Knowledge that Transforms

This article presents the major findings of the fifth global curriculum survey of the Academy of International Business (AIB)—an examination of the status and trends in international business education around the world as of the early 1990s. The survey's findings, based on responses from more than 500 business schools, encompass different goals and methods of internationalization, international linkages and experiential activities, organizational issues, amounts of internationalization progress achieved, and degrees of administrative satisfaction with progress achieved. The overall conclusion is that considerable progress has been made, but much more remains to be accomplished.

A study of human resource management practices in 249 U.S. affiliates of foreign-based multinational corporations (MNCs) shows that in general affiliate HRM practices closely follow local practices, with differences among specific practices. The degree of similarity of local practices is significantly influenced by the method of founding, dependence on local inputs, the presence of expatriates, and the extent of communication with the parent. In addition, sharp differences are revealed among affiliates of Canadian, Japanese and European MNCs, suggesting strong country effects. Together, these findings support the view of MNCs as composed of differentiated practices, which in turn are shaped by forces for local isomorphism and for internal consistency.

In spite of both positivistic and instrumental research, the reliability of measuring the degree of internationalization of a firm remains speculative. We collected data on nine attributes of seventy-four American manufacturing MNCs. Alpha, factor, and frequency analyses revealed a linear combination of five variables with a reliability coefficient of .79 as a measure of the degree of internationalization of a firm. We discuss the statistical and conceptual properties of the scale and their implications for content and construct validity.

This paper develops a model of international cooperative venture formation that is centered on the decisionmaking process of MNE executives. Central issues for managerial decisions are developed from the organizational studies literature. A framework delineating the sequence and criteria used in the decision to form international cooperative ventures is developed from these defined issues and from existing models. Propositions pertaining to the venture formation decision process are outlined.