Born Global and Gradual Internationalization

In traditional models, firm internationalization is seen as a gradual crop of capability build-up by which firms slowly compose the resources necessary to face foreign market uncertainty (Eriksson, Johanson, Majkgard, & Sharma, 1997). These models expect that firms grow in their domestic markets before they start to trade extensively. This is supposedly so because there is a learning process involved in facing unknown markets, and such a process requires knowledge and resources to face and overcome uncertain outcomes and pricy investments. Knowledge and resources are progressively acquired through experience, first in known domestic markets and then in larger foreign markets (for a review see Leonidou & Katsikeas, 1996). Much literature has enter this liability of foreignness, or the cost faced by firms that charter abroad, and the need for companies to create capabilities in foreign markets (Mezias, 2002; Zaheer, 1995; Zaheer & Mosakowski, 1997). Conventional models of internationalization have drawn criticism (Andersen, 1993; McDougall, Shane, & Oviatt, 1994; Turnbull, 1987). There is existential depict that shows the existence of small, young firms, endowed with very limited resources, which baffle to export immediately after their foundation.

For instance, Moen and Servais (2002) reported, for a sample of Norwegian, French, and Danish firms, the existence of many companies exporting a large office of their total sales shortly after their establishment. Such empirical evidence suggests that the Uppsala model is not the only possible mien to describe the firm internationalization processes. Turnbull (1987) criticizes the determinism inherent in stage-based models, and argues against the model that all firms, regardless of industry type, country context, or former(a) variables, must inevitably follow a fixed highroad to become international. Other authors (Chadee & Mattsson, 1998; Erramilli & Rao, 1993; OFarrell, Wood, & Zheng, 1998) contend that the... If you want to own a full essay, order it on our website: Orderessay

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