Development of the Uppsala model of internationalization process: From internationalization to evolution

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AbstractResearch SummaryI explain how the Uppsala model of the internationalization process progressed from explaining internationalization to explaining evolution. Initially, empirical findings led to the formulation of a model, later named the Uppsala model, driven by the interplay between experiential learning and commitments to expand the business into new foreign markets and deepen engagements in existing markets. Later, conceptions led to networks becoming a key ingredient in the model. As a result, globalization, geographical extensions and reconfigurations, and coordination changes were shown to follow the same pattern of learning and commitments as internationalization did. More recently, other dimensions in firms' evolution, such as R&D, and organizational and strategic change processes appear to follow similar processes of learning and commitments.Managerial SummaryI explain how the Uppsala model of the internationalization process changed from explaining internationalization to explaining evolution. Superior profitability depends on not waiting until everything is known but rather managing under uncertainty, preferably acting before competitors do, which is risky, and this risk must be kept at an acceptable level. This is possible not only by learning from experience, as was proposed in the initial version of the model, but also from engaging with a network of partners and actors in the relevant field of knowledge, as a subsequent revision of the model acknowledged. The latest version of the model highlights the importance of evolution in the access and development of knowledge, with performance depending on both environmental change and managerial action.