Born-Again Globals

Based on the literature on the Uppsala model, born-again globals, non-linear internationalization model, and late market entry, this chapter aims to portray the history, changes, and adaptations of OMEGA's internationalization process. This transitioning firm manufactures furniture and wooden hockey sticks. This chapter identifies that OMEGA follows a non-linear internationalization process and late entry into international markets. The principal added value of the case study presented here is related to presenting OMEGA's non-linear internationalization process, which displays reactive internationalization behavior in response to a saturated domestic market, typical of the Uppsala model, and which subsequently ends in a rapid internationalization process, as a born-again global, as a result of a change in its top management. During its internationalization process, OMEGA changed its internationalization pace, modes of entry, and export actions by adapting to the external environment and then changing its strategic focus.

The Internationalization Behavior of SMEs from a Purchase Perspective

The aim of present study was to analyze the internationalization behavior of Small and Medium Enterprises (SMEs) regarding purchases using four questions: why, what, when and where. Structured interviews were conducted at SMEs located in the city of Curitiba and Metropolitan Region, Brazil, which dealt with the machinery and equipment sector. Regarding the reasons for internationalization (why), the main results showed agreement with motivators associated with cheaper products, advanced technology, higher quality and exclusivity, as well as an expectation of increasing organizational competitiveness. Internationalization items (what) sought out by SMEs were mostly items considered strategic. Regarding internationalization period (when), younger companies tended to start their internationalization process earlier. However, both the age of the company and the year of international entry did not directly explain or influence international expansion. Finally, place of internationalization (where) showed that a variety of countries have been involved with SMEs since their creation. However, the age of the company and the age of international entry could not directly explain or influence international geographic speed (entry into new countries).

Does state capitalism matter in firm internationalization? Pace, rhythm, location choice, and product diversity

Purpose – The purpose of this paper is to investigate the direct effects of state capitalism on the internationalization behavior of state-owned enterprises (SOEs). Specifically, the authors focus on four distinct aspects of internationalization behavior; namely, pace of internationalization, rhythm of internationalization, location choice (developing countries vs developed countries), and diversity of product lines. Design/methodology/approach – The authors empirically test the hypotheses using data from Chinese construction companies during the period 2009-2015. The authors build a unique dataset by combining the data from ENR Top 225 International Contractors reports and the State Administration for Industry and Commerce of China information. Moreover, concerning the panel data structure and the potential for autocorrelation and heteroskedasticity, The authors use the feasible generalized least square panel model to test the hypotheses. Findings – The authors find that the level of state capitalism has a positive effect on SOEs’ rhythm of internationalization, while there is no significant relationship between the level of state capitalism and the pace of internationalization. Furthermore, the authors find that the SOEs affiliated with higher levels of government organizations are more likely to locate business operations in developing countries and engage in more diversity of product lines. Research limitations/implications – The findings show that the different varieties of state capitalism are the source of the different internationalization patterns of SOEs. Instead of supposing SOEs to be uniform players in emerging economies, the authors show that the nature of SOEs varies depending on the level of government with which they are affiliated, and this fact results from the divergent manifestations of state capitalism itself. Originality/value – This study improves the understanding of how state capitalism affects the capabilities and motivations of SOEs in regard to overseas expansion. The authors extend institutional theory by supposing that the level of state capitalism has a positive effect on the rhythm of internationalization. Moreover, the authors find that SOEs embedded with high levels of government affiliation tend to enter into developing countries and diversify their product lines.

Retail companies’ internationalization behavior and the 2008 crisis

Purpose – The purpose of this paper is to challenge earlier recommendations and explanations regarding companies’ behaviour after an economic shock and analyses worldwide retail companies’ internationalization processes before and after the 2008 crisis. Design/methodology/approach – Drawing on information published between 2003 and 2012, the authors focus on the 2008 crisis and analyse 1,500 different internationalization moves by 109 companies from 26 countries. Findings – The analyses confirm that the pace of retail internationalization increased after the 2008 crisis, that these companies had mainly moved into countries with newly developing economies, and that the entry modes ranged from high-cost entry modes and low-cost strategies. Originality/value – This paper provides an initial indication of retailers’ actual internationalization behaviour in the period considered. Such material has not been available previously as international retailing research has primarily focused on theoretical assumptions. By focusing on the current financial crisis, the authors highlight the problem that researchers investigating various company behaviours face when comparing these to the theoretical expectations. By using a worldwide, multisectorial, and longitudinal retailing sample to illustrate the internationalization process, the authors not only generalize companies’ internationalization behaviour, but also challenge earlier recommendations and explanations regarding their behaviour after an economic shock.

Why and how motives (still) matter

Purpose – The paper aims to provide a discussion of the relevance of motives for companies’ internationalization. Design/methodology/approach – This paper is a conceptual discussion building on established classifications of motives of internationalization, which distinguish between market-seeking, efficiency-seeking, resource-seeking and strategic asset-seeking motives. Findings – The analysis demonstrates that important issues in companies’ internationalization differ systematically across different types of motives, which implicates that motives remain relevant when analyzing various aspects of the internationalization of the firm. Motives are also useful elements for theory building in international business. Research limitations/implications – The analysis is purely conceptual and is not further substantiated by empirical evidence. Practical implications – The classification of motives is a useful tool for companies to analyze their strategic alternatives and actions, especially with regard to performance measurement. Originality/value – The paper demonstrates the importance of retaining a clear classification of motives as a basis for further development of a theory of firms’ internationalization behavior.