Abstract
The Uppsala model explains the traditional internationalisation process of multinational enterprises (MNEs), which gradually begin to internationalise from countries with smaller psychic distances. However, in the turbulent global economy, an increasing number of MNEs from emerging markets (EMNEs) adopts a more radical and aggressive approach, strategically using international expansion as a springboard to enter an overseas market and radiate surrounding countries and regions. By combining the springboard perspective and the Uppsala model, we analyse a series of processes from EMNE’s first entry into an overseas market to the successful localisation and expansion of international business. This radical model of international expansion has not been thoroughly studied. This empirical study aims to address this research gap by using a qualitative method and an in-depth case study. This paper conducted a semi-structured interview with 16 expatriates, executives, and middle-level managers from the case company in 2016. As one of the few single case studies that systematically studies the internationalisation process of EMNEs and provides first-hand empirical evidence, it contributes to practice and provides a contextual reference for EMNEs.
Highlights
The paper “The Uppsala internationalisation process model revisited: From liability of foreignness to liability of outsidership” published by Johanson and Vahlne (2009) offers revisions to the original Uppsala model (Johanson and Vahlne 1977), keeping the theory alive when discussing the conditions for multinational firms entering and expanding into foreign markets
Through integrating the springboard perspective and the Uppsala model, our study theoretically extends the springboard perspective with new contextual findings and provide fruitful information to explain a new path for the internationalisation of emerging multinational enterprises (EMNEs)
By exploring how EMNEs overcome the liability of outsidership through a sequential choice when attempting to internationalise, this research aims to make several significant contributions
Summary
The paper “The Uppsala internationalisation process model revisited: From liability of foreignness to liability of outsidership” published by Johanson and Vahlne (2009) offers revisions to the original Uppsala model (Johanson and Vahlne 1977), keeping the theory alive when discussing the conditions for multinational firms entering and expanding into foreign markets. The original Uppsala model concerned the psychic distance between home and host countries and took this distance as a basic concept, studying the firm’s decision-making process in internationalisation (Johanson and Vahlne 1977). Given today’s greater VUCA conditions (volatility, uncertainty, complexity and ambiguity) faced by EMNEs (Gao et al 2021), we need a better understanding of how EMNEs tackle the liability of outsidership under certain sequences and steps
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