Through the process of globalization, the economic world has changed considerably. As part of this development, the production of goods and services is no longer limited within national borders and, as a result, the creation of value takes place in transnational structures. In this context, we are talking about international or global value networks where multinational companies and company alliances in numerous arrangements acquire more importance. According to the World Investment Report 2002 published by the UNCTAD (United Nations Conference on Trade and Development) already one third of the whole world trade volume takes place between multinational companies. Another figure illustrates the dynamics of this phenomenon: While between 1990 and 2000 the worldwide creation of value has grown 4 percent p.a. on average, cross-border mergers between firms and shareholdings increased by 22 percent.
This development brings about new decision-making processes for companies and national economic policy. Firms have to make decisions, i.a., about outsourcing specific activities, finding the optimal location for their enterprise and the design of international distribution channels. Furthermore global markets offer more opportunities for product and price design. At the same time, companies have to take different national consumer behaviors into account. Simultaneously, firms have also to consider national customer behavior in the countries concerned. Pricing and Revenue Management serves as a starting point for this. Due to increasing financial requirements, companies are using the possibilities of external lending in international markets. Thereby the international orientation contains special risks. Hence firms must take into account not only exchange rate and country risks, but also different tax systems and treaties on their due diligence and their costs of capital. What do these effects look like and how are companies able to handle these risks? Apart from these requirements on the companies themselves, to guarantee an efficient cooperation and a smooth flow of information, the demands for information and communications technology are increasing too. In Addition, and especially in this international context, managers are calling for management support systems to handle data efficiently and to make decisions more precisely. Moreover, an inter-company based view of an integrated and IT-driven revenue and risk management system, is obtaining an increased relevance, in the course of Basel II regulation, to strengthen the competitiveness of the firms. Changing framework conditions necessitate an adjustment of the national economic policy as well. From the point of view of environmental policy, an efficient supply structure of secondary raw material, as an alternative to primary raw material, is of great importance both for companies and whole economies, especially under the aspect of a sustainable economic development. The optimal arrangement of global recycling management systems is providing a promising approach for this. Central elements for the progress of economies are the creation and distribution of knowledge and innovations. How will this process take place in our modified economic world and how is it possible for the economic policy to give support? Furthermore, questions towards regional economic policy are also of great importance, because the significance of regions as locations will increase as a part of the globalization process. How should a successful regional economic policy look like?
The global value creation, therefore, shows the increasing need for economists, who are able to recognize and shape a dynamic and international business environment. On this account, the competence center for Global Business Management has the goal to closely link the high leveled methodical and application-oriented research with the teaching and further scientific education.
The mission of the GBM competence center is a profound and interdisciplinary exploration of all essential economic and business interrelationships of international value networks to support companies and the national economic policy in this process. For this purpose, the involved Professors are working closely together in combined research projects, since many questions involve branches from both business and economics. Moreover the GBM competence center cooperates with other departments at the University of Augsburg, in particular with the competence center “Augsburg Center for Global Economic Law and Regulation” at the law department.