Article Synthesis

Topics: International trade, Internationalization, Globalization Pages: 7 (2277 words) Published: April 3, 2013
Article synthesis assignment

Table of content
2Summary of each article2
2.1The mechanism of internationalization article summary2
2.2The internationalization of small computer software firms article summary2
3Main ideas of articles3
3.1The most important of article3
3.2Main argument of article3
3.3Criticize previous approaches4
4How articles have been built?4
4.1Concept and definitions4
4.1.1“The mechanism of internationalization”4
4.1.2"The Internationalization of small computer software firms"5
4.2Empirical results supports of the main argument5
5In the practice6
5.1Help of article to internationalization of firm6
5.2Our opinion, what is the practical relevance6
6Comparison of the articles6

This work presents the most important point of each article chosen. A discussion based on how those informations are important in practice, in work life will follow. Then, at the end, we will compare and highlight the commonalities and the differences of each article. The chosen articles are: The mechanism of internationalization by Johanson Jan, 1990 and Vahlne Jan-Erik and The internationalization of small computer software firm by Bell Jim, 1995. Both of them cover the topic of the Upsalla model and the critics that the model has received.

Summary of each article
The mechanism of internationalization article summary
Growth of the firm is seen as a process in which the company gradually increases its international involvement. Experimental business knowledge generates market opportunities and a driving force in internationalization. Is expected that those who operate in international market are trained to see opportunities and problems and solve those to make the market less uncertain. The first pattern of internationalization explains that even if in the start the company has no regular export activities, export can take place through a series of process. The second pattern explains the psychic distance and how the company’s way to operate differs from the country that has been entered. The electric paradigm predicts where the production is most beneficial to start to get the best advantage, whereas the internationalization model takes only the psychic distance into account. Through research the model has gained strong support that commitment and experience are important factors to explain international business behavior. Due to the facts the internationalization is commonly made first to culturally close countries. Although the model has been criticized to be too precise, since market conditions and transaction costs often determine whether to go international or not. Also the model is not valid for service industries. A note is that advantages of internationalization bring different benefits than transaction advantages. That is why internationalization process should be researched next to the related surrounding processes because international markets are changing constantly. Especially personal relationships and networks can help to balance the uncertainty of the markets. (Johanson and Vahlne, 1990) The internationalization of small computer software firms article summary The stages of the internationalization related to the Uppsala model are discussed and debated in this paper. Throughout the article, the stages of the internationalization are not always followed by the enterprises and the motives can be different from the theory. Although, all the internationalization model theories propose an incremental “stages” approach, the precise number of stages is often contested and the process can be faster than described. J.Bell, has based his research on a previous study, in which 187 firms belonging to the software producers industries from Ireland, Norway and Finland were surveyed. The findings arise out from both quantitative and qualitative research. Firstly, it appeared that most of the...

References: Johanson Jan and Vahlne Jan-Erik (1990), The mechanism of internationalization, International marketing review, vol. 7, no. 4, pp.11-24.
Bell Jim (1995), The internationalization of small computer software firms. A further challenge to “stage” theories, European journal of marketing, 29 (8), pp. 60-75
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