When the Tourists Flew In: Strategic Implications of Foreign Direct Investment in Vietnam’s Tourism Industry
Usha C.V. Haley, Managing Business in Asia Program, The Australian National University, Australia, and George T. Haley, School of Marketing & International Business, Queensland University of Technology | Tourism forms the largest industry in the world and the Vietnamese government has targeted it for strategic foreign direct investment (FDI). Although researchers and policy makers comprehend particular aspects of tourism, they often misperceive how the variables interact within economic and political systems. In this paper, we elaborate on experiences in similar and related Asian markets that indicate policies necessary to develop a sustainable, socially and ecologically-desirable tourism industry through appropriate balancing of key stakeholders’ goals. First, we define sustainable development in the context of tourism and indicate its relevance for Vietnam. Next, we analyze some economic and social costs and benefits associated with tourism; we also interpret recent governmental policies’ influences. Finally, we provide policy recommendations for the future of sustainable and economically-viable national tourism development in Vietnam.. | A Strategic Perspective on Overseas Chinese Networks' Decision-Making
George T. Haley, School of Marketing & International Business, Queensland University of Technology | Researchers and managers have assumed that the Overseas Chinese Business Networks do not conduct strategic planning. This paper generally summarizes the literature on the Overseas Chinese Networks’ decision-making style and compares it with perspectives from established schools of strategic planning. Specifically, the paper enhances understanding of the Overseas Chinese Networks’ business style, generates awareness of the style’s strengths and weaknesses, and explores strategic implications for foreign multinational corporations that enter into alliances with, or compete against the Overseas Chinese Networks. | Skills for Successful International Assignments to, from and within Asia and the Pacific: Implications for Preparation, Support and Training
Gary Fontaine, Department of Communications, University of Hawaii at Manoa | This paper first makes the case that effective preparation, support, and training for international assignments to, from or within Asia and the Pacific need to be based on sound models of the skills required to meet the challenges of those assignments for the assignees themselves, their families accompanying them, those managing them, and the hosts with whom they are working. The paper then presents the characteristic ecologies encountered on these international assignments; identifies copying with ecoshock, developing strategies to effectively complete essential tasks in a new ecology, and maintaining motivation as the three key challenges faced in those ecologies; and describes the skills useful in dealing effectively with these challenges. Finally, the implications for intervention programs to assist assignees in acquiring these skills and an illustrative training program outline are presented.. | East Asia as An Independent Engine of Growth: Prospects and Implications for Managers
Kong-Yam Tan, Department of Business Policy, National University of Singapore | Since the mid-1980s, substantial deregulation and competitive liberalization of the Southeast Asian economies in their trade and investment regime have resulted in greater integration of their economies with the Northeast Asian economies. Together with rising purchasing power of the expanding middle class, massive infrastructural development as well as the expansion in intra-regional trade and investment, East Asia has emerged as an independent centre of growth in the global economy since the early 1990s. This paper presents empirical evidence on the rise of this autonomous growth momentum. No longer a mere wagon hitched to the locomotive of the US and European economy, East Asia's emerging independent engine of growth has tremendous implications for executives of multinationals keen to expand market share and form strategic alliances with companies in East Asia. It also has implications for fund managers in the OECD countries keen to look to the region for asset diversification and higher returns. | An Examination of Strategic Foreign Direct Investment Decision Processes: The Case of Taiwanese Manufacturing SMEs
Ho-Ching Wei, and Chris Christodoulou, Centre for Organisational and Strategic Studies, Swinburne University of Technology | Due to the worsening business environment in Taiwan in the 1980s, many manufacturing enterprises, the majority being labour-intensive small and medium-sized enterprises (SMEs), were moving out to other developing countries. This paper explores how owner managers in the Taiwanese Electronic and Electric Appliances industry make an FDI decision. Two semi-structured questionnaires were designed to gather data about the respondents' decision making processes. The field research was undertaken in Taiwan by personal interview over a period of three months and in total thirty-five companies participated. A company's internationalisation experience and its size in terms of sales significantly influence the likelihood of a positive FDI decision. The likelihood of a positive FDI decision is also affected by an owner manager's personal characteristics. In addition the decision maker appears to be influenced by their friends and partners. The companies who make a positive FDI decision perceive the work ethic in Taiwan as deteriorating. Seventy-eight per cent of the most recent FDIs are in China, the major benefits being sought are low production costs and abundant labour supply. The most important reason for selecting China as the host country is the same language and cultural similarities. Most FDIs are to produce product which has a price advantage, hence the FDI creates a vertical integration with the mother company in Taiwan. It seems that Taiwanese manufacturing SMEs will continue investing overseas to seek competitive advantages. | Defending against MNC offensives: Strategy of the Large, Domestic Firm in a Liberalizing Economy
Ranjan Das, Strategic and International Management, Indian Institute of Management (Calcutta) | Waves of liberalization are blowing across developing countries leading to the creation of new opportunities for multinational corporations (MNCs). MNCs respond to such new opportunities with a set of offensive moves that can give them a salient position in the newly liberalized economy. Domestic firms in India respond to the offensives through a combination of three broad responses and clear emphasis on achieving pre-emptive market position, attaining a critical size, creating national brands, exploiting national competitive advantages, adopting best international practices and altering core values. |
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