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The Uppsala model: Networks and micro-foundations

Author

Listed:
  • Jan-Erik Vahlne

    (University of Gothenburg)

  • Jan Johanson

    (Uppsala University)

Abstract

In our award-winning 2009 article, we further developed the model that we originally presented in 1977. We observed that firms form relationships and that those relationships become networks, and thus in the end the business macro environment consists of networks of relationships between firms. Those relationships have far-reaching consequences, especially in terms of opportunity recognition and development. Since 2009, we have applied the Uppsala model to a number of different IB issues, most notably the process of globalization, which we believe is best understood as a driver of the evolution of the multinational business enterprise (MBE). We suggest that our model can still be improved further by recognizing the general psychological characteristics of managers, for instance, what makes them tend to shy away from radical change and to prefer instead an incremental approach? What does this mean for internationalization? Generally, we think that the closer our assumptions are to reality, the better the resulting model.

Suggested Citation

  • 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.
    • Handle: RePEc:pal:jintbs:v:51:y:2020:i:1:d:10.1057_s41267-019-00277-x
    DOI: 10.1057/s41267-019-00277-x
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    References listed on IDEAS

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