Michèle E.M. Akoorie

What motivates manufacturing SMEs to outsource offshore in China?: Comparing the perspectives of SME manufacturers and their suppliers

Purpose – The purpose of this paper is to focus on the motivations for offshore outsourcing encountered by manufacturing small and medium‐sized enterprises (SMEs) and their suppliers in China. The paper explores the motivations and challenges encountered by SMEs choosing to outsource their manufacturing activities and why their suppliers engage with them.Design/methodology/approach – A qualitative case study method was utilized. The authors obtained perspectives of SME managers as well as the suppliers for each of the cases, conducting in‐depth interviews in order to obtain comprehensive information about their outsourcing activities. Then, cross‐case analysis was carried out using content analysis techniques to identify key themes for the motivations to undertake offshore outsourcing.Findings – The results showed that the first rationale for offshore outsourcing relates to increasing efficiency and labor cost reduction while holding quality constant. The second rationale is to maintain flexibility in res...

Sustainable environmental practices in the New Zealand wine industry: An analysis of perceived institutional pressures and the role of exports

The focus of this article is to use institutional theory to provide a better understanding of environmental issues facing New Zealand wineries. Findings from a survey of New Zealand wineries indicate that institutional pressures do not fully explain the adoption of sustainable environmental practices in the New Zealand wine industry. The authors found that firms with a higher commitment to exports will adopt one of the environmental practices identified to a greater degree. The authors present explanations for these results in terms of the nature of the industry, size of the winery operations, and the higher overall export orientation of this industry.

Pilot Study Research Note

A sample of “successful” (defined as those winning a major export in the previous three years) and less successful New Zealand companies were compared in terms of their use of foreign language specialists. Presents the results, which provided support for the expectation of a positive relationship between export success and the deployment of such skills. “Successful” companies were found to employ more foreign language specialists, to employ specialists with a broader range of foreign language skills and to expect higher levels of language proficiency. Foreign language specialists were also more likely to be employed within the marketing function and to assist the use of direct selling modes. These findings have important implications for the training of foreign language specialists. Language training needs to be coupled with sound knowledge of at least one major functional area of management. For New Zealand language specialists employability is considerably enhanced with marketing expertise and some over...

A challenge to Marshallian orthodoxy on industrial clustering

Purpose – The purpose of this paper is to examine the antecedents (the medieval guild) of modern day industrial clustering. The paper challenges the notion that work of Alfred Marshall provides the intellectual underpinning of cluster thinking.Design/methodology/approach – The source material uses archival research on medieval guilds and historical texts. In tracing the development of forms of co‐operative association this paper employs the technique of genealogical spanning. The prism of forms of co‐operative association is used to examine the rise and fall of the medieval guild.Findings – Medieval guilds have been largely ignored by modern proponents of cluster theory and Italianate industrial districts. Guild activity in technological invention and innovation, in skills transfer and knowledge (both codified and tacit) had many of the same positive attributes that are found in neo‐Marshallian industrial districts. The long history of cooperative behaviour in geographically concentrated firms in industri...

The New Zealand Dairy Board: A Case of Group-Internalization or a Monopolistic Anomaly in a Deregulated Free Market Economy

This paper examines the New Zealand dairy industry and in particular the pivotal role of the New Zealand Dairy Board which, historically, has had sole responsibility for the international marketing of dairy industry output. The structure of the dairy industry is examined identifying the links between the dairy cooperatives and the Board using the concepts of the ownership, location, internalization (OLI) paradigm and alliance capitalism. The paper concludes that the structure of the New Zealand dairy industry and the New Zealand Dairy Board, more closely resembles the network structures of alliance capitalism, rather than being a monopolistic anomaly in a hierarchical capitalist system.

Global competitiveness in the Datang hosiery cluster, Zhejiang

Purpose – The purpose of this paper is to examine the development and characteristics of industrial clusters in the province of Zhejiang, China with particular emphasis on the hosiery industry in the town of Datang.Design/methodology/approach – The study used case study methodology and data triangulation techniques based on archival research and reports of statistical agencies both at central and local government level.Findings – Industry clusters assist in regional economic development by increasing local competitive advantages and creating an industrial regional identity through specialisation which attracts resources, labour and capital for investment. The industrial cluster in Datang has been stimulated by the local entrepreneurial climate, effective local networks and support from local government.Practical implications – The hosiery industrial cluster in Datang is in a less‐developed rural region characterised by low‐level labour intensive industrial activity. Their ability to compete internationall...

Broken links: Absorptive Capacity and the internationalisation process of high-tech companies

This study develops propositions regarding the impact of Absorptive Capacity (AC) on the internationalisation process. It generates a conceptual model based on the empirical examination of small-to-medium sized agro-technology companies. The paper demonstrates that the extent to which firms capture and exploit new information is highly influenced by their AC. The goal is to determine the type of knowledge which firms need, to exploit new and emerging markets. We suggest that AC in high-tech companies exists as two subsets: technological AC and non-core AC. The two ACs affect the daily activities of firms in different ways and influence their strategies, particularly their international strategies.

Europe 1992: Implications for New Zealand Business

The EC is one of the most important overseas markets for New Zealand companies. Many New Zealand companies, while claiming to be niche marketers, are actually competing in open segments on the basis of cost and price. These firms appear to place little importance on marketing variables such as advertising and promotion, market research and distribution. Post‐1992, New Zealand exporters will face growing competition and all the disadvantages of a small, outside supplier nation.

Constructing Global Business Networks in China

This article explains the issue of business networking for foreign multinational enterprises (MNEs) operating in China from various perspectives (including cultural, political, economic, and marketing perspectives). The article seeks to provide a basic platform for comparing business network development with corruption to clearly differentiate between these two concepts. The article clarifies how foreign MNEs can effectively establish and maintain business networks to navigate their way through the complex institutions in China and local networks. The article suggests that developing a business network strategy could add value to activities of MNEs in China. Although not all established business networks will definitely lead to new opportunities or bring about greater competitive advantages, an ineffective business network strategy may actually reduce the ability of foreign MNEs to achieve performance outcomes in China. An analysis of the business network strategy would be invaluable to help foreign MNEs to develop business operations in China effectively.

Patterns of foreign direct investment by large New Zealand firms

Introduction Environmental factors such as government policy. location of the home country firm, and industry mix have a direct impact on the internationalization of the firm. The impact of these factors is particularly significant in the case of firms in the New Zealand economy. New Zealand is a “late” internationalizing country. As a small economy, highly dependent on overseas trade earnings. New Zealand firms have serviced their markets principally through exportin, (7 modcs, using overseas agents and distributors. Use of other forms of market servicing, such as foreign direct investment (FDI). has been inhibited by the impact of factors relating to govcrnmcnt policy, lOCilti0fl and industry mix. Kccont economic reforms and structural adjustment in New Zei~l~~nd have resulted in iI changing pattern of international activity for SOIIIC ol’ NCW Zealand’s larger firms, in particular the use of FDI as ;L market entry mode. The ohjcctivc of this paper is to report on iln on-going longitudin:~l study of the FDI of the New Ze;ililnd firm. The initial phase of the resenrch covers the period 19X4-1987. Subsequent research which updates the activities 01 firms in the study wils undertaken between 19X7-1992. Little has been written on the New Zealand firm experience, although some work has been done at the aggrt,‘ *~~‘~te and industry level. albeit from ;I different perspective. (Britton, 1991; Le Heron, 1990). The nature of the discussion therefore is preliminary. and the conclusions tentative, as the patterns of international activity are only just emerging. It is also the result of inconsistent and often incomplete data. which is available to describe these relatively recent phenomena. The first section of this paper develops a theoretical framework for the pattern of FDI activity by the New Zealand firm. The second section documents the background to FDI activity.by New Zealand firms. The third section describes the patterns of international activity and characteristics of FDI by ;1 small sample of eight firms in four different industry sectors. The small size of the sample is due to the relatively small number of firms who have undertaken FDI since the starting date of the study, 1984. and the small number of larger firms in the New Zealand economy. The data has been drawn from published sources. company annual reports and interviews with Patterns of Foreign Direct Investment