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Samenvatting deel 2 - Functional Issues

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Samenvatting van het boek International Business Strategy, deel 2 "Functional Issues"

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Deel 2
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October 2, 2018
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DEEL 2 FUNCTIONAL ISSUES
Chapter 6 International Innovation
Significanice
Many MNEs from icentralizing R&D -> building international NWs
 Reasons
1. Need felt for presence in knowledge and innovaton clusters (input)
2. Commercial requirement: moving quickly from inno -> market
So must integrate R&D with host country manufacturing op s

Kuemmerle
Observed internatonaliiaton of R&D by observing 2 sectors (>e companies)
 2 distinct types o R
D acioities

o home-base expooitinn site
Info from central lab -> foreign laboratory
“support manufacturing facilites in foreign countries
OR adapt standard products to the demand there”,
with “informaton fows to the foreign laboratory from the central lab at home”
 should be close to key markets & MNE’s foreign manufacturing units = rapid
adapted
 inital leadership should be “highly regarded managers from within the company”
(≈culture & systs) to forge te BiL & BuL
 Bounded ratonality problem ↓ by these labs:
↓distance home country R&D & host country manufacturing


o home base aunmentinn sites
from the foreign laboratory -> the central lab at home
eyes & ears in host country, access knowledge & research
 should be in critcallrelevant knowledge clusters to tap into innovaton
 inital leadership should be prominent local scientst
 main bounded ratonality problem: sub can’t access knowledge in foreign without
becoming an insider
 each base should interact with other R&D units, as well as manufacturing & mark g


Ideal profle foreign R&D unit leaders, instrument to knowledge
reicombination
 4 qualites
1. respected
2. able to integrate new site into company’s existng R&D network
3. Comprehensive understanding of tech trends
4. Able to overcome formal barriers

, When seeking acces to new ideas in local unis & scientic communites

Chapter 7 International Souricing & produiction ≈
FERDOW
Significanice
 Focus on key issues of locaton +, transferability of home FSA & build-up host FSA
Senior mans mindset!
 Most successful manufacturing MNEs: foreign factories = sources FSA beyond costs e.d.

 3 channes in IB, drivinn assinnment o new oreinn actory rooes:
1. ↓ internationao trade tarifs => foreign facts can be > branch plants
2. Modern manu acturinn: ↑technologically capital intensive + with complex SC
requirements
3. Shortened product oi e-cycoes: requires close linkages between knowledge,
development & producton


 ↑ attempt to ↑ conventonal, host country prodn with at least some R&D

Possible roles of foreign manufaicturing faicilities
2 parameters on which the 6 rooes were buiot:
1. Strategic purpose of the plant
= intmately related to the host country locaton +s that MNE wants to access
2. Level of distnct FSAs held by the plant
= level of FSA refers to additonal strengths added by plant itself (↑FSA home
country)


6 Specific actory rooes
1. Offshore factory
 Primarily: simply access low-cost input pf
 Output exported
 No new FSA development
 Minimal autonomy
2. Server factory
 Primarily: manufacture goods & supply a predeined ±natlreg output market
 Overcome market imperfectons (trade barriers, logistc costs)
 Some FSA development
 Relatvely little autonomylspecialiied capabilites
3. Outpost factory
≈ black hole subs (C5)
 primarily gather valuable info from advanced host country clusters (mainly input-)
 manufacturing combined with
o 1.offshore (input market driven) factory
o 2.Server (output market driven) factory
4. Source factory
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