It is well-documented that international enterprises are more productive. Only few studies have explored the effect of internationalization on productivity and innovation at the firm-level. Using propensity score matching we analyze the causal effects of internationalization on innovation in 10 transition economies. We distinguish between three types of internationalization: exporting, FDI, and international outsourcing. We find that internationalization causes higher levels of innovation. More specifically, we show that (i) exporting results in more R&D, higher sales from product innovation, and an increase in the number of international patents (ii) outward FDI increases R&D and international patents (iii) international outsourcing leads to higher sales from product innovation. The paper provides empirical support to the theoretical literature on heterogeneous firms in international trade that argues that middle income countries gain from trade liberalization through increases in firm productivity and innovative capabilities.
The design of a spatial distribution structure is of strategic importance for companies, to meet required customer service levels and to keep logistics costs as low as possible. Spatial distribution structure decisions concern distribution channel layout – i.e. the spatial layout of the transport and storage system – as well as distribution centre location(s). This paper examines the importance of seven main factors and 33 sub-factors that determine these decisions. The Best-Worst Method (BWM) was used to identify the factor weights, with pairwise comparison data being collected through a survey. The results indicate that the main factor is logistics costs. Logistics experts and decision makers respectively identify customer demand and service level as second most important factor. Important sub-factors are demand volatility, delivery time and perishability. This is the first study that quantifies the weights of the factors behind spatial distribution structure decisions. The factors and weights facilitate managerial decision-making with regard to spatial distribution structures for companies that ship a broad range of products with different characteristics. Public policy-makers can use the results to support the development of land use plans that provide facilities and services for a mix of industries.
Purpose: Corporate relocation is a rare event in the history of an individual company. The choices related to location, building and workplace constitute major long-term strategic decisions that determine the company’s future operating environment. However, business decision-makers often do not evaluate all the aspects of relocation before making relocation decisions. Thus, the purpose of this paper is to systemise the knowledge behind corporate relocation and the strategic qualities and impacts of these choices. Design/methodology/approach: This conceptual paper is based on a comprehensive literature review of 74 articles on the strategic qualities of short-distance corporate relocation of knowledge-intensive firms. Based on the review insights, a conceptual model of the strategic operational qualities for work environment selection is developed. Findings: This paper identifies three strategic layers of physical environment change, namely, location, building and physical work environment, which need to be considered when deciding to relocate. Corporate relocation affects a company through five operational qualities, namely, staff productivity, costs, employee retention and availability, operational changes and organisational culture. Practical implications: Relocation is a complex process for an individual company. Justifying choices based on direct costs can lead to unexpected changes in indirect costs for the company. This paper helps decision-makers understand the strategic importance of corporate relocation, identify relocation goals and plan successful relocation. Originality/value: This paper uses a strategy and organisation lens to provide a systematic overview and synthesis of the strategic qualities of short-distance corporate relocation of knowledge-intensive firms.
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