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Article
Publication date: 1 March 2006

Anders Blomstermo, D. Deo Sharma and James Sallis

The purpose of this study is to examine the relationship between foreign market entry modes and hard‐ and soft‐service firms. The paper investigated which foreign market entry…

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Abstract

Purpose

The purpose of this study is to examine the relationship between foreign market entry modes and hard‐ and soft‐service firms. The paper investigated which foreign market entry modes service firms opt for, and if this is influenced by systematic differences between types of service industries. A secondary purpose is to test the generalizability of the research findings from manufacturing sector to service sector firms.

Design/methodology/approach

Our sample consisted of 140 Swedish service firms. These firms were investigated using a mailed questionnaire survey, and logistic regression analysis was used for testing the hypotheses.

Findings

The statistical analysis shows that, in general, soft‐service firms are much more likely than hard service firms to choose a high control entry mode over a low control entry mode. Furthermore, as cultural distance increases, the likelihood of this choice increases even more.

Research limitations/implications

The implications are that while hard service suppliers can learn from the experience of manufacturing firms going abroad, soft services are unique. Given the importance for soft‐service suppliers to interact with their foreign customers, they should opt for a high degree of control over their foreign market entry mode. In future research on foreign market entry mode selection in service firms more attention should be given to social processes that exercise control.

Originality/value

The findings enhance knowledge on foreign market entry by service firms.

Details

International Marketing Review, vol. 23 no. 2
Type: Research Article
ISSN: 0265-1335

Keywords

Article
Publication date: 1 July 2006

Yee Kwan Tang

This study aims at providing exploratory insights into the initiative and capabilities of Chinese SMEs to develop and utilize diverse networks to support internationalization…

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Abstract

This study aims at providing exploratory insights into the initiative and capabilities of Chinese SMEs to develop and utilize diverse networks to support internationalization. Such network development and utilization efforts are fundamental to the analysis and explanation of Chinese firms’ internationalization patterns and outcomes. Extending from the existing network studies in the Chinese context that generally put emphasis on strong‐tie and ethnic‐oriented networks, this paper investigates and explains explicitly the use and effects of both strong‐ and weak‐tie networks in the international development of Chinese SMEs. Indepth case studies on four rapidly internationalized Chinese SMEs are conducted. The case findings demonstrate that weak‐tie networks are essential to the firms’ business development in foreign markets; and were proactively developed and utilized in the course of the firms’ development. The cases also provide alternative perspectives to the beliefs and values underpinning strong‐tie networks presumed in existing literature. The findings draw attention to the changing business values and approaches of the Chinese firms aiming at developing internationally. Managerial implications concerning the significant influence of effective networking on internationalization are pinpointed.

Details

Journal of Asia Business Studies, vol. 1 no. 1
Type: Research Article
ISSN: 1558-7894

Keywords

Article
Publication date: 19 December 2022

Mehmet Mithat Üner, Ceyhan Cigdemoglu, Yihuai Wang, Aybuke Yalcin and S. Tamer Cavusgil

The purpose of this paper is to reveal the assumptive concept of internationalization because it is discussed and understood in the international business (IB) literature. This…

Abstract

Purpose

The purpose of this paper is to reveal the assumptive concept of internationalization because it is discussed and understood in the international business (IB) literature. This paper develops a framework to reconceptualize internationalization in the context of global value chain (GVC) and sustainability. Based on this conceptual framework, this paper aims to formulate interrelated propositions to define internationalization.

Design/methodology/approach

This paper reviews the assumptive conceptualization process based on empirical evidence obtained through qualitative, illustrative and descriptive content analysis methods. Through the collection and qualitative content analysis of milestone papers, this paper demonstrates the fragmentation of the concept of internationalization. This paper reviews the evolving nature of the concept of internationalization, analyzing the accumulative issues associated with defining internationalization, as well as its potential future development.

Findings

This paper introduces a dynamic perspective on the evolving nature of the concept of internationalization and argue there is a need to reconceptualize internationalization in the context of the GVC and sustainability.

Originality/value

After reviewing the context in which the term “internationalization” has been applied and taking into consideration the current trends in the IB, this paper formulates an updated definition of the term internationalization. This paper offers a viewpoint on the future direction of the concept of internationalization in light of the growing importance of sustainability within IB.

Details

Review of International Business and Strategy, vol. 33 no. 4
Type: Research Article
ISSN: 2059-6014

Keywords

Article
Publication date: 1 October 2005

Jon I. Martínez, José Paulo Esperança and José R. de la Torre

This paper focuses on the firm‐specific assets, management processes, and organizational strategies displayed by a group of firms based in Latin America, a region that undertook a…

Abstract

This paper focuses on the firm‐specific assets, management processes, and organizational strategies displayed by a group of firms based in Latin America, a region that undertook a generalized attempt of economic liberalization during the 1990s. We analyze the operational and organizational strategies of 40 local firms with rapidly expanding international operations within the region – defined as “multilatinas” – and contrast them with those of 58 U.S. and European multinational corporations also operating in Latin America. By comparing these two sets of firms – emerging and experienced – in the same context and over the same time period, we can test for the universality of models of organizational change that are based largely on the latter. We show that multilatinas enjoy less firm‐specific assets and make less extensive use of sophisticated management processes than their foreign counterparts. We also see, however, many of these emerging multinationals evolving by adopting more complex coordination and control mechanisms as they face a more integrated and global environment.

Details

Management Research: Journal of the Iberoamerican Academy of Management, vol. 3 no. 3
Type: Research Article
ISSN: 1536-5433

Keywords

Article
Publication date: 11 November 2009

Thomas Hutzschenreuter

Internationalization is of high relevance and has been discussed intensively. However, different internationalization paths have been proposed by theoretical models and have been…

Abstract

Internationalization is of high relevance and has been discussed intensively. However, different internationalization paths have been proposed by theoretical models and have been observed in reality. In this study, we examine the internationalization path of 52 German firms over a period of ten years using comprehensive and rich data on all new ventures established by these companies within this period. We find four distinct patterns of internationalization and propose a stage model of internationalization based on these findings. Our results show different challenges for managers depending on the stage of internationalization and render interesting starting points for further research.

Details

Multinational Business Review, vol. 17 no. 4
Type: Research Article
ISSN: 1525-383X

Keywords

Article
Publication date: 24 October 2020

Martin Johanson, Pao T. Kao and Heléne Lundberg

The purpose of this paper is to understand knowledge grafting through localized professionals in the internationalization of the firm. Knowledge grafting refers to firms…

Abstract

Purpose

The purpose of this paper is to understand knowledge grafting through localized professionals in the internationalization of the firm. Knowledge grafting refers to firms increasing their knowledge stock by acquiring new staff, and while the concept is not new in studies on firms’ internationalization, there is little understanding of the characteristics of the individuals carrying the knowledge, the types of knowledge grafted and how it contributes to a market entry process.

Design/methodology/approach

The authors conducted an explorative study with a multiple-case research design and purposely selected five localized Swedish managers working for Russian subsidiaries of Swedish firms. Face-to-face interviews were conducted. The interviews were transcribed and analyzed based on three types of knowledge: general foreign market knowledge, social network knowledge and professional knowledge. The authors also considered both private and professional ties.

Findings

The findings show that characteristics of the localized professional and the firm can influence the type of knowledge grafted and how it is used. The findings also highlight the key role of the individual as knowledge carrier and show an alternative way to obtain knowledge in firm internationalization.

Research limitations/implications

This study comes with limitations. Only Swedish firms entering Russia with wholly owned subsidiaries have been considered. Further studies comparing knowledge grafting with firms in different entry mode, varying stage of market entry, as well as other countries of origin can further enrich our understanding. Future studies can also focus on localized professionals to shed light on the knowledge transfer between them and other individuals within the firms and the potential impact of their departure on knowledge grafting.

Practical implications

Internationalizing firms should pay attention to the opportunity of grafting knowledge by appointing localized professionals already living in the market. Governmental agencies in the host county can be a valuable source for identifying foreign nationals of the same origin as the firm.

Originality/value

To the best of the authors’ knowledge, this is the first study to focus on the individual level of knowledge grafting and to examine how localized professionals acquire knowledge to support firms in internationalization.

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