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Strategies of Internationalization: An Overview

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Internationalization of Business

Part of the book series: MIR Series in International Business ((MIRSIB))

Abstract

Firms operating across borders have to take numerous strategic decisions. The following contribution will provide an overview of the essential strategic decisions that compose strategies of internationalization. The five central dimensions of internationalization strategies are (1) market entry strategies, (2) target market strategies, (3) timing strategies, (4) allocation strategies and (5) coordination strategies. It is further argued that the potential of foreign units abroad should be exploited to create and utilize sustained competitive advantages. However, before formulating internationalization strategies, extensive strategic analyses have to be undertaken, and the firm’s internationalization philosophy and internationalization objectives should be carefully considered.

This contribution is based on Schmid (2009, 2013).

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Notes

  1. 1.

    See Arregle et al. (2017), Coviello and McAuley (1999) and Pukall and Calabró (2014).

  2. 2.

    See Dülfer (2002), Moore and Lewis (1998, 1999).

  3. 3.

    See, for instance, Kutschker and Schmid (2011, pp. 379–487).

  4. 4.

    See Kim and Lee (2001), or various examples in Zentes et al. (2011).

  5. 5.

    See, for more details, Kutschker and Schmid (2011, pp. 823–1078).

  6. 6.

    See also Ashkenas et al. (1995, p. 3, pp. 11–21), Czinkota et al. (2011, pp. 302–331, 358–631), Deresky (2017, pp. 233–334), Hill and Hult (2017), Lasserre (2012, pp. 26–225) and Luthans and Doh (2015, pp. 274–421).

  7. 7.

    See Perlmutter (1965, 1969), Perlmutter and Heenan (1974) and Wind et al. (1973).

  8. 8.

    See Schmid and Machulik (2006).

  9. 9.

    See Heenan and Perlmutter (1979, pp. 18–19).

  10. 10.

    See Dunning and Lundan (2008, pp. 67–76). See also a recent debate on internationalization objectives in Multinational Business Review, with contributions by Benito (2015), Cuervo-Cazurra and Narula (2015), Cuervo-Cazurra et al. (2015) and Van Tulder (2015).

  11. 11.

    See also Ghoshal (1987).

  12. 12.

    See Schmid and Grosche (2008, pp. 104–127).

  13. 13.

    See Schmid and Kutschker (2002) for an overview of these basic reflections on Strategic Management.

  14. 14.

    See Daniels et al. (2015, pp. 43–172), Dülfer and Jöstingmeier (2008) and Schreyögg (1993).

  15. 15.

    For a more detailed discussion, see also Schmid (2011).

  16. 16.

    See, for example, Bamberger and Wrona (1996), Zu Knyphausen (1993) and Ossadnik (2000).

  17. 17.

    See also Cuervo-Cazurra et al. (2007, pp. 712–714).

  18. 18.

    For a critical reflection of “globalization” and “global”, see Engelhard and Hein (2001), Kutschker and Schmid (2011, pp. 159–215) and Schmid (2000).

  19. 19.

    For other classifications of the dimensions of internationalization strategies, see Dimitratos (2004), Kutschker (1995), Kutschker and Bäurle (1997) and Ringlstetter and Skrobarczyk (1994).

  20. 20.

    See, e.g., Sachse (2003, pp. 166–168).

  21. 21.

    For strategy in general and for various strategy levels, see Bamberger and Wrona (2013), Bea and Haas (2016), Collis and Montgomery (2005), De Wit and Meyer (2010), Hungenberg (2014), Ireland et al. (2017), Johnson et al. (2017), Lampel et al. (2014), Müller-Stewens and Lechner (2016) and Welge et al. (2017).

  22. 22.

    See Lucks and Meckl (2015).

  23. 23.

    See examples in Ghemawat and Ghadar (2001) and Lenel (2000).

  24. 24.

    For overviews on market entry modes, see, for instance, Laufs and Schwens (2014) or Morschett et al. (2010).

  25. 25.

    See examples in Fuchs and Apfelthaler (2009, pp. 318–380), Root (1998) and Young et al. (1989), or many of the contributions in Macharzina and Oesterle (2002b).

  26. 26.

    For details, see Kutschker and Schmid (2011, pp. 931–941) and Schmid (2002a).

  27. 27.

    See Berndt et al. (2016, pp. 25–162), Hünerberg (1994, pp. 49–145), Keegan et al. (2002, pp. 237–288) and Meffert et al. (2010, pp. 36–197). See also two recent special issues in International Marketing Review, edited by Papadopoulos and Martín Martín (2011a, b).

  28. 28.

    See Andersen and Buvik (2002). Recent examples include Ozturk et al. (2015) and Schu and Morschett (2017).

  29. 29.

    See also Meffert and Pues (2002) and Pues (1994, pp. 237–249).

  30. 30.

    See, for example, Henzler and Rall (1985, pp. 186–188), Kreutzer (1989, pp. 238–253) and Ohmae (1985, pp. 33–34).

  31. 31.

    See, in this context, the explanation of the Uppsala approach in Johanson and Vahlne (1977, 1990), as well as in Schmid (2002b).

  32. 32.

    See, e.g., Müller and Kornmeier (2002, pp. 142–212).

  33. 33.

    As a “classic” source, see Levitt (1983).

  34. 34.

    For details, see Kutschker and Schmid (2011, pp. 1015–1065).

  35. 35.

    For international coordination mechanisms, see, e.g., Macharzina and Oesterle (2002a) or Wolf (1994, pp. 115–119).

  36. 36.

    See Schmid (1996).

  37. 37.

    See Schmid (1999), Schmid (2003) and Schmid et al. (1999).

  38. 38.

    See Birkinshaw (1997), Birkinshaw et al. (1998) and Schmid et al. (2014).

  39. 39.

    See Bartlett and Ghoshal (1986, 1989).

  40. 40.

    See Schmid and Schurig (2003).

  41. 41.

    See Perlmutter (1965, 1969).

  42. 42.

    See Schmid et al. (2002) regarding flows within corporate networks.

  43. 43.

    See von Krogh and Cusumano (2001).

  44. 44.

    See Schmid and Schmidt-Buchholz (2002).

  45. 45.

    See Knorr and Arndt (2003).

  46. 46.

    See Eckert (2003).

  47. 47.

    See Benito and Welch (1997).

  48. 48.

    For the problem of performance, see Kutschker and Schmid (2011, pp. 283–285), and for the relationship between internationalization and performance, see Glaum (1996). IB literature on the internationalization-performance link is abundant, but also highly problematic. See, for instance, Hennart (2011), Nguyen (2016) and Verbeke and Forootan (2012).

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  1. ESCP Europe Berlin, Berlin, Germany

    Stefan Schmid

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    Stefan Schmid

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Schmid, S. (2018). Strategies of Internationalization: An Overview. In: Schmid, S. (eds) Internationalization of Business. MIR Series in International Business. Springer, Cham. https://doi.org/10.1007/978-3-319-74089-8_1

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