Gemser: exploring internationalization process of SE
9 important questions on Gemser: exploring internationalization process of SE
Internationalization path of firms in the sample is consistent with the logic of the models
- Both software as mechanical firms show increasing commitment and involvement
- but software firms internationalize much earlier, they are more opportunity seeking and offensive
Gemser measures degree of internationalizastion of sampled firms by an constructed IP profile, this consists of 5 dimensions
- attitude of firms towards internationalization activities (defensive or offensive)
- foreign entry model (low risk or high risk)
- number of entry modes (ranges from 1 to many)
- number of world regions covered by firm's internationalization efforts
- market similarity (quite to very similar)
In internationalization process, there are 3 models used
- Uppsala model
- Transaction cost economics
- network approach
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Gemser argues that an SE has two options of how they want to internationalize
- go in alone: by direct exporting and/or creating fully owned foreign subsidiaries
- cooperative strategy: allying with partners up, down or at same level of value chain
Results when we group firms based on size
- SE score higher on 3 IP dimensions (internationalization attitude, numbers of regions covered and market similarity)
- Explained by most SE are software, that have more offensive attitude
Difference of new and old economy in nature of their internationalization actions
- New: follow internationalization path of balanced exploitive and explorative
- Old: were confronted with stable environments, so predominantly explorative nature
Cooperative strategy requires cooperative relationships among firms, like
- International Strategic Alliances (ISA): a cooperative relationship with a partner aimed at development of production in foreign market
- Joint Venture: equity sharing
- NESA: non equity strategic alliance
- ESA: equity stragegic alliance
Results when we group firms based on age
- young firms score lower on all IP dimensions
- Youngest cover less regions and more similar markets then older
- Collaborate with Uppsala theory
Two basic internationalization strategies for SE
- cooperative: give up their autonomy, to corporate in order to facilitate internationalization.
- autonomous: acts in independent way, typical for LE for a long time
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