A systematic Review of Entrepreneurship;

A systematic Review of Entrepreneurship; A case study of Global Automotive Industry ASSIGNMENT Conduct a systematic review based on 6 journal(attached) related to Entrepreneurship practice of Global Automotive Company. Critically discuss the following themes (or as close as possible to them): a.    Literature review grounding the conceptual model b.    The conceptual model c.    Research design d.    Data analytical methods e.    Discussion f.    Your overall assessment of the relevance and appropriateness of the study. Come out with similarity of the study and also synthesis for all journal. Finally, conclusion towards all the journal is required Research on International Entrepreneurship Strategy Model of Automotive Enterprises MIAO Qing, GE Baoshan School of Management, Jilin University, P.R.China, 130025 [email protected] Abstract International entrepreneurial strategy is one of the most important decisions of manufacturing industry nowadays. World Automotive enterprises all accelerate their international entrepreneurial process. Chinese automotive enterprises have also entered the international market actively. The authors have made empirical study by means of questionnaire and constructed a model of international entrepreneurship strategy. The article studies the typical case based on this model. The study provides instructive significance for the international entrepreneurship strategy of Chinese automotive enterprises and the development of automotive industry cluster. Keywords Automotive enterprise, International entrepreneurship, Entrepreneurial orientation, Model construction, Empirical study 1 Introduction The world economy is undergoing a fundamental change. With the development of economic globalization, there is growing concern about international entrepreneurship issues. In all manufacturing industries, the automotive industry took the lead of the globalized industries. The world major automotive groups have been in the implementation of the global entrepreneurship activities in order to get better access to the economic benefits, low costs and competitive capability. These international entrepreneurial activities began in the early 1970s. Since the 1990s, the process of globalization has speeded up significantly. Chinese automotive enterprises have been active in the foreign market. The initial research on international entrepreneurship began from Morrow (1988). Zahra (1993) defined international entrepreneurship as the study on the nature of the entrepreneurial behavior undertaken by the enterprises when they enter international market. Oviatt and McDougall (2005) considered that "international entrepreneurship is to discover, evaluate and make use of the opportunities across the national boundaries in order to create future products and services". In China, some scholars are also conducting studies on international entrepreneurship, but the studies are still in its infancy. Most of the scholars have been focused on the investment of international entrepreneurship such as Chen Gongmeng and Chen Hongbo (2002) from Hong Kong Polytechnic University. In addition, Liu Bangcheng from Shanghai Transportation University and Wang Chongming (2005) from Zhejiang University summed up the international entrepreneurship mode. Li Qianwen and Zhang Yuli (2004) introduced the results achieved by foreign scholars who are concerned about Chinese entrepreneurial operations. The international entrepreneurship studies abroad depended on the American cases (Bloodgood, 1996; McDougall and Oviatt, 1996; etc.) on large extent. The theoretical construction is lack of consistency. Domestic researches on international entrepreneurship are confined to foreign entrepreneurship model and research results. Furthermore, the study based on the background of a certain industry is rarer. This article reviews the international entrepreneurship situations of the domestic and foreign automotive enterprises and constructs a model of international entrepreneurship strategy. The authors have sent out 210 questionnaires to the automobile enterprises to make the empirical study since Sep.2007. The main names of Automotive Enterprises that have completed the questionnaires are shown in Table 1. 2 International Entrepreneurial Situations of Automotive Industries 884 2.1 World automotive industry Table 1 List of Automotive Enterprises Completing the Questionnaires No. Name of Automotive Enterprises No. Name of Automotive Enterprises 1 FAW Group Corporation 7 Great Wall Motor Corporation 2 Tianjin FAW Toyota Motor Co.,Ltd 8 Hafei Automobile Group 3 Chery Automobile Corp. 9 Hebei Zhongxing Automobile Co.,Ltd 4 Shanghai Automotive Industry Corporation 10 Chang Feng Motor (Group) Co.,Ltd 5 Dongfeng Motor Corporation 11 Anhui Jianghuai Automobile Co.,Ltd 6 Nanjing Automobile (Group) Corporation 12 Liuzhou Wuling Motor Co.,Ltd Since 1990s, globalization has been notably accelerated and foreign automotive enterprises also accelerate their process of international entrepreneurship. Among American companies, GM and Ford are the most influential entrepreneurs. So far, GM has set up automobile manufacturing businesses in 32 countries and its vehicles are sold in 200 countries. GM has many strategic and cooperative partners all over the world. Ford Motor Company has set up production, assembly and sales organizations in 22 countries outside US and Canada. Ford has sold its products in the markets of 180 countries and regions by its distributors. German automotive industry has already showed an irresistible international entrepreneurial trend. Audi set plants in Hungary to produce engines and cars. It also produces cars in Brazil. Volkswagen set up plants in Spain to produce cars. It also produces Skoda cars in Czech, gearboxes in Slovakia, gearboxes and trucks in Brazil and set up joint venture in China. BMW has built car production lines in England and USA. BMW has also built a joint venture with China Brilliance Automotive Company in 2004. The overseas entrepreneurial bases of Benz are in Spain, USA, France and Southeast Asia. In 1980s, Japanese automotive industry invested tens of billions dollars in North America and Europe. In 1990s, they invested more in Asia, Latin America and Middle East. To the early 21 century, there are 21 Japanese assembly plants and 6 Japanese engine plants in North America. 2.2 Chinese automotive industry Chinese automobile enterprises achieve a breakthrough after WTO accession. Automobile production and export sales have risen every year. Chinese domestic automotive companies begin to operate foreign direct investment. They are on the road of international entrepreneurship. 2.2.1 Export Chinese automobiles and parts export have increased yearly. Table 2 shows Chinese import and export of automobiles from 2000 to 2007. Table 2 2000-2007 Chinese Automobiles Export year Total Number ( 10 thousand ) Amount ( 100 Million USD ) year Total Number ( 10 thousand ) Amount ( 100 Million USD ) 2000 2.7 2.0 2004 13.6 6.6 2001 2.6 2.1 2005 17.3 15.8 2002 2.2 2.3 2006 34.3 31.3 2003 4.6 3.7 2007 61.5 73.2 Chinese automobiles’ international market is stable in 2007. Middle East, Africa and Asia remained as a traditional market. Eastern European markets have been vigorously developed, and the South American market shows substantial growth. 2.2.2 Foreign direct investment In the process to expand overseas markets, enterprises usually export at first, and then choose overseas production at proper time. In 1992, FAW established the first overseas automotive assembly production line in Tanzania. In recent years, Chinese automotive enterprises have quickened the pace of foreign direct investment. Some enterprises with strong financial position acquired foreign automobile manufacturers to obtain the advanced technology and mature sales channels. SAIC acquired 22.3% shares of Korean Daewoo Group in 2003. In 2006, Chery signed an agreement of joint venture with Russian Autotour 885 Corporation. Nanjing Automobile successfully bid for the British Rover in 2006. In 2007, Brilliance, Chery, FAW and SAIC respectively built factories in South Korea, Argentina, Russia and Indonesia. 3 Construction of International Entrepreneurship Strategy Model Based on the questionnaire research and the present international entrepreneurial situations of automotive enterprises, this paper constructs one model of international entrepreneurship strategy. 3.1 Model variables 3.1.1 International entrepreneurial opportunities Entrepreneurial opportunity means “inaccurately defined market demand or not fully used resources and capabilities”. It’s a dynamic concept. The author considers that the automotive industry international entrepreneurial opportunity could be studied from three aspects, namely, industry and market, economy and competitive advantage. 3.1.2 Organizational factors Variables related to enterprise international entrepreneurship are always the focus of international entrepreneurship research. Here, we discuss two variables: top management team (TMT) and enterprise resource. Strategy researchers always insist that characteristics of enterprise top management team can determine the success or failure of an enterprise. Drucker (1999) considered that the existing enterprises could occupy dominant position, mainly because they already have management capabilities, which may enable high-degree innovation. "The elements put into production activities to create wealth” are all called resources by economists. Resources are the various inputs of organizations, including human, finance and physical elements. The researchers conclude that the business experience and resources will strengthen its international entrepreneurship. 3.1.3 International environment Based on the study results of entrepreneurial environment, especially the international entrepreneurial environment, the international environment is divided into three dimensions, namely, environmental dynamic, environmental heterogeneity and environment hostility in this paper. Dynamism of the external environment is a key element. It describes the extent of the environment change over time. Environmental dynamism indicates that the environment is basically static or in a continuous process of change. Environmental heterogeneity can be viewed from two angles. One is the number of the related factors impacting competitive environment. Generally speaking, the more influential factors, the more complex the environment is. In addition to the number of factors, the correlation between factors also has an effect on the complexity. If there are multiple interactions among the factors, it will bring more complexity, which is difficult to deal with, and heterogeneity will be very high. Hostility reflects the scarcity and uncertainty of resources and information. The more hostile, the stronger the enterprise competitiveness is in the international market. 3.1.4 International entrepreneurial orientation The recognized concept of entrepreneurial orientation was proposed by Miller (1983) and perfected by Dess (1996). All high-entrepreneurship-oriented enterprises often have common characteristics: innovation-driven, action leading and risk taking. Innovativeness means that the company engages in or supports the new ideas, creates new things, do new experiments or other creative actions. It will lead to the emergence of new products, new services or new technological processes. The definition of proactiveness is from Lumpkin and Dess (2001). Proactiveness represents the far-sighted perspectives of market leaders. Their actions with vision and foresight will affect the environment. Risk taking is the degree of commitments that Managers are willing to give on great risky resources. Entrepreneurial-oriented organizations tend to put into a lot of assets to obtain high returns. 886 3.1.5 International entrepreneurial performance When evaluating the performance of a company, the owner or manager’s overall satisfaction with corporate performance and non-financial objectives may need to be attached great importance to. Entrepreneurial performance can be discussed from financial performance and non-financial performance. 3.2 International entrepreneurship strategy model of automotive enterprise On the basis of the analysis above, the authors proposes an automotive enterprise international entrepreneurship strategy model (shown in Figure 1). This model analyzes the relationship of the variables in automotive industry more detailed and specifically. Figure 1 Automotive Enterprise International Entrepreneurship Strategy Model Firstly, the model researches the major influential factors of international entrepreneurial orientation. The author believes that the international entrepreneurial orientation is related with three factors: international entrepreneurial opportunities, organizational factors and international environment. Secondly, the model researches the relationship between international entrepreneurial orientation and international entrepreneurial performance. International entrepreneurial performance consists of two dimensions: financial performance and non-financial performance. 4 Case study of Chery Automotive Company Based on the Model 4. 1 International entrepreneurial opportunities The international entrepreneurship of Chery automotive company started totally occasionally. In Oct. 2001, a Syrian found a Chery car in Beijing, so he made a contract of 200 cars with Chery. From then on Chery began her overseas trade. Chery made full use of the opportunity in Syria and also created many opportunities in the markets of United Arab Emirates, Egypt, Cuba and so on. Chery entered the international market successfully. From the cases of Chery, we can see that enterprise international entrepreneurship is promoted remarkably by international entrepreneurial opportunities. 4.2 Organizational factors 4.2.1 Top management team In Chery automotive company, top management team contains talents of different types. With the cooperation of TMT members, Chery has continually made achievements one by one. Chery top management team makes the aim and strategy of international entrepreneurship clearly and positively promotes international entrepreneurial activities. 4.2.2 Enterprise resources International Entrepreneurial Performance Financial performance Non-financial performance International Entrepreneurial Opportunities Industry and market Economy Competitive advantage Organizational Factors Top management team Enterprise resources International Environment Dynamism Heterogeneity Hostility International Entrepreneurial Orientation (IEO ) Innovativeness Proactiveness Risk taking 887 In the process of international entrepreneurship, on one side Chery automotive company actively made full use of the convenient policies given by the government and the sources of its own. On the other side, Chery actively took in domestic and overseas resources. Chery implemented turn-key project and made full use of advanced computer techniques to develop the products. “Based on myself and combine the world resources” is its independent development rule. 4.3 International environments With the development of globalization, the international environment faced by automotive industries is changing. It’s very hard for Chery to compete with others in the three traditional markets namely America, Japan and Europe. In view of strong opponents and the complex situation of host countries, Chery chose the countries which are easy to enter like Middle East and Southeast Asia. Through the analysis of successful international entrepreneurial case of Chery, the author considers that the international entrepreneurial opportunities, organizational factors and international environmental factors play vital roles in promoting successful international entrepreneurship of automotive enterprises. Only when an enterprise is good at analyzing and seizing market opportunities, establishing visionary top management team and integrating high-end resources effectively, could the international entrepreneurial strategy achieves truly success. 5 Conclusion The automotive manufacturing industry is a typical globalized industry. Automotive enterprises are actively developing overseas markets and carrying through international entrepreneurial strategies. The key influential factors of international entrepreneurship include international entrepreneurial opportunities, organizational factors and international environment. A model is developed to illustrate the relationship between international entrepreneurial key influential factors, international entrepreneurial orientation and international entrepreneurial performance for the automotive enterprises. The empirical study has been made by questionnaires to some automobile enterprises. The international entrepreneurial factors are analyzed by case study based on the model. The study results will help to enrich and improve the related theories and methods for automotive industry international entrepreneurship. It will also help Chinese automotive corporations to make correct international entrepreneurship strategy and achieve long-lasting international entrepreneurial capability. The researches will not stop. The authors are still making the detailed empirical study on it so as to outline some suggestions on international entrepreneurship for Chinese automotive enterprises. References [1] Oviatt, B.M. & McDougall, P.P. A Framework for Understanding Accelerated International Entrepreneurship. In R. Wright (ed.) Research in Global Strategic Management, 1999.7: 23 ~ 42 [2] Morrow, J.F. International Entrepreneurship: A New Growth Opportunity. New Management, 1988.3(5): 59 ~ 61 [3] McDougall, P.P. & Oviatt, B.M. 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