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From innovation to internationalisation: the product cycle model

In: The Development of International Business

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Abstract

Presents Vernon’s product cycle model as a ‘stand-alone’ contribution, offered before systematic analysis of IB had really commenced, which in retrospect anticipates key concepts that were later formalised. These include the origins of OAs (the innovation stage); initial internationalisation in an essentially Market Seeking (MS) mode, reflecting a particular (‘negative’) type of location advantage (LA); the move to Efficiency Seeking (ES) production in intra-group supply networks (‘positive’ LAs of host countries – that is, cost-competitive inputs). Also suggests that Vernon’s work exemplifies a key theme of the book. It starts from a theoretical issue in international economics (the relationship between trade and FDI) but approaches it through a practical concept from marketing (the life-cycle of a product).

Suggested Citation

  • ., 2017. "From innovation to internationalisation: the product cycle model," Chapters, in: The Development of International Business, chapter 3, pages 26-35, Edward Elgar Publishing.
    • Handle: RePEc:elg:eechap:17812_3
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    Cited by:

    1. Wu, Mian & (David) Liu, Yulong & Jasimuddin, Sajjad M. & (Justin) Zhang, Zuopeng, 2023. "Rethinking cross-border mobile payment ecosystems: A process study of mobile payment platform complementors, network effect holes and ecosystem modules," International Business Review, Elsevier, vol. 32(1).
    2. Bai, Tao & Liesch, Peter, 2022. "Organizational goals and resource allocation to overseas foreign direct investment," Journal of World Business, Elsevier, vol. 57(3).
    3. Schmidt, Heiko M. & Santamaria-Alvarez, Sandra Milena, 2022. "Routines in International Business: A semi-systematic review of the concept," Journal of International Management, Elsevier, vol. 28(2).
    4. Hyder Akmal S. & Sundström Agneta & Chowdhury Ehsanul H., 2022. "Knowledge of Network-Based Market Orientation for the Internationalization of Disruptive Innovation in SMEs," Journal of Management and Business Administration. Central Europe, Sciendo, vol. 30(3), pages 36-60, September.
    5. Pattnaik, Chinmay & Singh, Deeksha & Gaur, Ajai S., 2021. "Home country learning and international expansion of emerging market multinationals," Journal of International Management, Elsevier, vol. 27(3).

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