84. theories of internationalization

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84. theories of internationalization

  1. 1. 1 Theories of internationalization Table of Content 1 Introduction.......................................................................................................................... 3 2 Theory of internationalization.............................................................................................. 3 2.1 Stage models (Uppsala internationalization model)..................................................... 4 2.2 Network perspective..................................................................................................... 7 2.3 Business strategy .......................................................................................................... 8 3 Internationalization and firm performance .......................................................................... 9 3.1 Moderating effect of organizational slack.................................................................... 9 3.2 Moderating effect of attainment discrepancy ............................................................. 10 4 Conclusion ......................................................................................................................... 12 Reference.................................................................................................................................. 13
  2. 2. 2 1 Introduction The usage of the word Internationalization is broad but it is not easy for a literal discussion about it due to its unobvious definition. Literally, the meaning of internationalization is only to bring things being controlled internationally or to internationalize something. A number of researchers make an explanation that internationalization is the external oriented of an enterprise to operate internationally (Ruzzier et al., 2006). Johanson and Vahlne (1977) have widened much more this general characteristic of internationalization which was illustrated as a chronological and in order procedure in which enterprises make a gradual rise in their involving internationally and associating alteration in international formats, among others (Welch and Luostarinen, 1993a; Calof and Beamish, 1995; Rialp and Rialp, 2001; Liesch et al., 2002; Mathews and Zander, 2007). Welch and Luostarinen (1993b) propose using a wider description because of internally- externally interconnecting. They give a definition of internationalization as the procedure of the rise of the association in operating internationally. Overseas markets are entered by enterprises for some causes. As per study of Ekeledo and Sivakumar (2004), production enterprises and service enterprises attack overseas markets due to the inactive home markets or the quicker growth of the overseas market, some enterprises chase after their intimate customers in home country to overseas market, the others may travel abroad to find out bigger volume of orders or for cost reduction hence the competitiveness are strengthened not only at domestic markets but also overseas ones. This study will first review the theories related to internationalization with three main models introduced and then, the relation of internationalization and firm performance will be examined.
  3. 3. 3 Source: Forsgren and Johanson (2010) Figure 1 Internationalization of the firm Figure 2 Basic of Internationalization-State and Change Aspects
  4. 4. 4 Source: Johanson and Mattsson (1988) Figure 3 Network approach of internationalization ……………………………………………………………………………………………… 2 Conclusion This study has provided literature review on the theories of internationalization including three main approaches, stage model, network perspective of internationalization and business strategy. Moreover, the relationship between internationalization and firm performance has reviewed through the moderating effects of organizational slack and attainment discrepancy. This document is provided by: VU Thuy Dung (Ms.) Manager Center for Online Writing Resources Facebook : https://www.facebook.com/vu.thuydung.5076 Email : assignmentsource@gmail.com Blogger : http://assignmentsource.blogspot.com/ Website : http://assignmentsource.com/
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