International synergy management: a strategic approach for raising efficiencies in the cross-border interaction process

Abstract

Global economic integration has changed business conditions significantly. Corporations operating internationally and establishing foreign subsidiaries are facing the obligation as well as the challenge to profit from cross-border interaction. However, potential synergetic benefits provided by the international environment are accompanied by even more demanding challenges. This study elaborates to which extend German small and medium-sized manufacturing businesses could benefit from the implementation of a strategic cross-border synergy management. The study is based on a single case study deriving the research hypotheses and a survey investigating cross-border interaction throughout a sample of small and medium-sized manufacturing businesses. Based on the research findings, this paper proposes a holistic framework, designed for strategists of small and medium-sized manufacturing business. It outlines the establishment of the cross-border synergy management concept as part of the corporate strategy and the efficient and effective management of international interaction. 'Synergies are not realized by themselves - they have to be identified and actively developed within a professionally coordinate process. Management of synergy seeking organizations is asked for intensive efforts beyond daily operations' (Weber and Roventa, 2006). In 2007, Patrick Daum completed his Business Administration degree at the SRH Hochschule in Heidelberg. Subsequently, he started his professional career working for the globally operating sport marketing agency IFM Sports. After working for the international department of IFM Sports' headquarters, he worked as an expatriate for the US branch office in Saint Louis (Missouri). The author deepened his competencies in international business transactions through his Master studies, 'International Business Management', at the London South Bank University. After working for a business consultancy in Frankfurt, the author is presently working in the department of business development for Europe's leading sport-law marketer, Sportfive.