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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…

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

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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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Article
Publication date: 17 March 2021

Mikael Hilmersson, Martin Johanson, Heléne Lundberg and Stylianos Papaioannou

Few researchers and even fewer practitioners would deny that serendipitous events play a central role in the growth process of firms. However, most international marketing…

Abstract

Purpose

Few researchers and even fewer practitioners would deny that serendipitous events play a central role in the growth process of firms. However, most international marketing models ignore the role of serendipity in the opportunity discovery process. The authors provide a nuanced view on international opportunities by developing the role of serendipitous opportunities in the foreign market entry process. The authors develop a model integrating the notions of serendipity, entrepreneurial logic, experiential knowledge and network knowledge redundancy. From the study’s model, the authors condense three sets of hypotheses on the relationships among experiential knowledge and entry strategy, network knowledge redundancy, entry strategy and serendipity.

Design/methodology/approach

The authors confront the study’s hypotheses with data collected on-site at 168 Swedish firms covering 234 opportunities, and to test the hypotheses, the authors ran ordinary least squares (OLS) regression tests in three steps.

Findings

The results of the study’s analysis reveal that experiential knowledge and network knowledge redundancy both lead to a logic based on rigid planning and systematic search, which in turn reduces the likelihood that serendipitous opportunities will be realized in the foreign market entry process.

Originality/value

This is the first study that develops a measure of opportunities that are the outcome of serendipitous events. In addition, the authors integrate network and learning theories and internationalization theory by establishing antecedents to, and outcomes of, the entry strategy.

Details

International Marketing Review, vol. 38 no. 3
Type: Research Article
ISSN: 0265-1335

Keywords

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Book part
Publication date: 12 November 2010

Martin Johanson and Pao T. Kao

Purpose – The purpose of this chapter is to provide a review of literature that analyses the internationalisation of the firm, through the function and role of networks.

Abstract

Purpose – The purpose of this chapter is to provide a review of literature that analyses the internationalisation of the firm, through the function and role of networks.

Design/methodology/approach – A total of 23 papers (published between 1988 and 2008) explicitly using network as a research framework to study the internationalisation process of the firm were selected. They have been analysed according to a range of factors, including the author, journal, time frame in which they were published, type of focal firm, country of origin of focal firms, market entered, methods applied in the studies, theories adopted and research topic.

Findings – Networks have emerged as one of the dominant frameworks used to explain the phenomenon of internationalisation. Having originally been applied in studies of firms from developed countries entering similar markets, network theories are now as popular in studies of firms both originating in and entering emerging markets. This review also finds that both qualitative and quantitative methods have been adopted in the studies; however, few papers have tried to combine the two. Furthermore, the network approach has been used for comparative analysis with findings from FDI theory, as well as to supplement international new venture (INV) and born global theories. Lastly, this review highlights topics that have been explored in previous studies and suggests areas for further research.

Originality/value – This is the first review paper on this subject and as such it contributes to the growing body of knowledge on the network approach and assists in understanding the internationalisation phenomenon of the firm.

Details

Reshaping the Boundaries of the Firm in an Era of Global Interdependence
Type: Book
ISBN: 978-0-85724-088-0

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Book part
Publication date: 16 June 2005

Catherine Welch

This paper investigates the internationalization of consulting providers that supply to multilateral institutions such as the World Bank, United Nations and Asian…

Abstract

This paper investigates the internationalization of consulting providers that supply to multilateral institutions such as the World Bank, United Nations and Asian Development Bank. Previous research has identified that such clients do play a notable role in the internationalization of some consulting firms, but little empirical research has been undertaken. In this paper, a “network” approach to internationalization is taken, with the findings from an interview study suggesting that while consulting providers “follow” multilateral institutions to new markets, this is only one of several “relationship strategies” that firms use in combination to enter and develop foreign markets.

Details

Research on International Service Marketing: A state of the Art
Type: Book
ISBN: 978-0-76231-185-9

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Book part
Publication date: 10 September 2018

Christiane Prange and Youzhen Zhao

The authors of this chapter investigate internationalisation strategies of small and medium-sized companies (SMEs) in China. We highlight the specific challenges that…

Abstract

The authors of this chapter investigate internationalisation strategies of small and medium-sized companies (SMEs) in China. We highlight the specific challenges that Chinese SMEs encounter when selecting international country markets in terms of distance and entry speed. The authors adopt an ambidexterity perspective that differs from traditional explanations of internationalisation behaviour by highlighting the need to balance seemingly disparate options for international expansion. Three cases provide an illustration of how Chinese companies combine distant with proximate market entries and slow with accelerated entry speed. The authors highlight how these strategies can drive and enhance international aspirations of Chinese SMEs.

Details

Key Success Factors of SME Internationalisation: A Cross-Country Perspective
Type: Book
ISBN: 978-1-78754-277-8

Keywords

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Book part
Publication date: 23 November 2017

João Carvalho Santos, Hortênsia Barandas-Karl and Francisco Vitorino Martins

In this chapter we test a conceptual model to shed light on the psychic distance (PD) hazards in cross-border acquisitions’ (CBAs’) performance. Only a few studies have…

Abstract

In this chapter we test a conceptual model to shed light on the psychic distance (PD) hazards in cross-border acquisitions’ (CBAs’) performance. Only a few studies have sought to examine the impact of national-level dimensions on CBAs’ performance, such as cultural distance or PD, with non-conclusive and contradictory results. Event study methodology is used to scrutinize the impact of the five key dimensions of psychic distance stimuli (PDS) on the stock market performance of the US acquirer firms and 26 countries involved in the CBA. Our results support that PD, as a whole, has a negative impact on CBAs’ performance although only in the short term there is a statistically significant negative impact, whereas in the long term no effect is statistically significant. Analyzing the different dimensions of PDS, only differences in language, education, and political systems are significant. This chapter is the first to empirically examine the PD hazards on CBAs by breaking down the PDS and test the effect of each dimension on CBAs´ performance. The findings of this study may be useful for managers of firms that wish to undertake CBAs as it denotes important dimensions which hinder post-deal performance.

Details

Distance in International Business: Concept, Cost and Value
Type: Book
ISBN: 978-1-78743-718-0

Keywords

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Book part
Publication date: 31 October 2009

Desirée Blankenburg Holm, Rian Drogendijk, Jukka Hohenthal, Ulf Holm, Martin Johanson and Ivo Zander

Purpose – We examine the fundamental assumptions and features of the Uppsala model of internationalization and argue that we need to look beyond this model for studying…

Abstract

Purpose – We examine the fundamental assumptions and features of the Uppsala model of internationalization and argue that we need to look beyond this model for studying internationalization processes in the multinational corporations (MNCs) of today. The purpose of our paper is to identify gaps and neglected issues regarding MNCs' internationalization processes that demand further theoretical and empirical study.

Methodology – Our approach is conceptual: based on the most cited model on internationalization, the Uppsala model, we approach the complex internationalization processes that continuously go on in modern MNCs. We use related bodies of literature, on MNC structure and strategy, headquarters–subsidiary relationships, MNC subsidiary strategy and development, and opportunity seeking and entrepreneurship, to fill in the gaps and develop the emerging research themes.

Findings – We identify the following three issues that need further investigation: the opportunity recognition process preceding internationalization processes in MNCs, the internationalization of multiple products within the confines of the growing MNC, and the internationalization of foreign MNC units.

Research limitations – In this paper, we open up new research fields, but do not offer empirical studies to inform us about these relevant issues. Future research should study these issues empirically, preferably through case study methodologies and/or with longitudinal designs.

Originality – The contribution of our paper is its identification of three research issues in relation to internationalization processes of modern MNCs, which we argue are neglected by contemporary research.

Details

Research on Knowledge, Innovation and Internationalization
Type: Book
ISBN: 978-1-84855-956-1

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Article
Publication date: 28 June 2018

Byoungho Jin, Jae-Eun Chung, Heesoon Yang and So Won Jeong

Contrary to the mainstream born global (BG) perspective, some previous studies report the incremental expansion of BGs. In addition, the reasons behind BGs initiating…

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Abstract

Purpose

Contrary to the mainstream born global (BG) perspective, some previous studies report the incremental expansion of BGs. In addition, the reasons behind BGs initiating specific steps, if any, and BGs’ entry market choices are still unknown or rather contrasting. This study views that such contrasting findings may be attributed to the contexts in which BGs operate. Within the context of consumer goods BGs, the purpose of this paper is to examine the entry market choices and post-entry growth patterns, and investigate the underlying reasons.

Design/methodology/approach

This study adopted in-depth historiographic case research from seven Korean BGs in the consumer goods sector that demonstrated success in internationalization. Multiple sources were used to gather data from each case. A total of 14 interviews, approximately two one-on-one interviews per firm, were the major means of data collection.

Findings

The findings revealed that first entry market choices among BGs functioned largely as attempts at emergent opportunities. However, after the first wave of entry into countries with available selling opportunities, entry market choice became a simultaneous pursuit of strategic markets and emergent selling opportunities. BGs focusing on image-oriented consumer goods appeared more strategic when entering the world’s leading markets to gain brand reputation. The analyses of internationalization processes revealed three patterns, which collectively implied that each move to the next stage came from a strategic decision to solve the problems related to survival and strategic visions for growth.

Originality/value

One contribution of this paper is the provision of empirical evidence for entry market choices among consumer goods BGs. The findings suggest that BGs’ entry market choices may not be a simple matter of simultaneous expansion to the world’s lead market. Instead, they may comprise more strategic decision. While previous studies have suggested such evolutionary or path-dependent internationalization processes, this study is among the first to reveal specific growth patterns and the possible reasons behind them.

Details

International Marketing Review, vol. 35 no. 6
Type: Research Article
ISSN: 0265-1335

Keywords

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Article
Publication date: 26 April 2011

Nicolas Papadopoulos and Oscar Martín Martín

This paper has two overall goals. The first is to serve as a broad overview of the literature on the subject theme, with three main objectives in mind: to highlight the…

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15354

Abstract

Purpose

This paper has two overall goals. The first is to serve as a broad overview of the literature on the subject theme, with three main objectives in mind: to highlight the complexities of international market selection or segmentation as a field of study and as a strategic decision by international firms; to explore the various ways and perspectives from which this area has been studied; and to suggest areas for future research by drawing on the preceding discussion. The second goal of the paper is to act as an introduction to the IMR special issue on the title theme, by outlining the special issue's objectives and the contributions to it.

Design/methodology/approach

Drawing on the relevant literatures, the paper begins by outlining the factors that make the field complex in both theoretical and applied terms, moves to consider the research streams that comprise its main components, and concludes by drawing conclusions and implications for future research.

Findings

A large part of the complexity characterizing this field arises from the fact that it is closely intertwined with the broader area of internationalization and a number of other decisions related to it, such as the “go/no‐go” decision and the firm's choice of mode of entry. From the research perspective, theory development has been impeded by a high degree of fragmentation, which has resulted in various different streams studying the same general issues from widely different perspectives.

Research limitations/implications

The paper identifies a large number of directions for potential future research, not the least of which is the need for integrative research that addresses the fragmentation identified in the study.

Practical implications

Although this is primarily a theoretical paper directed at researchers, practitioners can gain useful insights from it by examining the various factors that have a bearing on their internationalization decisions.

Originality/value

The objectives of the main part of the paper will have been met if it succeeds in stimulating interest in further research and discussion on the core issues. The second part summarizes the contributions to the special issue and draws attention to the main message that each aims to convey.

Details

International Marketing Review, vol. 28 no. 2
Type: Research Article
ISSN: 0265-1335

Keywords

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