From going international to being international - strategies for international competitiveness

Abstract

While the international business and international entrepreneurship literature has commonly focused on market entry mode choices, the increase of a firm's international involvement causes changes in different aspects, such as the configuration of value chain activities, the design of the organisational structure and business processes. Given the inconclusive research on the relationship between internationalisation and corporate performance, we argue that the impact of internationalisation on a firm's competitiveness is contingent on its stage of advancement. The analysis of four case studies shows that different dimensions of competitiveness are affected at rising levels of commitment to foreign markets. However, the organisational challenges related to managing international operations require strategy adaptations so that the firm can remain internationally competitive. (original abstract)