Overcoming the challenges of product management in the international market

The core of a firm’s international operations is its products or services. Its success depends on the quality offered and the differentiation from its competitors. To the consumer, any product is a cluster of value satisfactions. The perception of value differs across cultures around the world. For example, in Latin America, a product produced by an American brand tends to hold greater value than something similar produced by a Latin American brand. This does not mean that the product produced by the Latin America brand is in any way inferior in quality or appearance, but that perception creates different values. Here, I explore the challenges facing product management and offer an example from Apple’s recent launch of the iPhone X.

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Trump administration goes after China over intellectual property, advanced technology

Michael R. Czinkota

U.S. President Donald Trump, flanked by U.S. Representative Darrell Issa (R-CA) (L), Treasury Secretary Steven Mnuchin (3rd R), U.S. Trade Representative Robert Lighthizer (2nd R) and Commerce Secretary Wilbur Ross (R), finishes signing a memorandum directing the U.S. Trade Representative to complete a review of trade issues with China at the White House in Washington, U.S. August 14, 2017. REUTERS/Jonathan Ernst

President Trump signed a Presidential memorandum asking the United States Trade Representative (USTR) to investigate China’s laws, policies, practices, and actions and their effect on the U.S. economy. It will likely trigger an investigation into China’s alleged theft of U.S. intellectual property.

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Birmingham Insights on Asia – (4) International Strategic Alliance Performance (High Technology Industry in Taiwan)

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This comment is based on Jo-Chun Chieh’s Dissertation written under the supervision of Prof. Michael Czinkota at the University of Birmingham, UK.

3, Organizational culture differences have more influence than national culture differences on International Strategic Alliance (ISA) performance, from the Taiwanese managers’ perspective. Two of the organizational cultural dimensions, professional and pragmatic orientation, ranked as the first two elements of importance when cooperating with a foreign partner, while two of the national cultural dimensions, uncertainty avoidance, long-term orientation, was ranked subsequently. Pothukuchi et al. (2002) addressed a similar concept with differences in organizational culture, compared to differences in national culture, considerably facilitating conflict and impeding cooperation between alliance partners.

4, The study justifies  that ISA practice indeed significantly interferes with the relationship between culture differences and iSA performance. John (1984) indicates that long and sticky partnership between cooperative enterprises reduces that potential for opportunistic behavior while the dissolution of a partnership often leads to poor decision-marketing, interaction and management of inter-organizational relationships. Complementary resources, absorptive capacity, commitment, and trust are important willingness to work together (Day & Klein, 1987). This partnership can evolve positive or negative consequences, depending on how Taiwanese managers implement their managerial practices with foreign partners.

 

Related Article: Birmingham Insights on Asia – (3) International Strategic Alliance Performance (High Technology Industry in Taiwan)

Birmingham Insights on Asia – (3) International Strategic Alliance Performance (High Technology Industry in Taiwan)

birmingham-clipart-256

This comment is based on Jo-Chun Chieh’s Dissertation written under the supervision of Prof. Michael Czinkota at the University of Birmingham, UK.

The study investigated the perspective of Taiwanese managers, thereby examining the impact of national and organizational culture differences and International Strategic Alliance (ISA) practices on ISA performance. Four findings can be concluded as follows.

1, National culture differences partly influence ISA performance, especially in the uncertainty avoidance and long-term orientation dimensions. This finding corresponds to one of the cultural functions proposed by Schneider (1989). He states that culture serves two functions, to solve external adaptation and internal integration problems. Uncertainty avoidance and long-term orientation especially impact on external adaptation. In other words, Taiwanese managers in the high-technology industry emphasize and are good t coping with opportunities and threats from the external environment, as well as being good at developing ISA strategies with foreign alliance partners. on the other hand, power distance, individualism and masculinity influence employee relationships within an organization.

2, Organizational culture differences also partly influence ISA performance, especially in professional and pragmatic (market -oriented) dimensions. Kasper (2001) associates corporate culture and market orientation, claiming that “market oriented organizations are open, employee-oriented, results-oriented, pragmatic, professional…”. This finding reflects that Taiwanese managers in the high-technology industry emphasize the importance of building objectives and obtaining new knowledge when cooperating with ISA foreign partners. Kasper (2001) also associates innovation, stating that customer contacts and customer participation in the R&D procedure are the basis of innovation. This notion implies that Taiwanese managers have high consciousness about global competition and pay attention on balancing innovation and market orientation.

Stay tuned for two more conclusions on our next Birmingham Insights on Asia.

Global Update: Samsung versus Apple – The Race Continues

Samsung unveiled its new watch-phone, the Galaxy Gear, today headlining the innovation of “wearable” devices. For the most part, Samsung used to be seen as lurking in the shadows of Apple, constantly following their innovation instead of creating its own. Today, the tables have turned as Samsung beats Apple in launching its smartwatch.

The Galaxy Gear is expected to be in stores as of September 25th at the price of $299. However, Samsung is not the first to launch such a product. Pebble began selling its smartwatch online back in January 2013 and from stores this past July. Apple is expected to release a similar product as well as Sony. These devices function in conjunction with specific smartphones or even an iPod touch in order to allow for more convenient uses.

What is your opinion on the new Galaxy Gear? Is Apple really falling behind? Post your views in the comment section below!