What do we know about internationalization strategies implementation and what are we missing?
DOI:
https://doi.org/10.18568/1980-4865.13259-70Keywords:
Internationalization strategy, internationalization process, strategic implementation, key factors, internal factors.Abstract
Internationalization is a particular kind of strategy that can be described as a complex and multidimensional decision process. However, good strategies do not guarantee business success unless they are successfully implemented. This study aims to investigate what are the key internal factors that impact the implementation of the internationalization strategy of the firm. We conducted a descriptive review of the literature, on articles in the ISI Web of Science database, followed by the use of categorical analysis technique. Results show that antecedents represent most of internationalization studies and little attention has been given to the key internal factors. In addition, most of the discussion focus on Internal Context issues (organizational structures, relationship between business units and people/leadership capabilities), but key factors concerning the Strategic Implementation Process (communication, commitment and control systems) have been neglected by researchers and compromise the holistic understanding of the internationalization process. In this study, we propose an analytical framework bridging the strategy and internationalization perspectives on the issue of implementation and indicate gaps in the internationalization body of research concerning the key internal facts. In doing so, we expect to contribute by providing a systematic understanding of the key factors influencing the implementation of internationalization strategies.
Downloads
References
Alexander, L.D. (1985). Successfully Implementing Strategic Decisions. Long Range Planning, 18, 91-97.
Barbosa, F., & Romero, F. (2016, September). The Links Between Innovation, Strategy and Internationalization Processes: A Comprehensive Literature Review. In European Conference on Innovation and Entrepreneurship (p. 904). Academic Conferences International Limited.
Bardin, L. (1979). Análise de conteúdo. Lisboa: Edições 70.
Beleska-Spasova, E., Glaister, K. W., & Stride, C. (2012). Resource determinants of strategy and performance: The case of British exporters. Journal of World Business, 47(4), 635-647.
Borini, F. M., de Miranda Oliveira, M., Silveira, F. F., & de Oliveira Concer, R. (2012). The reverse transfer of innovation of foreign subsidiaries of Brazilian multinationals. European Management Journal, 30(3), 219-231.
Calof, J. L., & Beamish, P. W. (1995). Adapting to foreign markets: Explaining internationalization. International business review, 4(2), 115-131.
Cândido, C., & Santos, S.P.D. (2015). Strategy implementation: What is the failure rate?. Journal of Management & Organization, 21(02), 237-262.
Carr, J. C., Haggard, K. S., Hmieleski, K. M., & Zahra, S. A. (2010). A study of the moderating effects of firm age at internationalization on firm survival and short‐term growth. Strategic Entrepreneurship Journal, 4(2), 183-192.
Carter, S., & Wilton, W. (2006). Don't blame the entrepreneur, blame government: The centrality of the government in enterprise development; Lessons from enterprise failure in Zimbabwe. Journal of Enterprising Culture, 14(01), 65-84.
Chebbi, H., Yahiaoui, D., Vrontis, D., & Thrassou, A. (2017). The Impact of Ambidextrous Leadership on the Internationalization of Emerging‐Market Firms: The Case of India. Thunderbird International Business Review, 59(3), 421-436.
Chiesa, V. (1996). Managing the internationalization of R&D activities. IEEE Transactions on Engineering Management, 43(1), 7-23.
Chimhanzi, J. (2004). The impact of marketing/HR interactions on marketing strategy implementation. European Journal of Marketing, 38, 73-98.
Cooper, D. R., Schindler, P. S., & Sun, J. (2006). Business research methods (Vol. 9). New York: McGraw-Hill Irwin.
Danik, L., & Kowalik, I. (2015). Success factors and development barriers perceived by the Polish born global companies. Empirical study results. Journal of East European Management Studies, 360-390. Drazin, R. & Howard, P. (1984). Strategy implementation: A technique for organizational design, Columbia Journal of World Business, 19 (summer), 40-46.
Efrat, K., & Shoham, A. (2012). Born global firms: The differences between their short-and long-term performance drivers. Journal of World Business, 47(4), 675-685.
Fisch, J. H., & Zschoche, M. (2011). Do firms benefit from multinationality through production shifting?. Journal of International Management, 17(2), 143-149.
Forman, J., & Argenti, P.A. (2005). How corporate communication influences strategy implementation, reputation and the corporate brand: An exploratory qualitative study. Corporate Reputation Review, 8, 245-264.
Gammelgaard, J., McDonald, F., Stephan, A., Tüselmann, H., & Dörrenbächer, C. (2012). The impact of increases in subsidiary autonomy and network relationships on performance. International Business Review, 21(6), 1158-1172.
Garrett, G., & Lange, P. (1995). Internationalization, institutions, and political change. International Organization, 49(4), 627-655.
Gilad, B. (2004). Early warning: Using competitive intelligence to anticipate market shifts, control risk, and create powerful strategies. New York, NY: AMACOM.
Gilbert, D. U., & Heinecke, P. (2014). Success factors of regional strategies for multinational corporations: Exploring the appropriate degree of regional management autonomy and regional product/service adaptation. Management International Review, 54(5), 615-651.
Govindarajan, V. (1988). A contingency approach to strategy implementation at the business-unit level integrating administrative mechanisms with strategy. Academy of Management Journal, 31, 828-853.
Gupta, A.K. (1987). SBU strategies, corporate-SBU relations, and SBU effectiveness in strategy implementation. Academy of Management Journal, 30, 477-500.
Hashim, F. (2015). SMEs’ impediments and developments in the internationalization process: Malaysian experiences. World Journal of Entrepreneurship, Management and Sustainable Development, 11(2), 100-119.
Hendry, C. (1996). Continuities in human resource processes in internationalization and domestic business management. Journal of Management Studies, 33(4), 475-494.
Ho, J.L.Y., Wu, A., & Wu, S.Y.C. (2014). Performance measures, consensus on strategy implementation, and performance: evidence from the operational-level of organizations. Accounting Organizations and Society, 39, 38-58.
Heracleous, L. (2000). The role of strategy implementation in organization development. Organization Development Journal, 18, 75-86.
Hrebiniak, L. (1992). Implementing global strategies. European Management Journal, 10(4), 392-403.
Hrebiniak, L.G. (2006). Fazendo a estratégia funcionar. Editora Bookman.
Javalgi, R. R. G., & Todd, P. R. (2011). Entrepreneurial orientation, management commitment, and human capital: The internationalization of SMEs in India. Journal of Business Research, 64(9), 1004-1010.
Jormanainen, I., & Koveshnikov, A. (2012). International activities of emerging market firms. Management International Review, 52(5), 691-725.
Kaplan, R. S., & Norton, D. P. (2001). The strategy-focused organization: How balanced scorecard companies thrive in the new business environment. Harvard Business Press.
Keen, C., & Etemad, H. (2012). Rapid growth and rapid internationalization: the case of smaller enterprises from Canada. Management Decision, 50(4), 569-590.
Knight, G., & Kim, D. (2009). International business competence and the contemporary firm. Journal of International Business Studies, 40(2), 255-273.
Knill, C., & Lehmkuhl, D. (2002). Private actors and the state: Internationalization and changing patterns of governance. Governance, 15(1), 41-63.
Kraus, S., Mitter, C., Eggers, F., & Stieg, P. (2017). Drivers of internationalization success: a conjoint choice experiment on German SME managers. Review of Managerial Science, 11(3), 691-716.
Laamanen, T., Simula, T., & Torstila, S. (2012). Cross-border relocations of headquarters in Europe. Journal of International Business Studies, 43(2), 187-210.
Leonardi, P.M. (2015). Materializing strategy: The blurry line between strategy formulation and strategy implementation. British Journal of Management, 26, 17-21.
Li, Q., & Deng, P. (2017). From international new ventures to MNCs: Crossing the chasm effect on internationalization paths. Journal of Business Research, 70, 92-100.
Li, Y., Guohui, S., & Eppler, M.J. Making strategy work: A literature review on the factors influencing stragegy implementation. Università della Svizzera Italiana, 2008.
Lin, W. T., & Cheng, K. Y. (2013). The effect of upper echelons’ compensation on firm internationalization. Asia Pacific Journal of Management, 30(1), 73-90.
MacMillan, I.C., & Guth, W.D. (1985) Strategy implementation and middle management coalitions. Advanced Strategic Management, 3, 233-254.
Miao, Y., Choe, S., & Song, J. (2011). Transferring subsidiary knowledge in the global learning context. Journal of Knowledge Management, 15(3), 478-496.
Miozzo, M., & Yamin, M. (2012). Institutional and sectoral determinants of headquarters-subsidiary relationships: A study of UK service multinationals in China, Korea, Brazil and Argentina. Long Range Planning, 45(1), 16-40.
Mort, S.G., & Weerawardena, J. (2006). Networking capability and international entrepreneurship: How networks function in Australian born global firms. International Marketing Review, 23(5), 549-572.
Nawab, S., Li, X. X., & Nisar, M. W. (2011). " Person culture fit" as an approach for better adjustments of expatriates to new cultures: A case study of China. African Journal of Business Management, 5(9), 3429.
Noble, C.H. (1999). Building the strategy implementation network. Business Horizons, 42(6), 19-28.
Noble, C.H., & Mokwa, M.P. (1999). Implementing marketing strategies: developing and testing a managerial theory. Journal of Marketing, 63, 57-73.
Nummela, N., Saarenketo, S., & Loane, S. (2016). The dynamics of failure in international new ventures: A case study of Finnish and Irish software companies. International Small Business Journal, 34(1), 51-69.
Nutt, P.C. (1987). Identifying and appraising how managers install strategy. Strategic Management Journal, 8, 1-14.
Ocicka, B. (2016). Reshoring: implementation issues and research opportunities. Management, 20(2), 103-117.
Okumus, F. (2001). Towards a strategy implementation framework. International Journal of Contemporary Hospitality Management, 13, 327-338.
Olson, E.M., Slater, S.F. & Hult, G.T. (2005). The importance of structure and process to strategy implementation. Business Horizons, 48, 47-54.
Onkelinx, J., Manolova, T. S., & Edelman, L. F. (2016). The human factor: Investments in employee human capital, productivity, and SME internationalization. Journal of International Management, 22(4), 351-364.
Peng, W. & Litteljohn, D. (2001). Organisational communication and strategy implementation - A primary inquiry. International Journal of Contemporary Hospitality, 13, 360-363.
Rapert, M.I., Velliquette, A., & Garretson, J.A. (2002). The strategic implementation process evoking strategic consensus through communication. Journal of Business Research, 55, 301-310.
Rodriguez, M.C., Wise, A.J., & Martinez, R.C. (2013). Strategic capabilities in exporting: an examination of the performance of Mexican firms. Management Decision, 51(8), 1643-1663.
Sanna-Randaccio, F., & Veugelers, R. (2007). Multinational knowledge spillovers with decentralised R&D: a game-theoretic approach. Journal of International Business Studies, 38(1), 47-63.
Schu, M., Morschett, D., & Swoboda, B. (2016). Internationalization Speed of Online Retailers: A Resource-Based Perspective on the Influence Factors. Management International Review, 56(5), 733-757.
Skivington, J.E., & Daft, R.L. (1991). A study of organizational framework and process modalities for the implementation of business-level strategic decisions. Journal of Management Studies, 28(1), 45-68.
Stoian, M. C., Rialp, A., Rialp, J., & Jarvis, R. (2016). Internationalisation of central and eastern European small firms: institutions, resources and networks. Journal of Small Business and Enterprise Development, 23(1), 105-121.
Thrassou, A., Vrontis, D., & Kotabe, M. (2011). Towards a marketing communications model for small political parties: A primary principles strategic perspective for developed countries. Cross Cultural Management: An International Journal, 18(3), 263-292.
Vaillant, Y., & Lafuente, E. (2007). Do different institutional frameworks condition the influence of local fear of failure and entrepreneurial examples over entrepreneurial activity?. Entrepreneurship and Regional Development, 19(4), 313-337.
Vissak, T., & Francioni, B. (2013). Serial nonlinear internationalization in practice: A case study. International Business Review, 22(6), 951-962.
Viseras, E.M. Baines, T., & Sweeney, M. (2005). Key success factors when implementing strategic manufacturing initiatives. International Journal of Operations & Production Management, 25, 151-179.
Walker, Jr.O.C. & Ruekert, R.W. (1987). Marketing`s role in the implementation of business strategies: a critical review and conceptual framework. Journal of Marketing, 51, 15-33.
Williams, C., & Nones, B. (2009). R&D subsidiary isolation in knowledge‐intensive industries: evidence from Austria. R&d Management, 39(2), 111-123.
Yaprak, A., Xu, S., & Cavusgil, E. (2011). Effective global strategy implementation. Management International Review, 51(2), 179.
Downloads
Published
How to Cite
Issue
Section
License
- The author(s) authorize the publication of the article in the journal;
- The author(s) ensure that the contribution is original and unpublished and is not being evaluated in other journal(s);
- The journal is not responsible for the opinions, ideas and concepts expressed in the texts because they are the sole responsibility of the author(s);
- In case an article will be approved for publication, the author will sign the term of Cession of Copyright to the journal, according to the download form.