalisation. One of those influences is psychic distance, the other is regionalisation. This paper sets out to test the influences of regionalisation and psychic distance on the direction of Australian merchandise exports. The paper applies a quantitative methodology using a multiple regression model on a large, purposively compiled data set. Unlike most previous outward internationalisation studies, which use the firm as the unit of analysis, this paper uses aggregated Australian export values by country destination and export category over an extended time period, 1990 to 2004. The findings show that regionalisation is the dominant influence on the direction of Australian merchandise exports. This has important trade policy implications for Australian state and federal governments, related export promotion agencies and for managers of Australian firms, as well as for international business researchers generally.

Examining the role of networking capability in small and medium firm internationalization

While research on SME internationalization has increased, there remains a lack of relevant theory on the SME internationalization process. The literature reports that small firms overcome their resource poverty-based constraints to internationalization by developing network relationships. Networking enables SMEs to acquire much needed internationalization process knowledge, and knowledge for the development of innovative products and services for this internationalization. However, networking activity has not yet been conceptualized and measured as a competitive capability in internationalization research. Drawing on the capability-based theory of competitive strategy, this paper conjectures that internationally entrepreneurial SMEs build and nurture distinctive networking capabilities, enabling them to acquire new knowledge. These learning capabilities enable them to pursue innovation thereby facilitating nternationalization. Data from Australian firms largely supports the conceptual framework. Implications for theory and practice are presented.

The knowledge transfer anomaly

Knowledge transfer between units within MNC’s and between independent organisations involved in international business is an important element of performance. Researchers have shown that generally cultural differences place difficulties in the way of both information and knowledge transfer across national borders, both within MNC’s and across organisations. This study examines the knowledge transfer process between different cultural groups in a particular setting and concludes that in this situation cultural differences do not hinder knowledge transfer. Explanations are provided for this anomaly and implications for international business managers are drawn.

Globalisation and connectedness: A network approach to international business

There have been recent calls for the field of International Business to retool its routines by becoming genuinely interdisciplinary. This paper takes such an approach by using recent advances in the fields of evolutionary economics and applying them to IB. Evolutionary economists are now viewing the economy as an actual network. Consequently, one the key analytical tools in this approach is network analysis. Some of the basic methods in network analysis are reviewed. The paper then looks at how using these tools might be of use in IB studies. In particular, it outlines fruitful research paths in the areas of globalisation and regionalisation, and the measurement of performance in multi-national firms and alliances. In each case, propositions are put forward which can be analytically tested with the use of network analysis. The paper concludes with a brief outline of a research agenda which utilises this approach in International Business studies.

Linking job insecurity to negative decision making: The mediating role of job tension

Job insecurity has increased markedly in the developed economies of the world (Gray, 2002). The effects of job insecurity on individual employees and on organisational outcomes, however, are controversial. For instance, Greenhalgh and Rosenblatt (1984) point out that job insecurity can result in increased work effort, while Dekker and Schaufeli, (1995) argue that insecurity leads to stress and decreased performance. In this paper, we outline a study examining the indirect impact of job insecurity on decision-making, via job-related tension. Based on a web survey involving 217 participants, we found that job insecurity indirectly increased the adoption of negative decision-making strategies by increasing employees’ level of job-related tension. Limitations and implications for theory and managers are also discussed.