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Parachuting internationalization: a study of four Scandinavian firms entering China
Stockholm University, Faculty of Social Sciences, Stockholm Business School.
Stockholm University, Faculty of Social Sciences, Stockholm Business School.
Stockholm University, Faculty of Social Sciences, Stockholm Business School.
Number of Authors: 4
2017 (English)In: Cross cultural & strategic management, ISSN 2059-5794, E-ISSN 2059-5808, Vol. 24, no 4, 554-589 p.Article in journal (Refereed) Published
Abstract [en]

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.

Place, publisher, year, edition, pages
2017. Vol. 24, no 4, 554-589 p.
Keyword [en]
China, Uppsala Model, Yin Yang, Born Global Model, GLOCAL, Parachuting internationalization
National Category
Economics and Business
Identifiers
URN: urn:nbn:se:su:diva-149040DOI: 10.1108/CCSM-02-2016-0041ISI: 000412870400002OAI: oai:DiVA.org:su-149040DiVA: diva2:1157485
Available from: 2017-11-16 Created: 2017-11-16 Last updated: 2017-11-16Bibliographically approved

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