DOES THE UPPSALA INTERNATIONALIZATION MODEL EXPLAIN THE INTERNATIONALIZATION PROCESS OF PROFESSIONAL BUSINESS SERVICE FIRMS?
AbstractThe aim of this contribution is to verify if the Uppsala Model with later variations introduced by the authors is the right framework to explain internationalization process of Professional Business Service Firms (PBSFs). The focus is placed on the entry of one type of PBSFs, namely advertising agencies into the Chinese market. The example is based on a case study. This paper deliberates about identified factors in the internationalization process of advertising agencies that fit to the Uppsala model and about factors that deviate from it. Several stages are identified in the entrance of advertising agencies into the Chinese market. These are as follows: initial stage - external agent, participation stage - representative office, establishment stage - joint venture, network expansion stage – branch offices and other joint ventures. The presence of stages suggests that the Uppsala model may prove useful in explanation of foreign entry strategies in PBSFs in general. In addition to that, support is also found for market entry due to networking activities. Client following was identified as most common entry mode in the studied group of PBSFs.
Abbott, A. (1988). The system of professions: An essay on the division of expert labor. Chicago, IL: University of Chicago Press.
Aharoni, Y. (1966). The foreign Investment Decision Process. Boston, MA: Harvard University Press.
Andersen, O. (1997). Internationalization and market entry mode: A review of theories and concepts. Management International Review, 37 (2), 27-42.
Cheung, F. & Leung, W. F. (2007). International expansion of transnational advertising agencies in China: An assessment of the stages theory approach. International Business Review, 16 (2), 252-268. http://dx.doi.org/10.1016/j.ibusrev.2007.02.003
Cyert, R.D. & March, J.G. (1963). The Behavioral Theory of the Firm. Englewood Cliffs, NJ: Prentice-Hall.
Ericsson, K., Johanson, J., Majkgard, A. & Sharma, D.D. (2000). Effect of Variation on Knowledge Accumulation in Internationalization Process. International Studies of Management & Organization, 30 (1), 26-44.
Fosstenløkken, S.M., Løwendahl, B.R. & Revang, Ø. (2003). Knowledge development through client interaction: A comparative study. Organization Studies, 24 (6), 859-879. http://dx.doi.org/10.1177/0170840603024006003
Johanson, J. & Mattsson, L.G. (1988). Internationalization in industrial systems – a network approach”, in Hood, N. and Vahlne, J.E. (Eds), Strategies in Global Competition, London: Croom Helm. PMCid:1009652
Johanson, J. & Vahlne, J. E. (1977). The internationalization Process of the Firm – A Model of Knowledge Development and Increasing Foreign Market Commitment. Journal of International Business Studies, 8 (1), 26-44. http://dx.doi.org/10.1057/palgrave.jibs.8490676
Johanson, J. & Vahlne, J. E. (1990). The mechanism of Internationalisation. International Marketing Review, 7 (4), 11-24. http://dx.doi.org/10.1108/02651339010137414
Johanson, J. & Vahlne, J. E. (2003). Business Relationship Learning and Commitment in the Internationalization Process. Journal of International Entrepreneurship, 1 (1), 81-101. http://dx.doi.org/10.1023/A:1023219207042
Johanson, J. & Wiedersheim, P. F. (1975). The internationalization of the Firm – Four Swedish Cases. Journal of Management Studies, 12 (3), 305-322. http://dx.doi.org/10.1111/j.1467-6486.1975.tb00514.x
Nooteboom, B. (2000). Learning and Innovation in Organizations and Economies. Oxford, England: Oxford University Press. PMid:11200364 PMCid:1781769
Penrose, E. T. (1959). A theory of the Growth of the Firm. Oxford, England: Basil Blackwell. PMCid:1931965
Penrose, E.T. (1959). A theory of the Growth of the Firm. Oxford, England: Basil Blackwell. PMCid:1931965
Reihlen, M. & Apel, A. B. (2007). Internationalization of professional service firms as learning – A constructivist approach. International Journal of Service Industry Management, 18 (2), 140-151. http://dx.doi.org/10.1108/09564230710737790
Von Nordenflycht, A. (2010). What is a professional service firm? Toward a theory and taxonomy of knowledge-intensive firms. Academy of Management Review, 35 (1), 155-174. http://dx.doi.org/10.5465/AMR.2010.45577926
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License (Creative Commons Attribution License 3.0 - CC BY 3.0) that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).
email@example.com, www.iseic.cz, ojs.journals.cz