THEORIES OF INTERNATIONALIZATION

THEORIES OF INTERNATIONALIZATION

4. PROPOSAL FOR THE CLASSIFICATION OF MODELS AND THEORIES OF INTERNATIONALIZATION FOR TECHNOLOGY-BASED SMEs

1. INTERNATIONALIZATION FROM THEECONOMIC PERSPECTIVE

2. INTERNATIONALIZATION FROM THEPROCESS PERSPECTIVE

3. THEORIES ORIENTED TO THE INTERNATIONALIZATION OF SMEs

Types of theory

types of theory

Types of theory

types of theory

1.1. Theory of Monopolistic Advantage

2.1. The Uppsala model ‒ Nordic School

3.1. network theory

4.1. pioneering theories

2.2. The innovation model

4.2. second generation theories

1.2. Internationalization Theory

3.2. global born theory

1.3. Dunning's Eclectic Paradigm

3.3. Phases, processes and life cycle approach

4.3. Contemporary models ‒ New perspectives

2.3. Systemic planning model

2.4. Vernon's Product Life Cycle Model

1.4. Macroeconomic approach

3.4. Strategic approach

1.5. Competitive advantage model of nations

1.1. Theory of Monopolistic Advantage

According to:

business example

Hymel (1976)

examine:

at the business level the types of Exclusive competitive advantage

Productive

Differential mark:

Commercial

Value added to the market

may be of origin:

Settle abroad

Search:

Product diversification

Technological

1.2. Internationalization Theory

It is based on:

business example

(Buckley y Casson, 1976)

Raises:

Focused on:

Internal processes for the transfer of business information.

Preventing costs in the future

1. Existence of advantages when locating activitiesabroad.

2. Organizing such activities may be more efficient than selling or assigning them to companies in the foreign country in question.

Based on:

It is directed to:

Guarantees:

Associated with:

Transaction costs:

Unit costs

International benefits

The imperfections of foreign markets.

Classified in:

Comparing:

Delays

Productivity at the national level

Conflicts

Difficulty assigning a value

Export of products abroad

Specific aspects

1.3. Dunning's Eclectic Paradigm

Linked to the ideals of:

business example

Dunnig

Third

Second

Quarter

First

Possess own advantages

Export them by themselves

Profitability of production plants abroad.

You must have affinity with the long-term strategy

Wanted:

They are divided to:

If desired:

Is generated:

Agreed for:

Internationalize the advantages

Participate in foreign markets, compared tolocal businesses.

Specific advantages

Advantages of established companies over new ones

Specific factor endowmenttransferable across its borders

The organization

Through:

Of:

Costs

The characteristicsidiosyncrasy of being multinational

For example:

Your value chain

Agreed for:

Through:

Factor productivity

Organizational capacity

Reduction of transaction costs

Outreach Economic Benefits

Ideological difference

As:

Prioritize product quality

Structural character

Quality

The implementation of new activities

Operational flexibility

Ease of access to resources

Some are:

Avoid risks and breach of contract

Price

Changes in production

Size

Experience

Global sourcing

1.4. Macroeconomic approach

Focuses on:

business example

Kojima (1973)

Study:

Say what:

His theory has a macroeconomic focus on FDI

The trajectory of Japanese companies

It intends to explain:

The intention is:

It is characterized by:

The reasons that companies have to carry out the IDE

Improve the productivity of recipient countries

Produce at lower costs than local companies

Based on:

Given to:

It is possible by:

Japanese

Japanese vs American Investment Theory

The inflow of resources from Japanese companies

Implementing good capital and resource strategies

American

Neoclassical models

Especially:

Competitive advantage

Managerial skills

Direct investment theory

Ability to organize mass production systems

Trading theories

Have access to Japanese distribution networks

1.5. Competitive advantage model of nations

In accordance with:

business example

Porter

Important elements to consider:

International markets depend on:

The greater the customer demand, the greater the company's effort to satisfy them.

Costs of productive factors

Efficiency relative to cost

It means that:

Domestic Demand Conditions

They are divided into:

The existence of multinational companies provides international competitiveness to the country

Advanced:

Basics:

Related Industries

Where:

Are:

make reference to:

Naturally occurring factors

Those that are not found naturally

Innovation or search for new markets

The degree of rivalry in the sector

Drives:

As:

As:

Whether they are:

Skilled labor

Cheap labor

To a greater or lesser extent in the countries

The role of government in the international competitiveness of the company

Increase business competitiveness

Comunication system

intend:

Natural resources

Scientific infrastructure

Capital

2.1. The Uppsala model ‒ Nordic School

Indicates that:

There are 3 situations:

The psychological distance

Resources increase by gaining more experience in activities

Tends to:

Lots of resources available

Its stages are:

Incorporate through the psychologically closest country market.

Sporadic or non-regular activities export

Stable market conditions

Exports through independent representatives

Gain significant market experience

Establishment of a branchbusiness abroad

Establishment of production units in the foreign country

business example

2.2. The innovation model

Internationalization is:

Stages:

Stands out:

A business innovation process

The cumulative nature of decisions

1. Domestic market

2. Pre-exporter

Is required:

leading:

3. Experimental exporter

A broad commitment

Being within the limits imposed by the market

Innovation

4. Active exporter

internationalization

5. Committed exporter

Next to:

The internal capabilities of the company

business example

2.3. Systemic planning model

According to:

business example

Root (1994)

2. Statement of objectives

3. Input mode selection

1. Measurement of market opportunities

4. Formulation of the marketing plan

5. Execution

2.4. Vernon's Product Life Cycle Model

It is based on:

business example

Vernon (1966)

Stages:

replaced:

3. Maturity:

2. Growth:

4. Decline:

1. Introduction:

The unrealism of the theory of comparative advantage

it takes place when:

Abandonment of:

It is given by:

Increase:

In the country of origin

Implementing:

The export activity

Manufacturing is diverted to countries with cheaper labor

The country of origin

Product innovation

Added value based on company assets

Investments in manufacturing plants

Scale economics

With the objective of:

In countries with:

Uncertainty

Achieve economies of scale

Expanding demand

3.1. network theory

It is based on:

business example

internationalization process

extended network theory

network approach

dynamic element of network relations

entry into foreign markets

trips abroad and migratory movements stimulate the perception of foreign market opportunities

function of interactions between local firms and their international networks

arises from:

it's based on:

indicates:

interaction between the company and the external network

social network theory to explain how companies internationalize

therefore:

approach to committed members

Opportunities in foreign markets

give place to:

limited by:

gives rise to:

through:

more opportunities to exploit the benefits

benefits of the information provided by each member of the network

relationships with partners in countries that are new

members of the international contact network

Increased engagement in already established networks

Creation of connections to other markets

staff experience

social relations that the decision maker maintains

development of social networks

integration of the positions held in the networks between different countries

Relationship with customers and providers

3.2. global born theory

International Start-up companies

business example

activities with a global approach since its creation

influential factors:

Technological developments in production, transport and communication

The new market conditions

The most developed global capabilities of entrepreneurs

as a consequence of:

It involves:

due to:

small scale operations are more attractive

increase in market niches

Few demand in domestic markets

The transport of people and goods is cheaper, more reliable and more frequent

increased gain of international experience12

more homogeneous markets

production of specific parts of a product

Fast distribution of innovative products

greater viability in current markets

increased mobility and cross-cultural education

new way of seeing the world

3.3. Phases, processes and life cycle approach

According to:

business example

Chen H. and E. Huang (2004)

Ways to carry out an internationalization process:

Alliances to develop products

Alliances to build retail distribution channels in global and local markets.

After-sale service alliances

Alliances for the distribution of your products

factors that influence:

growth patterns and speed varies according to initial conditions

large companies tend to grow faster than medium-sized companies

3.4. Strategic approach

business example

strategic options

Joint ventures and strategic alliances

exportation

it is noted:

IT IS:

microenterprises use a reactive export strategy

entry strategy for small businesses with limited resources and market knowledge

Based on:

due to:

use of competitive models different from those used by exporting companies

small companies can take a more flexible approach than medium-sized companies

conditioned by the choice of the competitive model that they follow to internationalize

AN expansion strategy is safer when you decide to involve trusted people

public business management policies are created for companies seeking to internationalize

4.1. pioneering theories

arose in:

the 70s with the name of models of knowledge and experiential learning

business example

the most notable are:

Uppsala Model (U-Model)

The innovation model

systemic planning

establish that:

cost structure

the operating environment

internationalization processes are determined by environmental conditions

given:

such as:

networking perspectives

industry structure

models that seek to mix previous theories

4.2. second generation theories

it is understood that:

systematic and planned sequence of activities facilitate the incursion into international markets

business example

Innovation models ‒ Adaptive choice

hybrid model

complement experiential learning models

the internationalization process is generated when it tries to adapt to solve various types of dilemmas

phases

motivational aspects

considers that:

background

strategic order (standardization vs adaptation)

structural dilemmas (weak offices vs strong head office)

consumer tracking

does not apply:

increasing internationalization gradually

companies with abundant resources will make great strides in their international expansion

It is based on:

execution

Experiential learning is not necessary when foreign market conditions are stable and homogeneous

consumer tracking

Experience is transferable in similar foreign markets

4.3. Contemporary models ‒New perspectives

pretend

business example

adjust to the current knowledge society

the most notable are:

Marketing–entrepreneurship interface model

holistic model

network model

internationalization occurs by:

It is given in:

Explain:

relative performance of entrepreneurs

all parts of the value chain of a company

connection to existing networks in other countries

establishing and building new relationships in new markets

interface:

GIVE place to:

formation of transnational external links made by companies over time

risk taking

innovation

proactivity

The network approach derives from the relationship with industrial internationalization processes.

characteristics:

variation in the combination of steps to generate links

Links are made without a speed pattern

Some firms have links that cover all aspects of the value chain

Some links are more common in certain periods

The oldest companies export and import with little expansion into new links.