Table 1 Global drivers and country...

Table 1

Global drivers and country factors

		Variables and Indicators (examples)
Global drivers
Market globalisation drivers	They relate to customers' behaviours and to networks' features of distribution. Many trends are leading to a progressive globalisation: global priorities and needs, global customers, global channels, the transferability of marketing policies, the existence of leader countries where companies are forced to operate, the decrease of the time necessary for innovation to spread through the market (Yip, 1992, 2003)	Common customer needs and tastes, and global marketing • Weight of design and product adaptation costs Global customers and global channels • % of international procurement costs • % of turnover devoted to international customers • Foreign customers / national customers for the most important markets Lead countries • Concentration ratio of sales at country level • Concentration ratio of product innovation at country level The diffusion time of product innovation • Time to market (general) • Time to market for the most important countries

Cost globalisation drivers	They can lead to a cost advantage at a global scale (e.g. global economies of scale or scope, experience curve, global sourcing cost differential among countries). All these features allow, and require, a value chain reorientation, aimed at exploiting the interdependencies among different countries in terms of both cost reduction and richness / quality of available resources (Yip, 1992, 2003)	Scale economies • Share of the global market needed to support a minimum efficient scale of production Scope economies • Amount and % of costs that can be shared globally Steep experience curve • Cost reduction due to doubling of accumulated experience (in %) Efficient supply • Costs of centralised activities / total costs in comparison with the costs of decentralised policies / total cost Efficient logistics • % transport costs on turnover Differences in country costs • “Distance” between countries with higher costs and with lower costs (with particular attention to labour costs)

Technology globalisation drivers	They originate from the flexibility that new technologies offer in terms of efficient and valuable answers to specific needs emerging in different geographic markets (Sawhney, 2006). Moreover, technology development can change the world production map, relocating activities according to newly arising opportunities (De Backer and Miroudot, 2012)	High product development costs • % R&D costs / total costs for the most important products Fast changing technology • Annual innovation rate of the product portfolio (e.g. % of new products)

Government globalisation drivers	They include opening to global markets that arise from production and trade liberalisation policies, trade barriers removal, global technical standards exploitation, common marketing policies, etc. On the opposite side, restrictive commercial policies represent an obstacle to companies' adoption of global strategies. Of course, government drivers can exploit different strength in the various industries, while legislation differences open space to arbitrage opportunities (Ghemawat, 2007)	Favourable trade policies • Impact (%) of restrictive trade and non-trade barriers on the sale price • Impact of local policies for foreign direct investments attractiveness Common market regulations and international technical standards • Costs for global technical standards adaptation Government owned competitors and customers • Numbers and local and global market share

Competitive globalisation drivers	They include the industry's internalisation / international delocalisation degree, the existence of international and global competitors, interdependencies between the different regional markets, the transferability of competitive advantages, etc. (Yip, 2003; Ghemawat, 2007)	Competition intensity • Import + export / total global product Internationalisation and globalisation degree • FDI (amount and % of growth) • Number of subsidiaries • FDI: country and regional composition Global competitors and transferable competitive advantage • Number / country of origin of competitors at global level • Competitive advantage of competitors (score for each factors)
Country factors
Home country factors	They are represented by the features of the original country of the company facilitating or preventing the international growth path. They can be classified into four types: identity and culture; nature of existing relationships with stakeholders; the existence of brands that customers can immediately associate with the specific country; and the political-legal environment (Porter, 2000; Ghemawat, 2007; Delgado et al., 2010; Bertoli and Resciniti, 2012)	• Made-in effect: national brands in global brand rankings • Entry barriers for foreign competitors • Presence of clusters and industrial districts

Supplier country factors	They comprise the possibility of realising the best combination of raw materials / components / services suppliers at a global level. The ability to create valuable relationships is crucial (Trent and Monczka, 2005; Hult et al., 2014)	For each supplier country and region • Labour productivity and cost of wages • Technology development • Legal and institutional evaluation (rate) • Transport costs

Customer country factors	They refer to the individuation of groups of countries which are homogeneous from the perspective of customers' needs, and sufficiently large to represent significant transnational segments of the global market. They also refer to the possibility of adapting, to a certain extent, the marketing mix to the local context (Inkpen and Ramaswamy, 2007; Spulber, 2007)	For each customers country and region • Market share • Bargaining power • Price difference • Demand elasticity • Culture (rate) and legal and institutional evaluation (rate)

Partner country factors	They are concerned with the specificities of countries that are partners in agreements and partnerships. Countries must be selected and divided: demand side partnerships (based on products' complementarities) or supply side partnerships (based on competencies and technology complementarities)	For each partner country and region, see Customer country factors (for downstream alliances) and Supplier country factors (for upstream alliances)

Competitor country factors	They relate to local specificities representing strengths in the competitors' global strategies. For competitors too, the country factor analysis must be conducted and then compared with the analysis of the company	For each competitor country and region, see: Home, Supplier, Customer and Partner country factors

		Variables and Indicators (examples)
Global drivers
Market globalisation drivers	They relate to customers' behaviours and to networks' features of distribution. Many trends are leading to a progressive globalisation: global priorities and needs, global customers, global channels, the transferability of marketing policies, the existence of leader countries where companies are forced to operate, the decrease of the time necessary for innovation to spread through the market (Yip, 1992, 2003)	Common customer needs and tastes, and global marketing • Weight of design and product adaptation costs Global customers and global channels • % of international procurement costs • % of turnover devoted to international customers • Foreign customers / national customers for the most important markets Lead countries • Concentration ratio of sales at country level • Concentration ratio of product innovation at country level The diffusion time of product innovation • Time to market (general) • Time to market for the most important countries

Cost globalisation drivers	They can lead to a cost advantage at a global scale (e.g. global economies of scale or scope, experience curve, global sourcing cost differential among countries). All these features allow, and require, a value chain reorientation, aimed at exploiting the interdependencies among different countries in terms of both cost reduction and richness / quality of available resources (Yip, 1992, 2003)	Scale economies • Share of the global market needed to support a minimum efficient scale of production Scope economies • Amount and % of costs that can be shared globally Steep experience curve • Cost reduction due to doubling of accumulated experience (in %) Efficient supply • Costs of centralised activities / total costs in comparison with the costs of decentralised policies / total cost Efficient logistics • % transport costs on turnover Differences in country costs • “Distance” between countries with higher costs and with lower costs (with particular attention to labour costs)

Technology globalisation drivers	They originate from the flexibility that new technologies offer in terms of efficient and valuable answers to specific needs emerging in different geographic markets (Sawhney, 2006). Moreover, technology development can change the world production map, relocating activities according to newly arising opportunities (De Backer and Miroudot, 2012)	High product development costs • % R&D costs / total costs for the most important products Fast changing technology • Annual innovation rate of the product portfolio (e.g. % of new products)

Government globalisation drivers	They include opening to global markets that arise from production and trade liberalisation policies, trade barriers removal, global technical standards exploitation, common marketing policies, etc. On the opposite side, restrictive commercial policies represent an obstacle to companies' adoption of global strategies. Of course, government drivers can exploit different strength in the various industries, while legislation differences open space to arbitrage opportunities (Ghemawat, 2007)	Favourable trade policies • Impact (%) of restrictive trade and non-trade barriers on the sale price • Impact of local policies for foreign direct investments attractiveness Common market regulations and international technical standards • Costs for global technical standards adaptation Government owned competitors and customers • Numbers and local and global market share

Competitive globalisation drivers	They include the industry's internalisation / international delocalisation degree, the existence of international and global competitors, interdependencies between the different regional markets, the transferability of competitive advantages, etc. (Yip, 2003; Ghemawat, 2007)	Competition intensity • Import + export / total global product Internationalisation and globalisation degree • FDI (amount and % of growth) • Number of subsidiaries • FDI: country and regional composition Global competitors and transferable competitive advantage • Number / country of origin of competitors at global level • Competitive advantage of competitors (score for each factors)
Country factors
Home country factors	They are represented by the features of the original country of the company facilitating or preventing the international growth path. They can be classified into four types: identity and culture; nature of existing relationships with stakeholders; the existence of brands that customers can immediately associate with the specific country; and the political-legal environment (Porter, 2000; Ghemawat, 2007; Delgado et al., 2010; Bertoli and Resciniti, 2012)	• Made-in effect: national brands in global brand rankings • Entry barriers for foreign competitors • Presence of clusters and industrial districts

Supplier country factors	They comprise the possibility of realising the best combination of raw materials / components / services suppliers at a global level. The ability to create valuable relationships is crucial (Trent and Monczka, 2005; Hult et al., 2014)	For each supplier country and region • Labour productivity and cost of wages • Technology development • Legal and institutional evaluation (rate) • Transport costs

Customer country factors	They refer to the individuation of groups of countries which are homogeneous from the perspective of customers' needs, and sufficiently large to represent significant transnational segments of the global market. They also refer to the possibility of adapting, to a certain extent, the marketing mix to the local context (Inkpen and Ramaswamy, 2007; Spulber, 2007)	For each customers country and region • Market share • Bargaining power • Price difference • Demand elasticity • Culture (rate) and legal and institutional evaluation (rate)

Partner country factors	They are concerned with the specificities of countries that are partners in agreements and partnerships. Countries must be selected and divided: demand side partnerships (based on products' complementarities) or supply side partnerships (based on competencies and technology complementarities)	For each partner country and region, see Customer country factors (for downstream alliances) and Supplier country factors (for upstream alliances)

Competitor country factors	They relate to local specificities representing strengths in the competitors' global strategies. For competitors too, the country factor analysis must be conducted and then compared with the analysis of the company	For each competitor country and region, see: Home, Supplier, Customer and Partner country factors

Source(s): Our elaboration of Benevolo (2013)

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