Showing papers on "Internationalization published in 2005"

Defining International Entrepreneurship and Modeling the Speed of Internationalization

Abstract: This article provides a reformulated definition of international entrepreneurship. Consistent with the new definition, a model is presented of how the speed of entrepreneurial internationalization is influenced by various forces. The model begins with an entrepreneurial opportunity and depicts the enabling forces of technology, the motivating forces of competition, the mediating perceptions of entrepreneurs, and the moderating forces of knowledge and networks that collectively determine the speed of internationalization.

A Capabilities Perspective on the Effects of Early Internationalization on Firm Survival and Growth

Abstract: Recent critiques of internationalization process models question the wisdom of delaying internationalization. Internationalizing late allows firms to assemble resources and gain experience but also allows inertia to develop. We resolve this tension by positing that internationalization has differing effects on firm survival and growth. These effects are moderated by organizational age, managerial experience, and resource fungibility. Our framework provides insights into the evolution of capabilities across borders and may be tested and built upon by organization researchers.

The Internationalization of Chinese Firms: A Case for Theoretical Extension?[1]

Abstract: This paper examines the patterns of, and motives for, internationalization by prominent market-seeking Chinese firms. Case studies of these firms indicate that they are seeking technological and brand assets to create a competitive position in international markets. While mainstream theory tends to assume that firms internationalize to exploit competitive advantages, Chinese firms are generally making such investments in order to address competitive disadvantages. They are engaging in ‘inward’ internationalization by means of original equipment manufacture (OEM) and joint venture partnerships, and ‘outward’ internationalization by means of acquisition and organic expansion abroad. Each of these routes offers certain benefits coupled with its own challenges or risks. The paper concludes that the Chinese case offers an opportunity to extend present theorizing in four primary areas concerning the latecomer perspective and catch-up strategies, institutional analysis with reference to the role of government, the relations between entrepreneurs and institutions, and the liability of foreignness.

A theory of international new ventures: a decade of research

Abstract: Oviatt and McDougall’s JIBS article identified and defined international new ventures (INVs) and their prominent role in the global marketplace. The article spurred worldwide interest in INVs by raising questions about the validity and efficacy of existing theory, especially about the Uppsala process model of internationalization. The article also laid an important theoretical foundation for research into international entrepreneurship (IE), where younger and wellestablished companies use their entrepreneurial activities to create value as they internationalize their operations. This paper reviews Oviatt and McDougall’s original propositions, highlighting their important contributions to the field. The paper also highlights the progress made in research using Oviatt and McDougall’s framework, the major debates that persist about the nature and role of INVs, the source of their competitive advantages, and the key issues to be explored in future research.

Internationalization Strategy of Small and Medium-Sized Family Businesses: Some Influential Factors

Abstract: This article studies some aspects of the internationalization strategy of family SMEs. After examining the various problems facing family SMEs as regards internationalization, in terms of lack of resources, some mechanisms are discussed to counteract their negative effect. Using a wide sample of Spanish SMEs, we confirm the existence of a negative relationship between family ownership and internationalization, measured by export activities. We also analyze the role of generational changeovers and stable relationships with other firms through shareholding or agreements aimed to promote international expansion. These mechanisms are set out to provide family SMEs with the necessary resources that have proved to be key factors in a successful internationalization process.

Creative Tension: The Significance of Ben Oviatt’s and Patricia McDougall’s Article ‘Toward a Theory of International New Ventures’

Abstract: The article by Oviatt and McDougall threw the spotlight on international entrepreneurs, on international new ventures, and on their importance in the globalising world economy. Recognising the rich theoretical implications of this phenomenon, they mounted a challenge to received internationalisation process theories and established a new and exciting research theme, that of international entrepreneurship. This article reviews the impact of their contribution and discusses new research themes raised by their challenge to the process theories of internationalisation.

Internationalization Strategy of Small and Medium-Sized Family Businesses: Some Influential Factors

Abstract: This article studies some aspects of the internationalization strategy of family SMEs. After examining the various problems facing family SMEs as regards internationalization, in terms of lack of resources, some mechanisms are discussed to counteract their negative effect. Using a wide sample of Spanish SMEs, we confirm the existence of a negative relationship between family ownership and internationalization, measured by export activities. We also analyze the role of generational changeovers and stable relationships with other firms through shareholding or agreements aimed to promote international expansion. These mechanisms are set out to provide family SMEs with the necessary resources that have proved to be key factors in a successful internationalization process.

The internationalization of entrepreneurship

Abstract: Our article that has been awarded the 2004 Journal of International Business Studies Decade Award, ‘Toward a Theory of International New Ventures’, represents an integration of international business, entrepreneurship, and strategic management scholarship. This retrospective article explains the intellectual and personal origins of the work. In addition, it highlights the definitions of ‘international new ventures’ and ‘international entrepreneurship’. Finally, in response to recent concerns about the importance of international business scholarship, the research discussed here stands as an example of the successful exportation of international business scholarship into adjacent disciplines.

The Internationalization of Small and Medium-Sized Firms

Abstract: This paper contributes to the existing research by integrating the notions of organizational learning and entrepreneurial orientation into the body of international entrepreneurship. Our primary framework combines learning theory and the new venture theory of internationalization to study the extent to which small and medium-sized companies engage in international activities. We found that the firms’ international learning effort and entrepreneurial orientation are positively associated with internationalization intent whereas domestic learning effort is negatively related with internationalization intent. Overall, our results suggest (1) that intensive knowledge renewal and exploitation regarding foreign markets and the internationalization process itself may increase internationalization by affecting the perceptions of opportunities offered by further international expansion, and (2) that firms with an entrepreneurial mindset may be more likely to develop a long-term, substantial presence in the international arena, compared to firms that are more reactive or conservative.

Globalisation, Academic Capitalism, and the Uneven Geographies of International Journal Publishing Spaces

Abstract: Geographers have been arguing recently that the idea of what is ‘international’ in this field has been occupied by the hegemonic discourses of Anglo-American geography and journals. This paper takes this lively debate as an indicator of the global challenges facing higher education and research and provides an analysis of the changing conditions of knowledge production, characterised by internationalisation and competition. Knowledge production is governed to an increasing degree through practices based on market-like operations. The author argues that this may lead to the homogenisation of social science publication practices, which are known to be heterogeneous and context dependent. One indicator of this homogenisation is the demand for publishing in international journals that is arising in social sciences and humanities round the world. Both ‘international’ and ‘quality’ are increasingly being connected with the journals noted in the Institute of Scientific Information's (ISI) databases. Starting wit...

The Globalization of Higher Education

Abstract: Contemporary transformations of time and space internationalizing British higher education - students and institutions internationalizing British higher education - policy perspectives internationalization in Europe internationalization in South Africa a Commonwealth perspective on the globalization of higher education the role of the European Union in the internationalization of higher education globalization and concurrent challenges for higher education massification, internationalization and globalization.

National and International Returns to Scale in the Modern Theory of International Trade

Abstract: Since the WWII the largest and fastest growing component of world trade has been the exchange of manufactures between industrialized economies. The emerging of the intraindustry trade has somewhat challenged and cast doubts on the traditional Heckscher-Ohlin-Samuelson (H-O-S) trade model. Economists have some insight into this phenomenon, and attention has accordingly shifted to influence of the product differentiation on the economies of scale. But their research has no little impact on the dominating trade theory. What's more, they cannot give sufficient explanation to the modern trade practices. This paper focuses on the differentiated producer goods and constructs a model yielding international returns to scale. It also employs this model to explore the relations between international returns, the traditional national returns to scale and the factor endowments theory of international trade.

Aerospace Clusters: Local or Global Knowledge Spillovers?

Abstract: The literature about regional innovation systems, clusters and industrial districts insists on the importance of local knowledge spillovers. Nevertheless, more recently a few authors have put in question the importance of local knowledge spillovers. This paper provides an analysis of some of the most dynamic aerospace clusters in the world, located in Montreal, Seattle, Toulouse and Toronto. We start by discussing theories of clustering, then provide research questions as well as empirical evidence on the international nature of knowledge spillovers. Local knowledge spillovers are less significant, of a different nature, and they may make a scanty contribution to explain the geographical agglomeration of firms. Conversely, international spillovers help to explain the relative dispersion of industry across nations. Resilient geographical clustering is related to the anchor tenant effects as creators of labour pools and owners of very large manufacturing plants creating regional inertia. We thus reject the ...

Changing capitalisms?: Internationalization, institutional change, and systems of economic organization

Abstract: An increasing number of studies in the last decade or so have emphasized the viability and persistence of distinctive systems of economic coordination and control in developed market economies. Over more or less the same period, the revival of institutional economics and evolutionary approaches to understanding the firm has focused attention on how firms create distinctive capabilities through establishing routines that coordinate complementary activities and skills for particular strategic purposes. For much of the 1990s these two strands of research remained distinct. Those focusing on the institutional frameworks of market economies were primarily concerned with identifying complementarities between institutional arrangements that explained coherence and continuity. On the other hand, those focusing on the dynamics of firm behaviour studied how firms develop new capacities and are able to learn new ways of doing things. This book aims to bring together these approaches. It consists of a set of theoretically motivated and empirically informed chapters from a range of internationally known contributors to these debates. In their chapters, the authors show how institutions and firms evolve. Ideas of path dependency and complementarity of institutions are subjected to critical scrutiny both by reference to their own internal logic and to empirical examples. Varieties of institutional integration, the surprising maintenance of 'deviant' or alternative traditions and processes, and the existence of unpredictable yet consequential policy options that can lead to breaks in path dependency are scrutinized with particular reference to how national and international firms may relate to institutions at various levels as a diverse arena of potential resources rather than as a singular and determinant constraining force. The book provides a set of theoretical and empirical challenges for researchers concerned with the relationship between national institutional contexts and firm dynamics. For those involved in teaching or studying at doctoral, Masters and higher level undergraduate courses, the book provides a structured entry into the debates about how institutions and firms are changing in the contemporary era.

The internationalization of retailing: implications for supply network restructuring in East Asia and Eastern Europe

Abstract: This paper explores the implications of the rapid internationalization of a small cadre of retail transnational corporations over the last 15 years for supply network structures in a range of economies in Eastern Europe and East Asia. Five sets of ongoing restructuring dynamics are identified: the centralization of procurement, logistical upgrading, supply network shortening and new intermediaries, the imposition of quasi-formal contracts, and the development of private standards. It is suggested that these processes are leading to an ongoing 'shakeout' of the supply base that is favouring relatively large, well-capitalized suppliers. Copyright 2005, Oxford University Press.

Foreign Entry Mode and Performance: The Moderating Effects of Environment*

Abstract: As the trend toward economic globalization increases, the internationalization of small and medium-sized enterprises (SMEs) has become an important topic. Research on the performance outcomes of foreign market entry strategies has been primarily considered from the perspective of the multinational corporations. In this paper hierarchical regression analyses were conducted on archival data of 123 publicly held manufacturing SMEs based in the United States to test a contingency model that hypothesizes more of the performance variance is explained when the foreign market entry mode is aligned strategically with domestic and foreign environmental factors. The results indicate that firms will have a higher rate of international revenue growth using no-equity-based (exporting) foreign market entry modes in growing domestic environments. International revenue growth is higher for equity-based modes when foreign market risks are high. The findings should provide managers of SMEs with contextual evidence for making successful foreign market entry decisions.

Toward a Knowledge-Based Conceptualization of Internationalization

Abstract: This conceptual paper contributes to the internationalization literature in response to previous criticisms by enabling the integration of apparently contradictory strands of the literature and incorporation of the potential role of the Internet. Knowledge is at the core of received wisdom on internationalization. This is consistent with the notion that internationalization represents an innovation of the firm and often entails decision-making under conditions of uncertainty, for both of which knowledge is vital. Given the link between knowledge and internationalization, apparent tensions in the literature can be resolved by recognizing its different types, consequently varying roles and diverse sources. Furthermore, network relationships—of growing significance in the literature—yield social capital, which in turn leads to knowledge acquisition and creation; thus it is worthwhile to integrate knowledge and social capital perspectives. Finally, consistent with the knowledge-based approach adopted in the paper, the application of Internet technology is conceptualized in terms of information effects viz., information dissemination, acquisition and sharing which could lead to, respectively, enhanced internationalization, knowledge and social capital.

Small International Firms : Typology, Performance and Implications

Abstract: ■ The remarkable increase in heterogeneity among international firms in the past decade constitutes a challenge to traditional thinking about the internationalization process of firms. ■ This paper contributes to the literature by offering a typology of small and medium-sized international firms defined by the rapidity and extent of their internationalization. The firms are compared on competitive profile, international motivation, behavior, and performance. Implications for managers, scholars and policy-makes are also discussed.

Determinants and Effects of Foreign Direct Investment: Evidence from German Firm-Level Data

Abstract: Foreign direct investment is an essential aspect of ‘globalization' yet its empirical determinants are not well understood What we do know is based either on poor data for a wide range of nations, or good data for the US and Swedish cases In this paper, we provide evidence on the determinants of the activities of German multinational firms by using a newly available firm-level data set from the Deutsche Bundesbank The specific goal of this paper is to demonstrate the relative role of country-level and firm-level determinants of foreign direct investment We focus on three main questions: First, what are the main driving forces of German firms' multinational activities? Second, is there evidence that sector-level and firm-level factors shape internationalization patterns? Third, is there evidence of agglomeration effects in the foreign activities of German firms? We find that the market access motive for internationalization dominates Firms move abroad mainly to gain better access to large foreign markets Cost-saving motives, however, are important for some manufacturing sectors Our results strongly suggest that firm-level heterogeneity has an important influence on internationalization patterns – as stressed by recent models of international trade We also find positive agglomeration effects for the activities of German firms that stem from the number of other German firms that are active on a given foreign market In terms of lessons for economic policy, our results show that lowering barriers to the integration of markets and encouraging the formation of human capital can promote the activities of multinational firms However, our results related to the heterogeneity of firms and agglomeration tendencies show that it might be difficult to fine-tune policies directed at the exploitation of synergies and at the creation of clusters of foreign firms

Institutional Legacies and Firm Dynamics: The Growth and Internationalization of UK and German Law Firms

Abstract: This article addresses the question of how economic actors (re)shape their organizational and institutional contexts as their activities internationalize. By focusing on law firms, we choose a professional activity that has been regarded as highly determined by the national distinctiveness of professional and legal systems and would lead us to expect strong institutional legacies on firm dynamics. The comparative study of the growth and internationalization of corporate law firms in the UK and Germany presented in this article, however, refutes this view. The results reveal that in both settings ‘institutional pockets’ of corporate lawyers existed whose entrepreneurial orientations and international reach were much stronger than among other subgroups of the profession. From the 1970s onwards, these lawyers and law firms engaged in redefining their organizational and institutional contexts with the aim of positioning themselves in ways that would allow them to seize upon the emerging international markets ...

The Internationalization of Chinese Family Enterprises and Dunning's Eclectic MNE Paradigm

Abstract: This paper applies Dunning's eclectic paradigm of Ownership, Location and Internalization (OLI) advantages to the international activity and performance dynamics of the Chinese family enterprise (CFE). Through the lens of Dunning's paradigm, we trace the role of cultural and economic factors in the success of this important form of organization. In demonstrating the relevance of a theory that originated in the analysis of Western multinational firms to this indigenous Chinese type of firm, the paper supports the larger effort to expand the scope of received theory to include Chinese as well as other non-Western forms of organization.

The Global and the Local

Abstract: Foreword Preface 1. Dilemmas of Internationalization 2. Societal Effects Between a Vacuum and a Tropical Climate 3. Emergent National Distinctiveness Through International Exposure 4. The South Germanic Bedrock Under Foreign Incursions 5. The Governance of Work Systems 6. Enterprise and Management and Corporate Governance 7. Making Sense of Internationalization

Determinants and effects of foreign direct investment: evidence from German firm-level data

Abstract: Foreign direct investment is an essential aspect of ‘globalization' yet its empirical determinants are not well understood. What we do know is based either on poor data for a wide range of nations, or good data for the US and Swedish cases. In this paper, we provide evidence on the determinants of the activities of German multinational firms by using a newly available firm-level data set from the Deutsche Bundesbank. The specific goal of this paper is to demonstrate the relative role of country-level and firm-level determinants of foreign direct investment. We focus on three main questions: First, what are the main driving forces of German firms' multinational activities? Second, is there evidence that sector-level and firm-level factors shape internationalization patterns? Third, is there evidence of agglomeration effects in the foreign activities of German firms? We find that the market access motive for internationalization dominates. Firms move abroad mainly to gain better access to large foreign markets. Cost-saving motives, however, are important for some manufacturing sectors. Our results strongly suggest that firm-level heterogeneity has an important influence on internationalization patterns – as stressed by recent models of international trade. We also find positive agglomeration effects for the activities of German firms that stem from the number of other German firms that are active on a given foreign market. In terms of lessons for economic policy, our results show that lowering barriers to the integration of markets and encouraging the formation of human capital can promote the activities of multinational firms. However, our results related to the heterogeneity of firms and agglomeration tendencies show that it might be difficult to fine-tune policies directed at the exploitation of synergies and at the creation of clusters of foreign firms.