Facilitating cross-border logistics for international trade operations: a case study of intra-firm trade
DOI:
https://doi.org/10.18568/internext.v18i3.725Keywords:
Intra-firm trade, Cross-border logistics, Tactical plan, International trade, Trade facilitationAbstract
Objective: To propose a model tactical plan to facilitate intra-firm trade in multinational companies.
Method: Qualitative research with a deductive approach and a single case study, having as the unit of analysis the intra-firm trade of Nestlé S.A., between the Brazilian and Argentine subsidiaries.
Main Results: The results demonstrated that cross-border logistics factors such as trade agreements, public-private partnerships, physical cross-border logistics, trade between subsidiaries, government agencies, costs related to trade facilitation, and collaboration and improvements can influence intra-firm trade. Based on these factors, it was possible to identify and confirm tactical options that were grouped under the processes of governance, performance, risk management, and collaboration and continuous improvement, in order to propose a tactical plan model to facilitate intra-firm trade in multinational companies.
Relevance / Originality: Intra-firm trade participates in a relevant way in international trade. In 2014, foreign affiliates represented around 10% of world gross domestic product — GDP, characterizing companies by a global value chain, where the ability to manage cross-border logistics operations has become a necessity to maintain competitive advantage.
Theoretical / Methodological Contributions: This is one of the first studies to present a list of determinants of tactical planning within an integrated framework for intra-firm trade. This research aims to expand the literature on intra-firm trade facilitation through cross-border logistics.
Downloads
References
Arvis, J. F., Mustra, M. A., Ojala, O., Shepherd, B. & Saslavsky, D. (2012). Connecting to compete: trade logistics in the global economy. World Bank. Retrieved from http://hdl.handle.net/10986/12689
Auberger, E., & Ramsauer, C. (2020). Integration of tactical aspects into strategic production network planning. Tehnički Glasnik, 14(3), 281-287. https://doi.org/10.31803/tg-20200718171824 DOI: https://doi.org/10.31803/tg-20200718171824
Bombarda, P., & Marcassa, S. (2020). Welfare and trade elasticity with multinational production. World Economy, 43(2), 388-411. https://doi.org/10.1111/twec.12850 DOI: https://doi.org/10.1111/twec.12850
Cauchick-Miguel, P. (2018). Metodologia de Pesquisa em Engenharia de Produção e Gestão de Operações. Elsevier.
Cheon, S. H., Lee, C. Y., & Wang, Y. (2017). Processing time ambiguity and port competitiveness. Production and Operations Management, 26(12), 2187-2206. https://doi.org/10.1111/poms.12752 DOI: https://doi.org/10.1111/poms.12752
Chung, C. C., Lee, S. H., Beamish, P. W., & Isobe, T. (2010). Subsidiary expansion/contraction during times of economic crisis. Journal of International Business Studies, 41(3), 500-516. https://doi.org/10.1057/jibs.2009.72 DOI: https://doi.org/10.1057/jibs.2009.72
Creswell, J. (2010). Projeto de pesquisa: métodos qualitativo, quantitativo e misto. Artmed.
Davis, F., & Friske, W. (2013). The role of public–private partnerships in facilitating cross-border logistics: a case study at the U.S./Canadian Border. Journal of Business Logistics, 34(4), 347-359. https://doi.org/10.1111/jbl.12032 DOI: https://doi.org/10.1111/jbl.12032
Dür, A., Baccini, L., & Elsig, M. (2014). The design of international trade agreements: Introducing a new dataset. Review of International Organizations, 9(3), 353-375. https://doi.org/10.1007/s11558-013-9179-8 DOI: https://doi.org/10.1007/s11558-013-9179-8
Fazi, S., & Roodbergen, K. J. (2018). Effects of demurrage and detention regimes on dry-port-based inland container transport. Transportation Research Part C: Emerging Technologies, 89, 1-18. https://doi.org/10.1016/j.trc.2018.01.012 DOI: https://doi.org/10.1016/j.trc.2018.01.012
Feinberg, S., & Gupta, A. (2009). MNC subsidiaries and country risk: Internalization as a safeguard against weak external institutions. Academy of Management Journal, 52(2), 381-399. https://doi.org/10.5465/AMJ.2009.37315470 DOI: https://doi.org/10.5465/amj.2009.37315470
Forza, C. (2002). Survey research in operations management: A process-based perspective. International Journal of Operations and Production Management, 22(2), 152-194. https://doi.org/10.1108/01443570210414310 DOI: https://doi.org/10.1108/01443570210414310
Grainger, A. (2014). The WTO Trade Facilitation Agreement: Consulting the Private Sector. Journal of World Trade, 48(6), 1167-1188. https://doi.org/10.54648/TRAD2014041 DOI: https://doi.org/10.54648/TRAD2014041
Grainger, A., Huiden, R., Rukanova, B., & Tan, Y. H. (2018). What is the cost of customs and borders across the supply chain? ... and how to mitigate the cost through better coordination and data sharing. World Customs Journal, 12(2), 3-30. Retrieved from https://worldcustomsjournal.org/Archives/Volume%2012%2C%20Number%202%20(Sep%202018)/1855%2001%20WCJ%20v12n2%20Grainger.pdf
Grainger, A., & Morini, C. (2019). Disentangling cross-border interactions. International Journal of Logistics Management, 30(4), 958-973. https://doi.org/10.1108/IJLM-10-2018-0255 DOI: https://doi.org/10.1108/IJLM-10-2018-0255
Haller, A. (2012). Intra-firm trade, exporting, importing, and firm performance. Canadian Journal of Economics, 45(4), 1397-1430. https://doi.org/10.1111/j.1540-5982.2012.01736.x DOI: https://doi.org/10.1111/j.1540-5982.2012.01736.x
Kato, H., & Okoshi, H. (2019). Production location of multinational firms under transfer pricing: the impact of the arm’s length principle. International Tax and Public Finance, 26(4), 835-871. https://doi.org/10.1007/s10797-018-9523-2 DOI: https://doi.org/10.1007/s10797-018-9523-2
Kembro, J., Selviaridis, K., & Näslund, D. (2014). Theoretical perspectives on information sharing in supply chains: A systematic literature review and conceptual framework. Supply Chain Management, 19(5-6), 609-625. https://doi.org/10.1108/SCM-12-2013-0460 DOI: https://doi.org/10.1108/SCM-12-2013-0460
Krippendorff, K. (2004). Content analysis: an introduction to its methodology. Sage.
Krueger, R. (1998a). Focus Group Kit 3: Developing Questions for Focus Groups. Sage. DOI: https://doi.org/10.4135/9781483328126
Krueger, R. (1998b). Focus Group Kit 6: Analyzing & Reporting Focus Group Results. Sage. DOI: https://doi.org/10.4135/9781483328157
Lakatos, C., & Ohnsorge, F. (2017). Special Focus 2: Arm’s-Length Trade: A Source of Post-Crisis Trade Weakness. World Bank. https://doi.org/10.1596/978-1-4648-1024-4_specialfocus2 DOI: https://doi.org/10.1596/1813-9450-8144
Lee, S. H., & Makhija, M. (2009). Flexibility in internationalization: is it valuable during an economic crisis? Strategic Management Journal, 30(5), 537-555. https://doi.org/10.1002/smj.742 DOI: https://doi.org/10.1002/smj.742
Mann, C. L. (2012). Supply chain logistics, trade facilitation and international trade: a macroeconomic policy view. Journal of Supply Chain Management, 48(3), 7-14. https://doi.org/10.1111/j.1745-493X.2012.03270.x DOI: https://doi.org/10.1111/j.1745-493X.2012.03270.x
Mellat-Parast, M., & Spillan, J. E. (2014). Logistics and supply chain process integration as a source of competitive advantage: An empirical analysis. International Journal of Logistics Management, 25(2), 289-314. https://doi.org/10.1108/IJLM-07-2012-0066 DOI: https://doi.org/10.1108/IJLM-07-2012-0066
Miroudot, S., & Lanz, R. (2011). Intra-Firm Trade: Patterns, Determinants and Policy Implications. OECD Trade Policy Papers, (114), 1-77. https://doi.org/10.1787/5kg9p39lrwnn-en DOI: https://doi.org/10.1787/5kg9p39lrwnn-en
Nestlé S.A. (2020). Nestlé Global Annual Review 2020. Nestlé S.A. Retrieved from https://www.nestle.com/sites/default/files/2021-03/2020-annual-review-en.pdf
Nestlé S.A. (2021). Nestlé reports full-year results for 2021. Nestlé S.A. Retrieved from https://www.nestle.com/sites/default/files/2022-02/2021-full-year-results-press-release-en.pdf
Okongwu, U., Lauras, M., François, J., & Deschamps, J. C. (2016). Impact of the integration of tactical supply chain planning determinants on performance. Journal of Manufacturing Systems, 38, 181-194. https://doi.org/10.1016/j.jmsy.2014.10.003 DOI: https://doi.org/10.1016/j.jmsy.2014.10.003
Omar, A., Sramek, B., Myers, M., & Mentzer, J. (2012). A Global Analysis of Orientation, Coordination, and Flexibility in Supply Chains. Journal of Business Logistics, 33(2), 128-144. https://doi.org/10.1111/j.0000-0000.2012.01045.x DOI: https://doi.org/10.1111/j.0000-0000.2012.01045.x
Organisation for Economic Cooperation and Development (OECD). (2015). Contribution of Trade Facilitation Measures to the Operation of Supply Chains. OECD Trade Policy Papers, (181), 1-60. https://doi.org/10.1787/5js0bslh9m25-en DOI: https://doi.org/10.1787/5js0bslh9m25-en
Organisation for Economic Cooperation and Development (OECD). (2019). Multinational enterprises in domestic value chains. OECD Science, Technology and Industry Policy Papers, (63), 42. https://doi.org/10.1787/9abfa931-en DOI: https://doi.org/10.1787/9abfa931-en
Park, H. G., & Park, Y. J. (2018). Examining the perceived impact of financial investment in AEO certification on performance through trade facilitation and public and private partnership. International Journal of Logistics Management, 29(1), 46-63. https://doi.org/10.1108/IJLM-10-2016-0245 DOI: https://doi.org/10.1108/IJLM-10-2016-0245
Park, I., & Park, S. (2018). Trade Facilitation Provisions in Regional Trade Agreements: Discriminatory or Non-Discriminatory? SSRN Electronic Journal, 20(4), 447-467. https://doi.org/10.2139/ssrn.2894094 DOI: https://doi.org/10.11644/KIEP.EAER.2016.20.4.317
Pereira, A. J., & Dathein, R. (2016). The role of transnational corporations in the international insertion of Brazilian manufactures in the context of productive restructuring. Revista de Economia Política, 36(4), 769-787. https://doi.org/10.1590/0101-31572015v36n04a06 DOI: https://doi.org/10.1590/0101-31572015v36n04a06
Rezende, O., & Reis, H. K. (2021). Apoio à internacionalização de empresas: uma leitura das ações das agências de promoção de exportação a partir das teorias de internacionalização. Interações, 22(1), 263-277. https://doi.org/10.20435/inter.v22i1.2129 DOI: https://doi.org/10.20435/inter.v22i1.2129
Roger, F. (2022). CAGNY 2022 Structurally gearing our portfolio for mid single-digit growth. 2022. Consumer Analyst Group of New York Conference. Retrieved from https://www.nestle.com/media/mediaeventscalendar/allevents/cagny-conference-2022
Saunders, B., Sim, J., Kingstone, T., Baker, S., Waterfield, J., Bartlam, B., Burroughs, H. & Jinks, C. (2018). Saturation in qualitative research: exploring its conceptualization and operationalization. Quality and Quantity, 52(4), 1893-1907. https://doi.org/10.1007/s11135-017-0574-8 DOI: https://doi.org/10.1007/s11135-017-0574-8
Sekaran, U., & Bougie, R. (2016). Research Methods for Business: A Skill Building Approach. John Wiley & Sons.
Song, S. (2015). Exchange rate challenges, flexible intra-firm adjustments, and subsidiary longevity. Journal of World Business, 50(1), 36-45. https://doi.org/10.1016/j.jwb.2014.01.001 DOI: https://doi.org/10.1016/j.jwb.2014.01.001
Stake, R. (2000). The case study method in social inquiry. In N. Dezin & Y. Lincoln (Eds.), The American Tradition in Qualitative Research (v. 2). Sage.
Stake, R. (2011). Pesquisa Qualitativa: Estudando como as Coisas Funcionam. Penso.
Wei, H. L., Wong, C. W. Y., & Lai, K. H. (2012). Linking inter-organizational trust with logistics information integration and partner cooperation under environmental uncertainty. International Journal of Production Economics, 139(2), 642-653. https://doi.org/10.1016/j.ijpe.2012.05.036 DOI: https://doi.org/10.1016/j.ijpe.2012.05.036
Yin, R. (2015). Estudo de Caso: Planejamento e Métodos. Bookman.
Yin, R. (2016). Pesquisa Qualitativa do Início ao Fim. Penso.
Ylönen, M., & Teivainen, T. (2018). Politics of Intra-firm Trade: Corporate Price Planning and the Double Role of the Arm’s Length Principle. New Political Economy, 23(4), 441-457. https://doi.org/10.1080/13563467.2017.1371124 DOI: https://doi.org/10.1080/13563467.2017.1371124
Zappellini, M. B., & Feuerschütte, S. G. (2015). O uso da triangulação na pesquisa científica brasileira em administração. Administração: Ensino e Pesquisa, 16(2), 241-273. https://doi.org/10.13058/raep.2015.v16n2.238 DOI: https://doi.org/10.13058/raep.2015.v16n2.238
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2023 Felipe Souza Dias, Luciana Marques Vieira
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
- The author(s) authorize the publication of the article in the journal;
- The author(s) ensure that the contribution is original and unpublished and is not being evaluated in other journal(s);
- The journal is not responsible for the opinions, ideas and concepts expressed in the texts because they are the sole responsibility of the author(s);
- In case an article will be approved for publication, the author will sign the term of Cession of Copyright to the journal, according to the download form.
