| This study attempts to develop a conceptual framework to deal with operations and management in international business. An integration of related prior research findings, published between 1986-1991, was undertaken by employing matrix analysis and meta-analysis to provide a foundation for developing a model and formulating a theory. To develop a financial success index, factor analysis was employed to integrate three profit-related ratios, derived from a modified Dupont Model, using financial data of 598 cases from the global companies ranked in the Business Week's Global 1000 between 1987-1990. In the analysis of global companies, about 4,000 sets of financial data were categorized and computed for the new success index. The index trends were compared among 24 parent countries, and across four selected industry groups, i.e., automobile, beverages & tobacco, health & personal cares, and telecommunications. To test the hypothesis that a global company's financial success is linearly related to its parent country's economic conditions, 14 economic indicators in 20 countries were chosen to test for linear relationships with the level of financial success index of each industry group by using multiple regression analysis.;Initially, matrices of relationships among variables in international business operations were obtained and used to construct a model of international business operations. A new business success measure was obtained and termed the Financial Success Index or FSI. In the analysis of the global companies, the FSI trends show different patterns of variations and add more depth when they are interpreted along with market shares and sales trends. Multiple regression results support the hypothesis that the level of a global company's financial success is linearly related to its parent country's economic conditions.;Finally, a Model of International Business Operations was fully developed, and a Theory of the Utility Exchange in International Business Operations was formulated to be applied as a conceptual framework for further research as well as for practical applications in business operations and management. |
