The Helsinki Internationalization Process Model: Foundations and Future Agenda

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.

Table of Contents:
Contents Foreword ix Introducing the Helsinki Model of the internationalization processes of the firm 1 Rebecca Piekkari and Catherine Welch PART I REIJO LUOSTARINEN: INTERNATIONALIZATION OF THE FIRM (1979) Preface 22 1 Introduction 25 2 Development of the theoretical framework for the study 37 3 Lateral rigidity and international involvement of the firm 53 4 Smallness and openness of domestic markets as pressure determinants for internationalization 61 5 Determining the internationalization strategy of the firm 78 6 Dynamics of internationalization of the firm 125 7 Summary, conclusions and recommendations 139 Bibliography 149 Appendices 158 PART II COMMENTARIES 8 Organizational capacity and inertia: their importance in the internationalization process of firms 171 Lawrence Welch 9 The Helsinki internationalization process model: a perspective from Uppsala 176 Mats Forsgren 10 Big ideas with little hullabaloo: Luostarinen’s little trodden path 183 Peter Liesch 11 Systems selling and package deals: an under-researched area in international business 192 Pervez Ghauri 12 Reijo Luostarinen’s approach to value chain activity in firm internationalization: a key contribution to entry mode research 200 Gabriel R. G. Benito and Bent Petersen 13 Time and dynamism in the Helsinki internationalization process model 208 Eriikka Paavilainen-Mäntymäki and Leila Hurmerinta 14 The Helsinki internationalization process model and POM posture: deviations, explanations, and future research 220 Mika Gabrielsson 15 The role of foreign-born employees in inward–outward internationalization of SMEs: an organizational capacity perspective 235 Johanna Niskavaara 16 Lateral rigidity and microfoundational perspectives in firm internationalization: revisiting Reijo Luostarinen’s insights 249 Aleksi Niittymies 17 Seeing the forest for the trees: building a managerially relevant theory of firm internationalization 261 Ciara O’Higgins 18 Longitudinal research projects with societal interaction: what can we learn from studying the dynamics of IB phenomena? 272 Perttu Kähäri 19 Reijo Luostarinen and Jorma Larimo: a multigenerational research agenda on international business in Finland 285 Ahmad Arslan and Minnie Kontkanen 20 Reijo Luostarinen’s legacy: a personal perspective from outside academia 292 Mikko Kosonen Afterword: connecting the dots: reflections on Reijo Luostarinen’s thesis and life’s work 297 Niina Nummela

About the Author :
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

Review :
‘Renouncing easy linear understanding of the internationalizing firm bolting on or deleting activities – the “Helsinki Model” of Reijo Luostarinen and more recent contributions, including by editors Piekkari and Welch – unseats us from our time-reversible worldview: the whole firm and its context always changes, along with the way we must think.’ ‘This carefully crafted book offers engaging papers, including personal insights from those who knew Reijo Luostarinen. We are reminded of his tour de force research program that spanned three decades and generated foundational insights from smaller firms based in smaller markets. This is a must read to appreciate the multidimensionality of internationalization and the importance of decision-maker characteristics in that process.’ ‘This book makes a highly valuable contribution to the field of the internationalization process of the firm by highlighting the contributions of Professor Reijo Luostarinen. The included commentaries show his deep insights, largely derived from close contact with business managers: he offered a realistic view of the internationalization process, addressing both inward and outward operations, the interplay with organizational capacity, the role of the decision-making manager, and more.’ ‘This book aims to reintroduce the Helsinki Model of the internationalization processes of the firm into mainstream international business research. It does so in an excellent series of chapters that outline, critique and extend the model in an engaging fashion. For the wider IB research community, the book introduces concepts and constructs that illuminate the behavioural tradition of internationalization research.’