Crowdsourced translation for rapid internationalization in cyberspace: A learning perspective

This paper explores how Facebook effectively used crowdsourced translation to accelerate its rapid internationalization. We apply the learning perspective of internationalization theory to unpack what the firm learned in order to mobilize crowd-based knowledge to facilitate internationalization in the virtual context, and how it did so. Increasingly, global activities are conducted in virtual space and virtual markets and thus the paper offers insights into successful expansion in this new terrain. The findings highlight two key points: (1) the firm used cognitive/explicit learning to acquire external and codified knowledge, rather than the experiential knowledge traditionally suggested in the literature on the process of internationalization, and (2) the firm's success rested on its ability to use virtual learning tools and incentive systems to acquire, articulate and integrate knowledge from communities of internationally dispersed users – the “crowd” – to accelerate its internationalization in cyberspace. This empirical study extends internationalization theory regarding knowledge and organizational learning.     

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ABSTRACT

The authors studied how knowledge derived from firms’ relationships—the so-called second-hand knowledge—is likely to influence their internationalization process. In this article, they examine how a European producer of textiles is able to sell worldwide, including to China, a highly competitive player in this industry. This article discusses models of firms’ networks and the extent to which such networks generate important knowledge that can explain internationalization behavior—how it is able to influence the selection of foreign markets and the entry mode used. The authors use the revised version of the Uppsala model of internationalization, which emphasizes the roles of trust-building, knowledge, and creation of opportunities within relationships.     

Business Relationship Learning and Commitment in the Internationalization Process

This paper is based on a case study of an international venture and on the observations reported by a number of researchers that the received models of the internationalization process of the firm do not capture some important phenomena in the modern international business world. As several researchers argue that networks play an important role in the early internationalization the paper outlines a network model of the internationalization process of the firm. It combines the experiential learning–commitment interplay as the driving mechanism from the old internationalization process model with a similar experiential learning–commitment mechanism focusing on business network relationships. In the resulting model we can see firms learning in relationships, which enables them to enter new country markets in which they can develop new relationships which give them a platform for entering other country markets.     

The impact of industry 4.0 on the 2017 version of the Uppsala model

The emergence of Industry 4.0 offers firms internationalization opportunities employing digital platforms and emerging technologies. Relying upon the Uppsala model as applied in light of a firm case study, we contribute to the validity of the Uppsala model 2017. We respond to the counterpoint by Coviello, Kano, and Liesch (2017) to the Uppsala 2017 model, answering the question, What is the impact of Industry 4.0 on the validity of the 2017 version of the Uppsala model? This study builds on a qualitative research methodology through a single case study of Delivery Hero, a global service provider firm. We adopt an extensive longitudinal approach to understand a startup firm’s digital business concept and business evolution, including its internationalization paths. We conclude that the mechanisms of the Uppsala model are valid, but their characteristics have changed by digital and globalized value-adding processes. The dynamic capabilities possessed by the founding entrepreneur turn out to constitute a critical micro foundation for the firm’s international business success. Our findings explain these change mechanisms, illustrating the stepwise progression process led by entrepreneurial decision-making. Industry 4.0 technologies have changed the very manner by which ?rms arrange their value-adding activities with their business stakeholders in course of the firm’s internationalization. By relying on reasonable business targets, algorithms, and data management systems, real-time market monitoring enables international startup firms to learn and adopt local identities faster, thereby efficiently alleviating liabilities of foreignness.     

Cognitive foundations of firm internationalization: A systematic review and agenda for future research

Managerial cognition has a fundamental role in the internationalization of firms. However, there exists no coherent understanding of how prior research has examined and captured the cognitive foundations of internationalization. This paper provides a systematic review of this body of literature. The review identifies three main streams of research that, overall, consists of nine more specific research areas. We show that especially the areas addressing (1) managerial learning, (2) characteristics of upper echelons, (3) intra-organizational perceptions, and (4) external actors’ perceptions provide opportunities for the further advancement of internationalization literature. For harnessing these opportunities, we find that the microfoundational approach could support the empirical examination of the cognitive foundations and would notably contribute to the Uppsala model-based theorization of the firm internationalization process.     

Small firm internationalization through experiential learning: The moderating role of socialization tactics

The importance of experiential knowledge for small firm internationalization has been emphasized in the process model of internationalization, the international new venture or born-global frameworks and the management characteristics perspective in the exporting literature. However, none examines in detail under what conditions experiential learning is more important for internationalization. We borrow insights from the socialization tactics literature to theorize how the context, content and social aspects of a foreign sojourn offer different opportunities for the acquisition of experiential knowledge to support the internationalization of small firms. We suggest that socialization tactics moderate the relationship between individual international experiential knowledge and small firm internationalization. We propose that the opportunities for international experiential learning are superior when the socialization context is individual and formal (rather than collective and non-formal), the socialization content is sequential and fixed (rather than random and variable) and when socialization involves serial and investiture (rather than disjunctive and divestiture) social aspects.     

Beyond learning by experience: The use of alternative learning processes by incrementally and rapidly internationalizing SMEs

How firms learn about foreign markets and internationalization processes is an important theme in the literature on SME internationalization, evidenced by the Uppsala model’s emphasis on experiential learning as an explanation for incremental internationalization, and attempts to explain how early and rapid internationalization can be facilitated by alternative modes of learning, especially congenital learning. Yet, the learning processes used, and the content and source of learning, have not been compared systematically, especially with respect to how these evolve as firms become increasingly internationalized. This paper reports the findings of a retrospective longitudinal analysis of the learning processes, sources and foci of four New Zealand-based SMEs that internationalized incrementally, and four that internationalized rapidly. The findings demonstrate that while experiential learning is important, both incrementally and rapidly internationalizing firms use other learning modes at different stages of their internationalization, and that there are differences in the content and source of learning. Thus, the relationship between internationalization and learning processes may be more complex than the literature currently suggests, inviting further exploration of the multiple ways that SMEs learn, and the contingent factors that might influence this.     

The Internationalization Process of Services Firms

Abstract

The internationalization of services firms has not received enough attention in the literature; most studies focus on manufacturers. In order to obtain a better understanding of how services firms enter foreign markets, this study investigates the internationalization process of two Brazilian services firms using a theoretical framework from the Uppsala Model of Internationalization, the Stages Model of Internationalization and other theoretical insights from the literature. Specifically, the study looks at to what extent the internationalization process of these firms follows the patterns suggested in the literature and whether there are remarkable differences when compared to manufacturing firms.     

The decision to export: Firm heterogeneity,sunk costs,and spatial concentration

Integrating perspectives of the Uppsala model of internationalization process, international new ventures and trade theories of heterogeneous firms, this paper develops a dynamic discrete-choice model of export decisions by a profit-maximizing firm. Empirical analyses based on a panel data set of Chinese firms show that sunk costs, productivity, firm size, foreign ownership, industry competition and spatial concentration are positively associated with the decision to export, while state ownership has a negative association with the probability of exporting. However, we find that the relationships are not always uniform and depend on firm-specific idiosyncrasies. The results show that foreign-invested firms and large firms (regardless of ownership) rely on productivity performance related advantages for expanding overseas, while domestic firms, especially small- and medium-sized enterprises, build competitive advantage by leveraging agglomeration economies and the associated spillovers. Our results highlight the role of firm heterogeneity, sunk costs and spatial concentration in shaping the export behavior of firms.     

Knowledge acquisition for the internationalization of the smaller firm: Content and sources

Internationalization process research emphasizes accumulated experience and networks as sources of knowledge for internationalization. Our understanding, however, as to what this knowledge is in practice for smaller firms, the challenges they face in acquiring it, and how they address those challenges is limited. Integrating organizational learning concepts with our theoretical understanding of the small firm internationalization process, we develop a new framework for understanding knowledge acquisition processes, which are examined with a case study of 10 Scottish internationalizing firms. We find smaller firms may not have relevant experience or useful networks, and rely on sources rarely recognised before. Firms used recruitment, government advisors and consultants to acquire indirect experience. Recruitment is a source of market and technological knowledge and government advisors and consultants a source of internationalization knowledge. Accessing internal information is important for firms that have internationalized. Our integrated theoretical framework identifies knowledge content and sources that are critical for internationalization, but that may be absent.     

An ambidextrous learning model for the internationalization of firms from emerging economies

Emerging economies are playing an increasingly important role in the global economy. The rising phenomenon of the internationalization process of firms in emerging economies, or emerging market firms, particularly their capacity to increase their presence in the markets of developed economies, has been insufficiently studied. Because of the unique characteristics of emerging economies, some assumptions of traditional international models are irrelevant. This paper provides a theoretical framework that explains the importance of different types of knowledge and the relationships between them in the internationalization process. We delineate an ambidextrous learning strategy that is contingent on different levels of firm competitiveness.     

Sequential internationalization,heterogeneous process and subsidiary roles: the case of Hyundai Motor Company*

This paper proposes a new conceptual model to better understand the internationalization process of firms, especially those from rapidly developing East Asian economies. The model is illustrated through a comprehensive analysis of the internationalization process of Hyundai Motor Company (HMC). A comparative case analysis of the development of HMC's five major foreign subsidiaries shows both capability building through sequential investment from the headquarters' perspective and heterogeneous development of operational knowledge at the subsidiary level. The research emphasizes the importance of the post-FDI phase of subsidiary development to the study of firm internationalization, and highlights the process of decision-making and learning as the key to understanding the sequence of investments in subsidiaries.     

Domestic Activity and Knowledge Development in the Internationalization Process of Firms

This paper is based on behavioral theory on internationalization, examining the effect of firms operations in the domestic market on experiential knowledge development in the internationalization of the firm. Five hypotheses are developed on the effects of business operations in the domestic market on: internationalization knowledge, business knowledge and institutional knowledge. The LISREL analysis of 206 firms shows that domestic operations effect the accumulation of experiential knowledge in internationalizing firms. We found that it is harder for a firm with long domestic experience to change their mental models and processes in the internationalization process.     

An integrative model of the role of knowledge in the internationalization process

Knowledge is considered an essential resource in a company’s internationalization process, both from the sequential point of view and from the perspective of International Entrepreneurship. This paper proposes a model to integrate the influence of knowledge on international behavior based on proposals taken from the literature on organizational learning in multinational companies. The model comprises several phases: prior knowledge; acquisition of new knowledge; integration of both sets of knowledge; action and feedback. Using the proposed model, different courses of action are identified for further research into the process of company internationalization.     

Retrospective and prospective learning: Accelerating the internationalization process

This paper contributes theoretical understanding to the learning processes adopted by firms for successful internationalization. Drawing from the internationalization process and organizational learning research, our longitudinal case study examines a firm’s learning processes as it grows internationally. In different phases and in different areas the firm learned at different paces, gradual and steep, and by responding retrospectively to past failings, and prospectively to anticipated challenges. From case data we identify and develop four constructs of internationalization learning: Gradual Retrospective, Steep Retrospective, Gradual Prospective, and Steep Prospective learning. The appropriateness of each depends on the urgency towards addressing challenges, and the firm’s learning capabilities. Firms can develop and steepen retrospective learning capability, enabling rapid identification and response to internationalization problems. Firms can also employ prospective learning to plan the development of knowledge capabilities ahead of future internationalization activity, to accelerate their learning, and increase the speed and effectiveness of internationalization.     

The Impact of the Change from Partial to Full Foreign Ownership on the Internationalization of Foreign Subsidiaries

SUMMARY

This paper aims to study how host country firms' internationalization has been impacted by their foreign owners' achievement of full ownership if the companies were not fully foreign-owned at first. It starts with a review of the existing traditional internationalization literature: the Uppsala model, the innovation-related internationalization models and the Finnish model. Then it reviews other research streams: born global, foreign direct investment (FDI) and network literature and the literature on subsidiary roles. A conceptual framework is developed. Then, after a methodology section, four Estonian casestwo from banking and two from the textiles industryare introduced. After the discussion of the results, some managerial and research implications are drawn.     

Selecting the country in which to start internationalization: The non-sequential internationalization model

The paper analyses the selection of the country in which a firm starts internationalization. It proposes that some firms strategically choose a non-sequential internationalization, that is, they select a country that is dissimilar to their country of origin for their first foreign expansion. The reason for this is that some firms develop, in their home country, three types of knowledge that are useful to overcome foreign expansion difficulties: knowledge to manage complexity, developed by having multiple operations at home; knowledge to manage differences in competitive conditions, developed by operating in business-to-business industries, and knowledge to manage differences in institutional environments, developed by allying to a foreign firm at home.     

The Services Internationalization Process: An Exploratory Investigation of Australian Service Company Internationalization to China

Service companies possess different characteristics from non-service-based companies, affecting their process of internationalization. This article examines the internationalization of service organizations using case studies of 23 Australian service organizations internationalizing to China. It finds that the internationalization process is influenced by the type of service the organization produces. The Uppsala internationalization model partially explains internationalization for companies producing exportable services but did not explain internationalization for companies, which produce nonexportable services (services that must be located within the market). International experience, government regulations and capital intensity were influential for internationalization. The findings develop a model for service organization internationalization.     

The internationalization process: Impact of competition and experience

The process, or evolution, through which multinational firms have reached their present international position is often referred to as “the internationalization process of the firm.” The most widely accepted theory of this phenomenon explains this slow, and sequential process in terms of organizations’ growth and learning. It is every now and then argued that this approach has lost some of its explanatory value. The purpose of this article is to discuss the validity of this model against the backdrop of assumptions in two key dimensions, namely, firms’ experience of international business and the industry's degree of internationalization.     

Retailers׳ expansion mode choice in foreign markets: Antecedents for expansion mode choice in the light of internationalization theories

Whenever a retail company expands its store network in a foreign market, decisions have to be made about how this can be achieved. Existing studies of retail internationalization have usually analyzed the “entry mode” choice as an end in itself, and not as the start of a firm׳s international development. In addition, there is much debate in the academic literature about the antecedents for retail foreign operation mode choice and the relevance of generic internationalization theories to international retailing. Therefore, the objectives of this research are (1) to investigate the paths of entry and subsequent expansion modes pursued by retailers in international markets and (2) to develop and test a model of expansion mode antecedents in the light of generic business internationalization theories. This is achieved on the basis of data collected from 43 French fashion retailers and a PLS-SEM approach. Results show that (1) retailers clearly differentiate between entry and expansion modes; (2) the international marketing plan, the perceived attractiveness of the foreign market, and strategic and ownership conditions are the key antecedents for the choice of an expansion mode. After comparing the results with the explanations proposed by the generic internationalization theories, a multi-theoretical framework is proposed which draws from the Uppsala internationalization process model, network theory and the born-global theory. The findings provide a wealth of information for retailers׳ use in choosing appropriate foreign operation modes.