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The Internationalization of the Firm: Four Swedish Cases

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... Although the concept of nonlinear patterns in explaining firm internationalization has been widely accepted in international business (IB) literature (e.g., Benito & Welch, 1994;Kafouros, Hashai, Tardios & Wang, 2022), a question that has not been addressed is how a firm's nonlinear internationalization is shaped in an ever-changing foreign environment. The dynamic institution-based view (Meyer, Estrin, Bhaumik & Peng, 2009;North, 1990) and the internationalization process perspective (Johanson & Vahlne, 2009;Johanson & Wiedersheim-Paul, 1975) consider a firm's internationalization as a series of responses to changes in foreign countries. Nevertheless, in addition to expanding into a foreign country, firms may exit the country (i.e., de-internationalize, Benito & Welch, 1997) and, after a time-out period, reenter it (i.e., re-internationalize, Welch & Welch, 2009). ...
... The novel perspective of the foreign exit-reentry model contributes to the internationalization process research (Benito & Welch, 1994;Johanson & Vahlne, 2009;Johanson & Wiedersheim-Paul, 1975;Welch & Paavilainen-Mäntymäki, 2014) by examining both the antecedents of internationalization activities and the path-dependence sequence in a temporal manner. The theoretical value of this model lies in examining how factors that affect one stage of an internationalization process will influence the subsequent stage after a time-out period and, in turn, shape the process. ...
... Specifically, the dynamic institution-based view and the internationalization process perspective posit that firm internationalization is a series of internationalization activities in response to changes in foreign countries (Johanson & Vahlne, 2009;Johanson & Wiedersheim-Paul, 1975;Meyer et al., 2009;Santangelo & Meyer, 2011). Past studies have presented evidence of the interconnectedness of internationalization activities (see a review in Welch & Paavilainen-Mäntymäki, 2014). ...
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[OPEN ACCESS] We extend the internationalization process literature by theorizing how institutional unpredictability and its changes can affect the foreign exit− reentry process and how the multidimensionality of foreign ownership can alter these impacts as a firm's conduit to different foreign countries. Drawing on the dynamic institution-based view, we examine a process whereby firms exit and reenter foreign countries in response to institutional dynamism. By distinguishing foreign shareholders from host and nonhost foreign countries, we identify the negative moderation effects of host-country foreign ownership but not nonhost foreign ownership. Our study, therefore, contributes an integrative framework to the de-and re-internationalization research. https://www.sciencedirect.com/science/article/pii/S1090951622000803?via%3Dihub
... The eclectic composition argued further that ownership advantages and internationalization were a function of a business's relationship with the market and its ability to exercise an advantage; the approach accommodates the FDI and the multi-dimensional aspects of a multinational operation (Buckley et al., 1984;Dunning, 1977Dunning, , 1980. Many theories capture the concept of internationalization of businesses; building on the scholarly matter (Buckley et al., 1984;Dunning, 1980;Fletcher, 2001;Geursen & Dana, 2001;Johanson & Wiedersheim-Paul, 1975;Lopez Morales, 2020;Knight, 2015;Kwabena, 2011;Melin, 1992;Prahalad & Hamel, 2009;Ribau et al., 2015;Windsor, 2017) This paper aims to deliver a theoretically positioned literature review with a diagnostic yet methodical view of why, how and when businesses and entrepreneurial ventures continue to pursue internationalization. Primarily the goal of the paper is to contribute to the allotment of expressive contextualization and organization of critical theories, models and concepts in business and venture internationalization as supported by selected theoretical and applied work that has been conducted on the subject between the seventh century and the twenty-first century. Conclusively, the paper anticipates enlightening a considerate and subsequent choice of internationalization approaches based on this paper's awareness via a literature review. ...
... The Nordic School, i.e. Uppsala Model (Johanson & Wiedersheim-Paul, 1975) in this school thought it is held that businesses would first need to acquire experience and knowledge of markets, and then move to a stage where they explore different market entry and internationalization modes sparling under an involvement and market commitment approach. The Uppsala theory conceives that most businesses that went international firstly focused on local and nearby markers, then gradually went into far-flange international markets. ...
... Johansson & Wiedersheim-Paul (1975) postulates four distinctive approaches to internationalization where the success stages represent a sophisticated notch of market involvement and commitment. The first stage is sporadic exports. ...
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Internationalization of business, firms and entrepreneurial ventures has a robust literature on whose account much research has been done. Unfortunately, the literature is highly fragmented and, in some cases, contested. The principal deliberations under consideration have been based on marketing and economic theories. They span from the classical model, such as the theories of Absolute Advantage and Resource Allocation by Adam Smith. Heckscher and Ohlin through the Internationalization theory of Buckley and Casson to Born-Global and Knowledge-Based-Perspectives. Literature is the Uppsala model speaks to progression internationalization while the Born-Global phenomenal postulates markets, founder entrepreneurial and behavioural arguments. This paper conveys a theoretically disposed literature review with an analytical view of why, how and when businesses and entrepreneurial ventures continue to pursue internationalization. The paper aims to assign meaningful contextualization and arrangement of fundamental theories, models and concepts in business and venture internationalization. This informs an understanding and subsequent choice of internationalization approaches in the industry.
... The firm through its local activities had drawn the attention of scholars. The firm was domestic in its reach at the beginning, and later grew, reaching the global marketplace (Cyert and March, 1963;Johanson and Wiedersheim-Paul, 1975). At this point, scholarly contributions were keen to show that the firm had strategies focused on remaining within its marketplace and following domestic market trends while exporting to overseas customers. ...
... The firm Domestic/International reach through export (Cyert and March, 1963;Johanson and Vahlne, 1977;Johanson and Wiedersheim-Paul, 1975;Kogut and Singh, 1988;Penrose, 1959 The multinational enterprise -MNE Centralised headquarters/Localised national or regional operations/ Foreign direct investment -FDI (Agarwal and Ramaswami, 1992;Buckley and Casson, 1976;Dunning, 1980;Dunning, 1998;Ghoshal and Bartlett, 1990;Knickerbocker, 1973;Rugman and Verbeke, 2004;Vernon, 1971 The transnational enterprise -TNE Centralised headquarters/Assumptions of no borders (Skully, 1976;Stewart, 1972 Globalisation No borders, international workforce, global supply chains, etc. (Maruca, 1994;Shenkar, 2004 Bilateral and multilateral trade Trade between states, trade blocs, treaties, customs unions, etc. (Czinkota et al., 2002;Kameda, 2005 etc.) (Agarwal and Ramaswami, 1992;Cyert and March, 1963;Czinkota et al., 2002;Dunning, 1980;Johanson and Vahlne, 1990;Penrose, 1959;Shenkar, 2004;Skully, 1976 etc.) ...
... Extension paradigmbroadening of a firm's activities across national borders Buckley and Casson (1976) -The future of the firm Barney (1991) -Firm resources and competitive advantage Cyert and March (1963) -Behaviour of firms Johanson and Wiedersheim-Paul (1975) -Internalisation of the firm Johanson and Vahlne (1977) -Mechanism of internalisation Penrose (1959) -The growth of the firm Sullivan (1994) -Measuring the degree of a firm's internalisation Agarwal and Ramaswami (1992) -Choice of foreign market entry Vernon (1971) -Multinational spread of the firm Kogut and Zander (1993) -Knowledge of the firm/MNE evolution etc Cross-border paradigm -Challenges faced by firms as they cross borders Bartlett and Ghoshal (1989) -Managing across borders Rugman and Verbeke (2004) -Regional and global MNE strategies Skully (1976) -The TNE and its prospects Kogut and Singh (1988) -National culture and foreign entry mode Maruca (1994) -The right way to go global Nayyar (1978) -Manufacturing exports to poor countries Knickerbocker (1973) -Oligopolistic reaction to the MNE etc Eclectic paradigm -Ownership, location and internalisation advantages Dunning (2000) -Ownership, location and internalisation framework Dunning (1998 Table 2. Methodological approach and how to improve global operations. Despite the variation between the three paradigms, they remain firm-level paradigms, making them needlessly limiting. ...
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Purpose The purpose of this paper is to analyse international business (IB) scholarship and present current gaps and new realities to enhance scholarly discourse. Design/methodology/approach The paper divides the scholarship into three distinct sections. First, it interrogates the changing definitions of the field from the 1880s to date. Secondly, IB paradigms are cross-examined while highlighting the understudied emerging interaction paradigm. Lastly, literature gaps, methodological gaps and new realities in IB are presented. Findings This research shows that IB inquiry has concentrated on firm-level paradigms, leaving the emerging interaction paradigm understudied. As a result, there is a deficit of novel ideas and limited research on critical emerging issues affecting IB. Further, simplistic methodologies are prevalent, making IB scholarship weak. Additionally, a majority of studies concentrate on the Americas, Europe and Asia, leaving Africa understudied. Originality/value This research augments the need for scholars to cross-examine the best approach to apply in IB discourse and presents gaps calling for new insights and future research directions.
... Pour étudier les effets des réseaux sociaux numériques sur l'internationalisation des PME, nous avons retenu le modèle d'Uppsala qui met l'accent sur le concept de distance psychique. La distance psychique résulte des différences de langue, de culture, de systèmes politiques, de niveaux d'éducation et de développement industriel entre les pays (Johanson et Wiedersheim-Paul, 1975). Elle peut perturber les flux d'information et accentuer les obstacles auxquels sont confrontées les entreprises dans le cadre de leur internationalisation (Johanson et Vahlne, 2009;Vahlne et Johanson, 2017. ...
... La distance psychique, un concept clé du modèle d'Uppsala Développé par Johanson et Wiedersheim-Paul (1975) et Johanson et Vahlne (1977), le modèle d'Uppsala montre que l'internationalisation des entreprises constitue un processus qui s'effectue en plusieurs étapes : les entreprises commencent par exporter leurs produits avant d'engager des partenariats et d'implanter des filiales à l'étranger, d'abord dans des pays proches (par exemple, des pays limitrophes), puis dans des pays plus éloignés (par exemple, des pays appartenant à d'autres espaces géographiques). Cette démarche progressive permet aux entreprises de bénéficier d'un effet d'apprentissage expérientiel concernant les marchés étrangers avant d'y consacrer des ressources plus importantes et de se développer sur des marchés plus lointains. ...
... Elle est susceptible de perturber les flux d'information entre l'entreprise et les pays étrangers, et de rendre l'accès aux informations relatives aux marchés ciblés plus difficile. La distance psychique peut évoluer selon l'engagement international de l'entreprise : elle diminue au fur et à mesure que l'entreprise augmente son engagement sur les marchés étrangers (Johanson et Wiedersheim-Paul, 1975). ...
... Com isso, tal fator pode ser fonte de vantagem competitiva, pois possibilita a redução da dependência do mercado de origem e o aumento da rentabilidade da empresa-alvo desse processo (Johanson & Vahlne, 1977;Wu et al., 2016). Com base nas teorias Upstream-Downstream, Uppsala Internationalization Model e Pecking Order, espera-se que haja uma relação entre a necessidade de capital de giro (NCG) e a internacionalização (Johanson & Wiedersheim-Paul, 1975;Myers & Majluf, 1984;Kwok & Reeb, 2000). ...
... De acordo com o Modelo de Internacionalização Uppsala (Uppsala Internationalization Model), antes de se internacionalizarem, as empresas buscam a consolidação dos negócios no mercado de origem, conhecendo-o e adquirindo experiência, até perceberem que o potencial de expansão dos negócios no mercado atual está chegando ao limite. Nesse sentido, com base no modelo de Uppsala, a internacionalização tende a ocorrer após a empresa ter recursos internos suficientes para assegurar a operacionalização desse processo, o que deve acontecer de forma gradual para que a companhia possa se adaptar aos fluxos de informações do novo ambiente (Johanson & Wiedersheim--Paul, 1975;Johanson & Vahlne, 1977;Jain et al., 2019). Bonfim et al. (2018), tendo como base a teoria Uppsala no âmbito da tomada de decisão dos gestores quanto à internacionalização, destacam que a tolerância à ambiguidade não se mostra de forma significativa, o que é um antecedente do risco mencionado. ...
... O rela- cionamento entre as duas variáveis está fundamentado no fato de que as empresas mais internacionalizadas precisam de mais recursos para que possam manter suas atividades no exterior, como um aumento nas contas a pagar, por necessitarem de uma maior quantidade de funcionários, além de gastos com o aluguel das instalações (Johanson & Vahlne, 1977;Ribeiro et al., 2017). Esses são alguns fatores que levariam as companhias a obter uma maior consolidação no mercado doméstico antes de se internacionalizarem (Johanson & Wiedersheim-Paul, 1975;Hernandes Júnior et al., 2020), uma vez que essas firmas optarão pela utilização de recursos internos (Johanson & Vahlne, 1977;Myers & Majluf, 1984;Pamplona et al., 2020;Oliveira & Kayo, 2020). Além disso, essas firmas poderão obter crédito, se isso for necessário, com maior ou menor facilidade, considerando as características do mercado de origem, o novo mercado em que atuam e, ainda, o seu grau de internacionalização (Myers & Majluf, 1984;Kwok & Reeb, 2000;Saito & Hiramoto, 2010;Ribeiro et al., 2017). ...
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Purpose This study aims to analyze the effects of crisis periods on the relationship between internationalization and the working capital requirement (WCR), from 2010 to 2018, using publicly-traded Brazilian firms as a sample. Originality/value This paper contributes to the literature by addressing a topic that is still little explored regarding the relationship between WCR and internationalization, as well as analyzing the influence of the economic crisis on this relationship, using, for that, three internationalization proxies for the robustness of the results. Design/methodology/approach To achieve this goal, a regression by the generalized method of moments (GMM) with panel data was used. For this, three databases were used for data collection: Economatica, Securities and Exchange Commission (Comissão de Valores Mobiliários – CVM), and J. P. Morgan. Findings More internationalized Brazilian firms tend to have a higher WCR and use stock as a way to protect themselves against possible unforeseen events arising from import processes. In addition, internationalization is shown as a way for firms to maintain their level of activity during national crisis periods. Keywords: working capital; internationalization; crisis; import; GMM
... Thus, this factor can be a source of competitive advantage, reducing dependence on the market of origin and increasing the profitability of the target firm in this process (Johanson & Vahlne, 1977;Wu et al., 2016). Based on the Uppsala Internationalization Model and Upstream-Downstream and Pecking Order theories, it is expected that there is a relationship between working capital requirement (WCR) and internationalization (Johanson & Wiedersheim-Paul, 1975;Myers & Majluf, 1984;Kwok & Reeb, 2000). ...
... According to the Uppsala Internationalization Model, before going international, firms seek to consolidate their business in the market of origin, getting to know it and gaining experience until realizing that the potential for business expansion in the current market is reaching the limit. In this sense, based on the Uppsala model, internationalization tends to occur after the company has sufficient internal resources to ensure the operationalization of this process, and it should occur gradually to adapt to the information flows of the new environment (Johanson & Wiedersheim-Paul, 1975;Johanson & Vahlne, 1977;Jain et al., 2019). Bonfim et al. (2018), based on the Uppsala theory, in the context of decision-making by managers regarding internationalization, highlight that tolerance to ambiguity does not show up significantly, which is an antecedent of the aforementioned risk. ...
... These are some of the factors that make firms wait until they obtain a greater consolidation in the domestic market before going international (Johanson & Wiedersheim-Paul, 1975;Hernandes Júnior et al., 2020), deciding to use internal resources (Johanson & Vahlne, 1977;Myers & Majluf, 1984;Pamplona et al., 2020;Oliveira & Kayo, 2020). In addition, if necessary, obtaining credit from these firms may be more or less easy, considering the characteristics of the market of origin, the new market in which the company operates, and, also, its degree of internationalization (Myers & Majluf, 1984;Kwok & Reeb, 2000;Saito & Hiramoto, 2010;Ribeiro et al., 2017). ...
Article
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Purpose: This study aims to analyze the effects of crisis periods on the relationship between internationalization and the working capital requirement (WCR), from 2010 to 2018, using publicly-traded Brazilian firms as a sample. Originality/value: This paper contributes to the literature by addressing a topic that is still little explored regarding the relationship between WCR and internationalization, as well as analyzing the influence of the economic crisis on this relationship, using, for that, three internationalization proxies for the robustness of the results. Design/methodology/approach: To achieve this goal, a regression by the generalized method of moments (GMM) with panel data was used. For this, three databases were used for data collection: Economatica, Securities and Exchange Commission (Comissão de Valores Mobiliários – CVM), and J. P. Morgan. Findings: More internationalized Brazilian firms tend to have a higher WCR and use stock as a way to protect themselves against possible unforeseen events arising from import processes. In addition, internationalization is shown as a way for firms to maintain their level of activity during national crisis periods. / Resumo Objetivo: O objetivo deste estudo foi analisar os efeitos dos períodos de crise na relação entre internacionalização e necessidade de capital de giro (NCG), no período de 2010 a 2018, tendo como amostra as empresas brasileiras de capital aberto. Originalidade/valor: O artigo contribui para a literatura por abordar um tema ainda pouco explorado no que tange à relação entre NCG e internacionalização, além de analisar a influência da crise econômica nessa relação, utilizando, para tanto, três proxies para internacionalização para fins de robustez dos resultados. Design/metodologia/abordagem: Para alcançar o objetivo, usou-se uma regressão pelo método dos momentos generalizado (GMM) com dados em painel. Para isso, foram utilizadas três base de dados para a coleta dos dados: Economatica, Comissão de Valores Mobiliários (CVM) e J. P. Morgan. Resultados: Constatou-se que as empresas brasileiras mais internacionalizadas tendem a ter uma maior NCG e utilizam o estoque como forma de proteção de possíveis imprevistos oriundos de processos de importação. Além disso, a internacionalização se mostra como uma forma de as empresas manterem seu nível de atividade em período de crise nacional.
... The first pattern is that the commitment to engage in operations in a specific foreign market develops according to the establishment chain, which is a series of stages that are made in small incremental steps with extended commitment and a higher degree of commitment for every new step. The four stages were identified as: (1) No regular export activities, (2) Export via independent agent, (3) Sales subsidiary and (4) Production/manufacturing (Johanson & Wiedersheim-Paul, 1975). The second pattern explained was that firms are inclined to enter new markets with successively greater psychic distance, and in most cases also greater geographical distance (Johanson & Vahlne, 1990). ...
... According to Johanson & Vahlne (1977) firms begin the internationalization process in markets that have less psychic distance, which are factors such as differences in language, culture, political systems, values, believe system, and others. It is assumed that more or higher psychic distance can disturb the flow of information between the firm and the foreign market (Johanson & Wiedersheim-Paul 1975), thus inhibiting market knowledge which in turn hinders market commitment. The foreign operation is initiated by using exports and gradually moving to more intensive and demanding operation modes (overseas sales subsidiaries etc). ...
... The level of knowledge of foreign markets and operations is influenced by the level of commitments of resources in foreign markets, and vice versa (Johanson & Vahlne, 1977). The model indicates that level of commitment may also decrease or cease if performance and prospect in the foreign markets are not sufficiently met (Eglar, 2003;Johanson & Vahlne, 1977;Johanson & Wiedersheim-Paul, 1975). ...
Thesis
This study investigated the relationship between performance and internationalization among small enterprises in Kampala, Uganda. Specifically, the study sought to explore the effect of performance on; (i) sporadic exporting; (ii) export via independent agent; (iii) overseas sales subsidiary; and (iv) overseas production subsidiary, respectively. The study was carried out by developing a conceptual framework relating performance to internationalization by adopting ideas from Johanson & Vahlne’s (1977) Uppsala internationalization model. Using a mixed-method (qualitative and quantitative), cross-sectional survey, data was collected using questionnaires supplemented by semi-structured interviews from 409 small businesses from the five divisions of Kampala. The 409 were further reduced to 193 small businesses due to the fact that they existed in industries that displayed a higher possibility of internationalizing. The response rate was 68.2%. The data were analysed at the univariate level using summary statistics such as means and standard deviation; at the bivariate level correlation analysis and ANOVA were utilized, and at the multivariate level multiple regression analysis was employed. The study revealed that the level of internationalization was generally very low among small businesses in Kampala; information and knowledge of internationalization were limited among small businesses and; sporadic exporting was the most prevalent aspect of internationalization. The overall performance had a significant negative effect on internationalization among small businesses in Kampala, Uganda. The study also proved that the relationship between performance and sporadic exporting was positive and significant. The other aspects of internationalization all displayed a significant negative relationship with performance. The conclusion was made that several aspects of internationalization appear to be foreign to small businesses. The desire to acquire more information on internationalization in relation to their respective industry was shown by the various respondents. This implies the willingness to internationalization if the right resources are made available. Implications in terms of theory, policy and management were documented. Recommendations made from the study were: (i) information on internationalization be made available to and aimed solely towards small businesses; (ii) through the establishment of an exporting agency tailored specifically for small businesses, sporadic exporters can be converted to regular/consistent exporters (export via an independent agent); (iii) encouraging entrepreneurs/ business owners to incorporate internationalization strategies into their business plan from the inception of their businesses; and (iv) initiation of public-private partnerships that can jumpstart internationalization among small businesses that adopt best practices and offer unique innovative products or processes that can offer a basis for a competitive advantage in foreign markets.
... Her iki ölçekteki firmalarda üretimlerinden kaynaklanan rekabet avantajları ile iç pazarlarında sağlam bir büyüklüğe ulaştıktan ve beraberindeki teknoloji, finansal kaynaklar ile beceri yönetimini elde ettikten sonra uluslararası genişlemelerine başladıkları belirtilmektedir. Söz konusu firmalardan bazıları sürecin en başında önemsiz bir ithalat talebi ile ihracata başlayıp uluslararasılaşmaya adım attıktan sonra dış ticaret departmanı kuruluşu ile devam eden sürecin sonunda zaman zaman uluslararası ticarete tam entegre küresel bir girişime dönüşebilmektedirler (Oviatt & McDougall, 1994 Süreçlere dayalı yaklaşım Uppsala Modeli (Johanson & Wiedersheim-Paul, 1975;Johanson & Vahlne, 1977; ve İnovasyon Odaklı Modeller (Bilkey & Tesar, 1977;Çavuşgil, 1980;Czinkota, 1982;Reid, 1981) ...
... Bu avantajları ile beraber ihracata dayalı uluslararasılaşma stratejisi benimseyen KOBİ'lerin sahip oldukları kısıtlı kaynakları kullanarak, hızlı ve az riskli bir şekilde uluslararasılaşma derecelerini yükseltebileceği düşünülmektedir. Uluslararasılaşma literatürü incelendiğinde uluslararasılaşma teorileri ve modellerinin çoğunda özellikle de uluslararasılaşmayı sürece dayalı yaklaşımlarla (Uppsala Teorisi (Johanson & Wiedersheim-Paul, 1975;Johanson & Vahlne, 1977;, İnovasyon Odaklı Uluslararasılaşma Modelleri (Bilkey & Tesar, 1977;Çavuşgil, 1980;Reid, 1981) ölçütlerle belirlemeye çalışan araştırmacıların (Sullivan, 1994;Ruzzier vd., 2007;Kraus vd., 2016;Ding vd., 2020) (Narver & Slater, 1990). ...
Thesis
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In this thesis, it is aimed to measure the effect of internationalization degree, market orientation, innovation orientation and entrepreneurial orientation of SMEs carrying out export activities and to investigate the effect of these factors on the export performance of SMEs. For this purpose, the research data were collected from the manufacturing and exporter SMEs located in Adana, operating in the manufacturing sector, by online survey method. 121 usable data were analyzed using a statistical package program. As a result of the regression analysis, the findings of the analysis showed that the degree of internationalization of SMEs had a positive and significant effect on their market and entrepreneurial orientation, but it could not be found to have a significant effect on their innovation orientation. In addition, it has been determined that the market, entrepreneurial and innovation orientation of SMEs has a positive and significant effect on the export performance of SMEs.
... Small and medium-sized enterprises (SME) internationalization is a well-known phenomenon in the literature. The first attempt to explain the internationalization of these entities took place in the mid-1970s thanks to Swedish researchers Johanson and Vahlne (1974), who presented the Uppsala model of internationalization (Johanson & Vahlne, 1977;Johanson & Wiedersheim-Paul, 1975). That caused an intensification of research on SME internationalization. Two decards later, Oviatt and McDougall (1994) observed that the internationalization of some SMEs does not occur sequentially. ...
... The aim of this article is to present the process of internationalization of LPP business group and to discuss the early influence of the Ukrainian war on this process. The case study method had been used as it is a well-established method in social science (also in several areas of international business (IB) research, for instance Johanson and Wiedersheim-Paul, 1975;Vissak 2010). Case studies are especially helpful for illustration (Otley & Berry, 1998;Siggelkow, 2007), theory building (Eisenhardt, 1989), prediction (Woodside & Wilson) and identification of future research needs (Simon, Sohal & Brown, 1996;Halinen & Törnroos, 2005). ...
Conference Paper
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Smartness of the cities we are living in is ultimately more or less about the same as sustainability – our wellbeing, quality of everyday existence which always means living in concordance with nature, respecting others’ rights and protecting our mental and physical health. However, getting into the details of approaching, measuring and reporting progress in the practical implementation of both concepts is indispensable for understanding how "sustainability" and "smart-cities" - as to the rule socioeconomical categories - are intertwined. Both title concepts are defined quantitatively and qualitatively, and presented in various sources. Thus, the aim of the paper is to investigate their relationship in the conceptual sense and from practical point of view, i.e., how they are denoted and reflected by indicators and data. Then the title issue is presented via case research on Polish cities focusing on progress in implementing the smart city concept in this country. Research in Polish cities which is based on the literature and other available resources will elucidate various projects financed from EU funds and focus on projects linking sustainability and city smartness to show how they can be commonly and concurrently realized in practice.
... The process-oriented Uppsala model (Johanson & Wiedersheim-Paul, 1975;Johanson & Vahlne, 1977Forsgren & Johanson, 2010;Welch et al., 2016;Vahlne & Johanson, | 10 2017;Vahlne, 2020) and the knowledge-based view (Kogut & Zander, 1992, 1993) rest on 'Swedish' firms. ...
... The samples analysed were primarily of US origin, with the US being the home or the host country. 14 Rugman (1981) draws on MNEs headquartered in Canada, the Uppsala model (Johanson & Wiedersheim-Paul, 1975;Johanson & Vahlne, 1977 and the knowledge-based view (Kogut & Zander, 1992, 1993 on 'Swedish' firms. However, countryspecific institutions were not assumed to be influential. ...
Article
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In the aftermath of the Global Financial Crisis, the long-held confidence that ‘nationality’ would not matter in a globalised economy has dwindled. As the impact of economic and foreign policy on firms’ internationalisation and investment decisions appears to grow, and economic nationalism built on constructs of ‘nationality of the company’ gains weight, companies doing business abroad, including multinational enterprises operating in the US and Europe, are increasingly exposed to (often unexpected) implications of their ‘nationality’. We elaborate on related perspectives to the theme developed in the IB, global strategy, and international management literature and in business history. Based on these readings, we conceptualise the opaque notion of ‘nationality of the company’ and outline perspectives. We argue that ‘nationality’ appears in very different ways and suggest that research should focus more on specific political and institutional environments, and specific constructs of ‘nationality’.
... The concept of distance in international business relies on the existence of differences between countries (Hutzschenreuter et al., 2015), which hinder the flow of information from the destination market to the company (Hutzschenreuter et al., 2015;Johanson and Wiedersheim-Paul, 1975). Likewise, the definition of distance is linked to the difficulty of making two countries fit together and work synergistically as partners (Shenkar, 2001). ...
... In the same way, proactivity has a preventive function because it allows the SME, which has greater knowledge of the markets, to analyse and make predictions (Racela and Thoumrungroje, 2019); therefore, ID conditions learning as well as the management of international markets and the relationship with importers, as maintaining a relationship with them and identifying new business opportunities implies that SMEs know how to adapt to these environments (Johanson and Wiedersheim-Paul, 1975;Leonidou, 1995;Malca and Rubio, 2015;Tesfom and Lutz, 2006). Thus, considering the reactive nature of SMEs, which are a product of comparative advantages and serendipity, it will be difficult for them to interact and understand the operations of highly institutionalised markets; consequently, they will tend to have a low relationship with their customers. ...
Article
Purpose This study aims to analyse the joint impact of institutional distance (ID) and the generation of commercial intelligence (GCI) on export proactivity and coordination capacity, as well as the effect of these last ones on the export performance. Design/methodology/approach This analysis was carried out by using structural equation modelling for 89 Peruvian agro-exporting small and medium enterprises (SMEs). Findings This study demonstrates the positive impact of relational norms on intelligence generation, and that of the latter on coordination capacity and export proactivity. Likewise, ID has a negative impact on coordination capacity, revealing its inverse effect on this relationship. Research limitations/implications The paper has limitations due to its cross-sectional nature. In addition, future studies could increase the sample size and studies in other sectors for comparison purposes. Also, studies on ID in emerging countries should be deepened. Practical implications Managerial implications are reported and show the influence of the institutional context on the coordination capacity and export proactivity of the firm. Originality/value In the literature review on exporting SMEs in emerging countries, it has been little studied the impact of activities such as relationship management and ID from markets as antecedents to the GCI, export proactivity and coordination capacity as well as their effect on their export performance. Therefore, the originality relies on the insights provided by Peru, because this country bases its exports on its comparative advantages and the reactive behaviour of most of its small and medium enterprises (SMEs).
... For better understanding it is worth analyzing Behavioral theories of internationallization. Among the behavioral models, the most popular model is the Uppsala Model (the so-called U-Model) (Johanson & Wiedersheim-Paul, 1975;Blomstermo , 2003;Johanson & Vahlne, 1977;Johanson & Vahlne, 2009). The Uppsala model has become the basis for the development of other behavioral models (innovative models, strategic model, network model). ...
... On the other hand, the psychic distance shows the limitations in the process of cognizance and understanding the foreign market (Ciszewska-Mlinaric, 2019; Johanson & Vahlne, 1977) and includes, among others, areas such as culture, language differences, educational systems, business practices (Vidal-Suarez & Lopez-Duarte, 2013). With the help of psychic distance, it is possible to explain the initial stages of internationalization of the enterprise, while during the later stages of internationalization, the attractiveness of the foreign market becomes more important (Johanson & Wiedersheim-Paul, 1975). The level of distance is not constant and may change as a result of the development of international trade, communication, new technologies and other factors (Sorensen, 1977) and due to the increase of the knowledge accumulated by the investor. ...
Article
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Over time, the complexity and automation of the lending process has been and continues to be accompanied by an increase in the complexity of individual credit products. Modern computational credit products have forced commercial banks to standardize the assesment process of some retail and corporate borrowers. The automation of credit risk assessment is accelerating continuously, and commercial banks are becoming more and more aware of the need to improve the analysis and correct the omissions in the credit risk assessment process. In the current situation, each bank can independently use its models of expected and unexpected credit losses, adapting them to capital requirements.
... Constituido a partir de la observación del fenómeno de internacionalización de las empresas suecas en la década de los 70, el Modelo Uppsala es un de los pilares más utilizados para referenciar la construcción de estudios teóricos y prácticos en el área de negocios internacionales, en especial en lo que se refiere al análisis de entorno y estrategia de internacionalización (Johanson & Wiedersheim-Paul, 1975;Johanson & Vahlne, 1977;Holm, Eriksson & Johanson, 1996;Andersson, Johanson & Vahlne, 1997). ...
... De esta manera, la empresa va incrementando los recursos invertidos en un país de forma gradual (Johanson & Wiedersheim-Paul, 1975). Basada en el principio de que el conocimiento acerca del mercado puede ser mejorado y cambiar el punto de vista y la estrategia de la organización, el Modelo Uppsala es referencia para la construcción de varios modelos complementarios, como la división de factores presentada por Johanson y Vahlne (1977). ...
Chapter
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Este libro consolida resultados de investigación que permiten mirar los negocios internacionales a partir de diferentes perspectivas, proporcionando un aporte sistémico para la academia y el mercado. A partir de discusiones del punto de vista de relaciones internacionales, comercio exterior, logística, estrategias de internacionalización y negociación, esta obra discute aspectos actuales aplicables y relacionados a la actuación de las empresas colombianas en el mercado internacional, sus oportunidades y potencialidades competitivas. A lo largo de sus siete capítulos e introducción, el libro “Una mirada a las diferentes perspectivas de los Negocios Internacionales: Estrategias, principios y casos de internacionalización” presenta diferentes metodologías, herramientas, fundamentos y casos de referencia que pueden apoyar profesionales en el estudio y en la práctica de los negocios internacionales.
... Constituido a partir de la observación del fenómeno de internacionalización de las empresas suecas en la década de los 70, el Modelo Uppsala es un de los pilares más utilizados para referenciar la construcción de estudios teóricos y prácticos en el área de negocios internacionales, en especial en lo que se refiere al análisis de entorno y estrategia de internacionalización (Johanson & Wiedersheim-Paul, 1975;Johanson & Vahlne, 1977;Holm, Eriksson & Johanson, 1996;Andersson, Johanson & Vahlne, 1997). ...
... De esta manera, la empresa va incrementando los recursos invertidos en un país de forma gradual (Johanson & Wiedersheim-Paul, 1975). Basada en el principio de que el conocimiento acerca del mercado puede ser mejorado y cambiar el punto de vista y la estrategia de la organización, el Modelo Uppsala es referencia para la construcción de varios modelos complementarios, como la división de factores presentada por Johanson y Vahlne (1977). ...
Book
Full-text available
Este libro consolida resultados de investigación que permiten mirar los negocios internacionales a partir de diferentes perspectivas, proporcionando un aporte sistémico para la academia y el mercado. A partir de discusiones del punto de vista de relaciones internacionales, comercio exterior, logística, estrategias de internacionalización y negociación, esta obra discute aspectos actuales aplicables y relacionados a la actuación de las empresas colombianas en el mercado internacional, sus oportunidades y potencialidades competitivas. A lo largo de sus siete capítulos e introducción, el libro “Una mirada a las diferentes perspectivas de los Negocios Internacionales: Estrategias, principios y casos de internacionalización” presenta diferentes metodologías, herramientas, fundamentos y casos de referencia que pueden apoyar profesionales en el estudio y en la práctica de los negocios internacionales.
... There are two approaches called as stages models for internationalization: One of them is Uppsala Internationalization Model (Johanson and Wiedersheim-Paul, 1975;Johanson and Vahlne, 1977) and the innovation model (Cavusgil, 1980). They view internationalization by incremental stages. ...
Article
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The purpose of this study is to search the mediator roles of unique product development and global technological competence in the effect of international entrepreneurial orientation on company performance in international markets for born global companies. The study was conducted on born global companies which started its international activities in its first 7 years and operate in technoparks in Turkey. Data was collected by a questionnaire from 158 born global companies. According to the method proposed by Baron and Kenny, three models were created and compared with each other. The Structural Equation Modeling (SEM) method was applied because it is more appropriate for complex models. According to the findings of the study, unique product development and global technological competence do not have mediator roles in the effect of international entrepreneurial orientation on company performance in international markets. However, there is a direct effect of international entrepreneurial orientation on company performance in international markets. Global technological competence has a direct effect on performance in international markets. On the other hand, unique product development does not have a direct effect on performance in international markets but unique product development has a direct effect on global technological competence.
... Internationalization represents a great opportunity for firms in order to expand their activities abroad, being more competitive in foreign markets, offering products and services to new customers, enlarging their networks of collaboration with foreign partners, adopting new technologies and acquiring new knowledge (Johanson & Wiedersheim-Paul, 1975;Johanson & Vahlne, 2003, 1978, 1992Bergamaschi et al., 2021). Recent literature provides evidence that this is a long process and not easy to be implemented. ...
Conference Paper
Full-text available
International hotel industry has been playing a dominant role in developing country. Although the rate of female population in international hospitality industry is considerably low, several women workforces in such industry are increasing. However, women working in this international hospitality industry face many obstacles due to misperception about women workforce. As a result, this empirical research studies how organizational culture plays a powerful role in multinational workplace and its importance in determining the relationship between the organizational culture and the perception of overall workers in term of women workforce in international five-star hotels in Turkey. Regarding methodology, to assess research validity and to measure demographic and women workforce perception scale, authors took the scale from Trauth et al. (2004) and Öneren et al. (2014), since it had been used in Turkish context. For measuring organizational culture, authors took Corporate Value Scale by Cameron & Quinn (2006), consists of 20 questionnaire items measuring four types of organizational culture. The survey took place in Istanbul where there are five-star hotels, which most of them are well-known international hotel chains. The self-administrative questionnaires were distributed to the hotel staffs. Finally, authors provide the research findings and finalize with the conclusion of the research.
... Authors in the cluster have explored phenomena as international strategies, export behaviour, international market discovery, cultural differences and its impact on business performance, and organizational capabilities toward internationalization. The authors in Cluster II have theorized under the lenses of: (a) network and knowledge diffusion theory (Coviello et al. 2017;Johanson and Wiedersheim-Paul 1975); (b) agency costs theory (Cuervo-Cazurra and Dau 2009); (c) institutional settings, contexts, and changes theory (Cuervo-Cazurra and Genc 2008; Khanna and Palepu 2000;Peng 2003); (d) culture theory (Hofstede 2001); (e) resources-based theory (Peng and York 2001); and (f) technological capabilities theory (Dunning 1994). ...
Article
The Latin American region has attracted a great amount of interest among manage- ment and organizational scholars in recent years. The distinctive economic, social, and institutional features of the region represent a unique opportunity for theory building and testing in management and business research. This research answers the following overarching question: How the research about organizations in the Latin American context has evolved and how could it move forward? We perform an in-depth analysis consisting of a systematic review and bibliometric techniques (i.e., co-occurrence, co-citation, and co-authorship network analysis) of 1940 peer- reviewed articles published in the field during the 2004–2021 period. We exam- ine the most influential publications, authors, journals, and research organizations. Building on our analysis and results, we describe current research hotspots and sug- gest avenues for future research. Our results contribute to a broad discussion relative to the relevance of context in the organizational research community, providing the first holistic analysis of it.
... The wide acceptance of the Uppsala model has been supported by empirical evidence for the internationalization process of the Swedish firms ,,Sandvik'', ,,Atlas Copco'', ,,Facit'', and ,,Volvo'' in the 1970s. Uppsala is a classic example of the successful incremental international expansion of comparatively small firms that manage to overcome the lacks of knowledge of foreign markets and resources by sequentially taking decisions and learning about foreign markets and operations (22). ...
Article
In the field of internationalization small and medium-sized enterprises (SMEs) are often characterized by the lack of opportunities, market power and scarcity of resources when compared to large enterprises. Hence, greater challenges are posed by such deficiencies to the internationalization of SMEs. In this light, it may be assumed that the approaches of internationalization undertaken by SMEs differ from these of large enterprises. The PURPOSE of this research paper is to explore and expose the approaches to internationalization which are most commonly undertaken by SMEs. In terms of research METHODS, the author uses a descriptive research approach with secondary sources of data. A detailed examination of the literature reduces the RESULTS in internationalization approaches to the economic approach, stage approach, network approach and born-global approach as dominant. As CONCLUSIONS, it is highlighted the evolution in the discussed approaches – from a resource-based view to unilateral, multilateral and entrepreneurial viewpoints.
... Prior industry experience in a similar field can be argued to enhance the entrepreneur's ability to evaluate alternatives and seize opportunities (Blomstermo et al., 2004) and simultaneously build up their daily business quickly (Eriksson et al., 1997;Johanson and Wiedersheim-Paul, 1975). Together with industry experience valuable networks and customer knowledge can also be expected. ...
... Theories of Export Performance and Internationalization Speed: Why Should the Seller Do All the Work? The same implicit one-party premise runs through the internationalization process (IP) literaturefrom the Uppsala model (Johanson & Vahlne, 1977Johanson & Wiedersheim-Paul, 1975) to export process models (Bilkey & Tesar, 1977;Cavusgil, 1980Cavusgil, , 1984Reid, 1983). The Uppsala model is driven by a supposed need on the part of sellers to acquire knowledge about each target foreign market, with the level of investment to serve that market depending on that knowledge. ...
... According to Czinkota & Ronkainen (2004), internationalization is a gradual process, however, in recent years an increasing number of companies can be identified that do not follow the traditional pattern of internationalization process, for example: "Uppsala model" (Johanson & Wiedersheim, 1975;Johanson & Vahlne, 1977) or the "Innovation model" (Bilkey & Tesar, 1977;Cavusgil, 1980;Reid, 1981). These companies are known as "Born Global" (Welch & Luostarinen, 1988;Cavusgil & Knight, 2009) also commonly called a "Global Start-up" (Oviatt & McDougall, 1995) or referred to as "International New Ventures (INV)" (Oviatt & McDougall, 1994;McDougall & Oviatt, 1996). ...
Technical Report
This research report is integral part of six months training program, namely TOITA – “Talents Of Immigrants To Activity”, implemented by Tampere University of Applied Sciences in the Pirkanmaa region. The aim of the project is to conduct export market research for Polar Partners Limited that will help the company to export Finnish educational expertise in Pakistan. The objective of this study is to develop a market strategy for Polar Partners and identify the need, possible mode of entries, and profitability. Moreover, the study will highlight the business culture, products and services and practices of Polar Partners. It will also help to understand the logic behind exporting Finnish education. The implementation of the research is conducted through desktop research and is based on secondary data collection. The secondary data is extracted from scholarly sources and reliable bases that studied the market previously, along with up-to-date online articles and journals. The research will deliver the answers to objectives given by the TOITA project. Whereas, the information should give Polar Partners Limited a clearer picture of the market situation so to make decision, whether Pakistan is a potential market to enter and what are the opportunities and challenges of the market itself. Finally, the author gives recommendations based on the results and provide optimum solutions through identifying prospects for Finnish educational needs in Pakistan.
... In contrast, according to the contingency paradigm, exporting is regarded as a firm's strategic response to the interplay between internal and external factors (Robertson and Chetty 2000;Yeoh and Jeong 1995). 3 According to the Uppsala model developed by Johanson and Wiedersheim-Paul (1975) and its subsequent extensions by Vahlne (1977, 2009) experience accumulated in the domestic model is crucial for entering foreign markets. However, with the emergence of the so-called born global firms the Uppsala model was criticized as in contrast to the predictions of this model born global firms adopt a global approach right from their inception and internationalize very quickly. ...
Article
Purpose The main goal of this paper is to study empirically the importance of experience of top managers and firms for export performance, having controlled for a number of firm characteristics. Design/methodology/approach The study is based on the probit model applied to the 2020 edition of the BEEPS firm level survey. The authors analyze firms in 15 EU member and 15 non-member countries. Findings The results indicate that firm experience can increase the probability of direct exporting, but is not significant for indirect exporting. The results also support the importance of interaction between experience of managers and experience of firms. The authors conclude that only the combination of managerial and firm experience can have a positive and significant effect for direct exporting. This relationship is more pronounced in the case of EU members. Research limitations/implications The main limitations of our approach are related to data constraints. These include availability of only cross-sectional data and the limited number of individual characteristics of managers. Practical implications The importance of experience for exporting suggests that firms can break into foreign markets by hiring more experienced managers. Social implications Post-communist countries can improve their export performance by hiring more experienced managers that would stimulate direct exports. Moreover, they can also export indirectly through intermediaries. Originality/value In contrast to previous studies, the authors used a model proposed by Jørgensen and Schroder (2008) in which the authors endogenized the costs of exporting by linking them to firm and managerial experience. Then, the authors validated empirically the importance of experience for firm export performance, having controlled for the set of individual firm characteristics.
... This model was initially developed by researchers in Sweden [47,48]. The earlier premise of the model was that the firm's internationalization improves over time as the firm increases its exposure to the foreign market by increasing its presence over time and increasing knowledge of the market. ...
Article
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The aim of the study was to assess the integration into regional or global value chains and economic upgrading prospects in the East African Community (EAC) bloc. We conducted a comparative analysis of participation in global value chain (GVC) among EAC member states and assessed the determinants of economic upgrading in the region using UNCTAD-Eora GVC Panel data from 2005 to 2018. The results show that Kenya, Tanzania and Uganda are relatively better integrated through two channels of GVC participation, namely foreign value added (FVA) and domestic value added. However, for indirect-value added channel, Kenya had the highest score, the rest member states had relatively lower mean scores. The overall results show that EAC’s participation in GVC still resides in upstream low- and middle-value-added production activities, which limits its competitiveness compared to other regions. The empirical results show the positive and significant effect of domestic credit, foreign direct investment, quality of institutions and FVA on economic upgrading. However, a positive but insignificant association with economic upgrading was observed for human capital and GDP per capita. Infrastructure quality was negatively and significantly associated with economic upgrading. These results suggest that improving infrastructure connectivity and further strengthening institutional governance would reduce trade costs and promote greater investments, product and service diversification, leading to deeper economic upgrading in the region. At the policy level, the adoption of effective national and regional industrial policies would promote innovation and human capital development, attract foreign direct investment and help address market and coordination deficiencies in the region.
... to the traditional viewpoint of internationalization described in the Uppsala internationalization model, firms have the ability to go into global market, to survive and even thrive only after accumulating market experience in domestic market (Johanson and Wiedersheim-Paul, 1975;Johanson and Vahlne, 1977). However, in contrast to this increased internationalization process, the recent 20 to 30 years witness the rise of a new class of start-ups that span international borders right at birth. ...
... It thus refers to the "process of increasing involvement in international operations" (Welch and Luostarinen 1988, p. 36) as well as a series of events and actions over time (Johanson and Vahlne 1990;Leonidou and Katsikeas 1996), generally developed and realized by the company's leadership (Cotae 2013;Colovic 2021) and the resulting path dependency (Uusitalo and Lavikka 2020). These definitions allude to the very traditional stage model of sequential expansion, i.e. the gradualist approach, according to which firms expand abroad in a slow, incremental way by gathering experiential knowledge and making a subsequent increased commitment to foreign markets (Johanson and Wiedersheim-Paul 1975;Johanson and Vahlne 1977, 2009. McDougall (1994, 2005) argue for emerging international new ventures (INV) to skip stages, even without sufficient experiential knowledge. ...
Chapter
Full-text available
Determining when a company is ready to enter a foreign market is a difficult undertaking. The timing needs to be well considered. On the one hand, developing learning routines necessary for foreign markets and creating sufficient commitment among the staff needs time. On the other hand, older companies tend to be reluctant in their learning ability and act less agile. This article examines the effect of age on the speed and success of internationalizing firms. We also examine different types of perceived impediments in the subsequent internationalization process. A set of hypotheses is developed, drawing on the international new ventures (INV) approach. We test firms’ age at internationalization as a predictor for the speed at which new markets are entered, as well as for subsequent growth in foreign sales while controlling for size, branch, and strategic posture. Relying on longitudinal data from a sample of internationalizing firms from Switzerland, there is evidence of path dependency: The older the firms when they start to internationalize, the slower their subsequent internationalization process. By the same token, we have also observed that firms starting early with their process of internationalization are able to internationalize much faster. This negative impact of age on internationalizing business affects firms not only in the short or medium term, but also in the long term, i.e. over more than 30 years of post-internationalization. Finally, we found evidence that age at internationalization raises the likelihood that the firm will perceive a lack of international experience among its employees and managers as a major impediment for its international success.KeywordsInternationalizationSMEAgeInternational new venturesSuccess
... For instance, how do informal institutions interact with internalization theory (Buckley & Casson, 1976), the Uppsala model of sequential internationalization (Johanson & Wiedersheim-Paul, 1975), the Eclectic paradigm (Dunning, 1980), the product's life cycle theory (Vernon, 1966), network theory (Johanson & Mattsson, 1987), the upper echelons theory (Hambrick, Li, Xin, & Tsui, 2001;Li & Hambrick, 2005), work on born globals (Knight & Cavusgil, 1996;Oviatt & McDougall, 1994), and so on? Examining these relationships could lead to rich theoretical advances and perhaps even breakthroughs in our field. ...
Article
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This editorial introduces the literature on informal institutions and international business (IB) as well as the Special Issue. Informal institutions serve as the invisible threads that connect the fabric of social groupings, making them a critical element in the study of IB, but also especially challenging to capture both theoretically and empirically. As a result, there has been limited work on the topic, a lack of clarity on how to conceptualize and measure informal institutions, and a limited understanding of the role they play in IB. This editorial and Special Issue seek to address these gaps. Specifically, this editorial teases out the definitions of institutions, formal institutions, and informal institutions, and clarifies how they differ from organizations and culture. It then reviews the literature on the three main institutional traditions, explaining for each the role of informal institutions, and connecting them to the IB literature and Special Issue articles. Finally, it identifies gaps and proposes a future research agenda. The goal is to stimulate the academic conversation on the topic by showing how informal institutions are essential in studying international business.
... Internationalizing small and medium enterprises (SMEs) have been an ongoing research focus to try to more clearly depict their internationalization process (Bell et al., 2003), as well as the specific challenges and obstacles they face while expanding across borders (Neupert et al., 2006). The early international business (IB) literature, since Johanson and Wiedersheim-Paul (1975) and Bilkey and Tesar (1977), signaled a major interest in SME internationalization, gathering momentum during the past five decades. It has continued as demonstrated by recent literature reviews (Kahiya, 2018;Paul et al., 2017), which have surveyed a significant number of publications to highlight research streams and future research needs. ...
Article
Although internationalizing small and medium enterprises (SMEs) have been extensively examined, the literature has mainly classified them based on size than on other factors disclosing different international dynamics, their diverse performance records, relevant strategies and support needs/expectations. This study examines internal and external barriers and key success factors of internationalizing companies, using data from 38 in-depth interviews of Australian SMEs conducted between 2016 and 2018. These cases were then categorized, using an inductive approach and text analysis software, along two dimensions of international experience and exposure, and product and/or service uniqueness and innovation. Moreover, internal and external liabilities and assets were diagnosed for each category. The resulting taxonomy, consisting of ‘prominent’, ‘performing’, ‘promising’, and ‘precluded’ sub-groups of SMEs, provides a useful categorization of exporting SMEs elucidating their differentiated needs and priorities. This research highlights that the current ‘catch-all’ category used in research and practice for internationalizing SMEs is not consistent and should instead be unpacked.
... The model emphasizes a gradual and incremental approach to internationalization based on the interplay between cumulative market knowledge and decisions to increase commitment to international markets, with the underlying assumptions of uncertainty, because of the absence of knowledge, and bounded rationality. This approach to internationalization assumes that firms tend to incrementally overcome the psychic distance through gradual learning processes (Johanson and Wiedersheim-Paul, 1975). ...
Article
Purpose This paper aims to provide a wide picture of studies on heuristics for international decision-making with a focus on foreign market entry. This paper systematically reviews studies published in the international business and international marketing domain to examine heuristically based decisions for foreign market entry. Design/methodology/approach This paper proposes a systematic literature review and an in-depth analysis of 32 papers published between 1997 and 2021 dealing with foreign market entry and the use of heuristics for international decision-making. Findings Even if the marketing and management literature is in many ways permeable to the debate around heuristics developed in experimental psychology and cognitive science, international business and international marketing studies on the one hand recognize that international decision-making, especially when dealing with foreign market entry, is strongly characterized by uncertainty, on the other hand, there isn’t a developed and systematized literature about it. This paper shows key topics and areas fundamental to foreign market entry in which heuristics are applied by decision makers and their effectiveness. Originality/value A systematic review of the use of heuristics for foreign market entry decision-making can represent a useful step for a more organic development of knowledge about the more general use of heuristics for international decision-making. Understanding the decision-making process on the modes of entry in foreign markets is a key topic for international marketing and international business scholars and practitioners.
... Turning to speed, utilised the threshold of two to five years posited by Bell et al. (2001) to assess BAGs. The SE theory connotes considerable time lags between firm commencement and first international expansion (Johanson and Wiedersheim-Paul, 1975). ...
Article
Full-text available
Purpose – The aim of the paper is twofold. First, it provides an inclusive categorical framework of internationalisation patterns for small- and medium-sized enterprises, and second, it presents unique evidence from a developing country and corroborates the proposed framework. Design/methodology/approach – A cross-sectional convergent mixed-method design was applied to this research. A phenomenological design was employed to develop the typology framework, and subsequently, practical evidence was collected through a cross-sectional survey using a self-reporting questionnaire. A two-step hierarchical clustering analysis was performed to test the framework's robustness, and a set of characteristics was compared between the patterns via a One-way ANOVA, F-test. Findings – The robustness of the constructed categorical framework of 32 internationalisation patterns is substantiated, suggesting that this framework produces veracious discrimination between all patterns of internationalisation. Evidence revealed that the majority of firms showed regional and incremental internationalising behaviour. No true born globals were observed; however, several other early or fast patterns, such as ‘born-international,’ ‘global new venture,’ and ‘born-again regional’ emerged. Originality/ value – The paper presents a categorical framework and provides evidence of the behaviour of internationalising SMEs from a Middle Eastern developing economy. The categorical framework constructed in this paper employs predefined thresholds, and it is of value because it is inclusive, rigid and incisive. The paper also provides essential insights into the sub-patterns of internationalisation, specifically the born-again and regional phenomenon of internationalisation.
... Regarding stages of time, Johanson and Vahlne (1977) argued that firms internationalize in different stages over time, at any timesuch as evolving from planning to export, then through a tentative export stage to an established export stagewhich exemplifies chronological temporality. Such staged chronology is explicitly presented in the empirical study that led to the formulation of the internationalization process model (Johanson & Wiedersheim-Paul, 1975), later called the Uppsala model. This approach has, however, also been used to frame longitudinal studies based on a historical perception of time (e.g., Amdam, 2009). ...
Article
Full-text available
This study examines the timing of the first foreign direct investment (FDI). It explores how the conceptualization and, hence, the understanding of time affects our insights into major internationalization decisions in organizations; specifically, that of navigating into the unknown waters associated with making a first FDI. We introduce a multitemporal approach by drawing on the different temporalities prevalent in history and in business and management to build a platform for analysis that provides a suitable combination of richness and contrast. By examining the process toward making a major internationalization decision in terms of clock, event, stages, and cyclical concepts of time, we gain valuable but also varied insights about a complex process. We conclude that to understand any organization's process of international strategy formation at a certain point (or period) in time, its particularities need to be appreciated in some detail. While the details in this study are unique to the case of Harvard Business School's decision in 1971 to make its first FDI, we argue that the main features of the process are common to conceptualizing the internationalization decision process. As such, the findings should apply more generally.
... Professor Geert Hofstede [6] defined culture as the collective programming of the mind distinguishing the members of the group or category of people from others. In international business activities, the cultural differences among countries often means increased management difficulty, uncontrolled expected schedule, and additional costs or losses, which are arising by the inconsistency in personal habits, languages, ways of thinking, working attitudes, and so on [7][8][9][10]. In recent years, there are also been some studies suggesting that cultural differences have positive effects in IB [11][12][13]. ...
Article
Full-text available
As an index to measure the cultural differences between countries, culture distance (CD) is a widely used construct in international business and postulated to be symmetric in previous studies. However, CD symmetry across different countries is been demonstrated to result in the national CD paradox. A new asymmetry index utility cultural distance (UCD) is proposed to replace the previous one in this study. The cultural utility function is applied to calculate the UCD for a particular country, where the cultural bias could cause the asymmetric change of cultural score. The index is verified to be a significant variable in the regression analysis of China’s outward foreign directing investment to 17 other countries in 15 years. The UCD demonstrated in this paper corrects the fallacious symmetry assumption on cultural distance and can maintain a consistent and effective conclusion on cultural differences in international business studies.
... Amongst different conceptions of companies' internationalization, Uppsala model is, by far, the most prominent. It has been created by the Uppsala University academics in the 1970s (Johanson, Wiedersheim-Paul, 1975;Johanson, Vahlne, 1977, p. 26) [Limański, Drabik, 2017, pp. 182-183]. ...
Article
Full-text available
In the recent decades, along with the phenomenon of international cooperation growing dynamically and the fast progress in the field of new technologies, there has been a noticeable interpenetration of markets. The result of said changes is the tendency for overcoming or even erasing barriers which leads to connection of domestic markets into a single, global market. This phenomenon is known as internationalization. Nowadays it is one of the most frequently recurring elements of corporate strategies, which is why it is worth taking a closer look at. The process of internationalization is often rather complex, which means it's a multi-stage process. In order to systematize and identify the processes that lead to internationalization, specialized models have been established. These models systematize carried out operations, determine their character and, primarily, shed light on intricate business processes which take place in companies. Therefore, the purpose of this article is to characterize basic internationalization models of small and medium-sized enterprises and relate them to the Uppsala model, which will determine its significance in the process of internationalization.
... However, while the conceptual explanations of foreign market knowledge acquisition have evolved over time, the role of cross-border e-commerce platforms has not yet been considered. The early conceptualizations developed by the Uppsala School emphasized the role of experiential knowledge, which is the knowledge that is gradually obtained only through personal experience in managing foreign operations (Johanson and Vahlne, 1977;Johanson and Wiedersheim-Paul, 1975). On the contrary, subsequent studies found that early and rapidly internationalizing firms that were driven by their entrepreneurial orientation quickly accumulated foreign market knowledge by accessing relationships networks (Casillas et al., 2015;Cavusgil and Knight, 2015;Oviatt and McDougall, 1994;Zhou, 2007). ...
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... Nevertheless, the development aspect of internationalization continues to be a subject of detailed studies (Casson, 2018) argues that those studies are still assuming that internationalization should be built on economies of scale and huge MNCs. The most prominent model, Process Theory of Internationalization (PTI), called the Uppsala model (the U-model), initially was developed by Johanson and Wiedersheim-Paul in 1975 and complemented the model was a continuation of Hymers's analytical approach of firm-specific advantages (FSA), (Rugman, Verbeke, & Yuan, 2011) adopting longitudinal research approach of Nordic companies, containing four different and gradual stages of corporate internationalization: FSAs can be maneuvered via direct export or agencies, as well as employ FDI into wholly-owned subsidiaries or international joint. (Laine & Kock, 2000). ...
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Thesis
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Purpose The paper aims to illuminate the platform created by a cluster organization to facilitate its internationalization and thereby enhance its regional innovation system partners' competitiveness by providing access to global value chains and boosting innovativeness. Design/methodology/approach The study draws upon the interaction approach, focusing on the interaction process, interaction partners, relationship atmosphere, and relationship environment. A qualitative study was conducted at Future Position X, a Swedish cluster organization. A total of 58 interviews were conducted, including 48 face-to-face in-depth interviews between 2017 and 2019 with six key informants at FPX, representatives from 28 SMEs, ten members of regional innovation systems to which FPX belongs, and four process leaders of regional and local networks, in addition to online interviews with ten members of the regional innovation systems conducted via Microsoft Teams in March 2021. The time span of the study provides a longitudinal perspective. Findings The FPX cluster collaborates with actors in the quadruple helix, maintaining a mindset that has led to a number of new partner agreements in the global arena to secure the resources and expertise necessary for cluster activities, and thereby ensuring firms in FPX networks access to platforms for international expansion. Internationalization thus expands the cluster's knowledge base beyond the traditional environment of its member firms. Research limitations/implications Very few innovations arise from the isolated work of a lone genius. Instead, most innovation is achieved through complex, interactive, iterative and cumulative learning processes in which a variety of actors are involved. The FPX cluster organization's internationalization platform is therefore vital to the internationalization of its partners since cluster actors lack the time, resources, knowledge, experience, and networks required to break into international markets singlehandedly. Practical implications This study suggests that, for practitioners and researchers alike, the growing importance and relevance of the regional innovation system cannot be overemphasized. It also holds policy and societal implications in that FPX's global network helps regional SMEs to internationalize, in addition to inspiring international firms to establish operations in the Gävleborg region, thereby helping to strengthen the overall GIS environment. Internationalization also expands the FPX cluster's knowledge base beyond the traditional environment of its firms, an example of this being the construction start of a Microsoft data centre in the region in 2020. Social implications FPX is financed through taxation and grant funding. By initiating projects, creating relationships and building collaborations, FPX thus contributes to collaboration between business, academia and the public sector. FPX also contributes to knowledge development of new technology by creating meeting places and networks around digital issues, such as GIS, AI, the IoT and blockchain technology. Originality/value While earlier research has concentrated on endogenous gaps critical to cluster dynamics, comparatively little attention has been paid to exogenous gaps, i.e. linkages between regional clusters and innovation partners elsewhere in the world. This study showcases the richness of interactions in the cluster against the background of wider, global innovation interactions. Future research should examine other vital questions that remain unanswered, e.g. by measuring and exploring the extent to which regional innovation systems can contribute to long-term economic growth for society.
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