Interactive internationalization : the case of Swedish firms (original) (raw)
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Interactive (networked) internationalization: the case of Swedish firms
European Journal of Marketing, 2011
Purpose -The purpose of this study is to provide deeper insights into the extent to which an independent actor(s) actively collaborates with the internationalizing firm so as to jointly determine the choice of market, the mode of entry and the level of investment committed in the market to be entered and even after the entry (i.e. the ongoing activities). Design/methodology/approach -Against the previous purpose section, a qualitative research approach is selected to guide the exploratory nature of this study. Thus qualitative data are used to build the two case studies because case studies are generally a more appropriate approach when "how" and "why" questions are being posed and when the investigator has little control over events. Findings -Based on two multiple case studies, one major finding of the study shows that independent actors, with their interconnected networks, have played and are still playing a major role in influencing the internationalization processes of each of the two firms in this study. Originality/value -This is an original paper developed based on two case studies which have not been published in any journal before. The paper highlights the role of external independent actors in internationalization, which is not mentioned at all or stressed in the extant literature.
On the internationalization process of firms: a critical analysis
Journal of International Business Studies, 1993
Even though international marketing has been challenged because of theoretical and methodological shortcomings, very few researchers have actually attempted to analyze the weaknesses based on principles of theory evaluation. In this article, the author examines two types of models addressing the individual rirm's internationalization process. A theory evaluation is performed based on the explanation and the falsification criteria. In order to improve the internationalization models, some measures are proposed.
Int. Journal of Business Science …, 2008
The question addressed in this paper is: Is non-sequential internationalization process solely technology enabled or a product of mutually interdependent forces? It is shown in this paper that even though the sequential approach in the process model is intuitively appealing, not all firms follow such a path. This void is filled by explaining how the international market entry process has changed with respect to the sequential approach. Data collection entails 60 Swedish SMEs operating in other countries and foreign SMEs operating in Sweden that tends not to develop in incremental stages with respect to their international. Findings include: that the sequential model is by no means reflective of, or appropriate for all firms' approaches to international business; the usefulness gained by using an international relationship approach to study the international activity of a firm; and the interplay between the identified driving forces behind a non-sequential internationalization process. Knowledge acquired from the empirical study is used to develop an integrated framework which aptly depicts that non-sequential internationalization process is not solely enabled by technology, as commonly envisaged in literature, but a product of mutually interdependent forces. Implications include: all firms are exposed to irrecoverable transaction costs that hamper their behaviours and complicate export supply responses in international markets. However, the magnitude of the costs and speed of internationalization is dependent on the ability of the firms to take advantage of the enablers of non-sequential internationalization pattern. This is particularly important for firms to and from developing countries and emerging markets and their propensities to succeed in their internationalization endeavours.
Internationalization revisited: the big step hypotheses
Publication of the Department of …, 2000
We refine the prominent theory of the process by which firms expand internationallyinternationalization theory. By augmenting the behavioral theory of the firm (which is the basis of internationalization theory) with theories of foreign direct investment, we argue that international expansion is not a gradual incremental process as argued by internationalization theory. Rather, we hypothesize that international expansion is a discontinuous process characterized by an initial "big step." We expect that the differences of operating in one's home country versus abroad are the major difficulties faced by foreign firms, and subsequently the differences between foreign countries are only marginal. As a result, we hypothesize that the internationalization process will be characterized by the following observations: (a) firms take a long period of time to make their first international investment; (b) firms take shorter but constant periods of time for subsequent investments; and (c) no relationship between time to expansion and the cultural distance of the target country will exist. We examine the international expansion activities of 176 Danish firms over 150 years and find support for these arguments.
Relationships and knowledge in the firm internationalization process
Based on the variables relationship and knowledge, this article aimed at analyzing how a multinational enterprise selects an entry mode to operate in a particular international market and how this initial choice evolves over time. We devised a rather new theoretical framework to address it by combining three theoretical approaches that have dealt with the firm internationalization: the Uppsala model, the relational approach, and the subsidiary development literature. We constructed a qualitative backward-looking longitudinal case study of the internationalization process of a North-American multinational enterprise in the Brazilian market. Results show that four types of relationships and three types of knowledge played the role in the events that characterized the internationalization of this firm. Based on these results, five new hypotheses concerning the interplay between relationships and knowledge in the internationalization process of the firm are suggested for future empirical tests.
THE IMPACT OF NETWORKS ON THE INTERNATIONALIZATION PROCESS OF ESTONIAN FIRMS
Network membership (both through long-term relationships with foreign suppliers and buyers and joining the foreign owners' network) can facilitate the Estonian companies' foreign expansion, providing them with necessary resources and capabilities, but sometimes also inhibit it. The ownership ties might lead to extensive foreign support, but reduced strategic autonomy.