Mohammed A. Burney M. Sadiq Sohail

Abstract

Companies that are successful in their local markets often assume that the ingredients behind that success should enable them to expand around the world. But such thinking can be grossly mistaken. There is multitude of mistakes made by companies seeking to become global competitors. These mistakes are sustained and expensive. They usually stem from a combination of inexperience, ignorance, or arrogance. This paper is based on a review of most recent literature available on globalization initiative made by different companies. The study identifies 12 basic mistakes committed by the failed companies. In this paper, we discuss these mistakes, and offer corrective strategies and courses of action to address them.

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Keywords

Globalization

References
• Barkema, H., and Vermeulen, F. (1997). What differences in the cultural backgrounds of partners are detrimental for international JVs? Journal of International Business Studies, 28(2), p.845-864.
• Bartlett, C. A., and Ghoshal, S. (2000). Going global: Lessons from late movers. Harvard Business Review, 78(2), p. 132-142.
• Brandman, J. (2000). A flawed globalization strategy. Global Finance , 14(4), p. 24+
• Chandler, C (1997 )Globalization: The Automotive Industry’s Quest for a “World Car” Strategy, retrieved from http://globaledge.msu.edu/KnowledgeRoom/FeaturedInsights/0018.pdf
• Derryberry, J. (1999). What it really means to go global. Sales and Marketing Management, 151(12), p. 93-94.
• Engardio, P., Kripalani, M. and Webb, A. (2001). Smart Globalization. Business Week, August 27, p. 312-136.
• Fernald, J. G. and Greenfield, V. (2001). The fall and rise of the global economy. Chicago Fed Letter, Issue 164, p. 1-4.
• Govindarajan, V. (2001). Building an effective global business team. Sloan Management Review, 42(4), p. 63-71.
• Gupta, A. K. and Govindarajan, V. (2001). Converting global presence into global competitive advantage. Academy Of Management Executive, 15(2), p. 45-48.
• Hordes, M., Clancy, J., and Baddaley, J. (1995). A primer for global start-ups. Academy of Management Executive, 9(2), p. 7-11.
• Horn, R (2004 ) “Paying For It- Doing business with regimes may cost American companies cash as well as goodwill “ , TIME Asia Magazine Dec. 27, 2004
• (Kim, W., and Mauborgne, R. (1991). Implementing global strategies: The role of procedural justice. Strategic Management Journal , 12(Summer), p. 125-143.
• Korzeniowski, P. (2001). The challenges of going global. Business Communications Review, 31(5), p. 40-43.
• Mariotti, J. (2000). Going global? Do it right. Industry Week, 249(1), p. 62.
• McClenahen, J. S. (1999). 15 survival strategies for the new millennium. Industry Week, 248(17), p. 40-46.
• Ohmae, K. (1989). Managing in a borderless world. Harvard Business Review, 67(3), p. 152- 161.
• Oliver, R. W. (2000). New rules for global markets. The Journal of Business Strategy, 21(3), p. 7- 9.
• Oviatt, B. M. and McDougall, P. P. (1995). Global start-ups: Entrepreneurs on a worldwide stage. The Academy of Management Executive, 9(2), p. 30-44.
• Parter, A. S. (1993). Global reach, local touch. International Business, 6(8), p. 78+
• Ring, G., and Van de Ven (1992). Innovation and the emergence of industries. Paper presented at the annual meeting of the Academy of Management, New Orleans, USA.
• Barkema, H., and Vermeulen, F. (1997). What differences in the cultural backgrounds of partners are detrimental for international JVs? Journal of International Business Studies, 28(2), p.845-864.
• Bartlett, C. A., and Ghoshal, S. (2000). Going global: Lessons from late movers. Harvard Business Review, 78(2), p. 132-142.
• Brandman, J. (2000). A flawed globalization strategy. Global Finance , 14(4), p. 24+
• Chandler, C (1997 )Globalization: The Automotive Industry’s Quest for a “World Car” Strategy, retrieved from http://globaledge.msu.edu/KnowledgeRoom/FeaturedInsights/0018.pdf
• Derryberry, J. (1999). What it really means to go global. Sales and Marketing Management, 151(12), p. 93-94.
• Engardio, P., Kripalani, M. and Webb, A. (2001). Smart Globalization. Business Week, August 27, p. 312-136.
• Fernald, J. G. and Greenfield, V. (2001). The fall and rise of the global economy. Chicago Fed Letter, Issue 164, p. 1-4.
• Govindarajan, V. (2001). Building an effective global business team. Sloan Management Review, 42(4), p. 63-71.
• Gupta, A. K. and Govindarajan, V. (2001). Converting global presence into global competitive advantage. Academy Of Management Executive, 15(2), p. 45-48.
• Hordes, M., Clancy, J., and Baddaley, J. (1995). A primer for global start-ups. Academy of Management Executive, 9(2), p. 7-11.
• Horn, R (2004 ) “Paying For It- Doing business with regimes may cost American companies cash as well as goodwill “ , TIME Asia Magazine Dec. 27, 2004
• (Kim, W., and Mauborgne, R. (1991). Implementing global strategies: The role of procedural justice. Strategic Management Journal , 12(Summer), p. 125-143.
• Korzeniowski, P. (2001). The challenges of going global. Business Communications Review, 31(5), p. 40-43.
• Mariotti, J. (2000). Going global? Do it right. Industry Week, 249(1), p. 62.
• McClenahen, J. S. (1999). 15 survival strategies for the new millennium. Industry Week, 248(17), p. 40-46.
• Ohmae, K. (1989). Managing in a borderless world. Harvard Business Review, 67(3), p. 152- 161.
• Oliver, R. W. (2000). New rules for global markets. The Journal of Business Strategy, 21(3), p. 7- 9.
• Oviatt, B. M. and McDougall, P. P. (1995). Global start-ups: Entrepreneurs on a worldwide stage. The Academy of Management Executive, 9(2), p. 30-44.
• Parter, A. S. (1993). Global reach, local touch. International Business, 6(8), p. 78+
• Ring, G., and Van de Ven (1992). Innovation and the emergence of industries. Paper presented at the annual meeting of the Academy of Management, New Orleans, USA.
How to Cite
Burney, Mohammed A., and M. Sadiq Sohail. 2006. “In Pursuit of Globalization: Learning from the Hard Lessons”. Studies in Business and Economics 12 (1). https://doi.org/10.29117/sbe.2006.0015.
Section
Articles