Internationalization Definitions And Processes

The definition of internationalization is written differently in various academic papers. However, this research has chosen some that are relevant to its target that is to discover the best way for a multinational firm to invest in Nigerian pharmaceutical industry. Michael and Iuka (2005) defined internationalization as “the process of transfer of a company’s goods and services to consumers or users in more than one nation”. Daniels et al (2001) distinguished between domestic and international firms in that “there are differences in environment, company organization and strategies in the market”.

Many researchers view internationalization as a process.

Cavusgil (2000) projects internationalization as a learning process. According to him internationalization prompts the management to either learn through personal experience while the process is taking place or through formal learning process where the management hires professionals to train them on various aspects. Piercy (1999), on the other hand defines the term as to describe the outward movement or international operations in individual firms or even large conglomerates.

John (2005) defined the term as “the process of increasing involvement in international operations”.

Get quality help now
KarrieWrites
KarrieWrites
checked Verified writer

Proficient in: Communication

star star star star 5 (339)

“ KarrieWrites did such a phenomenal job on this assignment! He completed it prior to its deadline and was thorough and informative. ”

avatar avatar avatar
+84 relevant experts are online
Hire writer

Michael and Ilkka (2005) defined the term as “a continuous process of choice between policies which differ marginally from the status quo”. Lindquist (1991) has studied the process of internationalization in three dimensions, i. e. , speed of foreign entry, pattern of foreign market selection and choice of foreign entry form. According to this, the speed of entry concerns: The time lag between subsequent entries;

The pattern of foreign market selection refers to the sequence of markets entered and penetrated by the firm; The choice of entry refers to the organisation form used by the firm.

Get to Know The Price Estimate For Your Paper
Topic
Number of pages
Email Invalid email

By clicking “Check Writers’ Offers”, you agree to our terms of service and privacy policy. We’ll occasionally send you promo and account related email

"You must agree to out terms of services and privacy policy"
Write my paper

You won’t be charged yet!

Douglas and Craig (1995) identified three phases in the process of internationalization of firms or the globalization of markets: Initial market entry into a foreign market Expansion of the market either locally or nationally Rationalization of the business on a global basis The process of internationalization is viewed as founded on two major concepts, the psychic distance and the increased experiential knowledge of a foreign market.

These concepts can be used to explain how companies commit resources to international market over a period of time (Leblanc, 1994, cited in Anderson et al, 1998). Internationalization can also be viewed as a networked process which focuses on the firm’s position in a foreign market underpinned by the relationships of various degrees of importance. Thus this perspective puts the market and the relationships of the firm into focus rather than concentrating only on international development (Ohmae, 1995).

In summary, the internationalization process is a process of business expansion based on experience and learning about foreign markets, cultures, and institutions. However, apart from learning about the foreign market internationalization is also learning about the internal resources and capabilities of the firm. Hence, internationalization can also be viewed as a set of connected learning process (Dudley, Martens, 1993 cited in Anderson V. et al, 1998). A more recent research conducted by Anderson V.et al (1998) identified the key problematic areas and the learning implications in the internationalization process.

When the data collected during the research was analyzed subsequently, a model was made which divided internationalization into various stages and linked them to the problems faced by the company and the consequent learning gained after the issues were sorted out. Based on the data, internationalization was divided into five stages or levels which have been described in detail as shown in table 2. 1 below.

Updated: Feb 22, 2021
Cite this page

Internationalization Definitions And Processes. (2020, Jun 02). Retrieved from https://studymoose.com/internationalization-definitions-and-processes-essay

Internationalization Definitions And Processes essay
Live chat  with support 24/7

👋 Hi! I’m your smart assistant Amy!

Don’t know where to start? Type your requirements and I’ll connect you to an academic expert within 3 minutes.

get help with your assignment