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European
Marketing Opinion
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Volume 8 Number 6 November 1980
Validity of conjoint analysis:
some real market results 243
Max Blackston and Nico van der Zanden
Trade-off analysis
applied to educational
choice behaviour 251
KALe Claire
The design factor
- an underu tilised concept
R E Koerner
E.S.O.M.A.H. Calendar 272
On the internationalisation
process of firms 273
STamer Cavusgil
Prognos economic outlook: 282
The chances of economic
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On the
!in ternationalisation
process of firn1s
.
5 Tamer Cavusgil
The internationalisation process, or the process by which firms adopt
international business activities has received significant research
attention recently. Drawing from the findings of various empirical
studies con<;jucted in several industrialised countrjes, the author
develops a conceptualisation of a firm's initial involvement in
international marketing activities.
Initial involvement in international marketing is conceived as a
gradual and sequential process. Such a pattern is thought to be the
consequence of greater uncertainty, higher costs of information and
the lack of experiential knowledge in foreign marketing activities;
Several distinct stages are identified along the internationalisation
process: domestic marketing; pre-export stage; experimental
involvement; active involvement; and committed involvement.
Those internal and external variables which determine the firm's
progression from one stage to another, as well as the critical
activities unique to each of the stages, are also discussed in this
article. Finally, a number of implications are offered for future
research and public policy concerning the stimulation of international
marketing activities.
An earlier version of this paper was presented at the American
Marketing Association's Marketing Theory Conference in Phoenix,
Arizona, February 1980.
Background ing academicians have exhibited an
The growing importance of inter- ethnocentric behaviour in their
national marketing has created a interests; they have been pre-
greater need for conceptual frame- occupied largely with domestic
works to guide practice and public marketing.
policy programs (14). Despite the Conceptualisations in interna-
greater need, conceptualisations tional marketing have lagged behind
and theory development in inter- despite the fact that limited but
national marketing have been significant empirical research has
scarce (20). Wind (27) has described been conducted in the area. Several
international marketing as an area in aspects of international business
which empirical work by practition- activities have been empirically in-
ers is often more advanced and vestigated by researchers. Aharoni
insightful than academic contribu- (1) and Richardson (18). for exam-
tions. It can be argued that market- pie, have investigated foreign in-~
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European Research November 1~
Ir
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I
vestment decisions; Torneden (22)
has studied foreign divestment deci-
sions; Truit (23) researched expro-
priation decisions; Franko (10) ex-
plored joint-venture decisions; and a
larger number of investigators have
studied export marketing decisions.
For a review of the empirical works
on the export behaviour of firms the
reader may be referred to Bilkey (3)
or Cavusgil and Nevin (8).
The primary objective of this
paper is to offer and present support
for a comprehensive conceptualisa-
tion of firms' initial involvement pro-
cess in international marketing.
Typically, this involvement is in the
form of exporting. Export marketing
is usually considered to be a first
step in the process of internationali-
sation. Thus, the formulation that is
presented attempts to give an
account of how firms adopt export-
ing activity. This formulation is
thought to apply to other forms of
involvement as well. Specifically,
the discussion focuses on the
following questions: how can the
internationalisation process be
characterised? What are the stages
in this process? What are the deter-
minants of this process? What are
the implications of the conceptuali-
sation for public policy and future
research? Hopefully, the discussion
will provide a framework by which
existing empirical work can be
better evaluated and integrated. In
addition, it is expected to facilitate
hypothesis formulation in future
investigations, and help clarify
public policy options in the area of
export stimulation.
The internationalisation process:
significant findings
An examination of the pertinent
literature on the initial involvement
of firms in international marketing
reveals three major conclusions.
Perhaps the most important conclu-
sion that can be reached is that such
involvement is a gradual process,
taking place in incremental stages,
and over a relatively long period of
m
time. In their observations of
Swedish firms, Johanson and Wie-
dersheim-Paul (11) noted that the
prevailing pattern is a gradual inter-
nationalisation, rather than large,
spectacular investments. The
authors traced the complete inter-
nationalisation process for Sandvik,
Atlas Copco, Facit and Volvo. Each
stage in the process represented
successively larger resource com-
mitments and also led to quite
different market experiences and
information for the firm. In studying
Australian firms, Welch and Wie-
dersheim-Paul (25) also stressed the
sequential nature of the export
development process. They charac-
terised it as "a multi-stage set of
activities, with a high degree of
diversity" (25, p 167). Firms typic-
ally avoided making large commit-
ments to international markets and
resource allocation proceeded in an
incremental manner.
In a recent article, Johanson and
Vahlne (12) reinforce the belief that
the internationalisation process re-
presents firms' "gradual acquisition,
integration, and use of knowledge
about foreign markets and opera-
tions, and on its successively in-
creasing commitment to foreign
markets" (12, p 23). The authors
argue that this is the consequence
of a process of incremental adjust-
ments to changing conditions of the
firm and its environment, rather
than the result of deliberate stra-
tegy. Absence of prior experience,
lack of adequate market information
and associated uncertainty in
foreign marketing are the causes of
the incremental decision making.
Market uncertainty associated with
a commitment can be "reduced
through increases in interaction and
integration with the market environ-
ment-steps such as increases in
communication with customers,
establishment of new service activi-
ties or, in the extreme case, the
takeover of customers" (12, p 29).
Bilkey and Tesar (3) proposed a
'staff model for examining export
274
would fill an unsolicited export order
in Stage Two; actively explores
feasibility of exporting in Stage
Three; and so on. They related each
stage empirically to a number of
determining characteristics, con-
cluding that the considerations that
influence firms' progressions from
one stage to the next differed by
stage. Independent investigations at
the US Department of Commerce
(24) also confirm a gradual involve-
ment hypothesis. In particular, firms
are thought to progress through an
'exporting pipeline'. A firm first
becomes motivated to export; then
decides how and where to export;
devotes manpower and resources to
marketing efforts, and so on.
The second conclusion that can
be reached is that the initial involve-
ment in international marketing can
be regarded as an innovation within
the closed environment of the firm.
In a pioneering study, Simmonds
and Smith (21) approached the initi-
ation of exporting in the context of
innovations. "Entry into an export
market is just as much an innova-
tion as the adoption of a new pro-
duction process, for example, so
there is every reason to suspect that
many of the findings concerning
other types of innovation will apply
to it" (21, P 94). The first export
order was taken as the evidence of
innovation in the nine British firms
that were investigated. Their re-
search concentrated on tracing this
first order and identifying the situa-
tion leading up to it and the char-
acteristics of the persons involved.
It was hypothesised, first. that the
entry into exporting would be
explainable in terms of conditions,
persons, or happenings within the
firm. This hypothesis was not
supported, as the authors found
that an external stimulus was re-
sponsible for the first export order.
Secondly, it was expected that the
innovation would be traceable to
one innovator who would have
distinguishable characteristics. The
investigation revealed that the
STamer Cavusgil is Assistant
Professor of Marketing, University
of Wisconsin- Whitewater, White-
water, Wisconsin, USA. He re-
ceived his MBA and PhD degrees
from the University of Wisconsin-
Madison. Previously, Dr Cavusgil
has taught marketing at the Middle
East Technical University in Ankara.
His research and teaching interests
are in the areas of international
marketing, quantitative applications
in marketing and consumer beha-
viour. His articles appear in several
journals, including the Journal of
International Business Studies,
Studies in Development, Journal of
Marketing Research and proceed-
ings of the American Marketing
Association, Midwest Marketing
Association, Academy of Interna-
tional Business, European Academy
for Advanced Research in Market-
ing, Administrative Science
Association of Canada and others.
behaviour. The main thrust of their
argument is that the export develop-
ment process of firms occurs in
stages. Management is not inte-
rested in exporting in Stage One;
innovators in the firm travelled
widely, and possessed an attitude of
almost complete unconcern for
national boundaries where business
was conducted. The authors called
this attitude a 'Supra-national
outlook'. The innovating exporters
were also found to be aggressive
and competitive. They possessed a
great degree of risk tolerance, and
emphasised expansion and growth.
The third conclusion is that many
firms appear to 'move ahead' with
exporting without much rational
analysis or deliberate planning. In an
investigation of Nebraska-based
small manufacturing firms, Lee and
Brasch (16) found that most new
exporters followed a 'non rational
decision process'. They did not
consult with expert authorities or
collect much information, and they
had only vague justifications for
I
FIGURE 1 Stages in the internationalisation process of the firm
These INTERNAL AND EXTERNAL
VARIABLES help explain why a firm
may engage in a...
Inhibiting firm characteristics
External stimuli
Unsolicited orders
Change agents
Internal stimuli
Differential advantages and
conducive characteristics
Decision-maker characteristics
International orientation
Perceptions regarding
attractiveness of international
marketing activity
Experience- based expectations
Availability of key resources
Willingness to commit resources
Marketing performance
Performance in overcoming Barriers
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European Research November 198>
getting themselves involved in ex-
porting. The authors attribute this
result to the difficulty of calculating
economic benefits of exporting, the
naive acceptance of the assertions
that "the market is out there" and
the lack of sophisticated informa-
tion, planning and control systems
in these small companies. Lee and
Brasch also examined whether the
export adoption process would be
initiated by problem perception or
by awareness of the innovation.
They concluded that the innovation-
oriented adoption process was more
common among export adopting
firms than problem-oriented adop-
tion process. That is, the. initiating
force is either precise knowledge of
the existence of a market oppor-
tunity or gaining technical know-
ledge of exporting rather than the
problems which the firm may be
facing.
A conceptualisation of
the internationalisation process
The proposed conceptualisation of
the initial involvement of firms in
international marketing is illustrated
in Figure 1 . This conceptualisation is
in harmony with the important find-
ing that this involvement is best
understood in the context of a pro-
cess, taking place as a result of
successive decisions made by man-
agement over a period of time,
usually over several years. It identi-
fies several distinguishable stages
during the process. These stages,
as well as the determinants of these
stages, can be measured empirically
(eg 8). A brief discussion of the con-
ceptualisation will now be offered,
followed by its implications for
future research and public policy.
CRITICAL ACTIVITY
which is unique to various... STAGES
DOMESTIC MARKETING
PRE-EXPORT STAGE
Preoccupation with the home
market
Deliberate search for information
and preliminary evaluation of the
feasibility of undertaking
international marketing activity
EXPERIMENTAL
INVOLVEMENT
Initiation of limited international
marketing activity
Systematic exploration of
expanding international
marketing activity
Resource allocation based on
international opportunities
ACTIVE INVOLVEMENT
COMMITTED
INVOLVEMENT
275
~
-,~~-- ---,-""-"",.",.."""",,,...,,..".'C"C
experience. Thus, there is fre-
quently a need to seek information
outside the firm. This search for in-
formation tends to be limited, how-
ever, because of the uncertainty
associated with anticipated benefits
find managements engaging in only
a crude cost-benefit analysis at this
stage. Decision-making in this
phase appears to be based, essen-
tially, on management's diffuse
impressions of the attractiveness of
well-known and similar in business
practices. Johanson et al (13)
introduced the concept of psychic
distance as a variable measuring the
degree of uncertainty and the cost
of information in international deci-
sions. Carlson (4) prefers to use the
term 'cultural distance' as an
expression of those factors that
create differences in market condi-
tions and difficulties in acquiring
information about these differ-
ences. Psychic or cultural distance
is proposed to be a function of the
differences between any two coun-
tries in terms of their level of
development, the level of educa-
tion, business and everyday lan-
guages, cultural differences and the
extent of commercial connections
(13, p 35). Empirical investigations
carried out at the Centre of Interna-
tional Business Studies of Uppsala
University (4) have confirmed that
psychic distance is quite helpful in
explaining the internationalisation
patterns of firms. In addition, it was
found that firms which produced
technology-intensive products and
smaller firms were more influenced
by cultural distance in their interna-
tionalisation process (4, p 19).
ACTIVE INVOLVEMENT STAGE
In time, some firms may progress to
the stage of active involvement in
international marketing. Active in-
volvement may come in the form of
exporting to new foreign markets,
expanding the volume of exports, or
exporting directly, if the firm has not
been doing so previously. In carry-
ing out anyone of these strategies,
many tasks-which are new to the
firm-will be undertaken. Perhaps
the most unique activity at this
stage is a systematic exploration of
a large number of foreign market
opportunities. Prospective markets
are screened out and potentials are
assessed. In addition, buyer and
legal requirements must be esta-
blished and dealers will have to be
located in international markets.
These tasks and the greater need for
European Research November 1~
,
,
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,
Thus, the expectations formed and
the familiarity gained become
significant inputs into further
decision making.
The second determinant of the
firm's progression into active in-
volvement is the ease of access to
key resources necessary for under-
taking additional tasks at this stage.
The availability of physical, finan-
cial, the managerial resources is
closely associated with firm size. In
addition to limited financial re-
sources, smaller firms do have a
number of disadvantages. Absence
of trained middle managers, pre-
occupation with day-to-day operat-
ing problems and lack of time for
long-term planning are notable.
Thus, smaller firms encounter signi-
ficant obstacles in progressing to
the stage of active involvement.
The third determinant of the
active involvement stage is the
management's willingness to com-
mit adequate resources to new acti-
vities. The existence of a suitable
organisational structure within the
firm to handle exploration activities
is one indicator of the
management's willingness to allo-
cate resources for expanded in-
volvement in international market-
ing. Some firms assign a new
department or personnel to such
activities while others employ
domestic marketing staff. The rela-
tive status of the separate organisa-
tional unit or personnel within the
organisational reflects the relative
significance attached to foreign
marketing. Whether or not direct
responsibility for international
marketing is placed in the hands of a
senior executive who has both the
ability and authority to exercise real
influence on overall policy matters is
critical. Yet another aspect of the
allocation process is the emphasis
placed on personal visits to overseas
markets. Research indicates that
executive trips to foreign markets
serve as the primary source of
information product decisions and
assessment of risks and are also
information place considerable
demands on the resources of the
firm.
Whether or not these demands
will be met-and the firm will pro-
gress to the active involvement
stage-will depend upon: (1) the
favourability of experience-based
expectations of management con-
cerning exporting; (2) the avail-
ability of key firm resources for
undertaking the necessary activities
unique to this stage; and (3) the will-
ingness of management to allocate
such resources.
A major determinant of active in-
volvement in international market-
ing is the management's experience-
based expectations of the attrac-
tiveness of exporting for the firm.
There is no longer any need to rely
on diffuse impressions. Manage-
ment now has an information base
which has been acquired as a result
of its own (experimental) experience
in exporting. Johanson and Vahlne
(12) label this element experiential
knowledge:
"We believe that this experiential
knowledge is the critical kind of
knowledge in the present context. It
is critical because it cannot be so
easily acquired as objective know-
ledge. In domestic operations, we
can to a large extent rely on lifelong
basic experiences to which we can
add the specific experiences of indi-
viduals, organizations and markets.
In foreign operations, however, we
have no such basic experiential
knowledge to start with. It must be
gained successively during the
operations in the country...
"An important aspect of
experiential knowledge is that it pro-
vides the framework for perceiving
and formulating opportunities. On
the basis of objective market know-
ledge it is possible to formulate only
theoretical opportunities; experien-
tial knowledge makes it possible to
perceive 'concrete' oppor-
tunities - to have a 'feeling' about
how they fit into the present and
future activities" (12, p 28).
217
helpful in the actual processes of critic~1 .for a comm!tted exp~r~er process may continue with form.s of
sales negotiations and customer who IS likely to act with an expllclty Involvement other than exporting.
liaison (5). objective of maintaining long-term Many firms continue the process by
presence in selected markets rather engaging in licensing arrangements,
COMMITTED INVOLVEMENT than an experimental exporter who establishing overseas sales
STAGE places greater emphasis on short- branches and, eventually, building
The next stage in the internationali- term returns on export sales. production ~acilities in foreign
sation process may be characterised The long-run commitment of the markets. Insightful accounts of
as the firm's transition into the posi- firm to international marketing will these latter types of involvement are
tion of committed participant in in- also be dependent upon how suc- found elsewhere (see eg 1, 17, 18).
ternational marketing. In the long cessful management is in over- Recently, considerable research has
run, the management finds itself in coming various barriers encoun- focused on the foreign investment
a position of constantly making tered in international activities. process, as involvement in terms of
choices in allocating limited resour- These impediments can be distin- direct investments has shown
ces between domestic and foreign guished from those that are con- remarkable growth. Initial involve-
markets. The long-term posture of fronted by the firm early in the inter- ment in international marketing,
the firm will be dependent upon nationalisation process. A firm is however, which usually appears in
how well management performs in then concerned primarily with the form of exporting and licensing,
terms of planning and executing the searching, locating and evaluating continues to permeate the majority
marketing mix as well as how well potential markets, and acquiring of developed-country firms which
various impediments in international experience in how to jnitiate export- participate in international business.
marketing are overcome. In addi- ing activities. An. experienced
tion, the three determinants of the exporter, on the. other hand, Conclusions and implications
previous stage will continue to encounters continuing difficulties in Marketing of goods and services
affect the long-term commitment of maintaining and expanding export beyond the home market is a dis-
firms to international marketing. involvement. Import/export restric- tinct alternative for the firm as a
Competence in managing the tions, cost and availability of ship- means of accomplishing the organi-
elements of the marketing mix is a ping, exchange rate fluctuations, sational goals of growth, profits and
major determinant of the firm's collection of money and expansion market diversification. Admittedly,
long-run performance and commit- of distribution are examples of this this avenue is not open to all firms.
ment to international marketing. On type (5). An extensive survey Some necessary conditions, such as
the whole, entry and survival in conducted by the US Department the possession of a unique or com-
foreign markets are more risky and of Commerce (24) also revealed that petitively priced product, have to be
difficult than operating in domestic specific marketing intelligence satisfied before a firm can profitably
markets. In the presence of greater (sales leads) and opportunities to exploit this alternative. Further-
uncertainty and stakes, careful meet face-to-face with potential more, risks and uncertainty encoun-
manipulation of each aspect of the foreign customers are specified by tered in international marketing are
mix becomes necessary. Empirical exporting firms as primary on-going greater. However, more and more
research suggests that the following needs. firms are looking into the possibility
elements are especially critical in The firm's marketing effective- of utilising this growth alternative in
international operations: quality and ness and its success in overcoming order to take advantage of attractive
design of the products and packag- various impediments, along with the marketing opportunities abroad and
ing for foreign markets; develop- determinants of the earlier stage, to relieve themselves from the con-
rnent of distribution channels; com- will affect its long-run standing with sequences of unfavourable develop-
petitive pricing; and extension of respect to international activities. If ments at home, including growing
credit (5). Apparently, these tasks the firm does not perform well in competitive pressures.
are the most bothersome in inter- accomplishing its profit, growth, The conceptualisation offered in
national marketing-as exemplified and diversification objectives this paper of firms' initial involve-
by product adaptation, greater through its involvement, it may ment in international marketing
control over distribution and a choose to return to an intermittent rests on the central assumption that
deliberate effort to enhance type of exporting activity or drop all managements approach interna-
customer satisfaction - has been international marketing activities. If, tional marketing decisions in stages.
found to be as valuable as in however, participation of the firm in A number of successive phases are
domestic marketing (5, 19). Such an international marketing has been identified along the internationalisa-
orientation would especially be beneficial, the internationalisation tion continuum. The incremental
278
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nature of the decision-making pro-
cess may reflect a cautious attitude
on the part of managements to-
wards international marketing. The
other explanation is, of course, the
greater need for information and
'experiential knowledge' in interna-
tional marketing and the greater
costs of obtaining information. Con-
sequently, managements become
especially sensitive to the risks in-
volved. Commitments are made
gradually, as more information and
experience are acquired along the
way. Furthermore, international
marketing decisions appear to be
nonprogrammed. Questions of stra-
tegy arise in a highly unstructured
form, especially early in the process.
The essentially behavioural nature
of the explanatory variables in
Figure 1 is also notable. The con-,
ceptualisation attributes the pre-
sence and degree of involvement in
international marketing to personal
evaluations of decision makers,
their subjective expectations and
managerial aspirations, among
others. The empirical studies clearly
suggest that the behavioural vari-
ables, along with individual firm
characteristics, are especially useful
in explaining firm-to-firm variation in
export behaviour (8). External vari-
ables such as international market-
ing impediments and macro-level
variables such as exchange rates,
on the other hand, can be expected
to be more useful in explaining
aggregate behaviour, As such, the
conceptualisation is in agreement
with the behavioural theory of the
firm (9) and the empirical investiga-
tions of international business
decisions. It also represents a clear
departure from classical economic
theory. The internationalisation
process does not appear to be a se-
quence of deliberate, planned steps,
beginning with a clearly defined
problem and proceeding through a
rational analysis of behavioural
alternatives. Personal characteris-
tics of the decision makers lack of
information, perception of risk and
I
i
PUBLIC POLICY IMPLICATIONS
The conceptualisation of the firm's
internationalisation process also
raises some public policy questions
concerning the stimulation of firms
in exporting activities:
1 How can the firms in varying
stages of involvement be identified?
It can be concluded that detailed
European Research November 1!B) 279
presence of uncertainty seem to be
especially valuable in understanding
firms' involvement in int~rnational
marketing (1, 22).
profiles can be prepared for firms at
different stages of involvement.
These profiles can be based on
organisational and decision-maker
characteristics, as well as opera-
tional characteristics such as the
percent of output exported. One
such profiling effort is reported in
Cavusgil, Bilkey, Tesar (6).
2 What types of firms should be
targeted for export stimulation and
promotion by governmental agen-
cies? The findings of a major study
conducted by the U S Department
of Commerce (24) are helpful for de-
riving conclusions concerning the
United States economy. This study
concluded that: (a) smaller, less-
experienced firms generally need
more help in exporting than large,
established exporters; (b) govern-
mental services are better able to
meet the needs of smaller firms that
cannot afford the higher costs of
private-sector services; and (c)
larger firms' needs for assistance
appear to be well-met by private-
sector sources or through their own
contacts abroad. It appears that the
public-sector assistance should be
focused on firms which are in the
earlier stages of their internationali-
sation, especially if the intent is to
develop a wide exporting base in the
economy.
3 What types of programmes
would be most appropriate in reach-
ing and serving the particular needs
of firms? Needs at each stage of the
internationsation process are
expected to be different (7). Since
different firms are at different
stages, export assistance pro-
grammes should take into account
their unique needs at that stage
(25). For a firm which is indifferent
to exporting, various motivational
programmes may be appropriate.
Information on the benefits of
exporting or case histories of suc-
cessful exporters are examples. An
experimental exporter typically
needs extensive information on how
and where to export. Hence, pro-
grammes that are designed to
RESEARCH IMPLICATIONS
A number of implications for future
research can be offered. First, the
characterisation of the involvement
as a process implies that long-
itudinal investigations of inter-
national marketing decision-making
may especially be appropriate.
Cross-sectional studies of firms can-
not delve into the dynamic nature of
decision-making. Second, future
investigations should take account
of the observation that different
firms will be at different points along
the internationalisation process. It is
also reasonable to expect that
different firms will travel this route
at varying paces. Findings promise
to be more fruitful and reliable if the
investigator attempts to construct
his/her sample of firms as homo-
geneouslyas possible. The typology
suggested in this paper- domestic
marketing, pre-export, experimental
involvement, active involvement
and committed involvement-may
be useful in this respect. The con-
ceptualisation lends itself nicely to
future validation studies. It identifies
specific determinants to be related
to each stage of the internation-
alisation process. Suggestions for
deriving operational definitions of
variables can be found in Cavusgil
and Nevin (8), Bilkey and Tesar (3)
or Reffait and Roux (19). Inferences
as to the nature of causal relation-
ships among the determinants can
also be found in Cavusgil and Nevin
(8).
inform the firms as to where to go
for export assistance; where the
best markets are for their products;
and who the most promising buyers
and distributors are may be valu-
able. Active exporters, on the other
hand, suffer from operational and
resource limitations. Specific sales
and representation leads for their
products abroad and assistance in
making successful bids for overseas
export contracts may be considered
for them. Finally, committed
exporters need to struggle with a
number of foreign competitive
factors and buyer resistance.
Creating opportunities for these
firms to publicise, advertise and
exhibit their products abroad and
for meeting directly with foreign
buyers and representatives are
especially appropriate.
References
1 Aharoni, Yair (1966) The
Foreign Investment Decision
Process Boston: Harvard Graduate
School of Business Adminstration
2 Bilkey, Warren J (1978) 'An
attempted integration of the
literature on the export behavior of
firms' Journal of International
Business Studies Spring/Summer,
pp 33-46,
3 Bilkey Warren J and George
Tesar (1978) 'The export behavior
of smaller sized Wisconsin
manufacturing firms' Journal of
International Business Studies
Spring, pp93-98
4 Carlson, Sune (1975) How
Foreign Is Foreign Trade? A
Problem in International Business
Research Acta Universitatis
Upsaliensis, Studia Oeconomiae
Negotiorum, No 11, Uppsala
5 Cavusgil, STamer (19761
'Organizational Determinants of
firms' export behavior: an empirical
analysis', Unpublished PhD
dissertation, University of
Wisconsin-Madison
6 Cavusgil, STamer, Warren
Bilkey and G Tesar (1979) 'A note
on the export behavior of firms:
28)
r
exporter profiles' Journal of
International Business Studies 10
Spring/Summer, pp 91-97
7 Cavusgil, S Tamer, Jacob D
Moose and G Tesar (1979) 'Recent
empirical investigations of firms'
export behavior: Implications for
export stimulation and promotion
policies'. Paper presented at the
Annual Meeting of the Academy
of Internation Business, Las
Vegas, Nevada, June
8 Cavusgil, S Tamer and John R
Nevin (forthcoming) 'Internal
determinants of expo~ marketing
behavior: and empirical
investigation' Journal of Marketing
Research
9 Cyert, Richard M and James G
March (1963) A Behavioral Theory
of the Firm Englewood Cliffs, NJ:
Prentice-Hall, Inc
10 Franko, L G (1971) Joint
Venture Survival in Multinational
Corporation New York: PFaeger
11 Johanson, J and F
Wiedersheim-Paul (1975) 'The
internationlization of the firm -
four Swedish case studies' The
Journal of Management Studies
October, pp 305-322
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(1977) The internationalization
process of the firm: a model of
knowledge development and
increasing foreign commitments'
Journal of International Business
Studies Spring/Summer, pp 23-32
13 Johanson, Jan Lars-Gunnar
Mattsson, Peter Sanden and Jan-
Erik Vahlne (1976) 'The role of
knowledge in the
internationalization of business'.
Reprint from Faculty of Social
Sciences at Uppsala University,
Uppsala
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conceptual framework for
multinational marketing' Columbia
Journal of World Business
November-December, pp 67-76
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'Neglected export opportunities
and the profit-maximizing
assumption' Behavioral Science
October, pp 317-323
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Brasch (1978) 'The adoption of
export as an innovative strategy'
Journal of International Business
Studies Spring/Summer, pp 85-104
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and J C Thurwell (1978) Going
International- The Experience of
Smaller Companies Overseas New
York: John Wiley & Sons
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"On going abroad: the firm's initial
foreign investment decision'
Quarterly Review of Economics
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Roux (1979) 'Correlates of small
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Kurzfassung
Der Internationalisierungsprozef!.
oder der ProzeB. in dem Firmen sich
geschaftliche Aktifitaten auf inter-
nationalem Boden zu eigen mac-
hen. hat in jungster Zeit bedeutende
Aufmerksamkeit van der Forschung
erfahren. Der Autor faBt die Ergeb-
nisse verschiedener empirischer
Untersuchungen zusammen. die in
einigen industrialisierten Landern
durchgefuhrt worden sind. und
entwickelt ein Konzept fur den
Initialeinstief einer Firma in inter-
nationale Marketingaktivitaten.
Der Initialeinstieg ins interna-
tionale Marketing wird a's ein gra-
dueller und schrittweiser ProzeB
gesehen. Dies wird als Ergebnis
groBerer Unsicherheit. hoherer
Informationskosten und Abwesen-
heit selbsterfahrenen Wissens uber
Marketingaktivitaten im Ausland
angesehen. Verschiedene abgrenz-
bare Abschnittsstufen auf dem Weg
zur Internationalisierung werden
identifiziert: Marketing im Inland.
Export-Vorstufe. Einstief auf experi-
men teller Basis, aktiver Einstieg.
European Research November 1~
de marketing international est
reconnue en tant que processus
graduel et sequentiel. Ce genre de
modele est extime resulter de
I' ampleur des incertitudes, du coat
important du secteur d'information,
et du manque de connaissances
experimentals au niveau des
activites du marketing a I'etranger.
Plusieurs stades distincts sont
identifies durant Ie developpement
du processus d'internationalisation:
marketing au niveau domestique;
stade precedent I'exportation; impli-
cation au niveau experimental;
implication au niveau actif; et enfin
participation a part entiere. Ces
variables internes et externes qui
determinent Ie passage de la societe
en question d'un stade au stade
suivant, ainsi que les activites
critiques propre a chacun de ces
stades, sont developpees dans Ie
present article. Pour terminer, un
certain nombre de conclusions
implicites sont mises a la disposition
de futurs travaux de recherche et
politique publique avant trait a la
stimulation des activites de
marketing international.
Une version anticipee de cet
expose fat presentee lors de Ia
conference traitant des theories de
marketing, qui s'est tenue a
Phoenix, Arizona, courant fevrier
1980, sours les auspices de
I' American Marketing Association.
und vollverbindlicher Einstieg. Die
inneren und au~eren Variablen,
welche die Schritte einer Firma yon
einer Abschnittsstufe zur anderen
determinieren, werden behandelt,
wie auch die kritischen Punkte in
den Aktivitaten, die jeder Stufe
eigen sind. Zum AbschluB werden
einige Implikationen fur zukunftige
Forschung und fur den politischen
Bereich angeboten in Bezug darauf,
internationale Marketingaktivitaten
zu stimulieren.
Eine frGhere Fassung dieses Auf-
satzes wurde auf der Marketing-
Theorie-Konferenz der American
Marketing Association in Phoenix,
Arizona, im Februar 1980 vorge-
tragen.
Sommaire
Le processus d'internationalisation,
c'est-~-dire Ie processus en fonction
duquelles societes s'engagent dans
des activites professionnelles au
niveau international vient tout
recemment de faire I 'objet de
travaux de recherches significatifs.
S'inspirant des decouvertes
obtenues ~ la suite de diverses
etudes empiriques menees dans
plusieurs pays industrialises,
I'auteur developpe une concep-
tualisation des premiers pas d'une
societe au niveau des activites de
marketing interhational
La participation initiale au niveau
281
... 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
Full-text available
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.
... Although understanding innovation in the context of the current changing industrial landscape in the age of digitalisation has become cumbersome, and poses serious challenges for traditional internationalisation models (Cavusgil, 1980;Bilkey and Tesar, 1977;Leonidou and Katsikeas, 1996;Dunning, 2000;Johanson and Vahlne, 1977, 1990, 2009, the central tenets of the model remain organisational investment behaviour and how organisations learn (Forsgren, 2002). For manufacturing companies, the internationalisation process, which can be started early, is fundamental to their business development (Matthyssens et al., 2008;Osarenkhoe, 2009). ...
... The internationalization process can be described as a gradual development taking place in distinct stages (Melin, 1992). _________________________________________________________________________________________________________________________________________________________________ The international process can be clearly identified under two major schools: the models initially developed by Johanson and Wiedersheim-Paul (1975) and Johanson and Vahlne (1977), referred to as Uppsala models (U-models) and the Innovation-Related internationalization models (I-models) conceptualized by Cavusgil (1980). Both the I-models as well as the U-models emphasize on firm´s involvement in foreign market segments, both of the models view internationalization as a gradual incremental process. ...
... 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
Full-text available
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.
... Although understanding innovation in the context of the current changing industrial landscape in the age of digitalisation has become cumbersome, and poses serious challenges for traditional internationalisation models (Cavusgil, 1980;Bilkey and Tesar, 1977;Leonidou and Katsikeas, 1996;Dunning, 2000;Johanson and Vahlne, 1977, 1990, 2009, the central tenets of the model remain organisational investment behaviour and how organisations learn (Forsgren, 2002). For manufacturing companies, the internationalisation process, which can be started early, is fundamental to their business development (Matthyssens et al., 2008;Osarenkhoe, 2009). ...
... The stage approach centres around the gradual expansion of a firm's activities abroad and it affirms with empirical evidence the incremental internationalization of relatively small firms. The most popular models that fall into this approach are the Uppsala model (15-17) and I-model (18)(19)(20)(21). ...
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.
... 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.
... A rising number of studies explore the relationship between firms' globalization and managers' characteristics, a key intangible asset of firms (Cavusgil, 1980;Aaby and Slater, 1989;Zou and Stan, 1998;Westhead et al., 2001). McDougall et al. (1994) stated that the critical factor that makes born global firms to start internationalization right after their establishment is because they possess founders or managerial teams which have special internationalization capability and experience. ...
Article
This article consists of five complementary parts. The Introduction portrays the increasing challenges of entrepreneurial internationalization encountered by smaller and younger firms facing highly competitive, difficult, and near-crisis environments. The literature review of the extant internationalization theories, in five related streams, will examine each stream’s benefits, contribution, and difficulties from the evolving perspective of an internationalizing enterprise over the span of its life-cycle, ranging from embryonic to growth and maturing stages. Based on the current and prevailing experience, a longitudinally integrated internationalization framework addressing different aspects evolving over the firm’s life-cycle stages is proposed and its necessary building blocks are discussed. A critical examination of the framework from the perspectives of both the received theory and ongoing practice points to its advantages and opportunity for further complementary scholarly developments beyond this article.
Book
Full-text available
Small and medium enterprises (SMEs) are increasingly viewed as valuable contributors to the global economy, which translates into their importance in business literature and academic research. Recent studies suggest that there exists a substantial variety of international activities pursued by SMEs expanding abroad, with a prominent presence of early internationalised enterprises, including born global. Despite the acknowledgement of the importance of human capital for SME internationalisation, there is a persistent knowledge gap concerning HR practices in this context. Until now, researchers investigating the accelerated internationalisation of SMEs have focused either on the human capital of decision-makers or selected attributes of employees, although these have only been at the pre-entry or entry stages. Thus, activities performed after entering foreign markets remain. This book attempts to reduce this gap and contribute to the body of knowledge concerning HR practices in early internationalised SMEs with an emphasis on the post-entry phase. By taking such an approach, this volume integrates two streams of research: HRM in the SMEs and international business. It provides managers of SMEs with useful information on dealing with internationalisation-related challenges by means of various practices including work structuring, recruitment and selection, training and development, employee appraisal and remuneration, and performance management. The discussion of these issues is based upon data from a survey conducted in 200 SMEs and case studies exemplifying HR practices in early internationalised small and medium enterprises. It offers academic researchers, postgraduate students, and reflective practitioners a state-of-the-art overview of managing human resources in small and medium enterprises expanding internationally, including both accelerated and incremental paths www.routledge.com/9781032335186