This book’s editors asked 29 leading academicians to address various reasons why business largely remains global, or “open” (i.e., without borders) despite the current global wave of nationalism and protectionism. The editors and most of the authors are clearly sounding the alarm bell in this regard. However, despite serious and worrisome headwinds, various aspects of emerging technology are “saving the day” in their views.
In this review, I shall focus on six of this book’s 15 chapters; but even with this limited focus, I can safely state that this book is highly recommendable. The topic areas discussed are well-chosen and introduce the reader to many case studies that illustrate the dilemma of running a global business within the more confined national contexts.
In chapter one, the two editors provide an overview of business globalization in the context of growing populations. Emerging technology often comes to the rescue when businesses push for globalization. Examples are e-commerce and cloud computing (opening up new global routes to market, etc.). In another chapter, the authors discuss how technology has created a new "wellness industry.” The authors are P. Boccardelli and E. Peruffo, professors at the LUISS Business School in Italy, where the former is also the dean. They make the key point that several technological advances must be meaningfully connected to create a true strategic advantage. Connectivity among related technologies is key! The highly successful global firm Technogym was developed around these principles.
In the chapter 6, Dr. Sicard discusses how a strong global mindset has helped the Colombian firm Sempertex, which produces relatively low-tech latex balloons, become a definite global success built on a strong global mindset. The company operates successfully in 95 countries!
Dr. LeClair discusses how General Motors (GM) has become much more agile and effectively remains a strong global player rather than relying on the more conventional focus on achieving “economies of scale” in production and distribution of the past. Developing innovative cars based on cutting-edge technology is a key to this agility. A strong focus on electric-car technology is an example, so it is no wonder GM actually sold its European Opel division, which it had owned since 1928. This action represented a clear break with the conventional wisdom relating to scale and market segmentation set forth in the 1930s by Alfred P. Sloan, then head of GM and one of the legends of scale-driven business.
Deng, Zou and Moa, three leading Chinese scholars, discuss how strong international core values have propelled Huawei to a leading global position even though nationalistic resistance to the company is still highly prevalent. I should point out that a superb set of products based on technological dominance and a cost advantage also seems important, adding credence to the firm’s focus on global core values. However, it should not be forgotten that Huawei is facing strong nationalistic resistance from countries such as the US, the UK, Australia and New Zealand, especially regarding the commercialization of the so-called “Generation 5” mobile telephony technology. Although Huawei seems to be clearly in the lead regarding technology and cost, national resistance has arisen due to security concerns. Here, we see that national governmental policies may become so deeply entrenched that they actually hamper a business’s global reach—a rather alarming outcome!
The last chapter to be reviewed, written by Van Dam and Rogers, focuses on the US-based brewing company Barry-Wehmiller (B-W). Again, we see how a global outlook seems to prevail in regards to people, purpose and performance. But here, too, the underlying technology is cutting-edge, and it is perhaps worthwhile to recognize that a company such as B-W thrives in its global reach despite being headquartered in a country that might be characterized as particularly nation-centric.
In general, pushing for emerging, cutting-edge technology can be an effective way for corporations to maintain global scope even though nationalistic, populistic forces might be working to limit that scope. Today's emerging technologies can be scaled globally from rather peripheral locations around the globe, consider Spotify as just one of many examples. However, a strong leadership commitment to globalization is also key, above all from corporations’ top management. Technological leadership and a global managerial focus go hand in hand! Thus, in the end, it may largely be up to progressive firms to demonstrate that they can successfully operate globally despite increasingly nationalistic borders.
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