Internationalization and network development
Download as PPTX, PDF5 likes2,334 views
The document discusses the revised Uppsala internationalization model, highlighting the significance of networks and relationships in a company's internationalization process. It contrasts born global firms with traditional approaches, emphasizing factors like market knowledge, trust, and commitment. Key managerial implications are identified, along with drivers for internationalization and the roles of channels and distributors.
Internationalization and network development
- 2. 1. Updated (2009) Uppsala model 2. Born Global vs Process Model 3. Channels, Distributors, Agents 4. Managerial implications Contents
- 3. Revised Uppsala internationalization model Single company analysis Company usually a producer Stages, decision making Multiple company analysis The network and relationships within it Nodes and threads, actors/activities/resources
- 4. Revised Uppsala internationalization process model • Interaction • Knowledge • Outperforming competitors • Individual & organizational learning Knowledge • Strengthening or weakening the network Commitment • Domestic and foreign networks Opportunity development • Technical • Legal • Economic • Personal ties Trust
- 5. Geographical market Size of investment Organizational changes Access to resources The NETWORK determines…
- 6. Relationship commitment Learning Creating Trust building Commitment decisions Market knowledge Market commitment Current activities State Change Network position The basic mechanism of internationalization: state and change aspects (Johanson & Vahlne 1977: 26) Knowledge Opportunities
- 7. Born Globals Technology Short time -> global 50% foreign sales Strategy
- 8. Behavioral approach Stage pattern Test markets Minimize risk Process Model
- 9. Born Global Firm Process Model Market International Home Experience No Yes Extend of int. Many markets Stepwise penetration Strategy Full internationalization Int. is not the core Information communications to reach market Not so important Time to internationalize Quick (0-3 years) Slow, time is not important
- 10. Business network… … the bridge to foreign markets
- 11. Channels MNCs as integrator MNCs as distributor Network Internet Combina tion
- 12. Provide Facilitate Enhance Help Agent’s role information, structure / infrastructure communication, interpretation, understanding learning building-up image and reputation
- 13. Factors of globalisa tion Knowledge The best one/ combination MNC Agent Subsidiary Theories Partners
- 14. Entrepreneurial outlook • Calculate risks • Be proactive • Flexibility as asset Managerial outlooks Drivers for internationalization • Customer driven • Provider driven • Increase profits Regional issues • Government control • Environment stability