Asynchronicities of growth: a process extension to the Uppsala model of internationalisation

Abstract

AbstractWe contend that the Uppsala internationalisation process (IP) Model offers the basis, yet unrealised, for a process theory of growth of the internationalising firm. From the Model’s origins, particularly in Penrosean theory, we develop this potential by offering a theory extension that explicates the organisational changes within the firm required to sustain international growth. This repositioning distinguishes us from previous attempts to amend, supplant or extend the IP Model. In developing the theory extension, we specify how we remain faithful to the IP Model’s behavioural assumption ground. We provide a model of the internationalising firm that posits non-linear growth paths. This is due to the challenges of synchronising the external opportunity seeking of the firm as it expands internationally with the internal capacity building required to realise these opportunities. Introducing to the IB field this asynchronicity problem, an absence of temporal concurrence, we show its potential in explaining organisational changes and discontinuities in the internationalising firm’s development as it seeks to grow. By extending the IP Model to offer a theory of growth of the internationalising firm, we provide the basis for further process scholarship on this topic that addresses contemporary concerns and developments.