Enfoques de la Internacionalización de Una Empresa PDF

# **ENFOQUES DE LA INTERNACIONALIZACIÓN DE UNA EMPRESA** **Lic. J. Carlos Machicao R** ## **Introducción** The document discusses the different approaches to internationalization of a company, particularly focusing on: - **Internationalization as a Process:** This view emphasizes the internal pe...

# **ENFOQUES DE LA INTERNACIONALIZACIÓN DE UNA EMPRESA** **Lic. J. Carlos Machicao R** ## **Introducción** The document discusses the different approaches to internationalization of a company, particularly focusing on: - **Internationalization as a Process:** This view emphasizes the internal perspective of the company, considering it as an additional process added to the company's existing operations. Examples include implementing operational procedures like customs clearance. Authors like Fanjul (2021) describe it as the company developing activities beyond its domestic market, including sales, sourcing, production, etc. - **Internationalization as a Strategy:** This approach considers internationalization as an integral part of the company's overall strategy, encompassing comprehensive planning with specific goals. While export activities can be an indicator, they might not be the sole or most significant factor in achieving internationalization. - **Internationalization as Foreign Trade:** This perspective focuses on understanding international trade flows, particularly within the context of customs regulations. It emphasizes the exchange of goods and services, as described by Canals (1994). ## **Historical Context** During the 1970s and 1980s, there was an increasing concern about how companies were expanding into international markets. Initially, businesses sought to gain a competitive advantage, but later, the focus shifted to developing a competitive advantage. ## **CAGE-GHEMAWAT Model** The CAGE-GHEMAWAT model, detailed in Table 3, outlines four key dimensions for analyzing internationalization strategies: | Dimension | Factors | |---|---| | Cultural | Language, values, work culture, religion, ethnicity | | Administrative | Local legislation, technical standards, currency, calendar, political climate, availability of skilled local workforce | | Geographic | Physical distance, lack of shared borders, time zone differences, climate differences, health risks, transportation infrastructure | | Economic | Cost of living, employee capabilities, availability of skilled workforce, ease of doing business | ## **Theories of Internationalization** Table 4 summarizes contributions from various theories and key authors, outlining approaches to internationalization: | School | Aporte/Contribution | Author(s) | |---|---|---| | Classic Theory | Emphasizes comparative advantages between countries | Ohlin (1933) | | Product Life Cycle | Focuses on the interdependence between the product life cycle stage and internationalization | Vernon (1966) | | Uppsala Model | Analyzes how companies gradually internationalize | Johanson & WiedersheimPaul (1975), Johanson & Vahlne (1977, 1990), Olsen & Wiedersheim-Paul (1978) | | Porter’s Paradigm | Emphasizes advantages of location in the company's home country | Porter (1990) | | Strategic Theory | Explores the interdependence between product life cycle stages and internationalization | Bartlett & Ghoshal (1987a, 1987b, 1989), Ghoshal (1987), Hamel & Prahalad (1985), Doz (1986) | | Internalization Theory | Applies the concept of transaction costs to internationalization | Buckley & Casson (1976), Buckley (1988), Hennart (1982, 1989), Teece (1986), Krugman (1981, 1986) | | Dunning’s Paradigm | Classifies internationalization factors into ownership, internalization, and location advantages | Dunning (1979, 1980, 1981, 1985, 1995, 1997) | ## **Key Concepts & Definitions** - **Internationalization:** It refers to the process of a company extending its operations beyond its domestic market. It involves considering the role of the State and its borders, which control the flow of goods and services. - **Internationalization of Companies:** The concept applies to both individuals and legal entities. It focuses on the company's ability to offer goods or services in a foreign market. - **Goods and Services:** Internationalization can involve both the export of goods and services. Goods typically go through customs procedures, while services can have more varied internationalization models. - **A Set of Operations:** Internationalization strategies involve a conscious decision by company leaders to expand into foreign markets as part of their growth plan. This involves implementing various strategies to reach the desired market. - **Rationality:** The decision to internationalize should be driven by a rationale based on the profitability of the company's international operations. Factors such as expanding the brand, accessing new markets, and earning income in foreign currencies are considered. - **Strategic Decision:** Internationalization involves a fundamental, structural decision by the company. It requires a competitive product or service, and it necessitates a robust operational framework encompassing logistics, administrative, legal, financial, and accounting aspects. - **Beyond Mere Export:** Internationalization is more than just selling products abroad. It requires negotiating product offerings effectively and utilizing tools and resources that support both the company and its international partners. - **Stable Relationships:** Internationalization aims to establish sustainable relationships between the company and foreign markets. The process is dynamic, requiring adaptability and adjustments as the company's business model evolves. - **Gradual Process:** Companies internationalize through a gradual process of increasing involvement and projection. This occurs through a sequence of stages, starting from initial partnerships to developing a direct presence.