Process Of International Expansion Research Articles

Internationalization of SMEs: Relevance of the Theories and Antecedents

Scholars have paid close attention to developing several theories and models for the internationalization of small and medium-sized enterprises. These theories and models explain the firm strategic directions and gradual process of international expansion. This theoretical literature review aims to comprehensively examine the wide array of literature relating to theories and models of SME internationalization and the antecedents of internationalization. This study looks at the connections and contrasts between various internationalization theories and models, discusses their shortcomings, and provides theory-based insights to SMEs in understanding the internationalization process. Further, this paper examines the different antecedents of SME internationalization and prior empirical validations of those antecedents. According to the literature analysis, it has been identified that most SME internationalization studies are done in developed countries. Moreover, most of the internationalization theories and models are built in developed countries by observing the behavior of large firms. Hence, most of these theories and models may be insufficient to explain SME success in developing and emerging markets. Further, companies currently use more strategic approaches (such as joint ventures, and strategic alliances) to internationalize their operations. As a result, it is argued that the existing internationalization literature and theories are insufficient to explain the internationalization of SMEs in developing countries in the modern world.

Entry Strategies of Chinese High-Tech Manufacturing Enterprises to the Western Market: Post-pandemic Era and Deglobalization

In 2019, the world economy entered the most turbulent period since the financial crisis and the COVID-19 pandemic. Trade disputes intensified, geopolitical tensions and other destabilizing factors in the international community increased, and many countries imposed stricter regulatory scrutiny on foreign investment. Unilateralist, investment protectionism is prevalent, and international relations are becoming increasingly complex, which has profoundly affected the process of international expansion. Developing countries’ voices are increasing because of the rise of China and other factors. How can Chinese enterprises effectively avoid the above threats and risks and seize development opportunities through a correct entry strategy? This paper puts forward practical suggestions.

A case of outdoor education for SMEs during the COVID-19 pandemic: The mediating role of entry mode

The international expansion process of firms has been the subject of many studies, nonetheless only Western firms have become the most discussed within the literature. Fewer studies have been done with an emphasis on Southeast Asian firms. Following this issue, this study aims to investigate the most suitable strategy as well as the best entrance modes for firms to internationalize and accordingly, to offer a strategy implementation guideline for firms to enter foreign markets successfully. As the research method prerequisite, this study applies the quantitative approach. The key finding of this study indicates that there is a strong positive relationship between firms’ international expansion and foreign market entrance. Additionally, this study’s finding is also considered a useful guideline for the SME manager to internationalize or enter the foreign market, especially during the hits of the COVID-19 Pandemic.
 Keywords: COVID-19; entry mode; international expansion; outdoor education; SMEs.

Do political and business relations help emerging markets' SMEs in their national and international expansion? Evidence from Brazil and China

PurposeThis study aims to understand whether business and political relations help emerging markets' SMEs to overcome the challenges posed by low institutionalization in their national and international expansion. It focuses on the role that these relations play in determining access to government funding and contracts and to market information and business-related knowledge.Design/methodology/approachThe data were collected from 828 SMEs in Brazil and China. The data analysis was developed in two stages: the first stage was based on multivariate regression analyses using the ratio of sales outside the companies' region of origin divided by total sales as a dependent variable and the survey's answers as independent variables; outward sales were taken at two different levels – national and international – to consider: (1) the different stages in the national and international expansion process, and (2) the fragmented nature of domestic markets in both Brazil and China. The second stage was based on a stepwise multiple regression as the relative importance of the variables was not known beforehand and the objective was to rank them according to the managers' perceptions.FindingsInformal institutions, in particular business and political relations, can help to reduce uncertainty and overcome some disadvantages associated with weak institutionalization. They do this by providing access to trusted distribution channels, improving the familiarity with different institutional environments and strengthening the management of supply chains and commercial strategies to serve markets outside their region. Also, SMEs in emerging markets getting access to private sources of funding, market knowledge and government contracts through business and political relations are in a better position to expand nationally and internationally.Originality/valueThe research shows that the domestic environment, in particular one with low levels of institutionalization, impacts negatively the national and international expansion of SMEs and, more importantly, how firms can use business and political relations to overcome the obstacles posed by this environment. The findings also have implications for theory, practice and policymaking.

Exploring the role of family ownership in internationalization: empirical investigation of Indian firms

PurposeInternationalization is an important strategy for the long-term survivability of the firms and is often influenced by the ownership groups along with the family involvement in the management decisions. The purpose of this study is to investigate empirically the outward propensities of various ownership groups such as foreign institutional investors, domestic mutual funds and lending institutions.Design/methodology/approachThis paper analyzes the moderating effects of the family’s influence on the relationship between various ownership categories and internationalization, which is measured in terms of foreign investments and export intensity. An analysis of listed non-financial Indian firms recorded during the years 2005–2019, constituting a panel of 43,928 firm-year observations was conducted by using the tobit and probit panel regression models.FindingsThe results demonstrate that internationalization of the firm is positively impacted by the foreign institutional investors and lending institutions. However, when the family ownership is moderated across the ownership categories, it can be seen that it negatively impacts the lending institutions and positively impacts the foreign institutional investors. In the case of mutual funds, no impact of family ownership in the firm’s foreign investment decisions can be seen.Originality/valueAs there are limited studies about family ownership influence on the firm’s internationalization decision in the context of India, this paper takes an inclusive approach to the changing nature of the influence of ownership on the international expansion process.

Expansion to foreign markets: Usaflex

Learning outcomes The case seeks to meet the following educational objectives: provide an understanding of the problems and opportunities faced by a company doing business in a rapidly expanding emerging market. Understand how the foreign environment and industry practices impinge on the company’s strategic conduct. Develop the ability to evaluate strategic internationalization decisions in light of considerations related to uncertainty, risk and commitment. Provide for the application of internationalization theories to a real case involving an emerging country company. Discuss new strategies for international market expansion. Case overview/synopsis This case study is about the strategic change of the Usaflex brand and how it impacted its national and international expansion. Usaflex is a Brazilian footwear company founded in 1998 and acquired in 2016 by a group of partners. The new managers started an accelerated process of national and international expansion. In the domestic market, the company adopted the franchise system and in the international market used licensed stores. In addition, the new management implemented a series of modifications, changing the positioning, design and product variety, as well as the communication strategy. This process took place in a highly negative context, with the domestic market suffering the impact of a strong recession and Brazilian footwear exports losing competitiveness in the international market. Complexity academic level The targeted audience of this case is undergraduate and MBA students of Business Management courses, specifically on International Business courses. Supplementary materials Teaching Notes are available for educators only. Subject code CSS 5: International Business.

Ключевые особенности внешней экспансии южнокорейских протестантских организаций и её основные причины

This article analyzes the process of active international expansion of South Korean Protestant organizations, continuing since the end of the 20th century. Today, based on various numerical and qualitative indicators, they could be called one of the most influential global actors in the religious sphere and partly even in international relations. On the one hand, the language and methods, which such organizations use in order to disseminate their teachings continue the centuries-old tradition of Christian missionary work, in particular the American view of it. On the other hand, they are its rethinking, that could be possible only in the conditions of modern, constantly changing, but on the whole capitalistic, deeply globalized and a democratized world, throwing new challenges to religious organizations and forcing them looking for novel ways to survive in an increasingly aggressive environment. Special attention is paid to the major reasons for the appearance of such phenomenon and its characteristic features connected with them. Based on the results of the study, the author concludes that characteristic features of South Korean Protestant organizations’ activities abroad such as interchurch competition, factionalism along with high involvement in the commercial sector and politics are directly related to the historical process of the development of this denomination on the Korean Peninsula. Therefore, despite the transnational nature of these organizations, their activities are still predominately targeted the society that gave rise to them. However, this does not prevent them from being also an instrument for expanding foreign policy influence and even an element of soft power.

The international profile of the firm

Purpose The purpose of this paper is to design a system for measuring the level of internationalisation of companies in the field of developing countries, through latent variables based on multiple indicators, external and internal orientation. Design/methodology/approach From a sample of 112 international companies in Colombia, the methodology of latent variable analysis (LPA) is applied to a series of complementary tools, such as a model of structural equations, regression models and cluster analysis of companies. Findings The paper allows to verify the identification of six latent variables and their relationships, as well as to identify four levels of internationalisation from the structure of latent variables identified. Originality/value This is the first application of this recent and sophisticated statistical technique to the field of measuring the level of business internationalisation, especially indicated in the Latin American area, where an increasing number of companies are advancing in their process of international expansion.

Polaris India International: moving boundaries

Learning outcomes To familiarize the students with a process of international expansion within an emerging market scenario encompassing countries such as India, Sri Lanka and a developing country like Kazakhstan. Mostly cases in international marketing are central to developed nations, as that is where the MNCs emerge and grow. In this case study, though Polaris originally is an US-based MNC, the focus lies on Polaris India going international. Hence, it looked at empowering an emerging market for regional development. To provide a situation for choice of entry mode strategies involving strategic alliances and various kinds of non-equity based partnerships. Here there is scope for tremendous learning with reference to institutional voids and market failures prompting a certain mode of entry strategy versus another in international marketing. Though this topic has been researched widely, this case is the first ever tribute to a real-life situation in an emerging market. The case is focussed on experiential marketing as the new tool for sales and communication. This is unique to Polaris, and worth replicating in its internationalization. The crucial question emerged: adaptation of experiential marketing techniques as per local market. Case overview / synopsis This case investigated the process of internationalization for Polaris India, a US-based MNC, making for an interesting study in how emerging markets can become hubs for effective regional market expansion. The case simultaneously explored the concept of experiential marketing in a new light referring to the issue of communication adaptation in international marketing. The company had successfully used Polaris Experience zones as their promotion and distribution tools. The PEZ had weaved its magic on Indian customers to bring about significant positive change to the perception of a brand now extending the brand promise to other emerging markets. Polaris India started as a wholly owned subsidiary of Polaris Industries USA Inc in 2011 with Mr Pankaj Dubey, as the Country Head. Polaris specialized in building world class off-road vehicles and was a global leader in the same. The case study provided an opportunity to discuss behind the scenes role played by channel partners in targeted foreign markets – Sri Lanka and Kazakhstan. In international marketing, strategic alliances are of tremendous significance as a method of entry strategy and the knowledge, depth, expertise can make all the difference to achievement of success in the local market. Polaris despite having to market a product with no readymade market and combating the perceived notion of a super-premium product in emerging markets, managed to weave its own success story. The case is about, how Polaris India went International with its choice of strategic partners and communication tools. Supplementary materials Teaching Notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes. Subject code Marketing.

Nowe koncepcje marketingu w procesie tworzenia strategii marketingowej na rynkach międzynarodowych

Celem artykułu jest krytyczna analiza możliwości zastosowania wybranych nowych koncepcji marketingu w procesie kreowania strategii marketingowych przedsiębiorstwa na rynkach międzynarodowych. Dla realizacji tego celu dokonano analizy literatury krajowej i zagranicznej z zakresu marketingu międzynarodowego. Strategie marketingu międzynarodowego powinny obejmować w swoich początkowych fazach etapy wyboru rynku zagranicznego i formy ekspansji na ten rynek. W następnej kolejności można dopiero formułować program marketingu-mix Spotykana ostatnio w literaturze marketingu koncepcja tzw. marketingu zwinnego (Agile Marketing) ma w tym przypadku niewielkie zastosowanie i odnosi się przede wszystkim do etapów realizacji strategii marketingowej na rynkach międzynarodowych. Content Marketing można stosowac przede wszystkim w polityce promocji, a Blue Ocean strategy odnosi się do wyboru rynku i polityki produktu.

Assessment and analysis of factors depicting the international expansion process of mobile network operators: case of Zain Telecom

The internationalisation of a small mobile operator into the surrounding emerging markets is an entrepreneurial and risky process due to the target markets' nature. This paper deals with market and timing factors potentially influencing the transaction costs of a company in its international ventures based on Gerpott and Jakopin's paper 'Determinants of mobile network operators' choice of cross-border entry modes'. This model did not seem to explain all factors influencing the entry mode choices of Zain Telecom. Hence, in order to understand the managerial drivers in Zain Telecom's decision-making, a holistic framework market and market entry mode selection (MEMS) model was used. This framework shed the light on many of the managerial facets of Zain's strategical decision-making and answered the following question: How did the target country, market, and timing factors contribute in shaping Zain Telecom's cross-border entry mode choices?

Assessment and analysis of factors depicting the international expansion process of mobile network operators: case of Zain Telecom

Assessment and analysis of factors depicting the international expansion process of mobile network operators: case of Zain Telecom

Development of entry location, entry timing and entry mode decision model for construction firms in international markets

The international market expansion process involves a combination of many strategic entry decisions. Most previous studies have dealt with entry location, entry timing and entry mode (ELETEM) decisions in an isolated way by considering one dimension or a combination of dimensions in particular. Although there have been various models relating to international market entry decisions, there is currently no model that attempts to integrate the factors linking the ELETEM decisions for construction firms. The purpose is to determine a linkage between the ELETEM decisions by incorporating the factors that are mutually inclusive and have significant influence on these decisions. Forty-five (45) Malaysian contractors undertaking projects in international markets responded to the survey. The findings suggested that the mutually inclusive and significant factors (MISFs) influencing the ELETEM decisions were: the firm’s ability to assess market signals and opportunities, the firm’s resources and the firm’s experience in similar works. It was observed that the firms had adopted long-term strategies, repositioned their knowledge from research and development activities and readapted their resources and experience in their global operations. The findings led to the development of the ELETEM decision model to guide interested firms in making better decisions for their future international ventures.

Internationalization pathways and the performance of SMEs

Purpose– The purpose of this paper is to examine the effect of the chosen specific internationalization pathway on the relationship between internationalization and firm performance.Design/methodology/approach– This paper analyses the internationalization pathway among small- and medium-sized enterprises which internationalize through exporting and are more limited in terms of the resources they can leverage across markets.Findings– Empirical evidence obtained from a sample of wineries in La Rioja shows that the internationalization – export performance relationship is characterized by a U-shaped curve for firms with a gradual internationalization pathway, and an S-shaped curve for firms with an accelerated internationalization pathway.Research limitations/implications– This empirical study on the impact of export intensity on performance has acknowledged the importance of costs caused by the liability of foreignness and the transaction and coordination costs involved in each market expansion process. However, it has not examined the effect of differences in absorptive and coordination capabilities at the firm level.Practical implications– The findings about the role of the specific internationalization pathway in driving export intensity and performance appear to be relevant from a public-policy perspective. Local policies aimed at promoting exports have been widely based on the argument that firms can improve their performance through increasing their level of international sales. However, empirical evidence shows that these efforts may not work as well as was thought, unless combined with the right market expansion pathway and the optimal level of exports associated with this international market expansion.Social implications– Most studies on the effect of international market expansion on firm performance have not considered the influence of the specific market expansion pathway chosen. In taking this factor into account, this paper contributes to the existing body of work by developing an integrative theoretical framework that explores how the pathway of internationalization impacts on firms’ performance.Originality/value– Most studies on the effect of international market expansion on firm performance have not considered the influence of the specific market expansion process chosen. In taking this factor into account, this paper contributes to the existing body of work by developing an integrative theoretical framework that explores how the process of international market expansion impacts on firms’ performance.

Exporters moving toward emerging markets: a resource-based approach

Purpose – The purpose of this paper is to understand whether and how specific capabilities at the firm level can sustain firms during the process of international expansion in emerging markets (EMs). Design/methodology/approach – A quantitative study was carried out, and the authors analyzed data from a sample of 271 manufacturing firms. A logistic regression was used to check for differences in the endowment of resources and capabilities of firms solely focussing on advanced markets (AMs) or extending their international scope to EMs as well. Findings – Firms that expanded their business in EMs showed a significantly higher endowment of international experience and marketing capabilities compared with firms that focussed only on AMs. The authors found that the size of the firm is irrelevant: even small firms can reach EMs by leveraging an appropriate set of capabilities. Research limitations/implications – The study is cross-sectional and cannot provide a longitudinal view of the process of capability development. Future research will be needed to detail the process of capability development during the international expansion of firms into EMs. Practical implications – Regardless of size, firms that plan to enter EMs should develop specific capabilities, especially marketing capabilities, to increase the likelihood of success. Already internationalized firms have a considerable advantage due to the knowledge they have accumulated in other markets. Originality/value – This paper advances understanding of the process of the international expansion of firms in EMs from a resource-based perspective.

Chinese multinationals and public policy

Purpose – The purpose of this paper is to examine the interaction between large Chinese firms as they internationalize and their home and host governments. Design/methodology/approach – The approach taken is that of an analysis of relevant literature and the application of a popular theoretical framework by Rugman and Verbeke to the case of Chinese firms as they expand abroad. Findings – First, the paper adapts a well-known business-government framework to analyze emerging economy issues, all in a Chinese context. Then the paper relates this analysis to the existing literature on the international expansion process of Chinese firms. The paper finds that in their attempt to seek strategic assets, Chinese multinational enterprises (MNEs) face conflicts with host countries and Western firms in which host government support for international competitiveness can be used as quasi protectionist defense mechanisms. Using the public policy and MNE framework, the paper examines several recent disputes and finds tha...

GRUPO BONAPARTE: APRENDENDO COM UMA CADEIA DE RESTAURANTES DO NORDESTE BRASILEIRO

<p>Este caso de ensino visa mostrar os desafios enfrentados por uma empresa de food service, o Grupo Bonaparte,no processo de expansão internacional. A corporação está ampliando as suas atividades para um mercado mais competitivo que é o norte-americano, com isso, vem passando por novas e difíceis situações. Alguns questionamentos permeiam as ações da empresa, a saber: Por que a corporação escolheu os Estados Unidos que é o berço do fast food, pioneiro no setor de franquias e muito mais competitivo do que o brasileiro? Quais<br />as vantagens de entrar nesse mercado? O caso pode ser utilizado nas turmas de graduação, posterior ou concomitante aos conceitos básicos de Administração Estratégica de Internacionalização de Empresas e de Marketing. Recomenda-se o uso especialmente em sessões que estratégias internacionais, marketing de serviços, estratégias de crescimento, vantagem competitiva e empreendedorismo estejam sendo discutidos.<br /><br /></p>

International development of companies in the modern system of competitive relationship

This article is dedicated to key aspects of the process of international business expansion: preconditions and factors of the international development of the company during the expansion and establishment in today's competitive relations, forms of businesses and enterprises. The authors carry out the brief structural analysis of the companies’ core strategies in terms of access to other countries’ markets; give examples of ways for international development of major Russian and foreign companies, international cooperation and building successful businesses.

Board versus TMT international experience: a study of their joint effects

PurposeThe purpose of this paper is to test the relationship between board and top management team (TMT) members' international experience and CEO multinationality, with their firm's degree of internationalization. Through the lenses of upper echelon theory, on a sample of 108 European and US firms, the author tests the variables “international experience” and “CEO multinationality”, at the board and at the TMT levels.Design/methodology/approachA longitudinal research design is used to examine director's individual attributes in 2001 and firm's degree of internationalization in 2003‐2008. The sample comprised directors of the 108 largest European and US service and industrial firms by market capitalization, as listed in the Financial Times (FT) Global index of 2007.FindingsA positive effect is found on internationalization for international experience of both boards and TMTs; also a positive relationship is found between CEO multinationality of TMTs and internationalization.Research limitations/implicationsIt is acknowledged that the use of a diversified set of large US and European public firms could add unnecessary variance due to the different contexts involved in a sample of just 108 firms. Most of the sampled firms are already international so the study does not argue for board and TMT composition as a triggering mechanism for firm internationalization but, instead, as a tool that can enhance an international expansion process. The fact that international experience is a binary variable also limits the validity of the results. Either a direct survey of directors or a continuous variable that measures the amount in years of international experience would have yielded richer data. Data availability constraints limited the scope of this variable. The chosen operationalization just measures the presence and not the depth of executive's international experience. Additionally, it is acknowledge that just eliminating supervisory board members that represent unions/workers does not completely homogenize boards from the different countries in the sample.Practical implicationsPractitioners could use these findings to improve their selection and training processes of both top managers and board members.Originality/valueThe paper extends upper echelons theory to the board of directors. The comparison of boards and TMTs will facilitate the differentiation of corporate elites. It also introduces a new study variable: CEO multinationality and finally, it uses a mixed geographical sample of large European and US firms.

The internationalisation of SMEs from China: The case of Ningxia Hui Autonomous Region

This paper aims to study the international expansion of small and medium-sized enterprises (SMEs) in an emerging economy. Mathews’ (2006: 5–27) linkage–leverage–learning (LLL) model is the framework applied to analyse the process of international expansion of SMEs. To operationalise the study of the barriers, the LLL model was linked to the work of Leonidou (2004: 279–302). The data was collected from 125 SMEs operating in Ningxia, China, and then analysed using multivariate regressions; the models used the firms’ export intensity at the regional, national and international level as dependent variables. Four models were run: two analysing the internal and external barriers hindering firms’ international expansion, and the other two models studying the characteristics of Chinese international companies (state funding and ownership) as independent variables. The results show that 12 of the barriers defined by Leonidou (2004) are hindering the expansion of Ningxia’s SMEs, that the ownership from the state does not play an important role in this expansion, and that the support from the state in the form of funds is helpful in the first stages of the expansion (regional level) and the funds from private sources are key to cross the country’s boundaries.