Kent Eriksson

EXPERIENTIAL KNOWLEDGE AND COST IN THE INTERNATIONALIZATION PROCESS

In furthering our understanding of the dynamics of the internationalization of firms, process models have played a significant role [Bilkey and Tesar 1977; Cavusgil 1980, 1984; Czinkota 1982; Johanson and Vahlne 1977, 1990; Luostarinen 1980; Reid 1983]. In these models, market-specific experiential knowledge is central in explaining the firm’s internationalization process. A vast amount of research, using the concept of experiential knowledge, on the internationalization process and the choice of mode for entering foreign markets has been accumulated [Barkema, Bell and Pennings 1996; Beamish 1990; Calof and Beamish 1995; Erramilli 1990, 1991; Erramilli and Rao 1990, 1993; Hirsch 1993; Kogut and Singh 1988; O’Grady and Lane 1996; Reid 1984; Root 1987; Sharma and Johanson 1987; Wiedersheim-Paul, Olson and Welch 1978]. Surprisingly, none of the above-mentioned work has explicitly dealt with the cost of the internationalization process. This is surprising since the management of internationalization unavoidably gives rise to the question of cost [Carlson 1974]. An internationalization process entails risk and the investment of resources. Here the issue of the effects of the critical experiential knowledge on the cost of the internationalization process becomes important. Cost aspects have a bearing on the profit generated by firms [Bilkey 1982], on a firm’s inclination to enter foreign markets [Dichtl, Koeglmayr and Mueller 1990], and on the selection or changing of foreign market entry mode [Calof and Beamish 1995].

Creating Value through Mutual Commitment to Business Network Relationships

A structural model of business relationship development in a business network context is formulated and tested on delta from the European International Marketing and Purchasing (IMP) project. The e ...

Customer acceptance of internet banking in Estonia

Purpose – The purpose of this paper is to study technology acceptance of internet banking in Estonia, an emerging east European economy.Design/methodology/approach – The present paper modifies the technology acceptance model and applies it to bank customers in Estonia, because Estonia, a country with a developing economy, has focused on internet banking as an important distribution channel.Findings – The findings suggest that internet bank use increases insofar as customers perceive it as useful. The perceived usefulness is central because it determines whether the perceived ease of internet bank use will lead to increased use of the internet bank. Put differently, a well‐designed and easy to use internet bank may not be used if it is not perceived as useful. We thus conclude that the perceived usefulness of internet banking is, for banks, a key construct for promoting customer use. We also suggest that models of technology acceptance should be re‐formulated to focus more on the key role of the perceived ...

Effect of Variation on Knowledge Accumulation in the Internationalization Process

Abstract This article examines the effect of variation in the geographical scope of international business operations on experiential knowledge development in the internationalization of the firm. Based on learning theory, this article develops five hypotheses on the effects of variation on three interrelated components of international experiential knowledge: internationalization knowledge, business knowledge, and institutional knowledge. LISREL analysis indicates that variation has a positive effect on the accumulation of experiential knowledge in internationalizing firms. In particular, it demonstrates that internationalization knowledge is a key variable that mediates the effect of variation on the other knowledge variables.

Customer Retention, Purchasing Behavior and Relationship Substance in Professional Services

Customer retention is central to the development of business relationships. However, customer retention is specific to the context of each firm, and this is rarely recognized in models for customer ...

The adoption of commercial innovations in the former Central and Eastern European markets : The case of internet banking in Estonia

Purpose – Businesses developed in Western markets may be so new to emerging and developing markets that they can be considered innovations. Knowledge of innovation adoption is therefore essential f ...

Domestic Activity and Knowledge Development in the Internationalization Process of Firms

This paper is based on behavioral theory on internationalization, examining the effect of firms operations in the domestic market on experiential knowledge development in the internationalization of the firm. Five hypotheses are developed on the effects of business operations in the domestic market on: internationalization knowledge, business knowledge and institutional knowledge. The LISREL analysis of 206 firms shows that domestic operations effect the accumulation of experiential knowledge in internationalizing firms. We found that it is harder for a firm with long domestic experience to change their mental models and processes in the internationalization process.

Mutual commitment and experiential knowledge in mature international business relationship

This paper examines how market knowledge and market commitment are developed in mature supplier/customer relationships in international markets. It reports the empirical testing of a model of increasing commitment and experiential knowledge development in international business relationships. The assumption is that the connected relationships in a business network are the basis for forming a relationship and it will influence how the focal relationship develops. The model shows the process when a supplier increases his or her knowledge of the business network that a foreign customer is embedded in and what happens as their relationship with the customer becomes mature, stable and profitable. In this situation the firm does not invest as much as it did early on in the relationship but diverts its attention to firms that are more embedded in the local business network context. The model thus explicates a process of transition as a firm moves from one mature relationship to create new relationships as it increases its foreign market involvement.

Service quality by relationships in the international market

Investigates managers’ perceptions of service quality in the international market. Eight propositions are developed using the relationship approach in industrial marketing and the internationalization process model. A structural LISREL‐based model is developed on the basis of a sample of 196 firms which supply business services abroad. The results suggest that customer relationships, industry relationships and unique competence strongly influence supplier‐perceived service quality in international markets.

Modeling uncertainty in buyer-seller cooperation

The realization of relationship marketing requires cooperative exchange between buyers and sellers. A key determinant of cooperative exchange is the uncertainty perceived by the cooperating parties ...