With increasing globalisation of the world economy, there is growing interest in international business research among academics, business practitioners and public policy makers. As marketing is usually the first corporate function to internationalise, it occupies the centre-stage in the international strategy debate. The objective of this study is to understand the environmental and organisational factors that drive the desirable outcomes of learning, innovation and performance in multinational firms. By adapting the IO-based, resource-based and contingency theories, the study proposes the environment-conduct-outcome framework and a model of global marketing in MNCs. Using the structural equation modelling-based PLS methodology, the model is estimated with data from a global survey of marketing managers in MNC subsidiaries. The results show that the traditional international marketing strategy and organisational structure constructs of adaptation and autonomy do not have a significant direct effect on MNC performance. Instead, the effects are largely mediated by the networking, learning and innovation constructs that are included in the proposed model. The study also shows that, whereas collaborative decision making has a positive effect on interunit learning, subsidiary autonomy has a significant influence on innovativeness in MNC subsidiaries. Finally, it is found that marketing mix adaptation has an adverse impact on the performance of MNCs facing high global integration pressures but improves the performance of MNCs confronted with low global integration pressures. The findings have important implications for global marketing in MNCs. First, to enhance organisational learning and innovation and ultimately improve corporate performance, MNCs should simultaneously develop the potentially conflicting organisational attributes of collective decision-making among the subsidiaries and greater autonomy to the subsidiaries. Second, to tap local knowledge, MNCs should increasingly regard their country units as 'colleges' or 'seminaries' of learning rather than merely as 'subsidiaries' with secondary or subordinate roles. Finally, to improve MNC performance, the key requirement is to achieve a good fit between the global organisational structure, marketing strategy and business environment. Overall, the results provide partial support for the IO-based and resource-based views and strong support for the contingency perspective in international strategy.

This study investigated the expansion strategies of hotel companies that want to expand away from their local market. Due to the growing importance of services in economic development, there is an impressive body of knowledge on the process of internationalisation and service industries. Due to the major changes impacting upon the industry due to the effects of technology and globalisation, it would be useful to establish the important key factors and processes involved during internationalisation. Expanding cross border for a hotel group signifies a number of challenges that must be focused on at the same time. Markets need to be identified, political stability needs to be scanned and cultural differences must be taken into consideration. Logistics and supply chain have to be developed together with operational issues from financial reporting, marketing and human resources. Organisational structures must be adapted to take into account the new levels of responsibility. An in-depth review of the literature regarding internationalisation was conducted, which evidenced that the most useful model for answering the questions was the eclectic paradigm as developed by John Dunning (1993). The paradigm has been used in many manufacturing and service sector studies, including that of the hotel sector (Contractor and Kundu, 1994). A questionnaire was compiled and interviews were set up with the directors and executives tasked with the respective companies’ expansion programmes. Due mainly to the effects of new technology and globalisation on the hotel industry, there have been many changes in the last decade, including increasing consolidation and concentration and an increasing importance upon branding and financial performance. It was apparent from the research that the time taken to internationalise by hotel chains has reduced significantly in the last decade, especially if one looks at the performance of hotel companies such as Accor Hotels. iii Only two of the three companies studied in this treatise had undertaken expansion into Africa with the third company ready for entering soon. Nonequity involvement in general was the most favoured form of involvement with majority of their expansions based on management contracts, joint partnership or franchises. The role of the functional departments, the importance of a global outlook and the necessary structural changes during international expansion was also explored. In order to answer the various research propositions that are posed, the researcher chose to base this research on a phenomenological approach through case study analysis.

The new South Africa has an amazing economic growth that creates a significant opportunity for international companies to start their businesses in South Africa. For those companies which are interested in the South African market, it is very important for them to understand the factors that influence their entry-mode selection. The objective of this study is to determine the main factors that have an impact on the decision of a foreign business to enter South Africa. To achieve this objective, the researcher used an integrated study method, as follows: {u10007A} A systematic review of the popular entry-modes and the main factors influencing the entry-mode selection, sourced from the relevant literature. In addition, South African business was also introduced. {u10007A} Based on the factors related in the literature, an empirical survey was completed by those foreign companies who had already successfully entered into South Africa, in order to figure out the rank importance of these factors. With an integrated study of literature and empirical research, the rank importance of factors that have an impact on the foreign business entry-mode selection in South Africa is as follows: 1. Firm’s product 2. Control level of entry-mode 3. Ownership of entry 4. Resource commitment of entry-mode 5. Political factor 6. Firm’s objective 7. Technological factors 8. Economic factors 9. Firm’s experience in international marketing 10. Firm’s size 11. Dissemination risk of entry-mode 12. Socio-cultural factors 13. Flexibility of entry-mode Key terms: International market entry-mode South African business environment.