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Dynamics of International Business Environment and Strategy: A Systems Approach

Dynamics of International Business Environment and Strategy: A Systems Approach . Massood V. Samii, Southern New Hampshire University Nader Asgary, Ph.D., Bentley University Dinorah Frutos, Southern New Hampshire University Pard Teekasap, Nakhon Pathom , University Thailand .

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Dynamics of International Business Environment and Strategy: A Systems Approach

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  1. Dynamics of International Business Environment and Strategy: A Systems Approach Massood V. Samii, Southern New Hampshire University Nader Asgary, Ph.D., Bentley University Dinorah Frutos, Southern New Hampshire University Pard Teekasap, NakhonPathom, University Thailand

  2. Theories of International Business • J. Dunning’s (Eclectic paradigm) Towards an eclectic theory of international production: some empirical tests Journal of International Business Studies, 11 (1) (1980), pp. 9–3 • Ownership • Location • Internalization • Peng’s Tripods Model Global Business, • Resource base model • Industry base Model • Institutional base Model • Buckley and CassonForeign Market Entry Strategies: Extending the Internalization Approach ,Journal of International Business Studies, Vol. 29, No. 3 (3rd Qtr., 1998), pp. 539-561 • Buckley and CassonThe internalization theory of the multinational enterprise: A review of the progress of a research agenda after 30 years” Journal of International Business Studies (2009) 40, • Ray Vernon International Investment and International Trade in the Product CycleThe Quarterly Journal of Economics, Vol. 80, No. 2 (May, 1966), pp. 190-207 • J. SternmanBusiness Dynamics: Systems Thinking and Modeling for a Complex World Irwin McGraw-Hill 2000

  3. Critique • Most of these models are: • Static in nature • Consider only limited factors • We felt there is room for a major study that takes both system view and dynamic view of International Business. The first draft was prepared in the summer and we are in the process of revising the manuscript

  4. What is Systems Dynamic: (Complex System) • It is a system of differential equations that shows the time path of various variables. • It provides non-linear relationship with dynamic time path • The simulation of the system shows the time path of variables in the system if one of the variable is changed • The model would have: • Stock variable (i.e. Asset in a foreign country) • Flow variable (i.e. Amount of new investment or retained profit in that country) • Rates (return on investment in that country) • S-D can become highly complex depending upon number of variables in the system.

  5. Key Element We look at international business as two separate systems: an internal system which is the system that includes all the aspects related to a firm’s value chain, and an external system which is the system that includes all the aspects that external to the firm such as the global environment in which the firm operates.

  6. External System: Elements International Trade System Global Financial System Cultural Ethical/CSR in Internationally

  7. Internal System: Value Chain Analysis Purchasing Production Distribution/ Sales After Sale Service Research & Development Administrative backend office

  8. What is a system Dynamic

  9. Out sourcing

  10. Out sourcing

  11. FDI & Employment

  12. FDI and Employment

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