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Competences needed for growth
  through internationalization
               Leona Achtenhagen
       Professor of Entrepreneurship and Business Development

  Jönköping International Business School
            28 November 2012
SMEs own ranking of internationalization
                    barriers
    1. Lack of capital to finance export activities
    2. Challenge to identify business opportunities on
       international markets
    3. Limited information on how to identify and analyze
       markets
    4. Difficulty to reach potential customers on
       international markets
    5. Difficulty to find reliable international
       representatives

Source: OECD-APEC (2007), cited in OECD (2009: 8)
Internationalization competence

• Combination of knowledge, skills and
  personal variables related to successful
  internationalization

 Several, partly overlapping, dimensions
Different dimensions of
     internationalization competence:
                POMI model

Personal international attitude/experience

Organizational competences and resources

 Market competence    Institutional competence
Personal international attitude/experience

• International experience
• Cultural understanding
• Language skills

Contribute to reducing the ’fear’ of
 internationalization and increase likelihood
 to identify opportunities in international
 markets
Organizational competences and
                resources

• International innovativeness
• Internationalization competence
• International marketing competence

 Challenge to make knowledge work in
 practice
Market competence

• International marketing
• International business skills
   Customers
   Markets
   Competition


 Tendency to view environmental risk as
  less dramatic
Institutional competence

• Experience and knowledge regarding
  – Relevant actors
  – Institutional structures
  – Rules, norms and values characterizing the
    international market


 Institutional competence needs are highly
 company-specific!
The intention and potential to
     internationalize differ…

INTENTION TO INTERNATIONALIZE
                                         e.g.         e.g. high-
                                                         tech
                                high imitative e-
                                     commerce        SMEs, ’bor
                                     companies       n globals’



                                                     e.g. many
                                      e.g. locally
                                low                  manufac-
                                       oriented
                                                       turing
                                      micro-firms
                                                       SMEs

                                      low                   high
                                 BUSINESS MODEL POTENTIAL
… requiring different competences and
           policy measures

    INTENTION TO INTERNATIONALIZE
                                             e.g.         e.g. high-
                                         imitative e-        tech
                                         commerce
                                    high companies       SMEs, ’bor
                                                         n globals’
                                                O           MI
                                                         e.g. many
                                          e.g. locally   manufac-
                                    low    oriented        turing
                                            micro-         SMEs
                                             firms
                                                             P
                                          low                    high
                                     BUSINESS MODEL POTENTIAL
Conclusions
• Many internationalization barriers are relatd
  to lacking internationalization competence
   Policy measures are needed to improve this
   competence!
   Make available information more accessible
• Different types of companies need different
  types of support
Report:
  ’Internationalization Competence of SMEs’
              Leona Achtenhagen

            http://entreprenorskapsforum.se/wp-
content/uploads/2011/12/internationelization-comp_webb.pdf


                   acle@jibs.hj.se

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Ii e - achtenhagen competences for internationalisation

  • 1. Competences needed for growth through internationalization Leona Achtenhagen Professor of Entrepreneurship and Business Development Jönköping International Business School 28 November 2012
  • 2. SMEs own ranking of internationalization barriers 1. Lack of capital to finance export activities 2. Challenge to identify business opportunities on international markets 3. Limited information on how to identify and analyze markets 4. Difficulty to reach potential customers on international markets 5. Difficulty to find reliable international representatives Source: OECD-APEC (2007), cited in OECD (2009: 8)
  • 3. Internationalization competence • Combination of knowledge, skills and personal variables related to successful internationalization  Several, partly overlapping, dimensions
  • 4. Different dimensions of internationalization competence: POMI model Personal international attitude/experience Organizational competences and resources Market competence Institutional competence
  • 5. Personal international attitude/experience • International experience • Cultural understanding • Language skills Contribute to reducing the ’fear’ of internationalization and increase likelihood to identify opportunities in international markets
  • 6. Organizational competences and resources • International innovativeness • Internationalization competence • International marketing competence  Challenge to make knowledge work in practice
  • 7. Market competence • International marketing • International business skills  Customers  Markets  Competition  Tendency to view environmental risk as less dramatic
  • 8. Institutional competence • Experience and knowledge regarding – Relevant actors – Institutional structures – Rules, norms and values characterizing the international market  Institutional competence needs are highly company-specific!
  • 9. The intention and potential to internationalize differ… INTENTION TO INTERNATIONALIZE e.g. e.g. high- tech high imitative e- commerce SMEs, ’bor companies n globals’ e.g. many e.g. locally low manufac- oriented turing micro-firms SMEs low high BUSINESS MODEL POTENTIAL
  • 10. … requiring different competences and policy measures INTENTION TO INTERNATIONALIZE e.g. e.g. high- imitative e- tech commerce high companies SMEs, ’bor n globals’ O MI e.g. many e.g. locally manufac- low oriented turing micro- SMEs firms P low high BUSINESS MODEL POTENTIAL
  • 11. Conclusions • Many internationalization barriers are relatd to lacking internationalization competence  Policy measures are needed to improve this competence!  Make available information more accessible • Different types of companies need different types of support
  • 12. Report: ’Internationalization Competence of SMEs’ Leona Achtenhagen http://entreprenorskapsforum.se/wp- content/uploads/2011/12/internationelization-comp_webb.pdf acle@jibs.hj.se