European Journal of Business Science and Technology 2015, 1(2):149-164 | DOI: 10.11118/ejobsat.v1i2.14

Can Uppsala Model Explain the Internationalisation of Central European SMEs?

Marcela Tuzová1, Martina Toulová1, Jakub Straka1, Lea Kubíčková1
1 Mendel University in Brno, Czech Republic

The aim of this paper is to scrutinize some aspects of the Uppsala model whose applicability for SMEs' internationalisation is often questioned. This model explains internationalisation as a sequential process based on learning in which an enterprise increases its international commitment in incremental steps (Johanson and Vahlne, 1977). The assumptions of Uppsala model are discussed in conditions of SMEs from different countries, namely the Czech Republic, Slovakia, Poland, Austria and Germany. The paper is based on primary data obtained by questionnaire survey performed in 2014. Respondents were small and medium-sized firms from the above mentioned countries. Following assumptions are scrutinized: SMEs start internationalisation by exporting to neighbouring markets, SMEs behave in internationalisation according to the establishment chain, SMEs' risk perception regarding foreign markets with different psychic distance changes with the obtained knowledge and SMEs' risk perception regarding particular foreign markets differs depending on the country which the enterprise comes from.

Keywords: Uppsala model, risk perception, psychic distance, SMEs, internationalisation
JEL classification: F19, M16

Published: December 30, 2015  Show citation

ACS AIP APA ASA Harvard Chicago IEEE ISO690 MLA NLM Turabian Vancouver
Tuzová, M., Toulová, M., Straka, J., & Kubíčková, L. (2015). Can Uppsala Model Explain the Internationalisation of Central European SMEs? European Journal of Business Science and Technology, 1(2), 149-164. doi: 10.11118/ejobsat.v1i2.14
Share...
Download citation
  • BibTeX (.bib)
  • Bookends (.ris)
  • EasyBib (.ris)
  • EndNote (.enw)
  • EndNote 8 (.xml)
  • ISI WoS (.isi)
  • Medlars (.medlars)
  • Mendeley (.ris)
  • MODS (.xml)
  • Papers (.ris)
  • RefWorks (.txt)
  • RefManager (.ris)
  • RIS (.ris)
  • MS Word (.xml)
  • Zotero (.ris)
    • Open full article

    References

    1. Armario, J. M., Ruiz, D. M. and Armario, E. M. 2008. Market Orientation and Internationalization in Small and Medium-Sized Enterprises. Journal of Small Business Management, 46 (4), 485-511. Go to original source...
    2. Arteaga-Ortiz, J. 2009. On the Relationship between Export Activity and Size. The Annals of "Dunarea de Jos" University of Galati, Fascicle I, Economics and Applied Informatics, 15 (2), 57-68.
    3. Barkema, H. G. and Drogendijk, R. 2007. Internationalising in small, incremental or larger steps? Journal of International Business Studies, 38 (7), 1132-1148. Go to original source...
    4. Beleska-Spasova, E. and Glaister, K. W. 2011. The role of firm-specific advantages in UK export initiation. Multinational Business Review, 19 (2), 168-194. Go to original source...
    5. Bilkey, W. J. and Tesar, G. 1977. The export behavior of smaller sized Wisconsin manufacturing firms. Journal of International Business Studies, 8, 93-98. Go to original source...
    6. Camison, C. and Villar-Lopez, A. 2010. Effect of SMEs' international experience on foreign intensity and economic performance: the mediating role of internationally exploitable assets and competitive strategy. Journal of Small Business Management, 48 (2), 116-151. Go to original source...
    7. Cavusgil, S. T. 1980. On the internationalization process of firms. European Research, 8 (6), 273-281.
    8. Child, J., Ng, S. H. and Wong, C. 2002. Psychic Distance and Internationalization: Evidence from Hong Kong Firms. International Studies of Management & Organization, 32 (1), 36-56. Go to original source...
    9. Child, J. and Hsieh, L. 2014. Decision mode, information and network attachment in the internationalization of SMEs: A configurational and contingency analysis. Journal of World Business, 49, 598-610. Go to original source...
    10. Cui, A. P., Walsh, M. F. and Gallion, D. 2011. Internationalization Challenges for SMEs and Global Marketing Managers: A Case Study. International Journal of Business and Social Research, 1 (1), 57-69.
    11. Cui, A. P., Walsh, M. F. and Zou, S. 2014. The Importance of Strategic Fit Between Host-Home Country Similarity and Exploration Exploitation Strategies on Small and Medium-Sized Enterprises' Performance: A Contingency Perspective. Journal of International Marketing, 22 (4), 67-85. Go to original source...
    12. D'Angelo, A., Majocchi, A., Zucchella, A. and Buck, T. 2013. Geographical pathways for SME internationalization: insights from an Italian sample. International Marketing Review, 30 (2), 80-105. Go to original source...
    13. Dodge, Y. 2010. The concise encyclopedia of statistics. Springer-Verlag: New York.
    14. Dunning, J. H. 1980. Towards an eclectic theory of international production: some empirical tests. Journal of International Business Studies, 11 (1), 9-31. Go to original source...
    15. Fernández-Ortiz, R., Arteaga-Ortiz, J. and Clavel San Emeterio, M. 2015. Factors That Foster Export Commitment: an Empirical Study in Small and Medium-Sized Enterprises. Engineering Economics, 26 (3), 272-283. Go to original source...
    16. Figueira-de-Lemos, F., Johanson, J. and Vahlne, J.-E. 2011. Risk management in the internationalization process of the firm: A note on the Uppsala model. Journal of World Business, 46 (2), 143-153. Go to original source...
    17. Forsgren, M. 2002. The concept of learning in the Uppsala internationalization process model: a critical review. International Business Review, 11 (3), 257-277. Go to original source...
    18. Frynas, J. G. and Mellahi, K. 2012. Global strategic management. 2nd Edition. Oxford University Press: New York.
    19. Gunasekaran, A., Rai, B. K. and Griffin, M. 2011. Resilience and competitiveness of small and medium size enterprises: an empirical research. International Journal of Production Research, 49 (18), 5489-5509. Go to original source...
    20. Johanson, J. and Mattsson, L.-G. 1987. Interorganizational relations in industrial systems - A network approach compared with the transaction cost approach. International Studies of Management and Organization, 17 (1), 34-48. Go to original source...
    21. Johanson, J. and Mattsson, L.-G. 1988. Internationalization in industrial Systems - A Network Approach, in Hood, N. and Vahlne, J.-E. (Eds.) Strategies in Global Competition, Croom Helm: New York, 287-314.
    22. Johanson, J. and Vahlne, J.-E. 1977. The internationalization process of the firm - a model of knowledge development and increasing foreign market commitments. Journal of international business studies, 8 (1), 23-32. Go to original source...
    23. Johanson, J. and Vahlne, J.-E. 1990. The Mechanism of Internationalisation. International Marketing Review, 7 (4), 11-24. Go to original source...
    24. Johanson, J. and Vahlne, J.-E. 2009. The Uppsala internationalization process model revisited: From liability of foreigness to liability of outsidership. Journal of International Business Studies, 40 (9), 1411-1431. ISSN 0047-2506. Go to original source...
    25. Johanson, J. and Wiedersheim-Paul, F. 1975. The internationalization of the firm: four Swedish cases. Journal of Management Studies, 12 (3), 305-323. Go to original source...
    26. Kubíčková, L. 2013. Limits of the Uppsala model application in the internationalization process of Czech SMEs. European International Journal of Science and Technology, 2 (9), 245-254.
    27. Laufs, K. and Schwens, C. 2014. Foreign market entry mode choice of small and medium-sized enterprises: A systematic review and future research agenda. International Business Review, 23, 1109-1126. Go to original source...
    28. Majocchi, A., Bacchiocchi, E. and Mayrhofer, U. 2005. Firm size, business experience and export intensity in SMEs: A longitudinal approach to complex relationships. International Business Review, 14 (6), 719-738. Go to original source...
    29. Moen, Ø. and Servais, P. 2002. Born Global or Gradual Global? Examining the Export Behavior of Small and Medium-Sized Enterprises. Journal of International Marketing, 10 (3), 49-72. Go to original source...
    30. Musso, F. and Francioni, B. 2012. How do smaller firms select foreign markets? International Journal of Marketing Studies, 4 (6), 44-53. Go to original source...
    31. Noorderhaven, J. P. 2012. Cross-border differences in SME border crossing: A panel data analysis on the impact of country-specific effects on individual firm exports. [online]. Available at: http://arno.uvt.nl/show.cgi?fid=122382.
    32. Nordman, E. R. and Tolstoy, D. 2014. Does relationship psychic distance matter for the learning processes of internationalizing SMEs? International Business Review, 23 (1), 30-37. Go to original source...
    33. Ocampo Figueroa, L. E., Alarcón Osuna, M. A. and Fong Reynoso, C. 2014. Determinants of the Internationalization of the Firm: The Accelerated Model vs the Sequential Model. The International Journal of Business and Finance Research, 8 (5), 81-93.
    34. Ojala, A. and Tyrväinen, P. 2009. Impact of psychic distance to the internationalization behavior of knowledge-intensive SMEs. European Business Review, 21 (3), 263-277. Go to original source...
    35. Oviatt, B. M. and McDougall, P. P. 1994. Toward a Theory of International New ventures. Journal of International Business Studies, 25, 45-64. Go to original source...
    36. Paunovič, Z. and Prebežac, D. 2010. Internationalization of small and mediumsized enterprises. Trziste [Market], 22 (1), 57-76.
    37. Petersen, B. and Pedersen, T. 1999. Fast and slow resource commitment to foreign markets: What causes the difference? Journal of International Management, 5 (2), 73-91. Go to original source...
    38. Reis, J. and Forte, R. 2014. The Impact Of Industry Characteristics On Firms' Export Intensity. Working paper Nr. 524 of Universidade do Porto. [online]. Available at: http://www.fep.up.pt/investigacao/workingpapers/wp524.pdf.
    39. Stanculescu, A. M., Grigore, L., Gagea, A. M. and Georgescu, B. 2010. The born global model for Romanian small and medium enterprises internationalization. Studia Universitatis Babes-Bolyai. Negotia, 1, 129-142.
    40. Svetličič, M., Jaklič, A. and Burger, A. 2007. Internationalization of small and medium-size enterprises from selected central European economies. Eastern European Economics, 45 (4), 36-65. Go to original source...
    41. Zaclicever, D. 2015. Firm size and export performance: Evidence from Uruguayan manufacturing SMEs. Preliminary Draft for 21st International Panel Data Conference in Budapest, June 29-30, 2015. [online]. Available at: http://paneldataconference2015.ceu.hu/Program/Dayna-Zaclicever.pdf.

    This is an open access article distributed under the terms of the Creative Commons Attribution-ShareAlike 4.0 International License (CC BY-SA 4.0), which permits use, distribution, and reproduction in any medium, provided the original publication is properly cited. No use, distribution or reproduction is permitted which does not comply with these terms.


    Return to the content