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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.

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.

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.

Models of speed of internationalization have been built on narrowly defined resources, emphasizing the intangibles at the cost of tangibles and relying on controlled resources while overlooking nonterritorial ones. We build an integrative model for both established and unestablished firms, using three determinants of speed – global value chain experiences, resource adjusted expected return from internationalization and existence of e-commerce platforms. The first is under firms’ control while the last two are partially controlled or totally uncontrolled. Five strategies of internationalization are identified – internationalization through accelerated marketization, delayed internationalization, opportunistic (or on/off) internationalization, IB internationalization, and alliance internationalization, each associates with a different speed of internationalization.

The purpose of this study is to examine how business group (BG) affiliation influences the export propensity of new ventures (NVs). To help address the inconsistency of past research on the value of BG affiliation for firms seeking to expand their business abroad, the authors provide a contingency perspective by exploring how organizational characteristics and BG characteristics condition the value of BG affiliation. The authors analyze the impact of BG affiliation on the export propensity of NVs, including the factors that condition this impact, by using a sample of 2,874 European NVs. The primary contribution of this study is to determine the impact of BG affiliation on the export propensity of NVs, including the moderating effects of firm size on the BG affiliation–export propensity relationship. The findings show that the export propensity of NVs affiliated with BGs is significantly higher than for stand-alone NVs. However, the findings demonstrate that the impact of BG affiliation on export propensity depends on the network characteristics of the BG in terms of the geographical dispersion of network ties. Consequently, the findings suggest that BG affiliation provides advantages for NV exporting only if it provides access to international inter-firm networks thus acting as a compensatory mechanism for liability of outsidership and liability of newness in foreign markets. In such cases, BG affiliation is a major resource capital that equipoises the somewhat limited financial resource provision for NV internationalization.

To analyze the internationalization pattern of newly established firms in view of Johanson and Vahlne’s (1977, 2009) contributions.

We analyze all 2,390 Norwegian new ventures established in 2003 that export in the period 2003–2011.

We find three different groups of exporters in this cohort: the True Born Globals that start exporting the same year as they are established, and that export further away and to more countries than the other groups. We surmise that these firms fit the revised version of the Uppsala school of internationalization (Johanson & Vahlne, 2009) and are less hindered by “liability of outsidership.” The second group, Born Regionals, export already the second year after foundation, but to countries closer to Norway but to more than one country. Late-comers – starting three years after foundation or later – follow a more traditional path to international markets more in accordance with the original contribution by Johanson and Vahlne (1977).

Our analyses are based on secondary data provided by Statistics Norway. Whereas this gives us data on the total population, we lack information on more specific factors that may explain this pattern more precisely.

This is to our knowledge the first contribution that tests elements of the Uppsala school (pace of international expansion and psychic distance) in a country’s total population of newly founded firms.

Is a born-global strategy reflective of high performance or are there merits in a regional strategy? In studying a sample of 32 internationalizing small-and medium-sized enterprises (SMEs), we find that many of the early internationalizing firms that formally meet the accepted “born-global criteria” are actually regional. With this concept as a starting point, this study aims to contribute to the literature on early internationalizing firms by comparing how born globals (BGs) and born regionals (BRs) differ in terms of the liability of foreignness, networking activities and performance. Our results indicate that both liability of foreignness and knowledge development in networks is more challenging for BGs than for BRs, and for this reason, BRs are likely to perform better than BGs. Hence, we identify a “born global disadvantage” stemming from a lack in the capacity of acquiring relevant foreign-market knowledge and tackling foreign-market institutions. The implications of the study highlight the need for researchers and practitioners to be more careful when using the concept of BG and to acknowledge that differences do exist between regional and global business strategies.

Business networks are of critical importance to firms and essential to the internationalisation of born-global and international new venture firms. Networking literature focuses on what are, generally, co-operative relationships and their effects between actors, activities and resources and illustrate the importance of quality and change in the networking process. Utilising Fletcher and Harris’ (2012) framework for understanding knowledge acquisition processes in internationalisation, this study investigates the importance of direct and indirect roles played by third parties in the networking for internationalisation processes of three different firm types within the knowledge-based natural health products (NHPs) (pharmaceutical) sector in Canada. The research presented here examines nine case studies of Canadian NHP firms and reveals that they utilised all network-related internationalisation processes simultaneously to internationalise including Johanson and Mattsson’s (1988, 1994) network theory, Johanson and Vahlne’s (2003) updated the Uppsala Model and the resource-based perspective on network theory (Ruzzier et al., 2006). They networked with and extensively utilised third parties, including government bodies, trade associations, government advisors, consultants and other domestic networks with international ties, in Canada and internationally to gain technical, market and internationalisation knowledge, and direct and indirect experiential knowledge which contributed to the internationalisation process confirming the study by Fletcher and Harris (2012). In a departure from the literature, this study found that weak ties (Granovetter, 1973) developed with third parties who were new to the networks allowed the NHP firms to develop competitive advantages necessary for them to overcome the liability of outsidership in entering new international markets. The type of technical, market and internationalisation knowledge gained, its content and the direct and indirect sources of knowledge from third parties were all shown to contribute to the internationalisation process.

Current internationalisation and international business (IB) theories are silent on the intermittent internationalising experiences of small and medium size enterprises (SMEs) from emerging economies (EEs). The aim of this chapter is to examine the role that networks play in facilitating SMEs from EEs subsequent behaviour following intermittent (exit and subsequent re-entry) internationalising experiences, and to build the theory of this process. Internationalisation of SMEs is a complex phenomenon. Utilising qualitative interview-based data from 15 Pakistani and Chinese SME entrepreneurs, industry experts and government representatives, this study concludes the following: SMEs from EEs continuously reconfigure existing products, resources and markets through networks while reducing and reviving levels of commitment with partners in international markets. Additionally, entrepreneurs from these markets proactively choose to dissolve existing relationships, withdraw from foreign markets to seek new partnerships and diversify resources to reduce foreign market uncertainty. However, some SME entrepreneurs seek to re-enter into previous markets utilising prior relationships and networks. Hence, successful management of network relationships over time is a challenge for internationalising SMEs.

Purpose – The purpose of this chapter is to suggest a dynamic framework to investigate foreign market mode choices of small- and medium-sized enterprises (SME) over time.

Design/methodology/approach – We introduce a dynamic economic perspective drawing on the behavioural Uppsala Internationalisation Model (UIM) and the economic Transaction Cost Economics (TCE) framework. Often stigmatised as being static, TCE can benefit from the dynamic nature of the UIM. The UIM framework, however, can benefit from the economic determinants of the TCE.

Findings – We test the framework and our hypotheses in a dataset of 206 internationally operating German SMEs with the two data points initial and subsequent mode choice in the same foreign market. Thereby we demonstrate the hypothesised shifting effects of asset specificity and learning on the chosen foreign market mode over time.

Originality/value: The contribution of this chapter is on the link between the UIM and TCE. Particularly for SMEs, dynamics are relevant due to limited international experience and the notion of efficiency is important due to resource constraints. The investigation along the two data points, initial mode and subsequent mode, provides new insights into the effects of asset specificity and learning over time.