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This timely book introduces Reijo Luostarinen’s Helsinki Model of firm internationalization processes to a new audience. As one of the neglected treasures of the field of International Business (IB), the Helsinki Model has remained largely inaccessible to a global readership - until now.The book features Luostarinen’s original PhD thesis, and commentaries that explore and extend his work. Contributors illustrate the enduring applicability and the future potential of the Helsinki Model. They engage with Luostarinen’s legacy to re-energize research on the internationalization processes of the firm, a cornerstone of the IB field.Students of IB, organization studies and management theory will benefit from the original ideas and in-depth analysis provided in this book. It is also a useful resource for established scholars, particularly members of the European International Business Academy and the Academy of International Business.
Edited by Rebecca Piekkari, Marcus Wallenberg Chair of International Business, Department of Management Studies, Aalto University, School of Business, Finland and Catherine Welch, Chair of Strategic Management, Trinity College Dublin, Ireland
ContentsForeword ixIntroducing the Helsinki Model of the internationalization processes of the firm 1Rebecca Piekkari and Catherine WelchPART I REIJO LUOSTARINEN: INTERNATIONALIZATION OFTHE FIRM (1979)Preface 221 Introduction 252 Development of the theoretical framework for the study 373 Lateral rigidity and international involvement of the firm 534 Smallness and openness of domestic markets as pressure determinantsfor internationalization 615 Determining the internationalization strategy of the firm 786 Dynamics of internationalization of the firm 1257 Summary, conclusions and recommendations 139Bibliography 149Appendices 158PART II COMMENTARIES8 Organizational capacity and inertia: their importance in theinternationalization process of firms 171Lawrence Welch9 The Helsinki internationalization process model: a perspective from Uppsala 176Mats Forsgren10 Big ideas with little hullabaloo: Luostarinen’s little trodden path 183Peter Liesch11 Systems selling and package deals: an under-researched area ininternational business 192Pervez Ghauri12 Reijo Luostarinen’s approach to value chain activity in firminternationalization: a key contribution to entry mode research 200Gabriel R. G. Benito and Bent Petersen13 Time and dynamism in the Helsinki internationalization process model 208Eriikka Paavilainen-Mäntymäki and Leila Hurmerinta14 The Helsinki internationalization process model and POM posture:deviations, explanations, and future research 220Mika Gabrielsson15 The role of foreign-born employees in inward–outwardinternationalization of SMEs: an organizational capacity perspective 235Johanna Niskavaara16 Lateral rigidity and microfoundational perspectives in firminternationalization: revisiting Reijo Luostarinen’s insights 249Aleksi Niittymies17 Seeing the forest for the trees: building a managerially relevant theoryof firm internationalization 261Ciara O’Higgins18 Longitudinal research projects with societal interaction: what can welearn from studying the dynamics of IB phenomena? 272Perttu Kähäri19 Reijo Luostarinen and Jorma Larimo: a multigenerational researchagenda on international business in Finland 285Ahmad Arslan and Minnie Kontkanen20 Reijo Luostarinen’s legacy: a personal perspective from outside academia 292Mikko KosonenAfterword: connecting the dots: reflections on Reijo Luostarinen’s thesis andlife’s work 297Niina Nummela
‘The book should work well as a catalyst for reflection, discussions, and the formation of new ideas ... Although several audiences may benefit from reading the volume, including senior researchers and IB teachers who want to learn the essentials of research on firm internationalization ... it is tempting to declare it a “must read” for young scholars with an interest in firm internationalization.’