Stephen Young

Post‐Entry Speed of International New Ventures

We conceptualize a learning–based model of international new ventures (INVs)’ post–entry internationalization speed focusing upon two measures: country scope speed and international commitment speed. We contribute to a deeper understanding of the pace of international expansion of the new venture once it has become an INV by articulating the role of (1) the speed of learning, influenced by social capital and absorptive capacity, and (2) the content of learning represented by knowledge accumulation. We also offer a more refined perspective on organizational learning, which indicates that different stages in the process of exploitative learning require different forms of social capital.

The multinational enterprise and subsidiary evolution: Scotland since 1945

This paper explores the major developments in the multinational enterprise (MNE) literature; along with the research conducted on Scottish-based MNE subsidiaries and the policy changes that have taken place in Scotland aimed at promoting foreign direct investment (FDI). It is suggested that subsidiaries may evolve from the branch plant to the developmental and the entrepreneurial subsidiary type; with each of these three subsidiary types contributing differently to the economic development of the host country. The empirical evidence from an in-depth analysis of IBM, Greenock, Scotland attests to the importance of the entrepreneurial subsidiary activities for the host economy. Implications for research and public policy are discussed.

The internet and the internationalisation of small knowledge-intensive firms: promises, problems and prospects

Based on case studies, this paper presents some exploratory insights, supplemented by a preliminary quantitative study from a developing economy context (i.e., the software industry in Bangalore), concerning the role of the internet in the internationalisation of small knowledge-intensive firms. Three main points are made in this paper. First, the internet holds great promise in facilitating the internationalisation of small firms – especially those in peripheral regions like developing economies; the four Bangalore-based small case-firms shared this view. Second, internet technology notwithstanding, traditional aspects of business such as the importance of face-to-face interaction and the building of trust remain vital; here a potential facilitator for small firms to overcome this barrier comes in the form of internet-supported intermediaries. Third, ultimately the prospect that the internet holds for internationalising resource-poor firms is that of international growth; a preliminary study of 30 Bangalore-based small software firms suggests that this notion holds credence and is worthy of further study, on a larger scale. These findings have implications for future research, practice and policy making in terms of taking a holistic view of the use of internet technology and the leveraging of social capital.

Regional Determinants of FDI Distribution in Poland

In this paper we examine the location determinants of the inflow of Foreign Direct Investment (FDI) into Poland, at a regional level. Using survey data from an online questionnaire in February 2005 and a multinomial logit model incorporating the investor???s specific characteristics, we show that knowledge-seeking factors alongside market and agglomeration factors, act as the main drivers for the inflow of FDI to the Mazowieckie region (including Warsaw), while efficiency and geographical factors encourage FDI to the other areas of Poland. Some implications are drawn for FDI attraction policy in Poland.

Inward foreign direct investment and constitutional change in Scotland

Purpose – The purpose of this paper is to undertake an analysis of the implications of potential Scottish independence for inward foreign direct investment (FDI), multinational enterprise strategies and the local economy. Design/methodology/approach – This paper takes a multidisciplinary approach drawing on literature and evidence in the international business and management, political economy and economic geography fields to analyse the role and impact of inward FDI in Scotland following possible Scottish independence. Findings – Scotland continues as an attractive location for FDI, with greater diversity than hitherto. While the country’s comparative advantages in immobile natural resources provide some protection from uncertainty, weak embeddedness is a risk factor irrespective of independence. A range of transition costs of independence are identified, which could be high and of indeterminate duration, and some will be sector-specific. There are also new possibilities for tailoring of policies and pot...

The New Economic Analysis of Multinationals

In this seminal book, a distinguished group of experts pinpoint and rigorously analyse central topics in international business research. This volume will become a major reference tool for understanding the economics of multinational enterprise. The emphasis throughout is on a new dynamic research agenda, for theory, for empirical research and for public policy.

Overview and public policy reflections

In this seminal book, a distinguished group of experts pinpoint and rigorously analyse central topics in international business research. This volume will become a major reference tool for understanding the economics of multinational enterprise. The emphasis throughout is on a new dynamic research agenda, for theory, for empirical research and for public policy.

Understanding International Strategy in the Professional Services Industry: The Case of the International Marketing Communications Sector

The professional services industry is one of the fastest growing economic sectors in most Western and European economies, expanding at an annual rate of 20 per cent. The companies in this sector now account for 18 per cent of jobs in the West, with revenues of over £600 billion a year (GATS, 2000). Along with other professional services the importance of international marketing communications has grown significantly since the early 1980s and has led to the emergence of multinational advertising agencies. These agencies are capable of serving foreign clients in multiple markets and further penetrating these markets to generate new business activities. While little is understood of the modes of the international expansion by advertising agencies, it is apparant that crossborder activities have become increasingly important as a strategy for growth.

Implications for International Business of Separatist Movements: The Case of Scottish Independence

In September 2014, the people of Scotland will vote in a referendum proposing that Scotland should become an independent country. If voters in Scotland accept the proposal, Scotland would become a new country. The White Paper containing the case for independence (Scottish Government, 2013) clearly states that an independent Scotland would continue to be an open economy. In these circumstances, foreign direct investment (FDI) both inward and outward, and foreign trade, would be central to the Scottish economy. In effect, a yes vote leads to the creation of a new small developed economy that is heavily integrated into the global economy. In different parts of the world, separatist movements are seeking to break away from the countries they currently are part of, for example, Wallonia and Flanders in Belgium, Catalonia, and the Basque Country in Spain, Quebec in Canada, various parts of Indonesia and in many other places. International business research has not investigated the implications for FDI and trade of the possibilities of successful separatist movements creating new small open economies. It is possible that a number of new small open economies could emerge in the coming years. There is research, but not much, on existing small open economies and FDI and trade (Barry and Kearney, 2006; Hooley et al, 1996). This work reveals that small open economies can prosper and attract considerable volumes of FDI that often stimulates exports.

Comparative international entrepreneurship: the software industry in the Indian sub-continent

Purpose – In this chapter, we seek to extend understanding of the ‘international’ dimension of comparative international entrepreneurship (IE), by undertaking exploratory empirical research within a global industry viz. the software industry, and focusing on two local ecologies, namely a regional agglomeration (Bangalore, India) and less developed niche (Lahore, Pakistan) about which little is known. n nMethodology – On the basis of in-depth interviews in Bangalore and Lahore, exemplar case studies from both sub-national regions are presented, which highlight the relative significance of local milieu and ethnic ties in IE. n nFindings – The global nature of the software industry and the central role of the innovative milieu in the USA have important implications for the comparative IE literature. These refer particularly to the coordination and integration of the entrepreneurial processes of opportunity discovery, evaluation and exploitation across frontiers. Close inter-milieu links provide the opportunity to access complementary assets and business networks. While Indians have influenced the development of Silicon Valley, their ties with Bangalore seem primarily to be based on hard-nosed business relations. But in relation to Pakistan, while the US milieu is critical for all aspects of the entrepreneurial process, closed networks may be a barrier to long-term growth. n nOriginality/value of chapter – Where our study goes beyond the literature is by highlighting the role of cross-border linkages between milieux.