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International Network Extension Processes to Institutionally Different Markets:: Entry Nodes and Processes of Exporting SMEs
Linnaeus University, Faculty of Business, Economics and Design, Linnaeus School of Business and Economics. (Linnaeus Baltic Business Research Center)ORCID iD: 0000-0003-4925-8937
Linnaeus University, Faculty of Business, Economics and Design, Linnaeus School of Business and Economics. (Linnaeus Baltic Business Research Center)
(English)Manuscript (preprint) (Other academic)
Abstract [en]

This article is about how SMEs reduce their liability of network outsidership in the process of establishing a network insider position in foreign business networks. By examining how SMEs establish insidership positions in institutionally different business networks, the authors contributes to the network approach to firm internationalization. From a detailed longitudinal and retrospective case study of four SMEs from mature market entering emerging country markets and four SMEs from such immature markets entering mature markets, the authors develop propositions based on intra-group and inter-group analysis. The propositions concern how the exporter initiates and develops relationships when plugging into the foreign network (the entry node), and how the firm reaches an insider position in this network (the entry process). Three distinct network types are identified along this entry process: the exposure network, the formation network and the sustenance network.

Keyword [en]
internationalization processes, SMEs, liability of outsidership, emerging and mature markets, network extension, entry node, entry process
National Category
Business Administration
Research subject
Economy, Business administration
Identifiers
URN: urn:nbn:se:lnu:diva-11801OAI: oai:DiVA.org:lnu-11801DiVA: diva2:418259
Available from: 2011-05-20 Created: 2011-05-20 Last updated: 2017-02-17Bibliographically approved
In thesis
1. Establishment of Insidership Positions in Institutionally Distant Business Networks
Open this publication in new window or tab >>Establishment of Insidership Positions in Institutionally Distant Business Networks
2011 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

Since the opening of formerly closed markets in Eastern Europe and China in the early 1990s, numerous firms have sought to capture the growth opportunities prevailing in the virgin but institutionally distant business networks in these countries. I claim that the entry process into an institutionally distant business network has been realised when the entering firm has reached an insidership position in the network. To advance this idea, the thesis introduces the overlooked medium-sized multinational exporter (MME) and answers the following overarching research questions: (I) how do MMEs establish insidership positions in institutionally distant business networks, and (II) what critical abilities are developed by MMEs in the process of entering an institutionally distant business network? To answer these questions, qualitative and quantitative methods have sequentially been mixed to first give an in-depth understanding of the empirical field, and second to verify and generalise some of the most central tentative findings. Empirically, the study reports from a case study of eight firms in the Baltic Sea Region and from an on-site survey of 203 Swedish firms with experience of entries in Eastern Europe and/or China. Five individual essays are presented—all designed to reflect different aspects of the institutionally distant network entry process. The findings are condensed in the cover of the thesis, where it is claimed that an insidership position is reached through three main phases: the Scouting phase, the Qualifying phase and the Shielding phase. Furthermore, it is found that that the most critical abilities developed through the institutionally distant network entry process is local experience-based knowledge of high specificity. It is shown that previous experiences, generated in different business networks in mature markets, are not useful in the network entry process in immature markets. As a consequence, there is reason to believe that the entering firm needs to develop unlearning abilities to replace obsolete or misleading experience.

Place, publisher, year, edition, pages
Växjö, Kalmar: Linnaeus University Press, 2011. 116 p.
Series
Linnaeus University Dissertations, 52/2011
Keyword
internationalisation process, entry process, network insidership, emerging markets, institutional distance, business networks, liability of outsidership, liability of foreignness, SME, export
National Category
Business Administration
Research subject
Economy, Business administration
Identifiers
urn:nbn:se:lnu:diva-11799 (URN)978-91-86491-82-6 (ISBN)
Public defence
2011-06-14, Ny 200, Kalmar Nyckel, Gröndalsvägen 19, Kalmar, 10:00 (English)
Opponent
Supervisors
Available from: 2011-06-07 Created: 2011-05-20 Last updated: 2017-02-17Bibliographically approved

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CiteExportLink to record
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Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
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  • nn-NB
  • sv-SE
  • Other locale
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Output format
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