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