Internationalization and network development
Mariia Kreposna
1. Updated (2009) Uppsala model
2. Born Global vs Process Model
3. Channels, Distributors, Agents
4. Managerial implications
Contents
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
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
Geographical market
Size of investment
Organizational changes
Access to resources
The NETWORK determines…
Relationship commitment
LearningCreating
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)
KnowledgeOpportunities
Born Globals
Technology
Short time ->
global
50% foreign sales
Strategy
Behavioral approachStage patternTest markets Minimize risk
Process Model
Born Global FirmProcess
ModelMarket International Home
Experience No Yes
Extend of int. Many markets Stepwise penetration
Strategy Full internationalization Int. is not the core
Information communications to reach
marketNot so important
Time to internationalize
Quick (0-3 years)Slow, time is not
important
Business network…
… the bridge to foreign markets
Channels
MNCs as integrato
r
MNCs as distribut
orNetwork Internet Combin
ation
ProvideFacilitateEnhance
Help
Agent’s role
information, structure / infrastructure
communication, interpretation, understandinglearning
building-up image and reputation
Factors of
globalisation
Knowledge
The best one/ combination
MNCAgent
Subsidiary
Theories
Partners
Entrepreneurial outlook
• Calculate risks• Be proactive• Flexibility as
asset
Managerial outlooks
Drivers for internationalizati
on• Customer
driven• Provider driven• Increase profits
Regional issues
• Government control
• Environment stability
KEEP CALM
and
MANAGE NETWORKS
Top Related