the High

Taking the
Taking When
Road When
High Road
Going International
Going Interna tional
Joseph A.
Joseph and
Monti o
A. Monti n d George S. Yip
George S. Yip

C
ompanies around
ompanies the world
around the seeking
are seeking
world are in the $50
in the million to $250
$50 million $250
to expand driven by
overseas, driven
expand overseas, fac-
such fac—
by such million range
million range in annual rev-
in annual rev-
tors as
tors low-cost labor,
as low-cost and
privatization, and
labor, privatization, enues, they
enues, they lack the re-
lack the re-
technological innovation. But
technological innovation. success is
But success elusive.
is elusive. sources to deal
sources properly with
deal properly with
AU U.S. equipment company
construction equipment
S . constmction company had had potential problems. B
potential problems. Byy wayway
initial competitive
initial advantages in
competitive advantages technology and
in technology and contrast, existing
of contrast, multina-
existing multina-
lower compared tto
costs compared
lower costs o its European competi-
its European competi- tional companies (MNCs)
tional companies (MNCS) can
can
tors. But itit took
tors. took thethe easy exporting only
path of exporting
easy path bring both extensive experi—
both extensive experi-
and never
and invested in
never invested customizing its products
in customizing products ence and
ence resources to each
and resources each
for the
for European market
the European market or setting up
or setting local op—
up local op- new international venture.
new international venture.
erations. Today
erations. Today itit has achieve its early
failed to achieve
has failed early (The smallest U.S.
(The smallest Fortune
U.S. Fortune
success and
international success
promise of international
promise remains a
and remains 500 company had
500 company about $2
had about $2
marginal player.
marginal player. billion in
billion revenues in
in revenues 1999).
in 1999).
Another
Another U.S. producer o
U.S. producer commercial security
off commercial security Another
Another way way tto succeed
o succeed
systems initially
systems entered the
initially entered European market
the European market by by in business is to start
international business
in international with a
start out with
taking the
taking relatively easy
the relatively easy path exporting to the
path of exporting the strong advantage, such
competitive advantage,
strong competitive such as as loyal cus-
loyal cus-
United Kingdom, a market
United Kingdom, market that offered many
that offered many tomers, superior products
tomers, superior services, more
products or services, effec-
more effec-
similarities. Eventually, the
similarities. Eventually, company realized
the company realized itit tive systems, assets
business systems,
tive business assets and resources, part-
and resources, pan-
had take a
had ttoo take a bigger step and
bigger step venture into
and venture less
into less ners, economies o
ners, economies scale or
off scale scope, and
or scope, and so on.
so on.
waters. ItIt bought
charted waters.
charted bought a French com-
major French
a major com- The company can
The company then leverage
can then leverage this advantage
this advantage
petitor whose
petitor product line was
whose product complementary to
was complementary into markets. When
foreign markets.
into foreign Corporation
When Lotus Corporation
its own U.S.
its own U.S. line, and whose
line, and technology was
whose technology was was still quite
was small in
quite small 1980s itit was
the 19805,
in the able to
was able
superior. After
superior. After some years o
some years post-merger prob—
off post—merger prob- internationalize rapidly
internationalize because itit had
rapidly because had a domi-
a domi-
lems and
lems and learning compete in
learning to compete in the Euro-
entire Euro-
the entire nant advantage-the
nant advantage—the leading spreadsheet pro-
leading spreadsheet pro-
pean market, the
pean market, company now
the company enjoys a strong
now enjoys strong gram IBM-compatible personal
gram for IBM-compatible computers.
personal computers.
and established international
and established business.
international business. According to Yoffie
According Yoffie and Coleman (1987),
and Coleman was
this was
(19871, this
Why did
Why did the company fail and
the first company and the sec-
the sec- despite a relatively
despite internationalization
haphazard internationalization
relatively haphazard
oond succeed? Newly
one succeed?
n d one internationalizing com—
Newly internationalizing com- process. More
process. Microsoft and
recently, Microsoft
More recently, Amazon.
and Amazon.
panies face
panies face many difficulties. Most
many difficulties. achieve
Most fail, or achieve com have also
corn have been able
also been expand abroad
able to expand very
abroad very
only success. This
marginal success.
only marginal This is particularly true,
is particularly not
true, not rapidly. But
rapidly. But most companies do not have
most companies the
have the
at the
at internationalization stage
initial internationalization
the initial stage o sending
off sending dominant advantages o
dominant advantages off a Lotus, a
a Lotus, Microsoft, or
a Microsoft, or
out some exports, but at the
some exports, the next stage of real
next stage real an Amazon.com. So
an Amazoncom. international success
So international success de-de-
global commitment:
global commitment: making a international
ann international pends on the
pends combination of both
the combination com-
initial com-
both initial
investment. Such
investment. investments can
Such investments take the
can take form
the form advantages and
petitive advantages and the internationalization
the internationalization
of sales offices, equity
sales offices, acquisitions,
investments, acquisitions,
equity investments, process (see
process (see Figure
Figure 1). Indeed, the
1). Indeed, less dominant
the less dominant
alliances, and
alliances, and the Primarily two
the like. Primarily problems
two problems a company’s competitive advantage,
company’s competitive advantage, the more it
the more
hamper companies.
hamper companies. The first is
The first inexperience.
is inexperience. has tto
has work at
o work internationalization process.
the internationalization
at the process.
Companies going
Companies global face
going global face the problem of
the problem Because of a lack
Because experience and
lack of experience and limited
“unknown unknowns”-they
“unknown unknowns”—they don’t know
don’t know What what resources, the
resources, managers of newly expanding
the managers expanding
they don’t know. Any one
they one or more numerous
more of numerous companies often
companies complain that
often complain cannot take
they cannot
that they take
differences in
differences international markets
in international markets can them
trip them
can trip a thorough approach
a thorough approach tto o internationalizing. Rather,
internationalizing. Rather,
uup. Second, being
p . Second, typically smaller
being typically smaller firms, perhaps
firms, perhaps they must
they must take shortcuts, or
take shortcuts, or the while
road,” while
“low road,”
the “low

Taking the
Taking High Road
the High Going International
When Going
Road When International 65
 enterprise faces
ment. At each way station, the enterprise faces
Figure 11
Figure critical decisions that affect
critical affect performance
performance (see
Success Formula
Success Formula for
for Intematlonalization
Internationalization
Figure 2). These decisions essentially
Figure essentially involve
involve
taking either
taking either a “high road” approach
approach or a “low
road” approach
road” approach at
at each
each point.
point. As
As we
we will
will demon—
demon-
initial
the high
strate, the high road
road gets
gets better
better long-term
long-term results,
Competitive
Advantages whereas the
whereas the low
low road
road can
can obtain
obtain quicker,
quicker, easier
easier
results but usually
results usually at the
the expense
expense of not building
building
sound long-term
a sound long-term position.
position.

I SUCCESS
SUCCESS
I Way Station
Way Station 1:
1: Planning
Planning the
the Trip
Trip

Sound Companies need

Companies need to think
think strategically
strategically about
about inter-
inter-
Internationalization nationalization. The
nationalization. The objective
objective is
is ttoo leverage
leverage core
core
Process
Process
J competencies into
competencies into under-served market opportu-
under-served market opportu-
nities Here
nities. Here the
the high
high road
road approach
approach means
means be-
be-
ing proactive:
ing proactive
the large
the large MNCs
MNCs taketake the
the “high road.” However,
However, Anticipating the
0l Anticipating customers and
the needs of customers and
our study
our study ofof the
the experiences
experiences of of 60 U.S.-based
60 U.S.-based preparing
preparing to meet
meet their
theirfuture
future requirements better
better
newly internationalizing
newly internationalizing companies
companies demonstrates
demonstrates than competitors can.
than mid-sized assembler
can. A mid-sized assembler of
that such firms
firms can indeed take the high road cables, in business
computer cables, business since
since the early
achieve high
and achieve high levels of success. They can can do 197Os, reinvents itself
19705, itself as a cellular
cellular phone
phone battery
battery
following what
this by following what we call
call the
the “Way Station” pack assembler. The company
pack company distinguishes
distinguishes itself
itself
approach to the internationalization
approach internationalization journey.
journey. international customers by assist-
among its new international assist-
them in defining
ing them defining and designing
designing products
products for
THE WAY
THE WAY STATION
STATION APPROACH
APPROACH the future.
the future. It uses
uses a process of continuous
continuous inno-
inno-
vation that includes
vation includes gathering
gathering input
input up and down

A
number of models
number models have
have attempted
attempted to value chain.
the value chain.
establish how
establish how companies
companies should
should inter-
inter- 0l Researching markets thoroughly to deter-
Researching markets deter-
nationalize. We
nationalize. We have
have synthesized
synthesized the mine the winning
mine winning position. small plastic
position. A small injec-
plastic injec—
best these models
best of these models in developing
developing thethe Way Sta- tion molding
tion molding firm with the the intention
intention of following
following
approach. As a metaphor,
tion approach. metaphor, we we liken
liken enter—
enter- its best Global 500
best Global 500 customers
customers into
into Mexico
Mexico had to
prise internationalization to a journey
prise internationalization with four
journey with four prove itself worthy
prove itself worthy of thethe Latin American
American busi-
busi-
way stations,
way stations, oorr critical
critical internationalization
internationalization steps:
steps: ness before
ness receiving any
before receiving any new
new orders.
orders. The
The com-
com-
planning
planning thethe trip, selecting
selecting the
the mode
mode of transport,
transport, pany
pany not onlyonly did its homework
homework on the the Mexican
Mexican
dealing with
dealing with roadblocks,
roadblocks, and makingmaking a commit—
commit- market-surveyed
market—surveyed existing customers,
all existing customers, con-
con-

66 Business Horizons
Business Horizons / July-August 2000
/July-August 2000
 all research
ducted all
ducted research in face-to-face meetings,
in face—to-face con-
meetings, con—
legal requirements,
sidered tax and legal
sidered requirements, and on-it
so on—it
and so Figure 22
Figure
established a new
also established
also there and began
location there
new location began The Internationalization Journey
Internationalization Journey
production for U.S.
moving production
moving U.S. customers Mexico
customers to Mexico
the new
give the
ttoo give new plant the necessary
plant the training and
necessary training and
tuning opportunity.
tuning opportunity. By By the time the company company
approached its
approached its U.S.
U S . customers’ buyers iinn Mexico,
customers’ buyers Mexico,
had a proven
it had operation in the
proven operation market that
local market
the local
managers could
managers could point
point to, and it won
to, and won the the business
business
quickly. Moreover,
quickly. Moreover, the discovered aa
company discovered
the company
tremendous cost
tremendous advantage to manufacturing
cost advantage manufacturing in
Mexico instead
Mexico instead of the United
of the States, aand
United States, n d it contin-
it contin-
ued to shift production
ued production southsouth of the the border.
border.
Leading with
0l Leading manufacturer of
strengths. A manufacturer
with strengths.
industrial boilers
industrial boilers designed primarily for process-
designed primarily process- PERFORMANCE
recognized that its product
industries recognized
ing industries product line was
line was
unique
unique in the the United Fewer than
States. Fewer
United States. handful
than a handful
competitors were
of competitors were as narrowly focused. This
narrowly focused. This
allowed the
allowed the company develop aa technology
company ttoo develop technology
barrier around its product
barrier around product line along with
line along with a
strong brand
strong image. By
brand image. hiring a single
By hiring distributor
single distributor
managed to expand
Europe, it managed
in Europe, expand that market market
rapidly because
rapidly because of lack of
the lack
of the competition aand
of competition n d its
technological superiority.
technological installed base
superiority. As its installed base
grew, the
grew, company was
the company able to justify
was able justify the start-up
the start-up
manufacturing and service
European manufacturing
of a European facility.
service facility.
Gradually, local
Gradually, competitors caught
local competitors caught up u p with the
with the
technology, but
technology, but byby then company was
the company
then the was n no
o E u r o p e , aand
Europe, nd A s i a ) , aall
Asia), l l of which were
of which entered
were entered
longer company. It had become
“American” company.
longer an “American” become within five-year period.
within a five—year period. Consequently, ended
Consequently, it ended
local, allowing
local, allowing it to react aggressively and remain
react aggressively remain uupp in the low-margin end
the lowemargin the business
end of the business and at
competitive.
competitive. volumes that did not
volumes allow it to capture
not allow the pro-
capture the pro—
success broadly, setting
0l Defining success lofty goals,
setting lofty duction economies of scale
delivery economies
duction and delivery en-
scale it en-
n d establishing
aand immediate targets.
establishing immediate earli-
From its earli-
targets. From joyed
joyed in the United States.
the United the time
States. At the time of our
internationalization days,
est internationalization ambitious
Honda set ambitious
days, Honda study, neither European nor
the European
neither the subsidiary
Asian subsidiary
nor Asian
targets for both
global targets
global auto-
motorcycle and auto—
both its motorcycle was showing a profit
was showing profit after years.
after two years.
mobile businesses-and
mobile businesses—and then than met
more than
then more lower-cost markets. A
labor to lower-cost
-l Exporting labor
those targets.
those targets. long-standing apparel
long-standing manufacturer expanded
apparel manufacturer expanded
In contrast, the low
contrast, the low road approach to plan-
road approach plan- overseas, initially iinn Korea
overseas, initially Korea andand later throughout
later throughout
nning
i n g the means bbeing
trip means
the trip reactive:
e i n g reactive. Asia, to lower
Asia, labor costs.
lower its labor company now
The company
costs. The now
Relying on personal
-l Relying gut feel-
personal experience, gut feel- finds unable to rise
itself unable
finds itself low-margin,
above the low-margin,
rise above
ings, aand
ings, evidence. A
anecdotal evidence.
n d anecdotal manufacturer of
A manufacturer of private-label, piece-part
private-label, piece-part business because it
business because has
it has
valves, intent oon
valves, intent entering the
n entering continen-
European continen-
the European not built the quality processes and work
the quality force
work force
market from
tal market English-speaking base
from an English-speaking base in thethe required higher-end retail
required by higher-end course,
buyers. Of course,
retail buyers.
U.K., relocated
U.K., only to find that strict commercial
relocated only commercial many companies have
many companies successfully gone
have successfully overseas
gone overseas
zoning laws
zoning prohibited it from
laws prohibited expanding its
from expanding seeking cheaper
seeking cheaper labor. these companies,
labor. But these companies,
newly manufacturing facility.
acquired manufacturing
newly acquired Eventually
facility. Eventually including Nike
including Nike aand already had
Levi-Strauss, already
n d Levi—Strauss, had
it was able
it was to find
able to business-friendly juris-
more business-friendly
find aa more juris- other sources
other sources of competitive advantage, such
competitive advantage, such as
diction iinn Ireland,
diction Ireland, thereby meeting its
thereby meeting operational
its operational branding.
styling and branding.
styling
ill-conceived false
objective. But the ill-conceived
objective. cost the
false start cost the I. Choosing markets based solely on cultural
markets based cultural
company hundreds of
company hundreds thousands of
of thousands dollars iin
of dollars n similarities. To
similarities. To b bee oon
n the safe many U.S.
side, many
safe side, U.S.
unnecessary transaction ccosts,
unnecessary transaction relocation ccosts,
o s t s , relocation osts, companies set foot
companies only in Canada
foot only Britain, but
Canada or Britain,
opportunity costs
and opportunity from the
costs from the delayed entry.
delayed entry. learn correspondingly less
learn correspondingly about how ttoo conduct
less about conduct
Responding only to immediate
-l Responding opportunities
immediate opportunities business abroad.
business international
abroad. A firm is not truly international
presented by customers oorr competitors.
presented competitors. One large
One large managers have
until its managers contract in
negotiated a contract
have negotiated
company iin
company n the services industry
software services
the software felt
industry felt China while hundred-year-old eggs.
eating hundred—year—old
while eating eggs.
pressured follow its
pressured ttoo follow largest clients
its largest overseas,
clients overseas, While the above
While reactive strategies
above reactive can often
strategies can often
aand thus found
n d thus forced into
itself forced
found itself markets not
into markets not of of work internationalization, they
work at the start of internationalization, they are
choosing and earlier
its choosing earlier than it was prepared for.
was prepared insufficient for sustained
insufficient Companies
success. Companies
sustained success.
The company could
The company could not affordafford to build adequate
build adequate need to aadd d d the more proactive strategies aass they
proactive strategies they
sales infrastructure iin
sales infrastructure n the new markets
the new (Canada,
markets (Canada, pplan thoroughly for their
l a n thoroughly ventures.
overseas ventures.
their overseas

T a k i n g tthe
Taking High Road
h e High When G
Road When o i n g International
Going International 67
67
 Selecting the
Station 2: Selecting
Way Station Mode
the Mode following aand
Simply following
08 Simply relying oonn aa single
n d relying
Transport
of Transport customer oorr aa few
customer customers. Many
few customers. suppliers find
Many suppliers
easy to follow
it easy follow a large overseas and
customer overseas
large customer
How company chooses
How a company enter a country
chooses to enter country or set up serve just
operations to serve
u p operations customer. But
just that customer. But
market—through aa joint
market-through venture, aan
joint venture, acquisition,
n acquisition, supplier makes
unless aa supplier
unless efforts ttoo diver-
serious efforts
makes serious diver-
or a direct investment-is
direct investment—is the most im-
second most
the second im- base, it will
customer base,
sify its customer rapidly become
will rapidly become
portant decision in the
portant decision internationalization jour-
the internationalization jour- captive medical device
dependent. A medical
captive and dependent. com-
device com-
ney.
ney. Here the high
Here the high road
road approach means being
approach means being pany manufactured non-invasive
pany manufactured non-invasive insulin testing
insulin testing
driving position:
in a driving position: equipment. While awaiting
equipment. While awaiting FDA on the
approval on
FDA approval the
Maintaining more tthan
0l Maintaining h a n 50 percent control
50percent e v i c e , aand
ddevice, under pressure
n d under pressure from shareholders
from shareholders tto
o
the decision—making
of the process. In its early,
decision-making process. suc-
early, suc- generate revenue,
generate the technology
licensed the
revenue, it licensed technology to
cessful internationalization efforts,
cessful internationalization Motors
General Motors
efforts, General aan which iinn turn
distributor, which
Italian distributor,
n Italian the
demanded the
turn demanded
nearly always used
nearly always wholly owned
used wholly subsidiaries.
owned subsidiaries. freedom to develop
freedom the entire
develop the entire European market,
European market,
customer base
Quickly diversifying the customer
0l Quickly base be-
be- at for aa period
least for
at least period of of time. Consequently, tthe
time. Consequently, he
yond the
yond customers that
the existing customers were initially
that were initially manufacturer had,
manufacturer delegated its
essence, delegated
had, iinn essence, Euro-
its Euro-
followed overseas. In the late 19805,
the late supplier of
198Os, a supplier pean
pean roll-out marketing strategy
roll-out and marketing another
strategy to another
services to the
services semiconductor industry
the semiconductor followed
industry followed company.
company.
largest and almost
its largest customer to Germany,
only customer
almost only Germany, All these
All may work
strategies may
riding strategies
these riding work forfor aa
setting u p aa state—of—the-art
setting up p e r a t i o n tto
state-of-the-art ooperation serve tthe
o serve he while, but
while, eventually most
but eventually companies regret
most companies regret it if
it if
customer exclusively. The
customer exclusively. quickly
manufacturer quickly
The manufacturer they have
they have locked international
themselves out of international
locked themselves
took advantage of its captive
took advantage drove
supplier and drove
captive supplier Many professional
control. Many
control. professional service such as
firms, such
service firms,
delivery aand
delivery n d price requirements down
price requirements down ttoo aan n eeco-
co- accounting concerns,
consulting concerns,
engineering consulting
accounting oorr engineering
nomically unsustainable
nomically unsustainable level. Although the
level. Although com-
the com- find easy path
the easy
that the
find that overseas was
path overseas through
was through
pany managed to
pany managed non-ownership agreements with
non-ownership agreements independent
with independent
identify alternative
identih alternative local partnerships.
local partnerships. Th These firms now
e se firms find it
now find very
it very
customers quickly,
customers quickly, hard ttoo implement
hard implement the globally integrated
the globally strate-
integrated strate-
none existed in a ge—
none existed ge- gies required
gies required in the internationalization.
the era of internationalization.
ography that
ography that co uld be
could be partners put their
Local partners
Local their own interests first. So the
own interests the
well served from
well served from thethe farseeing company will
farseeing company will set uup immediate or fu-
p immediate
German plant.
German plant. Never-
Never- ture majority control
ture majority extent allowed
the extent
control ttoo the allowed by by
theless, in
theless, in aan effort ttoo
n effort local laws.
local laws.
e e p pace
kkeep with tthe
p a c e with he
technological advance-
technological advance- Way Station Dealing with
Station 3: Dealing Roadblocks
with Roadblocks
ment of
ment of its largest
its largest
customer, the
customer, the ccom-
om- Globalizing companies typically
Globalizing companies respond to
typically must respond
pany captured a
pany had captured strategic challenges
strategic modify operational
challenges and modify ap-
operational ap—
Huh—i- '
u proprietary
proprietary deliverydelivery proaches
proaches after have
they h
after they a v e entered foreign markets.
entered foreign markets.
technology to serve
technology serve Here the high
Here the road means
high road taking an anticipa-
means taking anticipa-
the industry.
the Although it
industry. Although it h diversify its
a d ttoo diversify
had geo-
its geo- approach:
toy approach:
tory
graphical base
graphical base once again, this
once again, time to the Philip-
this time Philip- Recognizing most
0l Recognizing most of the potential chal-
thepotential chal-
pines,
pines, it was
it w able to
a s able transfer its
to transfer technology easily
its technology easily lenges that will
lenges be faced iinn the new
will he market aand
new mar/eet nd
build share
and build share in new markets. Today,
new markets. despite
Today, despite being prepared Ken-
responses. Ken-
appropriate responses.
prepared with appropriate
nnoo longer servicing its
longer servicing its original customer, the
original customer, the tucky Fried Chicken
tucky Fried most of the prob-
anticipated most
Chicken anticipated prob-
supplier ranks
supplier ranks ssecond in the
e c o n d in worldwide market
the worldwide market lems face in entering
would face
lems it would China. 80
entering China. pre-
So it pre-
field.
in its field. pared accordingly. One
pared accordingly. took was
step it took
One step secure
was to secure
contrast to
IInn contrast t o the strategies of
driving strategies
the driving taking
of taking supply of
aa supply high-quality chickens
of high—quality taking oonn aa
by taking
chickens by
the high road, road, the low road approach
low road approach takes takes a local poultry producer
local poultry one of its joint
producer as one venture
joint venture
position:
riding position:
riding ppartners.
artners.
exerting control
Not exerting
0l Not than 50
due to less than
control due 50 Taking aa long-term
0l Taleing long-term view. Matsushita, oone
view. Matsushita, ne
percent ownership oorr aann unbalanced
percent unbalanced board of of of the
of globally successful
most globally
the most electron-
Japanese electron-
successful Japanese
directors. An architectural
directors. architectural firm, build a
seeking to build
firm, seeking ics companies,
ics companies, h 200-year strategic
a s aa ZOO-year
has plan. An-
strategic plan. An-
base, developed
pan-Asian base,
pan-Asian developed a single-project, infor-
single-project, infor- other Japanese firm,
other Japanese Softbank, h
firm, Softbank, has 400-year
a s aa 400-year
mal alliance with
mal alliance Malaysian partner.
with aa Malaysian than
Rather than
partner. Rather plan. Although the
plan. Although details of
the details plans get
these plans
of these get aa bit
bit
put the agreement writing, the two
agreement in writing, pro-
two firms pro- vague iin
vague the later
n the years, the
later years, fact of
the fact having tthem
of having hem
cceeded
e e d e d more less oon
more oorr less handshake basis.
n aa handshake basis. Not
Not sets aan
sets appropriate tone
n appropriate for all
tone for employees. Some
all employees. Some
only was
only was the U U.S. control the
unable to control
S firm unable Western companies have
Western companies hung oon
have hung n iinn JJapan even
a p a n even
costs aass they
project costs
project started ttoo rise,
they started valued
lost valued
it lost
rise, it after 40
after years of
40 years losses.
of losses.
property aand
intellectual property
intellectual n d its manager ttoo
project manager
its project In contrast anticipatory high road,
contrast to the anticipatory the
road, the
the partner at
alliance partner
the alliance the eend
at the of the
n d of and
project and
the project low approach means
road approach
low road means that companies are
that companies are
received n
received no compensation for
o compensation for the losses.
the losses. frequently surprised:
frequently surprised:

68 Business Horizons /July-August

Business Horizons /July-August 2000
2000
 0l Reacting challenges with responses that
Reacting to challenges must make
must make commitments on
commitments o n the
the basis of the
basis of host
the host
are developed or tested. During
not well developed
are not the Asian
During the Asian country’s global strategic
country’s global importance and not just
strategic importance just
crisis 1997 to 1999,
crisis of 1997 1999, many companies had no
many companies no its stand-alone importance. Motorola
stand-alone importance. has persis-
Motorola has persis-
contingency plans for
contingency plans the severe
for the downturn in
severe downturn tently invested in Japan
tently invested bolster its global
Japan to bolster com-
global com-
markets. All
markets. All they do
could d
they could was cut
o was run. In
and run.
cut and In petitive position,
petitive position, even though it
even though makes
it ma little
k es little
LMVH, the French
contrast, LMVH,
contrast, purveyor of such
French purveyor such money country.
money in that country.
goods as Louis
luxury goods
luxury Louis Vuitton luggage
bags and luggage
Vuitton bags Giving the new
0l Giving foreign venture
new foreign sufi‘icient
venture sufficient
and Meet
and Moét and Chandon champagne,
and Chandon instituted aa
champagne, instituted bearfruit.
time to bear This strategy
fruit. This may b
strategy may obvious,
bee obvious,
corporate-wide restructuring
region-wide restructuring
corporate-wide and region-wide but it needs be said
needs to be again and again.
said again Compa-
again. Compa-
plan ttoo ride
plan ride out tthe crisis.
h e crisis. nies cannot
nies expect instant
cannot expect when going
results when
instant results going
drawn into
Getting drawn
0l Getting into price
price wars rather than
wars rather than international. The PIMS Program
international. Program has calculated
has calculated
value wars.
value wars. A U.S. construction product
U.S. construction company
product company that new U.S.
that new domestic ventures
U.S. domestic require a
ventures require aver-
ann aver-
entered a bustling
entered bustling European
European market market duringduring a lull age seven years
age of seven years to become profitable. Foreign
become profitable. Foreign
market in
domestic market
its domestic
iinn its in the 1990s. The
early 19903.
the early The ventures ccan
ventures a n take at least
take at long.
that long.
least that
company’s excess
company’s capacity and strong
excess capacity capitaliza-
strong capitaliza- Seeking to bring
-l Seeking technology from
new technology
bring new from the
tion, combined
tion, combined with relatively weak
with a relatively dollar,
weak dollar, foreign venture
foreign operation. A
domestic operation.
back to the domestic
venture back
allowed it
allowed win a
to win
it to and build large
n d build large projects
projects at at sig-
sig- U.S. manufacturer of high-tech
U.S. manufacturer security systems
high-tech security systems
nificantly lower
nificantly costs. Yet the technology
lower costs. technology it had decided to enter
decided enter the European
European market acquir-
market by acquir-
developed iin
developed United States
n the United incorporated
States and incorporated ing oone
ing n e of competitors, aa French
chief competitors,
its chief
of its com-
French com-
into its U.S.
into contracts was
U.S. contracts was not exploited exploited in Eu- Eu- pany. Although
pany. Although designed defensive strategy,
designed as a defensive strategy,
rope. When
rope. recession of the mid—19905
When the recession mid-1990s hit acquisition led to the
the acquisition discovery of new
the discovery tech-
new tech—
Europe,
Europe, the company company lost what competitive
what little competitive nology that had enjoyed
nology commercial success
enjoyed commercial success in
edge it hhad low-cost position
a d as its low-cost position was quickly quickly the European
European market.market. This technology was
new technology
This new was
eroded. By
eroded. time, U.S.
By this time, technology had found
U.S. technology found quickly incorporated into
quickly incorporated company’s core
into the company’s core
its wayway to Europe through another
Europe through another suppliersupplier and domestic products,
domestic products, catapulting leading
catapulting it to a leading
the construction product
the construction product company company had no dis- position
position in the market.
U.S. market.
the U.S.
tinctive advantage. An
tinctive advantage. attempt to purchase
An attempt purchase a In contrast, the low road
contrast, the road means taking a
means taking
French competitor that was once
French competitor once strong
strong but was approach:
local approach:
local
now past past its prime
prime onlyonly served
served to compound compound the 0l Not build up the
investing to build
Not investing venture as aann
the venture
company’s losses.
company’s losses. In 1998,the
In 1998, company finally
the company finally integral
integral part portfolio, such
global portfolio,
part of the global such as by
exited Europe
exited Europe and decided decided to focus exclusively
focus exclusively developing local
developing capabilities. Mis-
managers and capabilities.
local managers Mis-
markets.
domestic markets.
on its domestic led by the seemingly similar
the seemingly culture of Britain,
similar culture Britain, a
Relying oonn outside
09 Relying outside advice advice of dubious dubious value.value. manufacturer from
manufacturer from the United States
the United imposed its
States imposed
common problem
A common problem comes comes from from hiring local
hiring a local operating quality system,
manuals, quality
operating manuals, human re-
system, human re-
consultant who
consultant who is knowledgeable about
is knowledgeable about the rel-
the rel- source policies,
source n d planning
policies, aand process oon
planning process newly
n aa newly
evant industry
evant industry in the the foreign
foreign country.country. Such con-
Such con- acquired subsidiary. Two years
U.K. subsidiary.
acquired U.K. years into the
into the
sultants, typically retired
sultants, typically executives, often
retired executives, take aa
often take venture, European sales
venture, European sales were still far
were still far below bud-
below bud-
tactical rather
tactical than a strategic
rather than strategic view view of what needs
what needs get
get and the com-
and the com-
tto o bbee ddone. entering company
o ne . The entering company has has to make pany
pany was hemor-
was hemor—
its own decisions decisions basedbased on a broad canvassing of
broad canvassing rhaging cash in
rhaging cash
advice. Another problem hhas
Another problem been to enter coun-
enter coun— Europe. It had
Europe.
advice.
based oon
tries based
tries n general
a s been
euphoria. Many
general euphoria. Western
Many Western failed to solicit
failed solicit
“The P/MS
“The PIMS Program
Program has has
companies got badly
companies burned in the ill-fated
badly burned 1990s
ill-fated 1990s policy input from
policy from calculated that
calculated that n new U.S.
e w U.S.
rush into Vietnam and Russia.
into Vietnam the U.K. managing
U.K. managing
rush
Sometimes companies
Sometimes
Russia.
companies have have tto react to
o react to sur-
sur-
the
director, indi-
director, aann indi-
domes tic ventures
domestic require
ventures require
prises,
prises, but anticipating them
but anticipating them is is even better. S
even better. Sun
un vidual who had
vidual who had aa an average of seven years
an average of seven years
Tzu, the ancient
Tzu, Chinese military
ancient Chinese strategist, said
military strategist, said employee
loyal employee to become
to become profitable. profitable.
itit first: “With many
first: “With a l c u l a t i o n s , oone
many ccalculations, a s some
n e hhas some following.
following. The
chance of victory.
chance victory. How How much much less chance has he
less chance he resulting commu-
resulting commu- Foreign venturesventures can take
can take
who makes
who calculations?”
makes no calculations?” nication gap
nication gap iinn least that
aatt least that long. ””
the newly
the interna-
newly interna-
Way Commitment
Station 4: Making a Commitment
Way Station tionalized com-
tionalized com-
pany breakdown in the
complete breakdown
created a complete
pany created trans-
the trans-
entering a foreign
After entering market, companies
foreign market, need
companies need continental supply
continental supply chain the company
chain the company hhad ad
tto
o decide whether to commit for
decide whether long tterm,
for the long erm, worked so
worked so hard to put place. In its next
put in place. next for-
for-
take advantage of short-lived
take advantage opportunities, or
short—lived opportunities, eign company created
acquisition, the company
eign acquisition, transition
created aa transition
exit because conditions. Here
adverse conditions.
because of adverse Here the plan
plan that included orientation tours
included orientation head-
U.S. head—
tours to U.S.
high road
high road means taking a global
means taking approach:
global approach: quarters for
quarters employees. It also
newly hired employees.
for newly del-
also del-
foreign venture as aann
Viewing the new foreign
0l Viewing egated operational policy
egated operational implementation to
policy implementation to
integral global strategy. A
piece of its global
integralpiece company
A company country managers.
country managers.

Takingthe High
Taking When Going
High Road When Going International
International 69
69
 'l Applying the sameperformance criteria to
same performance criteria erally average tto
erally average o low performers. But
low performers. high per-
But high per—
the new
the newforeign established domestic
venture as to established
foreign venture domestic formers were more
formers were likely to be
more likely active in the
be active the
businesses. Doing usual” can
“business as usual”
Doing “business can bebe analysis process
analysis process and to de—emphasize reliance on
de-emphasize reliance
anathema venture. Instead,
foreign venture.
anathema to a foreign new
Instead, the new sales
sales to existing customers, Because
existing customers. Because nearly all the
nearly all
should bbee judged
venture should
venture judged by criteria that
by criteria recog-
that recog- companies scored
companies high oon
scored high n following
following their cus-
their cus-
nize its
nize its start-up nature.
start-up nature. tomers, this
tomers, this last variable did
last variable did not discriminate
not discriminate
.l Exiting at tbe
venture at
Exiting the venture the first sign of
first sign between high
between high and low low performers.
performers.
trouble. In
trouble. the Asian
In the Asian crisis began in 1997,
crisis that began High performers
High performers were looking to capture
were looking capture
smaller
smaller companies tended to exit
companies tended early. In
exit early. con-
In con— economies of scale
economies scale and improve capa-
logistical capa-
improve logistical
trast, corporations such
larger corporations
trast, larger such as General Electric,
as General Electric, bilities. B y far,
bilities. By the strongest
far, the motivations for
strongest motivations for for-
for-
Coca-Cola, Procter
Coca—Cola, Procter & Gamble, a
& Gamble, and Germany’s
n d Germany’s eign expansion were
eign expansion explore foreign
were to explore markets
foreign markets
BASF
BASF used used the opportunistic in—
make opportunistic
crisis to make
the crisis in- that were growing faster
were growing faster than domestic ones,
than domestic ones, and
vestments.
vestments. to follow domestic customers
follow domestic abroad. These
customers abroad. These mo- mo-
Avoiding commitment ccan
Avoiding commitment work for
a n work while,
for aa w hile, tivations provided
tivations provided both benefits a
both benefits n d problems,
and problems,
eventually a globalizing
but eventually company has
globalizing company has to making foreign
making foreign entry also luring com-
easier but also
entry easier com-
make some
make some serious
serious investments. Shakespeare
investments. As Shakespeare panies
panies into other than
doing little other
into doing exploiting one
than exploiting one
put tide in the
“There is a tide
put it, “There affairs of men
the affairs men / / other of the two conditions.
or other more success-
The more
conditions. The success-
Which,
W at the
taken at
h i c h , taken the flood, leads oon
flood, leads n ttoo fortune.”
fortune.” ful companies used
ful companies these conditions
used these conditions as starting
starting
points
points and expanded oon
and expanded other reasons
n other reasons or bases
or bases
USE OF
USE THE WAY
OF THE STATIONS
WAY STATIONS for
for being overseas.
being overseas.

he data from from our study allowed us to

study allowed Use 2: Selecting
Station 2:
Way Station
Use of Way the Mode
Selecting the Mode of
assess how
assess how wellwell thethe Way model
Station model
Way Station Transport
Transport
T against the 68 firms
stands uupp against
stands firms we stud-
stud-
ied. These
ied. companies made,
These companies made, o onn average, only
average, only Our findings strongly
Our findings support the second
strongly support way
second way
moderate use
moderate use of the way stations. Nevertheless,
way stations. Nevertheless, station:
station: selecting transport. Indepen-
mode of transport.
the mode
selecting tbe Indepen-
there was
there was enough variation among
enough variation among them them o each
onn each dent of
dent country first
the country
of the first entered, high performers
entered, high performers
variable tto
variable between those
distinguish between
o distinguish making low
those making low maintained control. Successful
maintained control. Successful companies used
companies used
use various way
the various
use of the way stations
stations and those making
those making basic business decision
basic business decision drivers o select
drivers tto select the coun--
the coun
high them.
use of them.
high use try and entry their first
mode of their
entry mode international
first international
We could
We could also between those
distinguish between
also distinguish those venture. terms of the foreign
venture. In terms foreign entry vehicle, the
entry vehicle,
with performance iinn their
low performance
with low international op-
their international op- companies, as
companies, as aa group, made the
group, made most uuse
the most of
s e of
erations and those
erations with high
those with high performance.
performance. Com- Com- self-sufficient sales
self-sufficient offices, followed
sales offices, marketing
followed by marketing
paring
paring thethe scores
scores of low- compa-
high-use compa-
low- and high-use alliances, acquiring a local
alliances, acquiring company, and equity
local company, equity
nies and of low—
nies low- and high-performing companies,
high-performing companies, joint venture. They
joint venture. less use
made less
They made contract
use of contract
defined “high
we defined “high performers”
performers” as those those who be- be- manufacturing and franchising
manufacturing franchising or licensing agree-
licensing agree-
lieved that
lieved international operations
their international
that their improved
operations improved m e n t s . In
ments. choosing from
I n choosing among the
from among different
the different
the overall performance significantly
corporate performance
overall corporate significantly entry companies paid
modes, the companies
entry modes, paid most attention
most attention
(rating of 6 or 7 on our 7—point
(rating 7-point scale)
scale) and “low“low sales potential,
to sales potential, risk, cultural fit
risk, and cultural with poten-
fit with potene
performers”
performers” as those those who who felt international
felt that international tial partners. Finally, a significantly
partners. Finally, higher per-
significantly higher per-
operations did
operations little tto
did little improve performance
o improve performance centage of
centage performers felt
high performers
of high felt that ability
their ability
that their
less). High
(rating of 4 or less).
(rating High performers
performers made made u up p 54
34 transfer core
to transfer competencies to foreign
core competencies markets
foreign markets
percent of the sample,
percent sample, and low low performers
performers mademade was critical to
was critical to their international success.
their international success.
uup 20 percent.
p 20 percent.
We note that all
also note
We also companies had
all of the companies Use Way Station
Use of Way Station 3: Handling Roadblocks
Roadblocks
achieved some
achieved level of
some level of success international-
success iinn international-
ization, which means
ization, which means this was sample of surv-
was a sample survi- findings provide
Our findings only limited
provide only support for
limited support the
for the
thrivers. 80
vors and thrivers.
vors So their experience is
average experience
their average way station:
third way station: dealing The
roadblocks. The
with roadblocks.
dealing wit/9
useful to study,
useful study, as well differences be-
well as the differences be- companies prepared, oonn average,
companies prepared, average, only limited
only limited
tween the
tween high and
the high and llow o w performers.
performers. contingency plans,
contingency and-not surprisingly--en-
plans, and—not surprisingly—en-
countered several
countered several problems.
problems. The greatest prob-
The greatest prob-
Use of Way
Use Way Station 1:Planning
Station 1: the Trip
Planning the Trip lems they
lems faced iinn their
they faced first year
their first year of international-
of international-
ization were
ization pressure ddue
pricing pressure
were pricing competition,
u e ttoo competition,
Our findings
Our support the first
generally support
findings generally way sta-
first way sta- lack of
lack customer base,
diversified customer
of diversified base, government
government
tion: planning
tion: planning the trip. High performers
tr@. High performers mademade bureaucracy, aand
bureaucracy, trade barriers.
n d trade High performers
barriers. High performers
more use
more use of detailed research and sound
market research
detailed market sound were likely than
less likely
were less than lowlow performers
performers to rely oon
to rely n
strategic using internal
Whether using
analysis. Whether
strategic analysis. re-
internal re— short-term fixes
short-term (currency hedging,
fixes (currency disaster re-
hedging, disaster re-
professional services,
outside professional
sources oorr outside
sources compa-
services, compa- covery plans,
covery local legal
plans, local assistance) tto
legal assistance) o problems
problems
nies that were
nies that motivated to
were motivated internation-
expand internation-
to expand encountered overseas. But
encountered overseas. high performers
But high performers were were
ally oon
ally the sole
n the basis of
sole basis lowering costs
of lowering were gen-
costs were gen— much more
much likely to
more likely rely oon
to rely changing human
n changing human

70
7O Horizons /July-August
Business Horizons
Business 2000
/ July-August 2000
resource policies
resource policies or
or decision-making
decision-making processes.
processes.
They fundamentally
They fundamentally altered
altered the way
way they
they did Figure 33
Figure
business when
business when they
they entered
entered a new
new country
country so as Success and
Success and the
the Road
Road Taken
Taken
to accommodate
to accommodate the
the new
new mix
mix of
of revenue,~
revenue, cus-
cus-
tomers, and
tomers, and employees.
employees.

Use of
Use of Way
Way Station
Station 4:
4: Making
Making aa Commitment
Commitment a I § Early luck
Earlyluck Winning on
Winning on
a Q V’
may not
may not last
last the high
the high road
road
Our study provides
Our provides very
very strong
strong support
support for the 0
fourth way
fourth way station:
station: maleing
making aa commitment.
commitment. The The
companies tended
companies tended to be only moderately
be only moderately patient,
patient, m
2%
waiting an average
waiting average of two to three three years
years before
before g Get outt off
G
E f: t}: SEC}?
the ditch
Stick with it
it
exiting an
exiting an unprofitable market. But
unprofitable market. But the
the high
high per-
per-
formers h
formers had more patience
a d more patience with with unprofitable
unprofitable
3
3 as§
markets. Different
markets. Different strategies
strategies might
might be suitable for
be suitable
Low Road
Low Road High Road
Road
different competitive
different competitive environments,
environments, but all suc- suc- I

cessful strategies
cessful strategies share
share oneone feature:
feature: commitment.
commitment. INTERNATIONALIZATION PROCESS
INTERNATIONALIZATION PROCESS
High performers
High performers have have an enlightened
enlightened View view of
success. They
success. They areare more
more likely
likely toto define
define itit in
in inter-
inter-
national business by the gains
national gains in brand
brand aware-
aware-
ness, technology, or operational
ness, operational integration.
integration. when dealing
policies when dealing with
with roadblocks.
roadblocks. Third,
Third, a
To cope
To cope withwith the
the challenges
challenges of international-
international- initial competitive
company’s initial competitive advantage
advantage does
does
ization, the
ization, the companies,
companies, oon average, made
n average, made aa num-
num- matter when
matter when internationalizing.
internationalizing.
ber of changes
ber changes and commitments,
commitments, creatingcreating newnew Following a systematic
Following systematic internationalization
internationalization
positions in the
positions the firm and altering
altering decision-making
decision-making process yields better results. results. Even
Even smaller
smaller compa-
compa-
processes. However, they they made
made few few changes
changes in nies can
nies can do do it.
it. Managers
Managers needneed to to monitor
monitor theirtheir
human resource
human resource practices.
practices. In termsterms of commit-
commit- progress over
progress over time.
time. Even
Even if they
they started
started on the the
ments, they
ments, they provided
provided local
local marketing
marketing and and non-
non- low road,
low road, there
there will
will come
come aa time
time to to shift
shift ttoo the
the
technical services,
technical services, created
created specialist
specialist positions
positions or high road.
high road. Watching
Watching for the the signs
signs of success
success and and
teams, offered
teams, offered periodic training and updating,
periodic training updating, failure will help
failure help identify
identify that time.
time. As shown
shown in
assigned expatriates
assigned expatriates to foreign
foreign operations,
operations, and Figure 3, newly
Figure newly internationalizing
internationalizing companies
companies
created global
created global account
account teams.
teams. nneed
e e d ttoo avoid
avoid being stuck iinn tthe
being stuck ditch oorr having
h e ditch having
their early
their early luck
luck run
run out.
out. They
They should
should have
have the the
Initial and
Initial and Acquired
Acquired Competitive
Competitive Advantage
Advantage commitment ttoo stick
commitment stick it
it out
out when
when they they don’t
don’t suc—suc-
ceed at first, even
ceed even with
with a high
high road
road approach.
approach.
We also
We also found
found that both initial competitive
both initial competitive ad- And they they need
need constant
constant vigilance
vigilance when when they
they do
vantages and those
vantages those acquired
acquired in the the international-
international- reach success
reach success on on the
the high
high road.
road. El 0
ization process
ization process were
were related
related to performance.
performance. High
performers started
performers started With
with stronger
stronger initial
initial competi-
competi- References
References
tive advantages
tive advantages and gained
gained moremore as theythey went
went
international. Furthermore,
international. Furthermore, initial
initial competitive
competitive Ralph Biggadike,
Ralph Biggadike, “The
“The Risky
Risky Business
Business of
of Diversifica-
Diversifica-
advantages had
advantages had a stronger
stronger relationship
relationship to perfor-
perfor- tion,” Harvard
tion,” Harvard Business
Business Review, May-June 1979,
Review, May-June 1979, ppp.
p.
mance than
mance than did the acquired
acquired ones.
ones. These
These find—
find- 103-111.
103-111.
ings support
ings support the overall
overall success
success formula
formula shown
shown
Jan Johanson
Jan Johanson andand Jan-Erik
Jan-Erik Vahlne,
Vahlne, “The
“The Intemational-
International-
earlier in Figure
earlier Figure 1:1: Companies
Companies going going global
global need
need
ization Process
ization Process of
of the
the Firm:
Firm: A
A Model
Model of
of Knowledge
Knowledge
combine initial
to combine initial competitive
competitive advantages
advantages withwith a Development and
Development and Increasing
Increasing Foreign
Foreign Market
Market Commit-
Commit-
sound internationalization
sound internationalization process.
process. Finally,
Finally, luck
luck ment,” Journal
ment,” journal of International
of Business Studies,
International Business 8, 11
Studies, 8,
does matter.
does matter, The
The high
high performers
performers attributed
attributed more
more (1977):23-52.
(1977): 23-32.
good luck
to good luck than
than did the
the low
low performers.
performers. When
When
J. Paul Getty
J. Getty was
was asked
asked his formula
formula for success,
success, Miller, “Executive
Myron M. Miller, “Executive Insights:
Insights: The
The lO-Step
lo-Step Road
his reply
his reply was,
was, “Rise
“Rise early, work
work hard,
hard, strike
strike oil.”
oil.” Map to
Map to Success
Success in Foreign
Foreign Markets,” Journal
Journal of Inter-
Inter-
national Marketing, SSummer
national 1993, pp.
u m m e r 1993, 89-100.
p p . 89-100.

0
ur research provides
ur research three overall
provides three overall find-
find-
0 ings. First,
ings. First, the
the more
more a company
company takes
takes Joseph A.
Joseph A. Monti,
Monti, “The Battle
Battle for Global
Global Market Share,”
Development, November
Area Development, 1998, pp.
November 1998, 50-54.
p p . 50-54.
the high
the high road
road approach
approach at each
each of the
the
way stations
way stations on
on the
the international
international journey, the
journey, the Franklin R. Root,
Franklin Root, Entry Strategies for International
Entry Strategies International
better its
better its performance.
performance. Second,
Second, there
there are
are many
many (Lexington, MA:
Markets (Lexington, MA: Lexington
Lexington Books,
Books, 1987).
1987).
differences in individual
differences individual practices
practices at each
each way
station, such
station, such as
as using
using customer
customer feedback
feedback when
when Kulwant Singh
Kulwant Singh and
and George
George S.
S. Yip,
Yip, “Dealing
“Dealing with
with the
planning the trip and changing
planning changing human
human resource
resource Crisis: Strategic Responses
Asian Crisis: Responses and Strategic Lessons,”
Lessons,”

the High
Taking the
Taking Road When
High Road Going International
When Going International 71
71
 working paper,
working Judge Institute,
paper, Judge Cambridge University,
Institute, Cambridge University,
1999.
April 1999.
Joseph A. Monti is
A. Monti v i c e president
is aa vice president of of
CAST M
CAST Management Consultants, based
a n a g e m e n t Consultants, based in in
George S. Yip,
George ‘Shifting Bases
Yip, “Shifting Competitive Advan-
Bases of Competitive Advan-
Los Angeles.
Los Angeles. GeorgeGeorge S. S. Yip
Yip isis tthe Beckwith
h e Beckwith
paper, Anderson
working paper,
tage,” working Anderson Graduate School of
Graduate School
Marketing aand
Professor of Marketing
Professor Strategy aatt
n d Strategy
Management, UCLA,
Management, UCLA, November 1995.
November 88,, 1995.
Cambridge
C University’s JJudge
a m b r i d g e University’s Institute.
u d g e Institute.
George Yip, Total Global Strategy
George S. Yip, Strategy (Englewood Cliffs,
(Englewood Cliffs, sponsored aand
study was sponsored
This study
This u n d e d by
n d ffunded by
NJ: Prentice Hall,
NJ: Prentice 1992).
Hall, 1992). Grant
G International. The
Thornton International.
r a n t Thornton The aauthors
uthors
also tthank
also Javier Go
h a n k Javier Gomez Biscarri, T
me z Biscarri, Thao
hao
David Yoffie aand
B. Yoffie
David B. n d J.J. “Lotus Development
Coleman, “Lotus
J. J. Coleman, Development Nguyen, aand
Nguyen, Lee Alaniz
n d Lee UCLA, aand
Alaniz aatt UCLA, nd
Corp.: Entering
Corp.: Entering International Case No.
Markets,” Case
International Markets,” 9-387-
No. 9-387- Brian Gustason
Brian Oxford, for
Gustason aatt Oxford, for their contri-
their contri-
(Boston: Harvard Business
034 (Boston:
034 Publishing,
School Publishing,
Business School butions
butions to to tthe study.
h e study.
1987).
1987).

72 Business Horizons
Business Horizons / July—August 2000
/July-August 2000