Daniel Tolstoy

Network development and knowledge creation within the foreign market : a study of international entrepreneurial firms

The aim of this paper is to contribute to international entrepreneurship theory by adopting a foreign market perspective when examining the links between network development and knowledge creation. Network development is argued to enhance the understanding of regional market structures and make firms more inclined − and better able − to create knowledge in foreign market business relationships (business relationships represent focal points in networks). The basis of this argument is that networks provide a multitude of opportunities for the exploitation of previously unexploited combinations of knowledge. Data were gathered from surveys conducted with an effective random sample of 188 small and medium-sized enterprises (SMEs) in Sweden. A LISREL-based analysis was performed to test the three hypotheses deduced from theory. Findings showed that network development has a direct positive impact on knowledge creation and that knowledge combination functions as a mediating construct between network development and knowledge creation.

Differentiation in foreign business relationships: A study on small and medium-sized enterprises after their initial foreign market entry

This article critically evaluates the notion that strategic flexibility related to products, business relationships and networks is critical for international small and medium-sized enterprises (SMEs) attempting to differentiate their firms in foreign business relationships. A model is developed to investigate the interrelatedness of these types of flexibility and their discrete effects on business differentiation in foreign business relationships. It is used to analyse a dataset covering 314 Swedish SMEs; the types of flexibility investigated were found to have positive effects (direct and indirect) on differentiation in foreign business relationships.

A thematic analysis of research on global sourcing and international purchasing in retail firms

Purpose – The purpose of this paper is to offer a thematic analysis of global sourcing and international purchasing issues in international retail firms. Design/methodology/approach – We review literature that addresses purchasing/sourcing activities of retail firms in foreign markets. We categorize this literature into different themes and analyse how these themes are conceptually or empirically linked to performance. We then use the thematic analysis as a foundation for suggesting potential avenues for future research. Findings – Four distinct themes emerge from our literature review. Originality/value – There is a lack of research that addresses how retail firms can extract value from global sourcing and international purchasing activities. A thematic review, along with a careful classification of different themes, could lead to an enhanced understanding of the processes and objectives that underpin global sourcing and international purchasing activities in retail firms.

The Effect of Personal Interaction on the International Technology Development of SMEs

Abstract This study investigates the potential effect of personal interaction on international technology development in relationships between Small and Medium Sized Enterprises (SMEs) and their foreign customers. The mediating effect of knowledge transfer between these firms and their customers is also examined. The results of a LISREL analysis of 188 relationships between SMEs and their foreign customers demonstrate that the effect of personal interaction on international technology development is not direct but rather is mediated by knowledge transfer. Hence, the study suggests that before international technology development can be enhanced, knowledge transfer needs to be established.

New product development in foreign customer relationships: a study of international SMEs

Abstract This study identifies a gap in research concerning how small and medium-sized enterprises (SMEs) can benefit from pursuing locally (rather than globally) oriented internationalization strategies. Becoming overly dependent on one single foreign market could potentially reduce the inflow and diversity of new knowledge that can serve as input for new product development. This study discusses how this risk can be minimized. In this endeavour we create a theoretical model that investigates how the local sales concentration and relationship-specific commitment of SMEs relates to new product development. To do this we draw on the behavioural internationalization process framework. The theoretical model is tested on an effective sample of 188 Swedish SMEs. The results show that relationship-specific commitment mediates the effect of local sales concentration on new product development. The implication is that investments which enable collaboration in important business relationships are crucial requisites for keeping firms innovative and in pace with market fluctuations. The findings thus contribute to international business literature by showing that a local market scope of operations combined with a relationship orientation are beneficial for new product development in international SMEs.

The Influence of a Retail Firm’s Geographic Scope of Operations on Its International Online Sales

ABSTRACT While previous research has advocated the use of online sales channels as a driver for international expansion, the nature of the relationship between e-commerce and international sales is still unexplored. The purpose of this paper is to create a parsimonious model where we investigate whether, and to what extent, strategies pertaining to the geographical scope of international operations moderate the effect that online sales channel adoption has on international sales of retail firms. Based on a sample of 562 Swedish retail firms, using a multiple regression method, we are able to demonstrate that online sales channel adoption has a positive effect on international sales. The effect is, however, negatively moderated by geographical export scope. The study contributes to research focusing on e-commerce in internationalizing retailing firms by specifically demonstrating that strategic considerations related to the geographical scope of operations are likely to have significant effects on their international sales performance.

International entrepreneurship research during the last decade: a review

A major contribution of the international entrepreneurship (IE) research field is that it has enhanced our understanding of the marketing challenges early internationalising firms face when they compete in constantly changing foreign markets. During the past decade, IE-research has, moreover, gone from focusing on the early internationalisation of firms to investigate the entrepreneurial processes of new business creation in foreign markets. However, ambiguity still exists regarding the level of analysis that ought to guide this new line of research. This article contributes by increasing our knowledge about the recent development in the international entrepreneurship research field by reviewing empirical studies performed between 2003 and 2011. The review focuses on the ontological perspectives used as well as the methods and theories that are adopted in the studies. Based on this review, the article contributes with a discussion about the evolution of the international entrepreneurship research field.

International Entrepreneurship at the Foreign Market Level: Towards a Network Perspective

The purpose of this chapter is to contribute to research in the field of international entrepreneurship by complementing existing levels of analysis with a network perspective that captures how the pursuit of international opportunities at the foreign market level unfolds through processes ingrained in the network structures that firms are embedded in. By performing a multilevel review of 50 studies within the international entrepreneurship research field, the chapter contributes with an analysis of the evolvement of the international entrepreneurship field between the years 1994 and 2010, a discussion of the fields current status and where it is going from here. The results of the review show that whereas early work in the field of international entrepreneurship is primarily concentrated on individual entrepreneurs or individual firms, network-level-focused studies dominate among the later publications. Studies that adopt explicit network approaches have the potential to contribute to international entrepreneurship research by being able to shed light on the actual mechanisms and processes by which foreign market opportunities are exploited.

The development of international purchasing capabilities: a comparative study of the four largest Swedish construction firms

ABSTRACT While there is a growing stream of research addressing purchasing issues, we know little about how the internationalization of purchasing activities unfolds. The study contributes to the sparsely empirically and theoretically substantiated field of international purchasing by, based on empirical support, providing an analytical framework which can improve our understanding of international purchasing by offering an integrated view of a business relationship perspective and a capabilities perspective. The purpose of this article is to track the actual prerequisites behind the development of international purchasing capabilities. In this article, we study the nearly simultaneous implementation of international purchasing strategies in the four largest construction firms in Sweden to be able to compare and contrast the underlying mechanisms and outcomes of these processes. We find that the firms that had developed capabilities incrementally in supplier relationships were better able to reap cost--benefits from international purchasing than firms that had not.

Pursuing Innovation: An Investigation of the Foreign Business Relationships of Swedish SMEs* : Innovation: Foreign Business Relationships of Swedish SMEs

The aim of this study is to contribute to the international business field and research on the innovativeness of international SMEs, by addressing the following research question: To what extent and under which circumstances does relationship connectedness affect perceived innovativeness in international SMEs? To answer this question, the authors create a model that examines the mediating effects of two types of foreign business relationship strategies: relationship differentiation and relationship investments. In order to create this model, the authors draw upon behavioural internationalization process theory, network theory and research into SMEs. The findings reveal that relationship investments mediate the effect relationship connectedness has on perceived innovativeness. This study contributes to research about the innovativeness of international SMEs by showing that being connected to resources in the network is not, in itself, a guarantee of becoming or remaining innovative in foreign markets.