Yair Aharoni

Globalization of Services: Some Implications for Theory and Practice

1. Introduction: setting up the scene Y. Aharoni Part I: The Globalization of Service Industries 2. Foreign direct investment in services: trends and patterns P. Mallampally and Z. Zimny 3. Developing regulatory disciplines in professional services: the role of the World Trade Organization D. Honeck Part II: Theory 4. FDI, the location advantages of countries and the competitiveness of TNCs: US FDI in professional service industries L. Nachum 5. History and contingency in international accounting firms D.J. Cooper, T. Rose, R. Greenwood and R. Hinnings 6. The role of reputation in global professional business services Y. Aharoni 7. The globalization of professional business service firms - fad or genuine source of competitive advantage? B. Lowendhal 8. Enforcement and appropriation of music: intellectual property rights in global markets D. Kretschmer, C. Baden-Fuller, G.M. Klimis and R. Wallis 9. International franchising: a network approach to FDI K. Fladmoe-Lindquist 10. Knowledge, creation and transfer in global service firms R. Grosse Part III: Case Studies 11. Global competition in industrial services: an analysis of aircraft maintenance, repair and overhaul services T.K. Seng and P. Enderwick 12. International alliances in service business: the case of airline industry H. Seristo 13. DHL Worldwide Express: providing just-in-time delivery services across customs borders in Central and Eastern Europe M Kostecki 14. Globalization of hotel services: an examination of ownership and alliance patterns in a maturing service sector F. Contractor and S.K. Kundu 15. The search for core competencies in a service multinational: a case study of the French hotel Novotel S. Segal Horn

The Changing Political Economy of Israel

In the first years of Israels existence, the economic system was highly politicized, and political parties controlled most of the resource allocation. With time, this structure has gradually changed. The changes have not been sweeping or revolutionary but the result of several processes: a gradual transition of ideological beliefs, the impact of the United States as a role model, an increasing globalization of the economy, and the perception of most citizens that the issue of the immediate danger of annihilation has become less pressing. Several events may be seen as watersheds in the transition of the political economy of Israel. This article emphasizes mainly four: (1) the refusal in 1980 of the then minister of finance, Yigal Horowitz, to renew the agreement with the Histadrut on bonds; (2) the New Economic Policy of 1985 and its impact on the economy in general and on agricultural settlements in particular; (3) the capital market reforms; and (4) the sweeping victory of Haim Ramon in the Histadrut elections of May 1994 and the resulting changes in the power of that organization.

Entrepreneurial Orientation and International Performance: The Moderating Effect of Decision‐Making Rationality

This research examines how entrepreneurial orientation (EO) influences international performance (IP) of the firm taking into account the moderating effect of decision-making rationality (DR) on the EO-IP association. Such an investigation is significant because it considers the interplay of strategic decision-making processes supported by the bounded rationality concept in the entrepreneurship field. Drawing from a study on activities of 216 firms in the United States and United Kingdom, the evidence suggests that DR positively moderates the EO-IP association. The findings suggest that managers can improve IP by combining EO with rational (analytical) processes in their strategic decisions.

From Adam Smith to Schumpeterian global firms

Porters generic strategies are true almost by definition. Yet they do not allow us an understanding of the means by which low cost or differentiation can be achieved. This paper deals with the various ways of achieving sustainable competitive advantage or creating firm specific advantages (FSA) by a multinational enterprise (MNE). The paper shows that the means of achieving sustainable competitive advantage are based on different factors in different firms, because of such variables as size, degree of rivalry in the market, and the importance of technology. It analyzes the components of strategy of firms operating in what is termed Heckscher-Ohlin industries, using mining as an example; differentiated industries competing on the basis of achieving brand advantages and Schumpeterian industries, in which competitive advantage is based on innovation. Moreover, the paper distinguishes between external factors impinging on strategy, such as the industry, and internal factors or resources. It argues that one major characteristics of Schumpeterian firms is the creation of the environment and that of the industry in which they operate. The unique abilities, to innovate and to learn, allow major and often sustainable advantages. The paper recognizes the importance of government in creating and sustaining competitive advantage in each one of the three industries—be it by closing markets or by subsidies to R&D. Despite this recognition, the role of government in creating and sustaining competitive advantage is considered beyond the scope of the paper.

The evolution of management science practices in Israel

Management science applications in Israel have developed since the 1960s, after the universities began to teach the topic and powerful managers helped the introduction of applications. Uses were extensive only when experts interacted with sophisticated managers, mainly in large organizations where data was available and dissatisfaction with existing methods had developed. MS was much less used when the status quo could not be challenged, mainly in small or regulated firms or when the MS introduction was perceived as a threat to an existing power structure. Today MS is widespread, although its applications are more part of engineering or management practice than the domain of dedicated units. The variables explaining these phenomena are discussed.

The Evolution of State-Owned Multinational Enterprise Theory

This paper traces the evolution of research by economists and by international business scholars on the structure and behavior of state-owned multinationals (SOMNEs) in market economies. As a background, the chapter examines the reasons for the creation of state-owned enterprises (SOEs) and the issues common to all SOEs, such as their control by government, their performance relative to private-sector firms, the behavior of their managers, and the differences, if any, between private and public entrepreneurs. SOMNEs are an intriguing hybrid. Being state-owned, they are presumed to be state controlled and work to achieve political and social goals, though there is a large body of research showing that this presumption is far from exact. Being enterprises, they are assumed to produce goods or services and market them like any other business enterprise, but their political controllers direct them to achieve multiple other goals, such as generating employment, with no specification of the trade-offs among these goals. Finally, one characteristic of the global spread of operations of a multinational enterprise (MNE) is its ability to evade government regulations, including those of the home country’s government