The internationalization process in companies located at the borders of emerging and developed countries

Abstract

PurposeDespite geographical proximity, major economic differences exist between Western European countries and the formerly socialist Eastern European countries. The main objective of this study is to develop a better understanding of internationalization decision processes in this specific context.Design/methodology/approachBy means of multiple case study research, six Austrian and five Hungarian companies in order to extend and refine existing theory on internationalization decisions given the current situation in Central Europe are analyzed. In particular, the paper uses extant literature to build a conceptual framework from which we derive propositions as a basis and a guide for data collection and analysis.FindingsIn addition to cost considerations, process and product innovations are becoming increasingly important dimensions in explaining the reasons for internationalization projects. The reasons for internalization and solutions (relocated products and processes, entry mode and location) are closely interrelated.Originality/valueAlthough this framework for the internationalization decision process is applied in a very specific context, the authors believe that the framework can also be very helpful in understanding these decision processes in a more general setting. In particular, companies in other regions where developed and emerging countries are relatively close to one another might be able to utilize our framework and results (in Asia or America).