Summary of all articles and book of International strategy

International Strategy – Strategic Management – 2022/2023



Inhoud
Article 1.1: Why and how motives (still) matter – Benito (2015)....................................................3
Article 1.2.1: Competitive advantage of nations – Grant (1991).....................................................4
Article 1.2.2: Institutions & internationalization of US venture capital firms – Guler & Gullién
(2010).............................................................................................................................................6
Article 2.1.1: Categorizing the liability of foreignness LoF – Zhou & Guillen (2016).......................7
Article 2.1.2: Cultural distance and firm internatioanlization – Beugelsdijk et al (2018)................9
Article 2.1.3: Dimensions and dynamics of national culture – Beugelsdijk & Welzel (2018).........10
Article 2.2.1:.................................................................................................................................10
Article 2.2.2:.................................................................................................................................10
Article 3.1.1: Location versus home country advantages – Le Bas & Sierra (2002).......................11
Article 3.1.2: Multinational subsidiary evolution – Birkinshaw & Hood (1998)............................12
Article 4.1.1: The strategic nexus of offshoring and outsourcing decision – Mudambi & Venzin
(2010)...........................................................................................................................................15
Article 4.1.2: Understanding offshoring – Kedia & Mukherjee (2009)..........................................16
Article 5.1.1: Punching above their weight – Contractor (2013)...................................................19
Article 5.1.2: The dilemmas of internationalization – Bondy & Starky (2014)..............................21
Article 6.1.1: Comparative & International Corporate Governance – Aguilera & Jackson (2010).22
Article 6.1.2: Corruption from a cross-cultural perspective – Hooker (2009)...............................23
Article 7.1: Trust, Growth and Well-Being – Algan & Cahuc (2014)..............................................24
Book Chapter 5: Combining firm-specific advantages and location advantages in multinational
network........................................................................................................................................25
Book Chapter 6: International innovation....................................................................................27
Book Chapter 7: International sourcing and production...............................................................29
Book chapter 14: The role of emerging economies......................................................................30
Book chapter 15a: International strategies of corporate social responsibility..............................31
Week 1..............................................................................................................................................33
1. Knowledge clip 1 -Organizational Matters & Introduction to International Strategy................33
1. Knowledge clip 2 – Conceptual foundations of international business strategy.......................34
2. Knowledge clip 1 – Home and Host Country Location Advantages...........................................37
2. Knowledge clip 2 – Linking home and host country factors – distance.....................................39
Week 2..............................................................................................................................................40
1. Knowledge clip 1: National Culture, Cultural distance and international business...................40
1. Knowledge clip 2: Institutions and institutional distance..........................................................43
2. Knowledge clip 1: International entry modes...........................................................................44
2. Knowledge clip 2: International entry mode theories...............................................................47

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,International Strategy – Strategic Management – 2022/2023


Week 3..............................................................................................................................................49
Knowledge clip 1: Roles of subsidiaries........................................................................................49
Knowledge clip 2: International innovation..................................................................................50
Q&A lecture 5...............................................................................................................................51
Week 4..............................................................................................................................................52
Knowledge clip 1: International sourcing and production............................................................52
Knowledge clip 2: Case example Flextronic..................................................................................53
Week 5..............................................................................................................................................53
Knowledge clip 1: Emerging economies.......................................................................................53
Knowledge clip 2: Emerging economy MNEs................................................................................54
Knowledge clip 3: International corporate social responsibility...................................................55
Week 6..............................................................................................................................................56
Knowledge clip 1: Cross cultural aspects of corporate governance – Aguilera & Jackson (2010). 56
Knowledge clip 2: Business ethics from a cross cultural perspective – Hooker (2009).................58
Week 7..............................................................................................................................................59
Knowledge clip 1 & 2: Trust, Growth and Well-Being – Algan & Cahuc (2014).............................59




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, International Strategy – Strategic Management – 2022/2023


Article 1.1: Why and how motives (still) matter – Benito (2015)
A company’s internationalization is inextricably (onlosmakelijk) linked to the motives underlying it.

Four motives of internationalization (Dunning, 1993):
- Market seeking – find customers
- Efficiency seeking – lower costs
- Resource seeking – resources not available or not obtainable at home
- (Strategic) asset seeking – tangible or intangible assets
These motives are called  Foreign Direct Investment (FDI) motives.

Success in pursuing new market opportunities measured in volume sold / sales growth / market share.
Efficiency related performance measured in cost-profit margins / productivity.
Resource performance measured in: input costs / price costs / margins / stability-relibaility of supplies.
Strategic asset performance measured in: new patents / intellectual property rights / new products.

Market seeking
 Key location factor  size of the market / buying power of the consumer / etc.
 How are you going abroad  setting up a subsidiary to protect the brand?
 What key activities are you going to internationalize  marketing and sales / market share




Uppsala internationalization process model
Originally formulated as a theory of how firms expand abroad to pursue new market opportunities.




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