Markus Venzin

The Strategic Nexus of Offshoring and Outsourcing Decisions

One important effect of the increasing integration of the world economy is the rising importance of possibilities to offshore and outsource value-creating activities. In many industries, firms are able to disaggregate their value chains into smaller parts. This process allows for a less path-dependent approach to the firms ideal location profile (through offshoring and relocation) and control strategies (through outsourcing). This article argues that optimal decisions regarding individual processes recognize the linkages of these processes with the firms entire value chain. The article explores the magnitude, sequence, and dynamics of interdependent decisions regarding the location and control of various parts of the value chain. By using case illustrations from the mobile handset and financial services industries, this article provides a novel perspective on the disintegration, mobility, and reintegration of value chain activities in a global context.

Does Knowledge Sharing Pay? An MNC Subsidiary Perspective on Knowledge Outflows

This empirical paper explores knowledge outflow from MNC subsidiaries and its impact on the MNC performance. We develop and test hypotheses derived from literature on MNC knowledge flows integrated with the perspective of knowledge-creating, self-interested MNC subsidiaries. The hypotheses are developed using a simultaneous equation model applied to a unique dataset encompassing a German MNC, HeidelbergCement. Enablers and impediments of knowledge outflows are assessed in order to explain why subsidiaries share their knowledge with other MNC units. Implications are examined by studying the link between knowledge outflows and subsidiary performance. Our findings suggest that knowledge outflows increase a subsidiarys performance only up to a certain point and that too much knowledge sharing may be detrimental to the contributing subsidiarys performance.

Does knowledge sharing pay? A multinational subsidiary perspective on knowledge outflows

This empirical study explores knowledge outflows from MNE subsidiaries and its impact on subsidiary performance. We develop hypotheses derived from literature on MNE knowledge flows integrated with an organizational economics perspective on knowledge-creating MNE subsidiaries. The hypotheses are tested using a simultaneous equation model applied to a unique data set encompassing a German MNE, HeidelbergCement. Enablers and impediments of knowledge outflows are assessed to explain why subsidiary managers share their knowledge with other MNE units. Our findings suggest that knowledge outflows increase a subsidiarys performance only up to a certain point and that too much knowledge sharing is detrimental to the contributing subsidiarys performance.

Introduction to Part II: Orchestration of the Global Network Organization

The organizational design of the Multinational Corporation (MNC) was a vibrant area of research in the field of International Business and Management during the 197

Orchestration of the global network organization

The organizational design of the Multinational Corporation (MNC) was a vibrant area of research in the field of International Business and Management during the 1970-1990s. However, since then this research has largely faded from our scholarship. This volume of AIM is designed to spark new life into the research on the organizational design of the MNC. The world - and environmental forces - has changed substantially in the last decades placing new constrains on the MNCs. External shocks have increased and MNCs need to learn how to live with this increased market volatility. Integrating value chains makes MNCs more efficient but also vulnerable. The relentless forces of competition and globalization are forcing MNCs to divide their activities and reach for foreign inputs, markets and partners. By dividing their value chain into discrete pieces -- - some to be performed in-house, while others are outsourced to partner organizations -- - MNCs hope to reduce overall costs and risks, while also reaping the benefits of ideas from contractors or alliance partners worldwide. These challenges call for new research on the organizational design of the MNC. It is our intention with this AIM volume to motivate new research on the proper organizational design mechanisms of MNCs as of today.

Organizing export strategies.

Abstract This article supports managers in their attempts to organize effective export strategies. Exporting is not just an initial low-commitment internationalization strategy that leads naturally into higher commitment entry modes such as FDI or acquisitions. For many firms, location advantages do not justify foreign direct investments and they therefore decide to service foreign markets from their domestic markets. But despite the relevance of this internationalization mode, there does not seem to be much consolidated knowledge about the organization of successful export strategies. As a result, firms are not just confronted with the choice between export or FDI but with numerous distinct strategic exporting alternatives. The article unfolds as follows: after a brief introduction on the relevance of international trade and the characteristics of export strategies, we describe four distinct export archetypes: (1) export manager, (2) centralistic export developer, (3) export skimmer, (4) integrated export developer. This article concludes with a discussion on the impact different export models have on firm performance.