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Open Access
Article
Publication date: 23 November 2018

Sara Melén Hånell and Emilia Rovira Nordman

This paper aims to explore the benefits of a regional internationalization strategy and investigate how a rapidly internationalizing SME’s development of market knowledge relates…

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Abstract

Purpose

This paper aims to explore the benefits of a regional internationalization strategy and investigate how a rapidly internationalizing SME’s development of market knowledge relates to this strategy.

Design/methodology/approach

After a brief overview of the literature on international SMEs, the internalization approach and the IP-approach, a case study is introduced and analyzed.

Findings

The case findings illustrate that market knowledge steers the investigated firm to follow a regional approach of operations. The regional strategy lessens perceived risks, saves costs and generates sufficient knowledge about one market at a time.

Practical implications

It is important for managers in rapidly internationalizing SMEs and for policymakers to recognize the benefits of supporting regional orientation initiatives for enhancing these firms’ internationalization.

Originality/value

This paper presents a longitudinal case study that contributes to further the understanding and insights into the operations of born regionals. By probing deeper into the ideas provided by the internalization approach, the IP-approach and research about international SMEs, the study contributes with a unified framework for understanding the benefits for rapidly internationalizing SMEs to operate on a regional scope.

Details

Journal of Business & Industrial Marketing, vol. 34 no. 6
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 10 July 2020

Sara Melén Hånell, Emilia Rovira Nordman and Lars-Gunnar Mattsson

This study addresses the research question: How does the experiential knowledge, superstitious knowledge and the wisdom of CEOs influence the internationalization behaviour of…

Abstract

Purpose

This study addresses the research question: How does the experiential knowledge, superstitious knowledge and the wisdom of CEOs influence the internationalization behaviour of SMEs?

Design/methodology/approach

An exploratory qualitative study is used. Longitudinal case studies of two Swedish life science companies are analysed.

Findings

An individual's prior experiential knowledge influence the newly started SME's market commitments and internationalization behaviour. Such prior experiences can enable early and rapid resource commitments in the newly started SMEs. Relying upon such prior experiential knowledge in deciding upon the company's market commitments however heightens the risk of superstitious learning. The findings illustrate how wisdom can work as an antidote to superstitious learning. Wisdom lures even experienced CEOs away from believing they know more than they actually know.

Research limitations/implications

The study contributes to extend the Uppsala model by incorporating the role of individual-level experiential knowledge. The study also adds value to the literature on small firm internationalization by providing propositions for how the prior knowledge of individual key decision makers influences SMEs' internationalization behaviour. The propositions provide new input to the ongoing discussion in the literature and help to guide future research.

Originality/value

Given the fact that the Uppsala model is centred upon a firm-level view on experiential knowledge, our theoretical understanding is still limited regarding how individual-level experiential knowledge influences the internationalization behaviour of SMEs. This study addresses calls for research on how individuals' prior knowledge influences small-firm internationalization.

Details

International Marketing Review, vol. 38 no. 2
Type: Research Article
ISSN: 0265-1335

Keywords

Open Access
Article
Publication date: 19 June 2019

Sara Melén Hånell, Emilia Rovira Nordman, Daniel Tolstoy and Nurgül Özbek

The purpose of this paper is to explore how market factors (pertaining to institutions, competition and resources) shape the international strategies of an online retailer.

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Abstract

Purpose

The purpose of this paper is to explore how market factors (pertaining to institutions, competition and resources) shape the international strategies of an online retailer.

Design/methodology/approach

A single qualitative case study research design is employed to conduct in-depth analyses of a Swedish internationalising small- and medium-sized enterprise (SME) in the retail business.

Findings

The findings show that online retailers can use partnerships to tackle industry dynamics and break into foreign markets. This type of “piggy-back internationalisation” can be an effective strategy of handling foreign market dynamics in the entry phase: that is to say, the short term. Reliance upon relationships, however, may paradoxically inhibit retailers’ abilities to stay competitive in the post-entry phase (i.e. the long term) since they become cut-off from the first-hand market learning.

Research limitations/implications

The authors provide propositions based upon the findings to support further research in the international marketing and international retailing literature.

Practical implications

The findings enhance the understanding of how electronic commerce affects SME internationalisation. They also generate new insights into the use of possible international expansion strategies for managers in retail SMEs.

Originality/value

This study introduces a new theoretical perspective to build upon international retail research and contributes to the international retail literature with relevant insights into both advantages and disadvantages of using partnerships to overcome challenges related to international online retailing.

Details

International Marketing Review, vol. 37 no. 3
Type: Research Article
ISSN: 0265-1335

Keywords

Book part
Publication date: 21 October 2019

Sara Melén Hånell, Emilia Rovira Nordman and Daniel Tolstoy

Is a born-global strategy reflective of high performance or are there merits in a regional strategy? In studying a sample of 32 internationalizing small-and medium-sized…

Abstract

Is a born-global strategy reflective of high performance or are there merits in a regional strategy? In studying a sample of 32 internationalizing small-and medium-sized enterprises (SMEs), we find that many of the early internationalizing firms that formally meet the accepted “born-global criteria” are actually regional. With this concept as a starting point, this study aims to contribute to the literature on early internationalizing firms by comparing how born globals (BGs) and born regionals (BRs) differ in terms of the liability of foreignness, networking activities and performance. Our results indicate that both liability of foreignness and knowledge development in networks is more challenging for BGs than for BRs, and for this reason, BRs are likely to perform better than BGs. Hence, we identify a “born global disadvantage” stemming from a lack in the capacity of acquiring relevant foreign-market knowledge and tackling foreign-market institutions. The implications of the study highlight the need for researchers and practitioners to be more careful when using the concept of BG and to acknowledge that differences do exist between regional and global business strategies.

Details

International Business in a VUCA World: The Changing Role of States and Firms
Type: Book
ISBN: 978-1-83867-256-0

Keywords

Open Access
Book part
Publication date: 2 October 2023

Pervez N. Ghauri, Ulf Elg and Sara Melén Hånell

In this chapter, we discuss the main themes of the book and give examples of how the rest of the chapters are related to these themes. We have identified two main aspects that are…

Abstract

In this chapter, we discuss the main themes of the book and give examples of how the rest of the chapters are related to these themes. We have identified two main aspects that are partly overlapping and are equally relevant for international firms’ work with ethical questions related to their business. One concerns how ethical behaviour related to sustainability can be applied as a main part of firms’ corporate strategy and how this may strengthen the international competitive position. This is particularly relevant when considering that it cannot be taken for granted that there is always a positive relationship and that actors may sometimes question an emphasis on ethical behaviour that goes beyond the accepted norms and regulations. The other main theme is related to international firms’ crucial role in supporting sustainability on an international level and contributing towards achieving sustainable development goals (SDGs). Solving many of the challenges related to climate change, migration, poverty and inequality is likely to require the involvement of international firms. The book identifies several routes forward to achieve this.

Details

Creating a Sustainable Competitive Position: Ethical Challenges for International Firms
Type: Book
ISBN: 978-1-80455-252-0

Keywords

Open Access
Article
Publication date: 27 June 2022

Daniel Tolstoy, Sara Melén Hånell and Nurgül Özbek

The purpose of this paper is to create a model that compares the effects of product content differentiation and service content differentiation on small- and medium-sized…

2179

Abstract

Purpose

The purpose of this paper is to create a model that compares the effects of product content differentiation and service content differentiation on small- and medium-sized enterprises’ (SMEs) perceived importance of customer reference marketing in foreign markets.

Design/methodology/approach

A theoretical model is developed and tested through multiple regression and mediation analysis, on an effective sample of 188 Swedish SMEs.

Findings

The results show that foreign market business assignments characterized by differentiated services make companies relatively more dependent on relationship learning and customer reference marketing. By contrast, situations of differentiated product content correlate negatively with customer reference marketing.

Practical implications

Reference customers can function as vehicles for international expansion when marketing offerings are complex. The findings imply that in service settings, SMEs need to maintain learning regimes with foreign market customers to effectively use them as references to win new business.

Originality/value

The study applies a service perspective to explain the contingencies of customer reference marketing, particularly in international business settings. The study contributes to international small business literature and research focusing on service–firm internationalization by explaining the marketing mechanisms at play in the internationalization of SMEs. In so doing, the findings can enrich relationship and network perspectives of internationalization and add a missing link to studies on networking and internationalization.

Details

Journal of Business & Industrial Marketing, vol. 37 no. 13
Type: Research Article
ISSN: 0885-8624

Keywords

Open Access
Article
Publication date: 30 May 2024

Sara Melén Hånell, Veronika Tarnovskaya and Daniel Tolstoy

The purpose of this study is to examine how different innovation efforts can support multinational enterprises’ (MNEs’) pursuits of sustainable development goals (SDGs) in…

Abstract

Purpose

The purpose of this study is to examine how different innovation efforts can support multinational enterprises’ (MNEs’) pursuits of sustainable development goals (SDGs) in emerging markets and under what circumstances they are applied.

Design/methodology/approach

The article comprises in-depth case studies on two high-profile Swedish MNEs: a telecom firm and a fast-fashion firm, with data collected both at the headquarter-level and local-market level.

Findings

The study shows that MNEs pursue a selection of prioritized SDGs in emerging markets. To overcome challenges related to attaining these goals, we find that MNEs engage in innovation efforts at different levels of commitment. In some instances, they engage in operational innovation aimed at relieving symptoms of sustainability misconduct and ensuring compliance. In other instances, they engage in systemic innovation efforts, which involve the actual market structures underlying sustainability problems.

Originality/value

MNEs are increasingly incorporating the United Nations SDGs into their innovation strategies. The study contributes to international business research on MNEs’ roles in realizing the SDGs by conceptualizing and discussing two pertinent approaches to innovation.

Details

International Marketing Review, vol. 41 no. 7
Type: Research Article
ISSN: 0265-1335

Keywords

Open Access
Book part
Publication date: 2 October 2023

Abstract

Details

Creating a Sustainable Competitive Position: Ethical Challenges for International Firms
Type: Book
ISBN: 978-1-80455-252-0

Open Access
Book part
Publication date: 2 October 2023

Sara Melén Hånell, Daniel Tolstoy and Veronika Tarnovskaya

The increasing pressure for social responsibility and sustainability that multinational enterprises (MNEs) are facing in their global operations represents one important emerging…

Abstract

The increasing pressure for social responsibility and sustainability that multinational enterprises (MNEs) are facing in their global operations represents one important emerging phenomenon within the international business field. In this book chapter, we present an in-depth case study on how a global fashion MNE develops and implements sustainability practices in their operations in an emerging market context. The case study focusses on the MNE’s work related to energy efficiency and renewable energy in the production market of Bangladesh. The purpose of this chapter is to advance the understanding about particular practices pertinent to a proactive approach to corporate social responsibility (CSR). The chapter contributes to ongoing discussions within the international business field on the role of MNEs in driving and implementing sustainability practices. We add an in-depth understanding of the proactive CSR practices undertaken by an MNE, in an emerging market context.

Details

Creating a Sustainable Competitive Position: Ethical Challenges for International Firms
Type: Book
ISBN: 978-1-80455-252-0

Keywords

Open Access
Article
Publication date: 4 August 2022

Veronika Tarnovskaya, Daniel Tolstoy and Sara Melén Hånell

The purpose of this study is to conduct a systematic literature review that illuminates the current state of knowledge regarding the specific approaches by which multinational…

3041

Abstract

Purpose

The purpose of this study is to conduct a systematic literature review that illuminates the current state of knowledge regarding the specific approaches by which multinational corporations (MNCs) implement corporate social responsibility (CSR) on the subsidiary level in developing countries.

Design/methodology/approach

Even though substantial scholarly work has been made to outline MNCs' activities in developing countries, this literature remains fragmented. To support the field in its theoretical as well as empirical advancements, this study conducts a systematic review of this body of literature and content analysis of relevant articles using insights from strategic marketing literature (market driving/proactive and market-driven/reactive approaches).

Findings

The authors synthesize our findings by presenting a taxonomy of proactive/reactive CSR approaches in developing markets along with propositions that can guide future research in this area.

Originality/value

Among the key contributions of this study's literature review is the development of a taxonomy of proactive/reactive CSR, bringing together different and fragmented streams of research and viewing them from strategic marketing (“proactive/reactive”) perspective. The taxonomy and the two ensuing propositions can advance future CSR-related studies with MNCs in focus by providing both theoretical and empirical guidance.

Details

International Marketing Review, vol. 39 no. 7
Type: Research Article
ISSN: 0265-1335

Keywords

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