| 11. |
- Franz, Sarah, et al.
(författare)
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Multinationals' value chain configuration for product diversification in emerging markets: Western firms in China
- 2024
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Ingår i: Multinational Business Review. - 1525-383X. ; 32:1, s. 65-97
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Tidskriftsartikel (refereegranskat)abstract
- PurposeThis study aims to analyse how multinational corporations (MNCs) organise value chain activities to penetrate new market segments. It contributes by expanding traditional decisions regarding the vertical fine-slicing of value chain activities (whether performed internally or externally) and the consideration of resource-sharing decisions (integration or separation) for each value chain function.Design/methodology/approachThe authors draw on primary data collected from two case study firms operating in the large emerging Chinese market: Volvo Construction Equipment AB and Epiroc AB. In-depth cases illustrate how foreign MNCs expand into new market segments and simultaneously target both the lower-priced mid-market and the premium segments in the Chinese mining and construction industry.FindingsThe results reveal that product diversification creates challenges for managers who must oversee new (vertical) value chains, often simultaneously. Beyond geography and modes of governance, managers must decide whether to integrate or separate value chain activities for the new product lines. The study identifies four main strategic choices for firms to address this complexity, focusing on the decision to internalise or externalise (i.e. within or across organisational boundaries) and integrate or separate value chain activities between different product lines.Originality/valueThis study builds upon the internalisation theory and recent international business contributions that focus on value chain configurations to explain MNCs' product diversification as a growth strategy in a host emerging market. It also sheds light on the choice of conducting new activities in-house or externally and elucidates firms' managerial decisions to operationally integrate or separate individual value chain activities. The study provides insights into the drivers explaining managerial decisions to configure value chain activities across product lines and contributes to the growing body of literature on MNC activities in emerging economies by highlighting that product diversification impacts entry mode diversity and resource sharing across units.
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| 12. |
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| 15. |
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| 16. |
- Ivarsson, Inge, 1954, et al.
(författare)
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Embedded internationalization: How small-and medium-sized Swedish companies use business-network relations with Western customers to establish own manufacturing in China
- 2013
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Ingår i: Asian Business & Management. - : Springer Science and Business Media LLC. - 1472-4782 .- 1476-9328. ; 12:5, s. 565-589
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Tidskriftsartikel (refereegranskat)abstract
- We use firm-level data to show how small- and medium-sized Swedish companies have set up manufacturing in China, despite a lack of local market experience, providing customized products to Swedish and other international customers, both in China and through exports. Initially a cost- and risk-minimization strategy, it became related to growth and opportunity development. In unfamiliar markets where firms face simultaneous liabilities of outsidership and foreignness, both can be overcome through ‘embedded internationalization’, targeting existing and new customers by using their background in similar business environments, as well as their own capabilities and international market experiences as critical firm-specific advantages.
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| 17. |
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| 18. |
- Ivarsson, Inge, 1954, et al.
(författare)
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Global production and trade systems - The Volvo case
- 2008
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Ingår i: International business geography : case studies of corporate firms / eds: Piet Pellenbarg & Egbert Wever. - London : Routledge. - 0415429196 ; , s. 61-82
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Bokkapitel (övrigt vetenskapligt/konstnärligt)
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| 19. |
- Ivarsson, Inge, 1954, et al.
(författare)
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Global technology development by colocating R&D and manufacturing: The Case of Swedish manufacturing MNEs
- 2017
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Ingår i: Industrial and Corporate Change. - : Oxford University Press (OUP). - 0960-6491 .- 1464-3650. ; 26:1, s. 149-168
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Tidskriftsartikel (refereegranskat)abstract
- In this study we analyze the role of colocation between research and development (R&D) and manufacturing for global technology development by multinational enterprises (MNEs). The extant literature suggests that the main strategic role of colocated R&D units is to locally adapt existing products and processes. However, data from 146 foreign R&D units of Sweden’s 17 largest manufacturing MNEs in 2013 show that they instead mainly develop new technology, not only for the local and regional markets, but to a large extent for the global market. A likely explanation is that colocation positively contributes to joint problem-solving and transfer of tacit knowledge between production and R&D personnel, all of which is necessary in new product development, especially in industries characterized by complex products and systems and rapid technological change. A theoretical implication is that depending on industry characteristics, internal cross-functional linkages between R&D and manufacturing can be more critical than external supply- and demand-side factors when it comes to influence where R&D units are located globally.
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| 20. |
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