IBS

___ allow the firms to redeploy its resources to respond to contingencies created in its external environment. By swiftly responding to these opportunities, firms can achieve a competitive advantage and fight off competitors. dynamic capabilities

___ are specific abilities or areas of expertise that the firm possess which forms the basis of its competitive advantage core competencies

A framework that determines the competitive behavior of firms or more specifcally the drivers behind competteive behavior Awareness, Motivation, Capability

Factors Influencing market entry (1): he extent to which less powerful members of organizations and institutions (including the family) accept and expect unequal power distributions. Positive relation to WOS as entry mode Cultural power distance

Factors Influencing market entry (2): Relates to market size and growth; negaitve correlation due to good markets have better protection, IP and coordination with local firms Market Attractiveness

Factors Influencing market entry (3): Country risk and legal protection have a negative correlation with WOS --> due to financial risk that firms must take

Factors Influencing market entry (4a): Income level for manufacturing companies, have a positive relation to WOS as an entry mode

Factors Influencing market entry (4a): Income level for service companies, have a negative correlation because they prefer to use cooperative entry mode

Framework that explains if a firm should internationalize or not and if so how OLI

Framework that explain that firms face two pressures in their evironment that impact strategy: global integration and local repsonsiveness - it framework is called integration-responsiveness framework

Global Strategy (1): The act of using a company's assets to address customers needs/positions itself in market against competitors Value Creation

Global Strategy (2): The act of how a company is sells is products/services along with how the entire value chain is positioned Value Delivery

Global Strategy (3): How a firm capitalizes on its value delivery - more complex in a global setting; consider tariffs + exchange fluctuations Value Capture

Governance Types GVC (1): This governance type is characterized by transactions and low switching costs. Market

Governance Types GVC (2): the supplier is responsible for entire production process and uses generic machinery with low asset specificity. Modular

Governance Types GVC (3): GVC where complex relationships between buyers and suppliers. Asset specificity and mutual dependency is high while relationships are managed through mutual trust and reputation. relational

Governance Types GVC (4): value chains are characterized by a lead firm with access to many suppliers competing against each other. These suppliers face large switching costs and are therefore considered captive by the larger buyer Captive

Governance Types GVC (5): Vertical Integration; Managers have control over the process and down to the subsidiary level. hierarchy (internalization)

How are capabilities formed? Assets working together

Mintzbergs 5Ps (1): Strategy can be congifured as an intednded course of action Plan

Mintzbergs 5Ps (2): Stratgy is configured to outsmart it's competitors Ploy

Mintzbergs 5Ps (3): Constant stream of actions undertaken by the firm Pattern

Mintzbergs 5Ps (4): Strategy is ___ aimed at matching the firm with its external and internal enviroment Positioned

Mintzbergs 5Ps (5): Strategy is a ___ shared by members of an organisation: some see the world as changing --> pursue new products, others see stable --> protection Perspective

OLI (1): Refers to the competetive advanatge that is specific to the firm Ownership advantage

OLI (2): Advanatge that is tied to the specific place the firm want to internationalize Location

OLI (3): The decision of wheter to use the market or leverage internal hirarchy - if the ownership advanatge for control and ability outweighs transaction costs the firm will establish WHO Internalization

RBV: The model states that resources are heterogenous and immobile implying that not all firms in a market posesses the same resources

Refers to a subsidiaries ability to make decisions on its own without input or restrictions imposed by the HQ. Subsidiary autonomy

simultaneous competition and cooperation between global rivals coopetition

Subsidiary autonomy and structural context (1): are geographically constrained and a constrained product and value-added scope. Its primary role is to adapt the firm’s product to the needs of the local market. local implementers

Subsidiary autonomy and structural contexts (2): ossess distinctive expertise in certain functional areas. These activities are coordinated with other subsidiaries, leading to higher interdependence and a narrow set of value activities performed special contributors

Subsidiary autonomy and structural contexts (3): has a global or regional responsibility and cooperates with the HQ to develop and implement the firm’s strategy. It often is responsible for an entire product line or business with an unconstrained range of value adding activities world mandate

Subsidiary role (1a): Competence and strategic imporatnce is high the subsidiary will take on the role of strategic leader

Subsidiary role (1b): In this role the subsidiary aid HQ in developing and implementing its strategy strategic leader

Subsidiary role (2a): he subsidiary is competent but strategic importance is low, the firm will take on a contributor role

Subsidiary role (2b): In this role the subsidiary possesses distinctive capabilities that can be utilized in other markets as well contributor role

Subsidiary role (3a): if competence is low but the strategic importance is high, a subsidiary will be considered a black hole

Subsidiary role (3b): In this role It is not able to compete in the market and instead the firm should focus on exiting the market without wasting more money in trying to compete. black hole

Subsidiary role (4a): If both importance and competence are low, the subsidiary is seen as an implementer

Subsidiary role (4b): It is able to compete in the local market and the focus should be on achieving economies of scale and earning profits. implementer

Theory that argues at how embedded the firm is in the network and how repeated interactions can build mutual trust within the network swedish network theory

Theory that argues that a firm can gain a competitive advantage through its position within the network: present where two nodes are not directly connected to each other. structural hole theory

Theory that explains what stratgy is Mintzbergs 5Ps

Theory that refers to the monetary and non-monetary costs of establishing operations either through contracts or internal hirarcy Transaction cost theory

Theory that suggests that firms can achive a competetive advantage through its human, intagiable, and tangible resources resource-based-view

The seven strategies firms can deploy to manage GVC are ... (s, n/n-m s, j s, r c, m f, e v d) Selectivity, non-profit organizations/non-market strategies, joint strategizing, relational capital, multilateral feedback, equitable value distribution

The three different dimensions of global competition that impact pressures for global firms are... buyer-related, industry rivalry, general forces

The VIRO framework states that firms can develop a sustainable competetive advanatge by controling resources that are valuable, rare, difficult or impossible to imitate and not substitutable

Three parts that influence the subsidiaries role ocal implementer, the special contributor and world mandate

Transaction Cost Theory (1): Characterized by the premise that non all information is know when entering into a transactional relationship. Bounded rational

Transaction Cost Theory (2): Characterized by the fact that certain assets will be less productive outside the relationship or for another purpouse Asset specificity

Transaction Cost Theory (3): refers to the fact that one party claims excess value at the determent of other. E. braking contracts and enhancing preassure for more comprehensive opportunistic behaviour

Transaction Cost Theory (4): last piece that can be both behavioural (associated with monotoring) and enviromental (changes to the external enviroment) uncertainty

Which theory is based on the premise that if the cost of using the market is less than cost of using internal hirarcy is grater the firm will internalize? Transaction cost theory

Theory that argues that the structure of an individuals network can create a competetive advanatge Structural hole theory

____ are gaps between non-redundant contacts, that allows the briding individual to benefit from unique porsitions Structural Holes

The main importance in the structural hole theory is optimal positioning

Theory that explains that partners in a network engage in a social exchange process over time, building mutual trust, from the TCT perspective Swedish network approach

The embeddedness in the Swedish network are based on the following criterias (c, p, s, c) Cognitive, Political, Structural, Cultural

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