Advertisement

Internationalization as Innovation Driver in Services

  • Patrik StrömEmail author
  • Robert Wentrup
Chapter
  • 1.4k Downloads
Part of the Translational Systems Sciences book series (TSS, volume 6)

Abstract

The chapter discusses the interaction between internationalization and innovation. These are processes that can enforce each other over time. Received theory on internationalization does not explain how firms within new sectors, such as internet service providers, make use of their internationalization process as a way to compete on innovation. Additionally the chapter brings in the spatial aspects of how internationalization is conducted and what firms are looking for at specific locations to facilitate their innovation process and obtain a sustainable competitive advantage. Two mini-cases of two internet service providers are used to show how new theoretical explanations are needed.

Keywords

Internationalization Innovation Location Services 

References

  1. Alvstam, C. G. (2014). Sveriges utrikeshandel med den Europeiska Unionen före och efter medlemskapet. In L. Berg & R. Lindahl (Eds.), Förhoppningar och farhågor Sveriges första 20 år i EU (pp. 197–216). Göteborg: Centum för Europaforskning vid Göteborgs universitet.Google Scholar
  2. Alvstam, C. G., Ström, P., & Wentrup, R. (forthcoming) Heterogeneous economic space in a global archipelago. In H. Merchant, et al. (Eds.), Handbook of research on emerging markets. Cheltenham: Edward Elgar.Google Scholar
  3. Asheim, B. T., & Gertler, M. S. (2006). The geography of innovation: Regional innovation systems. In J. Fagerberg & D. C. Mowery (Eds.), The Oxford handbook of innovation. Oxford: Oxford University Press.Google Scholar
  4. Bao, S., & Toivonen, M. (2015). Cultural differences in servitization: Nordic manufacturers in China. Journal of Science and Technology of Policy Management, 6, 223–245.Google Scholar
  5. Bathelt, H., & Glückler, J. (2003). Toward a relational economic geography. Journal of Economic Geography, 3, 117–144.CrossRefGoogle Scholar
  6. Bathelt, H., Malmberg, A., & Maskell, P. (2004). Clusters and knowledge: Local buzz, global pipelines and the process of knowledge creation. Progress in Human Geography, 28(1), 31–56.CrossRefGoogle Scholar
  7. Beugelsdijk, S., McCann, P., & Mudambi, R. (2010). Introduction: Place, space and organization—economic geography and the multinational enterprise. Journal of Economic Geography, 10(4), 485–493.CrossRefGoogle Scholar
  8. Boermans, M. A., & Roelfsema, H. (2015). Small firm internationalization, innovation, and growth. International Economics and Economic Policy. doi: 10.1007/s10368-014-0310-y.Google Scholar
  9. Boschma, R., & Frenken, K. (2011). The emerging empirics of evolutionary economic geography. Journal of Economic Geography, 11(2), 295–307.CrossRefGoogle Scholar
  10. Bramklev, C., & Ström, P. (2011). A conceptualization of the product/service interface: Case of the packaging industry in Japan. Journal of Service Science Research, 3(1), 21–48.Google Scholar
  11. Bryson, J. R. (2007). A ‘second’ global shift? The offshoring or global sourcing of corporate services and the rise of distanciated emotional labour. Geografiska Annaler, 89B(S1), 31–43.CrossRefGoogle Scholar
  12. Bryson, J. R., Rubalcaba, L., & Ström, P. (2012). Services, innovation, employment and organisation: Research gaps and challenges for the next decade. Service Industries Journal, 32(4), 641–655.CrossRefGoogle Scholar
  13. Buckley, P. J., & Casson, M. (1976). The future of the multinational enterprise. New York: Holmes & Meier.CrossRefGoogle Scholar
  14. Buckley, P. J., & Gauri, P. N. (2004). Globalisation, economic geography and the strategy of multinational enterprises. Journal of International Business Studies, 35(2), 81–98.CrossRefGoogle Scholar
  15. Cairncross, F. (2001). The death of distance 2.0: How the communications revolution will change our lives. London: Texere.Google Scholar
  16. Cantwell, J., Dunning, J. H., & Lundan, S. M. (2010). An evolutionary approach to understanding international business activity: The co-evolution of MNEs and the institutional environment. Journal of International Business Studies, 41(4), 67–586.CrossRefGoogle Scholar
  17. Cassiman, B., & Golovko, E. (2011). Innovation and internationalization through exports. Journal of International Business Studies, 42, 56–75.CrossRefGoogle Scholar
  18. Coe, N. M., & Yeung, H. W. C. (2015). Global production networks theorizing economic development in an interconnected world. Oxford: Oxford University Press.CrossRefGoogle Scholar
  19. Daniels, P. W. (2000). Export of services or servicing exports? Geografiska Annaler, 82B(1), 1–15.CrossRefGoogle Scholar
  20. Dicken, P. (2015). Global shift – mapping the changing contours of the world economy. London: Sage.Google Scholar
  21. Dunning, J. H. (1998). Location and the multinational enterprise: A neglected factor? Journal of International Business Studies, 29, 45–66.CrossRefGoogle Scholar
  22. Dunning, J. H., & Lundan, S. M. (2008). Multinational enterprises and the global economy. Cheltenham: Edward Elgar.Google Scholar
  23. EU. (2014). High-level group on business services, final report. Bryssel: EU.Google Scholar
  24. Gabrielsson, M., Manek Kirpalania, V. H., Dimitratos, P., Solberg, C., & Zucchella, A. (2008). Born globals: Propositions to help advance the theory. International Business Review, 17(4), 385–401.CrossRefGoogle Scholar
  25. Ganotakis, P., & Love, J. H. (2011). R&D, product innovation, and exporting: Evidence from UK new technology based firms. Oxford Economic Papers, 63(2), 279–306.CrossRefGoogle Scholar
  26. Gertler, M. (2003). Tacit knowledge and the economic geography of context, or the undefinable tacitness of being (there). Journal of Economic Geography, 3, 75–99.CrossRefGoogle Scholar
  27. Grabher, G., Ibert, O., & Flohr, S. (2008). The neglected king: The customer in the new knowledge ecology of innovation. Economic Geography, 84(3), 253–280.CrossRefGoogle Scholar
  28. Harrington, J. W., & Daniels, P. W. (2006). Knowledge-based services: Internationalisation and regional development. Aldershot: Ashgate.Google Scholar
  29. Hermelin, B., & Rusten, G. (2007). The organizational and territorial changes of services in a globalized world. Geografiska Annaler Series B: Human Geography, 89(1), 1–5.Google Scholar
  30. Hymer, S. (1976). The international operations of national firms: A study of direct investment. Cambridge, MA: MIT Press.Google Scholar
  31. Illeris, S. (1994). Proximity between service providers and service users. Tijdschrift voor Economische en Sociale Geografie, 85, 294–302.CrossRefGoogle Scholar
  32. Ivarsson, I., & Alvstam, C. G. (2013). Embedded internationalization: How small- and medium-sized Swedish companies use business-network relations with Western customers to establish own manufacturing in China. Asian Business & Management, 12(5), 565–589.CrossRefGoogle Scholar
  33. Jensen-Ørberg, P. D., & Petersen, B. (2012). Global sourcing of services vs manufacturing: Is it any different? Service Industries Journal, 32(4), 591–604.CrossRefGoogle Scholar
  34. Jensen-Ørberg, P. D., & Petersen, B. (2014). Value creation logics and internationalization of service firms. International Marketing Review, 31(6), 557–575.CrossRefGoogle Scholar
  35. Johanson, J., & Vahlne, J.-E. (1977). The internationalization process of the firm: a model of knowledge development and increasing foreign market commitments. Journal of International Business Studies, 8(1), 23–32.Google Scholar
  36. Johanson, J., & Vahlne, J.-E. (2009). The Uppsala internationalization process model revisited: From liability of foreignness to liability of outsidership. Journal of International Business Studies, 40(9), 1411–1431.CrossRefGoogle Scholar
  37. Jones, A., & Murphy, J. T. (2010). Practice and economic geography. Geography Compass, 4(4), 301–319.CrossRefGoogle Scholar
  38. Knight, G. A., & Cavusgil, S. T. (1996). The born global firm: A challenge to traditional internationalization theory. In S. T. Cavusgil (Ed.), Madsen export internationalizing research—enrichment and challenges (Advances Int Mark, Vol. 8, pp. 11–26).Google Scholar
  39. Lamotte, O., & Colovic, A. (2013). Innovation and internationalization of young entrepreneurial firms. Management International, 18(1), 87–103.CrossRefGoogle Scholar
  40. Madsen, T. K., & Servais, P. (1997). The internationalization of born globals: An evolutionary process? International Business Review, 6(6), 561–583.CrossRefGoogle Scholar
  41. Manning, S. (2013). New silicon valleys or a new species? Commoditization of knowledge work and the rise of knowledge service clusters. Research Policy, 42, 379–390.CrossRefGoogle Scholar
  42. Manning, S., Ricart, J. E., Rique, M. S. R., & Lewin, A. Y. (2010). From blind spots to hotspots: How knowledge services clusters develop and attract foreign investment. Journal of International Management, 16, 369–382.CrossRefGoogle Scholar
  43. Mathews, J. A., & Zander, I. (2007). The international entrepreneurial dynamics of accelerated internationalization. Journal of International Business Studies, 38(3), 387–403.CrossRefGoogle Scholar
  44. McKinsey & Co. (1993). Emerging exporters Australia’s high value-added manufacturing exporters. Melbourne: McKinsey, Company and the Australian Manufacturing Council.Google Scholar
  45. Meyer, C. R., Skaggs, B. C., Nair, S., & Cohen, D. G. (2015). Customer interaction uncertainty, knowledge, and service firms internationalization. Journal of International Marketing, 21, 249–259.Google Scholar
  46. Narula, R., & Zanfei, A. (2006). Globalization of innovation: The role of multinational enterprises. In J. Fagerberg & D. C. Mowery (Eds.), The Oxford handbook of innovation. Oxford: Oxford University Press.Google Scholar
  47. Neely, A. D., Benedittini, O., & Visnjic, I. (2011). The servitization of manufacturing: Further evidence. 18th European operations management association conference, Cambridge.Google Scholar
  48. OECD. (2015). Addressing the tax challenges of the digital economy, action 1–2015 final report, OECD/G20 base erosion and profit shifting project. Paris: OECD Publishing.CrossRefGoogle Scholar
  49. Oviatt, B. M., & McDougall, P. P. (1994). Toward a theory of international new ventures. Journal of International Business Studies, 25(1), 45–64.CrossRefGoogle Scholar
  50. Oviatt, B. M., & McDougall, P. P. (2005). Defining international entrepreneurship and modeling the speed of internationalization. Entrepreneurship Theory and Practice, 29(5), 537–554.CrossRefGoogle Scholar
  51. Penrose, E. T. (1959). Theory of the growth of the firm. London: Basil Blackwell.Google Scholar
  52. Perks, H., Gruber, T., & Edvardsson, B. (2012). Co-creation in radical service innovation: A systematic analysis of microlevel processes. Journal of Product Innovation Management, 29(6), 935–951.CrossRefGoogle Scholar
  53. Rasmussen, E. S., Madsen, T. K., & Evangelista, F. (2001). The founding of the born global company in Denmark and Australia: Sense making and networking. Asia Pacific Journal of Marketing and Logistics, 13(3), 75–107.CrossRefGoogle Scholar
  54. Rubalcaba, L. (2007). The new service economy, challenges and policy implications for Europe. Cheltenham: Edward Elgar.Google Scholar
  55. Rubalcaba, L., & Toivonen, M. (2015). Internationalisation of services, modes and the particular case of KIBS. In J. Bryson & P. Daniels (Eds.), The handbook of service business: Management, marketing, innovation and internationalisation. Cheltenham: Edward Elgar.Google Scholar
  56. Rusten, G., & Bryson, J. R. (2010). Placing and spacing services: Towards a balanced economic geography of firms, clusters, social networks, contracts and the geographies of enterprise. Tijdschrift voor Economische en Sociale Geografie, 101, 248–261.CrossRefGoogle Scholar
  57. Schlunze, R., Agola N., & Baber W. (2011) New perspectives on managerial geography, launching new perspectives on management and geography. Houndmills: Palgrave Macmillan.Google Scholar
  58. Ström, P. (2015). Service research and economic geography. In J. Bryson & P. Daniels (Eds.), The handbook of service business: Management, marketing, innovation and internationalisation. Cheltenham: Edward Elgar.Google Scholar
  59. Ström, P., & Ernkvist, M. (2012). Internationalisation of the Korean online game industry: Exemplified through the case of NCsoft. International Journal of Technology and Globalization, 6(4), 312–334.CrossRefGoogle Scholar
  60. Ström, P., & Schweizer, R. (2011). Space oddity – on managerial decision making and space. In R. Schlunze, N. Agola, & W. Baber (Eds.), New perspectives on managerial geography, launching new perspectives on management and geography. Houndmills: Palgrave Macmillan.Google Scholar
  61. Ström, P., & Wahlqvist, E. (2010). Regional and firm competitiveness in the service based economy – combining economic geography and international business theory. Tijdschrift voor Economische en Sociale Geografie, 101(3), 287–304.CrossRefGoogle Scholar
  62. Vahlne, J.-E., Ivarsson, I., & Johanson, J. (2011). The tortuous road to globalization for Volvo’s heavy truck business: Extending the scope of the Uppsala model. International Business Review, 20, 1–14.CrossRefGoogle Scholar
  63. Vargo, S. L., & Lusch, R. F. (2004). Evolving to a new dominant logic for marketing. Journal of Marketing, 68(1), 1–17.CrossRefGoogle Scholar
  64. Vernon, R. (1966). International investment and international trade in the product cycle. Quarterly Journal of Economics, 80, 190–207.CrossRefGoogle Scholar
  65. Warf, B. (2013). Global geographies of the internet. Springer, e-book: doi  10.1007/978-94-007-1245-4.
  66. Zook, M. A. (2002). Grounded capital: Venture financing and the geography of the internet industry 1994–2000. Journal of Economic Geography, 2(2), 151–177.CrossRefGoogle Scholar

Copyright information

© Springer Japan 2016

Authors and Affiliations

  1. 1.University of GothenburgGothenburgSweden

Personalised recommendations