Internalization can be explained generally be described as the designing an of a product or a service such that it will be able to meet the demand and needs of consumers in many different counties or they can adopt them without many difficulties. However, the term has different terms depending on the perspectives, firms approach and how it was achieved. There are different articles that have shone a light in the issue of internalization. The first tried to explain internationalization by using perspective. Johansen and Vahnle (1977) offer an alternative definition to the definition. The article critical aspect in helping a reader understand the topic of internalization is the use of gradual acquisition, applying the information from international markets, integration and enhancing commitments to the foreign languages as the main contributors to internationalization. The approach by the article allows a reader to understand the basis of internalization. On the other hand, Oviatt and McDougall (1994) have a theoretical framework that explains the occurrences of the internationalization by use of four elements. The approach is ideal as it is comprehensive and allow the reader to understand internationalization by observing the four factors. Vanessa et al., (2006) allow the reader to understand the internationalization by understanding how the firms can be both socially responsible or irresponsible while trying to expand to the international market. Teece (2014) finally, explains internationalization from the perspective of technology transfers and capabilities while using the capabilities theories that can be used widely.
There are also articles that explain the internationalization using the internationalization of large firms. Guillen et al., (2009) explains how the multinationals came about by imitating the already established countries and through innovation. On the other hand, Capar and Kotabe (2003) explain internationalization as necessity and approach that arose from the needs of the companies need to perform better to expand their markets. Kotabe et al, (2207) examine the knowledge flow and how the sharing ultimately leads to the internationalization. The articles in this have been ideal as they have outlined exactly how multinationals came about thus offering a practical view of the internationalization.
The final approach is the one that internationalization from the perspective of the born global or the international venture. Bell et al., (2001) outline that internationalization may have arisen from the companies that were already domestically dominant without motivations to go multinational, but adopted dedicated internalization which picked up right away. On the other hand, Gabrielson et al., (2008) expound on the bell born again theory by outlining the three factors; introductory, growth and resource which have a direct impact on the internationalization of the company. Finally, Monaghan and Tippmann (2018) outlined how small companies were able to internationalize within a short period of time and become multinational enterprises. These approaches clearly outline and help a reader understand how some specific company managed to grow into multinationals within a short time. They outline the factors that favored internationalization or promoted internationalization for the companies. From the information, one is able to understand internationalization from the basis of the factors that promote internationalization rapidly.
The first theme of the internationalization was the different perspectives of the internationalization the internationalization of the large firms and then born-global or the international venture. The three themes are related in the manner that they both complement each other in the explanation of the internationalization.
Through the perspective, the authors are able to outline the process of how internationalization took place. Johansen and Vahlne (1977) outline that there was a gradual acquisition increased commitments and integration, while the counterpart Oviatt and McDougal (1994) outline the strong reliance on the alternative government structures, control over unique resources ad location advantage. Vanessa et al focuses on the aspects of the CSR from multinationals and finally, Teece (2014) outlines that different capabilities led to internationalization. Likewise, under the internationalization of large firms also outlines the factors that lead to internationalization. Only that they use specific multinationals. According to Guiles (2009) firms internationalized by foreign direct investment to exploit their firm-specific advantages. The same argument that was outlined by Teece (2014) and Oviatt, who explained it from controlling a critical resource. Capri and Kotabe (2003) explain that the main reason for internationalization was to increase performance, which can also be because of control or critical resource or exploring an opportunity. Kotabe et al., (2007) used knowledge distribution which was a bit different. However, if one looks from the perspective of a shared resource it can still fit the profile. On the other hand, Bell et al., (2012) outline the factors that companies that internationalizes very quickly as soon as they are found. Additionally, Gabrielson et al (2008) and Monaghan and Tippmann (2018) also outline how the companies internationalize very quickly due to market advantage, information advantage or innovation or provision of a new product. With all these three subthemes, even though it’s easy to interpret the findings differently they all lead to the same results. They conclude that internationalization was caused by competition, exploitation of individual advantages, demand for products, innovation as a result of technology and changes in global economic and political environment. It will be possible to discover this only after reading the 12 articles in the three sub themes.
The articles three themes are both intertwined in explaining the internationalization and its causes from all possible angles. In that, the perspective used focused on the causes which were more of external causes. On the other hand, the internationalization firms focused on the advantages that they had as the firms and how they were going international for own their gain. After reading the articles from the three themes it is when we are able to clearly show the connection and understand comprehensively all history and all the factors that led to internationalization. While the perspective explains how people thought, the internationalization articles outline the way companies pushed for internationalization. Finally, the born-again articles show how some companies were enjoying a certain dominance and with an aggressive approach or exploitation of the unique advantages that they possessed, they were able to internationalize. Reading the articles from the three sub-themes creates a synergy that allows the reader to comprehensively understand internationalization from all angles. However, if one had read one theme they will be left with many unanswered questions which would have otherwise been answered had they read all the articles from the three sub-themes.
Johanson, J. & 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), pp.23-32.
Oviatt, B.M. & McDougall, P.P. (1994). Toward a Theory of International New Ventures.
Journal of International Business Studies, 25 (1): 45-64.
Vanessa, M. S., Jijun, G., & Bansal, P. 2006. Being Good While Being Bad: Social
Teece, D. J. 2014. A dynamic capabilities-based entrepreneurial theory of the multinational
enterprise. Journal of International Business Studies, 45(1): 8-37.
Internationalization of large firms
Guillen, M. F., & Garcia-Canal, E. 2009. The American Model of the Multinational Firm and
the “New” Multinationals From Emerging Economies. Academy of Management
Perspectives, 23(2): 23-35.
Capar, N., & Kotabe, M. 2003. The Relationship between International Diversification and
Performance in Service Firms. Journal of International Business Studies, 34(4): 345-
Kotabe, M., Denise, D.-H., Ronaldo, P., & Harsh, A. M. 2007. Determinants of Cross-
National Knowledge Transfer and Its Effect on Firm Innovation. Journal of
Bell, J., McNaughton, R. & Young, S., 2001. “Born-Again Global Firms”: An Extension to
the Born Global Phenomenon. Journal of International Management, 7(3), pp.173-189.
Gabrielsson, M. et al., 2008. Born globals: Propositions to help advance the theory.
International Business Review, 17, pp.385-401
Monaghan, S., & Tippmann, E. 2018. Becoming a multinational enterprise: Using industry
recipes to achieve rapid multinationalization. Journal of International Business Studies,