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Article
Publication date: 9 November 2015

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…

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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.

Details

International Marketing Review, vol. 32 no. 6
Type: Research Article
ISSN: 0265-1335

Keywords

Article
Publication date: 7 January 2022

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.

Details

International Marketing Review, vol. 39 no. 1
Type: Research Article
ISSN: 0265-1335

Keywords

Article
Publication date: 7 November 2019

Bernardo Frossard Silva-Rêgo and Ariane Roder Figueira

The purpose of this paper is to analyze the main contributions of the new institutional economics to the international business (IB) arena. It also intends to show how the NIE is…

Abstract

Purpose

The purpose of this paper is to analyze the main contributions of the new institutional economics to the international business (IB) arena. It also intends to show how the NIE is being incorporated to both eclectic paradigm and Uppsala school’s view, and how it is modifying them.

Design/methodology/approach

A range of IB articles, which contained an institutional view and also discussed the eclectic paradigm or the Uppsala school, provides the background to build a framework.

Findings

This paper proposes a framework showing the impact of the institutional variables on the internationalization of firms, by addressing both the OLI paradigm and Uppsala school. It also concludes that the institutional theory has been a point of intersection between the OLI paradigm and Uppsala school, since both have been renewed to understand the transaction costs borne by the firms in their international learning process and in the search for less asymmetrical information.

Research limitations/implications

This paper provided a brief discussion about the institutional components.

Practical implications

This study is a useful source of information for those who want to discuss the institutional impact in the IB arena and emerging markets.

Originality/value

This paper summarizes how the OLI paradigm and Uppsala school encompassed the institutional variables. It also presents a framework that allows new study possibilities since the understanding of the influence of institutional variables on the international movements of firms is still cloudy.

Details

International Journal of Emerging Markets, vol. 14 no. 5
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 15 February 2016

M. Cristina Stoian, Alex Rialp, Josep Rialp and Robin Jarvis

The purpose of this paper is to investigate the internationalisation of small firms from a Central and Eastern Europe (CEE) country with an emerging market economy, while…

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Abstract

Purpose

The purpose of this paper is to investigate the internationalisation of small firms from a Central and Eastern Europe (CEE) country with an emerging market economy, while accounting for the constantly changing institutional framework as well as resource (un)availability which may influence their involvement in foreign market operations. In doing so, it supports the applicability of the revised Uppsala internationalisation process model (2009), which highlights the key role of networks for international activity.

Design/methodology/approach

This study is based on a qualitative approach leading to multiple case studies. The main source of data is semi-structured, in-depth interviews conducted within six small firms.

Findings

The revisited Uppsala model proves to be generally valid for the small firms analysed in this study. Networks play a crucial role for knowledge creation and exchange, and frequently represent the most reliable resource at firms’ disposal. Trust is an indispensable ingredient that shapes network relationships. Institutional changes acted as push factors for small firms’ internationalisation.

Research limitations/implications

Policy-makers and entrepreneurs should direct their efforts at encouraging international network building and the formation of partnerships. Specific policy-driven actions should facilitate the connection between (international) entrepreneurs and potential foreign business partners.

Originality/value

This study brings insights to the revised Uppsala model, particularly considering the continuous and relatively rapid changes within the institutional environment that interact with the experiential learning curve and resource accumulation and subsequent commitment to foreign markets. Furthermore, it is one of the few studies that address the internationalisation of small firms from a CEE economy.

Details

Journal of Small Business and Enterprise Development, vol. 23 no. 1
Type: Research Article
ISSN: 1462-6004

Keywords

Article
Publication date: 24 May 2013

Jan-Erik Vahlne and Jan Johanson

This paper seeks to offer a model on the evolution of the multinational business enterprise (MBE). It is meant to be an alternative to the eclectic paradigm, the preeminent…

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Abstract

Purpose

This paper seeks to offer a model on the evolution of the multinational business enterprise (MBE). It is meant to be an alternative to the eclectic paradigm, the preeminent theoretical tool applied in studies of the multinational enterprise (MNE) and foreign direct investment. The label MBE aims at moving focus from structure of production to change processes in business relations and entrepreneurship.

Design/methodology/approach

While the eclectic paradigm is grounded in neo-classical economics meant primarily to be applied in studies of macroeconomic interest and is based on assumptions not applicable in studies of individual firms, the model of the MBE is meant to be used in studies at the micro-level. It is rooted in assumptions consistent with behavioural theory consequently being more realistic. The model is based on the Uppsala model with input from studies on dynamic capabilities, entrepreneurship research and research on management under uncertainty.

Findings

The realistic assumptions of the model imply that it is relevant for understanding the dynamics of strategy and management of the MBE.

Research limitations/implications

As the model aims at enriching our understanding of the dynamics of the MBE the paper recommends empirical longitudinal studies of firms.

Originality/value

Realistic and relevant assumptions imply that the model differs in critical respects from received theory in international business.

Book part
Publication date: 11 August 2014

Jan-Erik Vahlne and Jan Johanson

In this paper we describe the evolution of the Uppsala model, which we see as a gradual substitution of economics-type assumptions with ones derived from the behavioral theory of…

Abstract

In this paper we describe the evolution of the Uppsala model, which we see as a gradual substitution of economics-type assumptions with ones derived from the behavioral theory of the firm and from empirical studies of international firm behavior. We rely upon them to introduce a new version of the Uppsala model. To decrease the traditional focus on the activity of manufacturing and increase attention to the entrepreneurial and exchange activities of international companies, we renamed these firms “multinational business enterprises” (MBEs). We end with a plea to improve the relevance of empirical research in the international-business (IB) area by not only relying upon realistic assumptions but also performing longitudinal studies.

Details

Multidisciplinary Insights from New AIB Fellows
Type: Book
ISBN: 978-1-78441-038-4

Keywords

Book part
Publication date: 10 December 2018

Jurema Tomelin, Mohamed Amal, Aurora Caneiro Zen and Pierfrancesco Arrabito

Internationalisation became an important component of science parks (SPs) practices. In recent years, they have started to include, among the portfolio of their services, the…

Abstract

Internationalisation became an important component of science parks (SPs) practices. In recent years, they have started to include, among the portfolio of their services, the support and fostering of their tenant firms’ internationalisation, such as soft-landing programmes and international immersion experiences for start-ups. Thus, the main aim of this chapter is to analyse these internationalisation practices in the light of the network and internationalisation theories. Based on an exploratory multiple case study the authors conducted in three Brazilian SPs located in the South of Brazil (Rio Grande do Sul State) – Tecnopuc in Porto Alegre, Tecnosinos in São Leopoldo and Feevale Techpark in Campo Bom. The authors provide evidences on how cohesive internal and external ties, networks as well as the level of specialisation are the key drivers of the internationalisation process of SPs and their tenant firms.

Details

International Business in the Information and Digital Age
Type: Book
ISBN: 978-1-78756-326-1

Keywords

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

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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: 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…

1402

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

Book part
Publication date: 16 August 2014

Anne-Maria Holma

This study provides a comprehensive framework of adaptation in triadic business relationship settings in the service sector. The framework is based on the industrial network

Abstract

This study provides a comprehensive framework of adaptation in triadic business relationship settings in the service sector. The framework is based on the industrial network approach (see, e.g., Axelsson & Easton, 1992; Håkansson & Snehota, 1995a). The study describes how adaptations initiate, how they progress, and what the outcomes of these adaptations are. Furthermore, the framework takes into account how adaptations spread in triadic relationship settings. The empirical context is corporate travel management, which is a chain of activities where an industrial enterprise, and its preferred travel agency and service supplier partners combine their resources. The scientific philosophy, on which the knowledge creation is based, is realist ontology. Epistemologically, the study relies on constructionist processes and interpretation. Case studies with in-depth interviews are the main source of data.

Details

Deep Knowledge of B2B Relationships within and Across Borders
Type: Book
ISBN: 978-1-78190-858-7

Keywords

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