Take Off Nodes and Initial Stages of Internationalization: The case of Midsized Firms from the Emerging Chinese Market
ABSTRACT
The purpose of this paper is to describe and analyze the take off nodes and initial stages of internationalization
of the less researched midsized firms from the emerging market of China. Aspects of the take off situation
(when the firm go abroad from the domestic market), the initial stages of internationalization, and the usage of
cluster as take off node (how the firm go abroad from the (domestic) local market network) will be discussed.
Primary data from a case study of five internationalizing Chinese midsized firms will be presented, as well as
secondary data concerning industrial clusters in China. A theoretical contribution is made by combining
industrial network theory with internationalization process theory as well as cluster theory. Major results
concern (1) the take off situation of the Chinese firms where they not follow assumed paths due to special
characteristics of the emergent domestic market, (2) the initial stages of internationalization being dominated
by an indirect export mode which exclude the building of international relations being key in the
internationalization process of firms, and (3) clusters are seen as take off nodes when used as export clusters,
being a springboard for individual rather than collective internationalization of Chinese midsized firms.
KEYWORDS
Internationalization processes, Industrial network approach, Take off node, Cluster, Chinese midsized firms
INTRODUCTION
THEORETICAL FRAMEWORK
A network model to internationalization of smaller firms
Internationalization of Chinese firms
Clusters and competitiveness of internationalizing firms
METHODOLOGY
EMIRICAL ANALYS
Overview of the internationalization process of the case companies
The take off situation
Competitiveness of the firms
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