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- Andersson, Svante, 1962-
(författare)
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Internationalization in Mature and High Growing Industries
- 2000
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Konferensbidrag (refereegranskat)abstract
- Principal TopicWhy firms choose to establish themselves in certain markets is a question that has been discussed by different researchers. One of the most used concepts when discussing this question is psychic distance. In this article the concept is compared with other researchers’ views of market choice. Moreover, various theories are used to analyze the market choice of different Swedish firms. The international developments of some Swedish firms are shown in case studies, where market choice in mature and high growing industries is discussed. Is psychic distance still relevant to understand firms’ market choice? If not, which other theories can be useful to understand firms’ market choice?MethodCases from the rubber product industry is chosen to illustrate internationalization in a mature industry and cases from the ERP (Enterprise Resource Planning) industry are chosen to illustrate internationalization in a high growing industry. The cases was chosen because their international development illustrated various situation where theories could be compared with the firms’ actual behavior.The case studies are built on secondary data, such as business magazines, annual reports and internal documents, but mainly on personal interviews. I interviewed the individuals that personally took part in the decisions and implementation of the companies’ different establishments abroad, such as chairmen of the boards, presidents, export directors, area managers, export salesmen, presidents of subsidiaries, etc. More than 50 individuals were interviewed. The individuals who had the greatest influence on the internationalization processes were interviewed several times. Former interviews led to the identification of individuals who were central in the internationalization process. The interviewees have had the opportunity to read and comment on the drafts of the different cases.ImplicationsThe conclusion is drawn that different theories are relevant in various situations. Psychic distance is identified as a partial model and different theories are appropriate dependent of the firms’ degree of internationalization and if the industry is mature or growing. Decision-makers are recommended to careful analyze their own situation and use different models in various situations.
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