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Business Despite Borders Business Despite Borders Santiago Iñiguez de Onzoño Kazuo Ichijo Editors Business Despite Borders Companies in the Age of Populist Anti-Globalization Editors Santiago Iñiguez de Onzoño Kazuo Ichijo Instituto de Empresa Graduate School of International Corporate Madrid, Spain Strategy Hitotsubashi University Tokyo, Japan ISBN 978-3-319-76305-7 ISBN 978-3-319-76306-4 (eBook) https://doi.org/10.1007/978-3-319-76306-4 Library of Congress Control Number: 2018944600 © The Editor(s) (if applicable) and The Author(s) 2018 This work is subject to copyright. All rights are solely and exclusively licensed by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or informa- tion storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. The publisher, the authors, and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, express or implied, with respect to the material contained herein or for any errors or omissions that may have been made. The publisher remains neutral with regard to jurisdictional claims in published maps and institutional affiliations. Cover illustration: petekarici/E+/Getty Printed on acid-free paper This Palgrave Macmillan imprint is published by the registered company Springer International Publishing AG part of Springer Nature. The registered company address is: Gewerbestrasse 11, 6330 Cham, Switzerland Preface Globalization, a process that has taken place through the economy and other areas of society across continents, has been one of the most important drivers in the development of business in recent decades. However, recent political developments in Europe, the United States and elsewhere, along with resent- ment toward globalization reflected, for example, in the upsurge of national- ism and populism, have raised questions about the evolution of global trade and international business. In this challenging context, innovative companies must not only find new ways to operate across borders, but they can also contribute toward improving international relations and develop new forms of valuable relationships among people from different nations and cultures: as stated elsewhere, “the best anti- dote to bad international politics is good business”.1 In fact, we believe that the current potential threats to globalization also provide opportunities for innovative companies to reinvent the way we carry out business across borders. In the context of the ongoing challenges globalization faces, this book pro- vides models and references for companies that plan to continue operating globally or to expand their presence internationally, along with a collection of case studies that illustrate how companies from different regions of the world are succeeding in reaching out to different, sometimes distant, territories. This book also portrays a number of business leaders and CEOs who are actively developing imaginative strategies to build business bridges across continents. Business Despite Borders provides a series of case studies portraying innova- tive companies that are setting new standards in internationalization at a time when globalization is being questioned, for example, in the aftermath of v vi Preface Brexit or through the revived protectionism and nationalism sparked by some governments, even in developed countries. This book also aims to show how new forms of business internationaliza- tion, by using new technologies or innovative strategies, can overcome obsta- cles to free trade and protectionism and how business leaders can develop imaginative strategies to strengthen ties across continents. The reader may conclude that this book is based on an optimistic supposi- tion: that globalization is, however, irreversible and that companies can con- tribute positively to achieve sustainable growth and a fair distribution of wealth across the world. Business Despite Borders addresses the current challenging circumstances for globalization and provides models and guidance for companies operating globally or expanding internationally. It also offers a collection of case studies that illustrate how companies from different regions of the world are succeed- ing in reaching out to different, sometimes distant, geographies. Finally, we would like to thank all the contributors to this book for their generous and prompt response to our invitation to participate. We hope this is the beginning of an ongoing conversation on other pressing issues over the future of management. Also, we would like to extend our gratitude to Stephen Partridge, our editor at Palgrave Macmillan, for all his support during the book production and his suggestions, including the book’s title. Madrid, Spain Santiago Iñiguez de Onzoño Tokyo, Japan Kazuo Ichijo Notes 1. S. Iñiguez de Onzoño, The Learning Curve. How Business Schools Are Reinventing Higher Education (London: Palgrave Macmillan, 2011); p. 25. Contents 1 Business Globalization: The Nightmare of Populism and the Hopes Brought by Technology 1 Peter Lorange, Kazuo Ichijo, and Santiago Iñiguez de Onzoño 2 The Governance of Change: How Companies and Governments Should Adapt to Technological Disruption 21 Manuel Muñiz 3 The Journey of Corporate Diversity in Tribal Times: Corporate Communities of Aspiration in MAPFRE 35 Celia de Anca and Salvador Aragón 4 The Global Expansion of Televisa 49 Gabriela Alvarado Cabrera 5 How Technogym Created the Wellness Industry 65 Paolo Boccardelli and Enzo Peruffo 6 Leadership, Global Mindset and Internationalization of Sempertex: From One Country to Ninety-five Countries and Five Continents 77 Henry Bradford Sicard vii viii Contents 7 Movile: Sustaining an Innovative Culture on a Global Scale 89 Luiz Artur Ledur Brito and Lilian Soares Pereira Carvalho 8 Delphi Automotive: An American Company … in Name Only 105 Salvador Carmona and Germán Pérez-Casanova 9 Cineplanet: Developing South American Markets 119 Fernando A. D’Alessio 10 Innovation Beyond Technology: Unilab 135 Jikyeong Kang, Maria Antonia OG Arroyo, John C Orlina, and Ariel T Lopez 11 LATAM Airlines Group: From the End of the Earth to No. 10 in the World 151 Cristián Larroulet and Jorge Ardiles 12 General Motors: Globalization, Disruption, and Sustainability 165 Daniel R. LeClair 13 Unconventional Internationalization of Huawei: The Role of Core Values 179 Ziliang Deng, Yufeng Zou, and Ji-Ye Mao 14 People, Purpose, and Performance at Barry-Wehmiller: Business as a Powerful Force for Good 193 Nick Van Dam and Eileen M. Rogers 15 Management After Acquisition Inside Multinational Companies from Emerging Economies: The Haier Experience 213 Lin Zhou and Runtian Jing Index 225 Notes on Contributors Salvador Aragón is Head of Innovation and Professor of Information Systems and Innovation at IE Business School (Spain). From a research perspective, he defines innovation as an intersection between market, organization and technology. He holds a PhD in innovation governance, a master’s degree in business administration (MBA) and a bachelor’s degree in industrial engineering. Jorge Ardiles is Professor of Management at Universidad del Desarrollo (Chile). He holds a PhD in management from IESE. He is a visiting professor at different univer- sities in Latin America and Germany. Maria Antonia OG Arroyo is a multi-awarded social entrepreneur, investor and Adjunct Professor of Innovation and Entrepreneurship at the Asian Institute of Management (AIM; Philippines). Maoi was selected as a Young Global Leader of the Word Economic Forum in 2015. Paolo Boccardelli is the dean and Professor of Corporate Strategy and Management of LUISS Business School (Italy). He has been appointed Expert of International Standing at the Australian Research Council and Chairman of the Scientific Committee of the Ericsson Foundation. His research interests focus on corporate and business strategy, creative and digital Industries, entrepreneurship and innovation. Luiz Artur Ledur Brito is the dean of Fundaçao Getulio Vargas EASP in Sao Paulo (Brazil), where he is also Professor of Operations Management. He has combined his academic work with positions at companies including Sanbra, Santista Alimentos and Dixie Toga. His research interests focus on the relations between operations man- agement and strategy as well as operational factors that affect business performance. ix x Notes on Contributors Gabriela Alvarado Cabrera is the director of the Business Intelligence Center and Professor of Marketing at ITAM, Mexico, where she is also the past associate dean of MBA programs. She holds a doctor in business administration degree from IE Business School. Her research examines the effects of organizational reputation on business schools’ strategic choices and her next book deals with the future of manage- ment education in Latin America. Salvador Carmona is Professor of Accounting and Management Control at IE University (Spain), where he serves as
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