Showing papers on "Internationalization published in 2015"
01 Jan 2015
TL;DR: The theme of the book suggests that international interdependence between firms and within industries is of great and increasing importance as discussed by the authors, and analyses of international trade, international investments, industrial organisation and international business behaviour attempt to describe, explain and give advice about these interdependencies.
Abstract: The theme of the book suggests that international interdependence between firms and within industries is of great and increasing importance. Analyses of international trade, international investments, industrial organisation and international business behaviour attempt to describe, explain and give advice about these interdependencies. The theoretical bases and the level of aggregation of such analyses are naturally quite varied.
1,258 citations
TL;DR: In the early 1990s, a Journal of International Business Studies article, "Innovation, Organizational Capabilities, and the Born Global Firm" provided a framework for the phenomenon of early and rapid internationalization among young, entrepreneurial firms as discussed by the authors.
Abstract: Our 2004 Journal of International Business Studies article, “Innovation, Organizational Capabilities, and the Born Global Firm” provided a framework for the phenomenon of early and rapid internationalization among young, entrepreneurial firms. This work can be characterized as an integration of marketing, entrepreneurial, and capability-based thinking around exporting, positioned as the born global exporter. The article also reported findings from a national study of start-up firms that expanded abroad early in their evolution. In the present commentary, we reflect on the contributions of the 2004 article, review the scholarship on the topic over the past decade, and offer suggestions for future inquiry. While the incidence of early internationalization by firms was a novel concept two decades ago, today such firms are found in abundance in many countries. Yet many unresolved research questions remain, including the crucial topic of what happens to “born global” firms as they grow and mature over time. Similarly, the issue of why some firms internationalize early, others late in their evolution, and still others choose to remain local, is a fundamental question for international business scholarship.
670 citations
Book•
27 Mar 2015
TL;DR: This book presents a Conceptual Framework for Internationalisation of the Curriculum and discusses the process of internationalising the curriculum, as well as resources and case studies.
Abstract: The drive to internationalize higher education has seen the focus shift in recent years towards its defining element, the curriculum. As the point of connection between broader institutional strategies and the student experience, the curriculum plays a key role in the success or failure of the internationalization agenda. Yet despite much debate, the role and power of curriculum internationalization is often unappreciated. This has meant that critical questions, including what it means and how it can be achieved in different disciplines, have not been consistently or strategically addressed.
This volume breaks new ground in connecting theory and practice in internationalizing the curriculum in different disciplinary and institutional contexts. An extensive literature review, case studies and action research projects provide valuable insights into the concept of internationalization of the curriculum. Best practice in curriculum design, teaching and learning in higher education are applied specifically to the process of internationalizing the curriculum. Examples from different disciplines and a range of practical resources and ideas are provided. Topics covered include:
why internationalize the curriculum?;
designing internationalized learning outcomes;
using student diversity to internationalize the curriculum;
blockers and enablers to internationalization of the curriculum;
assessment in an internationalized curriculum;
connecting internationalization of the curriculum with institutional goals and student learning.
Internationalizing the Curriculum provides invaluable guidance to university managers, academic staff, professional development lecturers and support staff as well as students and scholars interested in advancing theory and practice in this important area.
312 citations
TL;DR: In this article, the authors compared the performance of AMNE R&D internationalization by comparing it to that by AMNE in the context of an emerging, knowledge-intensive industry and found that these two are fundamentally different processes.
Abstract: Research and development (R&D) internationalization is on the rise for advanced economy multinationals (AMNEs) as well as emerging economy multinationals (EMNEs). We study EMNE R&D internationalization by comparing it to that by AMNEs in the context of an emerging, knowledge-intensive industry. We find that these two are fundamentally different processes. While the internationalization of AMNEs’ R&D activities can largely be explained in terms of the twin strategies of competence exploitation and competence creation, EMNE R&D internationalization is rooted in the firms’ overall catch up strategy to get on par with industry leaders. An in-depth comparison of knowledge flows reveals that within AMNEs, headquarters often serves the primary source of knowledge for R&D subsidiaries. In contrast, within EMNEs, headquarters accesses knowledge from R&D subsidiaries in advanced economies for innovation catch-up. Within this dichotomy, the innovative capabilities of EMNE headquarters develop more slowly and with greater difficulty than those of AMNE subsidiaries.
303 citations
TL;DR: In this paper, a critical review of the Journal of International Business Studies Decade Award-winning article offers numerous contributions to international business research, and the resultant implications and the question of when it is appropriate to use the term "born global" are discussed.
Abstract: Knight and Cavusgil’s Journal of International Business Studies Decade Award-winning article offers numerous contributions to international business research. As one example, it advances cross-disciplinary conversation about entrepreneurial internationalization. A critical review of their study reveals, however, that certain findings require reinterpretation. This commentary does so, discussing the resultant implications and the question of when it is (in)appropriate to use the term “born global”. Parts of Knight and Cavusgil are then used as a foundation to identify research questions at the level of the firm. Finally, points from Cavusgil and Knight’s retrospective are used to argue that we need greater understanding of the individual(s) that are central to the firm’s internationalization behaviour. Suggestions for research are made by drawing on concepts and theory from the entrepreneurship, innovation and psychology literatures.
277 citations
01 Jan 2015
TL;DR: The concept and definition of Internationalization at Home (IaH) were first introduced in 2001 by Crowley et al. as discussed by the authors, and since then, strongly related and overlapping concepts and definitions have emerged, notably Internationalization of the Curriculum and Campus Internationalization, leading to confusion over terminology and risk distracting attention from the main job of implementing internationalized curricula.
Abstract: The term “Internationalization at Home” and its definition were first introduced in 2001 (Crowther et al 2001). Since then, strongly related and overlapping concepts and definitions have emerged, notably Internationalization of the Curriculum and Campus Internationalization, which have led to confusion over terminology and risk distracting attention from the main job of implementing internationalized curricula. This chapter focuses on the concept and definition of Internationalization at Home. It first critically explores three accepted definitions: 1. Internationalization; 2. Comprehensive Internationalization; and 3. Internationalization of the Curriculum. This is followed by a discussion of three notions which are more contested: the distinction between internationalization at home and abroad; the OECD definition of an internationalized curriculum; and Campus Internationalization. Their similarities to and differences from Internationalization at Home (IaH) are discussed. Next, recent developments in conceptualizing Internationalization at Home and in its implementation are presented. It will be argued that, while Internationalization of the Curriculum is the overarching term, the concept of IaH within that is still valuable in certain contexts and for certain purposes. On the basis of these arguments, it is maintained that the current definition of IaH does not provide sufficient support for those with an interest in internationalizing domestic curricula. The authors therefore propose a new working definition and identify challenges that await those who want to implement Internationalization at Home.
266 citations
TL;DR: In the last two decades, the concept of the internationalization of higher education has moved from the fringe of institutional interest to the very core as mentioned in this paper, and while gaining moral weight, its content seems to have deteriorated.
Abstract: Over the last two decades, the concept of the internationalization of higher education has moved from the fringe of institutional interest to the very core. While gaining moral weight, its content seems to have deteriorated. There is an increasing commercialization under the flag of internationalization. This attitude has exacerbated the devaluation of internationalization and the inflation of defensive measures. While in need of more philosophy, we also require a greater sense of reality. We need to rethink and redefine the way we look at the internationalization of higher education in the present time.
218 citations
212 citations
TL;DR: In this article, the authors reflect on the important contribution of this paper, and suggest some directions for the future development of research into firms that choose to operate internationally practically from the start of their operations.
Abstract: Knight and Cavusgil’s award-winning article has played an important role in the development of the growing body of research on companies that internationalize early and rapidly. These “born global” firms represent important contributors to many economies, often as key players in ecosystems that support large multinational enterprises. Despite their growing importance, our understanding of how and why these firms develop and implement their internationalization strategies, and what makes them successful, remains incomplete. Addressing such questions has contributed substantially to the development of the research domain of international entrepreneurship (IE), which focuses on entrepreneurial aspects of doing business across borders, in the context of both small and large firms. While IE is much broader than born globals, these firms are central to the IE domain and the impact of the Knight and Cavusgil paper has helped to develop a stronger awareness of the important linkages and intersections between IE and the wider international business research community. We reflect on the important contribution of this paper, and suggest some directions for the future development of research into firms that choose to operate internationally practically from the start of their operations.
211 citations
TL;DR: In this paper, the authors identify seven knowledge domains and interdependencies that may make up decision-makers' mental models and argue these cognitive processes are crucial microfoundations for modeling heterogeneity in firm-level internationalization strategies and performance.
Abstract: How do the senior decision-makers within a multinational enterprise (MNE) think through and determine an internationalization decision? Despite the cognitive foundations of several key constructs, standard internationalization models do not explicitly incorporate managerial cognition. We argue that the boundedly rational decision-maker is underspecified in international business models and this oversight contributes to weak empirical findings on experience, learning, internationalization strategy and MNE performance. Drawing on these extant models, we identify seven knowledge domains and interdependencies that may make up decision-makers’ mental models. Granted rare access to senior executives and board members engaged in a foreign direct investment decision, we find substantial heterogeneity in the mental models these individuals used to make sense of the opportunity. This variance aligns with differences in individuals’ experience along four dimensions: international breadth, depth, diversity and prior strategic decision-making. We argue these cognitive processes – how individuals exercise judgment about information search parameters, assessment and decision integration, and how decision teams coalesce in their thinking – are crucial microfoundations for modeling heterogeneity in firm-level internationalization strategies and performance.
TL;DR: This paper explored previously discarded phenomena in the internationalization process literature, namely the non-predictive logic of foreign market entry, and employed effectuation theory to examine how small and medium-sized enterprises (SMEs) network during internationalization.
Abstract: This paper explores previously discarded phenomena in the internationalization process literature, namely the non-predictive logic of foreign market entry, and employs effectuation theory to examine how small and medium-sized enterprises (SMEs) network during internationalization. It integrates effectuation theory with the revisited Uppsala internationalization process model to understand the unintentional aspect of networking by internationalizing SMEs. The research design is a multiple-case study approach. The findings show how entrepreneurs network with interested partners, instead of carefully selecting international partners according to predefined network goals. Entrepreneurs who network effectually enter markets wherever an opportunity emerges, and commit to network relations that increase their means. Network relations become an integrating point for effectuation theory from entrepreneurship research and the revised Uppsala model from international business. This bridge between the two areas suggests some implications for network research in International Entrepreneurship.
TL;DR: A brief overview of five prevalent myths about internationalisation in higher education can be found in this paper, with the purpose of identifying and reflecting on these myths to ensure that internationalisation is on the right track and that we are aware of intended and unintended consequences as higher education sectors weather turbulent times where competitiveness, rankings, and commercialism seem to be the driving forces.
Abstract: As internationalisation of education matures, it is becoming a more important and complex process. It is firmly embedded in institutional mission statements, policies, and strategies as well as national policy frameworks. This signals that internationalisation has come of age and is a legitimate area of policy, practice, and research in higher education. This article suggests that over the years implicit assumptions have developed about internationalisation, myths perhaps, that need to be exposed and discussed. A brief overview of five prevalent myths follows. The five myths are: (1) foreign students as agents of internationalisation of institutions; (2) international reputation as a proxy for quality; (3) international institutional agreements as a measure of success; (4) international accreditation as a measure of quality; and (5) global branding as a measure of institutional success. A common element of each myth is that the benefits of internationalisation or the degree of internationality can be measured quantitatively. The purpose of identifying and reflecting on these myths is to ensure that internationalisation is on the right track and that we are aware of intended and unintended consequences as higher education sectors weather turbulent times where competitiveness, rankings, and commercialism seem to be the driving forces.
TL;DR: In this article, the authors examined how marketing and research and development capabilities as well as degree of internationalization influence the innovation performance of SMEs and found that internationalization has a positive effect on innovation performance when SMEs' R&D capability or marketing capability is high.
TL;DR: In this article, an institution-based framework highlighting intra-country (sub-national) regional differences within a large emerging economy was developed to investigate how home country institutions influence firms from emerging economies to engage in outward internationalization.
TL;DR: In this paper, the effect of R&D internationalization on firm innovation performance was investigated using a longitudinal dataset of Taiwanese high-tech firms, which revealed a curvilinear U-shaped relationship.
TL;DR: In this article, a more complete explanation of learning, its relationship to innovation, and their joint effect on early internationalization was developed, and case studies of early internationalizing firms from Australia and the United States were conducted.
Abstract: Organizational learning has been studied as a key factor in firm performance and internationalization. Moving beyond the past emphasis on market learning, we develop a more complete explanation of learning, its relationship to innovation, and their joint effect on early internationalization. We theorize that, driven by the founders’ international vision, early internationalizing firms employ a dual subsystem of dynamic capabilities: a market subsystem consisting of market-focused learning capability and marketing capability, and a socio-technical subsystem comprised of network learning capability and internally focused learning capability. We argue that innovation mediates the proposed relationship between the dynamic capability structure and early internationalization. We conduct case studies to develop the conceptual framework and test it in a field survey of early internationalizing firms from Australia and the United States. Our findings indicate a complex interplay of capabilities driving innovation and early internationalization. We provide theoretical and practical implications and offer insights for future research.
TL;DR: In this paper, the authors examine how the state and institutional idiosyncrasies in the home country help emerging market enterprises (EMEs) internationalize and demonstrate that state ownership has a strong independent effect on the international expansion of EMEs.
Abstract: While the competitive advantages of firms from developed economies are well understood, knowledge of the advantages that enable emerging market enterprises (EMEs) to expand overseas remains limited. Our analysis goes beyond theorizing that focuses on firm resources, enhancing the understanding of how EMEs expand abroad by internalizing home-country institutional advantages that extend beyond the firm boundaries. More specifically, we examine how the state and institutional idiosyncrasies in the home country help EMEs internationalize. We demonstrate that state ownership has a strong independent effect on the international expansion of EMEs. This effect, however, is contingent upon firms' own resources and other location- and industry-specific forces pertaining to the market orientation of each subnational region and the institutional policies within a given industry.
TL;DR: In this paper, the influence of the use of institutional networks by SMEs in the context of international entrepreneurship is examined and the significance of this influence is continuous and intertwined in the different stages of the internationalization process.
TL;DR: In this paper, the authors examined the role of ownership structure on international diversification during institutional transition, and showed that the ownership concentration, along with the identity of owners, will influence firm internationalization.
Abstract: We examine the role of ownership structure on international diversification during institutional transition. We also examine how domestic and foreign ownership, as well as business group affiliation, moderate the performance consequences of international diversification. Our theoretical framework integrates agency and institutional perspectives with internationalization research. We argue that the ownership concentration, along with the identity of owners, will influence firm internationalization. Our results, based on a longitudinal sample of more than 5,000 publicly listed Indian firms during 1990–2005, demonstrate that greater domestic or foreign ownership is associated with a higher level of international diversification by emerging economy firms. Furthermore, a negative relationship emerges between international diversification and firm performance, moderated by the ownership concentration of domestic owners and group affiliation.
21 Jan 2015
TL;DR: In this article, the dynamic of exploitation and exploration in international networks for companies that enter new foreign markets is examined, while exploitation is related to experiential learning in closed networks.
Abstract: We examine the dynamic of exploitation and exploration in international networks for companies that enter new foreign markets. While exploitation is related to experiential learning in closed netwo ...
Book•
16 Jul 2015
TL;DR: Alvaro Cuervo-Cazurra and Ravi Ramamurti as mentioned in this paper discussed the limits of new multinational enterprises: institutions, systems, and'members-only' location advantages.
Abstract: Foreword 1. Introduction Alvaro Cuervo-Cazurra and Ravi Ramamurti Part I. EMNCs in Historical Perspective: What Is New?: 2. Theoretical debates on multinationals from emerging economies Yair Aharoni 3. What does history add to EMNC research? Andrew Godley Part II. Unique Capabilities of EMNCs: Do They Exist?: 4. Modern international business theory and emerging market multinational companies Alan M. Rugman and Quyen T. K. Nguyen 5. The limits of 'new' multinational enterprises: institutions, systems, and 'members-only' location advantages Rajneesh Narula 6. The evolution of EMNCs and EMNC thinking: a capabilities perspective Donald Lessard 7. EMNCs and catch-up processes: the case of four Indian industries Kristin Brandl and Ram Mudambi Part III. The Internationalization of EMNCs: Different Drivers?: 8. The global expansion of EMNCs: paradoxes and directions for future research Peter J. Williamson 9. Process perspectives on the growth of emerging economy multinationals Klaus E. Meyer 10. Migrating EMNCs and the theory of the multinational Helena Barnard 11. Business groups, institutional transition, and the internationalization of firms from emerging economies Torben Pedersen and Tamara Stucchi 12. Country of origin effects on internationalization: insights from Brazil Afonso Fleury and Maria Tereza Leme Fleury Part IV. A Path for the Future: 13. Conclusion: an agenda for EMNC research Alvaro Cuervo-Cazurra and Ravi Ramamurti Further reading Index.
TL;DR: In the last 20 years, the literature on internationalized small firms discussed at length the speed of internationalization, illustrating the importance of born globals as discussed by the authors, and the geographic scope of...
Abstract: During the last 20 years, the literature on internationalized small firms discussed at length the speed of internationalization, illustrating the importance of born globals. The geographic scope of...
TL;DR: In this paper, the authors examined the decision-making process for entrepreneurial firms when entering foreign markets and how and why they entered those markets and found that entrepreneurs differentiate between foreign market selection and foreign market entry during their internationalization process.
Abstract: Purpose - The purpose of this study is to examine the decision-making process for entrepreneurial firms when entering foreign markets and how and why they entered those markets. Design/methodology/approach - A nascent theory in entrepreneurship called effectuation is combined with internationalization process theory as the conceptual framework to study decision-making under uncertainty. The central concept in both these theories is relationships and how they can be used to gain knowledge and thus reduce uncertainty and in the case of effectuation to co-create opportunities to enter foreign markets. The research design involves a multiple case study of software firms from Finland and New Zealand. Findings - It was found that entrepreneurs differentiate between foreign market selection and foreign market entry during their internationalization process, potentially using different decision-making processes in them. They tend to interweave effectuation and causation logics as substitutes in their decision-making. Uncertainty during foreign market entry is not always a barrier because it can provide opportunities depending on the logic used. In addition, there is evidence that entrepreneurs who have existing relationships in foreign markets tend to use effectuation to select and enter foreign markets. Originality/value - This paper transposes effectuation from its original field of entrepreneurship research to the context of internationalizing entrepreneurial firms. Consequently, it contributes toward understanding the decision-making process for selecting and entering foreign markets.
TL;DR: In this paper, the authors build on behavioral economics and propose a classification of internationalization motives as the result of the interaction among two dimensions, an economics-driven exploitation of existing resources or exploration of new resources, and a psychology-driven search for better host country conditions or avoidance of poor home country conditions.
Abstract: – The purpose of this the paper is to review the motives for internationalization to clarify previous arguments and provide a theory-driven classification. , – The authors build on behavioral economics and propose a classification of internationalization motives as the result of the interaction among two dimensions, an economics-driven exploitation of existing resources or exploration of new resources, and a psychology-driven search for better host country conditions or avoidance of poor home country conditions. , – These two dimensions result in four internationalization motives: sell more, in which the company exploits existing resources at home and obtains better host country conditions; buy better, in which the company exploits existing resources abroad and avoids poor home country conditions; upgrade, in which the company explores for new resources, and it obtains better host country conditions; and escape, in which the company explores for new resources and avoids poor home country conditions. , – This theory-driven classification provides predictive power for future analyses of internationalization motives.
TL;DR: In this article, internationalization has transformed higher education institutions and systems but there is much confusion as to what an international, binational, transnational, cosmopolitan, multinational, or gl...
Abstract: Internationalization has transformed higher education institutions and systems but there is much confusion as to what an international, binational, transnational, cosmopolitan, multinational, or gl...
TL;DR: In this paper, the authors analyze how knowledge, learning, and strategic intent shape export intensity during the period surrounding the initiation of export activities in small, independent firms, and find that pre-existing foreign knowledge influences export intensity in younger firms, but not in older ones.
TL;DR: In this article, the authors proposed that trade and direct investment interdependence relate to dyadic BSA cooperation via two mechanisms: financing insulation from international liquidity shocks and reduced transaction costs of cross-border exchange for local firms.
Abstract: For several years now, China has implemented policies to promote the international use of its national currency, the Renminbi (RMB). As part of these efforts, the People's Bank of China (PBC) has negotiated 25 bilateral currency swap agreements (BSAs) with foreign central banks. These make it easier for firms in both China and its partner countries to settle cross-border trade and direct investment in RMB. We seek to explain why China and these countries cooperate via BSAs. We theorize that trade and direct investment interdependence relate to dyadic BSA cooperation via two mechanisms: financing insulation from international liquidity shocks and reduced transaction costs of cross-border exchange for local firms. Additionally, we expect the presence of preferential trade agreements (PTAs) and bilateral investment treaties (BITs) will increase the probability of dyadic BSA cooperation. BSAs are natural extensions of these existing agreements. They represent an additional layer of state-level formal cooperation that further reduces barriers to cross-border trade and direct investment. Our empirical analysis finds that both de facto trade interdependence and de jure economic integration via PTAs and BITs increase the probability of BSA cooperation between China and partners.
TL;DR: In this article, the relationship between family involvement and internationalization of family small-medium enterprises is studied, examining the effects exerted by the three main dimensions that influence family involvement in small-scale enterprises.
Abstract: This paper studies the relationships between family involvement and internationalization of family small and medium enterprises (), examining the effects exerted by the three main dimensions that c...
DOI•
06 Aug 2015
TL;DR: In a context of economic crisis and increased anti immigration politics, international students and skilled immigration are high on the political and educational agenda in The Netherlands as well as other European countries.
Abstract: In a context of economic crisis and increased anti immigration politics, international students and skilled immigration are high on the political and educational agenda in The Netherlands as well as other European countries There is an increasing tension between short term anti-immigrant tendencies and budget cuts for research and development on the one hand, and the long term need for skilled immigration to stay competitive in the global knowledge economy on the other hand In the past, rationales for attracting international students were either trade, aid or cooperation, global competition for highly skilled manpower has become a strong new pull factor in international student circulation, and policies are developed by The Netherlands and other European countries to stay competitive