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Model Of Internationalization

1597 Words7 Pages

2. Theory
The theory section is focused on the internationalization process of SMEs and the network model of internationalization. The second part reviews the literature related to business networks, including the key terms related to networking.

2.1. Internationalization in networks
2.1.1. Internationalization
Internationalization is broadly defined as the process of geographical expansion in international economic operations across national country’s borders (Manolova et al., 2010; Ruzzier et al., 2006; Amal and Rocha Freitag Filho, 2010). According to Ruzzier et al., (2006), a firm operates in international business when a firm sells or buys its products in foreign countries, or cooperates with a foreign counterpart in a certain industry. …show more content…

The economical perspective which relates to multinational enterprises and their international operations, and the behavioral perspective that is emphasized on the process of internationalization. This study is focused on the behavioral perspective of the internationalization of SMEs (Amal and Rocha Freitag Filho, 2010; Ruzzier et al., 2006). Ruzzier et al., (2006) suggests that the models concerning the internationalization of SMEs can be divided into the market, firm or entrepreneur perspective. This study is focussed on the firm perspective since it emphasizes on the “stage” model of internationalization. The two general stage models of internationalization are the Uppsala internationalization model and the innovation related model, which describes the development of internationalization and the international operations. Both models are driving the incremental nature of the internationalization process in which the activities and resources are seen as the main components of the behavior of the firm (Ruzzier et al., 2006; Amal and Rocha Freitag Filho, …show more content…

According to the network theory, internationalization is the process of SME activities to develop social and cognitive relationships between actors within the business network in foreign markets by strengthening their network positions. The success of a firm entering new international markets depends on its position in a network. An SME that has build up a strong network position is an insider that can gain advantages (Hilmersson and Jansson, 2012; Amal and Rocha Freitag Filho, 2010; Evers and Knight, 2008; Coviello and Munro, 1997). In formal

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