SME And Internationalization Definitions And Links Commerce Essay

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Our study called The influence of the management team's international experience on the internationalization behaviours of SME's is based on an example taken from the Canadian software market in order to understand easily we have to define what is an SME in Canada.

In fact Industry Canada defines a small business as one with fewer than 100 employees (if the business is a goods-producing one) or fewer than 50 employees (if the business is service-based), and a medium-sized business as one with fewer than 500 employees.

Internationalization definition:

Internationalization is a process of increasing involvement of enterprises in international markets. It is the opening of the sales of the enterprise abroad, that convert the domestic market enterprise in an international firm.

Theses actions are lead by managers. The managers need to think globally and must understand the international cultures. They must take into account the different beliefs, way of leaving, work market, the different international strategies developed in order to internationalize successfully.

Many trade theories were developed concerning internationalization.

Adam Smith talked about absolute cost advantage that says that a company or country should specialize in and export commodities in which it had an absolute advantage. A company has an absolute advantage when it can produce something with a cost per unit lesser than all the others.

Whereas the New trade company provides protectionism for a while in order to have big companies before opening the company abroad.

Link between SME and internationalization:

In our case study, two professors made this research in order to explain why some SME are just more performent to sell on foreign market than other SME.

Normally, we explain this by the fact that firms gain knowledge and resources by the time and when they become larger.

Into the Canadian example the authors will show us that internationally experienced management teams make it easier for the firm to develop a foreign strategy partners and to obtain foreign sales.

For a firm developing its outside market is very important and needed but its demonstrated that for small firms its is more difficult than big companies because they don't have the skills, the experience and the credibility.

But these arguments are not longer avaible because instead of taking into account the size and age now we can use directly the knowledge of foreign market and the selling ability and the management skills.

The purpose of the research is to show the relationship between management's international experience and the internationalization of the SME's.

The survey is based on a sample of Canadian software product firms.

The example has been chosen because it's a domination of small firms and there are low barriers to entry and the domestic market is to small for these firms so the internationalization is needed.

International Experience

Studies have already been done on the impact of top managers foreign experience and the internal behaviour of the firm.

And the result show that to succeed in export taking into account the freeing experience of the top maanger, the number of language spoken and his travel and if he has been living or working abroad.

But the research can be extended by

Considering the managers as a whole and not only taking into account the top (1)

-Specifying the way international experience management and the firm internationalization is linked (2)

First of all its is shown than even if international firms from birth are managed by a addition of international managers with their own experience, the decision are taken by the managers all together rather than only the CEO. Although firms with a team are more likely to be international rather than a single decision maker firm.

International behaviours

There are two behaviours possible

The first is to use foreign strategic partnership.

The more international experiences the managers have the more it's easy to form partnership because of the ability and the force of attraction.

Because of their experience there are more likely to adapt the firm to the foreign culture and to develop a network.

Partnerships formed to reach foreign market can increase the internationalization of the firm even in vulnerable position because partnerships provide specific skill and recourse but also legitimacy and market power.

The advantages also with partnerships that it is easy to entry or get out of the foreign market.

So with this behaviour we can notice two hypotheses:

-The international experience of the managers of the firm is related to the use of foreign strategic partnerships

-That shows that there's a relationship between the team international experience and the degree of internationalization of the firm.

The second behaviour is that the internationally experienced manager may influence the firm to engage in.

The most important thing is for how long your firm is selling abroad but how long did the firm delayed the entry in foreign market.

International teams are likely to delay less.

The theory of Dirk de Clercq.

After reading the article Learning and knowledge in early internationalization research: Past accomplishments and future directions , We can conclude that early internationalization is not random. Rather, a variety of sources of learning and knowledge acquisition styles contribute to the phenomenon and outcomes of early internationalization. Further, the different pathways to acquiring foreign knowledge seem to evolve and interact with each other as the learning process of early internationalization unfolds. Finally, the decision to internationalize early may not always lead to superior outcomes, but it often does. There is an apparent contradiction in learning theory regarding the role of preexisting knowledge for explaining post-entry performance and have suggested approaches and questions that might help unlock the mysteries of the paradox.

Rich opportunities thus lie ahead. We encourage international entrepreneurship researchers to align their deeply contextualized studies of new venture internationalization with core literature in learning theory. This alignment is essential if the international entrepreneurship field is to receive input from, and give back to, the broad domain of learning and there by achieve greater consistency within and across fields. Research in the field has expanded and is flourishing, offering different theoretical angles, a combination of methodological approaches, and a plethora of measures that capture various learning and knowledge drivers, pro- cesses, and outcomes of early internationalization. The development and empirical testing of theory-driven hypotheses, based on the insights provided herein, could move the field forward toward a better understanding of the causes, nature, and consequences of learning and knowledge among international new ventures. The mysteries that Oviatt and McDougall (1994) began to plumb 17 years ago are better, but not fully, understood by now. We encourage emerging pioneers in international entrepreneurship to continue the search.

Why SME internationalize themselves?

I Why should SMEs internationalize their experience of management team ?

The access to new more vast markets appears clearly as the most frequent motivation for the internationalization of the SME which export or have subsidiary abroad. It reflects the possibilities of spreading the market for the products of a company by exporting or by creating subsidiaries or joint-venture abroad. For SME which only export, access to new more vast markets isn't a reason much more valuable than the access to the know-how and to the technology or than the production costs raised on the national market. So the decision to go actively abroad doesn't simply constitute a step consecutive to the import, but rather than the various types of internationalization reflect various strategic objectives.

However, it's interesting to note that the access to new more larger markets is a motivation shared by the SME which only import. But it's difficult to find a solid explanation in this motivation, given that the mention " access to new markets or to more vast markets " can be interpreted in two different ways: a vaster market can relate to the market in which are intended the products of the company, or for the market of raw materials. For importers, the motivation of the access to more vast markets can be different according to the interpretation of the term "market". Importer of products, components or services can allow the company to acquire wider market shares on the national market for his products.

Access to know-how and to the technology:

It is interesting to note that the access to the know-how or to the technology represents the most frequent motivation companies which only import, and the second motivation the most quoted for SME having more complex forms of internationalization. Also, according to SME which only export, more than a one out of three make it with the aim of acquiring knowledge. So the decision to open on the international stage is not simply motivated by a potential increase of sales. Internationalization is also a very good way to acquire a know-how and to obtain an outline of useful technologies, as element of strengthening of the competitiveness of the SME.

Impulse or attraction

Motivation relatives to the access to new more vast markets, can correspond in reality to one of the both diferent motors for internationalization:

Motor of impulse ( push ) - the national market is too much for a highly specialized product or a niche product, or the competition on the national market is too intense.

Motor of attraction (pullover) - In a typical way, they intervene when foreign buyers have some demands not requested for a product, and also when an important customer ask to the company to join him on foreign markets.

Both types of motors seem very common in most of the European countries. The motor of attraction appeared as the most mattering in a Belgian study, in which 93 % of the SME questioned quoted a request emanating from foreign countries as motor of internationalization, and a similar result went out again in a luxembourg survey.

To return their distribution activities and commercial more profitable and to have a direct access to the information on the market, certain SME and industrial large companies establish their own distribution networks. It also is about a means of checking(controlling) the completeness of the process of distribution. By this process, the distribution and the trade become integral part of the industrial activities. We find examples of this type in the sector of the fashion (production and retail trade) and of the electronics. An agreement of cooperation based on the motivation to reach markets more spread for one of the partners and the motivation to reach the know-how and the technology for the other partner, can also become an interesting model of internationalization for more SME in the future. Such an agreement could be so built: a partner supplying the access to the market and the other partner an access to the development of new products. This can be associated with the cooperation increased between various companies within the valuable chain(channel). Besides, this Swedish survey(investigation) reveals a strategy of decrease of the dependence of small firms towards large companies, an aware(conscious) strategy on behalf of SME, to decrease their vulnerability and to make sure a long-term profitability.

Access to an additional production capacity:

The internationalization is also very often introduced with the aim of reaching subcontractors cheaper and/or to obtain an additional production capacity. This activity directed to the management of the production finds its roots in the industries where the activities were outsourced at the international level, because of high production costs or further to a strategic decision to concentrate on the skills "core business", which leads to the outsourcing of the other activities.

The retail trade establishes a particular case concerning the activities "importers". In Europe, certain companies of retail trade of products of common usage grew and became multinational companies.

These companies are typically present in numerous countries, as for example French

Carrefour-Promodes or Dutch Royal Ahold. The consequences are double for SME. First of all, such a multinational company benefits a position of strength regarding negotiation, which allows it to dictate the characteristics of the product and the delivered quantity, and also enables it to compress the margins of SME subcontractors.

Moreover, SME of this sector don't concentrate on the internationalization as main marketing strategy, but, because of the internationalization of large companies, with local orientation come up against a strong and increasing competition which, during the last years, pushed SME outside the market little by little.

II Theorical models

Three main theoretical currents are included in the economic approach to the internationalization of companies. In the course of transaction costs and especially the theory of foreign direct investment, internationalization of firms is seen as a choice between internalization and externalization of activities. The company chooses the organizational form that minimizes transaction costs.

Behaviourist model:

The theoretical framework of models in step by step is the behavioral theory of the firm. The firm acts on imperfect markets in a short-term perspective, is sumitted at the risk and continues the logic of survival rather than profit maximization. According to this theory the knowledge of a company relative to the market gradually increases over the time because of the high costs of information and because of the bounded rationality of managers. Behaviorist theory studies the behavior of firms as a process consists of defined sequences.

These sequences are marked by decisions taken on the basis of accumulated knowledge.

The acquisition of knowledge in a business is carried out by organizational learning. Most often, it is considered as an intentional process which try to improve the performance of a firm. It is done by various means are studying extensively in the literature. Besides the aspect of learning, organizational learning is also the distribution of information, interpretation and organizational memory.

Uppsala model:

The Uppsala model (U-model) developed by the Swedish School (Johanson and Paul Wiedersheim 1975; Johanson and Vahlne 1977) in the seventies still remains the reference in the study of the internationalization of SMEs . Internationalization is thought as a gradual process, which is performed by the steps. The authors has identified fourdiferent:

the company has no regular export activities

exports via an independent agent

implementing a sales subsidiary

and the production in the foreign country

The resources commitment is gradually and evaluated on information and experience gained.

The U-model is based on two fundamental concepts that are the psychological distance and gradual learning.

Psychological distance is defined as "factoring Preventing or disturbing the flows of information market and firm Between" (Johanson and Wiedersheim Paul, 1975). It is, for example, language, level of education, way of doing business, culture or industrial development. Althought it's often correlated with geographic distance, it can change with the development of communication and more generally social change. Psychological distance influences the choice of the country of entry and the resources committed to international development. It can decrease gradually as the company operates in the foreign market.

The second concept behind the U-model is the gradual learning which is the source of the incremental nature of internationalization. Indeed, the mechanism of internationalization is "the consequence of the process of incremental year adjustments to changing requirements of the firm and its Environment". A company that enters a foreign market is facing great uncertainty. In addition, the risk associated with the commitment of resources that is often irreversible, imposes great caution.

The mechanism of gradual learning provides an answer to these challenges through two aspects. In a first part it deals with problems and opportunities that arise for companies facing the international environment, it can find an answer and adopt their routines based on events that occur. In a second part, it helps to overcome the problems of knowledge acquisition. Depending on how knowledge is acquired, it is possible to distinguish two types. Objective knowledge that can be learned and tacit knowledge (experiential knowledge) that can only be transmitted. Tacit knowledge about foreign markets is a critical factor in the internationalization process. It is more difficult to acquire at the same time it is he who provides the framework to collect and exploit opportunities in foreign markets. Learning allows gradual acquisition of knowledge and especially tacit knowledge gradually adapted to the possibilities of the company.

The purpose of the U-model is to explain how an organization learns and how this learning influences their investment behavior. Knowledge markets may be general (marketing methods, the common characteristics of customers) or specific (market structure, business environment, the characteristics of individual customers). This type of knowledge can only be obtained by working on the given market, that is to say by experience. Its part of a company's commitment to foreign markets is measured by the amount and level of resources committed. There is a direct link between the two aspects of the static view of an enterprise internationalized. Indeed, the more the quality of information will be, the greater the resources involved in the market will be important.

The I-model:

Innovation model includes several models which have in common to consider the internationalization process as analogous to the diffusion of innovation. There are mainly four studies: Bilkey and Tesar (1977), Cavusgil (1980), Czinkota and Tesar (1982) and Reid (1981). These models differ mainly by the number of steps and the description of each. The mode of internationalization that is studied is the export and the subjects of the study are both SMEs and large enterprises. Moreover, the leaderplay an important role with his international experience and his understanding of the business. I-models are inspired by the Swedish school and maintain the vision of gradual internationalization and the importance of psychological distance as part of business development abroad. The main difference between the studies I-component model is the interpretation of export engines (Andersen 1993). The company is interested in exporting in the early stages and it's more active. This implies the existence of forces that make the internal process or agent involved in the pursuit Mechanism ("pull").

Problems that SME can see :

The problem of management of employees :

In a SME, a big problem is the employees/ employees and employees/ Boss. To resolve the solution, there are some things to do. The importance of that is huge because in a small or medium enterprise, the climate between people takes part in the efficiency of the firm. First, we have to talk with the employee. They may not realize their behavior is unacceptable and they should learn that you have the same objectives than them. Then, if you want that your employees listen you and do what you want, you have to justify your order. For example, if someone has to do something for you, you have to explain what the aim of this act is and what it could be good for the enterprise. An employee is more efficient if he knows why he has to do something. To conclude, if you really understand your employees you could be more efficient to manage them.

This image shows the relation between CEo and employees in famous enterprise in United States. Clearly, they are not a SME but we think that it is the same problem but in small enterprise it could be more harmful than a big. The evidence is there: if employees approve their boss they work well. For example, Google is very famous because everyone know that there is a lot of things for employees : break, video games, big place,… Thanks to that, employees are motivated and it have an impact on the efficiency of the firm.

Talking with employees is a good solution to avoid problems. The difficulty is that all of them are different and everything needs time. Because of one problem employees your production could be worse and it could hurt the morale of all the team. In the text Gavin video we see well that one comprehension's problem could affect all the people. If there are many cultures in the team, it could take more time because it is a little bit more complex. A problem in a work group can also have repercussion on customers. Indeed, employees speak or shows details which prove that they are not well. The efficiency of the enterprise could be less important.

The Management of resources :

Resource is a word a bit complex, and it is why we will define it. First, a resource is a good which is used to create something. For example, energies, water, wood, … are resources. But in a firm, resources are also the capacities, the ability and the intelligence of employees. Nowadays, because of a big turnover in firms, the intelligent resources are very rare and fragile. In SME, sometimes, just one employee knows how to do something. It shows that it is very important to share skills and human resources. We will see his point in the third part, called "skills". In this part, we are concentrated on the materials resources problem. In a small enterprise we have to manage well the management of resources. Resource management can include ideas such as borrowing money, making sure that the enterprise has enough physical resources for business, but not an overabundance, or making sure that people are assigned to tasks.

The problem of skills :

Skills are the ability of employees to do something. Skills should be learning to do certain act. Depending employees, some action cannot be done by everyone. It is a real problem for an enterprise, and more for a SME because there are not a lot of people who work in it.

According to Roland Hyams, there are 10 competences of employees. Which of them should be evaluated, shared to the good functionality of the enterprise. Let use shows you what they are:

The Knowledge management it is mainly in the company the management of the skills of the employees, the management of the knowledge of the company and the management of the resources. The Personal KM takes back similar principles, management of the personal skills, the management of the data, the information and the personal knowledge and the management of the network nobody

The manager's visions:

Shuman and Seeger wrote in 1986: «Smaller businesses are not smaller versions of big business (...) smaller businesses deal with unique size-related issues as well, and they behave differently in their analysis of, and their interaction with, their environment». Thus, based on these specificities «it might therefore be expected that the internationalization of SMEs would be different from that of larger firms due to: firm characteristics or behaviors used to overcome size-related challenges».

As saw previously, many reasons can explain why SME are going and selling abroad. Now, it will be central to describe the preeminence of founders and managers. A SME can be defined as an entity with a strong link between the founder and the company itself. Therefore the position of the founder and his aptitudes towards risks will hinge on lots of decisions which will shape the company. Some Scandinavian studies detail that successes in selling abroad are rather based on internal factors such as a good management or behavior of founder than on economic advantages. Moreover, it is really significant to point out the fact that the founder needs to have a vision to direct his firm's strategy. A second paragraph would connect the founder's aptitude and his vision toward the internationalization process.

Behaviors of managers

It is generally acknowledged in some studies that the behavior of the founder will determine if the firm will export or not: "le dirigeant de la PME exerce une influence directe et souvent sans partage aussi bien sur la decision d'internationalisation que sur sa mise en oeuvre" Allali 2002.

A great number of SME is counted and lots of studies try to define a trend and classes in order to classify SME but as a result, theorists explain that each SME was different. That is why there are so many diverse behaviors that lead to different way of internationalization. Some typologies are more precised like the Czinkota 's (1982) or Joyal's (1996) typologies. Actually, they offer a typology with 8 classes of behaviors but the 3 classes, which will be presented below are the most classic.

-the indifferent manager; it means they do not care of international perspective at the moment but a trigger either from an internal component such as an employee willing or from an external component such as the interest of several foreign customers would motivate them to sell abroad.

-the negative manager; these one are not open minded concerning the topic of international activities. They do not want to develop their business abroad even if it would mean an increase of revenues, there is a psychological barrier that prevents these founders to export.

-the positive manager; the last kind of managers agrees to sell abroad. They are not waiting a foreign customer's order on their national market. They will analyze on which market they will go and then launch their product abroad.

The manager's behavior could be influenced by several factors.

The first one is the cultural environment in which the founder evolves. It will affect the founder's personality. For example, a business founder coming from America will take more risks easily than a Japanese business man. Some founders would sell abroad simultaneously, contrary to others who will sell abroad in different countries step by step. These are different approaches to plan activities: sequential or synchronic. These different approaches could affect the founder. For example, one can imagine a business man who has a sequential personality. He will first set up his business and his activity in his national country, make sure it is safe before trying to sell abroad. On the other hand, the synchronic guy would launch his product onto several markets directly.

The type of industry is the second factor which can alter the behavior of a business man. In fact, working in a competitive industry would force some companies to sell abroad in order to survive. Besides, the industry could be completely different between two countries. Too many legal constraints to export would lead business man to not go abroad. Porter explains that the behaviors of managers are influenced by the power of the customers but also by suppliers' power.

The last one is the firm itself. Could the firm be strong enough to support national and international activities? Has the firm enough resources to succeed in? Does the firm get the right skills to sell abroad? The firm' strategy will influence the behavior of managers. If it is not planned in a short view, why will the manager change the strategy? The internationalization is a long term process, so managers must consider all dangers before selling abroad.

Factors will influence dissimilarly the behavior of the business man. As a matter of fact, the indifferent founder will be not affected strongly by these causes. As it is mentioned above, he is not looking for selling abroad if there is no order from foreign customers. The two other aptitudes are more interesting. In fact, they react more to these factors. The rejecting aptitude will react negatively. The factors will illustrate the point that internationalization is a "heavy burden". For them, there is no necessity to become international. They will go abroad only if they are threatened on their national market. Unlike the refusing one, the positive founder's aptitude would be in agreement with factors. These factors will strengthen the fancy of selling in new markets.

The positive founder towards internationalization has two positions.

The first one is a proactive position. It means that the manager is really interested in selling abroad. According to Johnston and Czinkota (1982), there are seven motivations which guide business man to new markets:

-exclusive information: knowledge of customers' needs, of the market

-entrepreneurial impulse: vision, motivation, desire, strategy

-unique product or service: unavailable for your competitors

-marketing advantage: differentiated marketing towards competitors

-revenues advantages: return on investment higher on an international level than on the domestic market

-technologic advantage: technological advance against your competitors

-unique network: the business man has a distribution network to sell products faster than competitors.

Concerning the reactive position, it means that the business man wants to internationalize his firm but hesitates on the way to drive it. He reacts positively to an external factor (Brooks & Rosson, 1984) and that is why he will export. For example declining domestic sales or a competitive pressure can force manager to internationalize his firm. According to Suzman and Wortzel (1984), 17% of companies never make market research before exporting for the first time; they just take into account the spontaneity of foreign customers' orders.

You will find below a scheme which explains and sums up the internationalization process toward the different behaviors of managers. As explained before, the starting point to internationalize concerns the managers' behaviors. And after, it results different effects in function of behaviors of managers. Finally either a firm decides to internationalize thanks to a proactive or a reactive decision or it will lead the firm to stay on the domestic market due to a negative perception. Internationalization is an innovative process because it requires a proactive approach, which implies a favorable attitude toward international expansion (Reid, 1981)behavior map

SME internationalization towards managers' behaviors

The process of internationalization is a willingness of the manager. The mental process of internationalization could be the following one. First, the manager is aware that there are opportunities on foreign markets. Then, the manager is interested by these opportunities. In fact it will either increase his sales or allow his firm to survive due to a competitive pressure. The manager thinks about selling abroad but he is not really sure. After, there is the step of the intention. It means that the manager takes the decision to sell abroad. And finally the manager adopts completely the process of internationalization and he transforms his firm to be operational and competitive on international markets. To put it in a nutshell, the internationalization's process is the following one:

Different authors detail the process of internationalization. They do not agree on the number of stages to be perfectly internationalized but they all accept the fact that internationalization is a slow process because of a risk-averse attitude and a lack of knowledge of the international environment. The example of the Cavusgil's theory (1980) is taken. He splits the internationalization's process in 5 phases which depicts a gradually increasing commitment to a foreign market:

-Domestic marketing: the firm sells only to the home market

-Pre-export stage: the firm searches for information and evaluates the feasibility of undertaking exporting

-Experimental involvement: the firm starts exporting on a limited basis to some psychologically close country

-Active involvement: exporting to more new countries -direct exporting- increase in sales volume

-Committed involvement: management constantly makes choices in allocating limited resources between domestic and foreign markets

The first step illustrates the state of the manager who concentrates all firm's resources on the domestic market. He does not care of the international context. Then, between the first and the second step, the manager takes into account the international environment. He becomes aware of the international perspective that is why he begins to research information about foreign markets. After gaining all required information, he will start to export in close foreign countries. The reason to this proximity is that close countries are generally close on a cultural level. It is the first experience abroad, and exporting in close cultural countries for managers who have a lack of knowledge of international selling is easier because there are fewer needs to adapt the product contrary to countries with totally different cultures. If the first experience is a success, the manager will be encouraged and so involved in more and more international activities. He will export further to distant (geographically and also culturally) countries. And finally, the last step is that the company is totally internationalized and the main issue for the manager now is to allocate resources and to balance between domestic and international activities. Does the company concentrate resources on international activities or does the company keep a large part of resources for the national market? Once the company is absolutely internationalized, the manager would normally allocate more resources to international activities because the turnover of the firm will increase thanks to foreign sales.

II- The relation between the vision and the internationalization process

Then it would be significant to explain the importance of the founder's vision. How could we define the notion of "vision"? The vision covers several aspects. A huge number of authors defined this notion. For some of them, the notion "vision" has a negative connotation. This pejorative connotation was used in the past but now it is more linked with a strategic aspect. In point of fact, Harel-Giasson (1995) explained that the notion meant for a long time "hallucination, dream or also fantasy". According to Collins' definition, in a figurative sense, the vision corresponds to "a vivid mental image produced by the imagination". For some authors, the vision can symbolize a negative aspect when the gap is too big between the reality and the future.

But other authors try to explain this notion in a business environment. Bennis and Nanus (1985) define the idea of vision as "a mental image of a future, possible and desired state of the organization". From Filion's point of view, vision is "a planned image of the future, the place we are willing to have thanks to our products and it is also the image of the organization we will need to succeed in".

As you could see, an abundance of meanings can tackle the notion of "vision". But the most important is to understand how it is developed in companies and which impact it has on internationalization process.

The notion of vision requires several functions:

-Human resources motivation

-Definition of goals inside the firm

-Implementation of a control's version

-Influence the change inside the organization

For Gluck (1984), the vision details precisely goals to reach and means to set up in order to obtain expected objectives. But a leader and manager in a same company will not apply the notion in the same way. For instance, Bennis and Nanus demonstrate that "by focusing attention on the vision, the leader operates on the emotional and spiritual resources of an organization, on its values, commitment and aspiration. The manager, by contrast, operates on the physical resources of the organization, on its capital, human skills, raw materials and technology".

On the next page, there is a scheme which links the vision of the manager with the decision to internationalize the firm and all steps which result from the manager's vision. The starting point is logically the vision of the manager. If the vision is fuzzy, it is obvious to say that actions will be improvised. The clearest the vision is, the better the actions could be planned and organized. In this model, the "vision" is an addition of 3 items: the vision of space, the vision of means, and the sharing of the vision. The vision of the space represents the mental image of the manager concerning the future place of his products, services or his company. The vision of means is considered as the mental image of what the manager will need to achieve his goals. Once he clearly defines the "space", he will determine means that will be required to reach future goals. And finally, the sharing of the vision is the last item. In fact, the vision cannot be individual. Without sharing the vision, there will be no involvement of employees and the manager will not lead his teams. He has to share his vision with his employees in order to motivate them. Thanks to the sharing of the vision, employees will be committed in the internationalization's process. One example could illustrate the item of sharing. Steve Jobs' vision was: "a computer for the rest of us". But his vision got clouded and he was ousted from his company. In fact, he did not share his vision with his employees and it led to bad financial results for his company. Employees were working on simple aspects but they did not understand the global issue due to a non-sharing of the vision.

Thanks to a clear vision, the manager and operating employees will define an adapted strategy to internationalize as best as possible. Once managers decide to internationalize the company, either they will have a planned strategy thanks to a clear vision or they will have an improvised behavior and internationalization process will be a learning process. In both cases, the company will be transformed to be operating on international markets. In function of performance, they will decide either to keep on internationalizing the firm with a stronger involvement or if there are negative feedbacks, they will try to change or to adapt the strategy and try again to perform well on international markets.

carte d'internationalisation

The manager's vision and the process of internationalization

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