Purpose By bringing together the IB and IE literatures, the purpose of this paper is to examine the internationalization process as an entrepreneurial process related to the development of international opportunities. It explicitly connects different types of knowledge (i.e. market and internationalization), international opportunities and the internationalization process comprising both new foreign market entry and sequential moves that happen after entry. Design/methodology/approach This is a conceptual paper that reviews the literature on knowledge, opportunities and the internationalization process. Moreover, the paper identifies the current gaps in the literature and builds new theory that sheds light into how these three concepts are related. The paper also presents a model and propositions that should guide future research. Findings The proposed model shows that market and internationalization knowledge combine to form the international knowledge stockpile of the firm, which moderates the relationship between the development of international opportunities and the internationalization process, comprising not only new foreign market entry but also sequential moves that happen after entry using either mode continuation or modal shift. Moreover, it shows that the development of opportunities only leads to modal shifts after a certain threshold is achieved. Research limitations/implications The propositions suggest that market and internationalization knowledge are positively related to international opportunities, which, in turn, are related to foreign market entry and sequential moves using mode continuation. International opportunities, however, are related to modal shifts only beyond a threshold. Moreover, the international knowledge stockpile of the firm moderates the relationship between international opportunities and the internationalization process. Because this is a conceptual paper, the propositions have not been tested and, therefore, lack empirical validation. Nonetheless, the model is a starting point to new research on internationalization distinguishing different types of knowledge as well as different sequential moves. Originality/value This study shows that the internationalization process is contingent on the different types of knowledge associated with it. It also introduces the idea of a threshold that shapes the internationalization process. The bulk of the research on internationalization suggests that such a process is gradual and incremental. This study offers a non-linear alternative.
Purpose -The purpose of this paper is to establish a conversation between international business and international entrepreneurship literatures by analyzing if and how international opportunities are related to the internationalization process of the firm.Design/methodology/approach -This paper reports finding from a backward-looking longitudinal, qualitative, embedded case study of an internationalized Brazilian firm, covering all 13 foreign markets where the firm has operated over 18 years.Findings -Modal shifts within foreign markets were rare. Over time, the firm learned how to refine, rather than change, the servicing modes within each foreign market; it also learned how to better develop internal and exploitative opportunities, manage a portfolio of servicing modes across foreign markets, and use more complex mode servicing packages. Overall, international opportunities and the internationalization process of the firm were inextricably connected.Research limitations/implications -The authors acknowledge limitations related to the statistical generalizability of the research method and suggest that statistical validation is needed as the research on opportunities and the internationalization process of the firm progresses.Practical implications -Internationalizing firms should carefully consider the choice of entry mode in foreign markets. They should also understand that learning is not necessarily associated with change.Originality/value -The authors show that the internationalization process of a traditional firm can be analyzed through an opportunity lens. This means associating characteristics of international opportunities with mode continuation and modal shifts in all foreign markets where the firm operates.
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