On the basis of empirical research, a model of the internationalization process of the firm is developed. The model focuses on the gradual acquisition, integration and use of knowledge about foreign markets and operations, and on the incrementally increasing commitments to foreign markets. In particular, attention is concentrated on the increasing involvement in the individual foreign country.

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The Internationalization Process of the Firm - A Model of Knowledge Development and Increasing Foreign Market Commitments

Characteristics of national cultures have frequently been claimed to influence the selection of entry modes. This article investigates this claim by developing a theoretical argument for why culture should influence the choice of entry. Two hypotheses are derived which relate culture to entry mode choice, one focusing on the cultural distance between countries, the other on attitudes towards uncertainty avoidance. Using a multinomial logit model and controlling for other effects, the hypotheses are tested by analysing data on 228 entries into the United States market by acquisition, wholly owned greenfield, and joint venture. Empirical support for the effect of national culture on entry choice is found.

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The Effect of National Culture on the Choice of Entry Mode

We explore the theoretical foundations of value creation in e-business by examining how 59 American and European e-businesses that have recently become publicly traded corporations create value. We observe that in e-business new value can be created by the ways in which transactions are enabled. Grounded in the rich data obtained from case study analyses and in the received theory in entrepreneurship and strategic management, we develop a model of the sources of value creation. The model suggests that the value creation potential of e-businesses hinges on four interdependent dimensions, namely: efficiency, complementarities, lock-in, and novelty. Our findings suggest that no single entrepreneurship or strategic management theory can fully explain the value creation potential of e-business. Rather, an integration of the received theoretical perspectives on value creation is needed. To enable such an integration, we offer the business model construct as a unit of analysis for future research on value creation in e-business. A business model depicts the design of transaction content, structure, and governance so as to create value through the exploitation of business opportunities. We propose that a firm's business model is an important locus of innovation and a crucial source of value creation for the firm and its suppliers, partners, and customers. Copyright © 2001 John Wiley & Sons, Ltd.

https://uazuay.edu.ec/bibliotecas/e-business/Value_Creation_in_E-Business.pdf

Value creation in E-business

A review of the literature suggests that few studies use formative indicator measurement models, even though they should. Therefore, the purpose of this research is to (a) discuss the distinction between formative and reflective measurement models, (b) develop a set of conceptual criteria that can be used to determine whether a construct should be modeled as having formative or reflective indicators, (c) review the marketing literature to obtain an estimate of the extent of measurement model misspecification in the field, (d) estimate the extent to which measurement model misspecification biases estimates of the relationships between constructs using a Monte Carlo simulation, and (e) provide recommendations for modeling formative indicator constructs.

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A Critical Review of Construct Indicators and Measurement Model Misspecification in Marketing and Consumer Research

The authors develop a framework for understanding the behaviors and practices of service providers that build or deplete consumer trust and the mechanisms that convert consumer trust into value and loyalty in relational exchanges. The proposed framework (1) uses a multidimensional conceptualization for the trustworthiness construct; (2) incorporates two distinct facets of consumer trust, namely, frontline employees and management policies and practices; and (3) specifies value as a key mediator of the trust–loyalty relationship. The authors test the proposed model using data from two service contexts—retail clothing (N = 264) and nonbusiness airline travel (N = 113). The results support a tripartite view of trustworthiness evaluations along operational competence, operational benevolence, and problem-solving orientation dimensions. Moreover, the authors find evidence of contingent asymmetric relationships between trustworthiness dimensions and consumer trust. For frontline employees, benevolent b...

Consumer Trust, Value, and Loyalty in Relational Exchanges:

The Uppsala internationalization process model is revisited in the light of changes in business practices and theoretical advances that have been made since 1977. Now the business environment is viewed as a web of relationships, a network, rather than as a neoclassical market with many independent suppliers and customers. Outsidership, in relation to the relevant network, more than psychic distance, is the root of uncertainty. The change mechanisms in the revised model are essentially the same as those in the original version, although we add trust-building and knowledge creation, the latter to recognize the fact that new knowledge is developed in relationships.

/pdf/the-uppsala-internationalization-process-model-revisited-2ck5k4nfor.pdf

The Uppsala Internationalization Process Model Revisited: From Liability of Foreignness to Liability of Outsidership

Many firms start international operations when they are still comparatively small and gradually develop their operations abroad. This chapter analyses the internationalization of four Swedish firms — Sandvik, Atlas Copco, Facit and Volvo. All of them sell more than two-thirds of their turnover abroad and have production facilities in more than one foreign country. Of the four firms Sandvik is the oldest and also the one which first started its internationalization course. The first contacts with representatives were established in the 1860s. Sandvik's early start with representatives in foreign countries was an innovation at that time. Until then the Swedish iron and steel exporting had mainly been undertaken by trading firms. In 1905 Atlas produced the first air compressor. In 1917 the company was merged with another firm, producing diesel engines. Atlas Copco is five years younger than Sandvik but started the internationalization process considerably later.

https://onlinelibrary.wiley.com/doi/pdf/10.1111/j.1467-6486.1975.tb00514.x

The internationalization of the firm — four swedish cases

The contemporary relevance of the so‐called Uppsala Internationalisation Model is discussed. This is a framework advanced by a number of Swedish colleagues describing the typical process of “going international”. Johanson and Vahlne respond to the criticisms of the model they proposed in the 1970s and relate it to the Eclectic Paradigm Model and the Networking literature. The concepts of the advantage package and the advantage cycle in the internationalisation context are also introduced.

The Mechanism of Internationalisation

In business-to-business settings, dyadic relationships between firms are of paramount interest. Recent developments in business practice strongly suggest that to understand these business relationships, greater attention must be directed to the embedded context within which dyadic business relationships take place. The authors provide a means for understanding the connectedness of these relationships. They then conduct a substantive validity assessment to furnish some empirical support that the constructs they propose are sufficiently well delineated and to generate some suggested measures for them. They conclude with a prospectus for research on business relationships within business networks.

Jan Johanson

Papers

The Internationalization Process of the Firm - A Model of Knowledge Development and Increasing Foreign Market Commitments

The Uppsala Internationalization Process Model Revisited: From Liability of Foreignness to Liability of Outsidership

The internationalization of the firm — four swedish cases

The Mechanism of Internationalisation

Dyadic Business Relationships within a Business Network Context