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GM-CT-C3 internationalization theories (Born global (increasing role of…
GM-CT-C3 internationalization theories
the Uppsala internationalization model
steps for enter an internatoinal market
no regular export activities (sporadic export)
export via independent representatives (export modes)
establishment of a foreign sales subsidiary
foreign production/ manufacturing units
six dimensions of internationalization
sales objects (goods/services/systems)
2.operatons (agents/ subsidiaries/ licensing/ franchising management contract)
markets: political/ cultural/ psychic/ physical distance difference)
organizational structure (export department/ international division
finance
personnel: international skills, experience, training
the transaction cost analysis model (TCA)
transaction cost = ex ante costs + ex post costs = (search coats + contracting costs) + (monitoring costs + enforcement costs)
Limitation:narrow assumption of the human nature; excluding 'internal' transaction costs; relevance if intermediate forms of SMEs; Importance of production cost is understated
fundamental assumption -- minimize the combination of these costs when undertaking transactions
the network model
concept -- the relationships of a firm in a domestic network can be used as bridges to other networks in other countries.
Two elements: degree of internationalization of the market / the firm
the early starter: have no important international relationship
The lonely international: have relationship, face difference
the later starter: SMEs & LSEs
the international among others
Born global
increasing role of niche markets
advance in process/technology production
flexibility of SMEs/ born global
global networks
internationalization of SMEs
inward-outward cross-border business activities
R&D
production
marketing and distribution
personal factors
entrepreneurial orientation: opportunity seeking, risk-taking,decision
innovativeness
technology
internationalization of services
characteristics of services
extent produced and consumed simultaneously; 2. customer participates; 3.consisting of activities
factors to consider
information technologies
cultural issues
geographic location
standardization vs. customization
implications for international marketing of services: direct export, systems export/following the large customers abroad, direct entry/ own subsidiary, indirect entry/ intermediate mode, electronic marketing/ Internet