Robert Jack

Understanding the pace, scale and pattern of firm internationalization: An extension of the ‘born global’ concept

Since the growth of the ‘born global’ concept, much of the established literature has tended to overlook the development of its characteristics outside high technology sectors. To further enhance our understanding of this phenomenon, this article draws on the ‘born global’ literature to identify common internationalization behaviours with which rapidly internationalizing firms are involved. Six propositions are developed related to the key dimensions of pace, scale and pattern of firm internationalization. The results from a comprehensive case study of four non-high-tech Australian ‘born global’ firms suggest that entrepreneurial interpretation is a factor in determining the pace with which a firm internationalizes. Other key implications include the importance of product imitability in assessing the extent of a firm’s international operations, the significance of psychic distance in the assessment of prospective international markets, and that entry mode choice is influenced by the prevailing trends established in each firm’s industry and the need to maximize its internal resources.

Prestige-oriented market entry strategy: the case of Australian universities

Through an exploratory case study of four Australian universities this article finds that foreign market entry strategies are shaped by prestige-seeking motivations and a culture of risk aversion. From the market selection, entry mode and higher education literature, a conceptual model, embedded with four propositions, is presented. The model sees market selection and entry mode as inter-dependent decisions which are influenced by manager and university motives, risk aversion and host government constraints in a gradual process of internationalisation. Among our key findings are that prestige is the key driver for university internationalisation and, due to a high degree of risk aversion, universities prefer zero-equity modes unless risk can be minimised or accommodated through suitable hedging strategies.

Service embeddedness and its impact on the value chain and firm internationalisation: in search of a framework

Internationalisation theory has largely been concerned with analysing firm internationalisation strategy and entry mode choice from a manufacturing firms perspective. Nonetheless, as the composition of a firms product usually contains both tangible and service characteristics, it is important to understand the extent of service components that embody, or are embedded in, a product. This paper introduces the concept of service embeddedness, which is defined as the service characteristics existing in all products and are usually incorporated to add value to a product offering. From this perspective, the paper continues to outline a value chain that shows how value is created through a series of activities similar, but somewhat distinguishable, from the value chain generally applied to manufactured goods. A conceptual model is introduced to determine the likely impact that service embeddedness may have on a firms value-creating activities and its choice of foreign market entry mode.

Service embeddedness and its role in a firm’s internationalisation process: An Australian perspective

Purpose – Perceived differences in the composition of goods and services forms the basis of a significant degree of analysis of the firm internationalisation process. In particular, product inseparability is highlighted as a distinguishing feature of service offerings and purports to explain the different approaches to internationalisation strategy adopted by service firms. The research, however, proposes that the division of goods and services into distinct products is outmoded. Rather, it is important to understand the extent of service components that embody, or are embedded in, a product offering. The authors argue that this “service embeddedness” influences the process by which a firm internationalises. The paper aims to discuss these issues. Design/methodology/approach – Based on ten case studies of Australian international firms, this paper examines the impact of service embeddedness on a firm’s internationalisation process. Findings – The research underlines that firms approach internationalisatio...

Managerial mindset as the mechanism of the country-of-origin effect: evidence from Chinese multinational enterprises’ approach to employer associations

Abstract The country-of-origin effect (COE) on employment practices in multinational enterprises (MNEs) has become an important area of international human resource management research. However, research on the mechanisms of the COE, a fundamental and critical aspect of the country-of-origin phenomenon, is scant. This study seeks to empirically explore the mechanisms through which country-of-origin influences Chinese MNEs’ approach to host-country employer associations. Analysis of qualitative data from 13 Chinese MNEs revealed that country of origin affected the approach of Chinese MNEs to host-country employer associations in the form of transfer of managerial norms. It also revealed that it was the mindset of those home-country nationals who were key decision-makers at subsidiaries that enabled the COE in Chinese MNEs. This paper highlights the importance for future studies of international strategic human resources management to pay attention to micro-foundations of cross-border practice transfer and to incorporate analyses of managerial cognition in the investigation of MNEs’ management practices.

Autonomy and the Realities of Internationalization at Australian Universities: An Institutional Logics Perspective

Recent statements from Australia’s education minister and prime minister signal—potentially—a new era in Australian university autonomy. Claims that Australian public universities will be given greater organizational autonomy suggests there will be less dependence on governments to direct strategies but also less government funding and thus greater financial autonomy. Should Australian public universities be given more freedom “to formulate strategies for their future development” (Bleiklie 2007: 397), they may also formulate new trajectories of internationalization. Governments encourage “export” of higher education to encourage alternative revenue sources from overseas student fees (Parker 2013), leading to greater financial autonomy and eventually to an enlarged and more diversified financial base.

Leveraging Value Across Borders—Do ‘Market Place Interactions’ Trump ‘Market Space Transactions’?: Evidence from Australian Firms in Industrial Markets

One of the challenges for any firm is a sustainable approach to value creation. As firms aim to create additional value for their clients, their output comprises a combination of supplementary service activities supporting the development of, or increased utility of, a good or a service. However, products comprising goods and/or multiple service components are complex and add to the logistical and operational challenges of product delivery across international markets. Although the use of innovative technologies for international service delivery is available to the firm, some degree of direct interaction may still be required for various types of supplementary services, such as customised design, installation, maintenance and on-going after-sales service support. By undertaking an exploratory case study of four Australian firms, operating in industrial markets, this chapter seeks to assess the use of service innovative technologies in the delivery of supplementary services to international clients. For all case study firms, the delivery of supplementary services formed an important component of their international strategy. In particular, the provision of maintenance services was assessed by senior management as their company’s competitive advantage. A key finding is a preference for direct delivery of services, in conjunction with technology. This is for two reasons—first, not all service-related problems can be successfully resolved via technology; second, is for the firm to retain the ability to provide customer relationship building, specifically for the purpose of enhancing value creation.

Special issue on ‘IHRM implications of the internationalization of Chinese banking and financial institutions’

Despite their latecomer status to international expansion, a significant amount of research has already been published into many aspects of Chinese firm internationalization (see Boisot & Meyer, 2008; Child & Rodrigues, 2005; Cui, Jiang, & Stening, 2011; Deng, 2012; Fan, Zhu, & Nyland, 2012; Schüler-Zhou & Schüller, 2009; Yang, Jiang, Kang, & Ke, 2009). Specifically, this includes their motives to internationalize, their entry mode choices and their performance in international markets. Although this research is extensive, it remains predominantly grounded in an analysis of China’s manufacturing firms. Studies of Chinese firms across different industry sectors, and their human resource management (HRM), remain limited (Cooke, 2014). Indeed firms from its service sectors, although at times featured as part of a broad database of firms for survey or multiple case study analysis, have rarely been the focus of individual studies in the management field, especially human resource management. This is significant as the growth in China’s outward foreign direct investment impacts on other sectors. The client-following strategy implies that a firm is part of an international network of exchange (Majkgård & Sharma, 1998; Nigh, Cho, & Krishnan, 1986: Weinstein, 1977). Client-following firms operate in a network in which their exchange partners operate internationally. These partners both help and pressure the other members in the network into going international. In common with this approach to service firm internationalization, Chinese banks and financial institutions internationalize with the aim of providing a financial support network for other Chinese businesses as they themselves expand into international markets. Internationalization within the financial services sector is a multifaceted phenomenon, associated with both market opportunities and challenges as banks align internal changes in operations and assets with an international strategy (Li, Qiu, & Wan, 2011; Sparrow, Farndale, & Scullion, 2013). Banking is a complex and dynamic sector that emphasizes effectiveness, efficiency and calculability with flexibility and speed (Newenham-Kahindi, 2011). Firms within this sector recognize that to succeed requires firm–client relationships to be developed and maintained. Specifically, banks and financial institutions provide services based on specialized information which relies on the skills, talent and knowledge of employees. As such, they need to expend a significant effort in attracting, developing and retaining talented managers and specialists. With increased global business competitiveness and technological growth, banks with international business orientations

Perspectives on Chinese foreign direct investment in Australia

China’s rapid economic growth has increasingly drawn the attention of international business researchers to the international investment activities of its firms (Buckley, 2008; Buckley et al., 2007; Cui & Jiang, 2010; Kang & Jiang, 2012; Liu et al., 2005; Rui & Yip, 2008; Voss et al., 2008; Yang et al., 2009; Zeng et al., 2012). More broadly, China’s expanding outward foreign direct investment (OFDI) is in line with its increasing global trading presence. Together, they strengthen China’s growing global influence and, therefore, have implications extending beyond issues of trade and economics.