Parachuting internationalization: a study of four Scandinavian firms entering China

Abstract

Purpose

The purpose of this paper is to propose a “parachuting internationalization” metaphor as an alternative strategy that firms may choose to enter foreign markets compared to Uppsala Model and Born Global Model. This proposed new metaphor seeks to integrate the Uppsala and the Born Global Models to show that firms can attain success in the age of globalization if they are adept at devising creative strategies that help them overcome the challenges in a psychically distant environment.

Design/methodology/approach

This is a research paper that develops theoretical perspectives inspired by the Yin Yang thinking as well as the “thick descriptive” multiple case studies.

Findings

“Parachuting internationalization” embraces essential elements of the Born Global and the Uppsala Models and refers to a firm’s strategic targeting of markets with great potentials, correct positioning, swift actions, and fast learning, thus enabling the firm to circumvent the conventional wisdom of liability of foreignness, cultural distance, and psychic distance. “Parachuting internationalization” is essentially a GLOCAL approach which can be implemented in practice in terms of global vision, location, opportunity, capital, accelerated cultural learning and quick action, and logistics.

Research limitations/implications

The “parachuting internationalization” metaphor is derived from interviews with four Scandinavian firms’ experiences that have entered into the Chinese market. This research reveals that two seemingly opposite approaches, i.e., the Born Global and the Uppsala Models, can be fruitfully combined and reconciled to generate a third novel approach.

Originality/value

To date, there has been little attempt to reconcile and/or integrate the Born Global and the Uppsala Models of internationalization. The paper enriches the ongoing debate on the internationalization of firms in the international business literature that has relied primarily on the Uppsala Model or Born Global Model. The study shows that a third way, i.e. the “parachuting internationalization” is both theoretically innovative and practically feasible.

Citation

Fang, T., Tung, R.L., Berg, L. and Nematshahi, N. (2017), "Parachuting internationalization: a study of four Scandinavian firms entering China", Cross Cultural & Strategic Management, Vol. 24 No. 4, pp. 554-589. https://doi.org/10.1108/CCSM-02-2016-0041