Expanding onto foreign markets and being successive abroad is often considered as the peak of business success of a firm. Unsurprisingly, the process of firm internationalization received a lot of attention from scholars. A major influence to the pace and pattern of firm internationalization is international experience and resulting knowledge. In fact, knowledge is considered to be a main driver for competitive advantages. However, in spite of its identified importance, literature has yet to present a unifying theory which explains its exact role and impact to the process of internationalization. This noble aim may be aggravated by the fact that different types of firms appear to be effected dissimilarly by accrued international experience. Moreover, international experience is gained, processed and exploited in various ways resulting in diverse firm specific advantages. These differences in experiential learning further contribute to the complexity on grasping the issue. Finally, the process of internationalization itself includes many different aspects and hence does the effects of international experience to such. Just to name a few, scholars reviewed the role of international experience to the choice of entry mode, establishment mod, market selection or pace of internationalization. The resulting assumptions regarding international experience are broad and, unfortunately, often contradicting.
This paper attempts to review selected deviating effects of international experience from the traditional frameworks and analyze their specifications. By doing so, one may be able to bridge gaps to traditional models or further highlight insufficiencies of such. When referring to the traditional framework of firm internationalization, this paper refers to the seminal work of Johanson and Vahlne (1977), as well as supporting models, and their theory regarding the role of knowledge development and market commitments in the process of internationalization. Furthermore, more recent studies regarding the role of knowledge on the choice of entry mode are being reviewed. The reviewed literature covers a time span of almost 40 years and opposes scientifically established work to most recently published articles from renowned outlets.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Literature review on international experience
- Terminology
- Decomposition
- Multidimensional construct
- The traditional model: the role of international experience in the Uppsala internationalization
- The role of international experience on the choice of entry mode
- Analysis of deviating phenomena: Born Globals and the soft service sector
- Born Globals
- Soft service sector
- Conclusion
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This paper aims to review selected deviating effects of international experience from traditional frameworks and analyze their specifications. It seeks to identify gaps in traditional models and highlight potential insufficiencies. The paper focuses on the seminal work of Johanson and Vahlne (1977) and its supporting models, examining the role of knowledge development and market commitments in internationalization. It also reviews more recent studies regarding the role of knowledge on the choice of entry mode.
- The role of international experience in firm internationalization
- The impact of knowledge on competitive advantages
- The differences in how firms are affected by international experience
- The diverse ways in which international experience is gained, processed, and exploited
- The effects of international experience on various aspects of internationalization
Zusammenfassung der Kapitel (Chapter Summaries)
- Introduction: This chapter introduces the concept of firm internationalization and its importance in business success. It highlights the role of international experience and knowledge in this process and identifies the need for a unifying theory to explain its impact. It also acknowledges the complexity of the issue due to the diversity of firms and their experiences.
- Literature review on international experience: This chapter provides a comprehensive overview of the existing literature on international experience, including terminology, decomposition, and multidimensional construct. It clarifies the definitions of international experience, experiential knowledge, and experiential learning, emphasizing their importance in the context of firm internationalization. It also discusses the differentiation between general and market-specific knowledge, as well as the multidimensional nature of international experience.
- The traditional model: the role of international experience in the Uppsala internationalization: This chapter delves into the traditional model of Uppsala internationalization, developed by Johanson and Vahlne (1977), and its emphasis on the role of knowledge development and market commitments in the internationalization process. It examines how the model explains the gradual and incremental approach to internationalization, highlighting the importance of experiential knowledge in this process.
- The role of international experience on the choice of entry mode: This chapter focuses on the role of international experience in the choice of entry mode, analyzing how firms leverage their experiential knowledge to select appropriate strategies for entering foreign markets. It reviews the literature on entry mode choice and its relation to international experience, exploring different factors that influence this decision.
- Analysis of deviating phenomena: Born Globals and the soft service sector: This chapter examines two deviating phenomena that challenge the traditional model of internationalization: Born Globals and the soft service sector. It analyzes how Born Globals, characterized by their rapid internationalization from inception, and firms operating in the soft service sector, with their unique characteristics, deviate from the traditional assumptions about the role of international experience.
Schlüsselwörter (Keywords)
The key terms and concepts explored in this paper include: firm internationalization, international experience, experiential knowledge, experiential learning, knowledge development, market commitments, entry mode choice, Born Globals, soft service sector, Uppsala internationalization model, competitive advantages, and firm-specific advantages. This study investigates the impact of international experience on these key aspects of firm internationalization, analyzing both traditional and deviating perspectives.
- Quote paper
- Anonym (Author), 2015, Reviewing the Role of International Experience to Firm Internationalization. Traditional Assumptions and Selected Deviations, Munich, GRIN Verlag, https://www.grin.com/document/303538