The international transferability of the firm's advantages

Article Abstract:

The international transfer of advantages by a firm is a necessary condition for successful international operations. Because of the difference between advantages relative to home competitors and advantages relative to foreign competitors, the source of the advantage transferred abroad need not be something unique to the firm. Rather, it can be a factor or characteristic shared by the industry or nation, or it can also be a non-distinctive asset or skill. Non-transferability, in turn, stems from immobility due to geographical specificity and tacit knowledge. Transfer is neither automatic nor easy and often requires investment in complementary assets. Transferability also affects and is affected by the choice of the mode of operation and the choice of target country. Understanding the concept of transferability of advantages is useful in building bridges between strategic management and international business. (Reprinted by permission of the publisher.)

Analysis, Diffusion of innovations

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Changing patterns of international competition

Article Abstract:

What does international competition mean for competitive strategy? While there is an ample literature on the problems of becoming a multinational, the specific strategic needs of established multinationals require closer examination in light of the increasingly competitive international environment. We need to distinguish between multidomestic industries and global industries. If American firms are to catch up with the Japanese, they must strive to achieve global platforms rather than engage in competition on a country-by-country basis. A global strategy requires that a firm rebalance the configuration and coordination of its activities so that comparative as well as competitive advantage is achieved. The increasing globalization of international competition requires strategic responses that overcome country parochialism. (Reprinted by permission of the publisher.)

United States, International aspects, Marketing

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The management practices of Japanese subsidiaries overseas

Article Abstract:

Japan is experiencing management problems with overseas subsidiaries. Some of the difficulties may stem from centralized decision-making and ill-defined human resource policies including policies on labor unions and equal employment opportunity.

Subsidiary corporations, Subsidiaries

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