Although internationalization processes have been very actively studied since the 1970s, most attention has been paid to two types of companies: those internationalizing slowly, starting from a few closest countries and simpler foreign operation modes, and those that enter several markets – some very distant – and use more complicated modes since establishment. These research streams have mostly focused on growth, while nonlinear internationalization – de- and re-internationalization – has received less research attention although several authors have emphasized the need of studying such internationalization patterns. This paper aims to contribute to the international business literature by discussing the nature of nonlinear internationalization based on a case study of an Italian firm MVM Meccanica Valle Metauro S.r.l. and identifying causes of nonlinearities. This company has been active in more than 20 countries (taking into account also its activities in the 1990s) and it has not experienced constant growth in any of them. In the 2000s, it has had activities in 15 markets. From these, it has had at least a year of no export activities after entry in 11 markets. In Austria, Germany and the UK, this occurred twice: the firm exported there, then did not, then exported again and then again did not. It had activities for 11 subsequent years only in two countries out of 15 – France and Spain – but its exports fluctuated considerably. Thus, the company has experienced both de-and re-internationalization several times. The paper concludes that nonlinear internationalization may be caused by different internal and external factors and actors; that it can occur several times, that foreign market exit may be temporary and permanent and that de-internationalization does not always mean a failure for the company as it may be a deliberate strategy and if not, then sometimes a useful source of learning. Moreover, some network contacts may become useful again later.
Nonlinear Internationalization: The Case Of MVM Meccanica Valle Metauro S.R.L.
FRANCIONI, BARBARA;MUSSO, FABIO
2012
Abstract
Although internationalization processes have been very actively studied since the 1970s, most attention has been paid to two types of companies: those internationalizing slowly, starting from a few closest countries and simpler foreign operation modes, and those that enter several markets – some very distant – and use more complicated modes since establishment. These research streams have mostly focused on growth, while nonlinear internationalization – de- and re-internationalization – has received less research attention although several authors have emphasized the need of studying such internationalization patterns. This paper aims to contribute to the international business literature by discussing the nature of nonlinear internationalization based on a case study of an Italian firm MVM Meccanica Valle Metauro S.r.l. and identifying causes of nonlinearities. This company has been active in more than 20 countries (taking into account also its activities in the 1990s) and it has not experienced constant growth in any of them. In the 2000s, it has had activities in 15 markets. From these, it has had at least a year of no export activities after entry in 11 markets. In Austria, Germany and the UK, this occurred twice: the firm exported there, then did not, then exported again and then again did not. It had activities for 11 subsequent years only in two countries out of 15 – France and Spain – but its exports fluctuated considerably. Thus, the company has experienced both de-and re-internationalization several times. The paper concludes that nonlinear internationalization may be caused by different internal and external factors and actors; that it can occur several times, that foreign market exit may be temporary and permanent and that de-internationalization does not always mean a failure for the company as it may be a deliberate strategy and if not, then sometimes a useful source of learning. Moreover, some network contacts may become useful again later.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
