Foreign market entry strategies for financial services firms | FIN 300 (2024)

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FOREIGN MARKET ENTRY STRATEGIES FOR FINANCIAL SERVICES FIRMS.

Topic 1: Introduction to Foreign Market Entry

1. Understanding Global Markets

Global market knowledge is significantly important necessary knowledge that any financial services firm

that seeks to advance in the global markets needs to acquire. This means understanding the way

international markets work and how they vary from domestic markets, especially in terms of their

economic, political, and cultural context (Andersen, 2019). various market entry modes and

understanding their theoretical background helps develop fitting model of global markets, as it provides

an understanding of the strategic approach firms utilize when entering foreign markets. According to

Andersen (2019), firms need to decide whether to export their products, license them or sell joint

venture or a wholly-owned subsidiary, and all four options, have their various risks and advantages in the

level of control they provide. However, while the explanations provided contribute greatly to the overall

trade prediction model, analyzing world markets also includes considering peculiarities of certain

continents. For example, Bell, McNaughton and Young (2020) provide the example of ‘born-again’ global

firms and how the use of international entrepreneurship has been instrumental in their attempts to

enter new markets and reshape their strategies, thus underlining the key strength of flexibility and

innovation when examining global entry strategies. As Bilkey and Tesar (2018) find, exporting activities of

smaller firms are significantly different from these of large firms due to which to optimize them, unique

approaches have to be employed on account of the academic discussion of exporting behaviors. They

proposed that while engaging in export marketing, small companies are likely to face increased

challenges owing to restricted capital and inadequate market information, which implies that there is

need to support this group while at the same time strategizing adequately. Furthermore, Brouthers and

Hennart (2020) highlight the necessity of distinguishing between the limits of the firm when it comes to

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entry modes in the internationalization process. From these studies, firms in the financial services

industry can be in a position to have the right theoretical structure to analyzing markets in the global

setting, thus having the capacity to make strategic decisions in line with the opportunities in the

international setting.

2. Motivations for International Expansion

Bu reasons what make firms to engage in international expansion are complex because they are as a

result of different strategic, economic and competitive reasons. Internationalization is a strategic

imperative to many FSCs, like other MNEs in the global economy, for market exploitation, risk

management and competitive advantage. Cavusgil, Knight and Riesenberger said that firms’ motivation

include exploration of new market and customers and this was supported by literature. The current

globalization and liberalization of trade enable firms to penetrate other wider markets besides those in

their home country, thus enhancing the sale and overall profitability. Also, establishment in other

countries may act as growth opportunity that is useful when the local markets get to be saturated or

grow at a slow rate. Contractor (2019) also suggests that globalization has shifted the competition forces

by including the fact that it has forced firms to become global to remain competitive. by operating in

several countries, firms are able to adopt cross-country use of resources that may make improvement

and increase innovation capability and efficiency. Risk diversification is another quintessential reason of

this model. Cuervo-Cazurra (2018) argues that developing country MNEs including multinationals, use

international expansion to diversify the risks that are inherent in fluctuations of aggregated demand,

political legislation, and markets. While this model of dispersion is strategic in that it smooths out the

sources of income and minimizes dependence on any given market. In addition, various motivation

theories have been developed to explain the process of going international; among them, the most

famous is Dunning’s ( 2018) eclectic paradigm. The framework on which the paradigm is based is that

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companies go international in the light of ownership assets (like patents or brand equity), location assets

(like appropriate legal structures or the supply of raw materials), and that there should be internalization

gains that come under the assumption that a firm can control resources and operations more efficiently

than if it were to work with a third party. From these theories, it was established that companies within

financial services firms cannot afford to stay stagnant and hence extend their services to the

international market as a way of accessing higher returns, managing various risks and competitive

advantage by deploying strategic resources and increasing operational efficiency

3. Types of Market Entry Strategies

Identified strategic market entry approaches to financial services firms’ fall under the following

categorized techniques as described by numerous authors Each of the entries for selected market entry

techniques has challenging and advantages as stated by numerous authors. Ideally, getting to know the

above tactics can help firms aspiring to achieve maximum effectiveness in their international venturing

initiatives. Eden & Dai (2020) observe that business, trade and investments are related factors that

determine the market entry approaches in international business. The first is the exporting we discussed

on exporting meaning, where firms sell their services directly in the foreign markets. It has many

advantages and is popular for its lower risks and exploitation compared to other options. However, it

may result in the firm having little or no control over its offerings and intended market share. Another

familiar method is licensing where the foreign entity is given exclusive permission to use the intellectual

property or service of the firm. Licensing, on the other hand, makes it easier to secure a market in a

short span of time while spending little cash; however, this comes at the cost of the challenges of quality

assurance and title protection. Licensing trends are particularly important in internation

entrepreneurship stated Etemad (2019) whereby innovative firms use their valuable licenses to enter

new markets. Franchising is another similar strategy in which to the foreign franchisee the firm provides

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an opportunity to operate under its name and, under its system. According to Ghauri and Grønhaug

(2019), franchising propositions must be well-adaptable to the host country to facilitate adoption and

implementation, and this can be only practiced by having adequate knowledge on the market conditions

of the country. Joint ventures and strategic alliances involve firms forming partnerships with venturing

firms whereby they share resources, risks and returns. Last but not least, the-acquisition of a new,

wholly owned subsidiary in the foreign market provides for a fresh start. Thus, the analysis of these

market entry modes allows the prevention of ineffective and unproductive strategies to be made, and

the financial services firms to know and apply the most suitable strategies that would cater for their

objective and resources to gain efficient international expansion.

4. Regulatory and Compliance Considerations

Among factors firms must consider before expansion are Legal and compliance factors are important

factors firms need to consider prior to expansion into overseas markets. This is always tricky as each

country’s market has its own regulatory systems and business compliance laws. According to Hennart

(2019), digitalized service multinationals need to be conscious about data protection regulation and

cybersecurity laws, which are different from one country to another. For instance, the General Data

Protection Regulation (GDPR) in the European Union creates high standards for managing and protecting

data and makes it compulsory for firms to adopt proper data management practices. According to Hill

and Hult (2021), it is crucial to comprehend the local regulations and avoid common legal traps that

might interfere with the functioning of a business. Observing AML policies and KYC measures is crucial

for the integrity and reputation of any financial services firm. Regulations require firms to implement

comprehensive policies and practices for detection and identification of suspicious activities, which is

time-consuming and rises with increased experience and knowledge. Incremental approach can enable

the firms to better decipher regulatory contexts and environments to minimize on the liability of

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foreignness and outsider-ship. Cautiously expanding into new markets, companies can gain the skills and

knowledge to deal with issues of regulatory compliance. Kano et al. (2020) give a conceptual

understanding of global value chain and how compliance is crucial in the networks. partners and

subsidiaries have to adhere to the local and international legislation, which creates a critical need for

thorough management and integration throughout the value chain. Non-compliance by any part of the

chain exposes the entire chain to legal and financial implications. Knight and Liesch (2019) pointed out

the process of internationalization moving from a gradual incremental process, to the born global model,

where firms internationalize into many countries from their inception. For these firms, awareness of

multiple regulation needs to be achieved right from the start to prevent such issues of disruption of

operations and legal repercussions. Compliance environments need to be properly reviewed, and

compliance mechanisms that could be adapted to the different domains adopted.

Topic 2: Market Analysis and Selection

1. Market Research Techniques

Market research methods is a prerequisite for financial services firms who are interested in expanding

their operations cross border since it provides methodologies of gathering, analyzing and interpreting

information in order to make the right strategies in any targeted market. More broadly, technology has

greatly advanced and enhanced market research, whereby firms are now in a position to analyze

enormous sums of data and use artificial intelligence and machine learning to develop a profound

understanding of consumer behavior and market patterns (Kumar & Venkatesan, 2020). These intelligible

tools help the firms to prepare huge amount of market data in an effective manner and considerably

improve the possibility of a firm to perceive threats and opportunities related to the foreign markets.

The conventional market research techniques of collecting data through questionnaires, dispatching of

surveys, and focus group discussions continue to be useful as potential customers can in one way or the

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other express their preference by sampling services from various firms. However, these methods have to

be supported with methods of digital analytics to provide a full perception of the market conditions. It is

particularly important in case of foreign markets to gain insights into the cultural and behavioral patterns

of target countries and markets through employing qualitative research tools when entering new

markets and concluding partnership agreements (Klew & Sinkovics, 2020). Symbiotic to the growth of

the international entrepreneurship theory is the knowledge that market research forms the premise and

ESSENTIAL foundation of the entrepreneurial process; a fact more relevant to new ventures which have

been known to choose the ‘born global’ model (Li et al. , 2019). Market research is invaluable for these

kinds of ventures as it allows them to quickly enter and adapt to multiple markets at once, which is

essential when pursuing rapid international expansion while remaining economically competitive in each

country of operation, as well as avoiding some of the pitfalls common to business such as violating local

laws or not fulfilling the needs and wants of customers or rivals in the target area. Another key

component of market research is that firms must address different public policy issues as they should be

aware of different changes in their local laws and different governmental policies that might influence

their work (Lundan, 2018). They need to follow specific policies in order to avoid severe consequences

for market entry strategies and to understand what changes occur in the world and can influence their

decisions.

2. Evaluating Market Potential

The measurement of market attractiveness is an important task for financial services companies when

considering international expansion since it allows the assessment of possible opportunities and the

rightful distribution of resources. As Luo and Tung noted in their work (2018), the work done to make the

determination between springboard MNEs fosters better comprehension concerning market potential.

Springboard MNEs use certain locations as a first point of entry to reach a larger market in a region to

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fully actualize market opportunities. In this strategy, much attention is paid not only to the evaluation of

the target audience itself, as well as the regions that are in its vicinity and how they are linked. Further,

Meyer and Peng (2016) note that the research on emerging economy business ought to be firmly based

on theoretical framework, through examining the Market attractiveness firms should take into

consideration the economic level, legal system and culture of the nation. Narula & Verbeke (2018)

elaborated more on the role of local context in international business study by emphasizing the

importance of market appraisal meaning that before venturing into any market, firms need to carry out

market research to understand the peculiarities of that market. Indeed, while internationalization

process and born-global/international new venture modes provide two exciting views on entry positions

(Paul & Rosado-Serrano, 2019). While gradual internationalization is a step-by-step process of going

global with a slow pace and with available resources and knowledge, born-global operations seek for

international growth in a fast and continuous manner. Determining market potential requires

understanding capabilities, attractiveness and competitive position of a particular market segment

before determining the best strategy. Through these areas and by following a more structured idea of

markets assessment, financial services firms are able to recognize and leverage many opportunities in

international markets where they operate, and at the same time manage operational risks related to

entry and expansion of the market.

3. Risk Assessment and Management

Risk evaluation and control is a crucial factor in the process of internationalization of financial services

companies; they find themselves in a position of uncertainty while operating in the foreign countries.

According to Peng and Meyer (2021), it is crucial to investigate systematically potential threats related to

operation on the international level. Risks include such factors as political risks, change in laws,

fluctuations in exchange rates, and varying culture, among others. It is therefore important for firms to

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ensure that upon identification of risks they come up with good comprehensive risk management

strategies with a view of managing the risks effectively. Pisani et al. (2017) posit that CSR can be used as

a risk management tool that firms can use to increase their capacity to manage risk as a result of

creating social capital thus making them more credible among the stakeholders. In the article under

analysis, Rugman, Verbeke, and Nguyen (2018) overview the development of the international business

theory during the fifty years, stating that risk management is a more significant concern as the global

environment is continuously linked and unpredictable. Another aspect of risk management for globally

operating firms, outlined by Schotter et al. (2017), is boundary spanning. Cooperative activities, including

strategic partnerships and networks, are useful in mobilizing resources and knowledge that originate

from areas outside the firms’ boundaries, and thus minimize dependence on individual markets or

partners while at the same time increasing firms’ adaptability to volatile market environments. Thus, if

incorporated into the strategies of risk evaluation and regulation, financial services firms will be able to

manage the challenges of operating on the international level and protect their value as they seek ways

to expand their operations and tap new markets.

4. Strategic Market Selection

Selecting the right markets is one of the strategic management tools companies have to consider during

the international expansion, particularly in the context of the financial services businesses. Shenkar, Luo,

and Chi in their recent publication (2021) also stress on the concept of strategic decision making for the

firms in international business context, and stress on the idea that the firms should make correct

decisions regarding the choice of market opportunity and its compatibility with the organizational

objectives and resources. It includes the elements like the size and growth of the market, the

competition it is likely to face, the regulatory standards in the country, and the extent to which the

company’s culture blends with the market. The importance of the eclectic paradigm has further been

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highlighted by Singh and Kundu (2018) in their extension of this discussion with the aid of the growth of

ECCs. According to the eclectic paradigm, MNEs go abroad in the pursuit of ownership advantages,

location advantages and internalization advantages of external expansion which are the guidelines that

firms have to follow while determining appropriate markets for international expansions. Analyzing

acquisition and internationalization processes, Sliwinski and Gabryś (2018) point to market conditions as

key drivers in determining the use of international business models specifying that factors such as the

institutional environment, technological infrastructure, and consumers are important in emerging

markets. Looking at the above determinants, firms in the financial services industries can predict the

susceptibility of a given market and then devise strategies accordingly. Tallman and Pedersen (2019) also

underlined that geography plays the crucial role in international business, as the firms have to think

about the location decisions, considering such factors as suppliers, customers and competitors in chosen

strategic markets.

Topic 3: Entry Strategies and Implementation

1. Direct Investment Strategies

Direct investment strategies are considered very useful in the process of internationalization of financial

services firms because it involves expansion of the company’s operations in a direct manner to the

foreign countries and allow a greater degree of oversight of the operations. In the same article,

Teagarden, Von Glinow, and Mellahi (2018) call for making first Hopner and Jackson, now international

business research more situated and yield both higher scholarly value as well as practical usefulness:

there is always important to acknowledge the context in which firms are operating when developing

strategies on direct investment. This stems from the fact that in their investment decisions, the firms

bear in mind aspects like legal requirements, culture, and market trends among others as a way of

narrowing down market factors. While many LMNEs may engage in a large variety of forms of investing

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internationally, which this paper attests, smaller firms lack the capabilities to engage in these forms of

investment and rely mostly on direct investment to expand their international business. Similarly, Welch

et al. (2018) posit that the strategy of theorizing from case studies can help increase the richness of

studies in the field of international business; they specifically indicate that gaining insights into the best

and worst practices of direct investments may be achieved through studies of concrete, real-life

experiences of firms. it is evident that through comparing case studies of direct investment in different

environments, information can be gained by firms that may allow for more perfect strategies to be

created in relation to international business expansion. Moving forward to the next part of the analysis,

Wernerfelt (2020) helps this discourse by offering a resource-based view of the firm that posits that

direct investment strategies have to consider specific but firm resources and capabilities as guidance

systems. in enhancing their unique resources, financial services firms could utilize direct investment in a

manner that will offer competitive advantages in the host country’s markets and-explore sustainable

growth.

2. Indirect Investment Strategies

Such techniques are regarded as an indirect way of entry into foreign markets since they may appeal to

firms in the financial services industry that have been looking for ways in which to internationalize.

These strategies seek to rely on affiliation, association, and subsidiary possessions to access different

international markets and tap on ‘value-added’ opportunities. Williamson & Wan (2017) in their study

bring into focus the support from home country as a way of entering through indirect investment in EM

MNCs. Based on quantitative analysis this study showed that home country support in terms of

government policies, financial incentive and diplomatic relations can offer firms with important

resources and legitimacy in unfamiliar locations. Xu & Meyer (2018) highlight on the significance of the

research arena where he elaborates that the institution-based view and the contextual contingency

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theory show that for firms to succeed they devise strategies that best suit the emerging economy’s

institutional environments, and market circ*mstances. This includes issues like political structures, high

level of legal reforms and other socio-cultural parameters during the formation of partnership and

alliances. In the study conducted by Yamin and Andersson (2019), the authors’ focus on the dynamics of

the creation of subsidiary business networks as the major aspect of indirect investment processes. These

networks help firms enter the foreign markets either through affiliations or partnerships in foreign

markets, thus help organizations to leverage on the know-how, capital and connection of other alliance

members in order to achieve organizational goals and objectives of firms. Through the process of

building internal embeddedness within the subsidiary networks over time, the financial services firms

can indeed develop an effective and efficient mechanism in anticipating and responding to the

complicated operational environment as well as effectively unlock new opportunities for business

growth and expansion. Hence, it is seen that indirect investment strategies help the financial services

firms to maintain a lot of flexibility and adaptability in their global strategies for expansion, and allows

them to harness external resources and relationships to achieve more and more efficient results from

their operations in foreign countries as a way to achieve organizational goals and objectives while at the

same time reducing on direct investment risks.

3. Digital Market Entry

Market entry through digital channels has emerged as a critical tactic for multisector financial services

firms seeking to establish a presence in global markets that is more relevant than ever in the current

globalized environment. As Yip and Bink (2020) suggest, there is value in a coordinated approach to

managing global customers, with an emphasis on digital channels, especially when targeting customers.

Benefits of adopting the digital platforms is that financial services firms can effectively penetrate into

new markets without having to establish new brick-and-mortar systems, therefore effectively facilitating

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them to have direct access to customers in different regions. However, as Zaheer, Schomaker, and

Nachum (2020) rightly establish, distance has not lost its relevance in today’s globalization and

emphasize that it is crucial to analyze local environment before posting an ad and fine-tuning internet

marketing strategies to local factors and circ*mstances. Zhao, Park, and Zhou (2018) also stressed heavily

social adaptation in MNC strategy where they pointed out that for firms to effectively to achieve digital

market entry, it is not simply enough to employ the use of digital technology alone but firms must also

engage the current business environment and adopt the appropriate business models and market

relationship management to suit the host country social context. Zhou, Wu, and Luo (2017) also expand

on the mediating role played by social networks in the matter of internationalization, emphasizing that

social networks that are especially digital should be developed and utilized to boost the performance of

born-global enterprises. Expansion and evolution in the digital economy platform has impelled social

network to become an efficient tool to enter new markets, raise corporate awareness and relevancy of

the services provided, as well as to build new customer relationships that contribute to the growth of

the company’s market position and competitive advantage on the international stage.

4. Operational Considerations

Here are some of the operational factors that should be considered while opening branches of financial

services firms in other countries. In a similar context, Zhuang and Cantwell (2020) agree that the cross-

border acquisition hierarchy of knowledge spillovers adds to the effect of cultural distance and

absorptive capacity on performance operation. It is therefore imperative to co-ordinate cultural tension

and enhance organizational absorptive capacity for the purpose of integrating the knowledge and

resources acquired. However, the-post transaction performance and survival become a significant issue

noted by Zollo and Meier (2018), on which the proper planning and management of the M&As are

important for achieving the operation excellence. To this orchestration is the problem of funds which is

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known to be a considerable factor; most especially in emerging markets as noted by Zubair, Kabir and

Rasool (2020). There is therefore the need for firm to harness this size and develop it as a way of

overcoming these constraints and improve on the operation performance. Based on the above

breakdown, it can be seen that if firms in the financial services industry start paying attention to these

operational factors early enough, they will stand to benefit greatly with regard to sustainable overseas

expansion and growth irrespective of their unbiased relation to environment within the host country.

Topic 4: Marketing and Branding in Foreign Markets

1. Adapting Marketing Strategies

Since the nature of marketing in one country is quite different from that in another, it is crucial for FSPs

that wish to expand into international markets to adapt to these markets so that they can relate well

with different consumers and Cross-cultural barriers. Zhuang & Cantwell (2020) making use of cultural

distance and absorptive capacity shed light on the conception of knowledge spill over in the Cross

Border Acquisition with respect to marketing adaptation with context to actual or perceived local

societal culture. This not only obliges firms to craft their marketing communication and strategies, as

well as their products and promotions appeals in reference to the social culture of the chosen consumer

market, but also makes them improve the consumer-related appeals of their brands. Additionally, Zollo

and Meier (2018) point out that radical market strategy changes after M&As typically render the firm’s

post-merger integration plan more challenging to execute. Based on the cases of merger and acquisition,

the question of communicating with customers and the presentation of value-added is vital for success.

Further, Zubair, Kabir and Rasool (2020) have also highlighted the implications of a lack of finance for

marketing strategy management and implementation with a special emphasis on emerging economies,

where unrestricted marketing resources may not always be available for marketing

campaigns. Innovative and affordable forms of communication and marketing strategies employed by

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firms involve using organizational influencers, web-based platforms and partnerships to enhance the

accessibility of their brands. However, the study done by Zúñiga-Vicente and Vicente-Lorente (2019),

shows that the international diversification has a positive relationship with the firm performance;

adaptive marketing strategies also hold an important relation towards improvement of performance

through developing international markets. Thus, it is reasonable to suggest that dynamic market

environments that are characteristic of the financial services sector, as well as purposefully designed

marketing strategies, tailored to the local context, can provide firms with better positioning and

competitive advantage in targeting consumers, leading to increased customer loyalty, and expanding the

opportunities for their international growth for sustainable business success.

2. Digital Marketing in Foreign Markets

In global economy, digital marketing stands out as an effective vessel for financial companies interested

in expanding their operations to foreign territories. Welch et al. argue that there is need to theory

building from case studies so as to bring about pluralist future for research in international business, it is

argued that, understanding cultural peculiarities through case studies will enhance the development of

effective digital marketing strategies. In his work, Wernerfelt (2020) adopt a resource-based view of the

firm to express that digital marketing programmes should be aligned to the firm’s valuable, rare, costly to

imitate, and non-substitutable resources in order to achieve competitive advantage in the international

markets. Furthermore, Williamson and Wan (2017) stress the significance of the support from the home

country to enable the internationalization of FEMM as well as noting that digital marketing strategies

suitable for the home country should also correspond to the host country’s population. Xu and Meyer

(2018) called on the strategy research to align the theory with the context, implying that the digital

marketing strategies should be appropriate to the institutional setting of the emerging economies and

the market condition. Moreover, developing subsidiary business networks, Yamin & Andersson, 2019

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highlight on the importance of digital marketing for the creation of internal embeddedness over time.

Financial services firms can gain better visibility and local contacts, as well as promotional and sales

opportunities in the self-same geographic locations through subsidiary networks and digital

technologies. Digital marketing aids firms to identify and engage their target stakeholders thus fostering

business growth in the context of the world’s growing interconnectedness.

3. Customer Relationship Management

Customer Relationship Management (CRM) is considered to be of paramount importance in internation

business, especially, in the financial services industry which seeks to develop long-term relationships

with the customers across geographical frontiers. Referring to Schotter et al. (2017), CRM pays for inter-

organizational cooperation that can be basically increased in global organizations due to the cultural and

geographical differences. Shenkar, Luo, and Chi (2021) highlight the importance of CRM for inter business

relationships with customers, stating that it is necessary to maintain customized approaches to meet the

differences of customer characteristics in different cultures and markets. A more recent article by Singh

and Kundu (2018) further builds on this by analyzing the rise of e-commerce corporations (ECCs) and

their dependence on CRM for customer involvement and retention in the digital period. It highlights the

relevance of eclectic paradigm in this context in analyzing the overall ECCs CRM strategies which applies

ownership advantages, location advantages and internalization advantages aiming at establishing client

relationship across the globe. Further, Sliwinski and Gabryś (2018) aboard the predictors of the IBoM

adoption in the emerging markets with the focus on investigating the importance of the CRM systems

and strategies required to meet the local market requirements and the customers’ needs. Tallman and

Pedersen (2019) write about this in their article where they raise an important point about the changing

nature of geography in IB research, saying that the CRM practices depend on the geography of the

country or region that the firm is operating in. Moreover, following the guidelines of Teagarden et al.

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(2018) on how international business research should be contextualized to improve the quality of CRM

research, their study underlines the need to contextualize cross-border customer relationships from

cultural, institutional, and market perspectives. To summarize a role of CRM is a strategic between

financial services firms’ globalization, helping to build a trust, loyalty and satisfaction among various

customers globally.

4. Measuring Marketing Effectiveness

Marketing metrics is a significant aspect for the FSG that needs to operate effectively especially in the

international platform as it provides an insight of the effectiveness of the marketing strategies. PAUL and

ROSADO-SERRANO (2019) stress that the choice of gradual internationalization versus born-

global/international new venture models call for more rigorous comparison of marketing effectiveness,

and that firms must choose their measurement strategies with reference to their internationalization

strategies. Peng and Meyer (2021) emphasize the importance of the balanced performance

measurement that reflects both rationales of marketing in international business environments and non-

financial rationales. Evaluating effectiveness of marketing communication by gauging satisfaction, brand

recognition, and market share in addition to financial ratios. Also, Pisani et al. (2017), indicates the

importance of marketing effectiveness and CSR in the promotion of a firms’ initiatives in global markets

where firms should evaluate the impact of CSR activities in Brand Perception by customers. Rugman,

Verbeke, and Nguyen (2018) added their voices to this debate by arguing that marketing effectiveness is

better measured through a multidisciplinary evaluation framework, informed by the international

business theory. Moreover, Schotter et al. (2017) mention that boundary spanning is crucial in global

organizations with the purpose of collecting market information and feedback – which, in turn – could be

valuable to the assessment of marketing effectiveness. In their recent publication, Shenkar, Luo, and Chi

(2021) give a systematic outlook to the field of international business, thereby underlining the

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importance of suitable measurement concepts that have to be adjustable to the somewhat volatile

context. Therefore, marketing effectiveness assessment in global markets entails an integration of

internationalization approaches, global performance indicators, CSR efforts, cross-disciplinary principles,

MI and flexibility to gauge and enhance overall marketing performance for FS firms.

Topic 5: Financial and Strategic Management

1. Financial Planning and Analysis

FP&A is often strategically located within the heart of the organizations’ competitive positioning and

management strategy in many financial services firms competing in the global economy. Ghauri and

Grønhaug (2019) discuss research methods in business research and show how analytical rigour in APA is

beneficial in backing decisions in FP&A practices. With regards to thinking globally in the context of I/B,

this paper on Ángel Hennart and with reference to a cutting-edge article, the author of this paper wants

to bring attention to how digitalized service multinationals have become an increasing factor and how

this has an impact on FP&A: they must transform and digitize their financial planning models with

services. The authors Hill and Hult (2021) introduce learners to the field of international business and

develop awareness of the need to align FP&A activities with competition approaches within globalized

markets with the aim of improving financial performance and avoiding threats. In this vein, Johanson

and Vahlne (202): reopen the argue of Uppsala IM process model and all point out that management of

FP&A as how to handle the liabilities of outsider-ship and how to work the foreign market. Also, Kano,

Tsang, and Yeung (2020) explain the potential of GP&A in analyzing the value networks, stressing the

importance of FP&A in managing value delivery across the borders of international businesses. FP&A is a

concept with which financial services firms can build a stable operations foundation in international

markets, ensuring the availability of reliable data on potential risks, the possibility of optimizing

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investment and the ability to take advantage of prospective opportunities for successful development on

the global stage.

2. Funding and Investment Strategies

Fund acquisition and investment models are critical to the firms in financial services industry seeking to

expand their operations in global markets, therefore, the firms must have adequate knowledge on the

business environment in different countries and the various financial concepts. Cavusgil et al. (2021)

describe the new realities in the context of the international business environment and underline the

necessity of strong funding mechanism to provide an efficient financial backing for expansion

activities. Zollo and Meier (2018) engage with mergers and acquisitions and explore how and with what

consequences practice can vary when determining funding for corporate transactions. Analyzing the link

between the financial autonomy and the firm performance in emerging market to explain the mediating

role of firm size and financial development in influencing the investment strategies. International

diversification and its causal effect on firm performance was also examined by Zúñiga-Vicente and

Vicente-Lorente in 2019, illustrating investment diversification to be a strategic imperative for

strengthening organizations’ financial sustainability and competitiveness globally. Zucchella, Hagen, and

Serapio (2018) have equally done a good job in writing on international entrepreneurship to give

theoretical frameworks and guidelines for sources of funding for entrepreneurial ventures with

ambitions of going international To summarize, it is crucial to state that international business

environment presents a set of challenges that financial services firms must counter by implementing

intelligent funding and investment policies supported by thorough analyses, comprehensive global

market research, and deep understanding of the current economic climate.

3. Strategic Management and Leadership

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Overview of strategic management and leadership considering the process of international business is a

complex problem that needs solution based on the system analysis of factors and leadership.

Furthermore, Williamson and Wan (2017) also support the concept of the home-country support in

facilitating EMNEs’ internationalization efforts, stressing on the significance of utilizing domestic

resources in pursuing internationalization strategy. Building on these accounts, Xu and Meyer (2018)

have continued this line of thinking while arguing for the contextualization of strategy research in

emerging economies in order to merge theory with practice. Yip and Bink (2020), propose a systematic

approach in managing global customers, stressing that customer focus is a strategic imperative for

unlocking sustainable competitive advantage for multinationals operating across the globe. As Zaheer,

Schomaker, and Nachum note in their paper (2020), the geographical distance is significant when it

matters to global expansion decision and remains an important consideration for managing operations

abroad, which involves both opportunities and risks. Zhao, Park, and Zhou (2018) expand this literature

by addressing the key factors for the MBA in emerging markets, where social adaptation is core to

synchronizing business strategies with the local socio-cultural environment. Finally, based on an analysis

of the born-global firms, Zhou, Wu, & Luo (2017) have explored the dynamic effects of the firms’

internationalization where social networks are considered to mediate the relationship between

internationalization and global performance. Strategic management and leadership in international

business requires a complex and multi-faceted model of knowledge, providing theoretical and practical

frameworks, adaptation, and vision to manage the established challenges of the global market

effectively.

4. Performance Management and Reporting

Measuring and controlling organizational performance specifically in international business requires

systematic approach for management of performance enhancement programs across various

20 | P a g e

geographical settings. Shenkar, Luo, and Chi (2021) stress the necessity of clear and consistent

performance management systems especially when operating in the international context and state that

a greater level of adaptability and flexibility is needed in the current environment due to the volatile and

unpredictable market conditions. Singh and Kundu (2018), illustrate growth paths of e-commerce

corporations (ECCs), by using the eclectic paradigm to understand the strategic dynamics of mobilizing

diverse resources and capabilities for sustainable growth leveraging digital markets. Sliwinski and Gabryś

(2018) examined IBM adoption in emerging markets based on Competitive Advantage and Business

Performance and provide evidences on organization performance and market penetration strategies in

fast growing contexts. By discussing how the geography agenda in IB research has changed over time and

how the research in the geography of international business focuses on understanding how spatial

context and organizational performance interact to influence strategic management and market

conditions. Further, in their article titled ‘The State of International Business Research: A Review and

Implications for Future Research’, Teagarden, Von Glinow, and Mellahi (2018) propose a

contextualization of research on international business to improve methodological quality and practical

utility, arguing that understanding how and why performance management systems work prosperously

in different international environments is vital from a strategic point of view. To sum up, it can be stated

that both the theoretical and practical considerations, the managerial viewpoints, the approaches and

methods successfully applied in practice, and the remainders of the more rigid frameworks call for a

recognizing the challenges of performance management and reporting in international business and the

need to rise up and meet them effectively in order to ensure success and achieve sustainable

competitive advantage in the global market.

21 | P a g e

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