MVM’s Nonlinear Internationalization: A Case Study

This paper aims to contribute to the international business literature by discussing the nature of nonlinear internationalization based on a case study of an Italian firm MVM Meccanica Valle Metauro S.r.l. that had activities in Central and Eastern Europe and other countries and identifying causes of nonlinearities. It shows that nonlinear internationalization may be caused by different internal and external factors and actors; that it can occur once or several times, that foreign market exit may be temporary (followed by re-entry) and permanent and that de-internationalization does not always mean a failure for the firm

Acceleration and Deceleration in the Internationalization Process of the Firm

By adopting a processual and dynamic view on internationalization, we develop the concepts of acceleration and deceleration, providing analytical tools to enhance our understanding of the non-linearity and multidimensionality of internationalization. We argue that acceleration and deceleration are embedded in the internationalization process and are a consequence of the firm’s capability to absorb and integrate acquired knowledge, and to find and exploit opportunities. In addition, we advance the idea that changes in speed are further influenced by how the firm integrates and coordinates the resources it has deployed within and across various internationalization dimensions. Thus, it emerges that the overall evolution of commitment to internationalization is more complex than received theories tend to present; therefore, empirical studies should aim to include a wide set of international activities and processes embedded in time

Once bitten, not necessarily shy? Determinants of foreign market re-entry commitment strategies

We investigate foreign market re-entry commitment strategies, namely the changes in the modes of operation (commitment) undertaken by multinational enterprises (MNEs) as they return to foreign markets from which they had previously exited. We combine organisational learning theory with the institutional change literature to examine the antecedents of re-entry commitment strategies. From an analysis of 1,020 re-entry events between 1980 and 2016, we find that operation mode prior to exit is a strong predictor of subsequent re-entry mode. Contrary to the predictions of learning theory, we did not find support for the effect of experience accumulated during the initial market endeavour on the re-entry commitment strategies of MNEs. In turn, exit motives significantly impact on the re-entrants' decision to re-enter via a different mode of operation, by either increasing or decreasing their commitment to the market. We show that re-entrants do not replicate unsuccessful operation mode strategies if they had previously underperformed in the market. When favourable host institutional changes occur during the time-out period re-entrants tend to increase commitment in the host market irrespective of the degree of prior experience accumulated in the market

Examining the generalizability of research findings from archival data

This initiative examined systematically the extent to which a large set of archival research findings generalizes across contexts. We repeated the key analyses for 29 original strategic management effects in the same context (direct reproduction) as well as in 52 novel time periods and geographies; 45% of the reproductions returned results matching the original reports together with 55% of tests in different spans of years and 40% of tests in novel geographies. Some original findings were associated with multiple new tests. Reproducibility was the best predictor of generalizability-for the findings that proved directly reproducible, 84% emerged in other available time periods and 57% emerged in other geographies. Overall, only limited empirical evidence emerged for context sensitivity. In a forecasting survey, independent scientists were able to anticipate which effects would find support in tests in new samples

International Business as disciplinary tautology: an ontological perspective

The identity, legitimacy, and sustainability of international business (IB) as a research field are at stake. IB is being overtaken by the evolution of industries and technology, and critical voices challenge its distinctiveness and value. We identify IB’s ambiguous conceptual space, articulate the roots of the problem, and suggest a perspective for re-legitimizing the discipline. Specifically, we contend that redrawing legitimate knowledge boundaries for IB requires an ontological shift. In this respect, we promote a focus on the processual constitution of international entities across time and a reconceptualization of IB as the amalgamation of local and international forces. The perspective we advocate aims to counterbalance the disciplinary tautology suffered by current IB conceptualizations and to open up the discussion on boundary identification in the field

Examining the generalizability of research findings from archival data

This initiative examined systematically the extent to which a large set of archival research findings generalizes across contexts. We repeated the key analyses for 29 original strategic management effects in the same context (direct reproduction) as well as in 52 novel time periods and geographies; 45% of the reproductions returned results matching the original reports together with 55% of tests in different spans of years and 40% of tests in novel geographies. Some original findings were associated with multiple new tests. Reproducibility was the best predictor of generalizability—for the findings that proved directly reproducible, 84% emerged in other available time periods and 57% emerged in other geographies. Overall, only limited empirical evidence emerged for context sensitivity. In a forecasting survey, independent scientists were able to anticipate which effects would find support in tests in new samples

A conceptual study of immigrant born globals and their multinationalization process

We build on the growing interest in born globals by examining the multinational growth pattern of immigrant new ventures, as opposed to that of native entrepreneurial new ventures. The multinational growth pattern of native new ventures, especially those originating from small home markets and/or lacking international market experience or networks, has been explained in the international business (IB) research using the Uppsala stage model. The Uppsala model postulates that the new ventures build their international absorptive capacity for discovering and accessing external knowledge by focusing on the psychically proximate nations and using low committed entry and growth modes, and then taking calculated risks to escalate their distance and commitment in a linear mode to reap positive rewards. We draw on the immigrant entrepreneur, social network, and related literatures to postulate that new immigrant ventures are more likely to be able to enter host markets that are psychically distant from their home markets and using higher committed entry and growth modes. Moreover, their founders are more likely to be cognitively and emotionally comfortable in pursuing non-linear approaches to sequential market entry and commitment mode choices. We discuss the implications of the varying balance of home vs. host market forces on the multinationalization process of alternative types of firms discussed in the literature

The role of wine tourism in internationalization of Italian SMEs

Purpose: The paper aims to examine the influence of international tourism on the internationalization process of Italian SMEs producing Bianchello del Metauro wine. Methodology: Eight in-depth interviews with owners of SMEs producing this wine were conducted for this case study paper. Findings: In most cases, international tourism permitted wine SMEs to create a relationship/network with tourists’ foreign markets and expand internationally. In several cases, both wine SMEs and international visitors identified business opportunities, and this led to collaboration for exporting wine. In other cases, international tourists suggested the firm to contact an importer or decided to contact an importer themselves for getting access to Bianchello del Metauro in their country of origin. Research limitations: As this paper was based on eight cases, this limits the generalizability of the results. Practical implications: To expand their export geography, wine SMEs should pay more attention to attracting tourists and creating relationships/networks with them. Originality: Although several scholars have examined a possible relation between international tourism flow and international trade and confirmed that wine tourism creates marketing opportunities to sell products, most have carried out quantitative research. Therefore, there is a lack of exploratory and qualitative research. Moreover, it is also necessary to study why some wine producers internationalize suddenly after being local-market oriented for decades and why they experience difficulties in internationalization as such firms have received less attention in internationalization literature. This study contributed towards closing these gaps

Serial nonlinear internationalization in practice: A case study

International business scholars still pay the most attention to two firm types: (1) gradual/step-by-step/Uppsala type internationalizers and (2) international new ventures/born globals. Serial nonlinear internationalizers (SNIs) – firms with several subsequent exits and re-entries or considerable foreign involvement fluctuations – have received almost no attention. This exploratory study aims to contribute to the emerging serial nonlinear internationalization literature by (1) discussing the nature of an Italian machinery producer's serial nonlinear internationalization, (2) explaining why it internationalized nonlinearly and (3) developing research implications. It concludes that despite having had a year or more without export activities in 29 countries (in eight of them twice or more) and activities only in seven countries in 2011, this firm has been relatively successful. Thus, de-internationalization is not automatically a sign of failure. Moreover, subsequent de- and re-internationalizations are normal for other firms besides project businesses, especially if their markets are small and exit/re-entry costs low