Purpose -The paper aims to examine the process of de-internationalisation through an analysis of British Telecommunications' (BT's) experience. There is -to date -little research upon de-internationalisation, this paper aims to contribute to the debate through assessing how businesses with a strong domestic position would respond to a turbulent commercial environment. Design/methodology/approach -The key research issue is addressed in the paper via the use of a single case study. Findings -The paper finds that BT, throughout the 1990s, developed an aggressive global strategy. However, by the 1990s, BT was in a process of retreat. This failure was influenced by the form and nature with which this strategy was executed, which resulted in a declining commitment to an aggressive global strategy. With the failure of the global strategy, BT reverted to a more defensive corporate strategy. Originality/value -The paper makes a contribution through adding to an emerging debate on the form and nature of de-internationalisation. This process is explored from the standpoint of a business that has sought to pursue an aggressive international strategy whilst sustaining a commitment to a strong domestic position. The paper highlights how de-internationalisation is linked into the form and nature initial strategy.
PurposeThe purpose of this paper is to examine deinternationalisation through the lens of coevolutionary theory. The intention is to offer a fuller understanding of the processes and strategic challenges involved in this process and establish a path for future research in this area of internationalisation theory.Design/methodology/approachThe paper draws links between emerging themes in organizational theory and internationalisation to aid the conceptual development and understanding of the process of deinternationalisation.FindingsThe exploration of links between organizational theory and internationalisation allows for the process of deinternationalisation to be more fully distinguished. The paper identifies processes of managed selection and retardation that will inform this process of organizational change.Research limitations/implicationsWhilst there are concerns over the applicability of concepts from natural sciences within the social sciences, the paper does offer a number of research propositions to guide future academic investigation within the field of deinternationalisation.Originality/valueBy linking research on coevolution to the study of internationalisation, the paper contributes to the understanding of the emergence of differing paths and trajectories involved in the process of international contraction and expansion. Furthermore, coevolutionary theory allows the process of deinternationalisation to be conceptualized as a means of generating and guiding future study on this under‐explored area of internationalization research.
This paper investigates the development of domestic sourcing by foreign-owned subsidiaries (FOS) in the UK. The regional development and international-business literatures are used to develop a conceptual framework on the links between autonomy, the use of networks, and domestic sourcing. Data from a survey of German, French, and US FOS in the UK is used to test the model. The results indicate that increased use of networks and increased operational decision-making autonomy are associated with increased domestic sourcing, but that only a minority of FOS are increasing their use of domestic sourcing. The growing importance of global sourcing is considered as a possible explanation for the low proportion of FOS that are increasing their use of domestic sourcing. The implications for regional-development policy of the findings are also assessed.
Between 1999 and 2002, Cable and Wireless (C&W) undertook a radical strategic repositioning as it sought to become more focused on key growth markets. Due to a combination of a declining external environment and an inadequate external environment, this process of strategic change failed to establish the company as an Internet powerhouse. ᭹ This article examines the strategic repositioning undertaken by Cable and Wireless throughout the period 1999 to 2002. It scrutinizes how the company has sought to transform itself from an integrated communications provider, covering many segments in many different locations, into a more focused operator targeting a specific commercial segment.᭹ The major problems that the company encountered in this process of change are examined, notably in terms of the limit to strategies based on the perceived benefits of strategic focus. It concludes with an examination of what lessons can be learnt from its experience of strategic change.
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