Fluent Essays

You are asked to review one of the below academic articles by completing the journal article review   template provided. You are not allowed to edit the questions in the template or create your own.   Your submission will not be assessed unless the correct template is used.    Your review should:  • identify the key concepts and theories related to your chosen article;  • demonstrate a grasp of the author’s main arguments in the article;  • discuss the practical implications of the reading; you should consider why the topic of the article   is interesting and important for managers of multinational enterprises (MNEs) in the   contemporary global business world and how the understanding of the article would benefit the   managers; and   • present these by using an effective academic writing style.   Some tips for this assessment  • When reviewing an academic article, it is critical to focus on what the authors are arguing rather   than simply the subject that they are talking about.   • Use your own words and avoid direct quotations as quotations do not explain your thinking or   judgements. Summarising in your own words and paraphrasing are essential skills for academic   writing. To summarise means to reduce a text to its main points and its most important ideas.   Paraphrasing means putting it into your own words.  The criteria against which the assessment will be graded are:   • evidence of critical reading and understanding of the article;   • reflection on the practical implications of the article for managers of multinational enterprises  (MNEs); and   • presentation which includes a clear writing style, good grammar, spelling and appropriate   referencing (This course uses the Harvard (or RMIT-Harvard) citation method unless otherwise   stated -see http://www.lib.rmit.edu.au/easy-cite/ for more information on the referencing   style) RMIT Classification: Trusted Assessment Task 1: Academic article review (500 words, 10\%) • Assignment type: Individual, written • Value: 10\% • Link to the CLOs: 1, 2, 3 • Length: 500 words • Due date: 19:00, Friday, August 6 (Singapore Time) Note: on all written assessments, a +/-10\% margin from the word limit is allowed. However, a deduction of 1\% will be made from the final mark for each 1\% beyond the 10 \% margin. So, for a 500 word-limit assessment, no penalties are incurred up to 550 words. However, every 1\% beyond the 550 words will incur a 1\% deduction in marks. Your review should: • identify the key concepts and theories related to your chosen article; • demonstrate a grasp of the author’s main arguments in the article; • discuss the practical implications of the reading; you should consider why the topic of the article is interesting and important for managers of multinational enterprises (MNEs) in the contemporary global business world and how the understanding of the article would benefit the managers; and • present these by using an effective academic writing style. Some tips for this assessment • When reviewing an academic article, it is critical to focus on what the authors are arguing rather than simply the subject that they are talking about. • Use your own words and avoid direct quotations as quotations do not explain your thinking or judgements. Summarising in your own words and paraphrasing are essential skills for academic writing. To summarise means to reduce a text to its main points and its most important ideas. Paraphrasing means putting it into your own words. The criteria against which the assessment will be graded are: • evidence of critical reading and understanding of the article; • reflection on the practical implications of the article for managers of multinational enterprises (MNEs); and • presentation which includes a clear writing style, good grammar, spelling and appropriate referencing (This course uses the Harvard (or RMIT-Harvard) citation method unless otherwise stated -see http://www.lib.rmit.edu.au/easy-cite/ for more information on the referencing style). You are asked to review one of the below academic articles by completing the journal article review template provided. You are not allowed to edit the questions in the template or create your own. Your submission will not be assessed unless the correct template is used. Article 1. Kobrin, S J 2020, ‘How globalization became a thing that goes bump in the night’, Journal of International Business Policy, vol. 3, pp. 280-286. Article 2. Chae, B, McHaney, R & Sheu, C 2020, ‘Exploring social media use in B2B supply chain operations’, Business Horizon, vol. 63, pp. 73-84. Article 3. Manuel, T & Herron, T L 2020, ‘An ethical perspective of business CSR and the COVID-19 pandemic’, Society and Business Review, vol. 15, no. 3, pp. 235-253. Article Review Template Part A: Student and article information (This part is excluded from the word count) Your name Student ID Number of words Title of the selected article Part B: Use your own words and sentences to complete each section (the questions are excluded from the word count) Objectives: What does the article set out to do? Subject and theories/concepts: What is the article about? What is its subject? What are the central concepts and/or theories discussed in the article? Findings/main arguments: What are the key findings or main arguments of the author? Practical implication: Why is the subject of the article interesting and important for managers of multinational enterprises in the contemporary global business world and how would the understanding of the article benefit the managers? Part C: List of references (The references should be in alphabetical order according to the last name of the first author. This part is excluded from the word count) International Business: Journal Article Review Template (Assessment 1) Business Horizons (2020) 63, 73e84 Available online at www.sciencedirect.com ScienceDirect www.journals.elsevier.com/business-horizons Exploring social media use in B2B supply chain operations Bongsug (Kevin) Chae*,^, Roger McHaney ^, Chwen Sheu ^ College of Business Administration, Kansas State University, Manhattan, KS, U.S.A. KEYWORDS Supply chain; B2B social media; B2B; Social media affordance; B2B marketing; Supply chain operations * Corresponding author E-mail address: [email protected] (B ^ Authors listed alphabetically. All t equally to this article. https://doi.org/10.1016/j.bushor.201 0007-6813/ª 2019 Kelley School of Bu Abstract This research examines current applications and potential capabilities of a wide array of social media applications such as Facebook, Twitter, LinkedIn, and others within the context of B2B supply chain operations. Specifically, we use social media affordances (SMA) as a framework to explore how social media is used in B2B supply chain settings. We report findings based on a survey of 209 pro- fessionals in supply chain areas. These findings include the extent to which social media and different social media tools are used in B2B supply chain operations, the impact of company size on social media use, the areas in which social media is used, the perceptions of social media, and other relevant issues such as social media policy and security. Based on these findings, this study provides a discussion regarding the current and future use of social media in B2B supply chain operations. ª 2019 Kelley School of Business, Indiana University. Published by Elsevier Inc. All rights reserved. 1. Social media for enterprises The social media revolution has touched nearly all areas of business and, in many instances, has changed fundamental interactions between companies and their customers (Kaplan & Haenlein, 2010). Outside the business realm, in- dividuals have rapidly embraced and adopted social media. According to the Pew Research Center (2018), between February 2005 and February 2018, the percentage of American .K. Chae) hree authors contributed 9.09.008 siness, Indiana University. Pub adults using social networking sites jumped from 5\% to 69\%. Specific platforms added users at un- precedented rates, with Facebook hitting 50 million users just 1 year after its commercial introduction (Statista, 2015a) and Twitter doing the same in under 9 months (Statista, 2015b). Recognition of social media value is present in most business settings; however, many industry insiders believe much remains to be done. This is particularly true in the area of supply chain. While there is little doubt that social media is starting to have a big impact on supply chain activities (O’Leary, 2011), researchers point out the shortcomings. As one McKinsey & Company report stated: “[Companies] have adopted [so- cial] technologies but have generated only a lished by Elsevier Inc. All rights reserved. mailto:[email protected] http://crossmark.crossref.org/dialog/?doi=10.1016/j.bushor.2019.09.008&domain=pdf https://doi.org/10.1016/j.bushor.2019.09.008 https://doi.org/10.1016/j.bushor.2019.09.008 https://doi.org/10.1016/j.bushor.2019.09.008 www.sciencedirect.com/science/journal/00076813 www.journals.elsevier.com/business-horizons 74 B.K. Chae et al. small fraction of the potential value they can create” (Bughin, Chui, & Manyika, 2012). The same study stated that “social platforms can unlock $900 billion to $1.3 trillion in value in those sectors alone” and “[t]wo-thirds of this value creation opportunity lies in improving communication and collaboration within and across enterprises” (Bughin et al., 2012). It is the across enterprises portion of that statement that motivates our current study. Supply chains are large, amorphous, loosely coupled organizations that may contain a wide range of vendors, buyers, suppliers, manufacturing facilities, distribution and consol- idation centers, and logistics partners. It stands to reason that embedding social media into various aspects of a supply chain will change communication patterns, permit additional in- formation to be gathered and analyzed to better understand newly evolving trends, and ultimately enhance decision making. One of the primary problems within a supply chain has been infor- mation dispersion and sharing. According to Chen (2003, p. 341): “The performance of a supply chain depends critically on how its members co- ordinate their decisions. And it is hard to imagine coordination without some form of information sharing.” Information yields advantages and, with social media, new information can be gathered from sources that were previously outside of existing communication infrastructures. Researchers and industry thought leaders have suggested a variety of ways in which social media can benefit the supply chain and enable informa- tion collection. Most of these ideas have been B2C- related functions and include: � Enhancement of communication with cus- tomers, particularly regarding shipping, service, and feedback issues; � Use of social media to generate demand for goods and services; � Increased market intelligence and a better un- derstanding of performance via data analytic operations (Lee, 2018; O’Leary, 2011; Singh, Shukla, & Mishra, 2017); and � A newly developed sense of connection with the company (Ramanathan, Subramanian, & Parrott, 2017). With the vast number of people using social media, it becomes nearly as important for an organization to have a social media presence as it has been to have a web presence. If companies do not use social media, they can quickly lose competitive advantage and be left out of a world inhabited by their customers, suppliers, partners, and compet- itors (Cui, Gallino, Moreno, & Zhang, 2018; Paniagua & Sapena, 2014). In addition to enhancing connections, social media channels help organizations generate ideas for improving the supply chain process and detect/solve problems through an awareness of supply chain partners’ collective insights. In 2004, Gunasekaran and Ngai (2004, p. 289) stated: “[A] dense networking infrastructure to support digital communications is the obvious backbone of any information society. New broad- band and wireless technologies are being funded and developed so that eventually all citizens and businesses will be connected.” Although social media had yet to take off, this statement was predictive of the changes beginning to occur. As the network infrastructure did become available, social media found its way into the fabric of business and is unlikely to disappear. Many of the advantages that quickly appeared were focused on B2C improvements provided by organizations tapping into social media venues (O’Leary, 2011), and they included items related to forging deeper connections with data provided by consumers, mining customer comments for insight, and enhancing customer service. Most of these changes appeared because data were pro- vided via consumer initiatives in locations such as retail sites, discussion forums, blogs, and threaded discussions. It was not until later that B2C social media practices started to become institutional- ized (e.g., using delivery notifications, collecting comments on services). B2C social media interactions have evolved since that time (Chae, 2015). Supply chain com- panies use social media data to better understand customer behavior and to innovate products and services (Chan, Lacka, Yee, & Lim, 2017; Lee, 2018). Also, there are several areas in supply chain management in which social media can be utilized to increase environmental scanning, customer satisfaction, sales, communication, and engagement (see Table 1). The lessons learned from B2C social media ap- plications can be used to inform applications in the B2B space. In essence, these applications are about creating social interactions and deriving business value. The technologies involved and the overarching goals are similar in B2B areas. These include increasing communication, information sharing, and market sensing through interactive web-based technologies. The success of social Table 1. B2C social media supply chain examples Area Application Examples Logistics & delivery � Shipment departure, status, and arrival notifications � Shipment performance messages to let customers know about delivery timeliness � Shipment notifications by Four Soft, Con- way, and other companies (O’Leary, 2011) Sales & demand shaping � Streaming new product and service information � Sending out promotional materials (e.g., coupons, discounts) to customers � Sales through social media � Like2Buy (Lindsey-Mullikin & Borin, 2017) � PEEL’s use of Facebook video ads for sales � Wayfair’s use of Instagram for sales Supply demand synchronization � Detecting and evaluating customer senti- ments on products and services � Estimating future customer demands � Use of Facebook posts and comments to predict sales in the fashion industry (Cui et al., 2018) New product development � Asking for customer feedback on existing products and services � Asking for customer ideas for new prod- ucts and services � Starbucks’ submit your idea � Twitter Tees by Threadless (Conley, 2017) Communication & stakeholder engagement � Promoting success stories and releasing reports on corporate social responsibility (CSR) � Providing user tutorials, hints, and instructions � Use of Twitter and Facebook by Fortune 500 companies for communicating CSR reports (Reilly & Hynan, 2014) E x p lo rin g so c ia l m e d ia u se in B 2 B su p p ly c h a in o p e ra tio n s 7 5 76 B.K. Chae et al. technology-enabled business platforms (e.g., Ali- baba, Salesforce) provides an example of how concepts derived from B2C that combine social technology with business transactions can be suc- cessful. Some of the key concepts include: con- necting users across systems, lower barriers to communication, and fostering the development of communities. Social technologies breed trust be- tween businesses and their partners, which will ultimately improve business practices in B2B operations. Several differences also exist for B2C and B2B in this area. In B2C, much emphasis is on social media as an enabler for engaging with customers to improve sales and operational performances and on supporting a company’s downstream supply chain. In contrast, social media in B2B is for interacting with partners in one’s upstream supply chain to increase operational efficiency. While social media in B2C is often used to increase in- formation diffusion (e.g., promotion), B2B social media is about sharing proprietary information with partners more efficiently than with tradi- tional channels. Thus, security can be an impor- tant consideration in adopting and using social media in a B2B supply chain. Another difference between B2C and B2B is technology related. Many B2B systems rely on rigid technologic infrastructures that tie the internal processes of an organizationdvia formal protocolsdto its supplier and vendor partners. In other circumstances, no connection between B2B entities exists, making personal-level communica- tion difficult if not impossible. To fill this gap, new cloud-based software products and services emerged to leverage social media capabilities be- tween partner entities (Demirkan, Cheng, & Bandyopadhyay, 2010; Jhang-Li & Chang, 2017). The purpose of our research was to understand the current use of social media technologies in B2B supply chains and to provide managerial implica- tions with respect to social media deployment in B2B settings. We introduce a framework based on social media affordances (SMA; Treem & Leonardi, 2012) to organize areas in which the B2B supply chain can be influenced. We conducted a survey of 209 professionals in supply chain areas and present findings useful to academics and professionals in utilizing social media to improve supply chain- related operations. 2. The growth of social media Social media refers primarily to technologies that allow generation of user-created information and support user interaction. Social media can facili- tate one-to-one relationships between users but its strength resides in its capability to easily enable many-to-many interactions (Reiter, McHaney, & Connell, 2017). Social media allows the develop- ment of virtual relationships that enable people to connect on many levels. Most social media appli- cations utilize cloud technologies and are consid- ered Web 2.0 (McHaney & Sachs, 2016; O’Reilly, 2007). The era of social computing emerged largely due to social media applications and has led to levels of replacement in prior modes of communication such as telephone, mail, email, radio, and television (Parameswaran & Whinston, 2007). In less than 10 years, social media technologies have infiltrated and revolutionized the way busi- nesses interact with stakeholders (Reiter et al., 2017). As a result, social media applications have dramatically altered how people connect, interact, share, communicate, and even think (McHaney, 2011). The speed with which social media permeated social and business practices was relatively unforeseen by many futurists (Aburdene, 2005). Measures of social media use indicate continued growth. According to the Niel- sen Company: “Social media is one of the biggest opportunities that companies across industries have to connect directly to consumers” (Casey, 2017). For example, in 2016, adults spent 36\% more time on social media than they did in 2015; more recently, it was found that adults spend an average of 5.5 hours per week on social media (Casey, 2017). Organizations have reacted to social media and sought ways to integrate its advantages into their business practices. In spite of the fact that many social media tools were developed to target individual-level communications, many businesses now use tools provided by Facebook, LinkedIn, Pinterest, Instagram, Twitter, and others to interact with customers, potential customers, and other stakeholders. Social media is the most pop- ular online activity, accessed by more than 66\% of all internet users. Fortune 500 companies were using social media tools as early as 2009 at rela- tively high levels, including Facebook, Twitter, blogs, and YouTube: 64\% of them for internal use, 56\% for B2C, and 40\% for B2B (Culnan, McHugh, & Zubillaga, 2010). In general, social media permits the develop- ment of meaningful relationships with current and future customers (Rapp, Beitelspacher, Grewal, & Hughes, 2013). It enables the discovery of new customers, continued relationships with existing customers, and the collection of valuable and Exploring social media use in B2B supply chain operations 77 relevant information (Kietzmann, Hermkens, McCarthy, & Silvestre, 2011). In B2C, social media has become a resource in business activities such as sales (Bocconcelli, Cioppi, & Pagano, 2017). New venues for business interaction are also available (e.g., creating a fan base). Busi- nesses can mine unstructured social media data as a means to acquire and fine-tune business intelli- gence (Lee, 2018). Since much of social media data is public, information about competitors and competing products is readily available (Reiter et al., 2017). 3. SMA for B2B supply chain operations We believe social media can be integrated into supply chain transaction processing systems to provide new data that benefits business partners on both sides of the relationship. Social media can provide context and add details to supply chain events. Sharing this information with interested partners is consistent with social media concepts, although information-sharing may not be in a firm’s best interests (Chen, 2003). We believe re- lationships are constructed between extended supply chain partners. A corporate strategy could encourage employees and representatives of partner firms to use social media to develop closer relationships. In addition, social media in a B2B setting will necessarily seek to change the funda- mental nature of communication from a one-way message to a more interactive and lively ex- change. This gives the B2B relationship a human element. We also believe social media information is related to business value in B2B supply chains. Social media data is contextually rich and consid- ered big data (Chae, 2015; Chan et al., 2017). Gathering information and transforming it into knowledge with data analytics ultimately en- hances organizational reputations, improves pro- cesses, or provides access to more cost-effective transactions (Tan, Ji, Lim, & Tseng, 2017). Finally, social media can be a digital platform for com- panies to collaborate with upstream and down- stream firms not normally accessible through traditional, integrated information systems. For example, supply chain risk assessment, product development, demand and supply planning, and coordinated responses to potential supply chain disruptions can be implemented with digital plat- forms such as Twitter. We introduce social media affordance as a conceptual framework to investigate the potential utility of social media in B2B supply chain opera- tions. The term affordance, originally coined by James Gibson (1966), focuses on “not what an object is, but rather what kinds of uses it affords” (Treem & Leonardi, 2012, p. 145). The term has been adopted in communication studies and in- formation systems literature to study the role and use of social media in organizations for internal communications (Treem & Leonardi, 2012). In organizational communication contexts, Treem and Leonardi (2012) identified four social media affordance types: � Visibility of knowledge, behaviors, and connections; � Content editability; � Persistence of communication; and � Association. These social media affordances, identified in intraorganizational contexts, are adapted in this study to discuss potential interorganizational usage of social media for B2B supply chains. First, social media affords association (Treem & Leonardi, 2012). The key aspect of social media is its social nature, supporting social con- nections between organizations and their mem- bers. This differentiates social media from extant interorganizational information systems or tech- nologies. While traditional interorganizational information systems are focused primarily on transmitting proprietary information (Johnston & Vitale, 1988) between suppliers and customers, social media adds a social interaction element. Social media enables different types of associa- tions (e.g., LinkedIn connections, Twitter fol- lowers, members of a Facebook group) among employees of the companies in a B2B supply chain. Even social media algorithms are advanced enough to recommend new people for potential association based on various commonalities (e.g., job position). In addition, social media can support associa- tions between people and material objects, including documents, posts, datasets, charts/ graphs, videos, pictures, and hyperlinks. Because of this type of association, the data/information shared through social media becomes identifiable by the contributor. Content gets individual ownership, which comes with responsibility and rewards and, further, is editable. Therefore, in- formation quality can improve over time (Treem & Leonardi, 2012). This also differentiates social media from traditional interorganizational infor- mation systems, in which such data are often 78 B.K. Chae et al. aggregated, and person-to-content ties are not obvious or may even be removed. Second, social media affords communication among people insidedand even outsidedthe as- sociations. Communication, especially in the form of information sharing among partners, has been highly regarded as a key enabling factor for suc- cessful B2B supply chains and is not entirely new in the context of interorganizational information systems. Historically, B2B supply chain communi- cation has been periodic, asynchronous, and time- bound, involving only a few individuals from vendor and customer organizations. Communica- tion between organizations can also be troubling for an organization, particularly if knowledge and information assets leak out through informal channels (Ahmad, Bosua, & Scheepers, 2014). So- cial media is considered richer than traditional communication technologies used in B2B supply chainsdincluding emails and faxesdin the sense that social networking sites and wikis (Majchrzak, Wagner, & Yates, 2013), for example, afford sharing and editing of diverse forms of content (Treem & Leonardi, 2012) through diverse modes of communication (e.g., videos) with few re- strictions on time or location. Thus, social media potentially changes the landscape of communication in the B2B supply chain. Social media allows more organizations and their members to participate in communication and information sharing. Also, the contents they share are not only editable but also traceable and Table 2. B2B social media supply chain examples Supply Chain Affordances Association � Association of people � Association between pe � Association between pe � Improvement of informa Communication � Continuous communicat � Real-time information s Big Data & intelligence � Collection of large amo � Extraction of business in � Data-driven supply chai Collaboration � Real-time, large-scale c � Coordinated efforts in d � Coordinated product de easy to follow at a later date. Thus, communica- tion is continuous and contents can be revisited and reused for future communication. Social media enables real-time communication among large stakeholders. The shared contents are not only limited to traditional supply chain data (e.g., performance metrics, shipments, inventory level) but also include diverse external and contextual data. For example, Intel used social media to capture data to proactively monitor supply chain compliance, social responsibility, and sustainabil- ity (Siegfried, 2014). Third, social media affords accessibility to big data that can be used for supply chain network optimization. Social media users are real-time sensors or reporters (Sakaki, Okazaki, & Matsuo, 2010). As social media becomes increasingly pop- ular, user-generated and machine data are ex- ploding and available in real time. Thus, social media can be the source of large amounts of contextual data. In B2B supply chain settings, companies can pull relevant data from social media and gain intelligence from big data for many supply chain activities (e.g., risk management, supply planning) while, in a B2C supply chain, manufacturers and service providers take advan- tage of social media largely to push marketing and deliver information to potential customers. Unlike traditional structured and numerical supply chain data in corporate databases (Olson, Chae, & Sheu, 2013), the data generated, stored, and/or processed in social media are largely Description ople and contents ople and information/knowledge tion quality ion haring unts of contextual data telligence n optimization oordinated efforts in response to supply chain disruptions emand and supply planning velopment Exploring social media use in B2B supply chain operations 79 unstructured and highly enriched (Chae, 2015). They often not only carry users’ opinions or sen- timents about products, services, and brands but also reveal demographic information. The amount of data (e.g., news) about markets, economy, so- ciopolitical environments, upstream suppliers, and competitors accessible through social media and web services is also increasing. With the help of analytical techniques, these new types of data can be used to extract business intelligence and enable data-driven supply chain optimization. Finally, social media can help supply chain part- ners to improve coordination. Supply chain coordi- nation or integration involves collaborative planning and joint decision making in supply chain activities, including logistics, inventory manage- ment, demand forecasting, and risk management. Historically, there have been different coordination mechanisms (e.g., contracts, EDI, VMI, CPFR) typi- cally used by key business partners in B2B supply chain settings (Arshinder, Kanda, & Deshmukh, 2008). As complexity, uncertainty, and disruptions in business environments increase, social media can enable supply chain coordination with large stake- holders, at lower costs, and in real time. There are many areas in the B2B supply chain in which coordination is critical (Flynn, Huo, & Zhao, 2010). Social media can coordinate efforts among field personnel who used to play a small role in supply chain decisions. These people include de- livery truck drivers, warehouse workers, emergency responders, onsite maintenance technicians, and others. Many have access to social media technol- ogies and can feed lively and important news into decision making. Social media can support real- time, large-scale coordinated efforts (e.g., risk management) involving these people in response to unpredictable supply chain disruptions (e.g., road accidents, factory fires, natural disasters). Table 2 provides examples of social media affordances for B2B supply chain operations. 4. Social media usage in B2B supply chain We conducted a survey to determine the level of social media usage in B2B supply chain settings. While the survey consisted primarily of questions about the use of social media for B2B supply chain operations, it included additional questions about perceptions of social media.1 Social media offers 1 The survey items regarding the perceptions of social media are borrowed from Siamagka, Christodoulides, and Michaelidou (2015). openness that does not exist in traditional B2B supply chain systems but could raise security concerns. Therefore, we also included questions about organizational policies and information se- curity regarding social media use. We collected 209 screened and valid responses from 119 males and 90 females involved in their companies’ supply chain operations. The respondents’ average age was 40 years and, on average, they had 9.5 years of working experience. About 60\% of the re- spondents reported they currently work at medium-sized or large companies, while 40\% re- ported working at small companies of fewer than 50 employees. In spite of the fact that social media was conceived of as a way for individuals to commu- nicate and interact online, organizations have discovered how to move these familiar and widely popular tools into daily business operations (Kaplan & Haenlein, 2010). These tools already widely impact B2C relationships (Hanna, Rohm, & Crittenden, 2011) and our study shows that orga- nizations are starting to recognize the value afforded by social media tools at the B2B level. Regarding whether the individuals contacted believed their organizations used social media in the B2B supply chain, 60\% of the respondents answered “definitely does” and 23\% answered “probably does.” Only 2\% responded “definitely not.” Further, people involved with B2B supply chain operations report that social media can help with supply chain performance, effectiveness, productivity, and problem-solving, and can improve relationships with supply chain partners. They suggest the technological challenges are not too great and that cost, while a consideration, is not prohibitive. Looking at the affordances provided by social media, we see four primary areas: 1. Association between people, contents, and information; 2. Enhancement of communication channels; 3. Collection, extraction, and data-based optimi- zation due to big data and business intelli- gence; and 4. Coordination and collaboration between en- tities to improve supply/demand planning and minimize disruption, in the short term, and to enhance long-term planning. The survey showed that these affordances are aligned with particular tool sets. For instance, 80 B.K. Chae et al. LinkedIn had the highest correlation with the as- sociation dimension. Facebook and Twitter were also highly popular for association. These tools are useful in creating relationships between in- dividuals, as well as providing connections to content and knowledge. Both Facebook and Twitter provide tools to create groups, which can then be used for sending out specific messages, maintaining status updates, and quickly contacting people in the event of problems. Social media provides mechanisms for connecting the right people at the right time. Considering the affordance of communication, Google Docs and LinkedIn had the highest corre- lation with the information-sharing dimension. Facebook did not appear to be a popular medium for communication/information sharing, which could be due to its perception as a family and friends venue (Stutzman & Kramer-Duffield, 2010). Google Docs is configured to permit access in very specific ways that can enhance knowledge sharing (Gaál, Szabó, Obermayer-Kovács, & Csepregi, 2015) and LinkedIn is a business social media network by intention (Skeels & Grudin, 2009). Again, the ability of social media to enhance communication between individuals within … 1 RMIT Classification: Trusted BUSM1227 International Business Introduction & Course Overview Dr Joseph H. Kim School of Management RMIT University 2 RMIT Classification: Trusted Today’s lecture • Course overview • Assessments • Foundation of IB 3 RMIT Classification: Trusted 3 Teaching Team • Dr Joseph Kim (Course Coordinator) email: [email protected] • Mr Jimmy Ong (Local Lecturer) email: [email protected] 4 RMIT Classification: Trusted 4 Introduction to International Business Q. Who participates in international business? Q. What do you think are some potential risks businesses face when they are operating in foreign markets? Q. Despite greater risks involved international operations, why do you think businesses go abroad? 5 RMIT Classification: Trusted What is International Business? Multinational Enterprises (MNEs) Or Multinational Corporations (MNCs) Internal competence Performance External business environment 6 RMIT Classification: Trusted What is International Business? Multinational Enterprises (MNEs) Or Multinational Corporations (MNCs) External business environment • Environmental factors (cultural differences, technological changes, globalisation, economic development etc) • External actors (government, competitors, international organisations, stakeholders etc) Strategies, org. structure, resources, capabilities, management, value chain etc 7 RMIT Classification: Trusted Key topics covered • Globalisation: past, present and future • Global information economy • Differences in national cultures and IB • Political economy of IB • Stakeholders and IB • Understanding MNEs • Entering foreign markets • Strategy and structure of MNEs • Emerging market MNEs • Future opportunities and challenges in IB — Assessments 8 10\% 1. Journal Article Review Individual Written, 500 words 40\% Group Written, 3,000 words Individual Written, 2,500 words 50\% 2. Group Report 3. Individual Essay Aug 6, 7.00 pm (SGT) Sep 10, 7.00 pm (SGT) Oct 1, 7.00 pm (SGT) You need to obtain 50\% or above from the total assessment value to pass this course. 9 RMIT Classification: Trusted Assessment Task 1 • Assignment type: Individual, written • Value: 10\% • Due date: Friday, Aug 6, 7:00PM (Singapore time) • Submission via a link on Canvas • Word limit: 500 words (10\% more or less is allowed) You are asked to review one of the below academic articles by completing the journal article review template provided. You are not allowed to edit the questions in the template or create your own. Your submission will not be assessed unless the correct template is used. Article 1: Kobrin, SJ 2020, ‘How globalization became a thing that goes bump in the night’, Journal of International Business Policy, vol.3, pp. 280-286. Article 2: Chae, B, McHaney,R &Sheu,C 2020, ‘Exploring social media use in B2B supply chain operations’, Business Horizon, vol. 63, pp. 73-84. Article 3: Manuel, T& Herron,T L2020, ‘An ethical perspective of business CSR and the COVID-19 pandemic’, Society and Business Review, vol. 15, no. 3, pp. 235-253. *The articles are available for download on Canvas 10 RMIT Classification: Trusted 10 Academic writing and use of evidence • Assessments in university will require you to make an argument • You must - take a position on the subject you are discussing - support that position with evidence • Scholarly > non-scholarly evidence • Ways to incorporate evidence into assessments - quote - paraphrase / summary 11 RMIT Classification: Trusted 11 “What is a scholarly article?” 12 RMIT Classification: Trusted 12 “Summarising a journal article” 13 RMIT Classification: Trusted Reading an academic article Key considerations • the background of the article • the purpose and overall conclusion (key claim/argument) • the evidence used by the author and its connection to the author’s claim • any limitations • links to other sources and research • significance of the article Skimming Critical reading Summarising 14 RMIT Classification: Trusted Article summary / mindmapping Prepare a breakdown of the article or mindmap the article you have selected for Assessment Task 1. https://emedia.rmit.edu.au/learninglab/content/mind-mapping 15 RMIT Classification: Trusted 15 How to cite articles using the Harvard referencing method? Easy Cite by RMIT Library http://www.lib.rmit.edu.au/easy-cite/ Please use the Harvard referencing (or RMIT Harvard) style for this course. http://www.lib.rmit.edu.au/easy-cite/ 16 RMIT Classification: Trusted Assessment Task 1 •Use the template to complete your article review assessment. You are not allowed to edit the questions in the template or create your own. Your submission will not be assessed unless the correct template is used. •You need to submit your review in the MS Word format (.docx/.doc). Make sure that your file is not corrupted or damaged before submission. Your work may not be assessed and may be awarded a zero if an incorrect or damaged file is submitted. 17 RMIT Classification: Trusted Turn-it-in and plagiarism check 18 RMIT Classification: Trusted Assessment Task 1 Your review should: • identify the key concepts and theories related to your chosen article; • demonstrate a grasp of the author’s main arguments in the article; • discuss the practical implications of the reading; you should consider why the topic of the article is interesting and important for managers of multinational enterprises in the contemporary global business world and how the understanding of the article would benefit the managers; and • present these by using an effective academic writing style. 19 RMIT Classification: Trusted Assessment Task 1 Marking Criteria 1 RMIT Classification: Trusted Globalisation and IB Dr Joseph H. Kim School of Management RMIT University 2 RMIT Classification: Trusted Today’s lecture • Concept and history of globalisation • Whither globalisation? Dawning of a new era? • Implications for MNEs 1 2 What is globalisation? • “Globalisation…is a process leading to greater interdependence and mutual awareness among economic, political and social units in the world, and among actors in general” (Mauro Guillén) • “Globalisation… is the closer integration of the countries and peoples of the world … brought about by the enormous reduction of costs of transportation and communication, and the breaking down of artificial barriers to the flows of goods, services, capital, knowledge, and people across borders” (Joseph Stiglitz) 4 RMIT Classification: Trusted 4 Globalisation: “The World is flat” • Acceleration of globalisation after the end of the Cold War • Towards a more integrated and interdependent world economy Globalisation is moving so much “farther, faster, cheaper, and deeper” (T. Friedman) 3 4 http://www.thomaslfriedman.com/bookshelf/the-world-is-flat 5 RMIT Classification: Trusted 5 DHL & NYU Global Connectedness Index 2020 6 RMIT Classification: Trusted 6 Drivers of globalisation • Trade liberalisation - reductions in trade barriers (reduction of tariffs and quotas) - pro-market reforms 1913 1950 1990 2011 France 21 18 5.9 3.9 Germany 20 26 5.9 3.9 Italy 18 25 5.9 3.9 Japan 30 - 5.3 2.6 US 44 14 4.8 3.3 Average tariff rates on non-agricultural products as a percentage of value Source: The Economist. 24 June, June 1995 pp. 3-4, WTO, World Tariff Profiles, 2012 5 6 7 RMIT Classification: Trusted 7 Drivers of globalisation • Technological advancement • Emergence of multilateral institutions such as WTO and World Bank • Growing influence of MNEs 8 RMIT Classification: Trusted 8 Globalisation of markets and production • Globalisation of markets: merging of historically distinct and separate national markets into one global market place “Consumers in every country would increasingly have an appetite for and access to products and services from all over the world.” (T. Levitt) • Globalisation of production: sourcing goods and services from locations around the globe to take advantage of national differences in the cost and quality of various factors of production “In a flat world, there is no such thing as an American job…Its just a job, and it will go to the fastest and most productive worker.” (T. Friedman) 7 8 9 RMIT Classification: Trusted Apple’s global supply chain 10 RMIT Classification: Trusted 10 Apple’s global supply chain 9 10 11 RMIT Classification: Trusted COVID-19 and rising nationalism: Are we in the era of anti-globalisation? • Growing protectionism and nationalism - Growing support for political parties and candidates with nationalist or protectionist agendas - Increase in protective measures by national governments - e.g restrictive investment policy, travel & trade ban 12 RMIT Classification: Trusted WTO “Global trade could fall by as much as a third” Source: World Trade Organization 11 12 13 RMIT Classification: Trusted Dawning of a new era? Weakening force of globalisation • Weakening of multilateral institutions & declining trust in business and political elites - Breakdown of multilateral negotiations, regional trade blocs (WTO Doha Round, BREXIT, US pulling out from TPP, weakening sway of multilateral institutions etc) - Pressure for alternative economic modes 14 RMIT Classification: Trusted 14 Implications for MNEs: Navigating the new world of globalisation Contact details • Fragmented and multipolar global economy - Shift in power: rise of emerging economies (e.g. BRIC economies which comprise about 40\% of world population) - EMNEs playing an increasingly important role for the global economy in terms of production, consumption and innovation - Rise of strategically alternative countries in the post-COVID19 global economy? 13 14 15 RMIT Classification: Trusted Rise of EMNEs: in Fortune Global 500 Country 2000 2020 BRIC 16 142 China 10 124 US 179 121 Japan 107 53 France 31 31 UK 38 22 Source: Fortune Global 500 16 RMIT Classification: Trusted 16 Implications for MNEs: Navigating the new world of globalisation Contact details • Risk management has become vital for MNEs - MNEs must adapt to sudden regulatory shifts, political risks, changing economic conditions, and other risks - Growing calls for “sovereign” or “national” supply chains: Should MNEs focus their attention more at national/regional levels than the global level? (Flores et al., 2013; Fratianni & Oh, 2009) 15 16 17 RMIT Classification: Trusted 17 Contact details • Greater emphasis on social and environmental responsibilities of MNEs - Growing power of MNEs vis-à-vis government, labour and consumers - MNEs account for 1/4 of worldwide employment, 1/3 of global output and more than 1/2 of global trade - Can MNEs fill in the gaps in global governance in areas such as climate change, poverty relief and trade liberalisation? Implications for MNEs: Navigating the new world of globalisation 17 1 Dr Joseph H. Kim School of Management RMIT University Global information economy 2 Today’s lecture • Era of global information economy • Innovation and R&D • Implications for MNEs 1 2 3 Global information economy: The new world of big data • “Humans now create in two days the same amount of data that it took from the dawn of civilization until 2003 to create” (Eric Schmidt, Executive Chairman of Google) • The World of ‘Big Data’: “the infinite sea of facts, products, books, maps, conversations, references, opinions, trends, videos, advertisements, surveys -- all of the sense and nonsense that is literally at your fingertips, 24/7, everyday from now on” (USA Today) • Challenges for MNEs? Industrial society Information society 4 COVID-19: Impact on E-Commerce Transactions 3 4 5 Digital technologies and changes to GIE • Product mix: existing products are replaced by new products • Players in the market: existing firms displaced by new entrants and others evolve to take advantage of opportunities - The rise of “hub firms”: Digital superpower firms that use their existing network-based assets to enter into another industry • Demand for labour: automation replaces some jobs and reduces the need for others, new jobs emerge, and the skills needed change 6 Development of global information economy Late 2000s: sharing economy firms utilising underused assets on P2P platform Early to mid- 2000s: social media firms enabling users to communicate and share content 1990s: led by e-commerce companies creating “digital marketplace” 5 6 7 E-commerce • The exchange of goods and services across an interactive digital network - A computer-mediated and virtual market with a digital means of exchange - Overcoming the problems of distance and costs • Altering the industry dynamics? • Growing power of consumers 8 Retail bankruptcies in US (2020) 7 8 9 E-commerce & industry dynamics Porter’s Five Forces 10 Social media • Social media are interactive online communication technologies that facilitate the creation or sharing of information • Social media has become a critical partof MNE’s strategy - build relationships with both existing and potential customers - create brand and product awareness - customer support and education - solicit feedback and respond to complaints 9 10 11 Sharing economy • “A peer-to-peer market; and economic arrangement in which asset owners and users mutualise access to products or services associated with these assets” (Bradley & Pargman, 2017; Zervas, Proserpio & Byers, 2017) E.g. vehicles, machinery, tools, clothes, houses • Enables an increase in the use of under-utilised assets, improving the overall efficiency of the economy • Disrupts the traditional markets, particularly those where firms relied on restrictions to market entry • Intrinsically an international phenomenon: asset owners have to work with customers in different countries • Standards and regulations often lag behind the new business models 12 Innovation in global information economy Innovation: Introduction and spread of new and improved products and processes in the economy (Christopher Freeman) “Innovation is a critical driver of growth and prosperity. China’s move up the [global innovation] rankings, and the U.S. drop, is a reminder that without investment in education and research, trade tariffs aren’t going to maintain America’s economic edge.” (Tom Orlik, Bloomberg Economics, chief economist) 11 12 13 Most innovative economies in the world (2020) 14 Measuring Innovative Index • R&D Intensity: Annual research and development spending, as a \% of an economy’s gross domestic product (GDP). • Patent Activity: The number of annual patent and grant filings, and the 3-year average growth of filings abroad and filings growth, as a share of the world’s total patent growth. • Tertiary Efficiency: The total enrollment in higher education, the share of labour force with advanced education levels, and the share of STEM graduates and in the labour force. • Researcher Concentration: Professionals (including postgraduate PhD students) engaged in R&D across the population. • High-tech Density: The volume of domestic, high-tech public companies as a share of the world’s total companies. Examples of high-tech companies include: aerospace and defense, biotech, internet services, and renewable energy. • Manufacturing Value-added: Manufacturing output levels—contributing to exports—as a \% of GDP, and per capita. • Productivity: GDP and gross national income (GNI) in the working age population, and the 3-year improvement. 13 14 15 Role of government in GIE • Enabler of new technology development and adoption • Mitigator of risks • Regulator of the frameworks in which firms and markets operate 16 Where should R&D be located? 15 16 17 Centralised R&D • Development of new technologies at the single (usually parent firm) location • Reasons for having centralised R&D - need for physical co-location of R&D: facilitate corporate-wide control and coordination - economies of scale (e.g. the purchase of expensive and specialised laboratories, recruitment of expert professionals) - competitiveness of R&D site (resources, labour, support industry etc) - government support and/or incentives Intensification of competition for innovation drives the globalisation of R&D for MNEs →R&D as an important motivation for internationalisation of MNEs 18 Decentralised R&D • Dispersed global R&D networks - global subsidiaries as sources of knowledge - multidirectional flows of knowledge • Reasons for having decentralised R&D - capitalising on location-specific advantages: obtaining more varied / competitive ideas, knowledge and talent resources and knowledge spill-over from regional clusters (e.g. Dyson in Singapore) - speeding up development time through parallel efforts at several sites - improving responsiveness to local needs by being closer to the market 17 18 https://www.youtube.com/watch?v=5yFY0ckgOWw