Managing risk and knowledge in the internationalisation process

Abstract

The internationalisation process in a company embodies a series of projects that are performed in different geographical regions. In some cases, especially in SMEs, companies are not capable of predicting the risks that will be faced during the process and they do not have suitable tools to manage the knowledge acquired in previous internationalisation experiences. Therefore, they fail to turn internationalisation into a sustainable competitive advantage. This paper reports the conclusions of a study based on both a bibliographic research and a comprehensive study of a group of industrial companies. This study includes the analysis of 37 internal reports about internationalisation experiences and the carrying out of semi-structured interviews with managers responsible for international operations. We have identified the main factors (risks) that prevent successful internationalisation processes and we have proposed a taxonomy of them. Furthermore, we have proposed a general framework (model) which provides a common perspective for all internationalisation projects, bringing coherence, and also a certain level of systematisation, to the decisions made in regards to different internationalisation projects. The model provides a systemic vision of the whole internationalisation process and we believe that companies can develop efficient learning systems based on this framework. It would give them differentiation and, therefore, help them to turn internationalisation into a sustainable competitive advantage.

Impacts of strategic project management on ntrepreneurial orientation relationship with nternationalization

“…As EO effect can depend on moderating factors internal and external (Rauch et al, 2009;Belenzon and Tsolmon, 2016), with integrated SPM system (Pennypacker and Ritchie, 2005), firms can enhance individual compatibility and inter-linkages with strategy (Teece, Pisano and Shuen, 1997;Todo and Shimizutani, 2008;Worley, Williams and Lawler, 2013). SPM assisting analysis, planning and search for sponsorship, incorporated with EO facilitating coordination, internal potential and capability improvement, allow frequent engagement in IVN, risk-taking and proactive action (Wadhwa and Rowe, 2003;Heerkens, 2007;Rodriguez, Barcos and Alvarez, 2010;Freiling and Schelhowe, 2014).…”

“…As MNCs evolve, exploit and explore, their demand for inputs from affiliates that face lower production and other costs can get higher (Hanson, Matoloni and Slaughter, 2005). Traditionally, MNCs fa- (Table 1), JV less common and for specific cases, and with this excess capacity and advantage can pursue growth and development strategy (Rodriguez, Barcos and Alvarez, 2010), controlling proprietary assets, seeking returns (Rattich, 2011). Entry mode(s) they pursue can be sophisticated, singly, combination in different countries, or intensive use of several complementary operation modes in integrated fashion (Benito, Petersen and Welch, 2009;Taylor, 2013), to allow greater scope increasing market penetration capacity, heeding resources.…”

Limits of I-models Principles Application on Czech SMEs' Internationalization Process

“…by Thompson et al (2007), Yip (2003) and many others. For instance, according to Rodriguez et al (2010), the factors initializing enterprise's involvement in the internationalization process include mainly new customers searching, compensation of sale crisis in the domestic market, risk reduction through diversifi cation into diff erent countries, income loss compensation in specifi c regions by earning opportunities in other ones, cost reduction in manufacturing, research and development, distribution or purchase in using savings of scale, gaining higher profi tability from larger investments, compensation of shorter product life cycle at a higher level by taking advantage of relatively homogeneous markets, gaining prestige and competitive advantage through global expansion of company's activities, increase of revenues in the markets with high barriers to entry and a production cost reduction achieved by outsourcing certain operations to countries with cheaper labor. Stremtan, Mihalanche and Pioras (2009) also dealt with determining forces which initiate enterprise's need of internationalization.…”

Specifics of the Internationalization Process of Czech Engineering SMEs

“…Machková et al, 2002). Rodriguez, Barcos, and Álvarez (2010) compiled a list and classifi cation of risks arising from a company's internationalization. They divided the risks into 9 groups -risks associated with the business strategy, risks associated with the company's management and corporate culture, risks associated with logistics infrastructure, risks associated with project management, risks arising from the company's external relations, risks associated with the socio-economic and political situation in the country, risks associated with the country's legal framework, risks associated with the market, and risks associated with the country's culture.…”