Gemser: exploring internationalization process of SE

9 important questions on Gemser: exploring internationalization process of SE

Internationalization path of firms in the sample is consistent with the logic of the models

  • Both software as mechanical firms show increasing commitment and involvement
  • but software firms internationalize much earlier, they are more opportunity seeking and offensive

Gemser measures degree of internationalizastion of sampled firms by an constructed IP profile, this consists of 5 dimensions

  • attitude of firms towards internationalization activities (defensive or offensive)
  • foreign entry model (low risk or high risk)
  • number of entry modes (ranges from 1 to many)
  • number of world regions covered by firm's internationalization efforts
  • market similarity (quite to very similar)

In internationalization process, there are 3 models used

  • Uppsala model
  • Transaction cost economics
  • network approach
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Gemser argues that an SE has two options of how they want to internationalize

  • go in alone:  by direct exporting and/or creating fully owned foreign subsidiaries
  • cooperative strategy: allying with partners up, down or at same level of value chain

Results when we group firms based on size

  • SE score higher on 3 IP dimensions (internationalization attitude, numbers of regions covered and market similarity)
  • Explained by most SE are software, that have more offensive attitude
 
al met al, 11 uit 12 firms enter geographical or cultural close markets in initial stage. This collaborates with Uppsala model.

Difference of new and old economy in nature of their internationalization actions

  • New: follow internationalization path of balanced exploitive and explorative
  • Old: were confronted with stable environments, so predominantly explorative nature

Cooperative strategy requires cooperative relationships among firms, like

  • International Strategic Alliances (ISA): a cooperative relationship with a partner aimed at development of production in foreign market
  • Joint Venture: equity sharing
  • NESA: non equity strategic alliance
  • ESA: equity stragegic alliance

Results when we group firms based on age

  • young firms score lower on all IP dimensions
  • Youngest cover less regions and more similar markets then older
  • Collaborate with Uppsala theory

Two basic internationalization strategies for SE

  • cooperative: give up their autonomy, to corporate in order to facilitate internationalization.
  • autonomous: acts in independent way, typical for LE for a long time

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