FORMULATING AND CONDUCTING INTERNATIONAL STRATEGIES IN EGYPTIAN SMES IN AN UNSTABLE ECONOMIC AND POLITICAL SITUATION
Abstract
International joint venture (IJV) longevity and stability are frequently used as indicators of collaborative success. The SMEs with wide target to the global market can pursue different international strategic approaches to the targeted markets. The international strategies distinguish three types of globally oriented strategies: the global, the multinational and the multifocal strategies while instability factors influence the organizational behaviours and could have a negative impact on the conducting of the international strategy and the achievement of its goals.
Based on this fact, formulating and conducting an international strategy in an unstable economic and political situation requires either the good knowledge of international competitive rules in an industry and its segments with a high consideration and comprehension of the economic and political situation, or an adapted globalization model capable to face the common challenges of instability.
This paper synthesizes the theoretical and methodological rationales for this approach, taking example of some of the Egyptian SMEs with implications for theory development. A corporate strategy perspective on IJVs is provided, which proposes that the effects of IJV dynamics are meaningfully considered at the parent firm level, and the impact of IJV longevity versus instability depends upon factors such as: the firm’s collaborative objectives, post exchange conditions, identification of the strategic issues in different categories of countries, the type of actions to take and the integration and coordination of activities and the IJV's specific governance trajectory. The analysis aids in interpreting prior research and points to the value of more integrative, contingency perspectives on the strategy of globalization and their evolution.
Keywords: International strategy, SMEs, joint venture, instability, organizational behavior, globalization models, success.
Keywords
References
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- Jagersma P.K. (2005), Cross – border alliances: advice from the executive suite, Journal of Business Strategy,2(1), 41-50.
- Janoff, B. (1991) ‘Surviving recession’, Progressive Grocer, 80, 5, 16‐24.
- Kale P, Singh H. (2009), Managing Strategic Alliances: What Do We Know Now, and Where Do We Go From Here? Perspectives, Academy of Management.
- Killing J.P. (1982, May – June). How to Make a Global Joint Venture Work, Harvard Business Review, No. 82310.
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- Slatter, S. (1984) Corporate Recovery, Penguin, Harmondsworth
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- Terpstra V., Sarathy R. (2001). International Marketing, 8th edn., Chicago Il, Dryden Press.
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Abstract
References
- Burdon S., Chelliah J., Bhalla A. (2009). Structuring enduring strategic alliances: the case of Shell Australia and Transfield Services, Journal of Business Strategy, 30(4), 42-51.
- Byrne S., Popoff L. (2008). International Joint Ventures Handbook, Baker & McKenzie.
- Campbell E., Reuer J.J. (2001), International Alliance Negotiations: Legal Issues for General Managers, Indiana University Kelley School of Business, Business Horizons Copyright.
- Carnegy H. 1995. Struggle to save the soul of IKEA, Financial Times (27 March 1995).
- Elmuti D., Kathawala Y. (2001). An overview of strategic alliances, Management Decision 39/3 205-217, MCB University Press.
- Geringer J.M., Hebert L. (1989). Control and Performance of International Joint Ventures, Journal of International Business Studies, 20(2), 235-254.
- Grant R.M., Baden – Fuller Ch. (2004,1 January), A Knowledge Accessing Theory of Strategic Alliances, Journal of Management Studies 41: 0022-2380.
- Jagersma P.K. (2005), Cross – border alliances: advice from the executive suite, Journal of Business Strategy,2(1), 41-50.
- Janoff, B. (1991) ‘Surviving recession’, Progressive Grocer, 80, 5, 16‐24.
- Kale P, Singh H. (2009), Managing Strategic Alliances: What Do We Know Now, and Where Do We Go From Here? Perspectives, Academy of Management.
- Killing J.P. (1982, May – June). How to Make a Global Joint Venture Work, Harvard Business Review, No. 82310.
- Kling K., Gofeman I. (2003). Ikea CEO Anders Dahlving on international growth and Ikea's unique corporate culture and brand identity, Academy of Management Executive.
- Meyer, A. D. (1982) 'Adapting to Environmental Jolts', Administrative Science Quarterly, 27, 4, 515‐37.
- Slatter, S. (1984) Corporate Recovery, Penguin, Harmondsworth
- Slywotzky A., Hoban Ch. (2007), Stop competing yourself to death: strategic collaboration among rivals, Journal of Business Strategy, 28(3), 45-55.
- Retrieved from http://www.emeraldinsight.com/journals.htm?articleid=1603609&show=html
- Terpstra V., Sarathy R. (2001). International Marketing, 8th edn., Chicago Il, Dryden Press.
- Whittington, R. (1989) Corporate Strategies in Recession and Recovery: Social Structure and Strategic Choice, Unwin Hyman, London.
- Yip G. (2002). Total Global Strategy, London Prentice-Hall.
- Zou G., Cavusgil S.T. (2002). The GMS: a broad conceptualization of global marketing strategy and its effect on firm performance, Journal of Marketing, 66, pp. 40-57.
Details
| Primary Language | English |
|---|---|
| Journal Section | Articles |
| Authors | |
| Publication Date | August 26, 2016 |
| Submission Date | September 30, 2016 |
| Published in Issue | Year 2016Volume: 2 Issue: 5 |
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