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The tortuous road to globalization for Volvo's heavy truck business: Extending the scope of the Uppsala model

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  • Vahlne, Jan-Erik
  • Ivarsson, Inge
  • Johanson, Jan

Abstract

The globalization of a firm is a time-consuming and incremental process similar in nature to the internationalization process. We adapt the Uppsala Internationalization Process Model ([Johanson and Vahlne, 1977] and [Johanson and Vahlne, 2009]) to explain the globalization process. We define globalization as an effort to optimize a business in terms of its configuration and coordination systems. Hence the globalization process is about making changes in these two aspects of firms. Globalization, like the internationalization process, is characterized by the management of complexities and uncertainties and that requires learning and commitment building. We "test" a globalization process variant of the Uppsala model on the globalization of Volvo's heavy truck business. We find support for our model, and find that the globalization process is indeed tortuous, and certainly not as easily managed as sometimes suggested by economists and management gurus.

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  • Vahlne, Jan-Erik & Ivarsson, Inge & Johanson, Jan, 2011. "The tortuous road to globalization for Volvo's heavy truck business: Extending the scope of the Uppsala model," International Business Review, Elsevier, vol. 20(1), pages 1-14, February.
  • Handle: RePEc:eee:iburev:v:20:y:2011:i:1:p:1-14
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    2. Dimitratos, Pavlos & Plakoyiannaki, Emmanuella & Thanos, Ioannis C. & Förbom, Yrjö Kristian, 2014. "The overlooked distinction of multinational enterprise subsidiary learning: Its managerial and entrepreneurial learning modes," International Business Review, Elsevier, vol. 23(1), pages 102-114.
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    7. Jan-Erik Vahlne & Waheed Akbar Bhatti, 2019. "Relationship Development: A Micro-Foundation for the Internationalization Process of the Multinational Business Enterprise," Management International Review, Springer, vol. 59(2), pages 203-228, April.
    8. Vahlne, Jan-Erik & Jonsson, Anna, 2017. "Ambidexterity as a dynamic capability in the globalization of the multinational business enterprise (MBE): Case studies of AB Volvo and IKEA," International Business Review, Elsevier, vol. 26(1), pages 57-70.
    9. Robert Wentrup, 2016. "The online–offline balance: internationalization for Swedish online service providers," Journal of International Entrepreneurship, Springer, vol. 14(4), pages 562-594, December.
    10. Bruno F. Abrantes, 2020. "Are Neoclassic Internationalization Models Enduring? A Case-Review of the Uppsala Paradigm," SAGE Open, , vol. 10(2), pages 21582440209, June.
    11. Bhatti, Waheed Akbar & Larimo, Jorma & Coudounaris, Dafnis N., 2016. "The effect of experiential learning on subsidiary knowledge and performance," Journal of Business Research, Elsevier, vol. 69(5), pages 1567-1571.
    12. Vanninen, Heini & Keränen, Joona & Kuivalainen, Olli, 2022. "Becoming a small multinational enterprise: Four multinationalization strategies for SMEs," International Business Review, Elsevier, vol. 31(1).
    13. Jan-Erik Vahlne & Jan Johanson, 2020. "The Uppsala model: Networks and micro-foundations," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(1), pages 4-10, February.
    14. Jan-Erik Vahlne & Jan Johanson, 2017. "From internationalization to evolution: The Uppsala model at 40 years," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 48(9), pages 1087-1102, December.
    15. Inge Ivarsson & Claes Göran Alvstam, 2017. "New technology development by Swedish MNEs in emerging markets: the role of co-location of R&D and production," Asian Business & Management, Palgrave Macmillan, vol. 16(1), pages 92-116, April.
    16. Jie Wu & Jan-Erik Vahlne, 2022. "Dynamic capabilities of emerging market multinational enterprises and the Uppsala model," Asian Business & Management, Palgrave Macmillan, vol. 21(5), pages 690-714, November.
    17. Aaltonen, Päivi Hanna Maria, 2020. "Piecing together a puzzle—A review and research agenda on internationalization and the promise of exaptation," International Business Review, Elsevier, vol. 29(4).
    18. José Pla-Barber & Pervez N. Ghauri, 2012. "Internationalization of service industry firms: understanding distinctive characteristics," The Service Industries Journal, Taylor & Francis Journals, vol. 32(7), pages 1007-1010, May.
    19. Bhatti, Waheed Akbar & Vahlne, Jan-Erik & Glowik, Mario & Larimo, Jorma Antero, 2022. "The impact of industry 4.0 on the 2017 version of the Uppsala model," International Business Review, Elsevier, vol. 31(4).
    20. Richard Glavee-Geo & Per Engelseth, 2016. "Safeguarding export and import transactions through relationships and networking," International Journal of Export Marketing, Inderscience Enterprises Ltd, vol. 1(1), pages 48-76.
    21. Cherbib, Jihene & Bahri, Fadia & Berraies, Sarra & Chebbi, Hela, 2023. "Towards the co-evolution of multinationals' and local firms' global strategies in an uncertain environment: Insights from International Joint Ventures," Journal of International Management, Elsevier, vol. 29(6).
    22. Léo-Paul Dana & Vanessa Ratten, 2017. "International entrepreneurship in resource-rich landlocked African countries," Journal of International Entrepreneurship, Springer, vol. 15(4), pages 416-435, December.
    23. Abdoulaye Oury Bah & Xie Kefan & Oji-Okoro Izuchukwu, 2015. "Strategies and Determinants of Foreign Direct Investment (FDI) Attraction," International Journal of Management Science and Business Administration, Inovatus Services Ltd., vol. 1(5), pages 81-89, April.
    24. Bangara, Athena & Freeman, Susan & Schroder, William, 2012. "Legitimacy and accelerated internationalisation: An Indian perspective," Journal of World Business, Elsevier, vol. 47(4), pages 623-634.

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