The internationalisation of internet-based companies:
a process perspective on managerial intentionality
This paper intends to outline a potential approach to investigating the path of internationalisation of firms whose business models are based on digital technology. It is believed that such firms, due to specific characteristics of their product offering and industry, exhibit an idiosyncratic internationalisation process overemphasising dynamism and managerial entrepreneurship. Hence, they seem a suitable context to apply a process lens through which the Uppsala model can be extended allowing for managerial intentionality. A process is conceptualised as a chain or cycle of related elements leading to an outcome, and as such it is a relevant perspective for understanding the evolution of MNCs and of their foreign operation modes. A process perspective can introduce dynamism in the existing views of internationalisation and help scholars look for new patterns running through different firms (Hutchenreuter et al, 2007). Moving away from comparing states towards comparing processes would allow for the discovery of such generalities if they exist. The Uppsala model develops a process concept of the internationalisation, allowing for cycles and interactions between phases. However, it advocates path-dependency and details little about the role management teams play in internationalisation. It is argued here that the Uppsala model can be enhanced through envisioning the internationalisation process as the joint outcome of managerial intentionality, path-dependency of knowledge, firm experience and the influence of the environment. As the role of managers has just recently started to be developed and considered in international business literature, this way of exploring the context of internet-based firms’ internationalisation may contribute to the growing body of literature on the matter. This paper will proceed as follows. First, the Uppsala model and the internalization perspectives of internationalisation will be examined in brief, centring on potential ways of seeing them through a process lens. Then, managerial intentionality views will be explored. Third, I will briefly outline the specificities of internet-based companies and what seem to be the major tensions they experience during their internationalisation. Finally, I will present the framework of my research and how it will be informed by the theoretical insights reviewed.
Theoretical approaches: introduction
After Hymer’s industrial organization conceptualisation of internationalisation and until the 1980s, scholars seemed to agree that market imperfection was crucial for the development of the process of foreign direct investment (FDI). However, the form of investment could not be explained: export, licensing or greenfield have different levels of commitment and risk, and from Hymer’s conception it was not clear why a firm would go for one or the other. The excessive reliance on market power has diminished as perfect competition has lost its appeal as an unrealistic, and therefore impractical, benchmark and henceforth interest has grown in how the firm advantages are generated. The move towards perceiving firm-specific advantages as inherently linked to the skill of an individual firm has opened the door to perspectives focusing on skill and knowledge as intangible assets. Since Penrose‘s (1959) seminal work, strategic management studies have been developing in the same direction, shifting the focus from industry to the firm. Looking inside the firm has resulted in several perspectives, of which the internalization theory and the internationalisation process theory will be examined in continuance. Both these theories set the grounds for exploration of the internationalisation paths of MNCs. Internalization theory
“Internalization theory” (IT) sees the firm as a governance form coordinating interdependent economic activities whose existence is to a great...
...some others (technology or environment), this paper has clearly presented penetration strategy Tesco PLC, a multinational retailer in grocery and merchandise towards Vietnam market. The paper conducted the report through collecting secondary data from General Statistics Office of Vietnam, Work Bank Data Source, CIA and some other trusted data source to indicate in detail whether Vietnamese market is a possible one for Tesco. The result point out that Vietnam could be a possible market for the core strategy of Tesco PLC.
Retail section has becoming one of the most potential businesses in the booming industry recently. Along with an active market, a level of competitiveness among retailers is also considered as a core factor influences each typical business strategy with the aim at obtaining big goal of profit. Numerous big retailer Groups in the world, now is trying to expand their business towards prospective market but not only domestic one such as Wal-mart or Metroto be able to perform, develop and compete through having effective plan and well performing. This report would like to examine Tesco PLC, the biggest retailer from the United Kingdom as a representative case for the effective expansion strategy implementation basing on analysing some key factors of host country’s market in a macro level. The chosen country is Vietnam, a brand new and potential Asian market which has quite high level of...
...Juvenile crime is caused by many underlying factors, and in this paper I will discuss two theories that help explain the crime of juvenile theft. Theft, as stated by the Federal Bureau of Investigations (F.B.I), is defined as the unlawful taking, carrying, leading, or riding away of property from the possession or constructive possession of another (Federal Bureau of Investigations, 2013: N.P.). Therefore, juvenile theft would be ‘the unlawful taking, carrying, leading, or riding away of property from the possession or constructive possession of another’ as done by a person under the age of 18. In the year 2011, according to the Office of Juvenile Justice and Delinquency Prevention (OJJDP), 76% of all juvenile arrests for Property Crime Index offenses were for larceny-theft (OJJDP, 2013: N.P.).
As stated in Agnew’s General Strain Theory (1992), juvenile theft or any juvenile act can be a result of many factors such as negative social relationships, the removal of a positive stimuli, or a presentation of a negative stimuli. First, delinquency may be a result of negative social relationships (Agnew, 1992). While being in the presence of negative relationships, people could be pressured by negative states such as anger and other negative emotions, resulting in juvenile delinquency (Agnew, 1992).
Another causation of juvenile theft or any juvenile act may be due to the removal of a positive stimuli. The criminal behavior of...
...Case Study #3: Contract for the International Sale of Goods
A chip off the new block
Semicontronics is an Australian manufacturing company that has been in the business of semi manufactured electronics for over a decade. Semicontronics has a solid reputation for meeting customer demands for quality products on time and on budget. The majority of Semicontronics customers are international, mid-market manufacturing companies that produce generic electronics such as cell phones, digital media players and game consoles. Retail stores in foreign countries purchase the generic products and rebrand them for sale.
Recently, Semicontronics has been approached by Phoneson to act as a supplier in their supply chain. Based in Japan, Phoneson is an original design electronics manufacturing company specializing in high-end mobility devices including cell phones, navigation systems and PDAs. Phoneson is impressed with Semicontronics’ reputation and wants Semicontronics to supply several components for its next release of legacy products.
Phoneson has a reputation for producing best in class brands of electronics, and is recognized for cutting edge technology and aesthetic design. It has built a loyal following from electronics enthusiasts in its native Japan as well as other Asian and European electronics markets. Phoneson wants to extend its brand into the highly competitive North American market and sees standard Internet and GPS...
...Title: Does culture still matter in InternationalBusiness and Management?
As global competition is getting tougher, more and more companies are being “forced” to engage in internationalbusiness if they are to survive. Companies depend on a variety of factors, such as a high level of administrative competence from their managers in order to achieve success. One factor that is frequently being referred to as a critical success factor is cross-cultural literacy. This means that there is an increasingly need for business people to understand how cultural differences across and within nations can influence the way business is practiced.
On the other hand, many may argue that, because of the Globalization Phenomena, differences between nations are getting smaller or even disappearing because of the raise of a global culture. Supporters of this idea probably share the same view as Levitt (1983) who claimed that “effective global strategy is all about product standardization”. He also believed that a unified world marketplace would be created and that localizing the marketing mix would be unnecessary. Consequently, if Levitt were right, this would probably suggest that cultural differences would not really have any consequences for internationalbusiness and management anymore.
It is possible to agree with Levitt to some extent about product...
When it comes to dealing with issues in the international level, ethics becomes more and more difficult to understand as ethics can be interpreted in different ways to different people, and their ethics may change when dealing with issues abroad. Today, many individuals from different parts of the world and from different backgrounds, cultures, environment, etc. have started to do business with each. Globalization has given opportunities for individuals to expand within the foreign markets in order to succeed in the business world. Many different businesses in Canada have taken advantage of this opportunity to expand in order to have access to foreign markets, and Goldcorp Inc. is one of them.
Goldcorp Inc. is a Canadian public company that was incorporated in Canada on March 31, 1994. Its headquarters are located in Vancouver, British Columbia where the company was incorporated. Goldcorp Inc. operates under the gold mining industry in Canada and they currently own 16 operations and development projects all over the Americas which include: three mines and one project in Canada; two mines in the United States of which one is fully owned while the other has 67% ownership; four mines in Mexico; one mine in Honduras; one mine with 37.5% ownership in Argentina; one project with 40% ownership in Dominican Republic; one project with 70% ownership in Chile; and one mine in Guatemala called the Marlin mine, which has been...
...possible risk of quality control of the product and the risk of sales not being accounted for in the financial records. This can be overcome by the employment of an external auditor.
California is in a strategic geographical location due its access to international transportation networks and their inclusion in the North American Free Trade Agreement (NAFTA). The current legal environment provides legislative provisions for the protection of intellectual property and new inventions.
The possible risks associated with foreign currency exchanges are the fluctuations between the AUD and USD. In the post-Global Financial Crisis (GFC) economy, these fluctuations can be significant. The U.S. corporate taxation laws present a risk to the royalties paid from the license agreement, as the U.S. corporate tax rate is one of the highest in the world at 39%. There is potential competition for sustainable energy products in the Californian market. In order for Sun-Believable to be successful in its market entry, it must adhere to production standards set out by the Californian State Government.
The cultural differences that exist between Australia and the U.S. are slight, however Australians must be aware of particular American business practices when negotiating the license agreement.
This report provides a comprehensive industry analysis of the Californian sustainable energy market and how market share will be gained through a licensing...
...renegotiate (and assuming that Kuusisto agrees), how should he restructure the terms of the deal?
Philips versus Matsushita
1) How did Philips become the leading consumer electronics company in the world in the postwar era? What distinctive competence did they build? What distinctive incompetencies?
2) How did Matsushita succeed in displacing Philips as No. 1? What were its distinctive competencies and incompetencies?
3) What do you think of the change each company has made to date - the objectives, the implementation, the impact? Why is the change so hard for both of them?
4) What overall strategic recommendations would you make to Gerald Kleisterlee? To Eumio Ohtsubo?
Lego Group: An Outsourcing Journey
1. Describe the competitive environment of the industry and how it relates to LEGO’s strategic choices.
2. What are the key challenges in maintaining a relationship like the one between LEGO and Flextronics?
3. How can LEGO handle the supply chain complexity to improve knowledge sharing, flexibility and coordination?
4. Discuss the key considerations when outsourcing or offshoring production.
IKEA’s Global Sourcing Challenge
1. How should Marianne Barner respond to the invitation for IKEA to have a representative appear on the upcoming broadcast of the German video program?
2. What actions should she take regarding the IKEA supply contract with Rangan Exports?
3. What long-term strategy would you suggest she take...
...HOLY ANGEL UNIVERSITY
TopData Global IT Solutions
Gonzales, Ronniel D.
Master’s in Business Management
TopData is a Philippine based provider of managed outsourced solutions catering to the online B2B and B2C community. The company started as one of the pioneering i-cafés in Angeles City in 1998 helping business people and students on research, transcription and encoding. Currently, it provides both domestic and offshore outsourcing services. TopData serves Australian, European and US clients in front and back office operations such as accounting, data entry, customer service, database and website content management, and transcription.
As an editor I feel good working with the company because the entire task that is given to me is aligned with my skills, but sometimes I feel disappointed when some clients are so demanding and unclear in giving instructions.
For almost eight months of working in the company, so far it is good because we are treated fairly by our human resource personnel and I received the right compensation for me. But I'm planning to look for another work after my one year stay in the company because I think my job is not fitted with my skills.
As a CSR (Customer Service Representative) and working in the company for two years, I can say that working In the company is so fun because my...