Revealing the knowledge structure of internationalization
via the mind mapping-based literature review approach
Joseph Kim-keung Ho
Independent Trainer
Hong Kong, China
Abstract:
The topic
of internationalization is a main one in international business studies. This
article makes use of the mind mapping-based literature review (MMBLR) approach
to render an image on the knowledge structure of internationalization. The
finding of the review exercise is that its knowledge structure comprises four
main themes, i.e., (a) definitions and ingredient ideas, (b) major approaches and
theories, (c) major research
debates and gaps and (d) specific research
topics and research trends. There
is also a set of key concepts identified from the internationalization
literature review. The
article offers some academic and pedagogical values on the topics of
internationalization, literature review and the mind mapping-based literature
review (MMBLR) approach.
Key
words: Internationalization,
literature review, mind map, the mind mapping-based literature review (MMBLR)
approach
Please cite the article as: Ho,
J.K.K. 2016. “Revealing the knowledge structure of internationalization via the
mind mapping-based literature review approach” Joseph KK Ho e-resources blog November 27 (url address: http://josephho33.blogspot.hk/2016/11/revealing-knowledge-structure-of.html).
Introduction
Internationalization is a main topic in international business studies. It is of academic and
pedagogical interest to the writer who has been a lecturer on international
business studies for some tertiary education centres in Hong Kong. In this
article, the writer presents his literature review findings on internationalization
using the mind mapping-based literature review (MMBLR) approach. This approach
was proposed by this writer this year and has been employed to review the
literature on a number of topics, such as supply chain management, strategic
management accounting and customer relationship management (Ho, 2016). The
MMBLR approach itself is not particularly novel since mind mapping has been
employed in literature review since its inception. The overall aims of this
exercise are to:
1. Render an image of the knowledge structure of
internationalization via the application of the MMBLR approach;
2. Illustrate how the MMBLR approach can be
applied in literature review on an academic topic, such as internationalization.
The findings from this
literature review exercise offer academic and pedagogical values to those who
are interested in the topics of internationalization, literature review and the
MMBLR approach. Other than that, this exercise facilitates this writer’s
intellectual learning on these three topics. The next section makes a brief
introduction on the MMBLR approach. After that, an account of how it is applied
to study internationalization is presented.
On mind mapping-based literature review
The mind mapping-based
literature review (MMBLR) approach was developed by this writer this year (Ho,
2016). It makes use of mind mapping as a complementary literature review
exercise (see the Literature on mind
mapping Facebook page and the Literature
on literature review Facebook page). The approach is made up of two steps.
Step 1 is a thematic analysis on the literature of the topic chosen for study.
Step 2 makes use of the findings from step 1 to produce a complementary mind
map. The MMBLR approach is a relatively straightforward and brief exercise. The
approach is not particularly original since the idea of using mind maps in
literature review has been well recognized in the mind mapping literature. The
MMBLR approach is also an interpretive exercise in the sense that different
reviewers with different research interest and intellectual background
inevitably will select different ideas, facts and findings in their thematic
analysis (i.e., step 1 of the MMBLR approach). Also, to conduct the approach,
the reviewer needs to perform a literature search beforehand. Apparently, what
a reviewer gathers from a literature search depends on what library facility,
including e-library, is available to the reviewer. The next section presents
the findings from the MMBLR approach step 1; afterward, a companion mind map is
provided based on the MMBLR approach step 1 findings.
Mind mapping-based literature review on internationalization:
step 1 findings
Step 1of the MMBLR approach is
a thematic analysis on the literature of the topic under investigation (Ho,
2016). In our case, this is the internationalization topic. The writer gathers
some academic articles from some universities’ e-libraries, books on internationalization
as well as via the Google Scholar. With the academic articles collected, the
writer conducted a literature review on them to assemble a set of ideas,
viewpoints, concepts and findings (called points here). The points from the internationalization
literature are then grouped into four themes here. The key words in the
quotations are bolded in order the highlight the key concepts involved.
Theme
1: definitions and ingredient ideas
Point 1.1.
“There are many definitions of internationalisation and more recent ones … describe
internationalisation as a process by which firms increase their involvement in
international business activities” (Fletcher, 2001);
Point 1.2.
“Internationalisation should be viewed as a global activity rather than as an
activity with respect to a firm’s involvement in a specific overseas country.
This means that internationalisation should not only focus on expansion of
international involvement in a particular country but also on contraction” (Fletcher,
2001);
Point 1.3.
“The
internationalization is a value
creation process based on firms’ resources …… The resources involved in firms’
internationalization may be acquired/inherited resources that confer them some
kind of competitive advantages. Also, the resources that firm must obtain for
market play an important role in the international expansion of firms ……” (Losada-Otálora
and Casanova, 2014);
Point 1.4.
“Vermeulen and Barkema (2002) were
the first to introduce the three dimensions
of the international process, i.e., pace,
scope, and rhythm. First, pace is the number of foreign expansions a firm
undertakes within a certain period of time or the changes in their degree of
internationalization during a certain period. Second, scope is the geographical
extent of a firm’s expansion process. Third, rhythm is the regularity in a
firm’s pattern on the trajectory of foreign expansion, other conditions being
equal…” (Lin, 2014);
Point 1.5.
“The internationalization process literature
centres around explaining the pattern of
stages companies move through as they gradually move towards more demanding
products, operations and international markets at both company… and country
levels…..” (Loane, Bell, Gabrielsson and Al-Obaidi, 2003);
Point 1.6.
“Over the past thirty years, one of the most frequently
researched topics in international marketing has been that of
internationalisation of the firm. For the most part, this research has been
devoted to factors causing
internationalisation or to the process by which firms become increasingly
involved in international activities” (Fletcher, 2001);
Point 1.7.
“The international behaviour of firms
indicates that a majority of firms undertake different forms of
internationalisation (i.e. outward, inward and linked) at the same time” (Fletcher,
2001);
Point 1.8.
“We
define “internationalization strategies”
as the managerial decisions made regarding the utilization of an international business opportunity,
either in the form of an increased commitment to existing foreign markets or as
an entrance into a new foreign market. The business opportunity is the outcome
of a corporate entrepreneurship process” (Li and Gammelgaard, 2014);
Point 1.9.
“Compared with a slow pace of internationalization, fast-paced internationalization –
perhaps even by several subsidiaries
at the same time – entails greater risks because firms have little time to
simultaneously evaluate and assimilate their foreign experiences and to apply
them to commercial ends” (Lin, 2014);
Theme
2: major approaches and theories
Point 2.1.
“Approaches
used in explaining internationalization of the firms are often classified
broadly into three main groups. These are the process or stages-models of internationalization..…, the network approach……., and the foreign
direct investment theory (FDI) and internalization/transaction
cost theories…. These theories and models have analyzed
internationalization of the firms with different explaining factors” (Tuppura
et al., 2008);
Point 2.2.
“Dunning’s
Eclectic Paradigm ….. probably offers the
most holistic description of the conditions of foreign market-servicing strategy of firms using ownership,
location and internalisation advantages as explanatory variables” (Buckley and Hashai, 2005);
Point 2.3.
“…Internationalization
strategies lead to geographic distributions of value-creation activities;
this is also referred to “configuration”
(Porter, 1990)…. ..Internationalization
modes represent varying degrees of resource commitment, risk exposure, and
control; this is also referred to as “coordination”
(Pan and Tse, 2000, p. 535)…..” (Kaufmann and Jentzsch, 2006);
Point 2.4.
“Internalisation
enables the firm to minimise the cost of
economic transactions by better exploiting underutilized firm-specific capabilities (e.g.,
managerial skills and technology), which are superior to those of indigenous
competitors” (Buckley and Hashai, 2005);
Point 2.5.
“Two
theoretical approaches dominate contemporary research on the
internationalization of small firms….. They are (1) the stage approach…., and (2) the network
approach….” (Turcan, 2003);
Point 2.6.
“Firms
operating across national markets often face a number of problems arising from
various discrepancies between their home and host countries. The seminal work
of the Uppsala School …., for
example, highlighted the significance of ‘‘psychic
distance’’ – that is, differences in language, education, business
practices, culture, and industrial development – between countries as a key
factor in determining the pace and pattern of firm internationalisation” (Richardson,
2014);
Point 2.7.
“There have been two streams of research into
internationalisation. The first research stream relates to factors causing internationalisation, and the second has focused on
the process of firms’
internationalisation” (Fletcher, 2001);
Point 2.8.
“Johanson and Vahlne (1990)
specify three situations in which the application
of the classical, gradual model of internationalization (the U-model) is
inappropriate: (i) when firms have large amounts of resources, and consequently
low levels of financial restraints, they can be expected to take larger steps
towards internationalization; (ii) when market conditions are stable and
homogeneous, market knowledge can be obtained through means other than
experience; (iii) when a firm has experience in other, similar markets, it can
advance its internationalization process in a particular marketing area” (Vila and Kuster, 2015);
Point 2.9.
“Essentially, the ‘economic school’ views
internationalisation as engagement in cross border activities motivated by
rational economic considerations ….. Firms choose their foreign
market-servicing mode by evaluating the cost of different transactions and
selecting the mode that minimises overall costs” (Buckley and Hashai, 2005);
Point 2.10.
“The
concept of internationalization has received much attention in the literature.
Two alternative approaches have been developed. First, the binary or dichotomic model that separates firms into two main
groups: proactive/regular exporters and sporadic/non-exporters. Second, the stages model of export development
which differentiates between diverse ways of entering a market” (Vila and Kuster, 2015);
Point 2.11.
“The OLI
[ownership, location and internationalization] and the UIP [Uppsala internationalization process] frameworks analyze
different aspects of the internationalization process. The OLI perspective
encompasses a set of reasons explaining why companies find it beneficial to
undertake foreign direct investments (FDI) when entering foreign markets rather
than to adopt other entry modes, such as licensing. ….. The UIP
framework….argues that internationalization strategies are an outcome of past
experience” (Li and Gammelgaard, 2014);
Point 2.12.
“….The co-evolutionary model offers a new
theoretical approach integrating the internal, contextual, and processual
aspects of the internationalisation of the firm. Specifically, the model
explains how the internationalisation path, and distinct positions along this
path, can be considered as emergent products of the co-evolution of
internationalisation activities, organisational resources and industry
influences…” (Pajunen and Maunula, 2008);
Point 2.13.
“….re-internationalisation as a process comprising initial international
experience, exit, time-out without any international involvement and eventual
re-entry. The
prior international experience of a re-internationaliser leaves it with an international heritage ……: the
intangible dimensions that remain despite tangible resources and physical
presence having been withdrawn. The firm’s experiential knowledge,
international networks, managerial skills and attitudes to internationalisation
can be considered to make up its international heritage” (Welch and Welch, 2009);
Theme
3: major research debates and gaps
Point 3.1.
“Most theories of internationalization have their roots in industrial organization and economices…..
and have been developed in the 1970s and 1980s when American multinationals
started to invest in Europe and when European SMEs started to export, mostly to
neighboring countries…. Since then, the world has changed ever more rapidly. As
a result, we must critically assess whether these established theories are
still able to grasp the observed
internationalization practices of firms today” (Axinn
and Patthyssens, 2002);
Point 3.2.
“The decision to internationalize a company involves choosing to
operate not only in the domestic market, but also in foreign markets (Javalgi,
Griffith and White, 2003) to achieve success. A short review of the latest
issues of any journal reveals the lack of consensus when it comes to measuring business success” (Vila and Kuster, 2015);
Point 3.3.
“In spite of the large number of studies in international business, the
question of how firms can achieve superior performance in the international
market-place is far from resolved. Many variables in a firm’s internal and
external environment may affect its international
performance….” (Dimitratos, 2003);
Point 3.4.
“In general, researchers who have studied internationalization
processes have focused primarily on the consequences
of the internationalization processes, such as firm performance and the
spillover effects from foreign entry ….. Yet we know less about the antecedents that motivate the
internationalization processes and, as such, it is not clear why managers
in multinational enterprises (MNEs)
choose to engage in high-risk internationalization processes.” (Lin,
2014);
Point 3.5.
“….there has been only limited [internationalisation]
research on inward processes and
their connection to outward operations,
and on de-internationalisation activity ……. In the latter case, this is despite
widespread research showing a high drop-out rate from international operations,
particularly by those companies in the early stages of internationalisation and
among small firms ….” (Welch and Welch. 2009);
Point 3.6.
“…by
and large, theories of the internationalization of the firm have focused on one
side of the coin – the internationalization process – and have tended to ignore
the de-internationalization process….
The lack of research into the de-internationalization process may be attributed
to three factors; the stigma of failure associated with
de-internationalization….; international firms themselves wiped failed
international activities from their record books or public memory…..; and
personnel in the host country often move
after de-internationalization and neither they nor the artifacts remain to
inform researchers…..” (Mellahi, 2003);
Point 3.7.
“Today,
firms are internalizing in greater
numbers than ever before and they are internationalizing
faster than ever before. Therefore, internationalization theories that can
provide practical guidance to firms are more critical than ever before.
However, companies are internationalizing in more different ways than ever before,
often using combinations of entry and exit strategies” (Axinn
and Patthyssens, 2002);
Theme
4: specific research topics and research trends
Point 4.1.
“….. During the
1980s and 1990s, the findings concerning ‘‘born
globals’’, also known as ‘‘international new ventures’’ or ‘‘global
start-ups’’, questioned the incremental nature of internationalisation ….
Subsequently, studies focusing on explaining rapid internationalisation, and international entrepreneurship in general, began to accumulate ….” (Pajunen and Maunula, 2008);
Point 4.2.
“…Despite the large literature on MNCs
and international HRM, relatively little is known about the impact of nationality of ownership.
Proponents of the competitive convergence thesis argue that the pressures of
globalization have set in motion a convergence process of ER [employee
relations] patterns in MNCs towards the individualistic Anglo-Saxon approach,
regardless of MNC’s countries of origin (Reich, 1991)…..” (Tüselmann, McDonald
and Heise, 2003);
Point 4.3.
“…despite
global pressures, MNCs are not stateless players but are embedded in their country-of-origin business system which
colours behaviour and influences ER [employee relations] approaches in foreign
operations (Hu, 1992; Ferner, 1997)…” (Tüselmann, McDonald and Heise, 2003);
Point 4.4.
“The literature on multinationals does not provide an unambiguous
viewpoint on the role of subsidiaries
in the management of international operations by the multinational firms….
Customarily it was presumed that the headquarters
of a multinational is the strategic centre in which decision-making
authority is located and the subsidiaries are essentially subordinate entities
which follow orders from the headquarters….” (Dimitratos, 2003);
Point 4.5.
“In the past 10 years, the increasing involvement
of emerging multinationals (EMNCs)
in the global economy has been remarkable. Previous researches have recognized
the role played by resources in the growth of EMNCs…” (Losada-Otálora
and Casanova, 2014);
Point 4.6.
“The internationalization process has been widely studied… with the
focus of research mainly on firms in the early
phases of internationalization…. , or on multinationals and companies that
are already global. However, there is little research on international
companies that are becoming global…”
(Gabrielsson and Gabrielsson, 2003);
Point 4.7.
“There is now considerable evidence to show that domestically-owned
firms (DOEs) have lower levels of labour productivity than foreign-owned subsidiaries (FOSs) in UK manufacturing industry. In
explaining these productivity differences, most studies refer to the firm-specific advantages which
multinationals possess, allowing them to succeed in foreign environments”
(Wang, Siler and Liu, 2003);
Point 4.8.
“The relationship between multinationality
(degree of international expansion) and firm financial performance is a key issue in the internationalization
literature and is important to international strategists …. Over four decades
of research in this area have led to different results, and scholars have only
recently started to address the issue of these different, often conflicting
findings ……” (Venzin, Kumar and Kleine, 2008);
Point 4.9.
“Firms
with production facilities located in multiple countries can benefit from their
ability to change production locations in response to unexpected adverse changes in any given country, such as increases
in labor costs or exchange rate volatility…, as well as increased political
risks …” (Lee
and Makhija, 2009);
Point 4.10.
“The current economic climate has brought internationalisation to
the fore as a key strategy for surviving, particularly in traditional
manufacturing sectors such as the textile and footwear industry ….. This
industry has suffered from a dramatic increase in rivalry and competence
stemming from a global tendency towards
deregulation of international markets … This has meant a constant decline
in competitiveness in this sector in developed economies….” (Puig, González-Loureiro and
Ghauri, 2014);
Point 4.11.
“Like most service
industries, internationalization in the financial services sector is a
recent phenomenon, and it has lagged considerably behind the
internationalization of the manufacturing and technology sectors…” (Venzin,
Kumar and Kleine, 2008);
Point 4.12.
“The internationalization of SMEs [small and
medium-sized enterprises] is widely recognized as driven by the increasing
globalization of the world economy with the decline in trade barriers imposed
by governments and parallel advances in telecommunications, informatics and
lower transportation costs” (Bernardino and Jones, 2003);
Point 4.13.
“Barriers to the effective transfer of technology within strategic
alliances are well-known… especially between developed and
developing-country firms. One major barrier concerns the incompatibility of the
parties involved….; mismatch is likely to lead to disappointment on the part of
one or more of the contracted partners once the alliance is up and running….”
(De Mattos and Cross, 2003);
Point 4.14.
“….the dominant change in the world economy over recent decades is the globalization of market… This
phenomenon is the result of the convergence of numerous other changes that
individually might not have been as potent as they are collectively. From the
domain of technology we have gained: (1) advances in telecommunications….. (2)
advances in transport…… (3) production process advances….” (Axinn
and Patthyssens, 2002);
Point 4.15.
“Research does suggest that
‘fundamental reasons for the slow,
gradual and evolutionary internationalization of companies [will be] no
longer relevant’ (Bennett, 1997, p. 328). Moreover, authors suggest that the
Internet will reduce a number of the barriers
that inhibit internationalization, such as psychic distance…….or geographic
and time distance….” (Chen, Bridgewater and Pan, 2003);
Point 4.16.
“By ‘online
internationalisation’ we mean the conduct of business transactions across
national boundaries, where the ‘crossing’ of national boundaries takes place in
the virtual rather than the real or spatial domain” (Yamin
and Sinkovics, 2006);
Point 4.17.
“…online internationalisation is associated with a diminution of psychic distance.….. the
reduction in psychic distance due to online interaction also carries the danger
of falling into what we call the ‘virtuality trap’. By ‘virtuality trap’ we mean a perception by the internationalising
firm that the learning generated through virtual interactions obviates the need
for learning about the target markets through non-virtual means” (Yamin and Sinkovics, 2006);
Each of them has a set of
associated points (i.e., idea, viewpoints, concepts and findings). Together
they provide an organized way to comprehend the knowledge structure of the internationalization
topic. The bolded key words in the quotation reveal, based on the writer’s
intellectual judgement, the key concepts examined in the internationalization
literature. The referencing indicated on the points identified informs the
readers where to find the academic articles to learn more about the details on
these points. The process of conducting the thematic analysis is an exploratory
as well as synthetic learning endeavour on the topic’s literature. Once the
structure of the themes, sub-themes[1]
and their associated points are finalized, the reviewer is in a position to
move forward to step 2 of the MMBLR approach. The MMBLR approach step 2
finding, i.e., a companion mind map on internationalization, is presented in
the next section.
Mind mapping-based literature review on internationalization:
step 2 (mind mapping) output
By adopting the findings from
the MMBLR approach step 1 on internationalization, the writer constructs a
companion mind map shown as Figure 1.
Referring to the mind map on internationalization,
the topic label is shown right at the centre of the map as a large blob. Four
main branches are attached to it, corresponding to the four themes identified
in the thematic analysis. The links and ending nodes with key phrases represent
the points from the thematic analysis. The key phrases have also been bolded in
the quotations provided in the thematic analysis. As a whole, the mind map
renders an image of the knowledge structure on internationalization based on
the thematic analysis findings, see also the Literature on globalization & internationalization Facebook page
for additional information on internationalization. Constructing the mind map
is part of the learning process on literature review. The mind mapping process
is speedy and entertaining. The resultant mind map also serves as a useful
presentation and teaching material. This mind mapping experience confirms the
writer’s previous experience using on the MMBLR approach (Ho, 2016). Readers
are also referred to the Literature on
literature review Facebook page and the Literature
on mind mapping Facebook page for additional information on these two
topics.
Concluding remarks
The MMBLR approach to study internationalization
provided here is mainly for its practice illustration as its procedures have
been refined via a number of its employment on an array of topics (Ho, 2016).
No major additional MMBLR steps nor notions have been introduced in this
article. In this respect, the exercise reported here primarily offers some
pedagogical value as well as some systematic and stimulated learning on internationalization.
Nevertheless, the thematic findings and the image of the knowledge structure on
internationalization in the form of a mind map should also be of academic value
to those who research on this topic.
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