According to the network approach [Johanson and Mattson 1988], internationalization is seen as a process of continuously establishing, developing, maintaining, and dissolving relationships with the goal of achieving the company's goals. By establishing relationships through interaction, the two sides build mutual trust and knowledge. These relationships are connected by a network of companies including customers, competitors, supplemental suppliers, suppliers, distributors, agents, consultants, and regulators and other public institutions [Johanson and Vahlne 1990]. Assuming there is no good network in the international market, the company will face the problem of future growth. According to Johansson and Mattson [1988], the company's internationalization began with a company that was primarily engaged in a domestic network. The company then internationalized by developing network relationships in other countries.
The main purpose of these networks, especially those born globally, is related to reducing the uncertainty at the beginning of cooperation with new partners [Solberg 1999]. According to Johanson and Vahlne's network approach can be seen as an extension of the internationalization process. They pointed out that considering the expansion of the network perspective, the concept of "commitment, knowledge, current activities and committed decisions" should be considered as a multilateral rather than a unilateral, just like the original model. This means that the process is also inter-organizational, not just within the organization [Johansson and Vahlne 1990: 19].
The importance of company and personal relationships varies by industry and country. Johanson and Vahlne [1990] pointed out that the network is particularly important in the turbulent high-tech industry.
in conclusion
Lindqvist's [1988] study of the internationalization of small high-tech companies shows that some people do not follow the traditional internationalization model, but instead go directly to more distant markets and build their own subsidiaries faster. One reason seems to be that the entrepreneurs behind these companies have a network of international colleagues who handle new technologies. The literature on the Internet enables the application of internationalized Internet to include tools that enable more efficient international business processes, as well as tools for facilitating, information and communication [Hamill and Gregory 1997, Samiee 1998]. Samiee [1998] argues that using the Internet can automate business processes that have traditionally been performed manually. Bidding, purchasing, inventory management, and order/ship tracking are examples of processes that may be automated over the Internet in an international environment. The Internet can also be used as a tool to increase revenue, such as direct sales, promotions, and as a communication tool [Samiee 1998]. According to the website provided by Hamill and Gregory [1997], attractive, low-cost promotional and advertising methods are available to customers around the world, including brand awareness, public relations, press releases, corporate sponsorship, direct sales, customer support and technical assistance. According to Quelch and Klein [1996], the Internet will revolutionize the dynamics of international business, especially leading to faster internationalization of small companies. There are several factors that point to this direction. In particular, they hope to reduce the competitive advantage of economies of scale through the Internet, making it easier for small companies to compete internationally. Given that global customers are getting access to lower Internet costs, global advertising costs are expected to be reduced as barriers to entry. In addition, companies offering specialized niche products will be able to find the key customer base necessary to succeed on the global scale of the Internet.
Orignal From: Analysis of International Business Network Methods
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