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Article
Publication date: 4 March 2014

Michelle 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…

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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.

Details

Journal of Fashion Marketing and Management, vol. 18 no. 1
Type: Research Article
ISSN: 1361-2026

Keywords

Article
Publication date: 1 October 2006

Mitja Ruzzier, Robert D. Hisrich and Bostjan Antoncic

The purpose of this paper is to understand the similarities and differences in the internationalization of SMEs and MNEs and the specific factors affecting them.

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Abstract

Purpose

The purpose of this paper is to understand the similarities and differences in the internationalization of SMEs and MNEs and the specific factors affecting them.

Design/methodology/approach

The relevant literature was reviewed particularly in the context of the major theories of internationalization.

Findings

The positive and negative aspects of each theoretical approach to internationalization are present to form the basis of a new model of international entrepreneurship.

Research limitations/implications

The newly developed conceptual model has not been empirically tested.

Originality/value

A redeveloped theoretical integrative conceptual model of international entrepreneurship is proposed based on four internationalization properties (mode, market, product, and time), internationalization performance, and key antecedents and consequences of the internationalization process.

Details

Journal of Small Business and Enterprise Development, vol. 13 no. 4
Type: Research Article
ISSN: 1462-6004

Keywords

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: 1 June 2005

Graham Elkin, Faiyaz Devjee and John Farnsworth

Purpose – There are few means of measuring whether universities have effective international programmes or policies in response to increasing globalisation. The purpose of this…

3556

Abstract

Purpose – There are few means of measuring whether universities have effective international programmes or policies in response to increasing globalisation. The purpose of this paper is to report on the development and testing of a model for measuring the internationalisation of universities and to assist with the strategic planning of interationalisation. Design/methodology/approach – The 11‐dimension model was developed as a result of a literature search and interviews with academic and non‐academic university staff. The model was trialled with a range of New Zealand and overseas universities. Findings – The model received widespread support as a useful way of conceptualising and visualising the internationalisation of universities. Measurement of internationalisation was demonstrated. The model was useful for the facilitation of the planning of investment in the various dimensions that make up internationalisation. The “star” model displayed both the current and ideal levels of internationalisation in visual form for an institution. It can be used to make systematic decisions about future institutional activity resource investment. Research limitations/implications – The testing is limited and will need to be extended to other countries, types of universities, faculties, departments and programmes. Originality/value – The model is useful to those who manage the intenationalisation of univerities, clarifying the concept and making systematic action to increase internationalisation possible.

Details

International Journal of Educational Management, vol. 19 no. 4
Type: Research Article
ISSN: 0951-354X

Keywords

Article
Publication date: 8 May 2017

Simone Guercini and Matilde Milanesi

The purpose of this paper is to identify the defining characteristics of the extreme luxury fashion business model (ELFBM) and the relationship between this business model and the…

6246

Abstract

Purpose

The purpose of this paper is to identify the defining characteristics of the extreme luxury fashion business model (ELFBM) and the relationship between this business model and the process of firm internationalization. The paper examines the potentially positive outcomes of differences and distances in the internationalization process of extreme luxury fashion companies.

Design/methodology/approach

The paper presents and discusses the data collected during a five-year case analysis of an Italian luxury company. The main characteristics of the business model are identified in terms of products, manufacturing and sourcing, distribution channels, marketing communications and overall characteristics of consumers. The internationalization process is described, with a focus on the Russian market as an emblematic case, highlighting the role of distances – geographic, psychic and cultural – and liabilities, namely foreignness and outsidership in the international expansion of the firm.

Findings

The findings of this paper highlight the main features and specific traits of the ELFBM characterized by a global and unique approach to the offer. This business model has in its origin the demand from certain foreign markets, and the elements of the country of origin of the firms coexist and are enhanced by the presence of specific characteristics of the destination countries in terms of niche consumers with economic and cultural characteristics and a strong perception of “Made in” and luxury goods.

Originality/value

The paper contributes to previous studies on the relationships between business models and internationalization. It provides a framework for the “ELFBM,” in which internationalization is a constitutive element of a specific business model rather than a strategy for a business model already defined. Examining the positive side of differences and distances in the internationalization process of firms adopting such business model, the paper contributes to the international business theory and practice. It also expands research on luxury fashion defining an international company which is under-investigated, the extreme luxury fashion company, and the elements that constitute its business model.

Details

International Marketing Review, vol. 34 no. 3
Type: Research Article
ISSN: 0265-1335

Keywords

Article
Publication date: 5 June 2017

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.

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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.

Article
Publication date: 1 February 1999

Long W. Lam and Louis P. White

Stage models have benefited global managers by seeing internationalization as an evolutionary and learning process that involved making careful and incremental changes. What the…

1211

Abstract

Stage models have benefited global managers by seeing internationalization as an evolutionary and learning process that involved making careful and incremental changes. What the stage models lack, however, are specification of internal problems and hurdles that managers will face during this organizational change process. We attempted to fill this knowledge gap by exploring types of managerial dilemmas that organizations will confront as they internationalize. This adaptive choice process of internationalization was discussed in this paper through the case of a domestic company during its overseas expansion. Our research shows that the internationalization process often creates managerial dilemmas for organizations in terms of strategic, structural, and human resource changes. There are also strong interactions among these dilemmas such that the decision regarding one dilemma may often impact how other dilemmas can be resolved Firms that are able to resolve these dilemmas, while considering their interactions, can become more successful in their internationalization process. These findings were developed into propositions regarding how companies can manage the process of internationalization more successfully. We also addressed specifically how the adaptive choice model would complement the stage models and enrich our understanding of the corporate internationalization process.

Details

The International Journal of Organizational Analysis, vol. 7 no. 2
Type: Research Article
ISSN: 1055-3185

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…

1415

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: 30 October 2007

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…

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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.

Details

Critical perspectives on international business, vol. 3 no. 4
Type: Research Article
ISSN: 1742-2043

Keywords

Book part
Publication date: 27 October 2015

Deirdre McQuillan and Pamela Sharkey Scott

The leading frameworks of internationalization have contributed significantly to our knowledge of how firms internationalize, but do not fully explain how firms actually create…

Abstract

The leading frameworks of internationalization have contributed significantly to our knowledge of how firms internationalize, but do not fully explain how firms actually create and capture value from customers when internationalizing their activities. Understanding the value creation and capture activities defining their business model(s) is critical for firms moving into less familiar markets, and is particularly relevant for service firms where variability is an inherent feature of the firm/client experience. To address this gap, we take a business model perspective to analyze 144 internationalization events of 10 professional service firms. We find that the case firms adopted four different business models when internationalizing, and that single firms may utilize portfolios of business models. Our findings contribute to both the services internationalization and business model literatures by showing how variability in the internationalization process substantiates the need for business model portfolios.

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