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Much has changed since our model of the internationalization process of the firm was published in the Journal of International Business Studies (JIBS) (Johanson & Vahlne, 1977). In fact, the economic and regulatory environments have changed dramatically. Company behavior is also different in some respects. The research frontier has moved too. There...
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Context 1
... in the 1977 version model, the 2009 business network model consists of two sets of variables: state variables (shown as the left-hand side of Figure 2) and change variables (shown as the right-hand side of Figure 2), or stock and flow, which are relevant to both sides in a relationship. The variables affect each other, the current state having an impact on change, and vice versa. ...
Context 2
... in the 1977 version model, the 2009 business network model consists of two sets of variables: state variables (shown as the left-hand side of Figure 2) and change variables (shown as the right-hand side of Figure 2), or stock and flow, which are relevant to both sides in a relationship. The variables affect each other, the current state having an impact on change, and vice versa. ...
Context 3
... the basic structure of the model is the same as the one we built in 1977, we have made some slight changes. We have added ''recognition of opportunities'' to the ''knowledge'' concept, as seen in the upper left-hand box of the model (see Figure 2). Opportunities constitute a subset of knowledge. ...
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... In the early 1990s, a series of publications emerged on so-called "rapid and early internationalization" firms that take the risk and seek opportunities in foreign markets immediately or soon after their creation, despite their modest size and few resources (Johanson & Vahlne, 2015;Madsen & Servais, 1997). Several names have been given to this type of firm such as "instant exporter", "international new ventures", "instant international", "Born Globals", "Rapid internationalizers", and "Early Internationals" (Veilleux & Ferro, 2010). ...
Purpose – This article aims to explore the importance of the international entrepreneurial orientation (IOE) of Moroccan women entrepreneurs (based on innovation, risk-taking and proactivity) in the speed of internationalization of Moroccan SMEs through the niche strategy as an intermediate variable. Research methodology – We adopted a quantitative study on a sample of 45 Moroccan SMEs to test the research hypotheses using the structural equation method, under Smart-PLS software. Findings – A significant relationship between the international entrepreneurial orientation of Moroccan women entrepreneurs and the speed of internationalization with the intermediation of the niche strategy. Despite well-calculated steps, innovative products and the courage to take risks on foreign markets, women entrepreneurs tend to adopt niche strategies to be more protected in the internationalization process: both to avoid direct competition from large companies and to speed up the internationalization process Research. Limitations – Theoretically, it was difficult to operationalize the phenomenon studied, for several reasons: the large number of movements in this approach, the number of variables mobilized. Methodologically, the criteria used to select the sample made it difficult to find more than 45 eligible companies (Exploratory quantitative study). Originality/Value – This article is one of the very few to combine international and women’s entrepreneurship. Furthermore, this is the first article in the field of women’s international entrepreneurship, as far as I know, that addresses the relationship between entrepreneurial orientation and the speed of internationalization of exporting SMEs.
... The moderating role of TMT managers' host country work experience. The literature on liability of foreignness proposes that the social cost of unfamiliarity, relational and discriminatory hazards of doing business will reduce over time (Johanson and Vahlne, 2015). This is because company managers will gradually gain work experience in the host country and the unfamiliarity with the business environment and relational disadvantage will disappear over time. ...
Institutional distance is well-recognised as having a significant influence on MNE subsidiary performance in host countries. However, there is less clarity as to how the institutional distance is managed by top management teams of MNEs. Specifically, it is not known whether the previous work experiences of the top management team (TMT) can moderate how institutional distance impacts subsidiary performance. The purpose of our research is to address the research question, how do different work experiences among the TMT moderate the relationship between institutional distance and subsidiary performance? To empirically answer this question, we use a sample of 6119 Chinese MNE subsidiaries with 34,870 TMT managers. We apply ordinary least square (OLS) regression and bias-corrected and accelerated bootstrap (BCa) to the data. The results indicate that the strength of the negative relationship between institutional distance and MNE subsidiary performance is conditional on the different work experiences of the TMT. We show that the negative relationship between institutional distance and MNE subsidiary performance is strengthened with an increase in expatriates in the TMT who have home country work experience (β = −0.346, p < 0.05) but mitigated with an increase of managers in the TMT who have host country work experience (β = 0.129, p < 0.01). Additionally, the negative relationship between institutional distance and subsidiary performance is weakened by increasing diversity of TMT’s international experience (β = 0.555, p < 0.01). Notably, the TMT’s international experience in weak-institution markets has a more salient mitigating effect on the negative relationship than work experienced gained in strong-institution markets. This study contributes to the integration of TMT perspective into institutional management and has practical implications for the staffing strategy of MNE subsidiaries.
... The Uppsala Model, also known as the Uppsala Internationalization Process Model, is a theory that explains how firms or institutions gradually increase their international involvement (Forsgren, 2002;Vahlne, 2020;Vahlne & Johanson, 2017). It posits that organizations typically start their internationalization process in nearby and culturally similar markets, gradually moving into more distant and dissimilar ones (Johanson & Vahlne, 2015). ...
In the era of internationalization, Philippine higher education institutions (HEIs) are compelled to continually refine their operations and governance to align with global standards. This descriptive cross-sectional survey research was conducted to assess the extent of practices and preparations for internationalization at a state university in Central Luzon, Philippines. The study engaged four administrators and 21 faculty members as respondents, collectively offering a perspective on the university's approach to internationalization. The study reveals that the university has initiated practices and preparations geared towards internationalization. Nonetheless, it is evident that there is room for further enhancement of its strategic directions and plans to more comprehensively integrate internationalization into its academic programs, policies, and administrative processes. This paradigm shift will require a measured, time-sensitive approach to ensure that the university meets its internationalization goals successfully. To expedite this process , the university administration could proactively take the lead in championing and facilitating internationalization efforts. This proactive leadership is pivotal in building a culture of global engagement, forging international partnerships, and positioning the university as a frontrunner in the international academic landscape. By doing so, the university can more effectively embrace the challenges and opportunities of internationalization in higher education.
... China for example, has one of the globe's fastest growing online retail market and digital economies with a projected 1.14 billion internet population by 2025 (Thomala 2020). While new consumer demographics and behavior present fresh market opportunities, the evolving business relations and economic activities between Norway and China, will present challenges for market entry strategies (Johanson and Vahlne 2015). ...
This study applies an economic sociology perspective in exploring the importance of cultural embeddedness of firm economic activities across borders. The qualitative empirical findings of this study show that market-as-network interrelationships will become increasingly important in forming resilient business networks. The findings are data driven and uses the seafood trade and its shared business environments between Norway and China as case example. The empirical findings of this study show that market-as-network, and actor-to-actor interrelationships will become increasingly important in forming resilient business networks. It also illustrates how economic sociology can provide a holistic framework of analysis in studying cultural embeddedness.
... El entorno empresarial de la actualidad exige a las firmas ir más allá del uso de enfoques clásicos unidimensionales de proveeduría-procesos productivos y entrega a clientes, en donde la organización actúa sola, y no dentro de las disrupciones estratégicas en el imperativo de generación de redes de relaciones (Johanson & Vahlne, 2015), favoreciendo la innovación en estrategias de ingresos, de portafolio y en las habilidades gerenciales propias del proceso de expansión internacional. ...
... Evidence from an exploratory study in the Costa Rican software industry (Lopez et al., 2009) The timing of internationalization -Drivers and outcomes (L. Ciravegna et al., 2019) The Uppsala internationalization process model revisited: From liability of foreignness to liability of outsidership (Johanson & Vahlne, 2015) Managing institutional voids: A configurational approach to understanding high performance antecedents (Brenes et al., 2019) The international profile of the firm: Application of latent profile analysis to the case of Colombia ...
... El trabajo bibliométrico desarrollado en este documento, permitió establecer que la relación entre la actividad exportadora de las firmas, en especial de las pymes y su desempeño en la aplicación de la estrategia de internacionalización, depende de muchos factores internos y externos, desde la perspectiva de habilidades generadas en combinación intencional de recursos para llegar a otros mercados. Es así como variables claves como el conocimiento, la gradualidad (Johanson & Vahlne, 2015), la experiencia, la actitud emprendedora, los recursos, y capacidades (especialmente los intangibles) que generan habilidades (Bianchi et al., 2018), han contribuido a resultados exitosos de pymes de mercados emergentes latinoamericanos. ...
Resumen El propósito de este estudio es realizar un análisis sistémico de las investigaciones sobre internacionalización de empresas Latinas. Para ello, se efectúa un análisis de red complementado con herramientas bibliométricas, logrando así, la identificación de las perspectivas del tema. Inicialmente, se efectuó la búsqueda temática en las bases de datos WoS y Scopus; las referencias obtenidas fueron procesadas mediante bibliometrix y Gephi, facilitando la clasificación de los documentos según su relevancia en tres categorías, clásicos, estructurales y recientes, finalmente se realiza un análisis de cocitaciones. Este último procedimiento permitió identificar cuatro perspectivas principales en el área: diversificación y desempeño, emprendimiento, exportaciones y mercado, estrategias y competencia. Palabras clave: Internacionalización; empresas latinas; competitividad; diversificación; economía emergente; mapeo científico. JEL: F23. Abstract The purpose of this study is to conduct a systemic analysis of research on the internationalization of Latin American companies. For this purpose, network analysis is carried out, complemented with bibliometric tools, thus achieving the identification of the perspectives on the subject. Initially, a thematic search was done in the WoS and Scopus databases; the references obtained were processed through bibliometrix and Gephi, facilitating the classification of the documents according to their relevance in three categories, classical, structural and recent, and finally, a quotation analysis is made. This last procedure allowed the identification of four main perspectives in the area: diversification and performance, entrepreneurship, exports and market, strategies, and competition.
... In subsequent refinements of the original Uppsala model, Johanson and Vahlne [17] first proclaim that competitive success in a foreign market primarily depends on powerful relationships with actors in a host country's business network. The absence of such relationships constitutes a liability of outsidership that prevents companies from overcoming psychic distance and realizing country-specific advantages [17]. ...
... In subsequent refinements of the original Uppsala model, Johanson and Vahlne [17] first proclaim that competitive success in a foreign market primarily depends on powerful relationships with actors in a host country's business network. The absence of such relationships constitutes a liability of outsidership that prevents companies from overcoming psychic distance and realizing country-specific advantages [17]. Rugman et al. [20], on the other hand, call for more research focus on regional strategy and advance the notion of interregional foreignness, which describes resource recombination barriers caused by psychic distance between cross-national market regions. ...
... Huawei's internationalization process fits principally with the Uppsala stage model process (Johanson and Vahlne, 2015). According to the Uppsala stage model process, the internationalization of a firm begins from the export mode to initialize their sales network and then goes on and builds strategic alliances (Dunning, 2015) with local partners for technological acquisitions, and is completed by the accumulation of resources and assets, including advanced managerial capabilities and international brands, especially the ability to coordinate and integrate resources efficiently. ...
... In order to summarize Section 1, Table 6.1 synthetizes the internationalization processes of these well known Chinese firms. (Johanson and Vahlne, 2015) Emerging cases with some particular characteristics ...
... The diversity of internationalization processes undertaken should be noted. (Mathews, 2002) OLI paradigm (Dunning, 1981) Failure of internationalisation Uppsala stage model process (Johanson and Vahlne, 2015) Born globals (McDougall et al., 1994) Born globals (McDougall et al., 1994) ...
... The main rationale behind this inclusion is the similarity between the entrepreneurial process and that of internationalization, because both occur under Knightian uncertainty, goal ambiguity , and environmental isotropy (Schweizer et al. 2010). Johanson and Vahlne (2009) note that the effectuation model has much in common with the revisited Uppsala model. This idea gave birth to the stream of studies using effectuation to explain the phenomenon of IE. ...
The institutional context of Russia and the recent regime of foreign trade sanctions makes it a natural laboratory to study change in decision making regarding the international activities of SMEs. This research explores how the increased institutional uncertainty is evaluated, enacted and responded to by SMEs that are heavily involved in relations with international suppliers. This longitudinal multiple-case study reveals that although firms simultaneously use both causation and effectuation in their decision making, an increase of institutional uncertainty boosts effectuation. The study shows that the intensity of both types of decision-making logic varies along the studied period in accordance to changing perceptions of institutional uncertainty. Also, the studied firms use effectuation logic differently enabling us to distinguish two types of effectuation with contrasting performance implications: opportunity-driven effectuation and survival effectuation.
... (2010) classify internationalisation into two types, i.e., market seeking and resource seeking, and propose that the internationalisation process is pursued within a network of relationships that is characterised by trust building and knowledge creation to improve the position of the firm within the network (Johanson and Vahlne, 2009). In addition to identifying the three aforementioned strategic goals, some studies attempt to link them to evolving GS strategies. ...
Purpose - The purpose of this paper is to develop a synthesised conceptual framework for global sourcing (GS) strategy and structure.
Design/methodology/approach – We adopted a systematic literature review method and analysed through content analysis techniques 50 peer-reviewed journal articles focused on global sourcing strategy and structure. Based on these analyses, a conceptual model is developed.
Findings - A synthesised construct of GS strategy, consisting of three dimensions, i.e., supply internationalisation, internal integration and external integration, is proposed. The GS structure construct is further broken down into structural design and control and coordination, consisting of three dimensions for each. Propositions for GS strategy, GS structure and, in particular, the relationships between them are developed for future empirical validation.
Originality/value - This is the first study which synthesises various dimensions of GS strategy and GS structure and advances/extends the theory of the strategy-structure nexus to a GS context. The conceptual model provides a comprehensive framework for future empirical work and opens avenues of research on this topic.
Keywords: International Sourcing, Global Sourcing, Strategy Development, Organisational Structure, Conceptual
... However, it is increasingly acknowledged that success in establishing extra-regional ties reflect local resources and incentives in its support (Ebersberger et al., 2014), in particular during the initial stages when weak existing network linkages and lack of prior experiences form barriers to broader engagement (Johanson and Vahlne, 2009). Due to the position of urban regions as points of gravitation in international networks and mobility flows, they may, through spill-over effects, provide local firms with privileged access to information about opportunities abroad (Fernhaber et al., 2008;). ...
This paper analyzes how the innovation strategies of individual firms reflect the density, diversity and international connectivity of their urban locations. It makes three contributions. Theoretically, it argues that observed strategies reflect a series of inter-related choices, and that each may be influenced differently by the knowledge dynamics of firms’ locations. Empirically, it uses Norwegian Community Innovation Survey data to demonstrate how firms in the Capital are less inclined to engage in innovation activities, but also more likely to commit strongly once engaged, than are comparable firms located elsewhere. Methodologically, it illustrates how the results of sequential regressions on inter-related strategy choices differ from those obtained using a more conventional estimation strategy. Implications for innovation policy and research are drawn
