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Can Uppsala Model Explain the Internationalisation of Central European SMEs?

Author

Listed:
  • Marcela Tuzová

    (Mendel University in Brno, Czech Republic)

  • Martina Toulová

    (Mendel University in Brno, Czech Republic)

  • Jakub Straka

    (Mendel University in Brno, Czech Republic)

  • Lea Kubíčková

    (Mendel University in Brno, Czech Republic)

Abstract

The aim of this paper is to scrutinize some aspects of the Uppsala model whose applicability for SMEs' internationalisation is often questioned. This model explains internationalisation as a sequential process based on learning in which an enterprise increases its international commitment in incremental steps (Johanson and Vahlne, 1977). The assumptions of Uppsala model are discussed in conditions of SMEs from different countries, namely the Czech Republic, Slovakia, Poland, Austria and Germany. The paper is based on primary data obtained by questionnaire survey performed in 2014. Respondents were small and medium-sized firms from the above mentioned countries. Following assumptions are scrutinized: SMEs start internationalisation by exporting to neighbouring markets, SMEs behave in internationalisation according to the establishment chain, SMEs' risk perception regarding foreign markets with different psychic distance changes with the obtained knowledge and SMEs' risk perception regarding particular foreign markets differs depending on the country which the enterprise comes from.

Suggested Citation

  • Marcela Tuzová & Martina Toulová & Jakub Straka & Lea Kubíčková, 2015. "Can Uppsala Model Explain the Internationalisation of Central European SMEs?," European Journal of Business Science and Technology, Mendel University in Brno, Faculty of Business and Economics, vol. 1(2), pages 149-164.
  • Handle: RePEc:men:journl:v:1:y:2015:i:2:p:149-164
    DOI: 10.11118/ejobsat.v1i2.14
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    References listed on IDEAS

    as
    1. Jesus ARTEAGA ORTIZ, 2009. "On the Relationship between Export Activity and Size," Economics and Applied Informatics, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, issue 2, pages 57-68.
    2. Annie Peng Cui & Michael F. Walsh, 2011. "Internationalization Challenges for SMEs and Global Marketing Managers: A Case Study," International Journal of Business and Social Research, MIR Center for Socio-Economic Research, vol. 1(1), pages 57-69, December.
    3. John Child & Sek Hong Ng & Christine Wong, 2002. "Psychic Distance and Internationalization: Evidence from Hong Kong Firms," International Studies of Management & Organization, Taylor & Francis Journals, vol. 32(1), pages 36-56, January.
    4. Annie Peng Cui & Michael F. Walsh, 2011. "Internationalization Challenges for SMEs and Global Marketing Managers: A Case Study," International Journal of Business and Social Research, LAR Center Press, vol. 1(1), pages 57-69, December.
    5. Warren J Bilkey & George Tesar, 1977. "The Export Behavior of Smaller-Sized Wisconsin Manufacturing Firms," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 8(1), pages 93-98, March.
    6. John H Dunning, 1980. "Towards an Eclectic Theory of International Production: Some Empirical Tests," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 11(1), pages 9-31, March.
    7. Child, John & Hsieh, Linda H.Y., 2014. "Decision mode, information and network attachment in the internationalization of SMEs: A configurational and contingency analysis," Journal of World Business, Elsevier, vol. 49(4), pages 598-610.
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    Cited by:

    1. Fonfara Krzysztof & Hauke-Lopes Aleksandra & Soniewicki Marcin, 2021. "Does Psychic Distance Still Matter? Empirical Evidence from Poland," Journal of Management and Business Administration. Central Europe, Sciendo, vol. 29(4), pages 32-56, December.

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    More about this item

    Keywords

    Uppsala model; risk perception; psychic distance; SMEs; internationalisation;
    All these keywords.

    JEL classification:

    • F19 - International Economics - - Trade - - - Other
    • M16 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - International Business Administration

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