New International Business Space

Terry Mughan Professor of International Management

Gustavson Business School University of Victoria

Terry Mughan, PhD 2012

1.  A space for all companies 2.  A space for ideas

3.  A space for relationships 4.  A space for all citizens


Not so much a space as a set of boxes

1.  Boxes for trade figures, multinational brands and

exporters 2.  Latterly, boxes for FDI too

3.  Market share and competitive lone wolves.


:

• Mobile citizens and knowledge sharing

• Open innovation • Flexible, learning companies of all

sizes • Supra-national and sub-national

units of organisation


1.  Companies 2.  The global citizen

3.  National and supranational governance


FDI

Multinational Transnational

Mini-multi

Born Global SME

International

Public/private/ social

Open innovation

Exporting

International knowledge trading

Regional growth policy

Student entrepreneurs

Migrant entrepreneurs

Global

MNC


• Empirical studies of SME behaviour

carried out for EEDA, UKTI and OECD/APEC

• Work with leading European science

parks and MNCs


Key Issues: ► Why does the company go international? ►  How do they do it? ►  What problems do they encounter? ►  Where do they go for help?


How did we do it?

}  Telephone survey of 1,200 SMEs }  Face-to-face interviews with

}  the strategic leader of 80 SMEs


Who did we talk to: A: The Curious B: The Frustrated C: The Tentative D: The Enthusiastic E: The Successful


Strategy Implications: ► Complexity

►  Transferable skills and knowledge ►  Sustainability of support

►  Relationships and networks


i10 AND

THE H.I.G.H.E.R. PROJECT


§  To improve international business support services for potential high-growth companies. §  Identified from CEIM study

§  Middle-market as labelled by PWC

§  Interest in ‘born globals

§  Impact of economic change (globalisation, ) on SMEs

§  To promote knowledge-sharing between HEIs, companies and government support agencies.


STRATEGIC

MARKET DECISIONS RELATIONSHIP MANAGEMENT

Strategic competence Organisational learning Planning Change management

Environment assessment

Competitor analysis

Human Resources

Market entry Cultural issues

language skills

Long distance management

Conflict resolution

Knowledge exchange

Partnership management


•  Exporting is not an end in itself •  Other activities should accompany and follow on from exporting •  Innovation and competitiveness in product and process in the firm is the goal.


Source: Robert Salomon, Learning from Exporting, Edward Elgar, 2006

Firms that become exporters in a given year experience more product innovation the following year

The more markets you enter, the more you innovate Going directly to markets results in more innovation


•  Flexible, learning companies of all sizes

•  Mobile citizens and knowledge sharing

•  Open innovation

•  Supra-national and sub-national units of organisation and collaboration


} “[..] inflows and ou/lows of knowledge to accelerate internal innova9on, and expand the markets for external use of innova9on [..].”

Chesbrough, H., W. Vanhaverbeke, and J. West, eds. Open Innova9on: Researching a New Paradigm. 2006, Oxford University Press.


}  Outside-In-ProcessesIntegrating external knowledge in the innovation process:

}  --> Using the expertise of suppliers, customers and external partners in order to improve the quality of the innovation process.

}  Inside-Out-ProcessesExternalising IP or internal knowledge: PUSH!, Business Angel Forum, Regional hubs, Experts‘ Database... ! Capitalise on this IP/knowledge through licensing, joint ventures and spin offs.

„If we can‘t turn all our discoveries into products, why don‘t we license them to third parties or even sell them entirely?“ Gerard Kleisterlee, Philips


}  Stakeholders •  Companies •  Scientists •  Government •  Suppliers of

knowledge (consultants, business schools)

}  Primary target group:

•  Companies

}  Secondary target group:

•  Other stakeholders

Companies

Science Government Others

Project

Primary Target group

Secondary Target group


}  Innovation policy and governance structures urgently need to anticipate changes and new developments in the national and European innovation system.

}  New generation of Innovation Governance has to open up for better horizontal and vertical co-operation of the regulatory regime

}  Policy makers and intermediaries have to prepare the innovation governance system for the paradigm shift to Open Innovation.

à Benefit through learning from the experiences of the growing “co-opetition” culture in the private sector.


1.  A larger proportion of educated globally minded citizens in all countries

2.  A greater number of real born globals, i.e. cross-nationally constructed companies

3.  More transnational legislation permitting cross-national company formation

4.  Better, accessible skills everywhere to help companies compete and collaborate

internationally


New International Business Space

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