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Limits to international entry mode learning in SMEs

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Abstract

Despite extensive research, the literature is unclear about the circumstances under which a firm learns from its past foreign entry modes and how this experiential learning is related to future mode choices. Building on the internationalization process (IP) model and the idea that some experiential learning is location-bound, while other learning is non-location-bound, we develop and test theory to explain how experiential learning about foreign operation modes and markets impact future mode choices in new foreign markets. Overall, we argue that mode-based experiential learning is limited. Through the repeated use of a specific operation mode firms develop routines and processes that are non-location-bound and can be replicated in new foreign markets, leading to the use of this same mode type in new locations. But when complemented by experiential learning about a target market/region firms opt for operation modes with greater commitment in new foreign markets. Drawing on a sample of German SMEs and examining four different types of entry modes we find some support. However, we also identify a number of notable exceptions to our theory. In this way, we help provide unique new insights informing future IP model, experiential learning, and international entry mode research.

Resume

En dépit de recherches approfondies, la littérature n'est pas claire sur les circonstances dans lesquelles une entreprise apprend de ses modes d'entrée à l'étranger passés et sur la façon dont cet apprentissage par expérience est lié aux choix des modes futurs. En nous appuyant sur le modèle du processus d'internationalisation (PI) et sur l'idée que certains apprentissages par expérience sont liés à la localisation et d'autres non liés à la localisation, nous élaborons et testons une théorie pour expliquer comment l'apprentissage par expérience des modes de fonctionnement et des marchés étrangers influe sur les choix des modes futurs pour les nouveaux marchés étrangers. Globalement, nous considérons que l'apprentissage expérientiel fondé sur les modes d’entrée est limité. Grâce à l'utilisation répétée d'un mode de fonctionnement spécifique, les entreprises développent des routines et des processus qui ne sont pas liés à la localisation et peuvent être reproduits dans de nouveaux marchés étrangers ; ce qui conduit à l'utilisation de ce même type de mode dans de nouvelles localisations. Mais lorsqu'elles sont complétées par l'apprentissage par expérience d'un marché ou d’une région cible, les entreprises optent pour des modes de fonctionnement avec un plus grand engagement dans les nouveaux marchés étrangers. En nous appuyant sur un échantillon de PME allemandes et en examinant quatre types différents de modes d'entrée, nous trouvons une certaine confirmation. Cependant, nous identifions également un certain nombre d'exceptions notables à notre théorie. Ainsi, nous contribuons à fournir des nouveaux éclairages uniques qui offrent des informations sur les futurs modèles du PI, l'apprentissage par expérience et la recherche sur les modes d'entrée sur un marché international.

Resumen

A pesar de la extensa investigación, la literatura no está clara sobre las circunstancias bajo las cuales una empresa aprende de sus modos de entrada al extranjero en el pasado y cómo este aprendizaje experiencial se relaciona con las opciones de modos futuros. Sobre la base del modelo de proceso de internacionalización (IP) y la idea de que algún aprendizaje experiencial está ligado a la ubicación mientras que otro aprendizaje no está ligado a la ubicación, desarrollamos y probamos la teoría para explicar cómo el aprendizaje experiencial sobre modos de operación y mercados en nuevos mercados extranjeros. En general, argumentamos que el modo de operación basado en aprendizaje experiencial es limitado. Mediante el uso repetido de un modo de operación específico, las empresas desarrollan rutinas y procesos que no están vinculados a la ubicación y pueden replicarse en nuevos mercados extranjeros, lo que lleva al uso de este mismo tipo de modo en nuevas ubicaciones. Pero cuando se complementa con el aprendizaje experiencial sobre un mercado/región objetivo, las empresas optan por modos de operación con mayor compromiso en los nuevos mercados extranjeros. Basándonos en una muestra de pymes alemanas y examinando cuatro tipos diferentes de modos de entrada, encontramos algo de apoyo. Sin embargo, también identificamos una serie de excepciones notables a nuestra teoría. De esta forma, ayudamos a dar nuevos conocimientos únicos que informan modelos futuros de IP, aprendizaje experiencial y la investigación sobre modos de entrada internacional.

Resumo

Apesar de extensa pesquisa, a literatura não é clara sobre as circunstâncias sob as quais uma empresa aprende com seus anteriores modos de entrada no estrangeiro e como essa aprendizagem experiencial está relacionada com futuras escolhas de modo. Com base no modelo de processo de internacionalização (IP) e na ideia de que algumas aprendizagens experienciais estão vinculadas à localização enquanto outras não, desenvolvemos e testamos uma teoria para explicar como a aprendizagem experiencial sobre modos de operações estrangeiras e mercados influencia futuras escolhas de modo em novos mercados estrangeiros. No geral, argumentamos que a aprendizagem experiencial baseada em modo é limitada. Através do uso repetido de um modo de operação específico, as empresas desenvolvem rotinas e processos não vinculados à localização que podem ser replicados em novos mercados estrangeiros, levando ao uso desse mesmo tipo de modo em novos locais. Mas, quando complementados por aprendizados experienciais sobre um mercado/região alvo, empresas optam por modos de operação com maior comprometimento com novos mercados estrangeiros. Com base em uma amostra de SMEs alemãs e examinando quatro tipos diferentes de modos de entrada, encontramos algum apoio. No entanto, também identificamos um número de notáveis exceções à nossa teoria. Desta forma, ajudamos a fornecer novos insights únicos, informando futuros modelos de IP, aprendizado experiencial e pesquisa sobre modo de entrada internacional.

摘要

尽管有广泛的研究, 关于企业从过去的外国进入模式中学习以及这种体验学习如何与未来模式选择相联系的情况的文献尚不清楚。基于国际化进程(IP)模型和有些体验学习受位置约束而其它学习不受位置约束的观点, 我们开发并测试理论, 来解释有关国外运营模式和市场的体验学习如何影响在新的国外市场里未来模式的选择。总的来说, 我们认为基于模式的体验学习是有限的。公司通过对特定运营模式的重复使用, 开发出不受地域限制的套路和流程, 并可以在新的国外市场进行复制, 从而导致新地点使用相同类型模式。但是当对目标市场/区域的体验学习是个补充的时候, 企业会选择在新的海外市场有更多投入的运营模式。借鉴德国中小企业样本并研究四种不同类型的进入模式, 我们找到了一些支持。然而, 我们也发现了一些对我们理论的显著的例外。我们通过这种方式为未来知识产权(IP)模式、体验学习以及国际进入模式研究提供了独特的新见解。

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Acknowledgements

This research is part of the research project “GZ: SCHW 1428/2-1” funded by the German Research Association (DFG). We acknowledge the financial support by the DFG. We would like to thank editor Klaus Meyer and the three anonymous reviewers for their highly developmental and constructive comments throughout the review process.

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Correspondence to Christian Schwens.

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Accepted by Klaus Meyer, Area Editor, 11 April 2018. This article has been with the authors for three revisions.

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Schwens, C., Zapkau, F.B., Brouthers, K.D. et al. Limits to international entry mode learning in SMEs. J Int Bus Stud 49, 809–831 (2018). https://doi.org/10.1057/s41267-018-0161-9

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