Internationalization Process Of Firms Research Articles

The Internationalization of Brazilian Design Firms: What do We Know?

This study investigates the internationalization process of Brazilian brand design firms. The following research question inspired the study: What are the characteristics of the internationalization of these firms? The study, of a technical nature, is based on secondary sources, complemented by personal interviews with specialists. The results show that the design sector in Brazil is still very fragmented, and that internationalization of design firms is incipient.

O Impacto dos Recursos do Desempenho Exportador de Empresas Pertencentes a Clusters: um estudo no setor vitivinícola francês

The purpose of this paper was to analyze theimpact of resources on export performance ofclustered companies. We argue that the insertionin clusters provides access to resources thatinfluence the internationalization process offirms. We conducted a survey in the French wineindustry, the main consumer market in volume andsecond largest producer of wine in the world. Thepopulation of the study includes exporting Frenchwineries, located in clusters. The sample consistsof 130 French wine exporters, located in differentwine clusters. In short, the results indicated thataccess to cluster’s resources has a positive impacton the process of internationalization and exportperformance of companies. One managerialimplication of the research is the importanceof commercial resources. The firms with higherexport performance attributed greater importanceto their commercial resources. Further studiesmay measure the utilization of resources in theinternationalization strategy, and compare theimportance and the use of resources in accordancewith the level of export performance of companies.

The Role of Knowledge in the Internationalization Process: A Research Study from the Czech Republic

The knowledge plays in the process of the internationalization of entrepreneurial activities key role. The lack of such knowledge is an important obstacle to the development of international operations and that the necessary knowledge can be acquired mainly through operations abroad. The objective of this paper is to present an overview of the role of the knowledge for internationalization process of the selected Czech firms. The internationalization of the entrepreneurial subjects has been researched using the method of questioning. Company age and international experience are significant factors influencing the knowledge of foreign markets in Czech companies. Based on the results of analysis the influence of knowledge level on the internationalization process of Czech companies is minimal.

Financial Needs of Internationalized Firms

This paper is a conceptual work on financial needs generated by the internationalization process of firms, especially non-large ones, in their life cycle. The forms of internationalization considered are trade (export and import) and foreign direct investment (FDI).A careful analysis of the literature reveals a dearth of research on this specific topic; in fact, the financial side of international business theory is poorly treated and the study of financial needs is often included in other types of financial inquiries (e.g., financial benefits, financial constraints, raising capital or credit abroad). The conceptual analysis is developed in the phases of a generic life cycle to understand whether the financial requirements for specific international actions are amplified or moderated. In the first phase of the cycle, the financial needs are amplified with respect to type of strategy chosen; the growth stage implies a continual need for cash flows; and the financial conditions of the maturity phase tend to moderate fund demands. This study is the first to explain the effects of internationalization actions on financial needs.

Explicating the Reverse Internationalization Processes of Firms

ABSTRACTReverse internationalization (RI) is a crucial phenomenon in a world of globalization; however, research on RI remains scarce. In light of the 2008–2009 economical global crises, many internationalizing firms worldwide have deinternationalized. Given that scholars and functionaries have been sending warning signals about imminent global crisis, revisiting the RI domain and its drivers is a timely and important research area.This study uses a qualitative approach with a prime objective of exploratory work and theory development of RI. The study explicates the RI phenomenon further, proposes a broader RI conceptualization and an operational definition, and develops propositions and a model to direct future research and assist managers. Grounded in data emerged from field in-depth interviews of senior managers, findings show that RI emerges as a multifaceted formative construct reflecting a reduction in firms’ activities on one or more explicit dimensions. Various internal and external factors foster RI. Since firms apply sophisticated forms of international involvement, RI domain should address its wide-ranging forms with a clearer and richer view that facilitates its conceptualization. Managers learn to pay attention to likely scenarios where episodes in internationalization may arise and lead to RI and of ways to approach them.

Model hodnocení úspěšnosti malých a středních podniků v procesu internacionalizace

The paper deals with evaluating the success of small and medium-sized companies in in­ter­na­tio­na­li­za­tion process. The process of internationalization is defined in the literature in a many ways; there is a countless variety of different approaches and models of internationalization process of firms. Like all processes in the firm also the internationalization process is accompanied by risks. For risk management it is important to know what the key factors of success are in the international arena. In this article is presented a simple evaluation model that could be used by SMEs to determine not only how strong are they compared to competitors, but also at what level are their key success factors in the process of internationalization. The aim was to find a simple method to help small and medium enterprises to assess their situation in the field of internationalization and to help them identify their strengths and weaknesses in this area. Proposed simple evaluation model has the graphic output from which it can be seen in which areas the company is doing well in internationalization process and in what areas is doing badly – then there is room for further improvement. Creating the model it was essential to divide the various factors into several groups and further evaluation to determine the range by which SMEs can quantify the level of success in internationalization process. Before the model was constructed it was necessary to collect data among small and mid-sized firms, and to process the outputs of the survey. After confirmation or to rejection of the certain hypotheses key success factors of SMEs in the internationalization process were selected and these factors were then aggregated into 4 groups. The model was then applied to data obtained from a survey of 40 SMEs and in the paper there are presented specific examples of graphical output of the model for the best and worst rated company. Authors are aware that the model is simple and has its limits, there is the need of much more work and the authors foresee further modifications of this model.

Identifying international market opportunities: the case of Italian companies in Egypt

Purpose – The purpose of this paper is to investigate the differences and relations between Italy and Egypt and to identify main risks and opportunities for Italian firms that aim to operate in Egypt. Design/methodology/approach – The paper presents a qualitative analysis realized through some semi-structured questionnaire and a case study. Findings – High cultural difference, legal uncertainty and administrative instability are main problems in internationalization process of Italian firms in Egypt. Despite these problems, Italian firms still invest in Egypt because of economic opportunities and possible interactions. Originality/value – While interest towards Southern Mediterranean countries is increasing, there is little written on this topic. This article aims to fill the gap in literature on internationalization in emerging markets.

Commonalities and differences between production-related foreign direct investment and technology-related foreign direct investment in developed and emerging economies

This paper investigates commonalities and differences in firm-level determinants of internationalization of production (production-related investments or PFDI) and innovation (technology-driven investments or TFDI) by multinational enterprises. Our database is based on a cross-country survey which includes firms within Automotive, Agro-processing, and Information and Communication Technology sectors from both developing and advanced economies. Our results show that despite some differences, most of the determinants affect in a similar manner both the PFDI and TFDI which rather contradicts recent arguments claiming significant differences between the two. More interestingly, however, we found that institutional determinants such as policies related to foreign direct investments play almost no role in internationalization process of firms while managerial (internal to the firm) determinants had a far greater impact.

International entrepreneurship at the crossroads between innovation and internationalization

In the last years, the global economy has undergone a dramatic change. Developed economies face the challenge of new players from emerging countries, slow growth problems, and even recession, combined with a weaker entrepreneurial activity (Amoros andBosma, 2014). This new economic order calls for a significant reshaping of competition, which leverages on the interplay of the discovery/enactment of new opportunities, the ability to create innovative value propositions and lead them to success, and the capacity to mobilize and manage resources at the global level. In other words, this new economic landscape requires a combination of entrepreneurship, innovation, and internationalization. Internationalization and innovation are two major options to achieve firm growth. Traditionally, these two routes to growth have been studied separately and only recently innovation and internationalization are increasingly seen as being strongly interrelated, with entrepreneurship representing the trait d’union between the two (Onetti et al. 2012; Etemad and Keen, 2012; Zucchella and Siano 2014). Entrepreneurial posture and the attitude to change and innovation play a central role in the internationalization process of both established firms and born global firms, especially in new, rapidly changing environments. However, the intersection of innovation, internationalization, and entrepreneurship is a field of study with a number of research gaps. In the first place, the causal relationship between innovation and internationalization is controversial. A large body of literature argues that international firms tend to exploit their superior innovative capabilities in several markets (e.g., Pla-Barber and Alegre, 2007; Kafouros et al., 2008; Cassiman and Golovko, 2011; Denicolai et al., 2014). According to other scholars, the relationship between innovation and internationalization is almost insignificant, and even negative (e.g. Hitt et al. 1997). Secondly, much of the international new venture literature is implicitly based on innovative and high-technology firms, the role of innovation in other sectors and in different typologies of international entrepreneurship (for example, immigrant entrepreneurs), types of business models which enhance the interplay between internationalization and innovation, etc. remain under-investigated. J Int Entrep (2014) 12:111–114 DOI 10.1007/s10843-014-0130-8

The Role of Partnerships in the Internationalisation Process of Small Knowledge Intensive Firms (SKIFs)

There is important evidence that Small Knowledge Intensive Firms (SKIFs) have demonstrated some unique characteristics in their internationalisation process. The process takes place earlier in the life of the firm and develops due to the role played by partnerships. The paper analyzes three different SKIFs through a cross case study method. We build on different process based models that have studied the internationalisation process of international ventures. The findings show that the SKIFs internationalisation consists of a series of phases characterised by triggering factors. The paper sheds new light into which type of partnerships mostly matter in the growth of SKIFs.

Internationalisation process of Malaysian firms: the mediating effects of motivation and network

This research examines the internationalisation process of large Malaysian firms by focusing on identifying the effect of mediating forces between internationalisation advantage and internationalisation intensity. A total of 100 Malaysian firms participated in this research. Using regression and hierarchical multivariate regression analyses (HMRAs), researchers found the mediating effect of motivation on internationalisation advantage and internationalisation intensity, which indicated a full mediation effect. The results further indicated that network has partial mediation effect on the relationship between internationalisation advantage and internationalisation intensity. The theoretical and practical implications of these findings were also discussed.

Domestic Business-to-Business Relationships and the Internationalization of SMEs

Relationships and networks are considered to play an important role in the internationalization process of firms. Our paper addresses this issue, by investigating the link between domestic business-to-business relationships and the internationalization of firms using a sample of 502 Swiss small and medium-sized enterprises (SMEs). Following a two-step approach we analyze how transactional relationships between SMEs and domestic companies listed at the stock exchange influence the export propensity and export intensity of SMEs. Our empirical results reveal heterogeneous effects of these relationships. While the domestic business-to-business relationships increase the export propensity of SMEs they decrease their export intensity.

An international learning typology: strategies and outcomes for internationalizing firms

Purpose– The purpose of this paper is to understand the role of heterogeneous strategies for new knowledge development in the internationalization processes of firms.Design/methodology/approach– A typology of international learning strategies is developed. The typology is supported by a case study of seven Swedish international firms that show heterogeneous strategies. The case study suggests links between learning strategies and international growth.Findings– The results suggest an international learning-strategy typology derived from extant theory on knowledge acquisition in internationalization, constituted by four types: Passive Learners, Endogenous Learners, Exogenous Learners, and Diversified Learners. The results further suggest that the typology is empirically relevant and, moreover, suggest a potential heterogeneity in outcomes for these strategies. The study suggests that there is a link between learning strategy and outcomes in terms of growth and international sales distribution.Research limitations/implications– The strategy for how firms learn when internationalizing has implications for the firm's international growth. The case-study design has limitations for generalizability and future quantitative validation is called for.Practical implications– Managers need to be aware of the consequences of their learning strategy for the internationalization performance. This study informs strategic decision making for how to learn from international markets.Originality/value– The results suggest a typology based on heterogeneity of international learning strategies and their consequences for internationalization.

Relationships and knowledge in the firm internationalization process

Based on the variables relationship and knowledge, this article aimed at analyzing how a multinational enterprise selects an entry mode to operate in a particular international market and how this initial choice evolves over time. We devised a rather new theoretical framework to address it by combining three theoretical approaches that have dealt with the firm internationalization: the Uppsala model, the relational approach, and the subsidiary development literature. We constructed a qualitative backward-looking longitudinal case study of the internationalization process of a North-American multinational enterprise in the Brazilian market. Results show that four types of relationships and three types of knowledge played the role in the events that characterized the internationalization of this firm. Based on these results, five new hypotheses concerning the interplay between relationships and knowledge in the internationalization process of the firm are suggested for future empirical tests.

The role of home country political resources for Brazilian multinational companies

This paper aims to analyze the interactions between home country governments and Developing Country Multinational Companies (DMNCs). Drawing on evidence from the Brazilian political environment and Brazilian multinationals we investigate the mechanisms governments use to influence the internationalization process of domestic companies and firms' political strategic responses to shape the political institutional environment in which they operate. We argue that foreign direct investment (FDI) outflows from developing economies need to be explored given specific country level contextual factors, such as high levels of government involvement. Our main findings support this idea and indicate that home country governments use a series of formal and informal mechanisms in order to drive the international expansion of DMNCs in both the entry and consolidation phases. Moreover, DMNCs political behavior in the home country political environment accounts for an important part of their strategy to develop political resources and obtain above average returns from governmental benefits.

Internationalisation process of African banks: an exploratory study

Purpose – Research investigating the internationalisation process of firms from Sub‐Saharan Africa (SSA) is limited. The purpose of this paper is to draw on extant work on internationalisation theory to propose an integrative framework that investigates the internationalisation process of African banks.Design/methodology/approach – Using a qualitative, case‐based approach, the study explores the distinct cases of four banks (three in Nigeria and one in Kenya/Mauritius) and explores their internationalisation behaviour and pathways to understand how they have leveraged their ability to internationalise their businesses.Findings – The findings illustrate how the internationalisation pathways of African banks are shaped by a balancing act of leveraging accumulated global and regional strengths to achieve international growth and expansion.Research limitations/implications – The study acknowledges that it draws from a limited empirical base on a very important topic and in so doing it provides directions for ...

DOES THE UPPSALA INTERNATIONALIZATION MODEL EXPLAIN THE INTERNATIONALIZATION PROCESS OF PROFESSIONAL BUSINESS SERVICE FIRMS?

The aim of this contribution is to verify if the Uppsala Model with later variations introduced by the authors is the right framework to explain internationalization process of Professional Business Service Firms (PBSFs). The focus is placed on the entry of one type of PBSFs, namely advertising agencies into the Chinese market. The example is based on a case study. This paper deliberates about identified factors in the internationalization process of advertising agencies that fit to the Uppsala model and about factors that deviate from it. Several stages are identified in the entrance of advertising agencies into the Chinese market. These are as follows: initial stage - external agent, participation stage - representative office, establishment stage - joint venture, network expansion stage – branch offices and other joint ventures. The presence of stages suggests that the Uppsala model may prove useful in explanation of foreign entry strategies in PBSFs in general. In addition to that, support is also found for market entry due to networking activities. Client following was identified as most common entry mode in the studied group of PBSFs.

Fast fashion companies coping with internationalization: driving the change or changing the model?

PurposeThe purpose of this paper is to investigate the relationship between the fast fashion formula and the process of firm internationalization. Possible answers are sought to the following research question: does the fast fashion formula drive the internationalization process (driving the change), or does the internationalization process change the model (changing the model).Design/methodology/approachThe paper presents and discusses the data collected during a ten‐year longitudinal case analysis of an Italian fast fashion company. Three main steps in the firm's international expansion are identified, and the firm's strategies for managing its fast model in each are then discussed.FindingsThe findings highlight how the process of internationalization has exerted pressure on the firm's business model. In particular, the case reveals that the company's international development has had a strong impact on three main components of its fast fashion model.Originality/valueThe paper contributes to previous work on fast fashion by focusing on the sustainability of such models during international expansion, a key theme which has to date received little attention in ongoing academic debate on the fast fashion phenomenon.

The Internationalization of Indian Pharmaceutical Firms: A Comparison of Entry Mode Theories

The purpose of this paper is to understand and explain the internationalization process of Indian pharmaceutical firms through a variety of entry mode theories. Eight competing theories of entry mode are applied to the case and compared for their relative efficacy in explaining the internationalization process of Indian pharmaceutical firms. Structural equation modeling approach applied to 230 product-market entry mode data points from 20 companies over a five-year period is used to test for competing theories. The results show that resource based theory is the most suitable to explain the internationalization process of Indian pharmaceutical firms.

Local and international networks in small firm internationalization: cases from the Rhône-Alpes medical technology regional cluster

This study explores the internationalization processes of small firms operating in the medical technology cluster in the Rhône-Alpes region in France. The study demonstrates that both the location and the sectoral type of industry cluster influence the internationalization and network dynamics in the cluster. In addition, both local and international networks influence firm internationalization processes in different ways. First, the firm life-cycle, industry and locational cluster dynamics determine the extent of network influence on firms' internationalization processes. Second, two types of internationalizing firms emerge in this study: born global firms, led by proactive entrepreneurs and globally market-orientated firms from inception, and born-again globals, which engage in late but rapid internationalization as a result of new management or foreign acquisition. Third, local networks in the cluster are important for influencing the internationalization of the born global firm at inception. In contrast, international networks serve as the main impetus for re-launching internationalization for the born-again globals. Fourth, the local research institutions and their connections abroad help both born globals and born-again global firms develop and internationalize their innovations rapidly in the global marketplace.