Internationalisation processes: an analytical framework

Sérgio Fernando Loureiro Rezende

doi:10.1590/s1415-65552003000200008

Abstract

In this article we propose a framework for analysing internationalisation processes, manifested through a sequence of servicing modes. A servicing turn is, in turn, the institutional arrangement whereby firms operate in foreign markets. The framework borrows conceptual notions from the literature on foreign market entry, internationalisation and subsidiary development. Three implications for empirical studies are subsequently suggested. First, it is argued that internationalisation processes should be analysed in light of intra and inter-organisational relationships embedded in distinct spatial and temporal contexts. Secondly, the framework takes into account not only incremental but also discontinuous internationalisation processes. Thirdly, it is proposed that internationalisation processes are endless phenomena and, therefore, should consider sequences of servicing modes that take place in the foreign market where the entry mode is originally embedded as well as in foreign markets reached from the initial host country.

Highlights

Internationalisation processes have received theoretical and empirical insights from studies based on the perspectives on foreign market entry (e.g. Anderson and Gatignon, 1986; Buckley and Casson, 1998a, 1998b; Dunning, 1998), on internationalisation (e.g. Johanson and Wiedersheim-Paul, 1975; Johanson and Vahlne, 1977, 1990) and, more recently, on subsidiary development (e.g. Birkinshaw, 1996, 1998; Birkinshaw and Hood, 1997)
These two traditions are the economic and the behavioural models of internationalisation. The former can be illustrated by the perspective on foreign market entry, while the latter can be illustrated by the perspective on internationalisation and subsidiary development
As its operations are viewed as locally-bound, we argue that the Uppsala model may explain internationalisation processes up to the point where the highest resource commitment mode is established in a particular foreign market, usually represented by local manufacturing(2)

Summary

Introduction

Internationalisation processes have received theoretical and empirical insights from studies based on the perspectives on foreign market entry (e.g. Anderson and Gatignon, 1986; Buckley and Casson, 1998a, 1998b; Dunning, 1998), on internationalisation (e.g. Johanson and Wiedersheim-Paul, 1975; Johanson and Vahlne, 1977, 1990) and, more recently, on subsidiary development (e.g. Birkinshaw, 1996, 1998; Birkinshaw and Hood, 1997). The framework borrows conceptual notions from the perspectives on foreign market entry, internationalisation processes and subsidiary development. It has been suggested that the process of internationalisation is gradual, through which firms commit resources to and increase knowledge of a particular foreign market incrementally.

Objectives

Results

Conclusion