Barriers to Service-sector SME Internationalization in the EU Business Environment

The service sector in the global world is constantly growing: in Europe, they account currently approximately for 70 per cent of the total economy. Yet service internationalization is rather a new phenomenon: services have been traditionally seen as local entities, which also explains why research on service internationalization has properly begun only few decades ago. Even though the Single European Market allows free service movement between Member States, services do not move as actively as desired: approximately only one fifth of services are involved in cross-border trade. Therefore, the main purpose of this thesis is to analyze the barriers to service-sector SME internationalization in the EU business environment. To address the research purpose, the internationalization of service-sector SMEs in the EU area is first described and thereafter, the barriers to service-sector SME internationalization in the European context are mapped and analyzed from intra- and extra-firm perspectives. In order to understand the topic area and the phenomenon, a short glance is first taken into Europe as a business environment for service industries: the market characteristics and benefits of the common free trade area for service industries are described. Also earlier literature on service internationalization and barriers to international service trade are discussed. Due to low previous research activity on barriers specifically to international service trade, the discussion is improved by presenting general findings of barriers to SME internationalization. This research is conducted with qualitative methods: there is only a limited amount of previous research and qualitative methods provide a way of gathering in-depth information and reaching understanding from respondents’ perspectives. The evidence presented in the study was collected through six semi-structured interviews with six different small or medium sized international service firm representatives that all had the first-hand knowledge regarding their company’s process of delivering services from home market to other European countries. The results of the study provide a detailed description and analysis of intra- and extra-firm barriers to service-sector SME internationalization in the context of EU and indicate that in general, internal firm-specific barriers have a greater impact in determining firm’s possibilities to be engaged in cross-border service trade – external barriers played a smaller role. What might explain these results is that first of all, the study has full focus on service firms of smaller size and internal barriers tend to be particularly effective to SMEs as their resources, skills and capabilities are often limited, which limits internationalization possibilities. Second, the results may indicate that EU’s internal market and the free trade concept function quite well from service firms’ perspective, and the low service movement rate may be rather caused by firm’s own competences and resource-related difficulties than directly by flaws in the market. The results complete earlier literature and provide new and more detailed knowledge of barriers to cross-border service trade in the context of Europe. They also indicate that service internationalization should be observed separately from internationalization of traditional manufacturing firms due to unique service-specific characteristics. The findings of this study are particularly beneficial for small or medium sized service firm managers as it provides knowledge of delivering services across borders in Europe and of barriers that relate to that process.

The internationalization of Business Studies : a comparative framework between the European Higher Education System and the Chinese one. 'La internacionalización de las Ciencias Empresariales : un marco comparativo entre el Sistema Europeo de Educación Superior y el Chino'.

Resumen basado en el de la publicación

A victim of its own success: Internationalization, neoliberalism, and organizational involution at the Business Council of Australia

The focus of this article is on the Business Council of Australia (BCA), an association of the CEOs of the 100 or so largest companies operating in Australia. Since its inception the BCA has been an influential supporter of largely successful efforts to neoliberalize and internationalize the Australian economy. Running in parallel with these developments, however, the BCA has moved from being a "somewhat strong" to a relatively weak policy organization. This article argues these two trends are causally related. Neoliberal-inspired economic restructuring and economic internationalization have weakened the "logic of membership" and the "logic of influence" of the BCA, leading to a process of organizational involution. Furthermore, potential offsets to what I describe as the organizational predations of neoliberalism and internationalization - especially via a willingness or capacity to forge supportive or mutualistic relations with the state - have not been realized.

Internationalization in a business school:co-existing and entwined professional and organizational narratives

This empirical paper adopts a narrative approach to explain how a strategic goal of internationalization within a UK business school developed over a three year period and in particular how two conflicting institutional logics - a market logic and a professional logic - were given meaning and played out within a specific organizational context. The paper is in four parts. First, the theoretical framework explains the business school as characteristic of a professional organization, with a professional academic workforce, ambiguous strategic goals and multiple competing but legitimate demands. We then frame our methodological approach of narrative as a means of understanding how professional actors are co-opted into enabling organizational goals, even where these are perceived as antithetical to professional interests. We do this by showing how actors within organizations that exist with multiple, potentially competing institutional logics draw upon those logics and embed them in narratives to give meaning to their actions. Second, the research design, which followed the pursuit of an internationalization goal within a UK business school over three years, based on a dataset of three rounds of interviews, documentary analysis and meeting observations is explained, showing how we used a narrative approach for analysis. Third the results are presented as a series of co-existing and entwined narratives: organizational/managerial narratives, professional narratives of resistance, and professional narratives of engagement. Finally our findings show that narrative is a useful theoretical lens for explaining how multiple, ambiguous and conflicting strategic goals within professional organizations may coexist, enabling the organization to act both as a collective unit and also to fulfil the sometimes contradictory professional interests of its constituents. These findings contribute to understanding about strategy in professional organizations and also to narrative theory by showing how organizations may comprise multiple, entwined narratives, in which actors change roles according to their varying interests in the 'central' narrative.

Planning and evaluation of Business English course in compliance with internationalization in Taiwan: A case study of Tainan Women's College of Arts & Technology

In compliance with the economic internationalization movement and the development of Asia-Pacific Regional Operation Center (APROC) in Taiwan, international business has become more and more important. To sustain favorable trade balances every year and the promotion of APROC in Taiwan, more and more talent with knowledge and skills of Business English are needed. As a consequence, it is necessary to make Business English curriculum appropriate to meet the emerging needs.^ Two groups, experimental and control, received the revised or traditional Business English course to answer the question, "Does the Business English curriculum at Tainan Woman's College of Arts & Technology (TWCAT) meet the needs of students?" Ninety-five subjects were randomly selected from the commercial departments at TWCAT and then randomly assigned to the two groups. In addition, the Business English scores of the subjects' previous semester were collected and analyzed to justify the random selection and assignment. The finding was that their initial equivalence was proved.^ A questionnaire for students and another one for the business community were administered to facilitate data collection and analysis. The results of the questionnaires were used to modify the curriculum content of Business English.^ A final-term examination was given to the subjects at the end of the pilot study of Business English in early May of 1998. The resulting scores of the examination were used to determine if there was a significant difference in learning achievement between the students of the two groups.^ Using Independent Samples Test, significant results indicated that the experimental group had higher level of learning Business English than the control group. The finding supports the hypothesis of this study.^ Recommendations based on these results are that the revised curriculum be adapted and used by TWCAT because it better meets student needs. ^

Assessing the impact of business group diversification on the internationalization of their affiliates: The case of Latin American firms

This dissertation explored the capacity of business group diversification to generate value to their affiliates in an institutional environment characterized by the adoption of structural pro-market reforms. In particular, the three empirical essays explored the impact of business group diversification on the internationalization process of their affiliates. ^ The first essay examined the direct effect of business group diversification on firm performance and its moderating effect on the multinationality-performance relationship. It further explored whether such moderating effect varies depending upon whether the focal affiliate is a manufacturing or service firm. The findings suggested that the benefits of business group diversification on firm performance have a threshold, that those benefits are significant at earlier stages of internationalization and that these benefits are stronger for service firms. ^ The second essay studied the capacity of business group diversification to ameliorate the negative effects of the added complexity faced by its affiliates when they internationalized. The essay explored this capacity in different dimensions of international complexity. The results indicated that business group diversification effectively ameliorated the effects of the added international complexity. This positive effect is stronger in the institutional voids rather than the societal complexity dimension. In the former dimension, diversified business groups can use both their non-market resources and previous experience to ameliorate the effects of complexity on firm performance. ^ The last essay explored whether the benefits of business group diversification on the scope-performance relationship varies depending on the level of development of the network of subsidiaries and the region of operation of the focal firm. The results suggested that the benefits of business group diversification are location bound within the region but that they are not related to the level of development of the targeted countries. ^ The three essays use longitudinal analyses on a sample of Latin American firms to test the hypotheses. While the first essay used multilevel models and fix effects models, the last two essays used exclusively fix effects models to assess the impact of business group diversification. In conclusion, this dissertation aimed to explain the capacity of business group diversification to generate value under conditions of institutional change.^

BUSINESS NETWORKS IN E-COMMERCE INTERNATIONALIZATION –Two Finnish Companies Targeting Russia

With the proliferation of Internet, online shopping has become an increasingly essential part of global economy and thus, increasingly important field of research. While the internationalization process of a company has for long been in the focus of academic research, internationalization of e-commerce is a much newer field of study. The earlier empirical research has amply pointed out the difficulties of traditional internationalization models to explain the internationalization process of e-commerce companies. Conversely, business networks have been argued to play a major role in the e-commerce internationalization. The purpose of this study is to study how business networks influence the internationalization process of e-commerce companies. Conducted as a case study, this research studies the internationalization process of two Finnish e-commerce companies, Hong Kong and Hifi Studio, into possibly one of the most booming online markets - Russia. The empirical findings of the study concur with the earlier literature. The observed internationalization process differs from the assumptions of traditional international business models, and business networks are found influential for the process. However, the behavior of the two studied organizations is observed more independent than the network view to internationalization presumes. The trigger to internationalize rises from within the organizations and market potential is the primary explanation for selection of target markets. No network relationships were found to have an effect on foreign market selection, nor selection of mode of operations. This study indicates that exploring foreign markets is actually about investing in specific relationships within a business network, rather than overcoming economic, institutional, and cultural barriers. Companies utilize a wide array of relationships in their internationalization process and may effectively overcome disadvantages of operating in a foreign market by adopting partnerships with correct partners. However, building and maintaining operational business relationships is a demanding process, and organizations should prefer quality over quantity in their partner selection. Moreover, relationships where the focal party possess significant influence and leverage over other actor should be favored. Lastly, relationships need to be continuously evaluated and assessed in comparison with strategic business goals. Ultimately, e-commerce can be considered a new, low-risk, cost-effective, and relationship-oriented internationalization method, suitable especially in volatile market conditions as Russia today. This revolutionary new mode of international business activity calls for more profound focus of business managers and academia alike, as its weight on global trade continues to grow.

Information internalization and hurdle rates in small and medium enterprise internationalization

We investigate the role of information in the internationalization of small and medium enterprises (SMEs). Information internalization is fundamentally antecedent to SME internationalization and is being facilitated increasingly by recent important trends. We offer a conceptual explanation and related propositions on information internalization, emphasizing hurdle rate theory for ascertaining the acceptability of firms' internationalization projects.

The Internationalization Process as Generator Element of Dynamic Capacities: the case of WEG in Argentina and China

The objective of he article is to research the dynamic capacities developed and used by WEG in its internationalization process and to explain how these capacities help the company defends and supports competitive advantage. The article presents an exploratory study of the internationalization process of WEG in Argentina and China. This article has as analysis approach the dynamic capacities, contributes to the literature of international management in two aspects. First, it adds the analytical look of the internationalization based on dynamic capacities that are still well restricted. Second, when working the dynamic capacities as central element of the analysis of the internationalization process, it Proposes one framework of integrative analysis of the economic and behavioral theories that are used to explain the process of companies`-internationalization, although they are dealt independently and sometimes antagonistic way. The result shows as the dynamic capacities are articulated in the base of WEG in its process of internationalization for Argentina and the subsequent movement for China. The developed dynamic capacities in Argentina were acquired for the Brazilian headquarter and could have been applied in the process of internationalization for China. However, a more complex organizational structure cannot be identified where the inter-subsidiary relationships could share dynamic capacities as proposed in framework.

The Brazilian Business World: the difficult adaptation to globalization

The article deals with the internationalization of Brazilian businesses in the current decade. In the 1990s, Brazil embraced economic neoliberalism and promoted a huge opening up of its economy. At that time, Brazilian companies had to adapt rapidly. Twenty years later, the country has reinforced its presence in Latin America and has ensured a better position in the global markets, especially by through agricultural exports.

INTERNATIONALIZATION OF STATE-OWNED ENTERPRISES THROUGH FOREIGN DIRECT INVESTMENT

ABSTRACT State-owned enterprises (SOEs) are created to focus on domestic needs, and yet recent evidence points to increasing outward foreign direct investment by SOEs. Existing International Business (IB) theories focus on efficiency-based motives for internationalization; therefore, they do not fully capture SOEs' internalization dynamics, which are driven largely by political factors and social welfare considerations. We integrate public management and IB theories to develop propositions that combine these questions: why SOEs internationalize; what are their motivations; and what are the main managerial outcomes of SOEs' internationalization. Our findings suggest that SOEs display little hesitancy in entering international markets, and that SOE international expansion is not contradictory with the goals of state-ownership if the purpose is to adjust the company to changing institutional environments both in the domestic and international markets. Our propositions about SOE internationalization are based on an in-depth case study of the outward foreign direct investment conducted by Brazil's Petrobras over the past three decades.