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1 – 10 of over 1000Michelle Lynn Childs and Byoungho Jin
Uppsala internationalisation theory is highly utilised due to its simplicity and applicability. However, there are contrasting results on its assumption that firms follow a…
Abstract
Purpose
Uppsala internationalisation theory is highly utilised due to its simplicity and applicability. However, there are contrasting results on its assumption that firms follow a gradual internationalisation process. Literature shows that firm strategies (e.g. targeting a niche market) and firm resources (e.g. brand image and asset specificity) may decrease barriers of entry. Global fashion retailers possess these characteristics and may not follow a gradual internationalisation pattern. Therefore, the purpose of this paper is to examine whether fashion retailers that target a niche market, have a strong brand image and asset specificity will follow a gradual internationalisation pattern suggested by Uppsala.
Design/methodology/approach
Two aspects of internationalisation (speed of internationalisation and market selection) were analysed. Market selection was measured by three aspects of distance (geographic distance, economic distance, and culture distance). Data were collected utilising secondary sources and internationalisation patterns were calculated using existing formulas.
Findings
Overall, results provided partial support for Uppsala model. After cautious expansion early in internationalisation, fashion retailers experience a period where rapid expansion exists. During initial internationalisation, geographically and economically close markets were chosen, which mirror the Uppsala model. However, no incremental patterns were observed thereafter. In addition, after initially moving to culturally close countries, firms moved to countries with close cultural proximity to each other rather than close to home market.
Research limitations/implications
The findings are based on three cases of fast fashion retailers; thus, for further generalisation, if the findings will be applicable to other fashion firms which have different strategies and resources needs to be examined.
Originality/value
This study is one of the first attempts to research the applicability of Uppsala model to fashion retailers. By investigating fashion retailers that target niche markets, have strong brand image and asset specificity; the paper adds additional empirical evidence of situations where internationalisation does not follow the linear pattern that Uppsala model argues.
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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…
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.
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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…
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.
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Mats Forsgren and Peter Hagström
The purpose of this paper is to examine to what extent classical models of firms' internationalization process can explain behavior among totally new types of firms. More…
Abstract
Purpose
The purpose of this paper is to examine to what extent classical models of firms' internationalization process can explain behavior among totally new types of firms. More specifically, we confront the traditional so‐called Uppsala model of internationalization with data and experiences from such firms in order to analyze and discuss some basic elements in the model.
Design/methodology/approach
Case studies of newly established and fast growing Internet‐related firms – rather dissimilar to the firms on which the Uppsala model was originally based – are examined.
Findings
The paper finds that, first, incremental behavior does not seem to be of major concern for our Internet‐related firms, at least not in comparison with factors related to first‐mover‐advantage or following‐the‐herd behavior. Second, stakeholders other than those included in the Uppsala model seemed to have a profound influence on the studied firms, forcing them to go abroad much faster than the model would predict. Third, related to the former point, the existence of an explicit and active internationalization strategy was observed among the firms, not fully in line with the reactive and adaptive firm behavior in the Uppsala model.
Originality/value
The results indicate that the internationalization behavior of new types of firms like Internet‐related firms might deviate considerably from what the Uppsala model predicts. However, as this behavior was far from successful in the studied cases, the results also indicate that the managerial implications of the Uppsala model are maybe more relevant than were originally intended.
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Gustavo Menoncin de Carvalho Pereira and Mario Henrique Ogasavara
The singularity of being the first Chinese manufacturer of drug-eluting stents to arrive in Brazil and the country being selected as the company's first experience outside its…
Abstract
Purpose
The singularity of being the first Chinese manufacturer of drug-eluting stents to arrive in Brazil and the country being selected as the company's first experience outside its home country motivated the interest in the study of this case, vis-à-vis with the characteristic of internationalization medical device companies according to the Uppsala model. Considering this context, the following research question was outlined: “How did Microport internationalize before the distribution of its stents product in Brazil?” The aim of the study is to investigate Microport's internationalization process for the distribution of its drug-eluting stents in Brazil.
Design/methodology/approach
Exploratory research under the qualitative method was adopted. It chose the single case study as a procedure for data collection, as it is a revealing, exemplary subject that offers opportunities for access to unusual research. The company MicroPort was chosen because in the period when Chinese medical device companies were focused on gaining market share in China, MicroPort began its international expansion, choosing Brazil as the first country to have its own subsidiary. It consists in the case of the internationalization of a high-tech EMNE in an emerging country that has institutional and cultural differences.
Findings
Taking advantage of new technology in highly internationalized environments favors its insertion; the internationalization of medical technology can expand according to the Uppsala Model, which does not explain internationalization, but rather its evolution. Cultural and behavioral issues reinforce that the development of the market for medical devices depends on local perspectives and values. The formation of an ecosystem in the local market for internationalization is observed. One implication of the study is that MicroPort's experience and the application of the Uppsala model for international expansion can serve as an important learning experience for Brazilian multinational companies.
Research limitations/implications
Empirical analysis carried out in the context of a single company. Although the results can be used as lessons learned from the application of the Uppsala model for international expansion of EMNE in an emerging market, caution should be exercised when generalizing its findings. Future studies could carry out comparative cases considering other emerging multinational companies, from the same sector or even from different industries, investing in other emerging markets. There is a limitation of the fact that the case studied does not explore the concepts of the later stages of the Uppsala model.
Practical implications
High-tech EMNEs internationalizing in other markets need to adopt aggressive strategies. The need to adopt different strategies for supply chain operations according to the specificities of the markets in which they operate. Important contributions to the Uppsala model, with regard to the process of passing stages, learning and networking. The findings of this study have similarities to the process described as a sequence of distinct phases of activities.
Social implications
A local top management team is essential to deal with institutional issues of government agencies when EMNE is internationalized in a culturally distant market. When there are major institutional differences between the country of origin and the host country, the autonomy in the management of the foreign subsidiary positively influences the acceleration of the internationalization process of companies in the high-tech sector. When there are major institutional differences between the country of origin and the country of destination, the use of local social networks positively influences the acceleration of the internationalization process of companies in the high-technology sector.
Originality/value
Regardless of these limitations, the study provided an exciting case of internationalization of a Chinese company in Brazil operating in a high-tech medical sector. The challenges for the internationalization of EMNEs continue, which makes it opportune for future studies to include more research in this area. The propositions suggested in the study may be the first step.
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Sara Melén Hånell, Emilia Rovira Nordman and Lars-Gunnar Mattsson
This study addresses the research question: How does the experiential knowledge, superstitious knowledge and the wisdom of CEOs influence the internationalization behaviour of…
Abstract
Purpose
This study addresses the research question: How does the experiential knowledge, superstitious knowledge and the wisdom of CEOs influence the internationalization behaviour of SMEs?
Design/methodology/approach
An exploratory qualitative study is used. Longitudinal case studies of two Swedish life science companies are analysed.
Findings
An individual's prior experiential knowledge influence the newly started SME's market commitments and internationalization behaviour. Such prior experiences can enable early and rapid resource commitments in the newly started SMEs. Relying upon such prior experiential knowledge in deciding upon the company's market commitments however heightens the risk of superstitious learning. The findings illustrate how wisdom can work as an antidote to superstitious learning. Wisdom lures even experienced CEOs away from believing they know more than they actually know.
Research limitations/implications
The study contributes to extend the Uppsala model by incorporating the role of individual-level experiential knowledge. The study also adds value to the literature on small firm internationalization by providing propositions for how the prior knowledge of individual key decision makers influences SMEs' internationalization behaviour. The propositions provide new input to the ongoing discussion in the literature and help to guide future research.
Originality/value
Given the fact that the Uppsala model is centred upon a firm-level view on experiential knowledge, our theoretical understanding is still limited regarding how individual-level experiential knowledge influences the internationalization behaviour of SMEs. This study addresses calls for research on how individuals' prior knowledge influences small-firm internationalization.
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Renan Oliveira, Ariane Roder Figueira and Bernardo Silva-Rêgo
The aim of this study is to propose a link between international business (IB) and economic geography, which are two streams of thought that have developed without one…
Abstract
Purpose
The aim of this study is to propose a link between international business (IB) and economic geography, which are two streams of thought that have developed without one acknowledging the other. We use the Uppsala model and the Global Production Network as pillars to sustain this link. We expect that this research triggers a collaboration with allied social sciences in important debates surrounding the business-societal interface.
Design/methodology/approach
We selected papers produced by Johanson and Vahlne to understand the development of the Uppsala model over 40 years. The same was done with the Global Production Network, where we scrutinized the work of Henderson, Coe, Dicken, Hess and Yeung – scholars from the Manchester School of Geography – in the last twenty years. Based on Humphrey et al. (2019), we applied an inductive and inferential approach to uncover similarities and differences between the Uppsala model and Global Production Network.
Findings
The Uppsala model reinforces the strategic role of network position in the internationalization process, while the Global Production Network aims to explain how the governance of global firms scattered world-wide affects the development and upgrading opportunities of the various regions and firms involved. Despite these clear differences, the geographical nature of IB and shared similarities accounting the network as a channel to foster and provide access to important resources and practices regarding management, coordination and governance of dispersed parts of multinational enterprises give room to using these two theories as pillars to link IB and economic geography.
Originality/value
While attempts to link IB and economic geography are not new, none of these studies have focused on the Uppsala model and Global Production Network as pillars to create a link. We foresee an intense cross collaboration and an even possible renaissance of IB and economic geography to target the ever-changing business environment and its impact on social and economic development.
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Paloma Almodóvar and Alan M Rugman
The purpose of this paper is to analyse insidership vs outsidership, enriching the revisited Uppsala model with the resource-based view, transaction cost economics and…
Abstract
Purpose
The purpose of this paper is to analyse insidership vs outsidership, enriching the revisited Uppsala model with the resource-based view, transaction cost economics and internalisation theory. The authors also address empirical gaps affecting the role of dyadic business relationships (BRs) (customers/suppliers/research institutions/competitors) and business networks and their effect on international performance. Finally, the authors research whether insiders’ firm-specific advantages have a stronger effect on international performance than outsiders’.
Design/methodology/approach
The authors work with an unbalanced panel data set of 14,231 firm-observations (period: 2000-2010). First, the author use ANOVA models (with pooled and panel data) in order to test the Uppsala basics. Second, the authors refine the research through dynamic Tobit models.
Findings
The authors find that insiders perform significantly better than outsiders. When analysing the impact on international performance, the authors confirm that not only do dyadic BRs with customers or suppliers have a positive effect, but so do BRs with research institutions; however, business networks with customers and suppliers have a negative impact. Finally, when testing interactions, the results point at technological skills as an alternative means to overcome the liability of outsidership.
Originality/value
Prior studies on this topic have been broadly focused on testing the original Uppsala (1977) model. However, the authors advance it by reconciling the revisited Uppsala (2009) model with the main international business theories as well as testing and refining its content in line with Johanson and Vahlne’s guidelines.
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Melanie Luise Krenn, Guido Bortoluzzi and Dietmar Sternad
Building on recent developments in the Uppsala model, we first examine the role of business model innovation (BMI) in the internationalization process of firms and then determine…
Abstract
Purpose
Building on recent developments in the Uppsala model, we first examine the role of business model innovation (BMI) in the internationalization process of firms and then determine to what extent international experience and psychic distance have a moderating effect between BMI and the success of a firm’s international initiatives.
Design/methodology/approach
We apply a multiple hierarchical regression model to a sample of 168 firms of two border regions in Italy (Friuli Venezia Giulia) and Austria (Carinthia).
Findings
We find empirical support for the moderating role of both psychic distance and international experience in the relationship between business model innovation and the success of internationalization initiatives.
Originality/value
The paper contributes to the evolutionary perspective of the internationalization process of firms by adding new aspects related to the role of business model innovation to the most re-cent developments of the Uppsala model. From an empirical point of view, the paper contributes to the literature by identifying and testing two boundary conditions that shape the relationship between BMI and international success.
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Gadaf Rexhepi, Veland Ramadani, Amir Rahdari and Grisna Anggadwita
This paper aims to emphasize the importance of crafting and selecting business models and strategies of family business in the process of internationalization.
Abstract
Purpose
This paper aims to emphasize the importance of crafting and selecting business models and strategies of family business in the process of internationalization.
Design/methodology/approach
Based on literature review about international entrepreneurship, strategic management, models and strategies of internationalization, a new conceptual framework on family businesses internationalization is provided.
Findings
Family businesses, depending on their size, use different models and strategies to internationalize their activities.
Originality/value
This paper provides a new conceptual framework about internationalization of family businesses, which is based in three main phases: operating in a domestic market and get prepared for a foreign market, selecting the right model of internationalization and selecting the right strategy of internationalization. Beside the new conceptual model, the authors provide the implications of this model toward internationalization of family businesses, and the authors propose some useful recommendation for further research in this field.
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