Svetla Trifonova Marinova

The Role of Contextual Combinations in the Globalization of Chinese Firms

This paper argues that it is crucial to take account of both home and host country contexts in order, adequately, to understand their implications for Chinese enterprises investing into foreign countries. This calls for an analysis that is sensitive to both home and host country contexts, and that takes into account how the institutions and political systems in those contexts establish institutional and resource capital needs for the overseas-investing firm. We discuss and illustrate three different combinations of Chinese and host country characteristics, and the firm-level learning and adaptation required in the light of the relevant capitals likely to be available to Chinese firms. The analysis draws upon insights from resource-based, institutional, and political perspectives. While it is developed with specific reference to China, we also suggest that this form of analysis can be applied more generally to the implementation of outward foreign direct investment from any country.

The Role of Contextual Combinations in the Globalization of Chinese Firms (情境性组合在中国企业全球化中的作用)

This paper argues that it is crucial to take account of both home and host country contexts in order, adequately, to understand their implications for Chinese enterprises investing into foreign countries. This calls for an analysis that is sensitive to both home and host country contexts, and that takes into account how the institutions and political systems in those contexts establish institutional and resource capital needs for the overseas-investing firm. We discuss and illustrate three different combinations of Chinese and host country characteristics, and the firm-level learning and adaptation required in the light of the relevant capitals likely to be available to Chinese firms. The analysis draws upon insights from resource-based, institutional, and political perspectives. While it is developed with specific reference to China, we also suggest that this form of analysis can be applied more generally to the implementation of outward foreign direct investment from any country.

Ethics and International Marketing: Research Background and Challenges

Purpose – This paper is a general review contextualising the current debate on ethics and international marketing. The aim of the paper is to present an overview of historical and current trends as a background for this special issue edition of International Marketing Review focusing on international marketing ethics.Design/methodology/approach – The paper examines how ethics in international marketing have evolved and progressed towards the current “ethics era” and presents discussion surrounding the role and value of an ethical approach towards marketing in a global marketplace.Findings – Essentially the paper argues that marketers should creatively embrace the complex challenges of the international marketplace by rethinking their approach to marketing ethics.Originality/value – Gives an overview of the special issue.

Evolution of Firm- and Country-Specific Advantages and Disadvantages in the Process of Chinese Firm Internationalization

This chapter provides a logical extension to the understanding of firm-specific advantages and disadvantages and the enabling role of existing and emerging country-specific advantages relevant to the process of Chinese firm internationalization. Its longitudinal perspective considers the changing objectives and actions of firms that enable them to compensate for disadvantages and create new or strengthen existing competitive advantages. The case study evaluation reveals that the evolution of strategic resources is the key motivator behind the internationalization of Chinese firms. Decisively encouraged by the Chinese government firms with corporate entrepreneurship aspire to alter themselves from home market leaders and regional players into globally competing multi-nationals. This process is made possible via the development of firm-specific advantages and continuous compensation for firm-specific disadvantages. The aspiration for strategic asset acquisition from developed countries combined with cost leadership and independent customer-centred innovation brought about strong firm-specific advantages stimulating the internationalization process of firms. The chapter focuses on the interdependence of country- and firm-specific advantages and disadvantages, thus recognizing the significance of the home country institutional context in Chinese outward foreign direct investment. It has been identified that corporate entrepreneurship is a significant firm-specific advantage for firm internationalization being a major force in gaining, accumulating, utilizing and leveraging resources for transforming firm-specific disadvantages into advantages. We argue that if the relational framework between governmental institutions and firms is more developed, the impact of country-specific advantages on firm-specific advantages is more favourable. This assumes that the government espouses an ideology that is favourable to corporate entrepreneurship.

Personal uses and perceived social and economic effects of advertising in Bulgaria and Romania

Purpose - The objective of this paper is to uncover the underlying dimensions of, and examine the similarities and differences in, personal uses of advertising, perceived socio-economic effects of advertising, and consumer beliefs and attitudes toward advertising in Bulgaria and Romania. Moreover, it aims to identify the relative importance of the predictors of attitudes toward advertising in the two countries. Design/methodology/approach - The paper draws upon findings of previous research and theoretical developments by Bauer and Greyser, Sandage and Leckenby, and Pollay and Mittal. The study uses a stratified random sample of 947 face-to-face interviews with adult respondents from major urban areas in Bulgaria (507) and Romania (440). Variables are measured on multi-item scales as a typical application of the reflective indicator model. Findings - Results show that there are significant differences between Romanian and Bulgarian respondents in terms of their attitudes toward advertising. Romanians are more positive about advertising as an institution than the instruments of advertising. Romanians seem to accept the role of advertising in a free market economy, but have less confidence in advertising claims and techniques. Bulgarian respondents seem more sceptical toward advertising in general and are less enthusiastic about embracing the role of advertising as an institution. Moreover, Bulgarians are highly negative towards the instruments advertising uses to convey its messages to consumers. Research limitations/implications - The research findings reflect the views of urban dwellers and may not be generalisable to the wider population of the two countries. Interviewer bias was reduced by eliminating verbal or non-verbal cues to the respondents, and by the use of stratified random sampling. Practical implications - The paper suggests that the regulatory role of codes of advertising practice and industry regulating bodies should be enhanced, and their ability to protect consumers enforced. Marketing campaigns should be more inclusive to involve diverse social groups and reflect generally-accepted social norms. Originality/value - This study reveals that, while general attitudes toward advertising may be similar, attitudes toward the institution and instruments of advertising may differ even in countries with geographic proximity and low cultural distance.

Market-Seeking Motives and Market-Related Promises and Actions in Foreign Direct Investment Privatization in Central and Eastern Europe

ABSTRACT The process of privatization through foreign direct investment (FDI) in Central and Eastern Europe (CEE) has been organized around interactions of three legally entitled parties, i.e., foreign investor, host government, and host company. The triadic nature of those interactions is addressed in studying the relationship initiation and development. The FDI privatization relationships and the attempts of the three parties to satisfy their objectives have become critical for the survival and successful development of the privatized entity post-privatization. This paper adopts the analytical concept of the interface between motives, promises and actions in the process of relationship development focusing on the role of market seeking motives and market-related promises and actions in the FDI privatization process. Seven cases from Bulgaria are used to unveil the relative significance of the analyzed interface. When assessing FDI investments in CEE foreign investors should assess not only the macro- and microenvironmental conditions, but also pay particular attention to what parties want to gain and what they say they would bring to the venture. The complementarity, compatibility and congruity of motives, promises and actions are suggested to be essential in the successful development of FDI privatization relationships.

Institutional Field for Outward Foreign Direct Investment: A Theoretical Extension?

The chapter explores the stages of development of an outward foreign direct investment (OFDI) institutional field during periods of major system change in big emerging economies. The state and its agencies appear to be the principal institutional entrepreneurs in developing the OFDI organizational field. Consequently, the development of OFDI institutions depends heavily on the extent to which state policy is consistent in supporting the regulative, normative and cognitive pillars enabling and promoting but also monitoring and controlling OFDI. The chapter concludes by advancing theoretical propositions positing the relationship between continuity, the maturity of the OFDI organizational field and the level of institutional entrepreneurship stemming from governmental and business sources.

Investor strategy development and adaptation:: The case of Interbrew

Growing competition pressures in saturated West European beer markets coupled with shrinking demand challenged Interbrew SA, Belgium to enter the emergent prospective markets of Central and Eastern Europe by the acquisition of former state-owned enterprises. The study of this case shows the linkages existing between investor internationalisation strategy, motives, strategy implementation and adaptation in the highly volatile markets of Hungary and Bulgaria. The case represents a good example of slow reactive strategy adaptation to the Hungarian environment leading the investor to the loss of its first mover advantage. Using similar motives for its acquisitions in Bulgaria, Interbrew has successfully implemented a proactive adaptation of its initial strategy to the Bulgarian environment. The lessons from the case can be used by foreign investors to increase their chances for success in FDI acquisitions in transitional economies.

Empirical Studies on Legitimation Strategies: A Case for International Business Research Extension

The paper focuses on legitimation and legitimation strategies applied by companies. Following the process of systematic review, we analyse empirical studies exploring legitimation and legitimation strategies from different theoretical perspectives. Using the key findings by reconnoitering and comparing the theoretical background, approaches, methodologies and findings of these empirical studies, we outline potential directions for research in the legitimation strategies of firms engaged in international business operations.

Foreign direct investment in the emerging markets of central and eastern Europe: Motives and marketing strategies

As economic transformation swept the world in the last two decades, interest in providing theoretical explanations to economic emergence grew simultaneously. While scholars focused mostly on national development strategies such as import substitution and export promotion, little effort has so far been made to better understand firm behavior, particularly motives and strategies at the micro level. This chapter focuses on understanding the motives and marketing strategies of foreign firms operating in the emerging markets of Central and Eastern Europe. On the basis of data gathered from fieldwork in Bulgaria, Hungary, Poland, and Slovenia as part of a major two-year project, the chapter offers insights into why firms might invest in these economies, how they might interact with host governments, what strategic priorities they might follow, how they might approach markets and why, and what competitive battles they might engage in to succeed in these markets. The chapter concludes with suggestions for future research.