De-Internationalization of SMEs

Author(s):  
Antonio Carrizo Moreira ◽  
Pedro Miguel Freitas da Silva ◽  
Jorge Mota ◽  
Hugo Oliveira Gadim

Existing literature has devoted high attention to the topic of internationalization. A common assumption is that companies progressively commit to international operations; however, with the increase of competition in international markets, there may be a backwards perspective towards international operations. In this chapter, the topic of de-internationalization is examined, and a case study of a Portuguese SME that de-internationalized conducted. The featured case highlights the drivers and the main challenges of internationalization, as well as the factors and the difficulties in a de-internationalization process. The chapter findings highlight the need to expand the existing research on the topics of de-internationalization and re-internationalization.

2012 ◽  
Vol 01 (08) ◽  
pp. 35-53
Author(s):  
Seerat Fatima ◽  
Sheraz Arif

The purpose of this study is to classify the networks according to functions they performed, especially scrutinize their structures. The research concentrates on the influence of these functional networks on the internationalization process of small and medium sized companies (SME) in developing countries. What are the different types of support being provided by network partners? What is the structure of the existing network? The research part is inductive, qualitative and based on case study. The study’s findings illustrate the subtleties of how various network partners interact with entrepreneurs to penetrate, integrate and extend their international markets. Networks can help entrepreneurs expose themselves to new opportunities, obtain knowledge, learn from experiences, and benefit from the synergistic effect of pooled resources. Another contribution of this paper is that it identifies structures of the functional networks, till date networks are classified on the basis of extent of support they provide, not on what support they provide, thus advancing the literature.


Author(s):  
António Carrizo Moreira ◽  
Pedro Miguel Freitas da Silva

The internationalization of firms is a growing important phenomenon in the Economy. Thus, to face the new competitive challenges of globalized markets, industrial small and medium-sized enterprises (SMEs) need to implement new organizational approaches to take on new challenges in international markets. Based on a case study, this chapter reviews the literature on internationalization theories. Drawing on the network-based approach and on the resource-based view of the firm, we examine how collaborative new product development processes played a fundamental role in the internationalization process of a SME using a relationship-based perspective. The featured case concerns to a successful ex-small technical textile firm that leveraged its competitive strategy, climbed up the value chain, and extended its international activities following a technology-based path.


Author(s):  
Liliana Sofia Pinto ◽  
Maria Manuel Ribeiro ◽  
António Carrizo Moreira

Internationalization involves an active behavior to compete in international markets. Several theories, as well as several entry modes, have been developed to explain why and how firms compete internationally. Nevertheless, the internationalization process is difficult to implement as it involves not only historical reasons, as well as traditional strategies that sometimes are usually not questioned by the firm. This chapter aims to depict a case study in which a firm is trying to deploy an opportunity-driven internationalization, shifting its traditional modus operandi. The firm is analyzed based on several theories, namely the Uppsala model, the network-based theory, the born globals and the born again globals, and it is possible to conclude that despite its more than 80 years of existence, neither of the four theories can be properly used to explain the firm's international behavior. Moreover, to embrace international challenges, the firm needs to reposition its traditional business behavior.


2019 ◽  
Vol 12 (4) ◽  
pp. 679
Author(s):  
Jefferson Marlon Monticelli ◽  
Silvio Luís de Vasconcellos ◽  
Ivan Lapuente Garrido

This study analyses the coopetition strategy adopted by wineries in Southern Brazil with the support of local formal institutions to promote their internationalization. A multiple case study with 21 interviews with wineries and formal institutions of the industry was carried out. We used the discourse analysis based on the following categories: industry characterization, national and international markets, internationalization process, and institutional environment. The interpretations regarding the Integrated Sectorial Project (ISP) Wines of Brasil are shown. Despite its relevance, not all those involved have joined the project, because it promotes the internationalization unevenly through the competitive advantage while enhancing the differences between the wineries.  The main contributions are expanding the knowledge about coopetition by understanding the role of formal institutions and promoting the international competitiveness of firms in the wine industry.


Author(s):  
António Carrizo Moreira ◽  
Mariana Ramos ◽  
Lisa Freitas Ferraz ◽  
Diogo Martins

Although companies seek to export in order to meet the growing importance of international markets, vis-à-vis domestic markets, this chapter presents a case study of a company founded by two former high school teachers who started a beverage company in 2015 and quickly reached an early internationalization. The company produces alcoholic beverages and has won international awards regarding the quality of its product, which has given it an important status and opened the door to a process of rapid internationalization. This will be used to explore the theory of entrepreneurship and how two potential entrepreneurs, with employment difficulties in teaching, began with a project that gave birth to a born global firm.


Author(s):  
António Moreira ◽  
Pedro Miguel Freitas da Silva

The internationalization of firms has reached levels never seen before. As a consequence and in order to face the new competitive challenges of globalized markets, industrial small and medium-sized enterprises must be able to adapt to new organizational approaches, to innovate and to further develop their networks. Based on a case study, this chapter reviews the literature on internationalization and networks and addresses a less researched topic of supplier-clients relationships in the value chain referring to the importance of the networks, resources and collaborative new product development on the internationalization process of firms. The case reports a successful ex-small technical textile company that leveraged its competitive strategy based on technology-based paths and is thriving in both domestic and international markets.


Author(s):  
Ana Vieira ◽  
Ema Fonseca ◽  
Inês Oliveira ◽  
Joana Lobo ◽  
António Carrizo Moreira

Based on the literature on the Uppsala model, born-again globals, non-linear internationalization model, and late market entry, this chapter aims to portray the history, changes, and adaptations of OMEGA's internationalization process. This transitioning firm manufactures furniture and wooden hockey sticks. This chapter identifies that OMEGA follows a non-linear internationalization process and late entry into international markets. The principal added value of the case study presented here is related to presenting OMEGA's non-linear internationalization process, which displays reactive internationalization behavior in response to a saturated domestic market, typical of the Uppsala model, and which subsequently ends in a rapid internationalization process, as a born-again global, as a result of a change in its top management. During its internationalization process, OMEGA changed its internationalization pace, modes of entry, and export actions by adapting to the external environment and then changing its strategic focus.


Author(s):  
Martin Stack

Historically, little beer has crossed national borders, and the notion of small, locally oriented breweries exploring international operations seems unlikely. Yet, the market for craft beer has changed tremendously since the 1970s, and international linkages have played an important role in these changes. While the most immediate cross-border manifestation of these connections is exports, this chapter argues for a broader conceptualization of this development. The very fact that the terms “craft beer” and “craft brewery” are commonplace throughout the beer world can be taken as examples of an internationalization process which also includes fundamental steps such as the global diffusion of beer styles and brewing techniques. To help illustrate this process, the chapter develops a case study examining the evolution of craft beer in the United States.


2014 ◽  
Vol 15 (4) ◽  
pp. 316-327 ◽  
Author(s):  
Eurico Brilhante Dias ◽  
Daniel Serra Lopes

Many companies are using their networks in order to overcome psychic distance – liability of foreignness – and liability of outsidership; and networks at domestic markets can be a base in which SMEs can find a lever to get a rapid internationalization process. Regarding this topic has been developed a case study in the Polish market, where a local retailer (“Biedronka”) owned by a Portuguese group (“Jerónimo Martins”) is offering Portuguese products. In order to apply a constructivist methodology, using the case study method, five SMEs where selected in order to understand if co-operation between these companies and a LE (Large Enterprise) would be a way in order to overcome the liability of foreignness and the liability of outsidership. It was also our purpose the understanding of which are the main issues that promote insidership and also the promotion of a rapid internationalization. Our conclusions have shown a LE as a source of institutional and market-specific knowledge, and regarding this last type of knowledge, as source of opportunities, and also how a SME with internationalization knowledge, an international focus and adaptation skills (in order to adapt products and prices) can introduce in a co-operative international venture, in far psychic markets, the ingredients needed to get a successful and rapid entry in a foreign market. Trust as a resource, accumulated during lasting relationships in the domestic market, has been shown as a basic requirement to develop these co-operative approaches in international markets.


2019 ◽  
Vol 12 (2) ◽  
pp. 1
Author(s):  
Miao Miao

Retail internationalization has always attracted interest from both academics and practitioners. Although many retailers have developed international markets successfully by adopting an agile global supply chain, offline and online channels, and various store formats, some cases indicate that barriers and difficulties which retailers face when entering the foreign markets still exist. Thus, the very simple question of how to succeed in implementing retail internationalization calls for more research which investigates this question regarding different cultural contexts and industries from various perspectives. This paper is concerned with retail internationalization and the current issues affecting it. In this paper, we adopt an organizing framework to deepen the understanding of the retail internationalization process, summarize the new issues at the firm and store-level, and intend to provide a theoretical framework for further research.


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