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1 – 10 of 193This chapter introduces and discusses the concept of turning points from the ontological, epistemological and methodological perspectives, applying it to the…
Abstract
This chapter introduces and discusses the concept of turning points from the ontological, epistemological and methodological perspectives, applying it to the de-internationalization phenomenon to exemplify its deployment. As a concept that adds to the variance and complexity of the international business and management field, the turning point is seen as a valuable unit of analysis within the research field. It is expected that this chapter will encourage a dynamic scholarly conversation about the concept of turning point and how it can aid international business researchers in the development of a generalizable international business and management theory.
Andrea Kuiken, Robert Wentrup and Roger Schweizer
This paper aims to examine the de-internationalization process to determine how different forms of attitudinal commitment influence the de-internationalization process.
Abstract
Purpose
This paper aims to examine the de-internationalization process to determine how different forms of attitudinal commitment influence the de-internationalization process.
Design/methodology/approach
Because of the exploratory nature of the study, a case study design is used. Two cases of Swedish companies, which de-internationalize from the French market, are studied.
Findings
Different commitment profiles influence the de-internationalization process. In particular, a general commitment profile, in which affective, normative, instrumental and continuance commitment play a role, influences the timing of de-internationalization, while the effort directed toward the execution of de-internationalization is mainly influenced by normative commitment and the extent of de-internationalization mainly by instrumental commitment.
Research limitations/implications
By offering three propositions regarding the four types of commitment and the effects of these commitment types on the process of de-internationalization, the authors contribute to the literature on de-internationalization and the commitment literature.
Practical implications
The findings suggest that there is a risk that managers continue to commit resources to a market for a longer period without clear benefits because of affective and continuance commitment. As local employees persist in committing to the local market because of continuance commitment, offering viable alternatives reduces commitment to the foreign operations.
Originality/value
Distinguishing between different types of commitment, the paper builds on a more fine-grained typology of commitment than previous internationalization literature. Thereby, the paper opens up for new insights in the de-internationalization process.
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The purpose of this paper is to critically diagnose the current body of knowledge on de-internationalisation from the perspective of its various antecedents and implications for…
Abstract
Purpose
The purpose of this paper is to critically diagnose the current body of knowledge on de-internationalisation from the perspective of its various antecedents and implications for firms and to identify key research gaps and formulate recommendations for future research.
Design/methodology/approach
Contrary to many reviews of international business literature, this paper adopts a deductive approach by applying theory-driven dimensions of internationalisation to extant research so as to identify key developments and research gaps.
Findings
Among existing studies, attention has been consistently devoted to divestments, reductions of operating modes and foreign market withdrawals, while neglecting other crucial dimensions. Moreover, while financial effects of divestments have been frequently studied, the competitiveness implications of de-internationalisation have widely been neglected.
Research limitations/implications
Further research should consider de-internationalisation phenomena from the viewpoint of several interrelated aspects, as well as shift attention from studying failure to studying optimisation. More attention should be devoted to changes in the organisation of multinational enterprises in line with a changing degree of internationalisation.
Practical implications
The review provides a comprehensive synthesis of extant knowledge on the antecedents, forms and outcomes of de-internationalisation, which is of particular interest for decision-makers responsible for international expansion. This topic has been mostly neglected due to the sensitive character of the underlying decisions. The understanding of the determinants and consequences of de-internationalisation processes can contribute to a more conscious management of foreign operations.
Originality/value
The paper draws on the research paradigm of strategic management research, as well as international business literature, to refine the understanding of de-internationalisation and provide a contribution to this still under-researched area.
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Colin Turner and Paul D. Gardiner
The paper aims to examine the process of de‐internationalisation through an analysis of British Telecommunications' (BT's) experience. There is – to date – little research upon…
Abstract
Purpose
The paper aims to examine the process of de‐internationalisation through an analysis of British Telecommunications' (BT's) experience. There is – to date – little research upon de‐internationalisation, this paper aims to contribute to the debate through assessing how businesses with a strong domestic position would respond to a turbulent commercial environment.
Design/methodology/approach
The key research issue is addressed in the paper via the use of a single case study.
Findings
The paper finds that BT, throughout the 1990s, developed an aggressive global strategy. However, by the 1990s, BT was in a process of retreat. This failure was influenced by the form and nature with which this strategy was executed, which resulted in a declining commitment to an aggressive global strategy. With the failure of the global strategy, BT reverted to a more defensive corporate strategy.
Originality/value
The paper makes a contribution through adding to an emerging debate on the form and nature of de‐internationalisation. This process is explored from the standpoint of a business that has sought to pursue an aggressive international strategy whilst sustaining a commitment to a strong domestic position. The paper highlights how de‐internationalisation is linked into the form and nature initial strategy.
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Martina Barbaglia, Roberto Bianchini, Vincenzo Butticè and Stefano Elia
This study investigates how firms’ awareness of sustainability affects the revision of their internationalization strategy. Adopting a resource-based view (RBV) approach, the…
Abstract
This study investigates how firms’ awareness of sustainability affects the revision of their internationalization strategy. Adopting a resource-based view (RBV) approach, the authors argue that sustainable-oriented firms have a higher propensity to de-internationalize (i.e., to go back to their home country) when confronted with the need to relocate foreign manufacturing subsidiaries, as the shortening of value chains would allow the reduction of transportation emissions and enhanced corporate image as green-oriented entities. Furthermore, the authors explore the role exerted by a stringent regulatory setting in the home country on the likelihood of de-internationalization. The empirical test conducted on a sample of relocations performed across European nations in 2002–2014 reveals that multinational enterprises (MNEs) – regardless of their sustainability orientation – have a higher probability to de-internationalize when their home countries have strict institutional contexts in place.
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Jonas Onkelinx, Tatiana S. Manolova and Linda F. Edelman
In this chapter, we explore the effect of export exit on subsequent firm performance in a sample of 13,629 Belgian small and medium-sized enterprises (SMEs). We find that firms…
Abstract
In this chapter, we explore the effect of export exit on subsequent firm performance in a sample of 13,629 Belgian small and medium-sized enterprises (SMEs). We find that firms that stop exporting have lower profitability and profitability declines even further after they exit foreign markets. Firms that were highly dependent on revenues from exports and firms exiting multiple markets are more negatively affected, as reflected in lower post-exit survival rates and profitability. However, export duration or exiting institutionally distant markets does not have a significant impact on subsequent firm performance. Finally, although firm performance is negatively affected by exit, failed internationalization does not always lead to firm failure. Theoretical and practitioner implications are discussed.
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Andrea Calabrò, Ulrike Mayrhofer and Alfredo Valentino
This paper aims at extending the debate on family firm internationalization by identifying cycles and waves of their internationalization processes with a specific focus on…
Abstract
Purpose
This paper aims at extending the debate on family firm internationalization by identifying cycles and waves of their internationalization processes with a specific focus on de-internationalization and re-internationalization.
Design/methodology/approach
Building on the Uppsala model and the resource-based view, this study analyzes the cycles and waves of internationalization of 26 German family firms in the Chinese market. Semi-structured interviews with top managers of the selected case firms were conducted, and secondary sources were used to triangulate the collected data.
Findings
The findings highlight the heterogeneity of family firm internationalization processes. Indeed, some family firms follow the sequential approach of the Uppsala model, while others choose to de-internationalize and then re-internationalize their activities. Their cycles and waves of internationalization can be explained by internal and external triggers.
Originality/value
This article contributes to the family firm internationalization literature by investigating how family firm characteristics and environmental factors shape internationalization, de-internationalization and re-internationalization paths. The novel findings enrich theoretical assumptions on family firm internationalization and highlight their varying internationalization processes, which can be explained by firm-specific characteristics, notably their unique family resources and socioemotional wealth, and contextual factors.
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Esteban Lafuente, Maria-Cristina Stoian and Josep Rialp
The purpose of this paper is to examine export behaviour from a broad perspective considering the influence of entrepreneurial attributes on export entry, export sustainability…
Abstract
Purpose
The purpose of this paper is to examine export behaviour from a broad perspective considering the influence of entrepreneurial attributes on export entry, export sustainability and de-internationalisation in Romanian small- and medium-sized enterprises (SMEs).
Design/methodology/approach
Based on theoretical underpinnings from the resource-based view (RBV) of the firm and the Institutional Economics (IE) framework, the proposed hypotheses are tested with a rich survey data set of 319 Romanian SMEs. The data are analysed by means of a multinomial logit regression.
Findings
The study reveals that exporting is not a single event and that variables commonly used to study export propensity linked to the entrepreneurial attributes have a differential influence over the export decisions. More concretely, export entry is positively impacted by the presence of management studies and an entrepreneurial team while sustainment in the international arena is strongly and positively influenced by decision-makers’ prior labour experience. De-internationalisation is explained by the entrepreneurs’ fear of business failure. The conclusions of this study point towards a holistic view of export policy making revealing relevant implications for SMEs’ internationalisation.
Originality/value
This study enriches the international business literature by simultaneously examining different export decisions, namely export initiation, sustainability and de-internationalisation, at the SMEs’ level in a Central and Eastern European (CEE) emerging market. The paper also highlights the dynamic character of entrepreneurial resources and suggests that at distinct stages in the international development of a SME, different entrepreneurial attributes may play a significant role.
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Susan Freeman, Seyda Deligonul and Tamer Cavusgil
Current conceptualizations of born‐globals lack a full theoretical explanation of strategic re‐structuring through the use of outward and inward‐oriented activity and the…
Abstract
Purpose
Current conceptualizations of born‐globals lack a full theoretical explanation of strategic re‐structuring through the use of outward and inward‐oriented activity and the processes of de‐internationalization and re‐internationalization. Strategy and internationalization processes are created by entrepreneurial behaviour. If one wants to understand various international behaviours and strategic changes in firms one needs to focus on entrepreneurs – individual managers. The purpose of this paper is to unify the theoretical framework on born‐globals by addressing two questions. How do managers move through the de‐internationalization (exit) to re‐internationalization (re‐entry) process? How do they choose their patterns of internationalization?
Design/methodology/approach
To address these research gaps, this study draws on 26 in‐depth interviews with senior managers across nine Australian born‐globals.
Findings
Moving between outward and inward‐oriented activity as they de‐internationalize and re‐internationalize is used as proactive strategic re‐structuring by born‐global managers for survival during periods of global economic decline or changing competitive conditions.
Originality/value
This study provides new theoretical insights where the entrepreneur is central to the internationalization process and provides practical implications for those involved in international business and marketing.
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Colin Dale, Thomas Osegowitsch and Simon Collinson
Global trading of oil and gas means international markets are more open than at any previous time. As a result, the oil industry oligopoly is being deconstructed and vertically…
Abstract
Global trading of oil and gas means international markets are more open than at any previous time. As a result, the oil industry oligopoly is being deconstructed and vertically integrated MNCs are being reconstituted to address this fact. In parallel, emergent MNCs in the form of National Oil Companies are now entering the competitive arena. Traditionally dominant MNCs are adopting new operating models focused on technological and financial strength. We examine changes in the once-dominant industry paradigm of vertical integration using several theoretical lenses. These include transaction-cost economics, the resource-based view and institution theory. The giant MNCs operated globally for decades and are an important variant of the MNCs studied in strategic management literature. We suggest the current theoretical models do not explain sufficiently how these MNCs respond to current changes and by using industry observation we contribute to modernization of this literature.
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