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Book part
Publication date: 24 August 2011

Breda Kenny and John Fahy

The study this chapter reports focuses on how network theory contributes to the understanding of the internationalization process of SMEs and measures the effect of network…

Abstract

The study this chapter reports focuses on how network theory contributes to the understanding of the internationalization process of SMEs and measures the effect of network capability on performance in international trade and has three research objectives.

The first objective of the study relates to providing new insights into the international market development activities through the application of a network perspective. The chapter reviews the international business literature to ascertain the development of thought, the research gaps, and the shortcomings. This review shows that the network perspective is a useful and popular theoretical domain that researchers can use to understand international activities, particularly of small, high technology, resource-constrained firms.

The second research objective is to gain a deeper understanding of network capability. This chapter presents a model for the impact of network capability on international performance by building on the emerging literature on the dynamic capabilities view of the firm. The model conceptualizes network capability in terms of network characteristics, network operation, and network resources. Network characteristics comprise strong and weak ties (operationalized as foreign-market entry modes), relational capability, and the level of trust between partners. Network operation focuses on network initiation, network coordination, and network learning capabilities. Network resources comprise network human-capital resources, synergy-sensitive resources (resource combinations within the network), and information sharing within the network.

The third research objective is to determine the impact of networking capability on the international performance of SMEs. The study analyzes 11 hypotheses through structural equations modeling using LISREL. The hypotheses relate to strong and weak ties, the relative strength of strong ties over weak ties, and each of the eight remaining constructs of networking capability in the study. The research conducts a cross-sectional study by using a sample of SMEs drawn from the telecommunications industry in Ireland.

The study supports the hypothesis that strong ties are more influential on international performance than weak ties. Similarly, network coordination and human-capital resources have a positive and significant association with international performance. Strong ties, weak ties, trust, network initiation, synergy-sensitive resources, relational capability, network learning, and information sharing do not have a significant association with international performance. The results of this study are strong (R2=0.63 for performance as the outcome) and provide a number of interesting insights into the relations between collaboration or networking capability and performance.

This study provides managers and policy makers with an improved understanding of the contingent effects of networks to highlight situations where networks might have limited, zero, or even negative effects on business outcomes. The study cautions against the tendency to interpret networks as universally beneficial to business development and performance outcomes.

Details

Interfirm Networks: Theory, Strategy, and Behavior
Type: Book
ISBN: 978-1-78052-024-7

Keywords

Article
Publication date: 21 February 2018

Silas Costa Ferreira Junior and Afonso Carlos Corrêa Fleury

Multinational companies have manufacturing operations in various countries; however, there is scarce evidence on how they assess performance of the network-based operations of…

Abstract

Purpose

Multinational companies have manufacturing operations in various countries; however, there is scarce evidence on how they assess performance of the network-based operations of their factories, called international manufacturing networks (IMN). The purpose of this paper is to propose a process model for the performance assessment of IMNs.

Design/methodology/approach

The IMN performance assessment process model was developed from the extant literature and was empirically verified in its congruency and usefulness via a multiple case research. For that, in each case the general process model was derived into a specific application that fit the type of IMN on focus. Qualitative and quantitative data were collected from the case companies’ reports, profiling forms and interviews, followed by within-case and cross-case analyses.

Findings

Evidence suggest that the process model, along with its derivations, is a valuable tool to describe and explain how IMN performance assessment unfolds in real organizational environments. Additionally, three propositions emerged: IMN performance assessment has distinct characteristics depending on the type of IMN adopted, which in turn depends on the company’s internationalization strategy; IMN performance assessment has more strategic value and importance for companies that are globally coordinated and adopt “rooted” manufacturing strategies; and companies design their IMN performance assessment on a trial-and-error basis.

Research limitations/implications

As all case-based research, this paper has generalizability limitations. Thus, next steps may include a large-scale survey and an action research that will develop and implement a full-fledged IMN performance assessment.

Practical implications

The process model and descriptive insights provide a diagnostic tool and subsidies that may encourage managers to review and improve their current IMN performance assessment.

Originality/value

The process model contributes to addressing a 20-year gap concerning how to approach IMN performance assessment in a holistic and systematic manner.

Details

International Journal of Operations & Production Management, vol. 38 no. 10
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 5 March 2018

Daniel Gulanowski, Nicolas Papadopoulos and Llynne Plante

This paper aims to critically review and integrate the literature available on Uppsala (incremental) and Born Global (rapid) internationalization models and propose an integrative…

1413

Abstract

Purpose

This paper aims to critically review and integrate the literature available on Uppsala (incremental) and Born Global (rapid) internationalization models and propose an integrative model that applies to both the initial and subsequent stages in internationalization.

Design/methodology/approach

This study draws on a systematic review and analysis of the relevant literature, using 87 articles from 28 journals which deal with the Uppsala and/or Born Global conceptualizations.

Findings

To date, the two views of internationalization have been presented as competing and fundamentally different explanations, as past research focuses mostly on the original 1977 Uppsala model without accounting for its five subsequent extensions (1990-2013) and not considering in sufficient depth the critical role of the knowledge construct in both models.

Research limitations/implications

The study focuses on English-only publications dealing expressly with the Born Global and Uppsala models; while some studies which address the focal theme tangentially may have been missed, the systematic approach to identifying the key studies of interest and the focus on a carefully delineated research domain provides confidence that the main studies relevant to the theme have been captured.

Originality/value

The study highlights the important role of knowledge in the internationalization of firms, and it addresses the current divide between the “incremental” and “rapid” conceptualizations which have impeded the development of theory, by positing six research propositions and an integrative model that accounts for both the incremental and rapid approaches.

Details

Review of International Business and Strategy, vol. 28 no. 1
Type: Research Article
ISSN: 2059-6014

Keywords

Article
Publication date: 1 May 2007

Francisco J. Acedo and José C. Casillas

From a multidisciplinary perspective, combining international entrepreneurship and institutional theory, a model is presented in order to enrich the understanding of the speed of…

1643

Abstract

Purpose

From a multidisciplinary perspective, combining international entrepreneurship and institutional theory, a model is presented in order to enrich the understanding of the speed of internationalization in small firms. This is achieved by including individual's attitudes and behaviour, as well as factors from the environment that may enhance firms' international behaviour.

Design/methodology/approach

Information from a random sample of 104 Spanish SMEs was gathered via personal interview with a structured questionnaire. Structural Equation Modelling (SEM), specifically Partial Least Squares (PLS), was employed in analyzing the multiple relationships among the proposed constructs.

Findings

The results show how one of the main institutional determinants of the age of entry into international markets are the inter‐firm relationships, specifically the tendency to imitate the behaviour of other firms with successful activities in international markets. In addition, the results note the complementary nature of the approaches used, even though they are apparently distant, and suggest the need to undertake more eclectic research approaches in this field.

Practical implications

Results enhance the importance of having a good competence scanning system in firms as it may help in reducing the time of adoption for certain behaviours, in this case internationalization behaviour. Besides this, the export promotion agencies may find these results useful in improving the results of the implemented policies in order to obtain a greater impact with the same resources, taking advantage of the diffusion of the behaviour.

Originality/value

Both the methodology and the constructs analysed, have scarcely been implemented in the internationalization literature when compared to other management fields.

Details

International Journal of Entrepreneurial Behavior & Research, vol. 13 no. 3
Type: Research Article
ISSN: 1355-2554

Keywords

Article
Publication date: 19 November 2021

Dante Di Gregorio, Martina Claasen Musteen and Douglas Thomas

Understanding how international business opportunities (IBOs) are recognized and developed is critical to the study of international entrepreneurship.

Abstract

Purpose

Understanding how international business opportunities (IBOs) are recognized and developed is critical to the study of international entrepreneurship.

Design/methodology/approach

We draw on entrepreneurial cognition research broadly and the entrepreneurial judgment perspective specifically to develop a model of the recognition and development of IBOs by considering three theoretically important sets of drivers – social networks, international experience and a proactive mindset. We use a sample of 92 small- and medium-sized enterprises (SMEs) to test the model empirically.

Findings

We find robust support. Entrepreneurial judgment surrounding IBOs and uncertain international business environments entails tapping social networks, international experience and a proactive mindset to both recognize third-person opportunities for someone as well as to act upon and develop IBOs as first-person opportunities from which a focal firm can profit.

Originality/value

Conceptually and empirically, we peer inside the black box of IBO entrepreneurial judgment processes by jointly evaluating the abstract recognition of third-person opportunities as well as the concrete actions and interactions that develop the IBOs into first-person opportunities.

Details

International Journal of Entrepreneurial Behavior & Research, vol. 28 no. 3
Type: Research Article
ISSN: 1355-2554

Keywords

Article
Publication date: 25 September 2019

Katia M. Galdino, Sérgio Fernando Loureiro Rezende and Bruce T. Lamont

By bringing together the IB and IE literatures, the purpose of this paper is to examine the internationalization process as an entrepreneurial process related to the development…

Abstract

Purpose

By bringing together the IB and IE literatures, the purpose of this paper is to examine the internationalization process as an entrepreneurial process related to the development of international opportunities. It explicitly connects different types of knowledge (i.e. market and internationalization), international opportunities and the internationalization process comprising both new foreign market entry and sequential moves that happen after entry.

Design/methodology/approach

This is a conceptual paper that reviews the literature on knowledge, opportunities and the internationalization process. Moreover, the paper identifies the current gaps in the literature and builds new theory that sheds light into how these three concepts are related. The paper also presents a model and propositions that should guide future research.

Findings

The proposed model shows that market and internationalization knowledge combine to form the international knowledge stockpile of the firm, which moderates the relationship between the development of international opportunities and the internationalization process, comprising not only new foreign market entry but also sequential moves that happen after entry using either mode continuation or modal shift. Moreover, it shows that the development of opportunities only leads to modal shifts after a certain threshold is achieved.

Research limitations/implications

The propositions suggest that market and internationalization knowledge are positively related to international opportunities, which, in turn, are related to foreign market entry and sequential moves using mode continuation. International opportunities, however, are related to modal shifts only beyond a threshold. Moreover, the international knowledge stockpile of the firm moderates the relationship between international opportunities and the internationalization process. Because this is a conceptual paper, the propositions have not been tested and, therefore, lack empirical validation. Nonetheless, the model is a starting point to new research on internationalization distinguishing different types of knowledge as well as different sequential moves.

Originality/value

This study shows that the internationalization process is contingent on the different types of knowledge associated with it. It also introduces the idea of a threshold that shapes the internationalization process. The bulk of the research on internationalization suggests that such a process is gradual and incremental. This study offers a non-linear alternative.

Details

International Journal of Entrepreneurial Behavior & Research, vol. 25 no. 7
Type: Research Article
ISSN: 1355-2554

Keywords

Article
Publication date: 22 November 2018

Samia Mazhar, Paul Pao-Yen Wu and Michael Rosemann

A configurable reference model can be used to assist in the development and management of business processes in complex, multi-stakeholder environments. The purpose of this paper…

481

Abstract

Purpose

A configurable reference model can be used to assist in the development and management of business processes in complex, multi-stakeholder environments. The purpose of this paper is to demonstrate a process design in such environments via configurable process reference modelling, using airports as an example.

Design/methodology/approach

Existing reference modelling methods around process modelling, merging and configuration are extended to include contextual and spatial factors using the design science methodology. The approach is empirically based on a set of business process management notation (BPMN) models for international passenger departures, consolidated from five Australian airport case studies via document analysis, interviews and observation.

Findings

The use of contextual factors and operational scenarios, structured using the proposed approach, facilitated efficient cross-organisational comparison for configuring processes to suit the needs of a target organisation. The resulting configurable model integrates the perspectives of organisational stakeholder groups with that of the customer in a transparent and unambiguous graphical representation. It is a reusable tool with low data collection needs for each use.

Research limitations/implications

Future research should include: version management; how to keep the model current; configurability via modelling objects other than gateways; and cross-discipline application (e.g. as a foundation for quantitative decision-making models).

Originality/value

This is the first reported application of configurable reference modelling to airport passenger facilitation. Methodological contributions include the addition of space-sensitive process elements and notation to BPMN; guidelines for systematically deriving contextual factors associated with process variants across similar organisations; and overall normative guidelines for inductively developing a configurable process reference model.

Article
Publication date: 4 October 2017

Tony Fang, Rosalie L. Tung, Linda Berg and Nazanin Nematshahi

The purpose of this paper is to propose a “parachuting internationalization” metaphor as an alternative strategy that firms may choose to enter foreign markets compared to Uppsala…

1940

Abstract

Purpose

The purpose of this paper is to propose a “parachuting internationalization” metaphor as an alternative strategy that firms may choose to enter foreign markets compared to Uppsala Model and Born Global Model. This proposed new metaphor seeks to integrate the Uppsala and the Born Global Models to show that firms can attain success in the age of globalization if they are adept at devising creative strategies that help them overcome the challenges in a psychically distant environment.

Design/methodology/approach

This is a research paper that develops theoretical perspectives inspired by the Yin Yang thinking as well as the “thick descriptive” multiple case studies.

Findings

“Parachuting internationalization” embraces essential elements of the Born Global and the Uppsala Models and refers to a firm’s strategic targeting of markets with great potentials, correct positioning, swift actions, and fast learning, thus enabling the firm to circumvent the conventional wisdom of liability of foreignness, cultural distance, and psychic distance. “Parachuting internationalization” is essentially a GLOCAL approach which can be implemented in practice in terms of global vision, location, opportunity, capital, accelerated cultural learning and quick action, and logistics.

Research limitations/implications

The “parachuting internationalization” metaphor is derived from interviews with four Scandinavian firms’ experiences that have entered into the Chinese market. This research reveals that two seemingly opposite approaches, i.e., the Born Global and the Uppsala Models, can be fruitfully combined and reconciled to generate a third novel approach.

Originality/value

To date, there has been little attempt to reconcile and/or integrate the Born Global and the Uppsala Models of internationalization. The paper enriches the ongoing debate on the internationalization of firms in the international business literature that has relied primarily on the Uppsala Model or Born Global Model. The study shows that a third way, i.e. the “parachuting internationalization” is both theoretically innovative and practically feasible.

Details

Cross Cultural & Strategic Management, vol. 24 no. 4
Type: Research Article
ISSN: 2059-5794

Keywords

Article
Publication date: 1 August 2008

Habin Lee, Zahir Irani, Ibrahim H. Osman, Asim Balci, Sevgi Ozkan and Tunc D. Medeni

This paper aims to introduce a European project CEES to develop a standard for the evaluation of Electronic Government (e‐Government) services from a citizen satisfaction…

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Abstract

Purpose

This paper aims to introduce a European project CEES to develop a standard for the evaluation of Electronic Government (e‐Government) services from a citizen satisfaction perspective.

Design/methodology/approach

The aim, objectives, methodology, and deliverables of the project CEES are detailed. Furthermore, the challenges of the development of a reference process model in different countries are addressed and academic and practical implications of the project for the citizen‐oriented evaluation of e‐Government services are discussed.

Findings

A reference process model for the evaluation of e‐Government services from a citizens' perspective receives strong support from experiences in other similar areas such as software process and information systems governance. The reference model needs to overcome such challenges as the differences in culture, the maturity of e‐Government systems, and citizens‐government relationships.

Practical implications

The research is expected to trigger international collaboration to develop international standards for the evaluation of e‐Government services.

Originality/value

The paper contributes to the literature by enriching the views on e‐Government services and their evaluation via introducing a reference model concept. The CEES project will be the first attempt to apply the reference model concept in the information systems evaluation domain. Despite the wide adoption of reference models in software process, software design, and business process automation, the concept is yet to be applied to the IS evaluation domain.

Details

Transforming Government: People, Process and Policy, vol. 2 no. 4
Type: Research Article
ISSN: 1750-6166

Keywords

Article
Publication date: 1 July 2014

Xin Li and Jens Gammelgaard

This paper aims to critically review the ownership, location and internalization (OLI) model and the Uppsala internationalization process (UIP) framework. We suggest that the…

1912

Abstract

Purpose

This paper aims to critically review the ownership, location and internalization (OLI) model and the Uppsala internationalization process (UIP) framework. We suggest that the inclusion of concepts such as corporate entrepreneurship, host country institutions and regulatory focus in an integrated framework helps to explain firm internationalization.

Design/methodology/approach

This paper is based on a review of the literature on the OLI and UIP models. In addition, it presents a conceptual model that encompasses corporate entrepreneurship, regulatory focus and institutions.

Findings

The OLI and the UIP models fail to include corporate entrepreneurship and managerial psychology in their analyses. We suggest that regulatory focus theory unifies the managerial strategic choice between position logic and opportunity logic. In addition, host country institutions affect this managerial choice with regard to internationalization.

Practical implications

Regulatory focus theory originates from managerial psychology. The model is, therefore, relevant for managers, and it shows how the outcomes and processes of corporate entrepreneurial activity should manifest themselves in managerial decision-making related to further internationalization. The strength of host country institutions also affects such decision-making.

Originality/value

This paper is the first to present the concept of regulatory focus in relation to firm internationalization. In addition, it shows that most entrepreneurship-related models of internationalization focus on international entrepreneurship and start-up firms. In contrast, this paper focuses on corporate entrepreneurship and the internationalization of established firms.

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