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A note on the criticisms against the internationalization process model

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  • Hadjikhani, Amjad
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    Abstract

    The internationalization process model introduced three decades ago still influences international business studies. Since that time, a growing number of researchers have tested the model to show its strengths and weaknesses. Among the critics, some focus on the weakness of the theoretical aspects, while others argue against parts of the model. This paper will review these criticisms and compare them with the original ideas in the internationalization model. One criticized aspect of the internationalization model is the concept of commitment, which is treated by researchers via measurable indicators, i.e. tangible commitment. The aim of this paper is to study commitment from a different angle and deal with intangible commitments which are connected to the concept of psychic distance in the internationalization model. Exploration of the elements in commitment strengthens the model for the internationalization process. It also opens new doors for the use of the model for other internationalization modes, like project selling. To test the concept, a summary of a historical study in which firms lose their tangible commitments and rely only on intangible commitments is given.

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    File URL: http://urn.kb.se/resolve?urn=urn:nbn:se:uu:diva-2386
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    Bibliographic Info

    Paper provided by Uppsala University, Department of Business Studies in its series Working Papers with number 1997:2.

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    Length: 25 pages
    Date of creation: 1997
    Date of revision:
    Handle: RePEc:hhb:uufewp:9702

    Contact details of provider:
    Postal: Department of Business Studies, Uppsala University, Box 513, SE-751 20 Uppsala, Sweden
    Web page: http://www.fek.uu.se/

    Related research

    Keywords: Internationalization process model ; IP-model;

    References

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    1. Stan D Reid, 1981. "The Decision-Maker and Export Entry and Expansion," Journal of International Business Studies, Palgrave Macmillan, vol. 12(2), pages 101-112, June.
    2. Calof, Jonathan L. & Beamish, Paul W., 1995. "Adapting to foreign markets: Explaining internationalization," International Business Review, Elsevier, vol. 4(2), pages 115-131, June.
    3. Daniel Sullivan, 1994. "Measuring the Degree of Internationalization of a Firm," Journal of International Business Studies, Palgrave Macmillan, vol. 25(2), pages 325-342, June.
    4. Martin S Roth & Jean B Romeo, 1992. "Matching Product Category and Country Image Perceptions: A Framework for Managing Country-of-Origin Effects," Journal of International Business Studies, Palgrave Macmillan, vol. 23(3), pages 477-497, September.
    5. Shawna O'Grady & Henry W Lane, 1996. "The Psychic Distance Paradox," Journal of International Business Studies, Palgrave Macmillan, vol. 27(2), pages 309-333, June.
    6. Johny K Johansson & Ilkka A Ronkainen & Michael R Czinkota, 1994. "Negative Country-of-Origin Effects: The Case of the New Russia," Journal of International Business Studies, Palgrave Macmillan, vol. 25(1), pages 157-176, March.
    7. Engwall, L. & Wallenstål, M., 1988. "Tit for tat in small steps: the internationalization of Swedish banks," Scandinavian Journal of Management, Elsevier, vol. 4(3-4), pages 147-155.
    8. Paul Chao, 1993. "Partitioning Country of Origin Effects: Consumer Evaluations of a Hybrid Product," Journal of International Business Studies, Palgrave Macmillan, vol. 24(2), pages 291-306, June.
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    Citations

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    Cited by:
    1. Forsgren, Mats, 2001. "The concept of learning in the Uppsala internationalization process model : a critical review," Occasional Papers 2001/1, Uppsala University, Department of Business Studies.
    2. Alvaro, Cuervo-Cazurra, 2011. "Selecting the country in which to start internationalization: The non-sequential internationalization model," Journal of World Business, Elsevier, vol. 46(4), pages 426-437, October.
    3. Cuervo-Cazurra, Alvaro, 2007. "Sequence of value-added activities in the multinationalization of developing country firms," Journal of International Management, Elsevier, vol. 13(3), pages 258-277, September.
    4. Michailova, Snejina & Wilson, Heather I.M., 2008. "Small firm internationalization through experiential learning: The moderating role of socialization tactics," Journal of World Business, Elsevier, vol. 43(2), pages 243-254, March.
    5. Forsgren, M., 2002. "The concept of learning in the Uppsala internationalization process model: a critical review," International Business Review, Elsevier, vol. 11(3), pages 257-277, June.
    6. Stoian, Maria-Cristina & Rialp, Alex & Rialp, Josep, 2011. "Export performance under the microscope: A glance through Spanish lenses," International Business Review, Elsevier, vol. 20(2), pages 117-135, April.
    7. Figueira-de-Lemos, Francisco & Johanson, Jan & Vahlne, Jan-Erik, 2011. "Risk management in the internationalization process of the firm: A note on the Uppsala model," Journal of World Business, Elsevier, vol. 46(2), pages 143-153, April.
    8. Araujo, Luis & Rezende, Sergio, 2003. "Path dependence, MNCs and the internationalisation process: a relational approach," International Business Review, Elsevier, vol. 12(6), pages 719-737, December.
    9. Yli-Renko, H. & Autio, E. & Tontti, V., 2002. "Social capital, knowledge, and the international growth of technology-based new firms," International Business Review, Elsevier, vol. 11(3), pages 279-304, June.
    10. Pla-Barber, José, 2001. "The internalisation of foreign distribution and production activities: New empirical evidence from Spain," International Business Review, Elsevier, vol. 10(4), pages 455-474, August.

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