Globalisation and its Managerial Implications

Citation

Hristov, L. (2001), "Globalisation and its Managerial Implications", International Marketing Review, Vol. 18 No. 5, pp. 562-566. https://doi.org/10.1108/imr.2001.18.5.562.1

This volume, edited by C.P. Rao, will make useful reading for both academics and marketing executives. It provides a comprehensive and balanced overview of the international marketing process from a managerial perspective. The underpinning theme is globalisation as a phenomenon which is affecting all firms, irrespective of size and country of origin. Markets are no longer limited by national borders. Demographic changes and advances in technology are bringing down long‐standing geographic, regulatory and industry barriers, paving the way for a truly global marketplace. Global markets, however, offer not only opportunities. International firms are facing the challenges of a dynamic and increasingly competitive environment. Such challenges stem not only from the complexity of the environment, but also from the management construct. The transformation from a local firm into a truly international one requires a radical change in its management mindset.

Divided into six parts, each section of the book addresses a separate marketing issue, ranging from the implications of the macro and micro environments on firms, to issues related to intercultural marketing, and globalisation of marketing programmes. It includes a fair mix of conceptual papers, case studies and empirical research from an international panel of marketing academics. In its introduction, the author makes a review of the selected works and offers justification for his choices. The topics included are relevant and consistent with international marketing processes. Part one is divided into four chapters, which examine macroenvironmental issues of practical significance to firms. Chapter 1 reviews the international trade environment and examines the contradiction between the ongoing liberalisation of trade and existing restrictive business practices. The authors call for greater co‐ordination of competition policies among the major trading nations. Chapter 2 explores the advantages of co‐operative strategies employed by firms to achieve a global competitive advantage. The debate is continued in the following chapter where the authors offer an interesting overview of US legislation on country of origin marking of products and its impact on international manufacturing and sourcing. In chapter 4 the authors explore the use of macrosegmentation schemes in assessing opportunities in the emerging markets of Eastern Europe and the former Soviet Union.

Part two explores the challenges of globalisation at a micromanagement level where a sequential approach to internationalisation can be viewed as an incremental learning process. Improved knowledge of international markets could reduce levels of perceived or actual risks for the company. In chapter 5 the author takes a different perspective, viewing firms as a collection of resources and internationalisation as a process associated with the mobility of these resources across borders. Alongside the traditional, experience‐based models, the author strongly recommends the use of resource‐based models in discussing internationalisation. There are different facets to international activities of companies, going beyond exporting. International companies could be involved in global sourcing of materials and components, multiple assembly and manufacturing in overseas locations and subsequently global marketing of their products. Chapters 6 and 7 explore global sourcing challenges and strategies as well as ways of building international networks.

The papers included in part three explore the challenges related to importer‐exporter interactions. Built upon Hofstede’s cultural dimensions, chapter 8 focuses on the cultural influences affecting exporter‐import agent relationships. Drawing parallels with personal relationships such as Wa in Japan, Inhwa in Korea and Guanxi in China (PRC), the authors offer a framework for predicting and enhancing contractual relationships across cultures. Chapter 9 presents the results of empirical research conducted among Taiwanese companies, designed to explore cross‐cultural interactions from an importer’s point of view. Part four addresses three different aspects of intercultural marketing communications, chapter 10 deals with “enculturation” of sales training. Using communication styles from cross‐cultural psychology, the authors propose useful guidelines for improving the efficiency of sales training. Chapter 11 offers a comprehensive review of developments in measuring the effectiveness of advertising with reference to international copy testing. Chapter 12 reports the results of empirical research assessing the cross‐national differences in attitudes towards advertising.

Part five devotes three chapters to sector management issues. The examples used are from small‐ and medium‐sized enterprises (SMEs), the IT and the general insurance sectors. SMEs make a significant contribution to wealth creation in many markets. Their share, particularly in high‐tech sectors of the global economy, has increased considerably. However due to size, limited international experience and resources, SMEs are particularly vulnerable to market volatility. Chapter 13 discusses some of global challenges to SMEs. Through case studies the chapter provides useful examples of business support schemes available to SMEs in the USA, Brazil and India. In an increasingly dynamic and competitive global environment, interfirm collaborative agreements have experienced unprecedented growth. They are a quick and efficient way of achieving global presence and competitiveness. Chapter 14 explores the nature, motives and trends of strategic alliances in the IT sector. An impressive insight into the internationalisation processes of European general insurance companies is provided in chapter 15.

Part six comprises only two chapters each one illustrating, with a specific example, regional marketing issues. Chapter 16 presents the findings of extensive consumer research in China and introduces perceived attribute importance (PAI) as a new predictive tool measuring the dynamics of consumer behaviour with reference to fast moving consumer goods (FMCG). The book concludes with chapter 17, which is a well‐written review of the evolution of European integration and its implications for global companies. Although relevant, part six seems rather brief and to a degree contextually overlaps with previous sections. Therefore it could have either been extended with additional research papers or integrated into the previous parts of the volume.

Globalisation and its impact on management thinking is a vast topic with many different facets and it is a challenge, even for an extensive selection like this, to include every one of them. The book has achieved a remarkable breadth. Perhaps one area of research with limited presence in the text is the impact of technology on marketing thinking. Advances in information technology and the Internet have had a profound effect on global business practices, manifested in the emergence of a global network economy. E‐commerce is redefining business models, transforming customer and competitor relationships and is creating a whole new raft of global challenges and opportunities for marketers. This book works on different levels. Although there is a considerable practical element to it, I find its strengths more on analytical and reflective levels. The volume consists of high standard research organised in a clear and logical structure. The balance between conceptual and empirical papers achieves the necessary insight and depth. Alongside the practical benefits, the book offers a significant contribution to the academic debate on globalisation.