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Dynamic Internationalization Process Model By Mustafa Burak Guclu

Dynamic Internationalization Process Model By Mustafa Burak Guclu. Internationalization Process. Three Exceptions. 1. When firms have large resources the consequences of commitments are small. Consequently, large firms or firms with surplus resources can make larger international steps.

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Dynamic Internationalization Process Model By Mustafa Burak Guclu

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  1. Dynamic Internationalization Process Model By Mustafa Burak Guclu

  2. Internationalization Process

  3. Three Exceptions 1. When firms have large resources the consequences of commitments are small. Consequently, large firms or firms with surplus resources can make larger international steps. 2. When market conditions are stable and homogeneous, relevant market knowledge can be gained through other ways than experience. 3. When the firm has considerable experience from markets with similar conditions it may be possible to generalize this experience to the specific market.

  4. Dynamic Response Model

  5. Weak & Strong Signals According to Ansoff; weak signals: imprecise early indications about impending impactful events. strong signals: issues that are sufficiently visible, and concrete to permit the firm to compute their impact and device specific plans.

  6. Managerial Mental Filter The manager filters the novel signals that are not relevant to his/her historical experience, and therefore ignores the shape of the new environment. Ansoff refers this as ‘mentality filter’.

  7. Managerial Mental Challenges The Cognitive Challenge: The manager should be free of refusal, nostalgia and arrogance.   The Creative Challenge: The manager should look for alternatives as well as awareness. Power Challenge: The manager should not feel threatened with a discontinuity, try to minimize or refuse to recognize the impact of discontinuity to the firm. Entrepreneurial Challenge: The manager should be tolerant to failure and experiment a portfolio of new strategies.

  8. Environmental Scanning Choo (1999) defines environmental scanning as “the acquisition and use of information about events, trends, and relationships in an organization's external environment, the knowledge of which would assist management in planning the organization's future course of action”. The process assumes that potential impacts on the organization may come from unpredictable and uncontrollable sources. Thus, environmental scanning is closely linked to strategic planning (Albright 2004).

  9. Internal Scanning It is vital for the firms to analyze their internal strengths and weaknesses during the strategy-making process (Barney 1991). A firm will have a better chance of developing new resource configurations and market positions that capitalizes on its unique strengths, if it can identify and evaluate its knowledge bases and unique capabilities (Kor, Mahoney and Pettus 2007).

  10. Knowledge Gap What a firm must know What a firm must do Knowledge Gap Strategic Gap What a firm can do What a firm knows Source: Michael H Zack

  11. Flexibility Koornhof (1998) describes flexibility as “the ability and capacity to reposition resources and functions of the organization in a manner consistent with the evolving strategy of management as they respond, proactively or reactively, to change in the environment”.

  12. Flexibility Volberda (1998) comes up with a different perspective in which internal flexibility is viewed as capacity of organizations to quickly adapt to the demands of the environment, while external flexibility is viewed as the capacity of the organization to actively influence the environment, thereby reducing the vulnerability of the organization.

  13. Dynamic Capabilities Dynamic capabilities involve the organizational processes by which resources are utilized to create growth and adaptation within changing environments (Eisenhardt and Martin 2000, Lado, Boyd, Wright and Kroll 2006; Teece, Pisano and Shuen 1997). Dynamic capabilities relate to the organization’s competencies to integrate, build, and reconfigure resource positions in rapidly changing environments.

  14. Strategic Planning Strategic programming: Extrapolation of trends without changing the organization. Strategic issue management: Besides programs, also focusing on relevant issues and initiating activities in line with these issues. Strategic contingency planning: Developing plans for every possible change and transforming the organization in order to anticipate possible developments. Preparedness strategies: Decreasing planning activities, and increasing organizational activities in order to get more strategic mileage out of the organization in case of strategic surprises. Source: Volberda, H.W. 1998. Building the flexible firm: How to remain competitive. New York: Oxford University Press.

  15. Planning vs. Organizational Activities

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