Toward A New Model For Firm Internationalization: Conservative, Predictable, and Pacemaker Companies and Markets

• Author: Justin Paul,Rosarito Sánchez‐Morcilio
• Published date: 01 September 2019
• Date: 01 September 2019
• DOI: http://doi.org/10.1002/cjas.1512

Toward A New Model For Firm

Internationalization: Conservative, Predictable,

and Pacemaker Companies and Markets

Justin Paul*

University of Puerto Rico

Rosarito Sánchez-Morcilio

University of Puerto Rico

Abstract

Through this article we develop a new model for the interna-

tionalization of f‌irms, called the Conservative, Predictable

and Pacemaker (CPP) model, for extending research in the

domain of international business. The main purpose is to pro-

vide a new typology that can be used as a theoretical lens for

future research and to motivate researchers to think beyond

the established models, which are repeatedly used in many

studies. This article is based on primary data collected from

f‌irms in the information technology sector in Puerto Rico.

The CPP model may be useful for industry analysis and

research dealing with the growth and internationalization

of f‌irms across industries and countries. © 2018 ASAC.

Published by John Wiley & Sons, Ltd.

Keywords: Internationalization, conservatives, predictable

market, pacemakers

Résumé

Dans cet article, nous élaborons un nouveau modèle pour

l’internationalisation des entreprises appelé le modèle ‘Con-

servative, Predictable, and Pacemaker’(modèle CPP), dans

le souci de contribuer à la recherche en commerce interna-

tional. L’objectif principal est de fournir une nouvelle

typologie capable de servir de grille théorique dans les

recherches futures et d’encourager les chercheurs à penser

au-delà des modèles établis qu’on retrouve dans de

nombreuses études. L’article est basé sur des données

primaires recueillies auprès d’entreprises du secteur des

technologies de l’information à Porto Rico. Le modèle CPP

peut être utile pour l’analyse de l’industrie et pour la

recherche sur la croissance et l’internationalisation des

entreprises dans toutes les industries et dans tous les pays.

© 2018 ASAC. Published by John Wiley & Sons, Ltd.

Mots-clés: internationalisation, conservateurs, marché

prévisible, stimulateurs cardiaques

Introduction

Globalization, in terms of a balanced geographic

distribution of sales, ref‌lects a special, and rather unusual,

outcome of doing international business (IB). Traditionally,

scholars have focused on the organization of economic

activities, and less on the characteristics of regions

(Beugelsdijk, McCann, & Mudambi, 2010). The body of

international business literature is growing, and, while

notable contributions toward a theoretical and methodologi-

cal integration are evident, the f‌ield is potentially fragmented

and suffering from theoretical paucity (Jones, Coviello, &

Tang, 2011; Paul, Parthasarathy, & Gupta, 2017).

Internationalization constitutes an important form of or-

ganizational transformation for local f‌irms (Chittoor, Sarkar,

Ray, & Aulakh, 2009; Papadopoulos, Chen, & Thomas,

2002). Many of the world’s largest f‌irms are not global,

but regionally based in terms of market coverage breadth

and depth. Such regional concentration of sales has impor-

tant implications for various strands of mainstream research

(Rugman & Verbeke, 2004). Theoretical frameworks such

as the Uppsala model explain the process of internationaliza-

tion (Johanson & Vahlne, 1977, 2009), while the Born

[Correction added on 27 July 2018, after f‌irst online publication: The name

of the co-author has been updated]

The authors would like to thank the journal’s editorial team, including the

anonymous reviewers, associate editor,and editor-in-chief, for their valuable

and constructive comments on this article. Detailed and extensive comments

from Professor Masaki Kotabe (Temple University, USA, and Visiting Pro-

fessor, University of Puerto Rico), helped us in many ways. Feedback from

Professors Luciano Cirevegna (King’s College, London), Jay Anand (Ohio

State University), Eric Mas (University of North Texas), Heather Hughes

(USA), Apoorva Ghosh (New Delhi), and the reviewers of Academy of In-

ternational Business 2017 Conference (Dubai) were also useful in improv-

ing the quality of the manuscript. We also acknowledge the funding

received from University of Puerto Rico for conducting this study.

*Please address correspondence to: Justin Paul, Professor, Graduate School

of Business Administration, University of Puerto Rico, PO Box 23332, Rio

Piedras, Puerto Rico, PR, 00931, USA. Email: profjust@gmail.com

Canadian Journal of Administrative Sciences

Revue canadienne des sciences de l’administration

36: 336–349 (2019)

Published online 11 July 2018 in Wiley Online Library (wileyonlinelibrary.com) DOI: 10.1002/CJAS.1512

Can J Adm Sci

36(3), 336–349 (2019)© 2018 ASAC. Published by John Wiley & Sons, Ltd. 336