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Advisor(s)
Abstract(s)
This paper analytically and graphically examines the Uppsala model’s risk formula (Johanson & Vahlne,
1977) in its two variables: commitment and uncertainty. The graphical treatment of the variables
demonstrates the internationalization mechanism’s consistency with the risk formula. In particular,
commitment manipulation develops a risk management perspective to the model, wherein contingent
uncertainty is a central concept. Themain contribution consists in the composition of a set of hypotheses
on the effects of risk contingencies on a firm’s commitment behavior in different internationalization
phases. A pertinent remark that emerges from this analytical exercise is the Uppsala model’s contingent
nature, which explains the differences in the pattern and pace of the internationalization process, as well
as potential leapfrogging and market-exit moves.
Description
Keywords
Internationalization Internationalization process Uppsala model Risk Risk management Contingency Uncertainty Contingent uncertainty Commitment Knowledge
Pedagogical Context
Citation
FIGUEIRA-DE-LEMOS, Francisco; JOHANSON, Jan; VAHLNE, Jan-Erik - Risk management in the internationalization process of the firm: A note on the Uppsala model. Journal of World Business. ISSN 1090-9516. Vol. 46, N.º 2 (2011), p. 143–153
Publisher
Elsevier