Video and Lecture SMEs

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Después de ver la conferencia "El negociador global" y leer uno de los trabajos sugeridos, brinde

su opinión sobre el contexto y los llamados de la internacionalización de las PYMES. Comente las
opiniones de sus socios.

 international behaviors in the firm's first international ventures as well as of radical strategic
changes is enhanced by an analysis focusing on entrepreneurs. Such a conceptual framework is
used to analyze this study's cases. New concepts are developed: the marketing entrepreneur who
implements an international push strategy; the technical entrepreneur who implements a strategy
focusing on technical development, creating an international pull strategy; and the structure
entrepreneur who implements an international restructuring of an industry.

There is an impressive body of literature on the internationalization of firms. It can broadly be


divided into two currents of research: the economic and the process approaches (Benito and
Gripsrud, 1992). The economic research current has its base in mainstream economics, examples
being the eclectic paradigm (Dunning, 1988), the transaction-cost approach (e.g., Teece, 1986;
Hennart, 1982) and internationalization theory (e. g., Buckley and Casson, 1976). Economic man
has access to perfect information and will choose the rational solution.

 Since internationalization is a complex phenomenon, many different perspectives are needed to


understand it 

 Then, a model establishing the entrepreneur as a central factor in explaining firms' international
behavior is introduced

Internationalization literature
 different researchers hold different assumptions about decision making. They also focus on
different levels of aggregation in analyzing internationalization processes: the individual actors'
level, the firm level, and the firm's environment level 

 This literature focuses on the company and its environment and can be positioned in squares B
and C in Figure 1. Since the decision maker is rational, he will choose the optimal solution. The fact
that various decision makers can make different strategic decisions in the same situation is not
acknowledged in this approach.

the one expanded to recognize the importance of networks (Johanson and Vahlne, 1990, 1993))
discuss learning at organizational levels and maintain that top management's ability to affect the
internationalization process is limited.

The framework is a tool to increase the understanding of firms' internationalization.


Internationalization is defined as the process of increasing involvement in international operations

Internationalization is a part or a consequence of a firm's strategy. Strategy is defined in a broad


sense

Internationalization is an example of strategic change that can be defined as an entrepreneurial


action

The strategy and internationalization processes will not start without acting entrepreneurs. It is not
enough to be a firm with resources and opportunities in the environment. Internationalization must
be wanted and triggered by someone (Boddewyn, 1988). To show the central role of individuals'
actions in creating strategy and international processes, the entrepreneur is represented as an
arrow that goes from the structure side to the process side. The reverse arrow, from the process
side to the structure side, shows that the processes influence the structure side of the model.

The entrepreneurs' intentions and persistence in carrying out different strategies are decisive for the
firms' early internationalization. Assar Svensson's strong push for technical improvement led to his
assigning large amounts of resources to technological developmen

Discussion and Conclusions


Current theories can help us understand parts of the three firms' international behavior. The eclectic
paradigm is useful in assessing the decision of a single production unit in the later stages of a firm's
internationalization, while the Uppsala internationalization model gives insights into incremental
development in a firm's early stages of internationalization. However, adding entrepreneurs and
entrepreneurship theory can increase our understanding of firms' internationalization. The
difference in behavior in the early internationalization of Skega and Sunnex can be understood only
if the entrepreneurs Ake Wester and Assar Svensson are included in the analysis. Previous
research has shown the importance of entrepreneurs in smaller firms' international behavior (Bilkey
and Tesar, 1977), but this study's empirical findings indicate that entrepreneurs are just as
important in large firms (Rune Andersson at Trelleborg).

The conclusion that entrepreneurs can be used to understand firms' international behavior is
valuable in itself, but identifying the ways in which entrepreneurs influence firms' international
behavior can be even more useful

s. One way to categorize firms' internationalization processes is to use a conceptual framework


(Figure 2). What types of entrepreneurs can be identified, and which international patterns can be
perceived in firms with different types of entrepreneurs? I began with Schumpeter's (1934)
classification of new combinations:

From the moment a SME considers internationalization as a goal to achieve


sustainable competitive advantages, it begins its immersion in different cultural
environments, where ideas, customs, beliefs, ways of doing, communication styles,
among other aspects will be put to the test.  However, carrying out any kind of
commercial collaboration will require some cultural adaptation or cultural relativism.
But it is not changing all our customs, it is not possible to renounce our own
convictions, but it is possible to appeal to tolerance and understanding between
partners and clients belonging to different cultures, it means, adapting. Negotiators
come from varied origins and have different styles of negotiation, that is why we are
going to find techniques that we like, but the idea is to always respect them. Then,
SMEs face major internationalization challenges derived from the dynamics of
globalization and the signing of free trade agreements in the last decade. For this, it is
necessary to analyze their internationalization capacity in terms of resources, skills
and capacities to develop strategies that allow them to participate in the new dynamics
in an appropriate way.

The risks involved in the internationalization of a SME derived from essential and
transcendental issues such as the financing system, the guarantees associated with
the contracts (financial and technical), the Incoterms, the legislation applicable to a
contract of any class, or the relevance of the submission to international arbitration.
The success of the SME internationalization process will depend on multiple factors: it
will be necessary to have adequate strategic and financial planning, and of course, to
have highly qualified technical and legal advice to ensure its development in stable
and safe conditions and, with this, achieve the success of the internationalization.

Today, internationalization for SMEs can be done in a much faster and easier way
than many years ago, and all this is thanks to the fact that globalization has allowed us
to connect with people from all over the world.

However, companies in their search for growth always seek to enter the international
market in order to begin their transformation from a medium-sized company to a large
company, but this forces the company to face a series of challenges that leads to
globalization.

Internalization calls always seek to enter the market in this way to generate more
income, but in addition to this, internalization also helps the company to seek
production alternatives in other parts of the world and thus reduce its costs.

The internationalization process for Small and Medium Enterprises is difficult due to
the number of variables that they have to take into account. A great environment is
essential for the companies expansion, not only at a firm level but also the whole
external environment, which can be influenced by entrepreneurs (to some extent) by
taking advantage of the opportunities presented. When it comes to internationalization,
there are few constants and, it is said that one of the biggest mistakes in applying
modern theories is their focus in generalizations where one set of strategies is
supposed to fit all the firms. It is better to categorize the firms among those with similar
behavior. To succeed in this expansion process, the entrepreneur needs to be aware
that he/she influences the international behavior of the company in different directions
using a conceptual framework.

The challenges that SME's mainly face are: The cultural differences because customer
tastes differ from one country to another due to their beliefs or even trends so that the
company has to adapt itself to the new culture or try to captivate new consumers by
highlighting its own culture through the products or services. Also, the capacity of the
entrepreneur because it is very important that he/she has the ability to see new
combinations of factors, the will to act and develop these combinations in order to
benefit the enterprise, the ability to convince other to invest in their projects, be able to
choose the right strategies and balance rational decisions with the behavioral ones.

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