Category: Academic Theory

A signpost to useful information on the academic theories and frameworks used in the international business and global strategy literature.

The Eclectic Paradigm or OLI Framework

The eclectic paradigm, also known as the OLI Model or OLI Framework (OLI stands for Ownership, Location, and Internalization), is a theory in economics.[1][2] It is a further development of the internalization theory and published by John H. Dunning in 1979.

  • Ownership advantages[1][2] specific advantages refer to the competitive advantages of the enterprises seeking to engage in Foreign direct investment (FDI). The greater the competitive advantages of the investing firms, the more they are likely to engage in their foreign production.[5]
  • Location advantages [6][2] Locational attractions refer to the alternative countries or regions, for undertaking the value adding activities of multinational enterprises (MNEs). The more the immobile, natural or created resources, which firms need to use jointly with their own competitive advantages, favor a presence in a foreign location, the more firms will choose to augment or exploit their specific advantages by engaging in FDI.[5]
  • Internalization advantages[2] Firms may organize the creation and exploitation of their core competencies. The greater the net benefits of internalizing cross-border intermediate product markets, the more likely a firm will prefer to engage in foreign production itself rather than license the right to do so.[5]

‘Luck’ in International Business.

Do you think Good luck and bad luck plays a key role in expanding overseas? In a case study of the Rover company entering Bulgaria (Elenkov, D., & Fileva, T. (2006)), bad luck is described as starting with the death of the Executive who started the entry process. The role of Supernatural beliefs in Chinese culture (Chang, W. L., & Lii, P. (2008)) and how lucky numbers are used to manage uncertainty brings out a cultural dimension of the role of ‘luck’ in business. In another study that looks at CEOs who outperform peers(Kim, S., Eberhart, R., & Armanios, D. (2017)), luck is viewed through a lens of CEO role of luck versus skill in CEO performance.
This is work in progress-

References

Chang, W. L., & Lii, P. (2008). Luck of the draw: Creating Chinese brand names. Journal of Advertising Research, 48(4), 523-530.

Elenkov, D., & Fileva, T. (2006). Anatomy of a business failure: Accepting the “bad luck” explanation vs proactively learning in international business. Cross Cultural Management: An International Journal.

Kim, S., Eberhart, R., & Armanios, D. (2017). What makes a winner? Toward resolving the role of luck and skill in sustained CEO performance. Toward Resolving the Role of Luck and Skill in Sustained CEO Performance (May 2017).

Global Recessions

This paper traces a history of Global Recessions .

The world economy has experienced four global recessions over the past seven decades: in 1975, 1982, 1991, and 2009. During each of these episodes, annual real per capita global gross domestic product contracted, and this contraction was accompanied by weakening of other key indicators of global economic activity. The global recessions were highly synchronized internationally, with severe economic and financial disruptions in many countries around the world. The 2009 global recession, set off by the global financial crisis, was by far the deepest and most synchronized of the four recessions. As the epicenter of the crisis, advanced economies felt the brunt of the recession. The subsequent expansion has been the weakest in the post-war period in advanced economies, as many of them have struggled to overcome the legacies of the crisis. In contrast, most emerging market and developing economies weathered the 2009 global recession relatively well and delivered a stronger recovery than after previous global recessions.

Citation

“Kose, M. Ayhan; Sugawara, Naotaka; Terrones, Marco E.. 2020. Global Recessions. Policy Research Working Paper;No. 9172. World Bank, Washington, DC. © World Bank. https://openknowledge.worldbank.org/handle/10986/33415 License: CC BY 3.0 IGO.”

Post Covid – 19 Educational Platforms to Manage the Continuity of Learning: The Case for Using the Global Marketing Management System Online Software in IB Courses

This session will: (a) Showcase how platforms can be used to embed theoretical discussion and academic legitimacy in an online classroom environment, based on our decade-long practical experience of using an experiential teaching and learning software, GMMSO; (b) Demonstrate how GMMSO software has been used in Global Business Strategy and International Management/Marketing courses and in the real world to create market entry strategies for real companies as well as help IB professors to create realistic consultancy projects and executive education programs; (c) Provide an opportunity for IB instructors to engage with the GMMSO4 software, participate in a Q&A session with the developer of the software and instructors who have used the software. A video demo of the GMMSO4 software in action will be made available to all AIB members for free.

The Business of Globalization and the Globalization of Business

The new global economy of the twenty-first century has transformed the economic, social, educational and political landscape in a profound and indelible manner. It is composed of a trilogy of interactive forces that include globalization, trade liberalization and the information technology and communications revolution. Globalization has melted national borders, free trade has enhanced economic integration and the information and communications revolution has made geography and time irrelevant. The role and functions of entrepreneurship in the new global economy have taken on added significance and face compounded challenges

https://journals.lib.unb.ca/index.php/jcim/article/view/5666/10661

What Does it Mean to be Global?

Being—or becoming—a truly global company is a complicated and long-term undertaking. It’s a challenge, but increasingly necessary for organizations that want to compete and prosper in a business environment marked by continuing globalization.

https://magazine.ethisphere.com/what-does-it-mean-to-be-global/

Geoeconomics

Geoeconomics as a field of knowledge comes from classical geopolitics. In more specific terms, it can be understood as an extension of the sphere of geopolitics applied to international economic relations. In this sense, Geoeconomics is an unfolding of geopolitics. From a contemporary perspective, geopolitics refers to the analysis of the distribution and configuration of power in the International System and its effects on inter-state relations of international politics, as well as on the strategic morphology of the world space. Both geopolitics and geoeconomics are intrinsically linked to interstate geostrategic competition. However, Geoeconomics restricts the field of analysis of geopolitics and emphasizes the relevance of economic power as a factor of analysis. In this sense, it incorporates a special type of geopolitical competition.

JAEGER, BRUNA COELHO; BRITES, PEDRO VINICIUS PEREIRA. Geoeconomics in the light of International Political Economy: a theoretical discussion. Brazil. J. Polit. Econ.,  São Paulo ,  v. 40, n. 1, p. 22-36,  Mar.  2020 .   Available from <http://www.scielo.br/scielo.php?script=sci_arttext&pid=S0101-31572020000100022&lng=en&nrm=iso>. access on  24  July  2020.  Epub Feb 21, 2020.  https://doi.org/10.1590/0101-31572020-2982.
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