Lawrence S. Welch

Knowledge, internationalization of the firm, and inward–outward connections

Abstract Even though outward operations such as exports and foreign investment have received most of the attention so far, the internationalization of businesses also includes activities that are inwardly oriented. Inward activities like purchases of machinery, the procurement of raw materials and semifinished goods provide opportunities for building relations with foreign actors. They also offer opportunities to learn about foreign trade techniques and ways of using various operation modes, and by active use of such knowledge companies should be in a better position to start or extend outward foreign operations. This paper presents a case study of the Norwegian company Moelven Industrier ASA and its operations in the Russian market. It shows that the creation and utilization of knowledge through inward–outward connections face many obstacles and that, in Moelvens case, the full potential of such connections was seldom realized.

The international business traveller: a neglected but strategic human resource

There has been considerable research over the past two decades into the various aspects of traditional expatriate assignments. However, this research has overlooked an important category of international operator: the international business traveller, also known popularly as globetrotter or frequent flier. In this paper, we report on the results of a study of ten Australian and Danish international business travellers (IBTs). The aim was to explore the roles and activities of IBTs and the factors, such as level of organizational support that may intervene in the performance of their roles. We conclude that IBTs often are a neglected resource, particularly in terms of skills and knowledge transfer.

Control in Less-hierarchical Multinationals: The Role of Personal Networks and Informal Communication

The principal aim of this paper is to examine the presumption that a higher degree of decentralization, accompanied by a reduction in hierarchical levels, leads to intensified and effective horizontal communication across units and organization levels. It is argued that, in fact, personal networks and informal communication within the decentralized MNC can be distorted, even damaged by the structural changes, and the informal processes may actually work against the intended communication flows. The nature of both personal networks and informal communication makes control difficult yet, given the importance, MNCs inevitably utilize a variety of approaches in an attempt to influence their operation, sometimes in a counter-productive way.

Creating Meaningful Switching Options in International Operations

Abstract By entering foreign markets through the use of local operators or intermediaries, such as licensees and distributors, companies can reduce their risk exposure and the resource demands of internationalisation. However, at a later stage, the entrant firms may want to shift to a higher control mode—perhaps a sales or production subsidiary. A difficult question, therefore, is how a company can create meaningful strategic options so as to facilitate a subsequent shift. In this article, issues surrounding the achievement of strategic flexibility in operation mode use are examined. A matrix is developed to illuminate the options of revealing or concealing future intentions regarding integration or the termination of a relationship with the foreign partner. A number of company cases are presented to illustrate the way in which these options may be created to facilitate a future shift from one operation mode to another within a foreign market.

Network development in international project marketing and the impact of external facilitation

This article reports on an experiment in external facilitation of international project marketing activity. The case involved a large, World Bank funded project in China aimed at upgrading grain storage and handling facilities. An organization was established in Australia to bring together and support efforts by Australian firms to win a share of this project. Network-building, at a number of levels both in China and Australia, emerged from the qualitative study as a critical factor in effective project marketing. External facilitation played a positive role in the network-building process.

Evolving strands of research on firm internationalization: An Australian-Nordic perspective

Peter W. Liesch is a professor at the Business School of the University of Queensland, Australia. Lawrence S. Welch and Denice E. Welch are professors at the Mt. Eliza Business School in Melbourne, Australia. Sara L. McGaughey is a senior lecturer at the School of International Business of the University of New South Wales, Australia. Bent Petersen is an associate professor in the Department of International Economics and Management of the Copenhagen Business School in Frederiksberg, Denmark. Peter Lamb is a lecturer at the School of Business of La Trobe University in Victoria, Australia.

An exploration of the information behaviour of Norwegian exporters

This article reports on the results of a survey of 221 Norwegian companies in which the nature and role of information was examined in the context of exporting and export-related activities. Amongst major findings was that Norwegian exporters place their main emphasis on informal contacts as a basis for information gathering. As sources of information, customers (external) and sales people (internal) emerged as being of particular importance. Regarding the decision-making issues for which information was sought, entry into a new market and change of agent were singled out as the most important. General information about foreign markets was ranked as the most important area of information. Significant differences were found between small and large companies across a range of aspects of information behaviour. The findings indicate that resources are a prerequisite to engaging in systematic information gathering, but also that the need for structured analysis of business operations in foreign markets is felt more strongly by large companies.

Dancing With Giants: Acquisition and Survival of the Family Firm

In this article, we examine the responses of family companies to the emerging environment of mergers and acquisitions, specifically within the international wine industry. At issue is the question of how the family perspective influences responses of a family firm to the prospect of merger or takeover. We examine the issue through a case study of the takeover of an Australian wine producer and family firm, Peter Lehmann Wines. The case study demonstrates ways in which the family perspective is critical in driving responses, for example, in the strength and forms of opposition to one of the potential acquirers in the case, indicating just how important the preservation of a family legacy was to key family members. However, the case also illustrates how in a takeover fight the dynamics of the takeover process itself become important in determining outcomes. In addition, the case demonstrates that family involvement and influence can be maintained in spite of takeover.

Pre-expatriation: the role of HR factors in the early stages of internationalization

While there has been considerable research on the early stages of internationaIization, HRM aspects have not generally been part of this work, even though many of the important variables revolve around the key people involved and such aspects as their knowledge and networks. In this article, the somewhat neglected area of HRM and internationalization before full-scale expatriation is examined. From the limited available research, it would appear that, within companies, many of the emerging HR issues in early internationalization are dealt with as and when they arise, in a relatively ad hoc manner, often through the marketing department. It is argued that there is potential for a more substantial role to be played by HR staff, but this may well depend on the development of more internationally oriented HR staff as a starting point.

Developing Multilingual Capacity A Challenge for the Multinational Enterprise

In this article, we examine how the multinational enterprise (MNE) develops the ability to function as a multilingual entity in order to facilitate communication, knowledge transfer, and absorptive capacity. While we acknowledge the role played by the adoption of a common corporate language, we argue that this response alone is insufficient to cope with the diverse foreign language demands that accompany global expansion. MNEs need what we conceptualize as language operative capacity (LOC): language resources that have been assembled and deployed in a context-relevant and timely manner throughout the MNE’s global network. Language resources are mainly derived from human and social capital, and their interaction, to form what is termed language capital. Managerial motivation and a preparedness to act are necessary to ensure that language capital is converted into LOC. Our theoretical explanation of LOC derivation is multilevel, incorporating two interacting processes: individuals develop, maintain, and contribute their own foreign language resources, but the MNE also plays a key role. It can influence individual behavior and, at the organizational level, provide its own language resources through the provision of computerized translation software and the like. The interaction between these two processes is seen to be critical in the formation and use of LOC. This multilevel explanation contributes to the growing body of literature that considers how human capital resources in general can be converted for productive purposes.