IDEAS home Printed from https://ideas.repec.org/a/spr/manint/v55y2015i1d10.1007_s11575-014-0229-0.html
   My bibliography  Save this article

How Product Attributes Influence Internationalization: A Framework of Domain- and Culture-Specificity

Author

Listed:
  • Terence Ping-Ching Fan

    (Singapore Management University)

  • Alex Tai Loong Tan

    (University of Western Australia)

Abstract

This paper introduces two dimensions of product attributes in the context of internationalization: domain- and culture-specificity. Products can be high or low in domain- or culture-specificity, thereby being one of four broad categories in a two-by-two matrix. This framework of product attributes helps explain a series of gradations on how cultural difference influences the difficulty of selling a product internationally. By examining four cases, one from each of these categories, this paper shows that different product attributes affected the difficulty or ease with which the products of these firms were internationalized. While all four cases were able to derive international sales, the domain- and culture-specificity of their products constrained the international markets these products could feasibly enter into, and how soon this could take place. In general, more culture-specific products face higher hurdles in a culturally dissimilar international market compared with the home market. However, given products of similar culture-specificities, highly domain-specific products tend to have less difficulty in selling to a culturally different international market than products that are not domain-specific.

Suggested Citation

  • Terence Ping-Ching Fan & Alex Tai Loong Tan, 2015. "How Product Attributes Influence Internationalization: A Framework of Domain- and Culture-Specificity," Management International Review, Springer, vol. 55(1), pages 53-76, February.
  • Handle: RePEc:spr:manint:v:55:y:2015:i:1:d:10.1007_s11575-014-0229-0
    DOI: 10.1007/s11575-014-0229-0
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11575-014-0229-0
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.

    File URL: https://libkey.io/10.1007/s11575-014-0229-0?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Jean–François Hennart, 2014. "The Accidental Internationalists: A Theory of Born Globals," Entrepreneurship Theory and Practice, , vol. 38(1), pages 117-135, January.
    2. Freeman, Susan & Hutchings, Kate & Lazaris, Miria & Zyngier, Suzanne, 2010. "A model of rapid knowledge development: The smaller born-global firm," International Business Review, Elsevier, vol. 19(1), pages 70-84, February.
    3. Fan, Terence Ping Ching, 2009. "Determinants of de novo new entrant survival in the liberalized intra-European scheduled passenger airline industry," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 45(2), pages 293-306, March.
    4. Jan Johanson & Jan-Erik Vahlne, 1977. "The Internationalization Process of the Firm—A Model of Knowledge Development and Increasing Foreign Market Commitments," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 8(1), pages 23-32, March.
    5. Jae C. Jung & Pratima Bansal, 2009. "How Firm Performance Affects Internationalization," Management International Review, Springer, vol. 49(6), pages 709-732, December.
    6. Bruce Kogut & Harbir Singh, 1988. "The Effect of National Culture on the Choice of Entry Mode," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 19(3), pages 411-432, September.
    7. Hofstede, G., 2006. "What did GLOBE really measure? Researchers' minds versus respondents' minds," Other publications TiSEM 53fc2049-e658-4cff-a440-4, Tilburg University, School of Economics and Management.
    8. Jean-François Hennart, 2007. "The theoretical rationale for a multinationality-performance relationship," Management International Review, Springer, vol. 47(3), pages 423-452, June.
    9. Madsen, Tage Koed & Servais, Per, 1997. "The internationalization of Born Globals: An evolutionary process?," International Business Review, Elsevier, vol. 6(6), pages 561-583, December.
    10. Elizabeth L. Rose & Kiyohiko Ito, 2009. "Past Interactions and New Foreign Direct Investment Location Decisions," Management International Review, Springer, vol. 49(5), pages 641-669, October.
    11. Marian V Jones & Nicole E Coviello, 2005. "Internationalisation: conceptualising an entrepreneurial process of behaviour in time," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 36(3), pages 284-303, May.
    12. Susan Freeman & Kate Hutchings & Sylvie Chetty, 2012. "Born-Globals and Culturally Proximate Markets," Management International Review, Springer, vol. 52(3), pages 425-460, June.
    13. Winfried Ruigrok & Wolfgang Amann & Hardy Wagner, 2007. "The internationalization-performance relationship at Swiss firms: A test of the S-shape and extreme degrees of internationalization," Management International Review, Springer, vol. 47(3), pages 349-368, June.
    14. Fan, Terence Ping Ching & Tan, Alex Tai Loong & Geng, Xuesong, 2014. "Rapid capacity expansions and failure: A trap for new airline entrants?," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 61(C), pages 176-191.
    15. Terence Fan & Phillip Phan, 2007. "International new ventures: revisiting the influences behind the ‘born-global’ firm," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 38(7), pages 1113-1131, December.
    16. Harry G Barkema & Rian Drogendijk, 2007. "Internationalising in small, incremental or larger steps?," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 38(7), pages 1132-1148, December.
    17. Martine Spence & Barbara Orser & Allan Riding, 2011. "A Comparative Study of International and Domestic New Ventures," Management International Review, Springer, vol. 51(1), pages 3-21, February.
    18. Musteen, Martina & Francis, John & Datta, Deepak K., 2010. "The influence of international networks on internationalization speed and performance: A study of Czech SMEs," Journal of World Business, Elsevier, vol. 45(3), pages 197-205, July.
    19. Farok J Contractor & Sumit K Kundu & Chin-Chun Hsu, 2003. "A three-stage theory of international expansion: the link between multinationality and performance in the service sector," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 34(1), pages 5-18, January.
    20. Martin Glaum & Michael-Jörg Oesterle, 2007. "40 years of research on internationalization and firm performance: More questions than answers?," Management International Review, Springer, vol. 47(3), pages 307-317, June.
    21. Piyush Sharma, 2011. "Country of origin effects in developed and emerging markets: Exploring the contrasting roles of materialism and value consciousness," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 42(2), pages 285-306, February.
    22. Gabrielsson, Mika & Kirpalani, V.H. Manek & Dimitratos, Pavlos & Solberg, Carl Arthur & Zucchella, Antonella, 2008. "Born globals: Propositions to help advance the theory," International Business Review, Elsevier, vol. 17(4), pages 385-401, August.
    23. Davidsson, Per & Steffens, Paul & Fitzsimmons, Jason, 2009. "Growing profitable or growing from profits: Putting the horse in front of the cart?," Journal of Business Venturing, Elsevier, vol. 24(4), pages 388-406, July.
    24. Ripollés, Maria & Blesa, Andreu, 2012. "International new ventures as “small multinationals”: The importance of marketing capabilities," Journal of World Business, Elsevier, vol. 47(2), pages 277-287.
    25. Man Zhang & Patriya Tansuhaj & James McCullough, 2009. "International entrepreneurial capability: The measurement and a comparison between born global firms and traditional exporters in China," Journal of International Entrepreneurship, Springer, vol. 7(4), pages 292-322, December.
    26. N Capar & M Kotabe, 2003. "The relationship between international diversification and performance in service firms," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 34(4), pages 345-355, July.
    27. Rialp, Alex & Rialp, Josep & Knight, Gary A., 2005. "The phenomenon of early internationalizing firms: what do we know after a decade (1993-2003) of scientific inquiry?," International Business Review, Elsevier, vol. 14(2), pages 147-166, April.
    28. Manolova, Tatiana S. & Manev, Ivan M. & Gyoshev, Bojidar S., 2010. "In good company: The role of personal and inter-firm networks for new-venture internationalization in a transition economy," Journal of World Business, Elsevier, vol. 45(3), pages 257-265, July.
    29. Luis E Lopez & Sumit K Kundu & Luciano Ciravegna, 2009. "Born global or born regional? Evidence from an exploratory study in the Costa Rican software industry," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 40(7), pages 1228-1238, September.
    30. Pankaj Ghemawat, 2003. "Semiglobalization and international business strategy," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 34(2), pages 138-152, March.
    31. Hashai, Niron & Almor, Tamar, 2004. "Gradually internationalizing 'born global' firms: an oxymoron?," International Business Review, Elsevier, vol. 13(4), pages 465-483, August.
    32. Mansour Javidan & Robert J House & Peter W Dorfman & Paul J Hanges & Mary Sully de Luque, 2006. "Conceptualizing and measuring cultures and their consequences: a comparative review of GLOBE's and Hofstede's approaches," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 37(6), pages 897-914, November.
    33. Natasha Evers, 2010. "Factors influencing the internationalisation of new ventures in the Irish aquaculture industry: An exploratory study," Journal of International Entrepreneurship, Springer, vol. 8(4), pages 392-416, December.
    34. Gabrielsson, Mika & Manek Kirpalani, V. H., 2004. "Born globals: how to reach new business space rapidly," International Business Review, Elsevier, vol. 13(5), pages 555-571, October.
    35. Boter, Hakan & Holmquist, Carin, 1996. "Industry characteristics and internationalization processes in small firms," Journal of Business Venturing, Elsevier, vol. 11(6), pages 471-487, November.
    36. Geert Hofstede, 2006. "What did GLOBE really measure? Researchers’ minds versus respondents’ minds," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 37(6), pages 882-896, November.
    37. B. Elango & Chinmay Pattnaik, 2011. "Learning Before Making the Big Leap," Management International Review, Springer, vol. 51(4), pages 461-481, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Rubina Romanello & Maria Chiarvesio, 2019. "Early internationalizing firms: 2004–2018," Journal of International Entrepreneurship, Springer, vol. 17(2), pages 172-219, June.
    2. Innan Sasaki & Niina Nummela & Davide Ravasi, 2021. "Managing cultural specificity and cultural embeddedness when internationalizing: Cultural strategies of Japanese craft firms," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 52(2), pages 245-281, March.
    3. Caputo, Francesco & Soto-Acosta, Pedro & Chiacchierini, Claudio & Mazzoleni, Alberto & Passaro, Pierluigi, 2021. "Smashing local boundaries for sustain companies’ innovativeness: The role of international R&D teams," Journal of Business Research, Elsevier, vol. 128(C), pages 641-649.
    4. Stallkamp, Maximilian & Hunt, Richard A. & Schotter, Andreas P.J., 2022. "Scaling, fast and slow: The internationalization of digital ventures," Journal of Business Research, Elsevier, vol. 146(C), pages 95-106.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Rubina Romanello & Maria Chiarvesio, 2019. "Early internationalizing firms: 2004–2018," Journal of International Entrepreneurship, Springer, vol. 17(2), pages 172-219, June.
    2. Dzikowski, Piotr, 2018. "A bibliometric analysis of born global firms," Journal of Business Research, Elsevier, vol. 85(C), pages 281-294.
    3. Jones, Marian V. & Coviello, Nicole & Tang, Yee Kwan, 2011. "International Entrepreneurship research (1989–2009): A domain ontology and thematic analysis," Journal of Business Venturing, Elsevier, vol. 26(6), pages 632-659.
    4. Johanson, Martin & Martín Martín, Oscar, 2015. "The incremental expansion of Born Internationals: A comparison of new and old Born Internationals," International Business Review, Elsevier, vol. 24(3), pages 476-496.
    5. Indujeeva Peiris & Michèle Akoorie & Paresha Sinha, 2012. "International entrepreneurship: A critical analysis of studies in the past two decades and future directions for research," Journal of International Entrepreneurship, Springer, vol. 10(4), pages 279-324, December.
    6. Jiang, Guohua & Kotabe, Masaaki & Zhang, Feng & Hao, Andy W. & Paul, Justin & Wang, Cheng Lu, 2020. "The determinants and performance of early internationalizing firms: A literature review and research agenda," International Business Review, Elsevier, vol. 29(4).
    7. Nowinski, Witold & Rialp, Alex, 2013. "Drivers and strategies of international new ventures from a Central European transition economy," Journal of East European Management Studies, Rainer Hampp Verlag, vol. 18(2), pages 191-231.
    8. Mika Gabrielsson & Peter Gabrielsson & Pavlos Dimitratos, 2014. "International Entrepreneurial Culture and Growth of International New Ventures," Management International Review, Springer, vol. 54(4), pages 445-471, August.
    9. Shaheer, Noman Ahmed & Li, Sali, 2020. "The CAGE around cyberspace? How digital innovations internationalize in a virtual world," Journal of Business Venturing, Elsevier, vol. 35(1).
    10. Francisco García-Lillo & Enrique Claver-Cortés & Bartolomé Marco-Lajara & Mercedes Úbeda-García, 2017. "Mapping the Intellectual Structure of Research on ‘Born Global’ Firms and INVs: A Citation/Co-citation Analysis," Management International Review, Springer, vol. 57(4), pages 631-652, August.
    11. Sleuwaegen, Leo & Onkelinx, Jonas, 2014. "International commitment, post-entry growth and survival of international new ventures," Journal of Business Venturing, Elsevier, vol. 29(1), pages 106-120.
    12. Knight, Gary A. & Liesch, Peter W., 2016. "Internationalization: From incremental to born global," Journal of World Business, Elsevier, vol. 51(1), pages 93-102.
    13. Jean-François Hennart & Antonio Majocchi & Birgit Hagen, 2021. "What’s so special about born globals, their entrepreneurs or their business model?," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 52(9), pages 1665-1694, December.
    14. Farhad Uddin Ahmed & Louis Brennan, 2021. "A review of methodological diversity within the domain of international entrepreneurship," Journal of International Entrepreneurship, Springer, vol. 19(2), pages 256-299, June.
    15. Hélène Laurell & Svante Andersson & Leona Achtenhagen, 2013. "The importance of industry context for new venture internationalisation: A case study from the life sciences," Journal of International Entrepreneurship, Springer, vol. 11(4), pages 297-319, December.
    16. Ryan Trudgen & Susan Freeman, 2014. "Measuring the Performance of Born-Global Firms Throughout Their Development Process: The Roles of Initial Market Selection and Internationalisation Speed," Management International Review, Springer, vol. 54(4), pages 551-579, August.
    17. Birgit Hagen & Antonella Zucchella, 2014. "Born Global or Born to Run? The Long-Term Growth of Born Global Firms," Management International Review, Springer, vol. 54(4), pages 497-525, August.
    18. Rimante Sedziniauskiene & Jurgita Sekliuckiene & Antonella Zucchella, 2019. "Networks’ Impact on the Entrepreneurial Internationalization: A Literature Review and Research Agenda," Management International Review, Springer, vol. 59(5), pages 779-823, October.
    19. Jean–François Hennart, 2014. "The Accidental Internationalists: A Theory of Born Globals," Entrepreneurship Theory and Practice, , vol. 38(1), pages 117-135, January.
    20. Sascha Kraus & Alexander Brem & Miriam Schuessler & Felix Schuessler & Thomas Niemand, 2019. "Innovative Born Globals: Investigating the Influence of Their Business Models on International Performance," World Scientific Book Chapters, in: Alexander Brem & Joe Tidd & Tugrul Daim (ed.), Managing Innovation Internationalization of Innovation, chapter 11, pages 275-328, World Scientific Publishing Co. Pte. Ltd..

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:manint:v:55:y:2015:i:1:d:10.1007_s11575-014-0229-0. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.