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2012 | Book

Introduction Read chapter Read first chapter

Internationalisation and Mode Switching

Performance, Strategy and Timing

Author: Uwe Sachse

Publisher: Gabler Verlag

Part of: Springer Professional "Wirtschaft+Technik" , Springer Professional "Technik" , Springer Professional "Wirtschaft"

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About this book

Managing an international operation is seen by many as one of the most challenging activities in an enterprise. Uwe Sachse offers substantial answers to the question of how companies behave after they have entered a particular foreign market. The results of the empirical study show that the mode switch is an important option for improving performance in foreign markets. Uwe Sachse shows that, over the duration of foreign business activity, companies pursue characteristic internationalisation pathways through their choice of mode.

Table of Contents

Frontmatter
Chapter 1. Introduction
Abstract
Alongside their domestic market, many companies are increasingly active in foreign markets and expand their business through internationalisation. The internationalisation of companies is a phenomenon which has long been empirically assessable and which has clear effects on the total performance of a company. The estimated share of export of the Gross Domestic Product (GDP), for 2007 (The World Bank 2010), was 12.1% in the U.S.; in Great Britain 26.4%; in France 26.5%; in China 39.7% and in Germany as much as 46.9%. Companies in countries with developed export orientation often present export shares (percentage of foreign turnover against the total turnover) of over 50% and more. For example, the export share of the German engineering federation for 2009 was over 70%. The type and manner of foreign operation has shown to be particularly critical to success in foreign business (Thiel 2007): in terms of the market operation, e.g. through partnerships with distributors, international license agreements, management contracts, local sales companies or subsidiaries in the foreign market.
Uwe Sachse
Chapter 2. Theoretical framework of internationalisation process and switching foreign operation modes
Abstract
The emphasis of this chapter is a comprehensive review of the literature at three theoretical levels: internationalisation research, research on mode switching and research on decision-making behaviour tied to mode switching. These partial theories are primarily presented and discussed in relation to their contribution to explaining strategy and management in the internationalisation process and the behaviour of firms following their international market entries.
Uwe Sachse
Chapter 3. Specifying the research questions and deriving the hypothetical points of emphasis
Abstract
In the previous chapter, the literature review was undertaken with a focus on the three theoretical research levels: internationalisation, mode switching and decision-making behaviour tied to mode switching. Based on the literature review, a conceptual research model on decision making in foreign mode switching was developed (Chapter 2.7.3). This forms the foundation for formulation of the research questions and propositions in this chapter. Points of emphasis are mode switching and performance, factors influencing mode switching, the decision process, timing issues and aspects of mode strategy. First the detailed research questions will be presented. These refer to previous literature on the subject and the aspect of associations between individual factors, typologies and processes in the switch of foreign operation mode. Based on the assumption that internationally active firms present a certain number of efficient behavioural modes after market entry, further assumptions (propositions) will then be formulated for the sub-elements of the study subject. These propositions will then be more concretely defined based on the assessment of the qualitative results in Chapter 6.5 and transferred into research hypotheses.
Uwe Sachse
Chapter 4. Methodology
Abstract
The preceding chapters reviewed the literature on the topic and developed a theoretical framework of mode switch decisions. Based on the literature review, research questions were identified and propositions about different aspects of foreign operation mode were derived to guide this research.
Uwe Sachse
Chapter 5. Presentation and analysis of qualitative data on mode switching behaviour
Abstract
In the previous chapter, it was shown with which research methodology the problem of the foreign mode switch can be explored. The reason behind the decision for a quantitative and qualitative method mix was explained and approaches of other researchers with regard to the study subject were discussed. This allows transparency of the research sections, the most important measurement criteria, the measurement apparatus and possible limiting factors.
Uwe Sachse
Chapter 6. Interpretation of qualitative data analysis on mode switching behaviour
Abstract
In the last chapter, the results of the exploratory interviews were given. In addition to the most important influencing factors, the characteristic behavioural and decision-making processes were documented and discussed. These results create the foundation for the following discussion, typologisation and systematisation of the identified characteristics tied to mode switching. First the decision process is developed and structured on the basis of the results in Chapter 5.2.. Then the various decision-making- and development possibilities are brought into a strategic context with consideration of the qualitative results and the theoretical status quo analysis (Chapter 2.7.4.8). From this, a strategic profile of the foreign mode switch is derived. The identified behaviour patterns are then typologised into seven groups of characteristic decision-making patterns and management styles. Finally, the assessed mode strategies and aspects from Chapter 5.2.7 and 5.2.8 are integrated in a conceptual organisation framework of reference. The resulting pathways are discussed. The chapter closes with the formulation of hypotheses which will be subject of the quantitative analysis in the following chapter.
Uwe Sachse
Chapter 7. Presentation of quantitative research data – Exploration of survey
Abstract
In the previous two chapters, the results and interpretation of the explorative interviews on foreign-operation management are presented. With consideration of the qualitative findings, the hypotheses were derived (see Chapter: 6.5) as a basis for the theoretical explanatory model. To evaluate them, comprehensive information has been gathered with the use of a questionnaire pertaining to the behaviour of firms in the management of foreign operations. This information can now be presented, discussed and interpreted.
Uwe Sachse
Chapter 8. Survey Results on Mode Switching
Abstract
In the previous chapter, the sample firms were comprehensively described with regard to their strategy and the management of their foreign business. The five clusters which are identified show the preferences in decision-making behaviour, the strategy of market operation and the turnover significance. This creates sufficient transparency of the sample's structure.
Uwe Sachse
Chapter 9. Core results, Limitations and Implications
Abstract
Internationalisation is an important strategic option for the further development of firms. Many firms are already active in foreign markets and have successfully managed market entries. Analyses show, however, that the further development of foreign operation modes have been strongly neglected to date. The few approaches and theories on this research subject are predominantly of conceptual nature and the few empirical studies can not yet supply a uniform theoretical construct.
Uwe Sachse
Backmatter
Metadata
Title
Internationalisation and Mode Switching
Author
Uwe Sachse
Copyright Year
2012
Publisher
Gabler Verlag
Electronic ISBN
978-3-8349-6942-2
Print ISBN
978-3-8349-3130-6
DOI
https://doi.org/10.1007/978-3-8349-6942-2

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