Quarterly Publication

Document Type : Original Article

Authors

1 Associate Professor, Faculty of Entrepreneurship, University of Tehran, Tehran, Iran

2 PhD Candidate in Entrepreneurship, Faculty of Entrepreneurship, University of Tehran, Tehran, Iran

Abstract

Internationalization of businesses is considered as a key factor in economic development and growth of the economic entities. On the other hand, the ability of the system in terms of endurance and reliability is inevitably dependent on the success that the system gains in communicating with the external environment; in other words, the sustainability of the system entirely depends on the system capability in terms of adaptation and responsiveness to the environment. Furthermore, technology-based businesses are highly dynamic and use different internationalization patterns. A literature review shows that comprehensive studies have not been conducted despite the necessity of today’s businesses to move toward sustainable internationalization. Therefore, this research examines the existing patterns by presenting a model of sustainable internationalization in technology-based businesses. In the present study, six technology-based businesses in oil and gas industry have been investigated using a multi-case interview method. The validity and reliability of the data collection tools have been confirmed. The results of the interviews performed during the two coding stages revealed that economic, environmental, social, and technological factors are among the factors influencing the adoption of sustainable business internationalization strategies along with a focus on a sustainable business model. This study also presents different types of sustainable internationalization strategies and classifies the sustainability index of internationalization under two categories of profitability and sustainability of the relationships in the network.

Keywords

Main Subjects

Abdelkafi, N. and Täuscher, K., 2016. Business Models for Sustainability from a System Dynamics Perspective. Organization and Environment, 29(1), pp. 74–96.

Baden-Fuller, C. and Mangematin, V., 2013. Business models: A challenging agenda. Strategic Organization, 11(4), pp. 418–427.

Békés, G., 2014. Internationalization and Innovation of Firms: Evidence and Policy Carlo Altomonte, Tommaso Aquilante, Gábor Békés and Gianmarco Ottaviano Special Paper, 32.

Bocken, N., Boons, F., and Baldassarre, B., 2019. Sustainable Business Model Experimentation by Understanding Ecologies of Business Models. Journal of Cleaner Production, 208, pp. 1498–1512.

Bocken, N.M., De Pauw, I., Bakker, C. and Van Der Grinten, B., 2016. Product Design and Business Model Strategies for a Circular Economy. Journal of Industrial and Production Engineering, 33(5), pp. 308–320.

Böhringer, C., and Jochem, P. E., 2007. Measuring the Immeasurable—A Survey of Sustainability Indices. Ecological Economics, 63(1), pp 1–8.

Boons, F. and Lüdeke-Freund, F., 2013. Business models for Sustainable Innovation: State-of-the-art and Steps Towards a Research Agenda. Journal of Cleaner Production, 45, pp. 9–19.

Cadogan, J. W., Kuivalainen, O., and Sundqvist, S., 2009. Export Market-oriented Behavior and Export performance: Quadratic and Moderating Effects under Differing Degrees of Market Dynamism and Internationalization. Journal of International Marketing,17(4), pp. 71–89.

Cannone, G. and Ughetto, E., 2015. Internationalization Flows of High-Tech Start-ups: A Gravity Model. European Business Review.

Chetty, S., Johanson, M., and Martín, O. M., 2014. Speed of Internationalization: Conceptualization, Measurement and Validation. Journal of World Business, 49(4),pp. 633–650.

Clinton, L. and Whisnant, R., 2014. Model Behavior–20 Business Model Innovations for Sustainability. Sustainability, London.

Dentchev, N., Baumgartner, R., Dieleman, H., Jóhannsdóttir, L., Jonker, J., Nyberg, T., Tang, X., 2016. Embracing the Variety of Sustainable Business Models: Social Entrepreneurship, Corporate Intrapreneurship, creativity, Innovation, and other Approaches to Sustainability Challenges. Journal of cleaner Production.

Engert, S., and Baumgartner, R. J., 2016. Corporate Sustainability Strategy–Bridging the Gap Between Formulation and Implementation. Journal of Cleaner Production, 113, pp. 822–834.

Evans, S., Vladimirova, D., Holgado, M., Van Fossen, K., Yang, M., Silva, E.A. and Barlow, C.Y., 2017. Business Model Innovation for Sustainability: Towards a Unified Perspective for Creation of Sustainable Business Models. Business Strategy and the Environment, 26(5), pp. 597–608.

Ferm, J., 2018. Business Model Change and Internationalization of Finnish Cleantech SMEs.

Geissdoerfer, M., Vladimirova, D., and Evans, S., 2018. Sustainable Business Model Innovation: A Review. Journal of Cleaner Production,198, pp. 401–416.

Hollensen, S., 1998. Global Marketing: A Market-Responsive Approach.

Jabłoński, A., 2016. Scalability of Sustainable Business Models in Hybrid Organizations. Sustainability, 8(3), P. 194.

Jaffe, E. D., and Pasternak, H., 1994. An Attitudinal Model to Determine the Export Intention of non‐Exporting, Small Manufacturers. International Marketing Review.

Johanson, J., and Mattsson, L. G., 1988. Internationalization in Industrial Systems- a Network Approach, in Hood, N. and Vahlne, J.-E. (Eds), Strategies in Global Competition, Croom Helm, Beckenham.

Johanson, J., and Vahlne, J. E., 1977. The Internationalization Process of the Firm - a Model of knowledge Development and Increasing Foreign Market Commitment. Journal of International Business Studies (8), pp. 23–32.

Johanson, J. and Wiedersheim-Paul, F., 1975. The Internationalization of the Firm: Four Swedish Cases. Journal of Management Studies, 12(3), pp. 305–322.

Kramer, M. R., and Porter, M., 2011. Creating shared value. Harvard business review, 89(2/1), pp. 62–77.

Kowalski, R. M., Giumetti, G. W., Schroeder, A. N., and Lattanner, M. R., 2014. Bullying in the Digital Age: A Critical Review and Meta-analysis of Cyberbullying Research Among Youth. Psychological Bulletin, 140(4), P. 1073.

Lassala, C., Apetrei, A., and Sapena, J., 2017. Sustainability Matter and Financial Performance of Companies. Sustainability, 9(9), P.1498.

Löfgren, A., 2014. International Network Management for the Purpose of Host Market Expansion: The Mediating effect of Co-Innovation in the Networks of SMEs. Journal of International Entrepreneurship, 12(2), pp. 162–182.

Moldan, B., Janoušková, S., and Hák, T., 2012. How to Understand and Measure Environmental Sustainability: Indicators and Targets. Ecological Indicators, 17, pp. 4–13.

Morioka, S. N., Evans, S., and De Carvalho, M. M. (2016). Sustainable Business Model Innovation: Exploring Evidences in Sustainability Reporting. Procedia Cirp, 40, pp. 659–667.

Morgan III, C. A., Hazlett, G., Doran, A., Garrett, S., Hoyt, G., Thomas, P., Southwick, S. M., 2004. Accuracy of Eyewitness Memory for Persons Encountered During Exposure to Highly Intense Stress. International Journal of law and Psychiatry, 27(3), pp. 265–279.

Nidumolu, R., Prahalad, C. K., and Rangaswami, M. R., 2009. Why Sustainability Is now the Key Driver of Innovation. Harvard Business Review, 87(9), pp. 56–64.

Ortiz, A., Chang, L., and Fang, Y., 2015. International Student mobility Trends 2015: An Economic Perspective. World Education News and Reviews, 1.

Osterwalder, A., Pigneur, Y., Bernarda, G. and Smith, A., 2014. Value Proposition Design: How to Create Products and Services Customers want. John Wiley & Sons.

Osterwalder, A. and Pigneur, Y., 2010. Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers. John Wiley & Sons.

Osterwalder, A. (2004). The Business Model Ontology a Proposition in a Design Science Approach (Doctoral Dissertation, Université de Lausanne, Faculté des Hautes études Commerciales).

Oviatt, B.M. and McDougall, P.P., 1997. Challenges for Internationalization Process Theory: The Case of International New Ventures. MIR: Management International Review, pp. 85–99.

Park, S. B., 2018. Multinationals and sustainable development: Does Internationalization Develop Corporate Sustainability of Emerging Market Multinationals? Business Strategy and the Environment,27(8), pp. 1514–1524.

Parry, G. and Tasker, P., 2014. Value and Servitization: Creating Complex Deployed Responsive Services. Strategic Change, 23(5–6), pp. 303–315.

Rashid, A., Asif, F. M., Krajnik, P., and Nicolescu, C. M., 2013. Resource Conservative Manufacturing: An Essential Change in Business and Technology Paradigm for Sustainable Manufacturing. Journal of cleaner production, 57, pp. 166–177.

Raskin, P. D., Electris, C., and Rosen, R. A., 2010. The Century Ahead: Searching for Sustainability. Sustainability, 2(8), pp. 2626–2651.

Ruzzier, M., Antoncic, B., Hisrich, R. D., and Konecnik, M., 2007. Human Capital and SME internationalization: A Structural Equation Modeling Study. Canadian Journal of Administrative Sciences/Revue Canadienne des Sciences de l'Administration, 24(1), pp. 15–29.

Sarmad, Z., Bazargan, A., and Hejazi, A., 2008. Research Methods in Behavioral Sciences. Tehran: Agah Publication.

Senik, Z. C., Isa, R. M., Sham, R. M., and Ayob, A. H., 2014. A Model for Understanding SMEs Internationalization in Emerging Economies. Jurnal Pengurusan (UKM Journal of Management), 41.

Servaes, J., Polk, E., Shi, S., Reilly, D., and Yakupitijage, T., 2012. Towards a Framework of Sustainability Indicators for Communication for Development and Social Change Projects. International Communication Gazette, 74(2),pp. 99–123.

Skrt, B., and Antoncic, B., 2004. Strategic Planning and Small Firm Growth: An Empirical Examination. Managing Global Transitions, 2(2), P. 107.

Strauss, A., and Corbin, J., 1990. Basics of Qualitative Research: Sage Publications.

Tallman, S. and Li, J., 1996. Effects of International Diversity and Product Diversity on the Performance of multinational Firms. Academy of Management Journal, 39(1), pp. 179–196.

 

Wells, P., 2013. Sustainable Business Models and the Automotive Industry: A Commentary. IIMB Management Review, 25(4), pp. 228–239.

Abdelkafi, N. and Täuscher, K., 2016. Business Models for Sustainability from a System Dynamics Perspective. Organization and Environment, 29(1), pp. 74–96.

Baden-Fuller, C. and Mangematin, V., 2013. Business models: A challenging agenda. Strategic Organization, 11(4), pp. 418–427.

Békés, G., 2014. Internationalization and Innovation of Firms: Evidence and Policy Carlo Altomonte, Tommaso Aquilante, Gábor Békés and Gianmarco Ottaviano Special Paper, 32.

Bocken, N., Boons, F., and Baldassarre, B., 2019. Sustainable Business Model Experimentation by Understanding Ecologies of Business Models. Journal of Cleaner Production, 208, pp. 1498–1512.

Bocken, N.M., De Pauw, I., Bakker, C. and Van Der Grinten, B., 2016. Product Design and Business Model Strategies for a Circular Economy. Journal of Industrial and Production Engineering, 33(5), pp. 308–320.

Böhringer, C., and Jochem, P. E., 2007. Measuring the Immeasurable—A Survey of Sustainability Indices. Ecological Economics, 63(1), pp 1–8.

Boons, F. and Lüdeke-Freund, F., 2013. Business models for Sustainable Innovation: State-of-the-art and Steps Towards a Research Agenda. Journal of Cleaner Production, 45, pp. 9–19.

Cadogan, J. W., Kuivalainen, O., and Sundqvist, S., 2009. Export Market-oriented Behavior and Export performance: Quadratic and Moderating Effects under Differing Degrees of Market Dynamism and Internationalization. Journal of International Marketing,17(4), pp. 71–89.

Cannone, G. and Ughetto, E., 2015. Internationalization Flows of High-Tech Start-ups: A Gravity Model. European Business Review.

Chetty, S., Johanson, M., and Martín, O. M., 2014. Speed of Internationalization: Conceptualization, Measurement and Validation. Journal of World Business, 49(4),pp. 633–650.

Clinton, L. and Whisnant, R., 2014. Model Behavior–20 Business Model Innovations for Sustainability. Sustainability, London.

Dentchev, N., Baumgartner, R., Dieleman, H., Jóhannsdóttir, L., Jonker, J., Nyberg, T., Tang, X., 2016. Embracing the Variety of Sustainable Business Models: Social Entrepreneurship, Corporate Intrapreneurship, creativity, Innovation, and other Approaches to Sustainability Challenges. Journal of cleaner Production.

Engert, S., and Baumgartner, R. J., 2016. Corporate Sustainability Strategy–Bridging the Gap Between Formulation and Implementation. Journal of Cleaner Production, 113, pp. 822–834.

Evans, S., Vladimirova, D., Holgado, M., Van Fossen, K., Yang, M., Silva, E.A. and Barlow, C.Y., 2017. Business Model Innovation for Sustainability: Towards a Unified Perspective for Creation of Sustainable Business Models. Business Strategy and the Environment, 26(5), pp. 597–608.

Ferm, J., 2018. Business Model Change and Internationalization of Finnish Cleantech SMEs.

Geissdoerfer, M., Vladimirova, D., and Evans, S., 2018. Sustainable Business Model Innovation: A Review. Journal of Cleaner Production,198, pp. 401–416.

Hollensen, S., 1998. Global Marketing: A Market-Responsive Approach.

Jabłoński, A., 2016. Scalability of Sustainable Business Models in Hybrid Organizations. Sustainability, 8(3), P. 194.

Jaffe, E. D., and Pasternak, H., 1994. An Attitudinal Model to Determine the Export Intention of non‐Exporting, Small Manufacturers. International Marketing Review.

Johanson, J., and Mattsson, L. G., 1988. Internationalization in Industrial Systems- a Network Approach, in Hood, N. and Vahlne, J.-E. (Eds), Strategies in Global Competition, Croom Helm, Beckenham.

Johanson, J., and Vahlne, J. E., 1977. The Internationalization Process of the Firm - a Model of knowledge Development and Increasing Foreign Market Commitment. Journal of International Business Studies (8), pp. 23–32.

Johanson, J. and Wiedersheim-Paul, F., 1975. The Internationalization of the Firm: Four Swedish Cases. Journal of Management Studies, 12(3), pp. 305–322.

Kramer, M. R., and Porter, M., 2011. Creating shared value. Harvard business review, 89(2/1), pp. 62–77.

Kowalski, R. M., Giumetti, G. W., Schroeder, A. N., and Lattanner, M. R., 2014. Bullying in the Digital Age: A Critical Review and Meta-analysis of Cyberbullying Research Among Youth. Psychological Bulletin, 140(4), P. 1073.

Lassala, C., Apetrei, A., and Sapena, J., 2017. Sustainability Matter and Financial Performance of Companies. Sustainability, 9(9), P.1498.

Löfgren, A., 2014. International Network Management for the Purpose of Host Market Expansion: The Mediating effect of Co-Innovation in the Networks of SMEs. Journal of International Entrepreneurship, 12(2), pp. 162–182.

Moldan, B., Janoušková, S., and Hák, T., 2012. How to Understand and Measure Environmental Sustainability: Indicators and Targets. Ecological Indicators, 17, pp. 4–13.

Morioka, S. N., Evans, S., and De Carvalho, M. M. (2016). Sustainable Business Model Innovation: Exploring Evidences in Sustainability Reporting. Procedia Cirp, 40, pp. 659–667.

Morgan III, C. A., Hazlett, G., Doran, A., Garrett, S., Hoyt, G., Thomas, P., Southwick, S. M., 2004. Accuracy of Eyewitness Memory for Persons Encountered During Exposure to Highly Intense Stress. International Journal of law and Psychiatry, 27(3), pp. 265–279.

Nidumolu, R., Prahalad, C. K., and Rangaswami, M. R., 2009. Why Sustainability Is now the Key Driver of Innovation. Harvard Business Review, 87(9), pp. 56–64.

Ortiz, A., Chang, L., and Fang, Y., 2015. International Student mobility Trends 2015: An Economic Perspective. World Education News and Reviews, 1.

Osterwalder, A., Pigneur, Y., Bernarda, G. and Smith, A., 2014. Value Proposition Design: How to Create Products and Services Customers want. John Wiley & Sons.

Osterwalder, A. and Pigneur, Y., 2010. Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers. John Wiley & Sons.

Osterwalder, A. (2004). The Business Model Ontology a Proposition in a Design Science Approach (Doctoral Dissertation, Université de Lausanne, Faculté des Hautes études Commerciales).

Oviatt, B.M. and McDougall, P.P., 1997. Challenges for Internationalization Process Theory: The Case of International New Ventures. MIR: Management International Review, pp. 85–99.

Park, S. B., 2018. Multinationals and sustainable development: Does Internationalization Develop Corporate Sustainability of Emerging Market Multinationals? Business Strategy and the Environment,27(8), pp. 1514–1524.

Parry, G. and Tasker, P., 2014. Value and Servitization: Creating Complex Deployed Responsive Services. Strategic Change, 23(5–6), pp. 303–315.

Rashid, A., Asif, F. M., Krajnik, P., and Nicolescu, C. M., 2013. Resource Conservative Manufacturing: An Essential Change in Business and Technology Paradigm for Sustainable Manufacturing. Journal of cleaner production, 57, pp. 166–177.

Raskin, P. D., Electris, C., and Rosen, R. A., 2010. The Century Ahead: Searching for Sustainability. Sustainability, 2(8), pp. 2626–2651.

Ruzzier, M., Antoncic, B., Hisrich, R. D., and Konecnik, M., 2007. Human Capital and SME internationalization: A Structural Equation Modeling Study. Canadian Journal of Administrative Sciences/Revue Canadienne des Sciences de l'Administration, 24(1), pp. 15–29.

Sarmad, Z., Bazargan, A., and Hejazi, A., 2008. Research Methods in Behavioral Sciences. Tehran: Agah Publication.

Senik, Z. C., Isa, R. M., Sham, R. M., and Ayob, A. H., 2014. A Model for Understanding SMEs Internationalization in Emerging Economies. Jurnal Pengurusan (UKM Journal of Management), 41.

Servaes, J., Polk, E., Shi, S., Reilly, D., and Yakupitijage, T., 2012. Towards a Framework of Sustainability Indicators for Communication for Development and Social Change Projects. International Communication Gazette, 74(2),pp. 99–123.

Skrt, B., and Antoncic, B., 2004. Strategic Planning and Small Firm Growth: An Empirical Examination. Managing Global Transitions, 2(2), P. 107.

Strauss, A., and Corbin, J., 1990. Basics of Qualitative Research: Sage Publications.


Tallman, S. and Li, J., 1996. Effects of International Diversity and Product Diversity on the Performance of multinational Firms. Academy of Management Journal, 39(1), pp. 179–196.

Wells, P., 2013. Sustainable Business Models and the Automotive Industry: A Commentary. IIMB Management Review, 25(4), pp. 228–239.