The internationalization process model through the lens of the global color picture tube industry

Abstract

AbstractInternationalization theories from economics and international business disciplines suggest that products are launched, and production facilities established, sequentially in industrialized, newly industrialized, and finally, in developing countries. From a firm level perspective, operations management researchers have proposed descriptive models of generic roles of international factories. But little has appeared in the economics, international business, or operations management literature that compares these two views or provides much empirical evidence to support divergent claims. In this paper, we compare both perspectives and shed insight into factory roles through a detailed examination of data on plant practices and performance in the global picture tube industry. Our analysis suggests that existing theory and descriptive models do not possess enough explanatory power to adequately predict or describe the dynamics of product and production loci today. We highlight the need for a new theory by contrasting today's global business realities with those of yesteryears.