Skip to main content

Becoming a True Born Global without Any Experiential Market Knowledge: Three Chinese Cases

  • Chapter
Internationalization of Emerging Economies and Firms
  • 683 Accesses

Abstract

Internationalization processes have been very actively researched for about the last five decades. During this period, many views about companies’ foreign involvement have emerged. Some of them, including the Uppsala (U) model, the innovation-related internationalization (I) models and the Finnish (Helsinki) model, emphasize the importance of experiential knowledge for internationalization. They state that the lack of knowledge forces firms to internationalize slowly by entering culturally and geographically closest countries and by using initially simpler foreign operation modes such as direct and indirect exporting. Only after acquiring the necessary experiential knowledge are they able to enter other countries and use more complicated entry/operation modes. Some other research streams, including the literature on international new ventures, born globals and other fast internationalizers and the network approach to internationalization, have shown that internationalization does not have to be that slow, as knowledge can be also acquired by other means rather than through experience. Consequently, some enterprises may start their internationalization from farther markets, even from other continents, without having any activities on its home continent. They may also use more advanced entry modes and skip the earlier stages of internationalization.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 84.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 109.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 109.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  • Axelsson, B. and Johanson, J. (1992). Foreign market entry: the textbook versus the network view, in B. Axelsson and G. Easton (eds), Industrial Networks: A New View of Reality. London: Routledge, pp. 218–34.

    Google Scholar 

  • Bell, J. (1995). The internationalization of small computer software firms: a further challenge to ‘stage’ theories. European Journal of Marketing, 29 (8), 60–75.

    Article  Google Scholar 

  • Bengtsson, L. (2004). Explaining born globals: an organisational learning perspective on the internationalisation process. International Journal of Globalisation and Small Business, 1 (1), 28–41.

    Article  Google Scholar 

  • Björkman, I. and Eklund, M. (1996). The sequence of operational modes used by Finnish investors in Germany. Journal of International Marketing, 4 (1), 33–55.

    Google Scholar 

  • Blankenburg, D. (2001). A network approach to foreign market entry, in K. Möller and D.T. Wilson (eds), Business Marketing: An Interaction and Network Perspective, 2nd edn. London: Kluwer Academic, pp. 375–405.

    Google Scholar 

  • Blomström, M. (1990). Transnational Corporations and Manufacturing Exports from Developing Countries. New York: United Nations.

    Google Scholar 

  • Brennan, L. and Garvey, D. (2009). The role of knowledge in internationalization, Research in International Business and Finance, 23 (2), 120–33.

    Article  Google Scholar 

  • Casillas, J.C., Moreno, A.M., Acedo, F.J., Gallego, M.A. and Ramos, E. (2009). An integrative model of the role of knowledge in the internationalization process. Journal of World Business, 44 (3), 311–22.

    Article  Google Scholar 

  • Cavusgil, S.T. (1980). On the internationalization process of firms. European Research, 8 (6), 273–81.

    Google Scholar 

  • Chetty, S. (1996). The case study method for research in small- and medium-sized firms. International Small Business Journal, 15 (1), 73–85.

    Article  Google Scholar 

  • Chetty, S. (1999). Dimensions of internationalisation of manufacturing firms in the apparel industry. European Journal of Marketing, 33 (1/2), 121–42.

    Article  Google Scholar 

  • Crick, D. and Spence, M. (2005). The internationalisation of ‘high performing’ UK high-tech SMEs: a study of planned and unplanned strategies. International Business Review, 14 (2), 167–85.

    Article  Google Scholar 

  • Czinkota, M.R. (1982). Export Development Strategies: US Promotion Policies. London: Praeger.

    Google Scholar 

  • Downes, M. and Thomas, A.S. (1999). Managing overseas assignments to build organizational knowledge. Human Resource Planning Journal, 22 (4), 33–48.

    Google Scholar 

  • Dunning, J.H. (1994). Re-evaluating the benefits of foreign direct investment. Transnational Corporations, 3 (1), 23–51.

    Google Scholar 

  • Eisenhardt, K.M. (1989). Building theories from case study research. Academy of Management Review, 14 (4), 532–50.

    Google Scholar 

  • Eriksson, K., Johanson, J., Majkgård, A. and Sharma, D.D. (1997). Experiential knowledge and cost in the internationalization process. Journal of International Business Studies, 28 (2), 337–60.

    Article  Google Scholar 

  • Eriksson, K., Johanson, J., Majkgård, A. and Sharma, D.D. (1998). Time and experience in the internationalization process, in A. Majkgård (ed.), Experiential Knowledge in the Internationalization Process of Service Firms. Uppsala: Department of Business Studies, pp. 185–217.

    Google Scholar 

  • Eriksson, K., Majkgård, A. and Sharma, D.D. (2000). Path dependence and knowledge development in the internationalization process. Management International Review, 40 (4), 307–28.

    Google Scholar 

  • Fina, E. and Rugman, A.M. (1996). A test of internalization theory and internationalization theory: the Upjohn company. Management International Review, 36 (3), 199–213.

    Google Scholar 

  • Ford, D. (1998). Two decades of interaction, relationships and networks, in P. Naudé and P. Turnbull (eds), Network Dynamics in International Marketing. Oxford: Elsevier, pp. 3–15.

    Google Scholar 

  • Freeman, S., Hutchings, K., Lazaris, M. and Zyngier, S. (2010). A model of rapid knowledge development: the smaller born-global firm. International Business Review, 19 (1), 70–84.

    Article  Google Scholar 

  • Gabrielsson, M., Sasi, V. and Darling, J. (2004). Finance strategies of rapidly-growing Finnish SMEs: born internationals and born globals. European Business Review, 16 (6), 590–604.

    Article  Google Scholar 

  • Gummesson, E. (2003). All research is interpretive. Journal of Business & Industrial Marketing, 18 (6–7), 482–92.

    Article  Google Scholar 

  • Hadley, R.D. and Wilson, H.I.M. (2003). The network model of internationalisation and experiential knowledge. International Business Review, 12 (6), 697–717.

    Article  Google Scholar 

  • Håkansson, H. and Snehota, I. (1992). Analysing business relationships, in H. Håkansson and I. Snehota (eds), Developing Relationships in Business Networks. London: Routledge, pp. 24–49.

    Google Scholar 

  • Hashai, N. and Almor, T. (2004). Gradually internationalizing ‘born global’ firms: an oxymoron? International Business Review, 13 (4), 465–83.

    Article  Google Scholar 

  • Hertz, S. (1996). The dynamics of international strategic alliances. International Studies of Management and Organization, 26 (2), 104–30.

    Google Scholar 

  • Johanson, J. and Johanson, M. (1999). Developing business in Eastern European networks, in J.-Å. Törnroos and J. Nieminen (eds), Business Entry in Eastern Europe: A Network and Learning Approach with Case Studies. Helsinki: Kikimora Publications, pp. 46–71.

    Google Scholar 

  • Johanson, J. and Mattsson, L.-G. (1988). Internationalization in industrial systems: a network approach, in N. Hood and J.-E. Vahlne (eds), Strategies in Global Competition. London: Croom Helm, pp. 287–314.

    Google Scholar 

  • Johanson, J. and Vahlne, J.-E. (1977). The internationalization process of the firm: a model of knowledge development and increasing foreign market commitments. Journal of International Business Studies, 8 (1), 23–32.

    Article  Google Scholar 

  • Johanson, J. and Vahlne, J.-E. (1990). The mechanism of internationalization. International Marketing Review, 7 (4), 11–24.

    Article  Google Scholar 

  • Johanson, J. and Wiedersheim-Paul, F. (1975). The internationalization of the firm: four Swedish Cases. Journal of Management Studies, 12 (3), 305–22.

    Article  Google Scholar 

  • Karlsen, T., Silseth, P.R., Benito, G.R.G. and Welch, L.S. (2003). Knowledge, internationalization of the firm, and inward-outward connections. Industrial Marketing Management, 32 (5), 385–96.

    Article  Google Scholar 

  • Korhonen, H. (1999). Inward–outward internationalization of small and medium enterprises. PhD thesis, Helsinki School of Economics and Business Administration, Finland.

    Google Scholar 

  • Kuivalainen, O., Sundqvist, S. and Servais, P. (2007). Firms’ degree of born-globalness, international entrepreneurial orientation and export performance. Journal of World Business, 42 (3), 253–67.

    Article  Google Scholar 

  • Lauter, G.P. and Rehman, S.S. (1999). Central and East European trade orientation and FDI flows: preparation for EU membership. International Trade Journal, 13 (1), 35–52.

    Article  Google Scholar 

  • Lee, T.W. (1999). Using Qualitative Methods in Organizational Research. Thousand Oaks, CA: Sage.

    Google Scholar 

  • Leonidou, L.C. and Katsikeas, C.S. (1996). The export development process: an integrative review of empirical models. Journal of International Business Studies, 27 (3), 517–51.

    Article  Google Scholar 

  • Ling-yee, L. (2004). An examination of the foreign market knowledge of exporting firms based in the People’s Republic of China: its determinants and effect on export intensity. Industrial Marketing Management, 33 (7), 561–72.

    Article  Google Scholar 

  • Luostarinen, R. (1989). Internationalization of the Firm: An Empirical Study of the Internationalization of Firms with Small and Open Domestic Markets, with Special Emphasis on Lateral Rigidity as a Behavioral Characteristic in Strategic Decision-Making. Helsinki: Kyriiri OY.

    Google Scholar 

  • Luostarinen, R. (1994). Research for Action: Internationalization of Finnish Firms and their Response to Global Challenges. Finland: UNU Wider.

    Google Scholar 

  • Luostarinen, R. and Welch, L. (1997). International Business Operations. Helsinki: Kyriiri OY.

    Google Scholar 

  • Madsen, T.K. and Servais, P. (1997). The internationalisation of born globals: an evolutionary process? International Business Review, 6 (6), 561–83.

    Article  Google Scholar 

  • McDougall, P.P., Oviatt, B.M. and Shrader, R.C. (2003). A comparison of international and domestic new ventures. Journal of International Entrepreneurship, 1 (1), 59–82.

    Article  Google Scholar 

  • McLoughlin, D. and Horan, C. (2000). Business marketing: perspectives from the markets-as-networks approach. Industrial Marketing Management, 29 (4), 285–92.

    Article  Google Scholar 

  • Mitra, D. and Golder, P.N. (2002). Whose culture matters? Near-market knowledge and its impact on foreign market entry timing. Journal of Marketing Research, 39 (3), 350–65.

    Article  Google Scholar 

  • Morgan, R.E. and Katsikeas, C.S. (1997). Theories of international trade, foreign direct investment and firm internationalization: a critique. Management Decision, 35 (1/2), 68–78.

    Article  Google Scholar 

  • Morgan, N.A., Zou, S., Vorhies, D.W. and Katsikeas, C.S. (2003). Experiential and informational knowledge, architectural marketing capabilities, and the adaptive performance of export ventures: a cross-national study. Decision Sciences, 34 (2), 287–321.

    Article  Google Scholar 

  • Oviatt, B.M. and McDougall, P.P. (1994). Toward a theory of international new ventures. Journal of International Business Studies, 25 (1), 45–64.

    Article  Google Scholar 

  • Pajunen, K. and Maunula, M. (2008). Internationalisation: a co-evolutionary perspective. Scandinavian Journal of Management, 24 (3), 247–58.

    Article  Google Scholar 

  • Pécoud, A. (2002). Weltoffenheit schafft jobs: Turkish entrepreneurship and multiculturalism in Berlin. International Journal of Urban and Regional Research, 26 (3), 494–507.

    Article  Google Scholar 

  • Pedersen, T. and Petersen, B. (2004). Learning about foreign markets: are entrant firms exposed to a ‘shock effect’? Journal of International Marketing, 12 (1), 103–23.

    Article  Google Scholar 

  • Piekkari, R., Welch, C. and Paavilainen, E. (2009). The case study as disciplinary convention: evidence from international business journals. Organizational Research Methods, 12 (3), 567–89.

    Article  Google Scholar 

  • Reid, S.D. (1983). Firm internationalization, transaction costs, and strategic behaviour. International Marketing Review, 1 (2), 45–56.

    Article  Google Scholar 

  • Rogers, E.M. (1962). Diffusion of Innovations. New York, NY: Free Press.

    Google Scholar 

  • Saarenketo, S., Puumalainen, K., Kuivalainen, O. and Kyläheiko, K. (2004). Dynamic knowledge-related learning processes in internationalizing high-tech SMEs. International Journal of Production Economics, 89 (3), 363–78.

    Article  Google Scholar 

  • Seringhaus, F.H.R. and Mayer, C.S. (1988). Different approaches to foreign market entry between users and non-users of trade missions. European Journal of Marketing, 22 (10), 7–18.

    Article  Google Scholar 

  • Slater, S.F. and Narver, J.C. (1995). Market orientation and the learning organization. Journal of Marketing, 59 (3), 63–74.

    Article  Google Scholar 

  • Spence, M. and Crick, D. (2009). An exploratory study of Canadian international new venture firms’ development in overseas markets. Qualitative Market Research: An International Journal, 12 (2), 208–33.

    Article  Google Scholar 

  • Stuart, I., McCutcheon, D., Handfield, R., McLachlin, R. and Samson, D. (2002). Effective case research in operations management: a process perspective. Journal of Operations Management, 20 (5), 419–33.

    Article  Google Scholar 

  • Tsoukas, H. (1989). The validity of idiographic research explanations. Academy of Management Review, 14 (4), 551–61.

    Google Scholar 

  • Vahlne, J.-E. and Johanson, J. (2002). New technology, new companies, new business environments and new internationalisation processes? in V. Havila, M. Forsgren and H. Håkansson (eds), Critical Perspectives of Internationalisation. Amsterdam: Pergamon, pp. 209–27.

    Google Scholar 

  • Voss, C., Tsikriktsis, N. and Frohlich, M. (2002). Case research in operations management. International Journal of Operations and Production Management, 22 (2), 195–219.

    Article  Google Scholar 

  • Weerawardena, J., Sullivan Mort, G., Liesch, P.W. and Knight, G. (2007). Conceptualizing accelerated internationalization in the born global firm: a dynamic capabilities perspective. Journal of World Business, 42 (3), 294–306.

    Article  Google Scholar 

  • Welch, L.S. and Luostarinen, R. (1988). Internationalization: evolution of a concept. Journal of General Management, 14 (2), 34–57.

    Google Scholar 

  • Wiedersheim-Paul, F., Olson, H.C. and Welch, L. S. (1978). Pre-export activity: the first step in internationalization. Journal of International Business Studies, 9 (1), 47–58.

    Article  Google Scholar 

  • Wolff, J.A. and Pett, T.L. (2000). Internationalization of small firms: an examination of export competitive patterns, firm size, and export performance. Journal of Small Business Management, 38 (2), 34–47.

    Google Scholar 

  • Yin, R.K. (1994). Case Study Research Design and Methods. London: Sage.

    Google Scholar 

  • Zucchella, S., Palamara, G. and Denicolai, S. (2007). The drivers of the early internationalization of the firm. Journal of World Business, 42 (3), 268–80.

    Article  Google Scholar 

Download references

Authors

Editor information

Editors and Affiliations

Copyright information

© 2012 Tiia Vissak and Xiaotian Zhang

About this chapter

Cite this chapter

Vissak, T., Zhang, X. (2012). Becoming a True Born Global without Any Experiential Market Knowledge: Three Chinese Cases. In: Marinov, M., Marinova, S. (eds) Internationalization of Emerging Economies and Firms. Palgrave Macmillan, London. https://doi.org/10.1057/9780230363663_7

Download citation

Publish with us

Policies and ethics