Lawrence S. Welch

Foreign operation mode combinations and internationalization

The standard formula in theoretical and empirical studies of entry mode choice and internationalization processes of firms has been ‘one foreign country, one operation mode’, i.e. a singular mode approach. However, even with fairly broad operation mode definitions it is by no means exceptional to see firms having more than one operation mode in a foreign country. This paper explores the phenomenon of ‘multiple’, ‘mixed’, or ‘combined’ foreign operation modes. Although several occurrences of mode combinations are reported in the IB literature, the phenomenon has not yet been made the subject of direct analysis. The paper introduces a classification of multiple mode appearances based on the degree of interaction between operation modes (which vary considerably). Special attention is paid to ‘mode packages’, i.e. the concerted use of several operation modes in an integrated, complementary way. In a study of Danish MNCs with simultaneous use of subsidiaries and independent local intermediaries it was found that in most cases the two modes are operating in a complementary way. A framework for analyzing the roles within packages is presented and it is argued that the use of ‘mode packages’ may offer the multinational firm scope for improved international market penetration capacity.

International retailing operations: downstream entry and expansion via franchising

In this paper, the shift into international franchising from other forms of operation, rather than the typical home market franchising base, is explored. The focus is international retail franchising, based on a study of the Danish clothing and footwear industry. In this study it was found that Danish companies were moving into international franchising as an outcome of a more general shift from upstream wholesaling and subcontracting activities to downstream involvement in retailing activities. Preceding establishments of foreign subsidiaries and company-owned retail operations seemed to be important in facilitating the move into franchising.

Network analysis of a new export grouping scheme: The role of economic and non-economic relations

Abstract Export grouping schemes can be viewed as an attempt to manage network development. This article examines a new Australian export grouping scheme in terms of its role and impact on the industrial network of which it is a part. The role played by non-economic exchange relations as well as economic, buyer-seller, exchange relations are emphasised, including competitive and potential interfirm relations and the way informal interpersonal relations. Spawned initially by formal grouping processes, were found to play an important part in group functioning and in outcomes from group activities.

Broadening the Concept of International Entrepreneurship: Internationalisation, Networks and Politics

In this article, the situation where a company internationalises over an extended period without changing operation mode is explored. The focus of the empirical research is the Australian company CSR and its large-scale sugar exporting operations, which developed over a period of about 75 years. Because of the highly politicised nature of the sugar industry in many countries, CSR was called upon to make extensive investments in political networks in order to achieve its global sugar exporting operations. Overall the CSR experience demonstrates that it is possible to stretch the use of a given mode, although this may demand considerable creativity in market, network and policy responses of a kind which illustrate that international entrepreneurship may come in many guises, and may need to be viewed in a broader way.

Dancing to success: export groups as dance parties and the implications for network development

Export grouping schemes are a commonly used vehicle for promoting international competitiveness, but their success rate is patchy. A perennial problem is the value of continuing the formal group structure itself. In this paper we examine the nature and role of export groups using the results from two in‐depth Australian case studies. The focus of analysis is on export groups as structuring devices rather than structures. They are viewed as action learning exercises in which knowledge and resource creating and self‐organizing processes are nurtured, these processes in turn shaping the evolution of interfirm relations and networks. Building on earlier work by Wilkinson and Young the dance metaphor is extended to depict and analyze export groups as dance parties. Dance themes are used to illustrate and dramatize issues arising in the design, development and evaluation of export grouping schemes and are related to the real experience of the two case studies examined.

International Business Development And The Internet, Post-Hype

In this paper we examine a range of effects of the Internet on international business development following the collapse of speculation and hype surrounding the ‘Internet bubble’ in the recent past. Internet effects are considered by focusing on different dimensions of firms’ internationalisation: specifically, internationalisation capacity, as represented by strategy, structure, technology, human resources and financial resources; and internationalisation patterns. While the Internet may have been over-hyped during the recent ‘bubble’ stage, there is little doubt that it has affected many aspects of companies’ international operations – accelerating some stages of development, although it would appear that firms are still learning how to productively incorporate the power of the Internet across the full range of their international operations in different markets, and develop a better fit with traditional forms of operation.