Risk management in the internationalization process of the firm: A note on the Uppsala model

Figueira-de-Lemos, Francisco; Johanson, Jan; Vahlne, Jan-Erik
April 2011
Journal of World Business;Apr2011, Vol. 46 Issue 2, p143
Academic Journal
Abstract: This paper analytically and graphically examines the Uppsala model''s risk formula () 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. The main 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.


Related Articles

  • ASPECTS RELATED TO RISK MANAGEMENT IN OIL AND GAS INDUSTRY. COSTEL, STANCA; ELENA-CRISTINA, ANGHEL // Analele Universitatii Maritime Constanta;2013, Vol. 14 Issue 20, p287 

    The presence of risk in almost every human situation, activity and sector has determined the increasingly rapid development of the risk management discipline. Depending on the context, there are various descriptions of what risk management involves. Like in many other industries, oil and gas...

  • Internationalization processes in stable and unstable market conditions: Towards a model of commitment decisions in dynamic environments. Figueira-de-Lemos, Francisco; Hadjikhani, Amjad // Journal of World Business;Jul2014, Vol. 49 Issue 3, p332 

    Abstract: This article proposes a managerial decision framework to deal with internationalization whether in stable or dynamic environments. While displaying the effects of unstable and stable environmental settings on commitment decisions, the framework is the result of an inferential abductive...

  • O PAPEL DA CONFIANÇA NA MARCA NA INTENÇÃO DE ADOÇÃO DE NOVAS TECNOLOGIAS. Terres, Mellina da Silva; Koetz, Clara Isabel; dos Santos, Cristiane Pizzutti; ten Caten, Carla Schwengber // Revista de Administração e Inovação - RAI;out-dez2010, Vol. 7 Issue 4, p162 

    The process of adopting a new technology is characterized by asymmetric information, where the manufacturer is fully aware of the technology's characteristics, but the end-user, to whom this technology is designed, has little access to information. In order to minimize asymmetry, hence reducing...

  • LAS MÚLTIPLES CARAS DE LA VOLATILIDAD. Z., Carlos Jaramillo // Debates IESA;ene-mar2010, Vol. 15 Issue 1, p32 

    No abstract available.

  • RISK AND UNCERTAINTY OF ENTERPRISE DURING DYNAMIC ENVIRONMENTAL CHANGES. Chitakornkijsil, Pranee // International Journal of Organizational Innovation;Fall2010, Vol. 3 Issue 2, p162 

    An enterprise system exists under conditions of risk and uncertainty. In this case, risk refers to the variability of outcomes (or returns). If an enterprise system has no risk, the return is certain. The enterprise system operating in a risk-free environment would continue to expand forever,...

  • PRAGMATIC RISK MANAGEMENT IN A TIGHTLY-COUPLED WORLD. Mizgier, Kamil J.; Thakur-Weigold, Bublu; Wagner, Stephan M. // Ivey Business Journal;Mar/Apr2014, p1 

    The article discusses the risk management approach which must be considered by companies in a tightly-coupled world. Topics discussed include the Chapter 11 bankruptcy filed by automobile manufacturer General Motors (GM) in the middle of 2009, the new opportunities and threats created by...

  • COLLECTIVIST ORIENTATION AS A PREDICTOR OF AFFECTIVE ORGANIZATIONAL COMMITMENT: A STUDY CONDUCTED IN CHINA. Lei Wang; Bishop, James W.; Xiangming Chen; Scott, K. Dow // International Journal of Organizational Analysis (1993 - 2002);2002, Vol. 10 Issue 3, p226 

    This study tested the hypothesis of collectivist orientation as a predictor of affective organizational commitment. Data from 510 employees working in two organizations in China supported the hypothesis, that is, collectivist orientation is a significant predictor of affective organizational...

  • The Prime Directive for Organizations. Mackenzie, Kenneth D. // International Journal of Organizational Analysis (1993 - 2002);Oct98, Vol. 6 Issue 4, p289 

    Explores the prime directive to ensure the welfare of an organization called commons. Characteristics that must be consistent to ensure the welfare of the commons; Information on the organization as a commons; Evolution of the prime directive in companies.

  • Ten Commitments. Boulter, Janet // Executive Excellence;Nov98, Vol. 15 Issue 11, p4 

    Discusses ten commitments that companies must make and keep in order to grow their business. Importance of knowing the core values of the company; How to visualize the future; How to learn something new everyday.


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics