A Note on the Criticisms Against the Internationalization Process Model

Abstract

The internationalization process model introduced three decades ago still influences international business studies. Since that time, a growing number of researchers have tested the model to show its strengths and weaknesses. Among the critics, some focus on the weakness of the theoretical aspects, while others argue against parts of the model. This paper will review these criticisms and compare them with the original ideas in the internationalization model.One criticized aspect of the internationalization model is the concept of commitment, which is treated by researchers via measurable indicators, i.e. tangible commitment. The aim of this paper is to study commitment from a different angle and deal with intangible commitments which are connected to the concept of psychic distance in the internationalization model.Exploration of the elements in commitment strengthens the model for the internationalization process. It also opens new doors for the use of the model for other internationalization modes, like project selling. To test the concept, a summary of a historical study in which firms lose their tangible commitments and rely only on intangible commitments is given.

Firm Resources and Host-Country Factors Impacting Internationalization of Knowledge-Intensive Service Firms

“…A good reputation may also allow business schools to attract graduate students from top universities worldwide. For reputable schools, internationalizing has the tremendous advantage of increasing revenue by assessing premium tuition fees because of a resource advantage (i.e., brand reputation) (Hadjikhani, ; Johanson & Vahlne, ), and students are willing to pay a premium for this advantage in countries such as Singapore, India, and China. Customers (students) tend to evaluate brand names with signals of quality and value.…”

Brand management and internationalization: A case study in the sports equipment industry

“…According to Forsgren (2002), by operating in the market, the fi rm not only acquires information about that market, but also becomes closely connected to the market in such a way that it is diffi cult to use its resources for other purposes. Hadjikhani (1997) has coined the expression 'intangible commitments' when analysing this phenomenon.…”

Internationalisation des PME : une expansion non-linéaire, entre désinternationalisation et réinternationalisation

“…S'ils restent accessibles à l'ensemble des entreprises, ces réseaux semblent particulièrement efficaces dans le cas des entreprises vulnérables au regard des prestations qu'ils proposent (accompagnement) et de leur apparente neutralité. A l'image d' Hadjikhani (1997), Welch et Welch (2009) et Vissak et Francioni (2013), nos résultats montrent que les réseaux constituent bien un facteur moteur de la réinternationalisation -notamment au niveau du choix de la localisation. Ils précisent qu'une distinction peut être appliquée selon les types de réseaux mobilisés au regard de leur timing d'utilisation et de leurs apports différentiés.…”