The outsourcing strategy of local and multinational firms: A supply base perspective

Firms outsource through connecting to local and global supply bases and making such connections produces costs of search and evaluation, which are a function of transaction characteristics and firm capabilities. We argue that firms outsource more when those costs are low. Hence, domestic subsidiaries of multinational firms, with low cost access to both local and global supply bases, outsource more than either domestic firms or foreign subsidiaries, as confirmed by evidence from a large data panel. We also propose that among foreign subsidiaries, distance from the home country co-determines search and evaluation costs such that subsidiaries from more distant countries outsource less. This is confirmed for geographic distance, but a positive effect is found for political distance and a mixed effect for cultural distance.

Mark Casson: the Entrepreneur at 30 -continued relevance?

Mark Casson's The Entrepreneur: An Economic Theory (1982) has become one of the most influential books in the field of entrepreneurship. For the first time, this article outlines its origins and summarizes its main themes. The article goes on to show how Casson's subsequent research has closely followed the research agenda he set for himself in The Entrepreneur and illustrates the continuing challenge his work presents to entrepreneurship scholars. The article is based on an interview the authors conducted with Mark Casson on the thirtieth anniversary of the book's publication. Copyright © 2014 Strategic Management Society.

Revisiting the 'modern' multinational enterprise theory: an emerging-market multinational perspective

Using Triad-based multinational enterprises as their empirical setting, influential scholars in international management uncovered key organizational characteristics needed to create globally integrated and locally responsive multinationals. They proposed a “modern” theory of multinationals' organization (Hedlund, 1994). But recently, a new generation of multinationals from emerging markets has appeared. Little is known about their organizational choices and some scholars even doubt that they leverage organizational capabilities altogether. Does the “modern” theory still hold in their case? This exploratory study of three emerging-market multinationals (EMNEs) discloses that for reasons related to their origin in emerging economies and to the competitive specificities of these economies, EMNEs approach the global and local conundrum in ways which are both similar – and vastly different – from recommendations of the “modern” theory. We inductively develop a new theory that accounts for the evolution of organizational capabilities in EMNEs to reconcile global integration and local responsiveness. We discuss its implications for the executives of both emerging and Triad-based multinationals.

Making internalization theory good for practice: the essence of Alan Rugman’s contributions to international business

This perspectives paper and its associated commentaries examine Alan Rugman's conceptual contribution to international business scholarship. Most significantly, we highlight Rugman's version of internalization theory as an approach that integrates transaction cost economics and ‘classical’ internalization theory with elements from the resource-based view, such that it is especially relevant to strategic management. In reviewing his oeuvre, we also offer observations on his ideas for ‘new internalization theory’. We classify his other novel insights into four categories: Network Multinationals; National competitiveness; Development and public policy; and Emerging Economy MNEs. This special section offers multiple views on how his work informed the larger academic debate and considers how these ideas might evolve in the longer term.

Reducing defects through organizational learning within a Housing Association environment

Housing Associations (HAs) contribute circa 20% of the UK’s housing supply. HAs are however under increasing pressure as a result of funding cuts and rent reductions. Due to the increased pressure, a number of processes are currently being reviewed by HAs, especially how they manage and learn from defects. Learning from defects is considered a useful approach to achieving defect reduction within the UK housebuilding industry. This paper contributes to our understanding of how HAs learn from defects by undertaking an initial round table discussion with key HA stakeholders as part of an ongoing collaborative research project with the National House Building Council (NHBC) to better understand how house builders and HAs learn from defects to reduce their prevalence. The initial discussion shows that defect information runs through a number of groups, both internal and external of a HA during both the defects management process and organizational learning (OL) process. Furthermore, HAs are reliant on capturing and recording defect data as the foundation for the OL process. During the OL process defect data analysis is the primary enabler to recognizing a need for a change to organizational routines. When a need for change has been recognized, new options are typically pursued to design out defects via updates to a HAs Employer’s Requirements. Proposed solutions are selected by a review board and committed to organizational routine. After implementing a change, both structured and unstructured feedback is sought to establish the change’s success. The findings from the HA discussion demonstrates that OL can achieve defect reduction within the house building sector in the UK. The paper concludes by outlining a potential ‘learning from defects model’ for the housebuilding industry as well as describing future work.

Measuring Application Availability,Usage and Performance : Implementation of EnView System

The main objective for this degree project is to implement an Application Availability Monitoring (AAM) system named Softek EnView for Fujitsu Services. The aim of implementing the AAM system is to proactively identify end user performance problems, such as application and site performance, before the actual end users experience them. No matter how well applications and sites are designed and nomatter how well they meet business requirements, they are useless to the end users if the performance is slow and/or unreliable. It is important for the customers to find out whether the end user problems are caused by the network or application malfunction. The Softek EnView was comprised of the following EnView components: Robot, Monitor, Reporter, Collector and Repository. The implemented system, however, is designed to use only some of these EnView elements: Robot, Reporter and depository. Robots can be placed at any key user location and are dedicated to customers, which means that when the number of customers increases, at the sametime the amount of Robots will increase. To make the AAM system ideal for the company to use, it was integrated with Fujitsu Services’ centralised monitoring system, BMC PATROL Enterprise Manager (PEM). That was actually the reason for deciding to drop the EnView Monitor element. After the system was fully implemented, the AAM system was ready for production. Transactions were (and are) written and deployed on Robots to simulate typical end user actions. These transactions are configured to run with certain intervals, which are defined collectively with customers. While they are driven against customers’ applicationsautomatically, transactions collect availability data and response time data all the time. In case of a failure in transactions, the robot immediately quits the transactionand writes detailed information to a log file about what went wrong and which element failed while going through an application. Then an alert is generated by a BMC PATROL Agent based on this data and is sent to the BMC PEM. Fujitsu Services’ monitoring room receives the alert, reacts to it according to the incident management process in ITIL and by alerting system specialists on critical incidents to resolve problems. As a result of the data gathered by the Robots, weekly reports, which contain detailed statistics and trend analyses of ongoing quality of IT services, is provided for the Customers.

Coffee table-böcker eller praktverk – begrepp, attityder och arbetssätt : Djupintervjuer med grafiska formgivare och förlagsanställda

Åtta semi-strukturerade djupintervjuer genomfördes i syfte att kartlägga svenska formgivares och förlagsanställdas strategiska och kreativa arbetsprocess samt olika attityder vid arbetet med praktverk och coffee table-böcker. Dessa böckers termer och definitioner diskuterades även, samt boktypens förut-sättningar och utmaningar på marknaden. I denna rapport presenteras funna teman rörande dessa tankemönster och attity-der, samt en generell beskrivning av arbetsprocessen. Produktionen av coffee table-böcker och praktverk fanns vara komplex på grund av att den involverade många personer, tog lång tid i anspråk, var kost-sam och hade relativt små vinstmarginaler vilket därmed kunde förenas med vissa risker. Respondenterna upplevde generellt arbetet som spännande, roligt och givande.Studien belyser även förekomsten av en viss diskrepans vad gäller associationerna till termerna ”coffee table-bok” och ”praktverk”. Coffee table-böcker ansågs främst av de förlagsanställda ha ett innehåll av lägre kvalitet jämfört med det hos ett praktverk.

Licenshantering av programvaror i enkommunal verksamhet : En fallstudie över licenshanteringen i Falu kommun

Forskningen visar att förändringar av informationsteknologin och en ökande anskaffning av nya programvaror har lett till underliggande problem som kan drabba heterogena programvarulicensmiljöer och stora organisationer. Underliggande problem i den stora kontexten är mjukvaruhantering. Licenshantering av programvaror är just en förgrening av det stora problemet. Stora organisationer som en kommunal verksamhet är drabbad av det här underliggande problemet på grund av komplexitet hos organisationens miljö. Att tillämpa förändringar i området programvarulicens är omöjligt utan att göra förändringar i hela den organisationsprocess som följer med det. Fallstudiens uppdrag är ett nytt omfattande område kring licenshantering av programvaror som kan vara väldigt lärorikt och en bra erfarenhet att ta del av. Uppsatsen beskriver hur en kommunal verksamhets licenshantering av programvaror ser ut och de problem som finns med den nuvarande licenshanteringsprocessen. Förarbetet med en litteraturstudie tillsammans med datagenereringsmetoderna intervjuer, dokumentstudier och observationer används för att studera fallet på djupet. Målet är att kunna ta fram de nuvarande problem som finns, analysera dem och ge rekommendation för åtgärder som det studerade fallobjektet, Falu Kommuns IT-kontor, kan använda. En rekommendation för en tydlig licenshanteringsprocessmodell anses vara ett bra akademiskt bidrag eftersom problemet med licenshanteringen av programvaror är ett generellt problem. Uppsatsens resultat är en processmodell om licenshantering av programvaror för organisationer med IT-tjänstkunder. Det är en generisk lösning som skulle kunna användas av andra kommunverksamheter och liknande organisationer.

The effects of cultural barriers on market entry strategies

The increasing interests worldwide urge researchers to examine the strategies used specifically for tackling the Chinese market. This urgency is brought forward by the fact of a low success rate of international businesses operating in China in the past twenty years. This paper identifies the fundamental barrier - cultural difference and its impact on Australia China business practices. It identifies the differences which impinge on basic decision making processes. It raises the issue of where cultural factors should be placed in organizations. It stresses that consideration of cultural differences plays an important role in the success of entering the Chinese market. Through a single case study of an Australian organisations operation in China, it is demonstrated that cultural differences should be considered at a strategic level rather than an operational level. This will allow appropriate strategies to be implemented rather than constant acijustments to strategies.

Applying a quality use of medicines framework to using essential oils in nursing practice

Nurses are increasingly incorporating complementary therapies into their practices. Aromatherapy is one of the most popular therapies. The basis of aromatherapy is essential oils, which are chemically active substances with a long history of safe traditional use and a growing evidence base to support their use in nursing care. In Australia, essential oils are classified and regulated under the same policies as conventional medicines such as the National Medicines Policy and the Quality Use of Medicines (QUM) framework applies. QUM is a framework for selecting and using medicines safely and effectively if medicines are indicated. The key elements of QUM are a systems-based approach to using medicines based on relevant evidence, partnerships, and informed client consent. Clients are placed at the centre of a QUM medication management process, which is consistent with holistic care. Applying a QUM approach to essential oil use, Quality Use of Essential Oils (QUEO), involves developing effective systems for managing essential oils from an holistic perspective that includes structured assessment and diagnostic processes to enable effective essential oil prescribing and outcome monitoring. In a QUEO approach, essential oils are integrated into the client's overall medication regimen and care plan rather than being used as ‘add-ons’. Adopting QUEO is consistent with the current national focus on the quality use of therapeutic substances, increases the profile of aromatherapy in nursing care and provides important information to guide future aromatherapy practices.

The resource-based view of strategy: application to the agricultural industry

IP a The paper examines the application of the Resource-Based View of strategy (RBV) to the Australian floral industry. Despite the RBV's successful application to research in a number of discipline areas and the formalisation of its relationship with Competitive Advantage (CA) 15 years ago, the empirical support for the benefit of the RBV and development of research constructs has been inadequate. This has been partly due to the difficulty of identifying and separating the contribution of resources. The RBV literature is now consistent in the criteria required of a resource for CA and identifies a range of empirical research objectives (e.g. the need for contextual constructs), data evaluation focuses (e.g. measuring the impact of management, process, regional and scale affects) and results objectives (such as identifying the causal structure of resources). Research was conducted in the Australian floral industry to produce supporting generalisable data and constructs for the RBV. This industry is well bounded with several strongly differentiating resources and operates in a global market environment, which is necessary for these research objectives. Six hypotheses were examined; (1) the use of resources as the input of the CA, (2) the impact of the development process on resources, (3) the impact of management control on the development of resources (4) the impact on capability of management, process, region and scale, (5) the impact of resource development maturity on the approach to resource development and (6) the possibility of evaluating individual resources according to various criteria. The data was collected using selected participant interviews, with validation of conclusions by industry experts. It was analysed using content analysis, comparative analysis and cognitive mapping. The research determined that organisations in the Australian floral industry possessed important resources including geography, skills, technology, R&D, supply chains and production costs. These contributed to four CA creating production outputs; quality, capacity, reliability and customer convenience. The research findings supported hypotheses 1, 3, 4, 5 and 6. The lack of support for the two remaining hypotheses, relating to the process of resource development, may be explained by the low resource development maturity of the industry which masks the impact of the resource development process. The results also determined that one resource could contribute to a number of CAs and that resources not meeting all of the normal RBV CA criteria could still provide a CA in an industry where few resources met all criteria. It was postulated that these resources’ contribution to competitive was not durable.

Codes of ethics in corporate Sweden

Purpose – The purpose of the study is to examine and describe the use of codes of ethics in the top 100 companies operating in the Swedish corporate sector. This paper reports on the responses of those companies that possessed a code of ethics.

Design/methodology/approach – A three-stage research procedure was used. First, a questionnaire was sent to the public relations managers of the top 100 companies operating in the Swedish corporate sector (based on revenue). Companies were asked to answer up to 29 questions and to supply a copy of their code of ethics. The second stage involved content analysis of the codes of ethics supplied by survey respondents. The third stage involved a more detailed follow-up of a smaller group of firms that appeared to be close to best practice. Findings for Stage 1 of the research are reported in this paper. The areas of questioning were: how common are codes of ethics? Who was involved in the development of these codes? What are the reasons for the codes? How are they implemented? Do companies inform internal and external publics of the codes? What are the prescribed benefits of the codes?

Findings – It would appear that business ethics has only recently become a topic of interest in corporate Sweden and that many companies are in the early stages of code development and assimilation into company policies. The incidence of codes in the population (of 100) suggested by this survey (56 per cent) is lower than a US study finding (in 1995) that over 84 per cent of comparable US companies had codes of ethics. It would appear that Sweden today lags behind the US situation of 1995. When one investigates the special measures to support the inculcation of ethical values at the organizational level, there appears to be some shortfall. The supporting measures of ethics committees, ethics training committees, ethics training, ombudsman, an ethical audit and procedures to protect whistleblowers appear to be under-utilized in companies that possess codes. This lack of utilization tends to suggest that companies in Sweden, as yet, either have not developed a high commitment to supporting business ethics in their corporations, or they may have developed other methods to support their codes in their organizations that they view are as beneficial as the traditional methods practised in other western industrial democracies.

Research limitations/implications – This research was limited to internal ethical expectations. The commitment to business ethics is usually explored in terms of internal ethical expectations, but the simultaneous consideration of the external ethical expectations in the marketplace (e.g. among suppliers and customers or other publics) is desirable. A dyadic approach considering a company's internal ethical expectations and the external ethical expectations of a company's business activities may give a more balanced and in-depth approach.

Practical implications – Evidence is now available to show that codes of ethics are well developed in many of Sweden's largest corporations: organizations that, from their responses, appear to see a diverse range of benefits in developing the area of business ethics. Companies are beginning to implement not only a code of ethics, but other complementary initiatives that reinforce the need for the culture of the organization to be ethical. Codes of ethics are perceived by organizations to have assisted them in their dealings in the marketplace and many companies use their ethical values to underpin their strategic planning process. It appears that many companies now see the formalisation of business ethics as an integral part of their commercial practices.

Originality/value – This study is the first one of its kind on codes of ethics in corporate Sweden. It will enable all sectors of Swedish business to benchmark their efforts against the major companies in the Swedish corporate sector.

Survey commentaries and analysis on Singapore biotechnology venture capital, intellectual and property regulatory law

The article presents survey commentaries and analysis on biotechnology venture capital, intellectual and property regulatory law in Singapore as of April 2006. The survey revealed that the financial sector and venture capitalists lack the ability to evaluate and understand biotechnology. Some major concerns for stakeholders are the lack of experience in the litigation of cases by Singaporean law firms and the lack of strategic management of portfolios for biomedical and pharmaceutical companies and the government. Stakeholders cited the need for Singaporean laws to be amended to accommodate developments in medical devices, herbal medicine, some biological areas and pre-clinical and clinical trials.