Emerging Paradigms of International Entrepreneurship

Abstract

The rapid increase in the globalization of businessesin recent yearscan be attributed to two events:the downfall of thenation-state as the main macroeconomic unit of international economic activityand the departure of the stand-alone firm as the essential unit ofcompetition.The decreased significance of these roles had an importantimpact on the functioning of small- and medium-sized enterprises (SMEs). Thedecline in the importance of the nation-state is investigated, looking at pastresearch. The implications of the reduction of national power in favor of global powerare discussed, and the trend toward an increase in localized power isexamined.Additionally, the demise of the firm as a primary player isstudied, focusing on the increased significance of firm alliances and networks.Several traditional, unipolar models of internationalization, such asInternalization Theory and the Eclectic Paradigm, are described. Then, morecurrent models relating to networking are presented, and several examples ofmajor firm alliances are examined. Finally, a new paradigm of multipolar competition is submitted, with thecontrol originating from interdependence and mutuality of benefits. The newparadigm is discussed in terms of its relationship to SMEs. Current challengesin globalization are addressed, and the implications of this shifting paradigmupon management are discussed. (AKP)