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Internationalization - Book Report/Review Example

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Welch & Luostarinen (1988) defined internationalization as "the process of increasing involvement in international operations." . Another definition extended by Calof & Beamish was "the process of adapting firms' operations (strategy, structure, resource, etc) to international environments" (1995). Indeed there have been other definitions and other paradigms which were extended and did in part explain the phenomenon. However internationalization remains a process which is still considerably fragmented. Of the various models now available in the literature, the two that will be focussed on are Johanson and Vahlne's Uppsala model and Oviatt and Mcdougall's theory of international new ventures.
International ventures can be driven by economics driven practices or by process driven ventures. Process driven ventures are based less on the business per say but more on the behavioural patterns of the sector. Economics driven processes on the other hand may look at factors like transaction costs, internalisation/externalisation benefits, industry capabilities etc. Johanson and Vahlne's Uppsala model and Oviatt and Mcdougall's theory of international new ventures are representatives of these two distinct types of processes respectively.
Empirical studies have been the main stay of academic research in the field of management ventures. Such studies since the 1960s have supported the view that the preliminary step for firms initially is to gain a strong foothold in their domestic market before venturing into international business. As a result of this trend the entrepreneurship literature for a long time focussed on market dimensions within a domestic setting. Entrepreneurship and internationalization were rarely looked upon at the same time. Examples of such theories based on a frequently observed pattern of incremental stages were those presented by Vernon in 1966 and a decade later by Johanson and Vahlne. The latter of the two emerged as a most widely recognized theory pertaining to the dynamics of internationalization and undoubtedly it has had much relevance for small firms and even larger organisations in the past (Johanson & Vahlne, 1990, 1977)


Prior to commencing with the main features of this work it may perhaps be important to identify the sytematic process that has been used to obtain the evidence and make a meaningful compilation. electronic means have been combined with manual searches with an attempt to decrease omiting relevant information. The use of electronic tools as a way of search was conducted by scanning Emerald as well as by searching other Internet resources, using key words such as "international new venture", "born-global", "global start-up", "international entrepreneurship" and the names of the authors mentioned. Leading journals for research in the International Business, International Marketing, and Entrepreneurship literatures have also been studied. However to remain withing the range (required word limit) not all studies have been included.

Uppsala model; an early study of the internationalisation process

Johanson and Vahlne's Uppsala model can be considered to represent the process driven ventures. This model formed the basis of several early studies of the ...Show more
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Examining the temporal limits of theory could contribute to the development of new theory or lead to the more complete and accurate specification of existing theory" (Zaheer, Albert and Zaheer, 1999, pp 726)
Internationalization is a phenomenon which is increasingly on the rise both as a market policy and as an academic research area…
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