CHAPTER 10: BUILDING THE KNOWLEDGE BASE

The tools and techniques of international research are the same as those of domestic research. The difference is in the environment to which the tools are applied. The four primary reasons for this difference are new aparameters, new environmental factors, and increase in the number of factors involved, and a broader definition of competition.
New Parameters
In crossing national borders, a firm encounters parameters not found in domestic business. New parameters also emerge because of differing modes of operating internationally. Managers must therefore obtain information in order to make good business decisions.
New Environmental Factors
When going international, a firm is exposed to an unfamiliar environment. Management needs to learn the culture of the host country understand its political systems and level of stability, and comprehend the existing differences in societal structural and languages.
The Number of Factors Involved
Environmental relationship need to be relearned whenever a firm enters a new international market. The numbers of changing dimensions increase geometrically. Coordination of the interaction among the dimensions becomes increasingly difficult because of their sheer number. Coordination is crucial to the international success of the firm for two reasons. First, in order to exercise some central control over its international operations, a firm must be able to compare results and activities a cross countries. Second, the firm must be able to learn from its international operations and must find ways to apply the new lessons learned to different market.
Broader Definition of Competition
Firm must determine the breadth of the competition, track competitive activities, and evaluate their actual and potential impact on company operations on going basis.
RECOGNIZING THE NEED FOR INTERNATIONAL RESEARCH
A major reason why managers are reluctant to engage in international research is their lack of sensitivity to differences in culture, consumer tastes, and market demands. A second reasons is a limited appreciation for different environments abroad. A third reasons is lack of familiarity with national and international data sources and inability to use international data once they are obtained. Finally, firms often build their international business activities gradually, frequently based on unsolicited orders.
CONDUCTING SECONDARY RESEARCH
Identifying Sources of Data
Secondary data is information that already has been collected by some other organization. The principal ones are governments, international institution, service organizations, trade associations, directories, and other firms.
Selection of Secondary Data
Secondary data should be evaluated regarding the quality of their source, their regency, and their relevance to the task at hand.
Interpreting and analyses of secondary data
Once secondary data have been obtained, the researcher must creatively convert them into information. They can often be used only as proxy information in order to arrive at conclusions that address the research objectives.
Data Privacy
Many societies are increasingly sensitive to the issue of data privacy, and the concern has grown exponentially as result of e-business.
CONDUCTING PRIMARY RESEARCH
Even though secondary data are useful to the researcher, on many occasions primary information will be required. Primary data are obtained by a firm to fill specific information needs.
Industrial Versus Consumer Sources Of Data
The researcher must decide whether research is to be conducted in the consumer or the industrial product area, which in turn determines the size of the universe and respondent accessibility.
Determining The Research Technique
Selection of the research technique depends on variety of factors. First, the objectivity of the data sought must be determined. Unstructured data will require more open-ended questions and more time than structured data. Finally, it must be decided whether to collect historical facts or information about future developments. On the desired data structure is determine, researcher must choose a research technique. Such as : Interview, Focus Groups, Observation, Surveys, and Web Technology.
THE INTERNATIONAL INFORMATION SYSTEM
An information system can provide the decision maker with basic data for most on going decisions. To be useful to the decision maker, the system must have certain attributes. First of all, the information must be relevant. Second, the information must be timely. Third, information must be flexible. Fourth, information contained in the system must be accurate. Fifth, the system’s information must be reasonably exhaustive. Sixth, the collection and processing data must be consistent. Finally, to be useful to managers, the system must be convenient to use. Data gathered through:
Environmental Scanning
Environmental Scanning activities provide continuous information on political, social, and economic affairs internationally; on changes of attitudes of public institution and private citizens, and on possible upcoming alterations.
Delphi Studies
To enrich the information obtained from factual data, corporations and governments frequently resort to the use of creative and highly qualitative-data gathering method. One approach is through Delphi studie