Report: Rapid Internationalization in International Entrepreneurship

This project report provides a detailed discussion on the rapid internationalization of businesses and the numerous opportunities available in various global markets. It highlights the importance of business expansion for economic development and the role of government support in facilitating this process. The report explores the concept of international entrepreneurship, examining the theory of internationalization and rapid internationalization. It analyzes the factors that drive rapid industrialization, including advancements in technology, the internet, and transportation. The report also discusses the rise of 'born global' firms, the barriers to internationalization, and the impact of globalization on employment, capital markets, and consumer behavior. It also addresses the environmental concerns and trade imbalances associated with internationalization, concluding with the overall benefits and challenges of expanding business operations across national boundaries.

INTERNATIONAL
ENTREPRENEURSHIP
(PART- 2)

SUMMARY
In this project report a detailed discussion regarding rapid internationalisation of
business and availability of number of opportunities in the different markets is
discussed. As development is taking place expansion of businesses has become
important in order to generate economic development. Growth of various economies in
the world has become stable and they need to be improved. In order to generate higher
development and grab various opportunities available in the market a business
organisation needs to be expanded in different nations of the globe. Government
considers benefits of expanding at international level and helps business organisations
in order to expand their operations in different markets. During the discussion, many
factors have been identified which act as a catalyst in the rapid process of
industrialisation.

INTRODUCTION
International entrepreneurship is an activity through which businesses are
expanded beyond national boundaries. This helps businesses to expand at large scale
and grab more and more market share. More and more firms are expanding their
businesses beyond the national boundary at a rapid pace. In this review paper
international entrepreneurship, the theory of internationalization and rapid
internationalization is discussed in a detailed manner.
.
MAIN BODY
Explaining rapid internationalization
By reviewing the views of Dachs and et.al., (2014) it has been analyzed that
internationalization is a process through which business activities are operated at
different locations beyond the national boundaries of a country. The process of
internationalization was initiated before several decades and form then improvement is
recorded in the scale of internationalization. At the initial stage there were only one or
two large business organizations that initiated to operate at the international level and
after that increment kept ongoing. Through rapid internationalization a business unit
grabs an opportunity to explore its target consumers for the first time and have a chance
to serve them effectively. It enables business organizations to gain an edge over the
competitors by expanding the potential market. Many organizations have significantly
increased their revenues and profits regards to internationalization. A low amount of
competition facilitates businesses to grow and enjoy sustainability.
Johanson and Mattsson, (2015), said that the process of internationalization
becomes rapid and fast in the 20th century when the usage of internet services
increases. As it enhances the expansion of businesses to international markets and
various opportunities are grabbed in different markets to become successful. Rapid
internationalization has a positive effect on the performance of a business by increasing
its scope for the advantage of first-mover. As the availability of the number of
opportunities are there in international markets and organization which make the rapid
move is benefited to enjoy all the opportunities available for the first mover to grab that
opportunity. Rapid internationalization turned out to be a competitive factor for the
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business as various business organizations are made available with several
opportunities and these opportunities provide competitive advantages to business
organizations. Businesses are expanded and the amount of contingency in the
operations is diversified to large scale operations to minimize the scale of risk in
business units. All the resources are available to the business organization which
initiates rapid internationalization. As some of the resources become inimitable for
business organizations that initiate business operations after a specific time.
As per the views of Kalinic and Forza, (2012), with the increasing use of
satellites, wireless communication, technology, internet and power devices such as
computers, laptops etcetera, Internationalisation and expansion of business beyond the
national boundaries has become viable for virtually every firm or organization.
Increasing the use of the internet as a channel for international distribution has been a
great assist in the process of trade between different countries. People can
communicate with each other globally at any point of time with much ease. Websites
such as Skype and FaceTime enables its users to interact on one-to-one video calls as
well. Meetings with employees located in a different part of the world can be easily done
with the help of such apps and service-providers. Banking transactions have also
become very convenient and cost-effective. All these factors have drastically changed
the way multi-national companies operate and created a revolution in the area of
international business since the physical distance between the countries has become
shorter than ever before. Developments made in the field of transportation have
facilitated the free flow of goods across the globe. All these advancements have
certainly acted as a catalyst in the process of internationalization and the number of
firms operating internationally is ever-increasing.
According to Maringe and et.al., (2013), Internationalisation is an incremental
process. An organization goes through certain steps in the process of its
internationalization and initially starts exporting to only those countries which are closer
in distance to their home market. The distance here means to determine how similar is
the importing country to the home or exporting country in terms of business culture,
background, language, market etcetera. Traditionally, it was considered that the firms
enter into international markets only after they have set-up a strong base in domestic
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markets. However, in today’s era, it is not necessarily true that internationalization is
always an incremental process. The factors mentioned above have significantly reduced
the barriers for any organization to expand its business internationally despite having
some scarcity of resources. Rather, recent researches in the field of international
business have shown that small firms these days bypass the incremental process and
focus on international markets shortly after their inception. These rapid internationalizing
firms have been named as ‘born global’.
By analyzing the views of De Wit, (2013) it has been determined that the rising success
of born global is attributed to the interrelation between three main factors which are new
market conditions, advancement in the field of technology and the increasing
competency of the people in these organizations especially the top management and
decision-makers. Further, it has been found out that the size of the home market also
plays an important role in determining the decision of the firms to go global. If the size of
the home market is large, then the firms are not much likely to expand their business
internationally and would rather focus on grabbing more market share within the
national boundaries. On the contrary, the small size of the home market increases the
chances of any organization to expand internationally.
Ou-Yang and et.al., (2016) said that the theory of internationalization has
some identifies barriers as well. Many reasons hinder the process of a firm expanding
its business to international markets. Lack of working capital to finance export activities,
inadequate human resources for internationalization, low-support from the home
government, failure in contacting potential consumers overseas etcetera are some of
the barriers. At times, language barriers also create difficulty in the process of
international trade.
Ou-Yang and et.al., (2016) said that traditionally, the theory of
internationalization was limited only to organizations dealing with manufacturing and
production of goods. It included fast-moving consumer goods, luxury products, capital
goods etcetera. The idea of internationalization was linked with exporting goods to the
international market. However, in the last few years, due to technological advancements
and facilities, there has been a massive increase in the exchange of services
internationally between the countries. Many organizations are following the practice of
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outsourcing their routine jobs like customer service to developing countries and focus
on their core competencies and research projects. This also leads to cost-effectiveness.
This also helps in the generation of more and more employment opportunities in
developing countries like India. The service trade is increasing at a faster rate than that
of trade in manufactured goods.
By analyzing the views of Wach, (2015) it is assessed that the rapid pace of
internationalization has created a lot of opportunities in the importing country. When
organizations expand their business to international markets, it leads to the creation of
many employment opportunities in the importing country. People are required for
carrying out operations effectively in the new country. Mostly, the firms that plan to
expand their business internationally appoint people from the country that they are
planning to import mainly because that person would have a better idea about the
market conditions and would bring in the element of trust for the company. This benefits
the overall pace of economic growth of that country. An increase in employment
opportunities increases the income of the consumers which consequently increases the
aggregate demand in the economy increasing production of goods and services paving
way for capital generation. Internationalization has also opened up a huge capital
market where countries in need of capital can borrow funds at low-interest rates.
Organizations that consider expanding their business beyond national boundaries
always have in mind the additional investment opportunities that international markets
have to offer. International business also can increase the goodwill of any organization.
Global business operations help increase the brand value of any firm in terms of
recognition and image. Many firms that were not able to generate much revenue in
domestic markets due to intense competition have performed exceptionally well at the
international markets. The free flow of goods across different countries all over the
world has impacted consumer behavior significantly. Consumers are having many
choices for any product type which provides them some bargaining power. The export
of better quality goods at competitive prices has increased the standard of living of the
people. The taste and preferences of consumers are changing with the movement of
luxury goods as well.
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Spowart and Wickramasekera, (2012) said that expanding the business to
different countries all over the world reduces the reliance of the organization on any
single market for revenue and profits. During a recession period in the economy of any
country, firms that operate internationally can shift focus on their other markets and
generate enough revenue for them to sustain during the recession period. However,
according to organizations that operate internationally although it benefits the importing
country initially by creating employment opportunities and increasing the capital flow in
the long-run these firms have the main motive of earning profits out of the international
markets and taking them back to their home countries. Internationalization has been
linked to increasing differences in income and wealth between rich and poor. It is quite
evident by the increasing rich-poor gap in countries such as Indian and China. It is,
however, difficult to examine the impact of internationalization on the economy of the
importing country in the long-run.
As per the views of (Pawęta, 2015), internationalization has created trade
imbalances all over the world. While some countries are performing exceptionally well in
the international markets and exporting at a huge level, developing countries struggle to
match the level of exports by these countries and often fall victim to these trade
imbalances. It becomes imperative for the government of these countries to adopt some
import control measures and increase the taxes on imports to handle the balance of
payments account. Small production units and medium-sized enterprises within the
country face immense competition from these multi-national companies. The goods
produced by these organizations are of better quality and are available at a lesser price
because of the use of capital intensive technologies of production. Due to a lack of
capital and limited resources, small and medium-sized enterprises are often not able to
run their operations profitably. The government of different countries is adopting
measures to provide some sort of protection and assistance to this production and
manufacturing houses. The rapid process of internationalization has badly affected the
environment. Carbon footprints, emission of greenhouse gases, global warming
etcetera have raised with the increased trade of goods and services. Opening avenues
for new international markets has increased the sales of the organizations which has led
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to an increase in production and manufacturing of goods. Industrial activity has
increased as a result of internationalization.
CONCLUSION
From the above project report on rapid internationalization it has been concluded
that internationalization generates a huge amount of benefits for businesses and the
economy of a nation. Expanding business at the international level brings economic
development to various countries as several benefits are available to businesses by
operating on a global scale. Rapid internationalization provides several benefits for
business and to grab these opportunity risks to become the first mover is taken. Many
factors such as technological advancement and increased access to the internet have
been very helpful in increasing the pace of internationalization. It can be concluded that
rapid internationalization provides many opportunities for the economic growth of both
countries engaged in the short-term and medium-term. However, it is rather difficult to
evaluate the impact of industrialization on the economy in the long-term.
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REFERENCES
Books and Journals
Dachs, B. and et.al., 2014. The internationalisation of business R&D. Edward Elgar
Publishing.
De Wit, H., 2013. An introduction to higher education internationalisation. Milan: Vita e
Pensiero.
Johanson, J. and Mattsson, L. G., 2015. Internationalisation in industrial systems—a
network approach. In Knowledge, networks and power (pp. 111-132). Palgrave
Macmillan, London.
Kalinic, I. and Forza, C., 2012. Rapid internationalization of traditional SMEs: Between
gradualist models and born globals. International Business Review. 21(4).
pp.694-707.
Maringe, F. and et.al., 2013. Emerging internationalisation models in an uneven global
terrain: Findings from a global survey. Compare: a journal of comparative and
international education. 43(1). pp.9-36.
Ou-Yang, H. Y. and et.al., 2016. The impacts of entrepreneurship on export orientation
and internationalisation: the moderating effects of family ownership and
involvement. International Journal of Innovation and Learning. 19(1). pp.1-24.
Pawęta, E., 2015. Entrepreneur-related constructs explaining the emergence of born
global firms: A systematic literature review. Entrepreneurial Business and
Economics Review. 3(4). pp.11-36.
Spowart, M. and Wickramasekera, R., 2012. Explaining internationalisation of small to
medium sized enterprises within the Queensland food and beverage
industry. International Journal of Business and Management. 7(6). pp.68-80.
Wach, K., 2015. Familiness and born globals: rapid internationalisation among Polish
family firms. Journal of Intercultural Management. 6(3). pp.177-186.
Zander, I. and et.al., 2015. Born globals and international business: Evolution of a field
of research. Journal of International Business Studies. 46(1). pp.27-35.
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