Skip to main content
SpringerLink
Log in

Towards an Integrative Framework of the Internationalization of the Firm

  • Chapter
Book cover Internationalization

Part of the book series: The Academy of International Business Series ((AIB))

Abstract

‘Stage’ theories and their accompanying models proliferate in the internationalization and broader international business literature (Vernon, 1966; Wells, 1968; Johanson and Wiedersheim-Paul, 1975; Pavord and Bogart, 1975; Bilkey and Tesar, 1977; Khan, 1978; Cavusgil, 1980; Czinkota, 1982). These suggest that the process of ‘going abroad’ involves a (logical) sequence of international development steps. The problem with these conceptualizations is, first, that attempts to simplify complexity have resulted in oversimplified perspectives that have subsequently been accepted — almost, without question — as irrefutable fact; secondly, that such blind obeisance has obfuscated the truth regarding the actual processes involved. Indeed, most models — notably, those involving life-cycle theories — suffer from limitations concerning time-scales (Giddy, 1978). Moreover, their ability to delineate boundaries between stages or adequately explain the processes which lead to movement between stages is rather limited (Andersen, 1993).

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 129.00
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
Hardcover Book
USD 169.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  • Aaby, N.-E. and S.F. Slater (1989) ‘Managerial influences on export performance: a review of the empirical literature 1978–88’, International Marketing Review, 6(4), pp. 53–68.

    Article  Google Scholar 

  • Agarwal, S. and S.N. Ramaswami (1992) ‘Choice of foreign market entry mode: impact of ownership, location and internalisation factors’, Journal of International Business Studies, 23(1), pp. 1–27.

    Article  Google Scholar 

  • Aharoni, Y. (1966) The Foreign Investment Decision Process (Boston, Mass.: Harvard University Press).

    Google Scholar 

  • Andersen, O. (1993) ‘On the internationalization process of firms: a critical analysis’, Journal of International Business Studies, Second Quarter, pp. 209–31.

    Google Scholar 

  • Andersen, P.H. and J. Strandsov (1996) ‘International market selection: a cognitive perspective’, in Innovation and International Business, Proceedings of the 22nd European International Business Academy Annual Conference, Institute of International Business, Stockholm School of Economics, 15–17 December.

    Google Scholar 

  • Bannock, G. and Partners (1987) ‘Into active exporting’, BOTB Occasional Papers (HMSO, Dd 8934782 J0229NJ, London).

    Google Scholar 

  • Barker, A.T. and E. Kaynak (1992) ‘An empirical investigation of the differences between initiating and continuing exporters’ European Journal of Marketing, 26(3), pp. 27–36.

    Article  Google Scholar 

  • Bartlett, C.A. and S. Ghoshal (1986) ‘Tap your subsidiaries for global reach’, Harvard Business Review, 64(6), pp. 87–94.

    Google Scholar 

  • Bartlett, C.A. and S. Ghoshal (1989) Managing Across Borders: The Transnational Solution (Boston, Mass.: Harvard Business School Press).

    Google Scholar 

  • Bell, J.D. (1994) ‘The role of government in small-firm internationalization: a comparative study of export promotion in Finland, Ireland and Norway, with specific reference to the computer software industry’, Unpublished Ph.D Thesis, University of Strathclyde.

    Google Scholar 

  • Benito, G.R. and G. Gripstud (1992) ‘The expansion of foreign direct investments: discrete rational location choices or a cultural learning process’, Journal of International Business Studies, 23(3), pp. 461–76.

    Article  Google Scholar 

  • Bilkey, W.J. (1978) ‘An attempted integration of the literature on the export behavior of firms’, Journal of International Business Studies, 9, pp. 33–46.

    Article  Google Scholar 

  • Bilkey, W.J. and G. Tesar (1977) ‘The export behavior of smaller-sized Wisconsin manufacturing firms’, Journal of International Business Studies, 8, pp. 93–8.

    Article  Google Scholar 

  • Birkinshaw, J.M. (1996) ‘How multinational subsidiary mandates are gained and lost’, Journal of International Business Studies, 27(3), pp. 467–95.

    Article  Google Scholar 

  • Birkinshaw, J.M. and A.J. Morrison (1995) ‘Configurations of strategy and structure in subsidiaries of multinational corporations’, Journal of International Business Studies, 26(4), pp. 729–53.

    Article  Google Scholar 

  • Blankenberg, D. and J. Johanson (1992) ‘Managing network connections in international business’, Scandinavian International Review, 1(1), pp. 5–19.

    Article  Google Scholar 

  • Bodur, M. (1986) ‘A study in the nature and intensity of problems experienced by Turkish exporting firms’, in ST. Cavusgil (ed.), Advances in International Marketing (Greenwich, Conn.: Jai Press Inc.) pp. 205–32.

    Google Scholar 

  • Buckley, P.J. (1995) ‘Barriers to internationalization’, in P.J. Buckley (ed.), Foreign Direct Investment and Multinational Enterprises (Basingstoke, Hants: Macmillan) pp. 17–37.

    Chapter  Google Scholar 

  • Buckley, P.J. and M. Casson (1976) The Future of Multinational Enterprise (London: Macmillan).

    Google Scholar 

  • Buckley, P.J., D. Newbould and J. Thurwell (1979) ‘Going international — the foreign direct investment decisions of smaller UK firms’, EIBA Proceedings, Uppsala, pp. 72–87.

    Google Scholar 

  • Buckley, P.J., C.L. Pass and K. Prescott (1992) ‘Internationalization of service firms: a comparison with the manufacturing sector’, Scandinavian International Business Review, 1(1), pp. 39–56.

    Article  Google Scholar 

  • Buckley, P.J., C.L. Pass and K. Prescott (1995) ‘Foreign market servicing strategies and competitiveness’, in P.J. Buckley (ed.), Foreign Direct Investment and Multinational Enterprises (Basingstoke, Hants: Macmillan) pp. 115–36.

    Chapter  Google Scholar 

  • Calof, Jonathan L. and Paul W. Beamish (1995) ‘Adapting to foreign markets: explaining internationalization’, International Business Review, 4(2), pp. 115–31.

    Article  Google Scholar 

  • Cannon, T. and M. Willis (1981) ‘The smaller firm in international trade’, European Small Business Journal, 1(3), pp. 45–55.

    Article  Google Scholar 

  • Carlson, S. (1975) ‘How foreign is foreign trade?’, Acta Universitatis Upsaliensis, Studia Oeconomaie Negotiorum, No 11, Uppsala.

    Google Scholar 

  • Cavusgil, S.T. (1980) ‘On the internationalization process of the firm’, European Research, 8(6), pp. 273–81.

    Google Scholar 

  • Cavusgil, S.T. (1984) ‘Differences among exporting firms based on their degree of internationalization’, Journal of Business Research, 12, pp. 195–208.

    Article  Google Scholar 

  • Cavusgil, S.T. and J.R. Nevin (1981) ‘State-of-the-art in international marketing: an assessment’, in B. Evis and K.J. Roering (eds), Review of Marketing1981 (Chicago: American marketing Association).

    Google Scholar 

  • Cheong, W.K. and K.W. Chong (1988) ‘Export behaviour of small firms in Singapore’, International Small Business Journal, 6(2), pp. 34–41.

    Article  Google Scholar 

  • Chi, T. and D.J. McGuire (1996) ‘Collaborative ventures and value of learning: integrating the transaction cost and strategic option perspectives on the choice of market entry modes’, Journal of International Business Studies, 27(2), pp. 285–307.

    Article  Google Scholar 

  • Coase, R.H. (1937) ‘The nature of the firm’, Economica, 4(November), pp. 386–405.

    Article  Google Scholar 

  • Crick, D. (1995) ‘An investigation into the targeting of UK export assistance’, European Journal of Marketing, 29(8), pp. 76–94.

    Article  Google Scholar 

  • Czinkota, M.R. (1982) Export Development Strategies: U.S. Promotion Policy (New York: Praeger).

    Google Scholar 

  • Czinkota, M.R. and W.J. Johnston (1983) ‘Exporting: does sales volume make a difference?’ Journal of International Business Studies, 14(1), pp. 147–53.

    Article  Google Scholar 

  • Czinkota, M.R. and M.L. Ursic (1987) ‘A refutation of the psychic distance effect on export development’, Developments in Marketing Science, X, pp. 157–60.

    Google Scholar 

  • Dichtl, E., M. Leibold, H-G. Koglmayr and S. Muller (1983) ‘The foreign orientation of management as a central construct in export-centred decision-making processes’, Research for Marketing, 10, pp. 7–14.

    Google Scholar 

  • Dunning, J.H. (1988) ‘The eclectic paradigm of international production: an update and some possible extensions’, Journal of International Studies, 19, pp. 1–31.

    Google Scholar 

  • Dunning, J.H. (1993) Multinational Enterprises and the Global Economy (Wokingham, Berks: Addison-Wesley).

    Google Scholar 

  • Dunning, J.H. (1994) ‘Re-evaluating the benefits of foreign direct investment’, Transnational Corporations, 3(1), pp. 23–51.

    Google Scholar 

  • Engwall, L. and M. Wallenstal (1988) ‘Tit for tat in small steps. The internationalization of Swedish banks’, Scandinavian Journal of Management, 4(3/4), pp. 147–55.

    Article  Google Scholar 

  • Eramilli, K. (1991) ‘The experience factor in foreign market entry behavior of service firms’, Journal of International Business Studies, 22(3), pp. 479–501.

    Article  Google Scholar 

  • Ford, D. and L. Leonidou (1991) ‘Research, developments in international marketing: a European perspective’, in Paliwoda (ed.), New Perspectives on International Marketing (London: Routledge).

    Google Scholar 

  • Giddy, I.H. (1978) ‘The demise of the product cycle model in international business theory’, Columbia Journal of World Business, 13(Spring), pp. 90–7.

    Google Scholar 

  • Grant, R.M. (1991) ‘The resource-based theory of competitive advantage: implications for strategy formulation’, California Management Review, Spring, pp. 114–35.

    Google Scholar 

  • Greiner, L.E. (1972) ‘Evolution and revolution as organisations grow’, Harvard Business Review, July–August, pp. 37–46.

    Google Scholar 

  • Hakansson, H. (1982) International Marketing and Purchasing of Industrial Goods: An Interaction Approach (Chichester: John Wiley).

    Google Scholar 

  • Hedlund, G. (1986) ‘The hypermodern MNC: a heterarchy?’, Human Resource Management, 25, pp. 9–36.

    Article  Google Scholar 

  • Hedlund, G. and A. Kverneland (1985) ‘Are strategies for foreign markets changing? The case of Swedish investment in Japan’, International Studies of Management and Organisation, XV(2), pp. 41–59.

    Google Scholar 

  • Hennart, J.-F. and Y.-R. Park (1994) ‘Location, governance, and strategic determinants of Japanese manufacturing investment in the United States’, Strategic Management Journal, 15, pp. 419–36.

    Article  Google Scholar 

  • Hill, C.W.L., P. Hwang and W.C. Kim (1990) ‘An eclectic theory of the choice of international entry mode’, Strategic Management Journal, 11, pp. 117–28.

    Article  Google Scholar 

  • Hymer, S. (1960) The International Operations of National Firms, Doctoral Dissertation, MIT, (Cambridge, Mass. MIT Press) (published 1976).

    Google Scholar 

  • Ivarsson, I. (1996) Integrated International Production. A Study of Foreign Transnational Corporations in Sweden, Series B. No. 90, School of Economics and Commercial Law, University of Gösteborg, Sweden.

    Google Scholar 

  • Johanson, J. and L. Mattsson (1988) ‘Internationalisation in industrial systems — a network approach’, in N. Hood and J.-E. Vahlne (eds), Strategies in Global Competition (Beckenham, Kent: Croom Helm).

    Google Scholar 

  • Johanson, J. and J-E. Vahlne (1977) ‘The internationalization process of the firm — a model of knowledge development and increasing foreign commitments’, Journal of International Business Studies, (8)(1), pp. 23–32.

    Article  Google Scholar 

  • Johanson, J. and J-E. Vahlne (1978) ‘A model for the decision making process affecting the pattern and pace of the internationalization of the firm’, in M. Ghertman and J. Leontiades (eds), European Research in International Business (New York: Croom Helm), pp. 283–305.

    Google Scholar 

  • Johanson, J. and J-E. Vahlne (1990) ‘The mechanism of internationalization’, International Marketing Review, 7(4), pp. 11–24.

    Article  Google Scholar 

  • Johanson, J. and J-E. Vahlne (1992) ‘Management of foreign market entry’, Scandinavian International Business Review, 1(3), pp. 11–24.

    Article  Google Scholar 

  • Johanson, J. and F. Wiedersheim-Paul (1975) ‘The internationalization of the firm — four Swedish case studies’, Journal of Management Studies, (12), pp. 305–22.

    Article  Google Scholar 

  • Kamath, S., P.J. Rosson, D. Patton and M. Brooks (1987) ‘Research on success in exporting: past, present and future’, in P.J. Rosson and S.D. Reid (eds), Managing Export Entry and Expansion (New York: Praeger), pp. 398–421.

    Google Scholar 

  • Khan, S.M. (1978) A Study of Success and Failure in Exports (Stockholm, Sweden: Academilitteratur).

    Google Scholar 

  • Kim, W.C. and P. Hwang (1992) ‘Global strategy and multinational entry mode choice’, Journal of International Business Studies, 23(1), pp. 29–53.

    Article  Google Scholar 

  • Kindleberger, C. (1962) Foreign Trade and the National Economy (New Haven, Conn.: Yale University Press).

    Google Scholar 

  • Kogut, B. (1990) ‘Internal sequential advantages and network flexibility’, in Bartlett et al. (eds), Managing the Global Firm (London: Routledge).

    Google Scholar 

  • Kogut, B. and U. Zander (1993) ‘Knowledge of the firm and the evolutionary theory of the multinational corporation’, Journal of International Business Studies, (24)4, pp. 625–45.

    Article  Google Scholar 

  • Lee, W.Y. and J.J. Brasch (1978) ‘The adoption of export as an innovation strategy’, Journal of International Business Studies, 9(1), pp. 85–93.

    Article  Google Scholar 

  • Leonidou, L.C. (1995) ‘Export stimulation: a non-exporter’s perspective’, European Journal of Marketing, 29(8), pp. 17–36.

    Article  Google Scholar 

  • Leonidou, L.C. and C.S. Katsikeas (1996) ‘The export development process: an integrative review of empirical models’, Journal of International Business Studies, 27(3), pp. 517–51.

    Article  Google Scholar 

  • Luostarinen, R. (1970) Foreign Operations of the Firm (Helsinki School of Economics, Helsinki).

    Google Scholar 

  • Luostarinen, R. (1979) Internationalization of the Firm (Helsinki School of Economics, Helsinki: Acta Academiae Oeconomicae Helsingiensis).

    Google Scholar 

  • Luostarinen, R. (1994) Internationalization of Finnish Firms and their Response to the Global Challenge (World Institute for Development Economics Research, United Nation University, Helsinki).

    Google Scholar 

  • Luostarinen, R. and L. Welch (1990) International Business Operations (Helsinki School of Economics, Helsinki).

    Google Scholar 

  • Madhok, A. (1996) ‘Know-how, experience and competition-related considerations in foreign market entry: an exploratory investigation’, International Business Review, 5(4), pp. 339–66.

    Article  Google Scholar 

  • Medawar, P.B. (1964) Is the Scientific Paper a Fraud? (London: BBC Publications).

    Google Scholar 

  • Meyer, R. (1996) The Internationalisation Process of the Firm Revisited: Explaining Patterns of Geographic Sales Expansion, Management Report No. 300 (Erasmus University, Rotterdam).

    Google Scholar 

  • Miesenbock, K.J. (1988) ‘Small business and exporting: a literature review’, International Small Business Journal, 6(2), pp. 42–61.

    Article  Google Scholar 

  • Millington, A.I. and B.T. Bayliss (1990) ‘The process of internationalization: UK companies in the EC’, Management International Review, 30(2), pp. 151–61.

    Google Scholar 

  • Mitchell, O. and M.F. Bradley (1986) ‘Export commitment in the firm — strategic or opportunistic behaviour’, IBAR — Journal of Irish Business and Administrative Research, 8(2), pp. 12–19.

    Google Scholar 

  • Nordstrom, K.A. (1990) The Internationalization Process of the Firm — Searching for New Patterns and Explanations (Stockholm School of Economics, Sweden).

    Google Scholar 

  • O’Farrell, P.N. and D.M.W.N. Hitchens (1988) ‘Alternative theories of small-firm growth: a critical review’, Environment and Planning A, 20, pp. 1365–83.

    Article  Google Scholar 

  • O’Grady, S. and H.W. Love (1996) ‘The psychic distance paradox’, Journal of International Business Studies, 27(2), pp. 309–33.

    Article  Google Scholar 

  • Pavord, W.C. and R.G. Bogart (1975) ‘The dynamics of the decision to export’, Akron Business and Economic Review, Spring, pp. 6–11.

    Google Scholar 

  • Popper, K.R. (1972) The Logic of Scientific Discovery (London: Hutchinson).

    Google Scholar 

  • Reid, S.D. (1981) ‘The decision-maker and export entry and expansion’, Journal of International Business Studies, 12(2), pp. 101–12.

    Article  Google Scholar 

  • Reid, S.D. (1983) ‘Firm internationalization transaction costs and strategic choice’, International Marketing Review, 1(2), pp. 45–55.

    Article  Google Scholar 

  • Reid, S.D. (1984) ‘Market expansion and firm internationalization’, in E. Kaynak (ed.). International Marketing Management (New York: Praeger) pp. 197–206.

    Google Scholar 

  • Reid, S.D. (1986) ‘Export channel choice and export performance: a contingency approach’, in C. Tan, W. Lazer and V. Kirpalani, V. (eds), Emerging International Strategic Frontiers (American Marketing Association, Singapore) pp. 260–4.

    Google Scholar 

  • Rivett, P. (1972) Principles of Model Building (Chichester: John Wiley).

    Google Scholar 

  • Rogers, E.M. (1962) Diffusion of Innovations (New York: Free Press).

    Google Scholar 

  • Root, F.R. (1987) Entry Strategies for International Markets (Lexington, Mass.: Lexington Books, D.C. Heath and Co.).

    Google Scholar 

  • Rosson, P.J. (1984) ‘Success factors in manufacturer-overseas distributor relationships in international marketing’, in E. Kaynak (ed.), International Marketing Management (New York: Praeger), pp. 91–107.

    Google Scholar 

  • Sharkey, T.W., J.S. Lim and K.I. Kim (1989) ‘Export development and perceived export barriers: an empirical analysis of small firms’, Management International Review, 29(2), pp. 33–40.

    Google Scholar 

  • Sharma, D. and J. Johanson (1987) ‘Technical consultancy in internationalization’, International Marketing Review, 4(4), pp. 20–9.

    Article  Google Scholar 

  • Turnbull, P.W. (1987) ‘A challenge to the stages theory of the internationalization process’, in P.J. Rosson and S.D. Reid (eds), Managing Export Entry and Expansion (New York: Praeger), pp. 21–40.

    Google Scholar 

  • Turnbull, P.W. and J-P. Valla (1986) Strategies for International Industrial Marketing: The Management of Customer Relationships in European Industrial Markets (London: Croom Helm).

    Google Scholar 

  • United Nations Conference on Trade and Development (UNCTAD) (1994) World Investment Report 1994. Transnational Corporations, Employment and the Workplace (New York and Geneva: United Nations).

    Google Scholar 

  • Vahlne, J-E. and F. Wiedersheim-Paul (1973) ‘Psychic distance — an inhibiting factor in international trade’, Working Paper, University of Uppsala.

    Google Scholar 

  • Verhoeven, W. (1988) ‘The export performance of small and medium-sized enterprises in the Netherlands’, International Small Business Journal, 6(2), pp. 20–33.

    Article  Google Scholar 

  • Vernon, R. (1966) ‘International investment and international trade in the product cycle’, Quarterly Journal of Economics, 80, pp. 190–207.

    Article  Google Scholar 

  • Weaver, K. and J. Pak (1990) ‘Export behaviour and attitudes of small and medium-sized Korean manufacturing firms’, International Small Business Journal, 8(4), pp. 59–70.

    Article  Google Scholar 

  • Welch, L.S. and R. Luostarinen (1988) ‘Internationalization: evolution of a concept’, Journal of General Management, 14(2), pp. 34–55.

    Google Scholar 

  • Welch, L.S. and R. Luostarinen (1993) ‘Inward-outward connections in internationalization’, Journal of International Marketing, 9(1), pp. 44–56.

    Google Scholar 

  • Wells, L.T. (1968) ‘A product life-cycle for international trade’, Journal of Marketing, 32, pp. 1–6.

    Article  Google Scholar 

  • Wernerfeit, B. (1984) ‘A resource-based view of the firm’, Strategic Management Journal, 5, pp. 171–80.

    Article  Google Scholar 

  • Wheeler, C., M. Jones and S. Young (1996) ‘Market entry modes and channels of distribution in the machine tool industry in the UK’, European Journal of Marketing, 30(4), pp. 40–57.

    Article  Google Scholar 

  • White, R.E. and T.A. Poynter (1984) ‘Strategies for foreign-owned subsidiaries in Canada’, Business Quarterly, Summer, pp. 59–69.

    Google Scholar 

  • Wong, K.C. and W.C. Kwan (1988) ‘Export behaviour in small firms in Singapore’, International Small Business Journal, 6(2), pp. 34–41.

    Article  Google Scholar 

  • Yeoh, P-L. and I. Jeong (1995) ‘Contingency relationships among entrepreneurship, export channel structure and environment: a proposed conceptual model of channel performance’, European Journal of Marketing, 29(8), pp. 95–115.

    Article  Google Scholar 

  • Young, S. (1987) ‘Business strategy and the internationalization of business: recent approaches’, Managerial and Decision Economics, 8, pp. 31–40.

    Article  Google Scholar 

  • Young, S., J. Hamill, C. Wheeler and J.R. Davies (1989) International Market Entry and Development (Hemel Hempstead: Harvester Wheatsheaf/Prentice-Hall).

    Google Scholar 

Download references

Authors
  1. Jim Bell
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Stephen Young
    View author publications

    You can also search for this author in PubMed Google Scholar

Editor information

Editors and Affiliations

  1. Aston Business School, Aston University, UK

    Graham Hooley (Professor of Marketing and Head of the Marketing and Law Group) (Professor of Marketing and Head of the Marketing and Law Group)

  2. Aston Business School, Aston University, Birmingham, UK

    Ray Loveridge (Professor of Strategic Management and Director of Research, Visiting Fellow, Visiting Professor) (Professor of Strategic Management and Director of Research, Visiting Fellow, Visiting Professor)

  3. Science Policy Unit, University of Sussex, UK

    Ray Loveridge (Professor of Strategic Management and Director of Research, Visiting Fellow, Visiting Professor) (Professor of Strategic Management and Director of Research, Visiting Fellow, Visiting Professor)

  4. Ecole Superieure des Sciences Economiques et Commercials, Paris, France

    Ray Loveridge (Professor of Strategic Management and Director of Research, Visiting Fellow, Visiting Professor) (Professor of Strategic Management and Director of Research, Visiting Fellow, Visiting Professor)

  5. Warwick Business School, UK

    David Wilson (Professor of Strategic Management) (Professor of Strategic Management)

Copyright information

© 1998 Academy of International Business, UK Chapter

About this chapter

Cite this chapter

Bell, J., Young, S. (1998). Towards an Integrative Framework of the Internationalization of the Firm. In: Hooley, G., Loveridge, R., Wilson, D. (eds) Internationalization. The Academy of International Business Series. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-26556-5_1

Download citation

Publish with us

Policies and ethics

Search

Navigation