FORMULATING AND CONDUCTING INTERNATIONAL STRATEGIES IN EGYPTIAN SMES IN AN UNSTABLE ECONOMIC AND POLITICAL SITUATION

 

Hanan Gouda

Asst. Prof., Arab Academy for Science, Technology and Maritime Transport, College of Management and Technology, EGYPT, hanan.gouda@aast.edu

 

Abstract

International joint venture (IJV) longevity and stability are frequently used as indicators of collaborative success. The SMEs with wide target to the global market can pursue different international strategic approaches to the targeted markets. The international strategies distinguish three types of globally oriented strategies: the global, the multinational strategies and the “multifocal” strategies while instability factors influences the organizational behaviours and could have a negative impact on the conducting of the international strategy and the achievements of its goals.

Based on this fact, formulating and conducting an international strategy in an unstable economic and political situation requires either the good knowledge of international competitive rules in an industry and its segments with a high consideration and comprehension of the economic and political situation, but an adapted globalization model capable to face the common challenges of instability.

This paper synthesizes the theoretical and methodological rationales for this approach, taking example of Egyptian SMEs with implications for theory development. A corporate strategy perspective on IJVs is provided, which proposes that the effects of IJV dynamics are meaningfully considered at the parent firm level, and the impact of IJV longevity versus instability depends upon factors as: firm’s collaborative objectives, post exchange conditions, identification of the strategic issues in different categories of countries, the type of actions to take and the integration and coordination of activities and the IJV's specific governance trajectory. The analysis aids in interpreting prior research and points to the value of more integrative, contingency perspectives on strategy of globalization and their evolution.

Keywords: International strategy, SMEs, join venture, instability, organizational behavior, globalization models, success.


FULL TEXT PDF

CITATION: Abstracts & Proceedings of SOCIOINT 2016- 3rd International Conference on Education, Social Sciences and Humanities, 23-25 May 2016- Istanbul, Turkey

ISBN: 978-605-64453-7-8