The Internationalization Process of the Firm—A Model of Knowledge Development and Increasing Foreign Market Commitments

Johanson, Jan; Vahlne, Jan‐Erik

doi:10.4324/9781315199689-9

Cited by 1,168 publications

(2,373 citation statements)

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“…Starting with nearby markets is a strategy that is in accordance with the Uppsala model (Johanson and Vahlne 1977). However, if we consider the speed criterion, we can compare Klarna with Luostarinen and Gabrielsson's (2006) study of Finnish born global firms and conclude that three years is longer than their average of 2.1 years.…”

Section: Internationalization Processmentioning

confidence: 94%

“…One of the most cited internationalization theories is the Uppsala model (Johanson and Wiedersheim-Paul 1975;Johanson and Vahlne 1977), which proposes a gradual approach with an emphasis on the importance of experiential learning and commitment building to overcome the psychic distance and the liability of foreignness and outsidership for international markets (Vahlne and Nordström 1993;Andersson 2011;Vahlne and Johanson 2013). The Uppsala model was revised in 2009 and in 2013 (Johanson and Vahlne 2009;Vahlne and Johanson 2013) to place greater emphasis on networks, and particularly on the sub-processes of trust and knowledge building, opportunity identification, and exploitation within these networks.…”

Section: Theoretical Framework Internationalization Theoriesmentioning

confidence: 99%

“…The Uppsala model suggests sequential modes of entry, with shared modes, such as agents, being followed by more controlled modes (e.g., distributors), and later by completely integrated modes (e.g., subsidiaries), with the final step being production in the international market (Johanson and Vahlne 1977). The born global theory suggests a more frequent use of shared control modes, such as joint ventures, as an explanation for how firms can reach far-distant markets without committing too many resources (Knight and Cavusgil 1996).…”

Section: Mode Of Entry Speedmentioning

confidence: 99%

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The online–offline balance: internationalization for Swedish online service providers

Wentrup

2016

J Int Entrep

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Online service providers (OSPs) are becoming increasingly important in the global economy and are undertaking internationalization at a remarkable speed. Since they depend on digital delivery over the internet, OSPs are portrayed as footloose in their geographical expansion and are often described as Bborn global.^However, on the basis of three case studies, the paper reveals the importance of the home market as a springboard, and of regional expansion in the early phase of internationalization. The paper emphasizes the balance in the internationalization process between an online and an offline presence in the new international market. The time gap between online and offline presence, the online-to-offline interval, seems to be a critical factor in the internationalization process. The speed of the internet industry and the technically complex nature of online services could explain why the case firms chose controlled modes of entry. The case firms thus skip sequential steps, following a pattern that is in contrast to the Uppsala model. Overall, the paper suggests that finding the right balance between the online and the offline presence is a challenge in the internationalization of these particular Swedish OSP firms.Résumé Les online service providers (OSPs) autrement dit les entreprises qui offrent des services par internet, prennent de plus en plus d'importance dans l'économie globale et connaissent une internationalisation remarquablement rapide. Dépendants de la livraison numérique via internet, les OSPs sont considérés comme bénéficiant d'une expansion géographique sans entrave et sont souvent décrits comme Bborn global^. Pourtant, basé sur trois études de cas, l'article révèle l'importance du tremplin que représente le marché d'origine, suivi par l'expansion régionale dans la première phase d'internationalisation. L'article met l'accent sur l'équilibre, entre la présence en ligne et hors ligne, dans le processus d'internationalisation. L'à-propos dans le passage J Int Entrep du hors ligne au en ligne, c'est à dire l'intervalle entre l'existence en ligne et l'existence hors ligne, parait être un facteur déterminant dans le processus d'internationalisation. La vitesse de l'industrie internet, et la nature complexe des services en ligne pourraient expliquer pourquoi les entreprises étudiées ont choisi des modes d'entrée contrôlés. Ces entreprises ont cependant sautés certaines étapes séquentielles, ce qui constitue un modèle contrastant avec le modèle d'Uppsala. Globalement, l'article suggère que trouver la bonne mesure entre présence en ligne et hors ligne est un défi pour l'internationalisation des OSPs suédois présentés. Summary HighlightsContributions: This timely study sheds light on the internationalization process for online service providers (OSPs). Its contribution includes three case studies of some of the best-known Swedish OSPs, and it introduces new theoretical concepts and a spatial interpretation of the internationalization process. The spatial online-offline balance offers a new way of thinki...

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Section: Internationalization Processmentioning

confidence: 94%

Section: Theoretical Framework Internationalization Theoriesmentioning

confidence: 99%

Section: Mode Of Entry Speedmentioning

confidence: 99%

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The online–offline balance: internationalization for Swedish online service providers

Wentrup

2016

J Int Entrep

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“…Experiential knowledge is traditionally developed incrementally by the firm; more recent research, however, has underlined that for INVs the prior experience of the founder can shorten the learning process of the firm (Madsen and Servais 1997). It has been argued that experiential knowledge enables firms to make commitments in foreign markets (Johanson and Vahlne 1977) and the more the firm knows about international operations, the less tacit knowledge it needs to generate in each foreign market (Meyer and Estrin 1997). Additionally, Dikova and Van Witteloostuijn (2007) found that international experience reduces the cost and risk of foreign market entry, whereas Hilmersson and Jansson (2012b) showed that it reduces uncertainty in the market entry process.…”

Section: Firm International Experiencementioning

confidence: 97%

“…In internationalization process models, the generation of experiential knowledge is assumed to be a key determinant of internationalization (Johanson and Vahlne 1977;Meyer and Estrin 1997;Dikova and Van Witteloostuijn 2007;Blomstermo et al 2004;Eriksson et al 1997). For small and young firms, the experience of the founder is of vital importance in the early face of the internationalization (Madsen and Servais 1997;Oviatt and McDougall 1997).…”

Section: Firm International Experiencementioning

confidence: 99%

SME international opportunity scouting—empirical insights on its determinants and outcomes

Hilmersson

Papaioannou

2015

J Int Entrep

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International opportunities are the catalysts of SME internationalization. Our knowledge regarding the role of international opportunities in internationalization is undisputable, yet our understanding of the underlying mechanisms of international opportunity development remains inadequate. In this paper, we seek to address this shortcoming in the literature by answering the following research questions: how do internal and external factors influence the international opportunity scouting of SMEs, and what are the effects of the international opportunity scouting strategy in the internationalization of the firm? From a case study of nine Swedish SMEs, the authors develop propositions on the interplay between the theoretical constructs: international experience, network structure, international opportunity scouting, and international opportunity novelty. We propose that the greater the international experience of the SME, the more systematically the SME will scout for international opportunities; the more closed the network the SME is embedded in, the more systematically the SME will scout for international opportunities; and the more systematically the SME scouts for international opportunities, the lower the novelty of the opportunities identified by the SME. These findings come with implications for theory as well as for SME managers.

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Domestic clustered networks and internationalization of agrifood SMEs

et al. 2022

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This paper examines how participating in domestic clustered networks in the agri-food industry affects the export status and export intensity of small and mediumsized enterprises (SMEs). The Uppsala internationalization process model has been revisited in light of the knowledge that these networks can contribute to promoting the presence of SMEs abroad. The study uses a sample of companies in the Spanish wine industry and characterizes 76 domestic clustered business networks

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The Internationalization Process of the Firm—A Model of Knowledge Development and Increasing Foreign Market Commitments

Cited by 1,168 publications

References 1 publication

The online–offline balance: internationalization for Swedish online service providers

The online–offline balance: internationalization for Swedish online service providers

SME international opportunity scouting—empirical insights on its determinants and outcomes

Domestic clustered networks and internationalization of agrifood SMEs

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