INTERNATIONAL ENTREPRENUERSHIP: A CASE OF EDDIE WU, CEO of ALIBABA GROUP
1. Introduction
1.1. Introducing
the Entrepreneur, Eddie Wu, and “Alibaba Group”
Entrepreneurship
embodies more than mere opportunism; it represents a dynamic force shaping
economies and industries worldwide (Hayes, 2023; Cyril, 2012). Eddie Wu emerges
as a central figure in China’s entrepreneurial landscape, cofounding Alibaba
Group and ascending to the role of CEO in 2023 following Jack Ma’s departure.
However, Wu’s tenure as CEO is not merely a succession; it is a pivotal
juncture where strategic decisions are scrutinized for their impact on Alibaba
Group’s trajectory (Cheng, 2023). Amidst global economic shifts, Alibaba
Group’s stature as a pioneering e-commerce enterprise necessitates a critical
examination of Wu’s leadership and its implications for the organization’s
future.
1.2. Aims
of the Assignment
This
assessment transcends surface-level analysis to delve into the ramifications of
digital disruption on Eddie Wu’s entrepreneurial strategies and Alibaba Group’s
performance. It seeks to discern how Wu navigates the digital landscape,
leveraging opportunities while mitigating risks inherent in disruptive forces.
By adopting a critical lens, the assignment aims to uncover nuanced insights
into the interplay between entrepreneurship, technological innovation, and
organizational resilience.
1.3. Overview
of Methodology
Structured
into three sections, this paper employs a critical framework to dissect the
complexities of international entrepreneurship and its implications for Alibaba
Group. The first section interrogates prevailing paradigms of international
entrepreneurship, questioning conventional wisdom and exploring alternative
perspectives. Subsequently, the review delves into the intricacies of global
entrepreneurship, shedding light on the nuanced factors influencing Wu’s
entrepreneurial decisions within the context of Alibaba Group. Finally, the
implications of these findings are synthesized to offer actionable
recommendations that transcend traditional managerial paradigms, fostering
adaptive strategies aligned with Alibaba Group’s evolving landscape.
2.
Critical Discussion of International
Entrepreneurship
2.1.
What is entrepreneurship?
The
concept of entrepreneurship presents a complex challenge in its definition, as
various scholarly disciplines offer differing perspectives, each with its own
limitations and biases (Shuaibu et al., 2021). From a psychological standpoint,
entrepreneurship is often framed as a response to individuals' need for
control, achievement, and risk-taking propensity. Economists, on the other
hand, tend to view it through the lens of aggregating factors of production and
bearing the risk associated with market transactions. Sociologists emphasize
the role of entrepreneurship in recognizing and leveraging market opportunities
to provide social benefits. However, these perspectives, while insightful, are
inherently limited by disciplinary boundaries and fail to capture the full
scope of entrepreneurial phenomena (Shuaibu et al., 2021).
Critically
examining these definitions reveals their inherent shortcomings, as they are
shaped by the disciplinary lenses through which they are constructed. For
instance, psychological perspectives may overlook the broader economic and
social contexts in which entrepreneurship operates, while economic perspectives
often prioritize financial outcomes over social impact. Similarly, sociological
perspectives may neglect the individual agency and risk-taking inherent in
entrepreneurial endeavours.
Acknowledging
these limitations, this study adopts a conceptualization of entrepreneurship
that encompasses both the willingness and ability of individuals to identify
and pursue investment opportunities, while navigating the inherent
uncertainties and challenges of enterprise creation and management (Hayes,
2023; Cyril, 2012). By synthesizing insights from multiple disciplines, this
approach aims to offer a more holistic understanding of entrepreneurship that
transcends disciplinary boundaries and captures its multifaceted nature."
2.2.
What is International Entrepreneurship?
The
concept of international entrepreneurship (IE) challenges traditional views of
gradual market entry by emphasizing the potential for rapid global expansion
from inception (Oviatt et al., 2018). However, IE's evolution is marked by
definitional ambiguities and divergent perspectives, hindering theoretical
coherence (Tabares et al., 2021; Jones et al., 2011). Despite attempts to
define IE as a dynamic process of opportunity discovery and exploitation across
borders, complexities such as cultural differences and regulatory barriers
complicate its execution (Tabares et al., 2021; Tabares, 2020). This critical
analysis underscores the need for an interdisciplinary approach that integrates
insights from international business and entrepreneurship to advance our
understanding of IE and inform strategic decision-making in today's
interconnected global economy.
2.3.
Features of International Entrepreneurship
Based on the different definitions of IE, a
number of features emerge: creative discovery (Zahra & George, 2017);
innovative behaviour (McDougall & Oviatt, 2000); organisational-wide
processes embedded in organisational culture (Dimitratos & Plakoyiannaki,
2003); and across international borders (Oviatt & McDougall, 2005). As a
creative process, it makes it easier for the entrepreneur to service different
markets with the same product or services, but creativity can be extremely
difficult, and there is always the risk of failure (Tabares et al., 2021;
Tabares, 2020). As an innovative behaviour, it makes it easier for the
entrepreneur to develop new products and services that are tailored to the
particular needs of different market segments; however, innovation requires
huge investment (both financially and in human capital) (Tabares et al., 2021;
Tabares, 2020). As an organisational-wide process that is based on corporate
culture, it creates uniformity in process, but developing a strong, unform
corporate culture in an international setting is extremely difficult because
different markets have their own cultures (Tabares et al., 2021; Tabares,
2020). Finally, as a cross-border process, IE makes it easier for the
entrepreneur to reach new markets and expand market shares; however,
internationalising a business comes with different challenges, especially in
the area of localising the business offerings to different markets and segments
(Tabares et al., 2021; Tabares, 2020).
3.
Critical Appraisal of the Issue that is Affecting
the Global Environment
3.1.
Digital Disruption in International
Entrepreneurship
Denning
(2022) described digital disruption as the symptoms of the birth of a new
economic age, with a transition that is similar to the movement from the
agricultural age to the industrial age. The new age is born out of the
combination of exponential new technologies and management principles, which in
turn bring about the massive creation of new values. Thus, digital disruption
occurs when companies fail to take advantage of these new opportunities. The
Indeed Editorial Team (2023) described it as the transformation that occurs
when new digital technologies and business models influence the value
proposition created by existing products and services. It is said to occur when
it becomes necessary for companies to change the way they operate in order to
remain competitive and relevant.
3.2.
Features of Digital Disruption
Digital
disruption encompasses several key features that reshape industries and
challenge traditional business practices (Dabbous et al., 2023). Firstly, rapid
technological advancements are at the forefront, altering the competitive
landscape and necessitating significant investments in both financial and human
capital (Jonsson et al., 2018). These advancements, ranging from artificial
intelligence to blockchain technology, are revolutionizing how businesses
operate and interact with customers. For example, AI-powered chatbots are
transforming customer service by providing instant support and personalized
recommendations, while blockchain technology is enhancing transparency and
security in supply chain management.
Moreover,
rapid technological advancements are driving digital transformation across
various industries, from retail and finance to healthcare and manufacturing.
For instance, in the retail sector, advancements in augmented reality are
enabling customers to virtually try on clothing and accessories before making a
purchase, enhancing the online shopping experience. In finance, the rise of
fintech startups is disrupting traditional banking models by offering
innovative solutions such as peer-to-peer lending and digital wallets.
Secondly,
digital disruption disrupts traditional business models, enabling companies to
internationalize more seamlessly through online platforms, bypassing the
constraints of the Uppsala model (Coviello et al., 2017). The emergence of
e-commerce platforms like Amazon and Alibaba has democratized global trade,
allowing businesses of all sizes to reach customers worldwide. This has leveled
the playing field for small and medium-sized enterprises (SMEs) and empowered
entrepreneurs to compete on a global scale. However, navigating international
markets presents challenges such as cultural differences, regulatory
compliance, and logistical complexities.
A
third notable feature is the emphasis on customer-centric innovation (Dabbous
et al., 2023; Pereira et al., 2022; García-Morales et al., 2021). In today's
hyper-connected world, customers have higher expectations than ever before,
demanding seamless experiences across all touchpoints. Companies must
prioritize innovation to stay ahead of competitors and meet evolving customer
needs. For example, companies like Apple and Tesla have built loyal customer
bases by continuously innovating and delivering products that exceed
expectations.
Lastly,
digital disruption accelerates change within organizations, fostering expertise
in change management but also posing challenges related to employee readiness
and willingness to adapt (Dabbous et al., 2023). As businesses embrace digital
transformation, they must invest in upskilling their workforce and fostering a
culture of innovation and agility. This requires strong leadership and
effective communication to align employees with organizational goals and drive
successful change initiatives.
In
essence, while digital disruption offers transformative opportunities for
businesses, it also presents multifaceted challenges that demand critical
assessment and strategic management. By navigating the complexities of
technological advancements, business model disruptions, customer-centric
innovation, and accelerated change, organizations can harness the potential of
digital disruption to drive sustainable growth and competitive advantage in
dynamic markets.
4.
Implications of Digital Disruption in
International Entrepreneurship
The
findings presented above underscore both the advantages and disadvantages of
digital disruption, each with critical implications for Eddie Wu's
entrepreneurial endeavors and the sustained success of Alibaba Group. Firstly,
technological advancements offer tantalizing opportunities for enhancing
competitiveness through improved service offerings and heightened customer
satisfaction, particularly through innovations like AI. However, it's crucial
to acknowledge the substantial costs and uncertainties associated with
continuous innovation, requiring meticulous assessment to avoid resource
wastage (Dabbous et al., 2023; Pereira et al., 2022; García-Morales et al.,
2021).
Secondly,
while Alibaba Group has firmly established itself as a "born digital"
and "born global" enterprise, digital disruption still poses
significant risks to its traditional business models, especially as it expands
globally. Adapting to disruptions necessitates not only enhancing managerial
skills but also fostering expertise across diverse cultures and regulatory
environments. However, assembling and retaining a competitive workforce capable
of navigating varied market conditions presents formidable challenges,
requiring sustained investment in human capital and organizational development
initiatives (Dabbous et al., 2023; Pereira et al., 2022; García-Morales et al.,
2021).
Thirdly,
prioritizing customer-centric innovation offers compelling opportunities to
enhance satisfaction and loyalty, ultimately driving sustained performance and
market growth. Yet, it's imperative for Eddie Wu and Alibaba Group's leadership
to recognize the importance of balancing customer-centric initiatives with the
needs of other stakeholders, including shareholders, government entities, and
local communities. Achieving this delicate balance is essential to fostering
long-term relationships, building trust, and ensuring the continued relevance
and legitimacy of the organization within its broader socio-economic context
(Dabbous et al., 2023; Pereira et al., 2022; García-Morales et al., 2021).
Finally,
the dynamic nature of accelerated change demands agility and flexibility in
decision-making processes to effectively navigate evolving market dynamics and
capitalize on emerging opportunities. However, such flexibility can potentially
challenge existing organizational cultures, values, and strategic objectives,
necessitating careful management to ensure alignment with broader strategic
goals and values. Proactively addressing these tensions and fostering a culture
of adaptability and resilience is essential for Alibaba Group to thrive amidst
rapid and unpredictable market disruptions (Dabbous et al., 2023; Pereira et
al., 2022; García-Morales et al., 2021).
In
essence, while embracing digital disruption offers myriad opportunities for
growth and innovation, it also presents complex challenges that require
critical evaluation, strategic foresight, and effective management. By
navigating these challenges thoughtfully and aligning business practices with
broader stakeholder interests and societal needs, Alibaba Group can position
itself as a transformative force for positive change and sustainable value
creation in an ever-evolving marketplace.
4.1.
Report findings
Based
on the discussion above, there are a number of issues (findings) that Edddie Wu
will need to consider in relation to adoption digital disruption for
competitive advantage in the global market as:
1) Digital
disruption will require continues technological advancements, and investments,
in the process;
2) Digital
disruption could potentially change Alibaba Group’s traditional business model
and this is something that must be critically reviewed;
3) Digital
disruption requires customer-centric innovation and this could affect overall
ability of the company to attend to the needs of other stakeholders if they are
to primarily focus on the customers; and
4) Digital
disruption requires flexibility in decision making and there are certain
implications that come with this as discussed above.
5.
Conclusion
This study has revealed that digital disruption comes with vast pros and cons, and the impact can be felt on both individual entrepreneurs and corporate entities. This is based on the features of digital disruption: technological advancements, disruption of traditional business models, customer-centric innovation, and accelerated change. These features have an influence on entrepreneurs and firms. Therefore, it is concluded that Eddie Wu will need to critically assess these influences in order to be able to develop a business strategy capable of sustaining Alibaba’s operations. This is important as the company is a global brand and different challenges can come from different markets, requiring tailored solutions across markets.
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