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Open Access
Article
Publication date: 28 June 2022

Aihie Osarenkhoe and Daniella Fjellström

The paper aims to illuminate the platform created by a cluster organization to facilitate its internationalization and thereby enhance its regional innovation system partners'…

1506

Abstract

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.

Article
Publication date: 20 May 2024

Gladys Ndunge Mutinda, Castro Gichuki, Zhimin Liu and Xue Shan

The converging global trends for countries and educational institutions is to push the boundaries of science and develop new technologies through the application of…

Abstract

Purpose

The converging global trends for countries and educational institutions is to push the boundaries of science and develop new technologies through the application of internationalization strategies. However, the extent to which higher education institutions (HEIs) participate and apply internationalization strategies in higher education (IOHE) varies by institution and region.

Design/methodology/approach

The study employed the multi-level ordinal regression to estimate how various factors influence the rationales to internationalize higher education.

Findings

The study revealed that the salience of HEIs choice of a specific rationale for the IOHE stems from either the academic, administrative and socio-cultural levels.

Research limitations/implications

This article posits, particularly for Kenyan universities, that proper identification of their needs and wants for their higher education is key to successfully engage in IOHE. This recognition of needs and wants places them in the right position to identify appropriate rationales to engage in this complex process.

Originality/value

The novelty of this study is based on the fact that in Sub-Saharan Africa, research on the rationales for the IOHE in universities is highly lacking. A focus on more localized contexts is a critical starting point for these institutions to own and situate the internationalization process in a way that meets their needs.

Details

Journal of Applied Research in Higher Education, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2050-7003

Keywords

Article
Publication date: 27 September 2022

Ana-Maria Parente-Laverde, Laura Rojas-DeFrancisco and Izaias Martins

Reputation transfer between countries and companies, and its impact on the internationalization process of organizations is an emerging topic in the international business and…

Abstract

Purpose

Reputation transfer between countries and companies, and its impact on the internationalization process of organizations is an emerging topic in the international business and marketing field. Using the resource-based view (RBV) and institutional theory as a theoretical framework, this study aims to describe the relationship between Colombia's reputation and its companies' perception from the perspective of the food and software industries.

Design/methodology/approach

This qualitative, exploratory and descriptive study is based on data collected through the application of 24 interviews with experts and Colombian and global company's leaders. An analysis of the concepts, categories and relationships was conducted, followed by thick descriptions.

Findings

There is reputation transfer between countries and organizations in the following cases: (1) during initial stages of the internationalization process, (2) within companies and industries that share values with the country of origin perceptions and (3) when the country of origin institutional context leverages the reputation transfer between companies and countries.

Research limitations/implications

It contributes to the field by helping to the conceptualization of the process and adding important elements to the transfer process, such as actors and values, especially in country repositioning cases.

Practical implications

The study provides inputs to policymakers for the creation of the country brand and the management of country image, and to businesses in their corporate image and reputation strategies.

Originality/value

The uniqueness of this paper is based on the analysis of reputation transfer in an emerging country that is repositioning its image and reputation.

Details

International Journal of Emerging Markets, vol. 19 no. 6
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 24 May 2024

Matilde Milanesi, Andrea Runfola and Simone Guercini

The paper delves into the international expansion of luxury SMEs to investigate their internationalization pathways, namely how the internationalization process unfolds in terms…

Abstract

Purpose

The paper delves into the international expansion of luxury SMEs to investigate their internationalization pathways, namely how the internationalization process unfolds in terms of timing of entry into foreign markets, the geographic scope of operations and the scale. The paper examines also the determinants of the internationalization pathways as a set of factors that contribute to developing an asset of foreignness.

Design/methodology/approach

The paper adopts a multiple case study approach and reports findings from four cases of Italian SMEs operating in the luxury fashion industry.

Findings

SMEs’ specific characteristics at the firm and entrepreneurial levels (i.e. craftsmanship, quality, product creativity, entrepreneurial mindset), country of origin attributes (e.g. Italy’s positive image) and the inherently global nature of the luxury industry, can turn foreignness into an asset of foreignness that allows luxury fashion SMEs to pursue internationalization pathways of born globals.

Originality/value

The paper highlights that the global luxury market is not the exclusive domain of MNEs and sheds light on luxury SMEs, overlooked by extant literature. The paper also contributes to understanding early internationalization by highlighting a potential link between internationalization pathways and foreignness and discussed the asset of foreignness by extending it to SMEs.

Details

International Marketing Review, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0265-1335

Keywords

Article
Publication date: 16 September 2022

Andrei Panibratov, Olga Garanina, Abdul-Kadir Ameyaw and Amit Anand

The authors revisit the traditional OLI paradigm with the objective to allocate politics within the set of internationalization advantages by building on the political strategy…

Abstract

Purpose

The authors revisit the traditional OLI paradigm with the objective to allocate politics within the set of internationalization advantages by building on the political strategy literature. The authors outline the specific role of political advantage that facilitates and propels the international expansion of state-owned multinational enterprises (SOMNEs) from emerging markets.

Design/methodology/approach

A conceptual paper which explains the role of political advantage in the internationalization of SOMNEs. The authors expand the scope of the OLI to capture the impact of firms' home governments' policies and relationships with host countries which are leveraged by SOMNEs in their internationalization.

Findings

The authors define political advantage as a new type of advantage which depends on and is sourced from external actors. The authors argue that P-advantage is a multifaceted and unstable part of POLI composition, which is contingent on political shifts and may be leveraged by various firms. The authors also assert that political capabilities have limitations in sustaining political advantage, which may be compensated via enhancing the political activity of firms.

Originality/value

The authors conceptualize the POLI-advantages paradigm for the internationalization of SOMNEs by proposing that in addition to the traditional ownership, location, and internalization advantages, firms can capitalize on their political advantage to enter markets where internationalization might have been difficult without their political connections.

Article
Publication date: 4 June 2024

Md. Nur Alam, Imtiaz Masroor, Md. Noor Un Nabi and Utz Dornberger

Internationalisation is a complex and uncertain process for small and medium-sized enterprises (SMEs), characterised by challenges such as limited resources, lack of international…

Abstract

Purpose

Internationalisation is a complex and uncertain process for small and medium-sized enterprises (SMEs), characterised by challenges such as limited resources, lack of international experience and uncertainty in foreign markets. This study aims to explore the impact of entrepreneurial effectuation on the diversification of products and market expansion. Additionally, it examines the mediating role of alliance capabilities in this relationship.

Design/methodology/approach

This study developed five hypotheses based on an extensive and relevant literature review. Data were collected using nonprobability judgemental and snowball sampling techniques from 202 software exporting firms in Bangladesh to measure the relationship. Data collected from the survey were then analysed using partial least squares-structural equation modelling.

Findings

The results of this study show that all five hypotheses developed in this study are supported. This study found a positive impact of entrepreneurial effectuation on product and market diversification. Study results also show that alliance capabilities mediate the relationship between entrepreneurial effectuation and product and market diversification.

Research limitations/implications

In the face of internationalisation uncertainties, SMEs use effectual decision-making logic and form strategic alliances to enhance their competitive positions. This research contributes to understanding how SMEs use effectuation in navigating international markets and expanding their product portfolios and market reach.

Originality/value

This study pioneers a mediation approach to explore the relationship between entrepreneurial effectuation, alliance capabilities and diversification in SME internationalisation. Examining the interplay of decision-making logic and collaborative ventures, this study offers insights into the complexities of SME internationalisation in uncertain environments.

Details

Review of International Business and Strategy, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2059-6014

Keywords

Article
Publication date: 28 May 2024

Maria-Cristina Stoian

Despite the importance of foreign market entry mode (FMEM) decisions for the internationalisation of small and medium-sized enterprises (SMEs), there is insufficient understanding…

Abstract

Purpose

Despite the importance of foreign market entry mode (FMEM) decisions for the internationalisation of small and medium-sized enterprises (SMEs), there is insufficient understanding of the knowledge types and sources necessary for such decisions. This study addresses this issue by investigating the knowledge configurations that underpin FMEM initial choices and subsequent changes in SMEs.

Design/methodology/approach

This study adopted an interpretive approach and analysed empirical data from 37 in-depth interviews with decision-makers in internationalised SMEs from the United Kingdom.

Findings

The findings reveal that different knowledge configurations drive FMEM decisions in SMEs. Based on the analysis conducted for this study, initial FMEM choices draw on prior experiential knowledge combined with knowledge from desk research and knowledge acquired from peers, competitors and international partners. However, unlike many previous contributions, this research shows that foreign market experiential knowledge does not influence mode changes. Within-mode changes rely mainly on mode-specific knowledge and on knowledge about exploiting the benefits of the internet and digital platform ecosystems. Conversely, between-mode changes draw on diverse knowledge that is frequently created in interaction with international stakeholders or acquired externally.

Originality/value

This study contributes to the SME internationalisation literature by highlighting the knowledge configurations that inform not only initial choices but also between- and within-mode changes. Moreover, it reveals the importance of distinct types of digital technology-based knowledge for facilitating mode changes. It also adds to the knowledge-based perspective by underscoring that dynamic and heterogenous knowledge configurations, often created in interaction with international stakeholders, promote firm internationalisation.

Details

International Journal of Entrepreneurial Behavior & Research, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1355-2554

Keywords

Article
Publication date: 11 June 2024

Hsing-Hua Stella Chang, Cher-Min Fong and Min-Hua Chang

Empirical evidence of the value creation process through which internationalizing small and medium-sized enterprises (SMEs) develop international branding capability (IBC) to…

Abstract

Purpose

Empirical evidence of the value creation process through which internationalizing small and medium-sized enterprises (SMEs) develop international branding capability (IBC) to build a value-creating brand in international markets is incomplete. This research aims to investigate a theoretical framework for the determinants and outcomes of IBC in internationalizing SMEs.

Design/methodology/approach

Using surveys of 519 internationalizing SMEs, this research empirically verified the antecedents to and effects of IBC on SMEs’ value creation, which thus translates into superior performance. Furthermore, this research explores contextual factors influencing the value creation process in SME internationalization.

Findings

Findings show that SMEs with strong international marketing resource orchestration (IMRO) and relational capability are more competent in developing IBC, which assists resource-constrained SMEs to create value, as manifested through international brand equity (IBE) and improved international performance. Moreover, environmental uncertainty enhances the interplay between IMRO, relational capability, and IBC, while new entrant pressure strengthens the relationship between IBC and IBE, and price competition pressure magnifies the impact of IBE on international performance.

Originality/value

Our study pioneers conceptualization of the value creation process through which SMEs develop IBC to build value-creating brands in international markets, overcoming the liabilities of smallness and outsidership.

Details

International Marketing Review, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0265-1335

Keywords

Article
Publication date: 23 September 2022

Aparna Bhatia and Meenu Khurana

The paper aims to measure the nature and extent of international diversification followed by Indian companies over the period 2009–10 to 2017–18. The study also aims to assess the…

Abstract

Purpose

The paper aims to measure the nature and extent of international diversification followed by Indian companies over the period 2009–10 to 2017–18. The study also aims to assess the pattern of transition of companies to various strategies of international diversification.

Design/methodology/approach

Jacquemin and Berry’s (1979) entropy approach has been applied to measure the extent and assess the nature of international diversification. Further, the study deploys two-dimensional categorical framework advocated by Vachani (1991) and categorizes the firms into four international diversification strategies.

Findings

Larger proportion of companies in internationally low diversification (ILD) strategy reveals low extent of international diversification of Indian companies. The pattern of diversification depicts that the trend of moving forward is speeding up sequentially toward higher strategies of growth. Both the extent and pattern depict that the nature of diversification is shifting from relatedness to un-relatedness with transitions from intra-regions to inter-regions. The study confirms the applicability of eclectic theory and psychic distance Uppsala model in determining the preference of international diversification strategies and process of internationalization respectively in Indian firms.

Originality/value

The paper is first of its kind on account of several reasons. First, such a comprehensive evaluation of preferences for international diversification strategies has never been taken up with reference to emerging economies, especially India. Second, the paper is not static and does not limit itself only to the identification of favored strategies of Indian companies but also gauges the transitional behavior of Indian companies across different strategies at different points of time. In fact it is the first study to statistically research the applicability of psychic distance model in firms in emerging economy. Third, the results not only measure the quantum of international diversification but also assess the extent of relatedness and un-relatedness followed by Indian companies.

Details

International Journal of Emerging Markets, vol. 19 no. 5
Type: Research Article
ISSN: 1746-8809

Keywords

Open Access
Article
Publication date: 8 August 2022

Svitlana Ostapenko, Ana Paula Africano and Raquel Meneses

This study aims to systematise the links between firms’ strategies (corporate and business) and the cluster dynamics (through the cluster life cycle [CLC] perspective) and propose…

873

Abstract

Purpose

This study aims to systematise the links between firms’ strategies (corporate and business) and the cluster dynamics (through the cluster life cycle [CLC] perspective) and propose an integrative framework bridging firms’ strategic behaviour and cluster dynamics (CLC).

Design/methodology/approach

The methodology used is an integrative literature review, which provides a distinctive form of research.

Findings

The study identifies several links between firms’ strategies (corporate and business) and the cluster dynamics (CLC), namely: (1) firms’ strategies as a triggering factor of cluster evolution; (2) firms’ strategies and path's decline; (3) firms’ strategies and cluster’s renewal; (4) resilience strategies and the cluster life cycle; and (5) cluster’s features and firms’ strategies.

Research limitations/implications

This study contributes to developing strategic management theory and cluster theory by bridging firms' strategies and cluster dynamics (CLC). It proposes a new conceptualisation of the impact of cluster dynamics on firms' strategic choices – firstly, it proposes a specific approach to identify the CLC; and secondly, it develops an integrative framework model that relates firms' strategies and each stage of the CLC. These are theoretical tools relevant for further advancements in this area of research, as they can be applied in studies of different clusters for validation, something that was not done.

Practical implications

The integrative framework is expected to be helpful to company managers, allowing them to design better strategies that account for dynamic cluster environments.

Originality/value

This study aims to fill this gap in the literature by systematising the links between firms' strategies (corporate and business) and the cluster dynamics (CLC).

Details

EuroMed Journal of Business, vol. 19 no. 2
Type: Research Article
ISSN: 1450-2194

Keywords

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