Chapter 8

International Strategy

Hitt, th
Hitt, Ireland,
Ireland, Hoskisson,
Hoskisson, Harrison,
Harrison, Strategic
Strategic Management:
Management: Concepts
Concepts and
and Cases:
Cases: Competitiveness
Competitiveness and
and Globalization,
Globalization, 14
14th Edition.
Edition. ©
© 2024
2024
Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or
Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.in part.
 Learning Objectives
By the end of this chapter, you should be able to:
8.1 Discuss global environmental trends and firm incentives affecting firms’ decisions to
pursue international strategies.
8.2 Explain the political, legal, and economic risks that discourage firms from pursuing
international strategies.
8.3 Describe the common management problems multinational firms experience.
8.4 Explain what a firm should consider when deciding whether to enter an international
market.
8.5 Describe the three international corporate-level strategies.
8.6 Identify and explain the five modes firms use to enter international markets.
8.7 Discuss the desired strategic competitiveness outcomes associated with an
international diversification strategy.

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 8-1
Global Trends and International Strategies

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 Global Trends and International Strategies

• An international strategy is a strategy through which the firm

sells its goods and/or services outside its domestic market.
• An international diversification strategy is a strategy through
which a firm expands the production and/or sales of its goods
and/or services across the borders of global regions and countries
into a potentially large number of geographic locations or markets.
− The resources a firm possesses provide limits to a firm’s
international diversification and provide a basis for achieving
competitive advantage in the countries in which the firm expands.
Hitt, Ireland, Hoskisson, Harrison, Strategic Management: Concepts and Cases: Competitiveness and Globalization, 14th Edition. © 2024
Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Incentives Encouraging International
Expansion
• Typically, a firm discovers an innovation in its home-country
market, especially in advanced economies.
• Often, demand for the product then develops in other countries,
causing a firm to export products from its domestic operations to
fulfil demand.
• Continuing increases in demand can subsequently justify a
firm’s decision to establish or expand operations outside of its
home country.
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Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Figure 8.1
Forces
Encouraging
and
Discouraging
International
Expansion

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Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Global Trends

• Global value chains are becoming increasingly popular.

• Many of the most important companies in the international economy
operate digital platforms that enhance the ability to cross
international borders.
• Regionalization is a global environmental trend influencing a firm’s
choice and use of international strategies.
• Countries that develop trade agreements to increase the economic
power of their regions may promote regional strategies.
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 Increased Market Size

• Firms can expand their potential market size by using an

international strategy to establish stronger positions outside their
domestic market.
• The potential for large increases in demand for goods and services
from people in emerging markets is another strong incentive for
firms to use an international strategy.
• By expanding the number of markets in which they compete, firms
may be able to enjoy economies of scale, particularly in
manufacturing operations.

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 Location Advantages

• Key supplies of raw material—especially minerals and energy—are

critical to firms’ efforts in some industries to manufacture their
products.
• In industries where labor costs account for a significant portion of a
company’s expenses, firms may choose to establish facilities in
other countries to gain access to less expensive labor.
• Locating facilities outside their domestic market can also help firms
reduce costs through increased operational efficiency.
• The influences of cultural and formal country institutions (e.g., laws
and regulations) may affect location advantages and disadvantages.
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 Learning
• Knowledge can be transferred from the • Firms may also be able to exploit core
headquarters of a multinational firm to its competencies in international markets
international subsidiaries as well as across through resource and knowledge sharing
those subsidiaries and back to headquarters. between units and network partners across
country borders.
• The multinational firm’s learning network
expands through international diversification, • The strength of the international science
and, because each country provides a base is important to learning because
different set of environmental and competitive scientific knowledge and human capital are
conditions, significant learning can take needed to more effectively design, sell, or
place. deliver products.

• Multinational firms can pursue joint research • A firm that is engaged in knowledge activities
and development (R&D) activities to both with a high degree of overlap with industry
seek out new discoveries and exploit those rivals may internationalize their innovations in
discoveries. order to protect them.
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 Discussion Activity 8-1

What incentives do you think influence firms to use international

strategies?

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 Discussion Activity 8-1 Debrief

What incentives do you think influence firms to use international

strategies?
• There are a number of incentives for firms to use an international strategy
and to diversify their operations geographically, including:
− Extending a product’s life cycle.
− Gaining easier access to raw materials and to opportunities in emerging
markets.
− Finding opportunities to integrate operations on a global scale.
− Better using rapidly developing technologies.
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 8-2
Risks Discouraging International Expansion

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 Risks Discouraging International Expansion

• International competition is important, and many markets are rapidly

becoming globalized.
• Even if foreign markets seem attractive, there are legitimate
concerns for firms considering entering these markets.
− Liability of foreignness
− Economic, administrative, and cultural differences from their home
institutional environments
− The challenges of coordination over distances
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 Political and Legal Risks (1 of 2)

• Political risks come from the probability that the operations of

multinational firms will be disrupted by political forces or events that occur
within their home country or in one or more of their host countries.
• Legal risks stem from inadequate legal legislation or enforcement to
protect a firm’s operations or assets.
• Deglobalization is a widespread popular backlash against globalization in
advanced economies, which can hurt multinational companies’ interests.

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Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Political and Legal Risks (2 of 2)
• Possible disruptions to a firm’s operations when seeking to implement its
international strategy create numerous problems, including:
− Uncertainty created by government regulation.
− The existence of many, possibly conflicting, legal authorities or corruption.
− The potential nationalization of private assets.

• Before entering a country or region, firms should conduct a political risk

analysis.
− The firm examines potential sources and factors of noncommercial
disruptions of their foreign investments and the operations flowing from
them.
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 Economic Risks
• Economic risks include fundamental − The lack of availability of important
weaknesses in a country or region’s infrastructure to allow companies to
economy with the potential to cause conduct their business efficiently.
adverse effects on firms’ efforts to − The interconnectedness of operations
successfully implement their international across international borders.
strategies.
− The perceived security risk of a foreign
• Economic risks of using an international firm acquiring companies that have key
natural resources or firms that may be
strategy include:
considered strategic with regard to
− Insufficient protection of intellectual intellectual property.
property.
− Terrorism.
− Differences and fluctuations in the value
of currencies.
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Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Knowledge Check 8-2

All the following are liability of foreignness issues firms face when entering
foreign markets except:
a. economic differences from their home institutional environments.
b. familiar operating environments.
c. cultural differences from their home institutional environments.
d. challenges of coordination over distances.

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 8-3
Common Management Problems
for Multinational Firms

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 Common Management Problems
for Multinational Firms (1 of 3)
• Pursuing an international diversification strategy typically leads to growth in a
firm’s size and the complexity of its operations.
− Larger size and greater operational complexity make a firm more difficult to
manage.
− It becomes increasingly difficult to effectively implement, manage, and control a
firm’s international operations with increases in geographic diversity.

• Different cultures across countries in which a firm competes can also create
management difficulties.
− Cultural factors can be strong barriers to the transfer of a firm’s core competencies
from one market to another.

Hitt, Ireland, Hoskisson, Harrison, Strategic Management: Concepts and Cases: Competitiveness and Globalization, 14th Edition. © 2024
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 Common Management Problems
for Multinational Firms (2 of 3)
• Managers need to work on integrating the social aspects of their business
units across countries so that people will be willing to share knowledge.
• Differences in culture relate to the importance of corporate social
responsibility (CSR) and sustainability in different countries.
− Citizens of some countries are very environmentally conscious.
− There tends to be a lot of variation across countries concerning factors
associated with human rights.
− These sorts of differences make management difficult.

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 Common Management Problems
for Multinational Firms (3 of 3)
• Differences in host countries’ governmental policies and practices can be
substantial, creating a need for the focal firm to learn how to manage what can
be a large set of different enforcement policies and practices.
• Sometimes legislation is passed that regulates how a nation’s firms must
conduct business in host countries.
• Multinationals often locate operations in friendly countries that are
geographically close and have cultures and government systems more like what
is found in their home country.
− The firm is likely to encounter fewer trade barriers, the laws and customs are better
understood, and the product is easier to adapt to local markets.
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 Polling Activity 8-3

The most significant reason a multinational company would locate

operations in a country that is geographically close (regionalization)
is…
a. the firm is likely to encounter fewer trade barriers.
b. the laws and customs are better understood.
c. the product is easier to adapt to local markets.

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 8-4
Considerations for International Entry

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 Considerations for International Entry

• Once a firm has decided to pursue an international diversification

strategy or increase the geographic diversity of its current strategy
through entering new countries, the next important decision is the
selection of new countries to enter.
• Variations in the political, legal, economic, social, and competitive
environments make each country unique, so selecting the right
countries for entry is a challenging task.

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Figure 8.2 Opportunities and Outcomes of
International Strategy

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Four Primary Determinants of Attractiveness
(1 of 4)
• Michael Porter conducted an analysis of why some nations are more
competitive than other nations and why some industries within particular
nations are more competitive relative to those industries in other nations.
• Porter’s findings fall into four broad categories:
− Factors of production
− Demand conditions
− Related and supporting industries
− Firm strategy, structure, and rivalry

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Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Four Primary Determinants of Attractiveness
(2 of 4)
• Factors of production refer to the inputs necessary for a firm to compete
in any industry:
− Labor
− Land
− Natural resources
− Capital
− Infrastructure (transportation, delivery, and communication systems)

• Before entering a country for the first time, a firm should assess the extent
to which necessary resources are readily available.
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Four Primary Determinants of Attractiveness
(3 of 4)
• Demand conditions are characterized by the nature and size of
customers’ needs for the products the firm intends to produce.
− If a lot of customers are likely to purchase the product the entering firm
creates, it will be able to develop scale-efficient facilities and enhance the
capabilities, and perhaps core competencies, required to use those facilities.

• Related and supporting industries – A firm considering entering a country

should carefully assess the strength of the industries from which it intends
to acquire needed materials and technology.

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 Four Primary Determinants of Attractiveness
(4 of 4)
• The types of strategy, structure, and rivalry among firms vary greatly from
nation to nation.
− In general, more rivalry leads to products that are attractive to customers,
which enhances the competitiveness of firms in foreign markets.
− If the rivalry in a particular industry within a country is particularly strong
already, this could be a deterrent to entry because the entering company
could have a hard time catching up to existing competitors.
• These four factors are also relevant for service industries—they can be adjusted
so that they are useful to determining whether a country is an attractive place to
offer services as well as products.
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 Political, Legal, and Economic Systems
(1 of 2)
• The success of all types of entries into new international markets are
also subject to the strength and stability of a country’s formal
institutions.
− Some governments are especially hard on foreign firms entering their
countries, making it difficult to compete.
− The legal community is an important determinant of the attractiveness
of a country for business.

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Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Political, Legal, and Economic Systems
(2 of 2)
• Beyond formal institutions, another factor to consider is the strength of a
country’s economy.
• Firms should evaluate factors such as:
− Growth in gross national product (basic and per capita).
− The rate of inflation.
− The average income and distribution of income of citizens (to determine
buying power).
− Movement in exchange rates between the home country’s currency and the
currency of the country under consideration.
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Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Culture (1 of 2)

• Cultural distance is the term used to describe differences in shared norms

across cultures, including dimensions such as:
− The extent to which people avoid risk.
− Whether they are more individualistic or collectivist in the way they think and
act.
− Whether they are more short-term or long-term oriented.

• Beyond these more formal designations are differences in what behavior

is considered acceptable, attitudes about diversity and inclusion, religious
differences, language differences, differences in educational levels.
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 Culture (2 of 2)

• If two countries are culturally distant:

− It is harder to transfer managers and employees from the home country to the host
country or the other way around.
− They may find it difficult to assimilate.
− They may experience differences in relating to, communicating with, or managing
other people in the business or in the neighborhood in which they live.
− There is a high likelihood that communications from the home office will be
misunderstood, or that company-wide programs will be misapplied.
− It is often difficult to sell products unless a high level of autonomy is given to the
host country managers as to how the product will be tailored and marketed.

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 Knowledge Check 8-4

Variations in all the following make each country unique and make
selecting the right countries for entry a challenging task, EXCEPT:
a. cultural fit.
b. political environment.
c. value of human resources.
d. legal environment.

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 8-5
International Corporate-Level Strategies

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 International Corporate-Level Strategies
(1 of 4)
• A firm’s international corporate- • The three international corporate-
level strategy determines the level strategies vary in terms of
amount of management two dimensions:
independence business units in − The need for global integration.
host countries are given.
− The need for local
• There are three international responsiveness.
corporate-level strategies:
− Multidomestic
− Global
− Transnational
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 Figure 8.3
International
Corporate-Level
Strategies

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Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 International Corporate-Level Strategies
(2 of 4)
• Multidomestic Strategy − Can help a firm expand its local
market share in host countries.
− A multidomestic strategy is an
international strategy in which − Results in less knowledge sharing for
strategic and operating decisions are the corporation as a whole because
decentralized to the strategic of the differences across markets,
business units in individual countries decentralization, and the different
or regions, allowing each unit the international business-level strategies
opportunity to tailor products to the employed by local units.
local market. − Does not allow the development of
− Focuses on competition within each economies of scale and thus can
country. lead to higher costs.

Hitt, Ireland, Hoskisson, Harrison, Strategic Management: Concepts and Cases: Competitiveness and Globalization, 14th Edition. © 2024
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 International Corporate-Level Strategies
(3 of 4)
• Global Strategy − Offers greater opportunities to take
innovations developed in one market
− A global strategy is an international and apply them in other markets.
strategy in which a firm’s home office
determines the strategies that − Efficient operations are required to
business units are to use in each successfully implement a global
country or region. strategy.
− A firm using a global strategy: • Because of increasing global
▪ Seeks to develop economies of competition, the number of firms
scale. using a hybrid strategy—a
▪ Assumes customers throughout the transnational corporate-level
world have similar needs. strategy—is increasing.
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Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 International Corporate-Level Strategies
(4 of 4)
• Transnational Strategy − Are becoming increasingly necessary
to successfully compete in international
− A transnational strategy is an markets because of:
international strategy through which
a firm seeks to balance global ▪ The increases in the number of viable
efficiency and local responsiveness. global competitors.

− Requires “flexible coordination”— ▪ The increasing sophistication of

markets with greater information flows
building a shared vision and
and the desire for specialized products.
individual commitment through an
integrated network—in order to be ▪ Differences in culture and institutional
implemented. environments require firms to adapt
their products and approaches to local
environments.
Hitt, Ireland, Hoskisson, Harrison, Strategic Management: Concepts and Cases: Competitiveness and Globalization, 14th Edition. © 2024
Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 International Business-Level Strategies

• A firm’s international business-level strategy is based, to some degree, on its

international corporate-level strategy.
− Some international corporate-level strategies give individual country units the
authority to develop their own business-level strategies.
▪ Typically goes along with a multidomestic corporate-level strategy.
− Others dictate the business-level strategies to standardize the firm’s products and
sharing of resources across countries.
▪ Tends to occur when a multinational firm is pursuing a global corporate-level strategy.

• It is possible for a multinational firm to have multiple different business-level

strategies operating within various business units in particular countries.
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 Knowledge Check 8-5

Which of the following is NOT an international corporate-level

strategy?
a. Global strategy
b. Multicultural strategy
c. Transnational strategy
d. Multidomestic strategy

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 8-6
Choice of Entry Mode for an International Market

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 Choice of Entry Mode for an
International Market
• Firms can use one or more of five entry modes to enter international
markets:
− Exporting
− Licensing or franchising
− Strategic alliances
− Acquisitions
− New wholly owned subsidiaries

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Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Figure 8.4
Modes of Entry
and Their
Characteristics

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Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Exporting

• Exporting is an entry mode through − Allows firms to avoid the expense of

which the firm sends products it establishing operations in host in
produces in its domestic market to which they have chosen to compete.
international markets. − Requires firms to establish some
means of marketing and distributing
• Exporting: their products in host countries in
− Is a popular entry mode choice for which they have chosen to compete.
small businesses to initiate an − Can have significant costs (e.g.,
international strategy. transportation, tariffs).
− Has been made easier due to the
Internet.
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 Licensing or Franchising (1 of 2)
• Licensing is an entry mode in which an agreement is formed that allows a
foreign company to purchase the right to manufacture and sell a firm’s products
within a host country’s market or a set of host countries’ markets.
− The licensor is normally paid a royalty on each unit produced and sold.
− The licensee takes the risks and makes the monetary investments in facilities for
manufacturing, marketing, and distributing products.

• Franchising is a form of licensing “that grants a franchisee access to a

franchisor’s proprietary business knowledge, processes, and trademarks, thus
allowing the franchisee to sell a product or service under the franchisor’s
business name.”
− The franchisee takes most of the risks.
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 Licensing or Franchising (2 of 2)

• Licensing and franchising have disadvantages.

− After the deal is set, the licensing or franchising firm typically has little control over
selling and distribution.
− They provide the least potential returns because profits are shared.
− The international firm may learn the technology of the party with whom it formed an
agreement and then produce and sell a similar competitive product after the
licensing agreement expires.

• The parties to a licensing arrangement should finalize an agreement only after

they are convinced that both parties’ best interests are protected.

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 Strategic Alliances (1 of 2)

• A strategic alliance involves a firm collaborating with another company in a

different setting in order to enter one or more international markets.
• When using strategic alliances:
− Firms share the risks and the resources required to enter international markets.
− Partners bring their unique resources together for the purpose of working
collaboratively and facilitate developing new capabilities and core competencies
that may contribute to each firm’s strategic competitiveness.

• Not all alliances formed to enter international markets are successful.

• International strategic alliances are especially difficult to manage.
Hitt, Ireland, Hoskisson, Harrison, Strategic Management: Concepts and Cases: Competitiveness and Globalization, 14th Edition. © 2024
Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Strategic Alliances (2 of 2)

• The primary reasons of failure for − The negotiation process to arrive at

strategic alliances are: an agreement

− Incompatible partners − Partner interactions

− Conflict between the partners − External events

− Loss of trust • Cultural and political differences can

make it difficult to achieve the level of
• Efforts to build trust are affected by at
operational integration necessary for
least four fundamental issues:
the alliance to be a success.
− The initial condition of the
relationship
Hitt, Ireland, Hoskisson, Harrison, Strategic Management: Concepts and Cases: Competitiveness and Globalization, 14th Edition. © 2024
Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Acquisitions

• A cross-border acquisition is an entry • Compared to domestic acquisitions,

mode through which a firm from one cross-border acquisitions:
country acquires a stake in or − Often require debt financing to
purchases all of a firm located in complete.
another country.
− Have more complicated negotiations.
• They provide rapid access to new − Experience more difficulty in merging
markets. the two firms due to different
corporate cultures as well as different
• They are not without costs nor are
social cultures and practices.
they easy to successfully complete
and operate.
Hitt, Ireland, Hoskisson, Harrison, Strategic Management: Concepts and Cases: Competitiveness and Globalization, 14th Edition. © 2024
Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 New Wholly Owned Subsidiary
(Greenfield Venture)
• A greenfield venture is an entry − Has the greatest amount of potential
mode through which a firm invests to contribute to the firm’s strategic
directly in another country or market competitiveness.
by establishing a new wholly owned − Is used more prominently when the
subsidiary. firm’s business relies significantly on
the quality of its capital-intensive
• A greenfield venture: manufacturing facilities.
− Is often complex and potentially − May require hiring of a host-country
costly. national or consultant to obtain
− Affords maximum control to the firm. knowledge and expertise about the
new market.

Hitt, Ireland, Hoskisson, Harrison, Strategic Management: Concepts and Cases: Competitiveness and Globalization, 14th Edition. © 2024
Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Dynamics of Mode of Entry

• To enter a global market, a firm • The decision regarding which entry

selects the entry mode that is best mode to use is primarily a result of:
suited to its situation. − The industry’s competitive conditions.
− In some instances, the various − The country’s situation and
options will be followed sequentially, government policies.
beginning with exporting and
eventually leading to greenfield − The firm’s unique set of resources,
ventures. capabilities, and core competencies.
− In other cases, the firm may use
several, but not all, of the different
entry modes, each in different
markets.
Hitt, Ireland, Hoskisson, Harrison, Strategic Management: Concepts and Cases: Competitiveness and Globalization, 14th Edition. © 2024
Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Knowledge Check 8-6

Which of the following is an entry mode through which a firm invests

directly in another country or market by establishing a new wholly
owned subsidiary?
a. Licensing agreement
b. Greenfield venture
c. Cross-border acquisition
d. Strategic alliance

Hitt, Ireland, Hoskisson, Harrison, Strategic Management: Concepts and Cases: Competitiveness and Globalization, 14th Edition. © 2024
Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 8-7
Desired Strategic Competitiveness Outcomes

Hitt, Ireland, Hoskisson, Harrison, Strategic Management: Concepts and Cases: Competitiveness and Globalization, 14th Edition. © 2024
Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Desired Strategic Competitiveness Outcomes
• A firm’s success in carrying out an international strategy depends on many
factors, including:
− Success in identifying the best countries or regions to enter.
− Selection and implementation of appropriate corporate-level and business-level
international strategies.
− Optimal selection of a mode (or modes) of entry.

• Many factors are not under a firm’s direct control that can have a dramatic effect
on the success of an international strategy.
• Firms should do what they can to mitigate anticipated risks through careful
analysis of the business, political, and cultural environments.
Hitt, Ireland, Hoskisson, Harrison, Strategic Management: Concepts and Cases: Competitiveness and Globalization, 14th Edition. © 2024
Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
International Diversification and Performance

• International diversification should be related positively to a firm’s

performance as measured by the returns it earns on its investments.
• Research shows that some multinational firms enjoy high performance
from international diversification and others experience low performance.
• Firms need to be careful in making decisions about where to expand and
how to manage an internationally diversified portfolio of businesses.
• In general, it becomes increasingly difficult to effectively implement,
manage, and control a firm’s international operations with increases in
geographic diversity.
Hitt, Ireland, Hoskisson, Harrison, Strategic Management: Concepts and Cases: Competitiveness and Globalization, 14th Edition. © 2024
Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Enhanced Innovation

• The only way for individual nations and individual firms to sustain a
competitive advantage is to upgrade it continually through innovation.
• International diversification facilitates innovation in a firm because it:
− Provides a larger market to gain greater and faster returns from investments
in innovation.
− Exposes the firm to new products and processes.
− This enables the firm to integrate this knowledge into its operations, allowing
further innovation to be developed.
− Can generate the resources necessary to sustain large-scale R&D.
Hitt, Ireland, Hoskisson, Harrison, Strategic Management: Concepts and Cases: Competitiveness and Globalization, 14th Edition. © 2024
Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Summary
Click the link to review the objectives for this presentation.

Link to Objectives

Hitt, Ireland, Hoskisson, Harrison, Strategic Management: Concepts and Cases: Competitiveness and Globalization, 14th Edition. © 2024
Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.