Showing papers on "Internationalization published in 2008"

What Drives New Ventures to Internationalize from Emerging to Developed Economies

Abstract: The internationalization of new ventures from emerging economies to developed economies remains an unfilled gap at the intersection of the literature between international entrepreneurship and stra...

Higher Education in Turmoil: The Changing World of Internationalization

Abstract: Internationalization is a pervasive force shaping and challenging higher education as it faces the new realities and turbulence of globalization. In a thoughtful and provocative way, this book provides a critical perspective on the rationales, benefi ts, risks, strategies, and outcomes of internationalization. A look at the diversity of approaches to internationalization across institutions and countries around the world emphasizes that “one size does not fi t all” when it comes to integrating international and intercultural dimensions into the teaching, learning, research, and service functions of higher education. This book will help academic leaders, policy makers, and international education professionals understand the increasing complexities of internationalization and the current controversial issues related to quality assurance, accreditation, trade agreements, commercialization, competitiveness, research, cultural homogenization, and regionalization.

Globalization of social entrepreneurship opportunities

Abstract: Social entrepreneurship has emerged as an important research topic in the literature. This interest stems from social entrepreneurs' role in addressing serious social problems on a worldwide scale while enhancing social wealth, often without regard for profits. In this article, we explain the forces contributing to the formation and rapid internationalization of social ventures. We use the behavioral theory of the firm to distill key attributes of social opportunities and show how these attributes influence the timing and geographic scope of social ventures' international operations. Copyright © 2008 Strategic Management Society.

Which Way through the Open Door? Reflections on the Internationalization of Chinese Firms

Abstract: Received internationalization theory argues that firms occupy domestic space before going abroad; in other words, large, oligopolistic firms are most likely to internationalize. The experience of China, whose economy is fragmented and whose firms are small by global standards, suggests otherwise. We construct a model of small firm internationalization driven by the relative transaction costs of crossing domestic (in the case of China, provincial) and international borders. When the costs of crossing domestic borders exceed the costs of crossing international borders, firms will internationalize at a relatively early stage of development. In the case of China, local protectionism and inefficient domestic logistics increase the costs of doing business domestically; moreover, protection of property rights in the West and the advantages afforded Chinese owned firms reconstituted as foreign entities operating in China decrease the costs of ‘going out’. We coin the term ‘institutional arbitrage' to capture Chinese firms’ pursuit of efficient institutions outside of China. We argue that strategic exit from the home country rather than strategic entry into foreign markets may explain the internationalization of many Chinese firms.

Determinants of the Internationalization Pathways of Family Firms: An Examination of Family Influence

Abstract: Internationalization is recognized as a valuable strategy for organizations’ growth and expansion; however, little is known about the internationalization behavior of family firms. Using stage model theory, the internationalization processes of eight family firms from their foundation to the present time are examined. Three key determinants of the internationalization pathways taken by family firms are identified: the level of commitment toward internationalization, the financial resources available, and the ability to commit and use those financial resources to develop the required capabilities. Furthermore, how the family unit inf luenced these determinants is explored. The implications for family business practitioners and ideas for future research are discussed.

Alliance Portfolio Internationalization and Firm Performance

Abstract: Alliance research has traditionally focused on structural and relational aspects of the networks in which firms are situated, paying less attention to the inherent characteristics of their partners. This study introduces the notion of alliance portfolio internationalization (API), which refers to the degree of foreignness of partners in a firm's collection of immediate alliance relationships. We develop a framework to explain how API impacts firm performance. We suggest that as a firm's API increases, financial performance is expected to initially decline, then improve, and finally decline again. This sigmoid relationship between API and financial performance is ascribed to evolving learning effects that shape the net benefits of API. When the firm's alliance portfolio, on average, consists of proximate foreign partners, the firm may fail to recognize latent national differences, but at moderate levels of API, its absorptive capacity and specialized collaborative routines support the exchange of valuable network resources. Nevertheless, high levels of API undermine firm performance because of the failure of collaborative routines and mounting liabilities of cross-national differences. We test the framework using data on the alliance portfolios of U.S.-based software firms from 1990 to 2001. The results provide support for the sigmoid relationship as well as for our predictions that firms, which have gained experience with foreign partners and maintained wholly owned subsidiaries in their partners' countries of origin, can overcome some of the liabilities of API and better leverage its benefits.

Market Orientation and Internationalization in Small and Medium‐Sized Enterprises

Abstract: This article builds on studies from the literature on market orientation (MO) and internationalization to develop a model and a set of hypotheses regarding the relationships among MO, knowledge acquisition (KA), and market commitment (MC), and the direct and indirect effects of these variables on the performance of small and medium-sized enterprises (SMEs) in foreign markets. The model and its hypotheses are tested by means of an empirical study of a multi-industry sample of Spanish SMEs operating in foreign markets. The results, obtained by structural equation modeling, indicate that a direct positive relationship exists between MO and a strategy of internationalization, and that the effect of MO on performance in foreign markets is moderated by KA and MC.

Closing knowledge gaps in foreign markets

Abstract: Knowledge and learning are ascribed pivotal roles in firms' internationalization processes: perceived market uncertainties, namely knowledge gaps related to business environments in foreign markets, may curb firms' inclinations to commit resources to these markets. This study explores whether knowledge gaps tend to increase or decrease with time when operating in the foreign market, and it discusses which learning components narrow – or widen – the perceived knowledge gap. A theoretical model is developed based on the internationalization process view and the more recent organizational learning perspective, including such concepts as overconfidence and absorptive capacity. The theoretical model is tested on a set of primary data covering Danish and Swedish firms and their foreign market operations. The results suggest a more subtle relationship between experience and perceived knowledge gaps than the “mechanical” relationship portrayed by the internationalization process view – a relationship in which absorptive capacity and, in particular, overconfidence play important roles.

International entrepreneurship and geographic location: an empirical examination of new venture internationalization

Abstract: In this paper, we argue that geographic location may be one reason why some ventures are able to acquire the resources needed to internationalize while others cannot. We use ecological arguments to predict an inverted U-shaped relationship between the concentration of industry clustering within a geographic location and the venture’s internationalization. We also explore whether venture characteristics influence the nature of this relationship. Our hypotheses are regressed on international intensity and scope, and analyzed through a sample of 156 publicly held new ventures. Results confirm that location influences new venture internationalization, and firm characteristics impact the nature of the relationship.

Bridging the Gap in Expectations Between International Students and Academic Staff

Abstract: This article is concerned with the transition into higher education in the United Kingdom of students with an East Asian background. Such a fusion of cultures (the Western individualist culture and...

Is higher education in really ‘internationalising’?

Abstract: It is a widely accepted maxim that, like business generally, higher education is globalising. For many countries, higher education is now an important export sector, with university campuses attracting international students from around the world. Licensing production, in the form of franchising degree provision to international partners, is beginning to mutate into foreign direct investment as many universities set up campuses in other countries. While there are clearly parallels between the globalisation of business and higher education, this paper examines the supply- and demand-side drivers within the university sector. It argues that an alignment of special factors, rather than an inexorable trend towards commercialisation, has caused the recent internationalisation of higher education and concludes that current trends are unsustainable in the medium-term.

Research in International Education

Abstract: Until recently, international education has existed at the margins of educational research. However, in the current context of globalization, international education has moved closer to the center of educational research throughout the world. In this article, the authors identify, describe, and analyze six distinct research approaches to international education: comparative and international education, internationalization of higher education, international schools, international research on teaching and teacher education, internationalization of K-12 education, and globalization of education. Within each approach, the authors discuss the historical context and the global political, economic, social, and cultural shifts that have shaped the research approach; map the major research trajectories that have developed; discuss the audience and research community; and analyze strengths and weaknesses. The authors conclude with a discussion of emergent trends within research in international education.

The Internationalization of Corporate R&D: A Review of the Evidence and Some Policy Implications for Home Countries

Abstract: A review of the existing evidence on the degree of internationalization of the innovative activities of MNEs reveals three main trends. These are the continuing reliance of firms on the home country as a base for innovation, structural changes in MNEs towards more affiliate autonomy, and a small but growing presence of cross-border innovative activities in a group of non-traditional host countries. We argue that these trends pose two interrelated policy challenges for home countries. First, governments need to ensure that the national innovation system enables domestic MNEs to engage in global knowledge sourcing in a way that is complementary to their activities in the home base. Second, the continued importance of publicly funded R&D to corporate innovation implies that home countries, along with MNEs, need to be actively engaged in the standard setting processes in global markets in order to shape an appropriability regime that allows for the effective capture of economic gains from innovation.

A Foundation for the Internationalization of the Academic Self

Abstract: This article identifies the limitations of contemporary organizational theory on the internationalization of higher education in guiding and supporting internationalization activities at the level of the academic Self. A way forward is provided through Cranton's notion of authenticity in teaching in higher education, which presents a platform for understanding the academic Self through critically reflective and self-reflective processes. Cranton's work is then expanded using the concept of cosmopolitanism to enhance the potential for individual teachers to internationalize their personal and professional outlooks. In sum, this article highlights the importance of the exhortation from Socrates to know thyself as a precondition to better understand Others. Furthermore, the article provides the fundamental underpinnings of a conceptual framework for the internationalization of the academic Self.

The Internationalization of Firms From India: Investment, Mergers and Acquisitions

Abstract: This paper analyses the rapid expansion in outflows of foreign direct investment from India and the spurt in foreign acquisitions by Indian firms, during the past decade, situated in the wider context of international investment from developing countries. Much of the investment was in manufacturing activities and most of the acquisitions were in industrialized countries. The economic stimulus and the strategic motive for the internationalization of firms from India were provided by a range of underlying factors driving the process, which differed across sectors and firms. The rapid growth in investment and acquisitions by Indian firms were partly attributable to factors implicit in the liberalization of the policy regime and the greater access to financial markets; but it must be recognized that Indian firms could not have become international without the capacity and the ability to compete in the world market. The attributes of Indian firms, which created such capacities and abilities, are embedded in th...

Internationalization and performance: The moderating effects of organizational learning

Abstract: By proposing a conceptual outline for a general model that explains the internationalization–performance link, we test the moderating effects of organizational learning on the relationship between internationalization and performance empirically. Integrating two distinct literature streams from the organizational learning perspective and the resource-based view, we present an integrated, multidimensional framework for analyzing multinational enterprises’ (MNEs’) resources, internationalization, and organizational learning, as well as their associated impact on firm performance. Specifically, using a sample of 110 American MNEs, we find that while certain MNE resources motivate and precede internationalization, social and market learning (whereas technological learning does not) moderates the relationship between internationalization and performance. These findings extend prior research by establishing the importance of the relationships among MNE resources, internationalization, organizational learning, and firm performance.

Role of international trade shows in small firm internationalization: a network perspective

Abstract: Purpose – The impact of trade shows on the internationalization of participating small exporting firms in terms of growth and expansion has gone largely unstudied, as has their effectiveness in network‐building activities. Using the network model of internationalization, the purpose of this paper is to investigate the role international trade shows play in the internationalization process of small exporting firms in Ireland and New Zealand (NZ).Design/methodology/approach – Taking a two‐tier approach, first, qualitative interviews were conducted with a sample of 37 Irish‐ and NZ‐based export‐intensive seafood firms, followed by in‐depth cases of three Irish export start‐ups.Findings – Trade shows go well beyond being a marketing and information platform and make an important contribution to establishment and enhancement of a network infrastructure for enabling such firms to grow and expand internationally.Research limitations/implications – This paper provides a research basis for exploring the role of tr...

Internationalization or International Marketing? Two Frameworks for Understanding International Students' Choice of Canadian Universities

Abstract: This paper discusses two important concepts—internationalization and the international marketing of higher education—and how they influence international students' choice of Canadian universities. The paper is based on two studies: one on 140 East Asian international graduate students who enrolled at two large Ontario universities in the academic year 2003–2004, and the other on 95 international undergraduate students who enrolled at an Ontario university in academic year 2005–2006. The research findings show that market segmentation determines the applicability of internationalization and/or marketing of higher education. Activities related to the internationalization of education play a critical role in influencing the research-oriented students' choice of a Canadian graduate school. Marketing activities have a direct impact on graduate students' choice in professional programs. “Twinning” or “incountry” programs—a blend of internationalization and international marketing approach—have a strong...

Mountains in a flat world: why proximity still matters for the location of economic activity

Abstract: Thomas Friedman (2005, The World Is Flat: A Brief History of the Twenty-First Century. New York: Farrar, Straus, and Giroux) argues that the expansion of trade, the internationalization of firms, the galloping process of outsourcing and the possibility of networking are creating a ‘flat world’: a level playing field where individuals are empowered and better off. This paper challenges this view of the world by arguing that not all territories have the same capacity to maximize the benefits and opportunities and minimize the risks linked to globalization. Numerous forces are coalescing in order to provoke the emergence of urban ‘mountains’ where wealth, economic activity and innovative capacity agglomerate. The interactions of these forces in the close geographical proximity of large urban areas give shape to a much more complex geography of the world economy.

The Internationalization of Inventive Activity: A Gravity Model Using Patent Data

Abstract: This paper discusses the extent and the determinants of the internationalization of European inventive activity, between 1990 and 2004, using an innovative method to treat the information contained in the European Patent Office's Patstat database. The observed level of internationalization of inventive activities, while being rather low, has steadily increased over time. The amount of collaboration between actors residing in different countries is assessed by means of a "gravity model", as it is familiar in the literature on international trade. The amount of bilateral collaboration is positively affected by the presence of a common language and a common border, and by the common participation in the European Union. Participation in the Euro Zone is also found to have a (marginally) negative effect. International collaboration is negatively affected by distance, with estimated elasticities that are significantly smaller than the ones that characterize international trade. Contrary to the rumors about the "death of distance", this effect has become stronger in recent years.