TABLE 3
FROM:
The Time Scale of Internationalisation: The Case of the Container Port Industry
Daniel Olivier, Francesco Parola, Brian Slack and James J Wang
BACK TO ARTICLETable 3. Various evolutionary models of the internationalisation of firms
| Author(s) and year | Model (type) | Sequential phases | |||||
|---|---|---|---|---|---|---|---|
| I | II | III | IV | V | VI | ||
| Chandler, 1962 | NA (evolutionary) | Small firms | Smaller national business organisations | Large national business organisations | Global corporations | — | — |
 K. Akamatsu, 1960sK. Kojima, 1970s (1) | Flying Geese Theory of Development (evolutionary) | Closely associated with product-life cycle where products migrate to an innovative core (leading countries) to peripheries (followers). Japan's 'sunset' industries become Asia's 'sunrise' industries. Stage I: Process: foreign importSpace: JapanTime: 1950s postwar | Process: Import substitutionSpace: JapanTime: early 1960s | Process: Export-led productionSpace: Japan to Asia. Production relocation to NIEs beginsTime: late 1960s–1970s |
Process: reverse production where leader begins to import from export-driven followersSpace: Japan's industrial structure upscaling to higher value goods. Further stages of relocation: ASEAN, China, Vietnam/India, etc.Time: 1980s and 1990s | — | — |
| Vernon, 1966 (2) | Product life-cycle (evolutionary) | US home-base production exported | Locational shift in production sites from US to Europe. US exports to LDCs | Europe exports to LDCs. | Europe exports back to US. | LDCs export back to US | — |
| Perlmutter 1969 (3) | The Ethno-Centric Firm | 'Ethno-centric': highly nationalistic and centralised controlled by home HQ. | 'Geo-centric': de-centralised with increasing degree of localisation, locals head subsidiaries. | 'Poly-centric': highly cosmopolitan, pluralistic and multi-cultural approach. | — | — | — |
| Taylor 1975 (4) | NA (evolutionary) | Single plant, single region enterprise | Multi-plant, single region enterprise | Establishment of inter-regionl sales office | Inter-regional warehousing and production | — | — |
| Johanson and Vahlne, 1977 | The Internationalisation model (a.k.a. the Uppsala model) (behavioural) | Domestic market focus | Export via overseas agents | Establishment of an overseas subsidiary | Overseas production manufacturing | — | — |
| Håkanson, 1979 (3) | NA (evolutionary) | Single plant firm | Penetration of the national market | Overseas sales agent (plus horizontal diversification in home country) | Foreign sales subsidiariy (plus horizontal diversification in home country) | Foreign production | Concentric and conglomerate diversification |
| Dunning, 1979 | OLI eclectic paradigm (evolutionary) | Low level of development, little inward and outward investment | Inward investment increases, export substitution principles implemented | Inward investment declines while outward increases, labour-intensive industries attracted | Inward < outward investment, production is transnationalised | Convergence of inward and outward investment flows from factor endowment advantages and internalising markets | — |
| Bartlett and Ghoshal, 1989 | The 'transnational solution' (typological) | Multinational firm: (1) Decentralised and nationally self-sufficient, (2) sensing and exploiting local opportunities, (3) knowledge developed and retained within each unit | Global firm: (1) Centralised and globally scaled, (2) implementing parent company strategies, (3) knowledge developed and retained at the center | International firm: (1) Sources of core competencies centralised, others decentralised, (2) adapting and leveraging parent company competencies, (3) knowledge developed at the centre and transferred to overseas units | Transnational firm: (1) dispersed, interdependent, and specialised; (2) differentiated contributions by national units to integrated worldwide operations; (3) knowledge developed jointly and shared worldwide | — | — |
| Ohmae, 1990 | 5-stage globalisation model (evolutionary) | Export orientated company (develop strong product base in home market) | Establish overseas branches | Relocating production base to key markets | 'Insiderisation': transferring corporate functions from parent firm HQ to new local environment | Complete global company: establishing global branding | — |
| DiMaggio and Powell, 1983
Orrù et al, 1997
Markusen and Venables, 1998
| Organisational isomorphism/Convergence theory (evolutionary) | Gradual process of homogenisation of firms as firms follow leading 'best practices' and as transnational institutional environments converge (eg the global trade environment standardises) | — | — | — | — | — |
Notes: (1) in Korhonen (1994); (2) from Dicken (1998); (3) in Warner et al. (2004); (4) in Taylor and Thrift (1982).
