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- Blankenburg Holm, Desiree, et al.
(författare)
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The internationalization processes of the firm: a new research agenda
- 2009
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Ingår i: Research on Knowledge, Innovation and Internationalization. - Bingley : Emerald. - 9781848559561 ; , s. 3-20
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Bokkapitel (övrigt vetenskapligt/konstnärligt)abstract
- We examine the fundamental assumptions and features of the Uppsala model of internationalization and argue that we need to look beyond this model for studying internationalization processes in the multinational corporations (MNCs) of today. The purpose of our paper is to identify gaps and neglected issues regarding MNCs' internationalization processes that demand further theoretical and empirical study. Our approach is conceptual: based on the most cited model on internationalization, the Uppsala model, we approach the complex internationalization processes that continously go on in modern MNCs. We use related bodies of literature, on MNC structure and strategy, headquarters-subsidiary relationships, MNC subsidiary strategy development, and opportunity seeking and entrepreneurship, to fill in the gaps and develop the emerging research themes. We identify the following three issues that need further investigation: the opportunity recognition process preceding internationalization processes in MNCs, the internationalization of multiple products within the confines of the growing MNC, and the internationalization of foreign MNC units. In this paper, we open up new research fields but do not offer empirical stuydies to inform us about these relevant issues. Future research should study these issues empirically, preferably through case study methologies an/or with longitudinal designs. The contribution of our paper is its identification of three research issues in relation to internationalization processes of modern MNCs, which we argue are neglected by contemporary reseach.
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- Drogendijk, Rian, et al.
(författare)
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The Internationalization Processes of the Firm : A New Research Agenda
- 2008
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Konferensbidrag (refereegranskat)abstract
- This paper examines the fundamental assumptions and features of the Uppsala model of internationalization to suggest they have prevented the exploration of several conceptually relevant aspects of the internationalization of the firm. We identify three neglected issues that offer significant potential for further theoretical and empirical work, specifically the pre-history of internationalization, the internationalization of multiple products within the confines of the growing multinational corporation, and the internationalization of foreign units.
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- Eriksson, Kent, et al.
(författare)
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Factors Affecting SME Export Channel Choice in Foreign Markets
- 2006
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Ingår i: Advances in International Marketing. - 1474-7979. ; 16, s. 1-22
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Tidskriftsartikel (refereegranskat)abstract
- Determining market channels is usually considered a discrete decision made by the expanding firm (e.g., Anderson & Coughlan, 1987; Bello & Gilliland, 1997; Solberg & Nes, 2002). In reality, this decision is often limited by knowledge constraints and customer demands. We find an example of this in Gamma's attempt at entering the Italian market (Hohenthal, 2001). {A textbox is presented}. Gamma's attempted entry into Italy is not a unique situation facing internationalizing small- and medium-sized enterprises (SMEs). The array of possible channels is usually rather limited. A firm's decision regarding what channel to use may be the result of the firm's knowledge or indeed lack of knowledge about a specific customer and the foreign market in general, such as competitors or cultural differences. The internationalization process (IP) model is a theoretical framework that recognizes how a firm's knowledge of a foreign market and the influence business relationships may have on the choice of market channel (Johanson & Vahlne, 1977, 1990, 2003). This framework postulates that firms with increased experience will increase their commitment in a market. Because firms wish to avoid uncertainty and initially lack foreign market knowledge, the IP model claims that firms expand their operations in small sequential steps, starting with no regular export activities and gradually increasing their commitment to the market and finally setting up a manufacturing subsidiary (Johanson & Vahlne, 1977; Johanson & Wiedersheim-Paul, 1975). This outcome of sequential steps, also known as the establishment chain (Johanson & Wiedersheim-Paul, 1975), has been heavily criticized because empirical research has shown that the establishment patterns of firms are less restricted than proposed by the model (Björkman, 1989; Hedlund & Kverneland, 1985; Turnbull, 1987; Welch & Loustarinen, 1988). Even though firms use a variety of establishment patterns when internationalizing, a growing body of research shows that firms gradually develop knowledge from their experiences (Barkema, Bell, & Pennings, 1996; Barkema, Shenkar, Vermeulen, & Bell, 1997; Barkema & Vermeulen, 1998; Delios & Beamish, 1999, 2001; Eriksson, Johanson, Majkgård, & Sharma, 1997; Hitt, Dacin, Tyler, & Park, 1997; Madhok, 1996; Zahra, Ireland, & Hitt, 2000). Thus, the model's fundamental argument that knowledge is developed through experience is generally supported in internationalization research. Based on the critique of the establishment chain proposition, reconsidering the explanatory power of the IP model may be warranted. For example, it may be more appropriate to use the IP model to explain the sequential buildup of knowledge rather than discrete choices of mode of establishment. The accumulation of experience occurs before, during, and after the exact time when a decision to establish in a certain mode is made. Despite the extensive acceptance of behavioral-oriented arguments in foreign-entry mode research (export, joint venture, and subsidiary modes), surprisingly few studies have been conducted on the determinants of integrated and non-integrated channels (see Aulakh & Kotabe, 1997, for notable exception). Thus, a behavioral-oriented approach to the study of firms' choices of market channels in foreign markets may prove enlightening. Adopting this approach is of particular interest because transaction-cost analysis has proved effective in explaining why firms choose either integrated or non-integrated channels (Hennart, 1991). Therefore, the question that needs to be answered is whether or not the IP model can be used to explain why firms choose integrated or non-integrated channels. If the IP model cannot be applied in this case, it should be clarified that this model can be used to explain sequential knowledge accumulation through experience but nothing else. The purpose of this study is to test which IP-related antecedents lead to the use of a specific channel in a foreign market. The two alternatives tested here are integrated and non-integrated channels. To accomplish this objective, we apply an IP approach to international business and then discuss channel choice from a knowledge perspective. Several hypotheses are developed concerning channel choice and tested on a sample of SMEs from Sweden, Denmark, and New Zealand. We use logistic regression to analyze our data. Based on this analysis, we present a discussion of our results and some managerial and research implications.
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- Eriksson, Kent, 1964-, et al.
(författare)
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SME export channel choice in international markets
- 2006
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Ingår i: Advances in International Marketing. - : Emerald Group Publishing Limited. - 1571-2990. ; :16, s. 1-22
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Tidskriftsartikel (refereegranskat)abstract
- The Internationalization Process (IP) model claims that firms gradually accumulate knowledge of foreign markets, and that this kind of knowledge determine foreign establishment. Later developments of the model claim that experiences and knowledge of local business relationships are also essential elements of the IP model. The IP model has been found to hold well for incremental resource commitments. However, while other theories, such as the transaction-cost theories have managed to explain why firms go from integrated to non-integrated channels, the IP model has produced mixed results. This paper tests some of the fundamental IP model factors on a sample of Small and Medium Sized firms. Findings are that factors included in the initial explanation of the IP model explain choice of channel, but that the later developments of the model does not. Implications are that the foreign market knowledge is, and that more incremental experiential knowledge accumulation is not relevant for export channel choice as regards integrated or non-integrated channel.
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- Hohenthal, Jukka, et al.
(författare)
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Experience and growth expectations in the internationalization process of SME’s
- 2006
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Ingår i: EMAC.
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Konferensbidrag (refereegranskat)abstract
- The objective of this paper is to test if prior knowledge and market knowledge influence the firm’s expectation that it will find growth opportunities in foreign markets. The study advances four hypotheses, which are tested on a sample of460 CEO’s or managers in firms in Denmark, New Zealand and Sweden. A LISREL analysis gives support to three of the hypotheses: General international business experience and knowledge about competitors in the foreign tend to have a positive effect on the firm’s expectation to find growth opportunities. Firms with a higher degree of international experience tend to have more relevant international business experience. Knowledge about the customer, however, had the opposite sign to the proposed one. Firms with more knowledge about customers tend to see less growth opportunities. The main conclusion drawn from the study is that firms expect to find growth opportunities based on its concrete business experience. Business operations can help the firm to recognize opportunities but also limit how far it can see. The operations thereby define the firm’s opportunity horizon. Customer knowledge, however, seems to be a result of already exploited opportunities.
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