Mode Combinations and International Operations

Abstract

Abstract• An enduring characteristic of extant literature on foreign operation modes is its discrete choice approach, where companies are assumed to choose one among a small number of distinctive alternatives.• In this paper, detailed information about the operations of six Norwegian companies in three key markets (China, UK and USA) is used as the basis for an exploration of the extent to which, and how and why, companies combine clearly different foreign operation modes. We examine their use of foreign operation mode combinations within given value activities as well as within given countries.• The study reveals that companies tend to combine modes of operation; thereby producing unique foreign operation mode "packages" for given activities and/or countries, and that the packages are liable to be modified over timeproviding a potentially important optional path for international expansion.• The data show considerable variation across cases; ranging from extensive use of mode combinations to a singular focus on a specific mode of operation. The study contributes to a refinement of our understanding of the path of internationalisation, and throws up a number of awkward theoretical questions about the process.

On the future of international joint venture research

“…Scholars that critically observe market entry research are also calling for studies that extend the focal research subject and analyze MNEs that simultaneously operate within one foreign market with different organizational modes (Benito, Petersen, & Welch, 2011). From the perspective of IJV research, it would be interesting to know whether one can identify recurring combinations or pathdependent combinations and decisions, i.e., intertemporal interdependencies of market entry choices (Shaver, 2013).…”

“…First, as even the validity of seminal studies has been challenged and important deficiencies leading to inconsistent findings and limited explanatory power of distance have been highlighted (e.g., Shenkar, 2001;Harzing & Pudelko, 2016), future IJV research has to develop and to test new models (Shenkar et al, 2008). Especially with regard to international strategic alliances and in the light of mode combinations (Benito et al, 2011) it will be of interest whether these new constructs will be able to explain market exploitation modes better. Second, relating more than 50 years of IJV research to globalization trends, one may raise the question whether findings provided by early studies of cultural distance still apply?…”

Information System Backsourcing: A Systematic Literature Analysis

“…Backshoring "Re-concentration of parts of production from own foreign locations as well as from foreign suppliers to the domestic production site of the company" [30] [30]- [32] Backsourcing "[...] where companies who initially outsourced their IT decide to bring it back in-house." [26] "Production return relocation from an [...] external entity" [31] [26], [31], [33] De-internationalisation "Any voluntary or forced action that reduces a company's engagement in or exposure to current cross border activities" [34] [34]- [36] Insourcing "Insourcing is the practice of evaluating the outsourcing option, but confirming the continued use of internal IT resources to achieve the same objectives of outsourcing" [11] [11]…”

The Differing Foreign Entry Mode Choices for Sales and Production Subsidiaries of Multinational Corporations in the Manufacturing Industry

“…Although previous literature has accounted for the differences in these types of subsidiaries and how these subsidiaries differ in their location choices or sequence of foreign entry when internationalizing [18], studies comparing the differences between these subsidiaries in their foreign entry mode decisions have been less apparent [19,20]. The Uppsala model has explained that firms are more likely to establish sales subsidiaries before production subsidiaries when internationalizing because they aim to steadily increase their commitment or investments [18,21,22].…”