published_or_final_version / abstract / Geography / Doctoral / Doctor of Philosophy

published_or_final_version / abstract / China Development Studies / Master / Master of Arts

published_or_final_version / abstract / Geography / Doctoral / Doctor of Philosophy

Internationalisation has become part of the daily life of most small and medium sized enterprises (SME) in Europe. The internationalisation of enterprises is a dynamic phenomenon and is in this thesis studied as one specific example of change processes in the development of SMEs. Previous research on internationalisation has largely been explorative, most often without any modelling of causal relationships, and with insufficient definitions of concepts. The dominating dynamic models have been based on the assumption of un idirectional changes in small steps, and only cross sectional data have been used. The present research is one of the first where longitudinal date is available for studying the process of internationalisation. The data comes from a panel consisting of 1700 SMEs from 7 countries in Europe where each firm is observed 4 or 5 times in the period 1991-95. Around 47% ofthe enterprises in the panel exhibit development of their export quota which can be explained by an incremental change modeL. Importantly, an almost equally large proportion, 45% ofthe enterprises, exhibit fluctuations in their export quota which can not be explained by the incremental change models. Although variations have been found, the non-incremental change patterns are significantly represented in all countries, all size classes of enterprises and in all industry sectors; and can therefore be considered to be general features -- not patterns associated with specific sub groups of enterprises. The causal analyses of factors influencing export orientation were not able to identify a temporally stable regression model for export quota. The endogenous variable market extension has been found to be influenced by four composite measures: external interaction (+), available capacity (-), employment (+), and manager capabilities (+). Measured by growth in total sale, there is clear evidence that the non-regular change patterns of export quotas can not be regarded as indicators of failure. On the contrary, the results suggest that the non-regular change patterns identifY enterprises which successfully use adaptation and flexibility to their competitive advantage. An initial model was build on previous research where conceptualisation and relationships have mainly been tested with cross-sectional data. This model did not stand up to a test with longitudinal data. The discrepancy between cross sectional and longitudinal modelling indicates that there is a qualitative difference in what can be deduced from research based on one observation and multiple observations. The same conclusion can be derived from the fact that factor analyses as well as path analyses produced different results when the yearly data sets were analysed separately or concurrently.

Foreign direct investment is a topic that currently ranks highly on the agenda of most countries, forming the basis of policy design and development on both a microeconomic and macroeconomic level. From a microeconomic perspective, business strategies are undergoing radical shifts in order to compete in an ever-competitive global climate. Businesses therefore need to diversify their operations across borders as this is essential for ensuring survival. Yet, the motivation and desire of business are not necessarily beneficial to the country, region or market that a particular business plans to enter. Some types of foreign direct investment are positive, enabling a useful and efficient flow of technology, ideas and capital and this, as highlighted in conventional literature, is the key determinant of underlining macroeconomic policy regarding foreign direct investment. Governments attempt to capture such flows. They design efficient policy tools to attract foreign investors into their regions, so that their countries may benefit from these flows in the form of job creation and receiving capital inflows from the induced investments and exports, which aid to offset balance of payment deficits. Countries may enjoy the positive spill-over of such investment that may help local business become more competitive within the international arena. Certain business interests may have strong negative effects such as abusing supplies of natural resources and the abundance of low-skilled labour that exists within developing countries, as few policies are in place to protect these often weaker economies. This may cause conflict between business and government, challenging policy makers to implement protective measures such as trade restrictions, capital market regulation and the development of organised labour policies which may seem only to encourage the flow of negative investment. The gains of such investment become ambiguous, cheering the antiglobalisation movements and discouraging the flows of foreign direct investment that may actually induce positive developments within the economies concerned. The battlefields of such fixed investment movements often establish themselves on emerging market territory, where economies are prone to both helpful and hostile attacks of foreign direct investment. The emerging economies are ever increasing in global importance on the international trade arenas. These countries, many with sound macroeconomic policy, often display rapid economic growth, developed markets and an abundant supply of cheap skilled and unskilled labour, consequently absorbing an ever-increasing share of foreign direct investment. However, the direction of foreign direct investment is difficult to determine, especially when using common constraints, such as economic, political, social and geographic factors. The focus of attention needs to be shifted to those people who are responsible for the decisions to invest. These decision-makers are not to be grouped into a singular globular mass of uniformity; neither should they be treated as a single variable in the equation attempting to explain fixed investment. They make decisions regarding foreign direct investment and are extremely complex beings, cognitively weighting certain factors that determine the decision to invest over other factors. This is an ever-changing process, and seldom will any two investors act in exactly the same way. Consequently, there is a need to explain the decision-making process of foreign direct investors in a model that is fluid, not static and that allows for the flexibility required for the survival of businesses within an ever-changing emerging market economy. This can only be explored by analysing the psychological and cognitive structure of the decisionmaking process that is not totally dependent on the macroeconomic or microeconomic forces present in policy design or company structure respectively. By understanding the process underlying decision-making, it is possible to construct a decision-making model applicable to the unique cognitive workings of the foreign investor.Clear-cut factors need to be identified which map decision-making prior to the act of investment. Therefore, the decision-making model should be constructed using an intentional bias. By using an intentional bias, the decision to act may not yet be consciously considered, but a need to act exists. If the decision-maker is presented by an opportunity, the intent may become the action. By highlighting decision-makers with a positive attitude towards an action, i.e. investment, it is possible to map the factors relevant in the decision-making process. This allows for the construction of a model mapping the intention to act, thereby creating a decision-making model. For the purpose of this thesis a survey was designed and presented to the key decisionmakers within established companies. They included senior business executives, company CEOs, managing directors, owners of businesses and others that play an executive decisionmaking role within their businesses. From these responses key factors were identified from which a behavioural model was constructed by using suitable statistical tools and constraints. This behavioural model is independent, yet influenced by factors such as economic freedom, political instability and corruption, labour market regulation and the existence of development zones within host countries. The identified factors that become relevant to the behavioural model of decision-making are attitude, level and extent of other related or competitive companies within the host country, risk type and ability to overcome such risk, the vision of the company and the social fulfilment experienced by the decision-makers. The necessity for a decision-making model regarding foreign direct investment in the emerging economies is one that cannot be underestimated. This model is designed to contribute towards the current literature on foreign direct investment, with the aim and intent of improving this body of knowledge and assisting towards streamlining policy formation.

The purpose of this paper is to investigate the influence of capital factors on the internationalisation of South African Small Medium and Micro-Enterprises (SMMEs). These capital factors are Financial, Social and Human capital. The study concentrates on determining how various levels of capital act as a preventative factor when a firm internationalises. The low levels of Financial capital is accentuated as it prohibits South African SMMEs from internationalising. Social capital emphasises that few social ties and networks prevent South African SMMEs from globalising. Lastly, the focal point of Human capital are the low levels of international knowledge and experience of management, which prohibits South African SMMEs from expanding internationally. To address these issues, this study draws upon a sample of 136 South African internationalised and non-internationalised SMMEs studied via an online questionnaire. The major theories underlying this research include the Resource-based theory, the Social Network theory and the Organisational Learning theory. Multivariate statistical analysis were used to test the results and confirmed that Financial Funding had an influence on an organisation’s ability to internationalise. Results from this study can potentially provide policy-makers and practitioners with additional insights into the key constraints to internationalisation of South African SMMEs.

Thesis (Ph.D.)--University of the Witwatersrand, Faculty of Commerce, Law and Management, School of Economic & Business Sciences, 2011. / The primary aIm of this study is to investigate the role that is played by the quality of infrastructure on export participation and on foreign direct investment using firm level data from the World Bank and employing maximum likelihood techniques such as the Tobit and Probit models. Results show that firm size, foreign ownership, internet access, international distance, electricity, customs and generator ownership matter in influencing export participation. Thus the reason why very few firms in Africa are outward oriented is partly because of poor market access and poor electricity and customs infrastructure. Ln the case of foreign direct investment (FDI) results show that foreign firms are attracted to a market, bigger in size and that market access is also very important. FDI results also show that a big market in an environment characterized by acute power problems negatively affects market seeking FDI. Customs problems generally have a weak negative effect on the probability to be foreign invested particularly inward FDI, but days to export matter to outward looking foreign producers. Water problems do not seem to matter for both FDI firms and exporters in this study. In light of these findings, there is need therefore for the government in collaboration with multilateral institutions like the World Bank, United Nations and other donor agencies to mobilise resources to improve Africa's infrastructure facilities particularly customs, power and international transport facilities . This could also be done by involving the private sector through various Public Private Partnership arrangements.

Transfer pricing is a significant taxation problem facing both tax authorities and multinational enterprises. Tax authorities around the world regulate transfer pricing through tax legislation, which requires that cross-border transactions within multinational enterprises be at arm’s-length. A number of countries in the international community have amended their transfer pricing tax legislation to be prescriptive by including regulations in their legislation on how to transact at arm’slength price. This research study presents an argument that the South African transfer pricing tax legislation is non-prescriptive as it does not have regulations on how to transact at arm’s-length price. With reference to the transfer pricing guidelines issued by the Organisation of Economic Development and Corporation and the experience of the United States of America in the enforcement of transfer pricing, this research study examines whether or not the South African transfer pricing tax legislation should be amended to be prescriptive by including regulations on how to transact at arm’slength price. The research findings reveal that to a certain extent the South African transfer pricing tax legislation is consistent with the transfer pricing guidelines issued by the Organisation of Economic Development and Corporation, but to a certain extent it is not. The research findings also reveal that non-prescriptive legislation has in the past created a problem in certain countries. Furthermore, the research findings reveal through an analysis of the United States of America’s transfer pricing enforcement experience, that prescriptive transfer pricing tax legislation in a tax system has a positive impact. Recommendation is therefore made in this research study that the South African transfer pricing tax legislation should be amended to be prescriptive by including regulations on how to transact at arm’s-length price. viii Keywords of the study: arm’s-length price, arm’s-length principle, income tax, IRS, multinational enterprise, non-prescriptive, OECD, Practice Note 7, prescriptive, SARS, section 31, section 482, South Africa, tax legislation, taxation, tax law, tax authority, transfer pricing, transfer pricing methods, United States of America.

The purpose of the current manuscript was to examine acquirer and market behavior surrounding a sample of international mergers and acquisitions. The first essay examined the existence of a private company discount and its connections to liquidity. It found that unlisted targets sell for less than their public counterparts, confirming earlier findings. The examination of a connection between the discount and liquidity mostly contradicted earlier studies (Officer 2007), depending on which subsample was selected. The second essay examined the existence of a target price runup preceding acquisitions announcements, existence of a substitution effect between runup and premium, and whether investor protection influenced the two. It confirmed the earlier findings of a significant runup preceding acquisition announcements, with the runup being more pronounced in those targets from weaker investor protection countries. Contrary to Schwert (1996), the study found a significant substitution effect between runup and premium, with the effect stronger if the acquirers are from countries with weak investor protection. The third essay examined acquirer stock price reaction to the three different components of the offer price: target's stand-alone valuation, pre-announcement runup and the offer premium. Each component was found to have an overall insignificant effect on the acquirer stock price in the overall sample. When the targets were from the countries with the weakest investor protection, the study found that the reaction to both the runup and stand-alone target valuation depend on both target and acquirer country investor protection. The study also found that when the targets were from the countries with the weakest investor protection, and only from those countries, acquirer stock price reacted negatively to any individual component of the offer price being higher. / Overall, the three studies confirm that behavior of both acquirer management and their stock markets i affected by the variance in investor protection among countries. / by Jurica Susnjara. / Thesis (Ph.D.)--Florida Atlantic University, 2011. / Includes bibliography. / Electronic reproduction. Boca Raton, Fla., 2011. Mode of access: World Wide Web.

My objective in this dissertation was to understand the processes leading to incompletion of the high profile cross-border deals. A conceptual framework was developed which suggests that announcement of a cross-border merger and acquisition (M&A) deal starts a string of institutional processes that leads to incompletion of the bid. I proposed that less powerful host country actors threatened by the MNC’s bid proposal politicize the transaction turning the deal into a transgression. These actors publicize this transgression, initiating a scandal, to gather support of multiple audiences in their attempts to thwart the threat that the MNC poses. Thanks to their efforts in appealing to audiences and publicization of the deal as a transgression, these actors mobilize audiences who reveal hostile reaction against the MNC and the proposed bid. Such mobilization and hostile reaction, in turn, lead to proposed bid’s incompletion. Qualitative analysis results based on a sample of seven high profile cross-border transactions provided support for the conceptualized processes, namely politicization, scandal, mobilization and hostile reaction, while indicating a different order of process progression compared to the linear one conceptualized. I found that in all cases the process of scandal subsumed the other processes that kept scandal alive. In turn, scandal fed these processes giving more leverage to the mobilization efforts and/or increasing the hostility of the actors opposing the deal. The findings revealed that these processes happened simultaneously and that in cases where mobilization did not emerge, hostile reaction substituted for the lack of mobilization. Additionally, analysis showed that not only less powerful actors but also powerful actors, elites, sought to initiate a scandal when the host country political, legal or bureaucratic processes did not work for them in thwarting the deal. This dissertation by examining social construction, power and politics within the host country institutional environment in the context of high profile cross-border deals, presented a framework that explained how and why the hostility leading to deal incompletion emerges in the host country. In so doing, this dissertation strengthens institutional theory, theory of scandal, social movements theory and elite theory as powerful perspectives in international strategic -management. / Includes bibliography. / Dissertation (Ph.D.)--Florida Atlantic University, 2014. / FAU Electronic Theses and Dissertations Collection