David J. Boggs

Internationalization and Performance: Traditional Measures and Their Decomposition

Previous empirical results on the relationship between internationalization and firm performance have been mixed. Both monotonic and curvilinear relationships have been reported. Most recent studies have focused on different types of curvilinear relationships, such as inverted Ushaped, standard U‐shaped, and multiple waves. This paper utilizes a more current sample of firms than prior studies have used and decomposes traditional financial performance measures, applying two different measures of degree of internationalization, country scope and foreign sales as a percent of total sales (FSTS), to measure the effects on financial performance of different degrees of internationalization. Several financial performance measures, including traditional indexes (ROE and ROA) and a decomposition of traditional ones (Profit Margin, Total Asset Turnover), are examined.

Corporate branding versus product branding in emerging markets

Purpose – To build a conceptual framework for the development of branding strategy from the pint of view of a Western firm entering a market in a developing economy.Design/methodology/approach – An extensive literature review brings together two research streams, market entry and branding strategy, with particular reference to corporate branding versus product branding.Findings – The choice of branding strategy is determined in the conditions under study by five antecedent factors and three moderating variables, which are expressed as a visual model and eight propositions.Practical implications – In a rapidly developing world, this framework and the literature review from which it is derived offer applicable marketing intelligence to planners of branding strategies for international markets. The eight propositions suggest fruitful directions for further academic research.Originality/value – Draws together two streams within the marketing literature in an original way, and offers a framework for the concep...

Order-of-Entry Effects for Service Firms in Developing Markets: An Examination of Multinational Advertising Agencies

The internationalization process of service firms has received increased attention in recent years. Yet the question whether entry order affects firm performance for service firms in developing markets has remained unanswered. Despite lacking empirical evidence, prior research has suggested that first-mover advantages (FMAs) do not translate to service firms and developing markets. However, framed in a resource-advantage theory perspective, the authors’ empirical analysis of 379 multinational subsidiaries of advertising agencies in 43 developing markets indicates a significant relationship between entry order and firm performance. The authors also examine the moderating effects of international experience, firm size, subsidiary ownership structure, and rate of economic development to assess how late entrants can mitigate late-mover disadvantages. The authors provide empirical evidence that, contrary to recent literature, service firms do enjoy FMAs. They add to the understanding of the FMA phenomenon as well as to the broader issue of the internationalization process and performance effects for service firms.

The difficulties in using a cost leadership strategy in emerging markets

Purpose – Strategic contingency theory maintains that a successful strategy should fit the features of the environment in which it is implemented, suggesting that different strategies are required in different world markets. In contrast, Porter posited three generic strategies, and asserted that to be effective firms should consistently use only one of the three. This paper aims to address this apparent disagreement by discussing the transfer, by developed‐country multinational companies (MNCs), of a cost‐leadership strategy to emerging markets.Design/methodology/approach – Presenting theoretical arguments, based on deductive reasoning and examples reported in business publications, the authors focus on why firms from developed countries may find a cost‐leadership strategy ineffective in emerging markets. This focus on both emerging markets as a group and on the ease of the transfer of the cost‐leadership strategy fills a gap in the international management literature.Findings – It is argued that implemen...

International Business and Global Information Management Research: Toward a Cumulative Tradition

This work reviews the relationship between the disciplines of international business and global information management (GIM), examining how international business has served as a reference discipline for GIM and how GIM has contributed to the development of international business. GIM contributions are considered in terms of their findings as well as topic and approach. Based on a review of all Journal of Global Information Management (JGIM) articles since the inception of the journal, this paper identifies international business scholars that have been important to the field of GIM and some who might deserve more attention.

Franchising During Times of Economic Recession: A Longitudinal Analysis of Automotive Service Franchises

This study sheds light on how franchise companies weather periods of recession versus growth periods, based on firm-specific factors in contrast to exogenous influences over a 21-year period. Specifically, the analysis focuses on the 1984–2004 time period of franchise businesses in the automotive services sector, compiled from the Franchise Annual from 1985 through 2005. In contrast to previous studies, this investigation examines a period of 21 years, including three distinct periods of economic expansion and two periods of economic contraction. The most significant finding of this exploratory study is that generalist-type franchise systems (i.e., those that offer a broad range of automotive services) tend to have greater longevity than specialists during periods of economic recession. A related significant finding is that the number of services offered by franchisors expands and contracts in a counter-cyclical manner relative to broad economic indicators.