Edited by Mika Gabrielsson and V. H. Manek Kirpalani
Chapter 15: Characteristics of Born Global Industries: The Birth of Offshore Renewables
Nicolai Løvdal and Arild Aspelund INTRODUCTION Raymond Vernon’s (1966) product life cycle theory of trade has been central to the way that scholars have depicted internationalization of industries. By following the life cycle of a product, Vernon explains how the associated industries internationalize as a result of the actors’ quest for new markets and reaction towards increased competition. Vernon’s theory is cited and explained in just about every student textbook on international business and has provided clear and relevant guidelines for both international managers and policy makers on how industries gradually globalize as product offers, technologies, organizations, and competition mature. Vernon’s theory is paralleled with how the internationalization of firms has traditionally been viewed. Developed slightly later, the stage models of internationalization became the reigning paradigm of firm internationalization (Andersen 1993). The stage models depict internationalization of firms as a slow and gradual process that is initiated only after domestic maturation. They are frequently referred to as the ‘Uppsala internationalization model’ and the ‘innovation-related model’ (ibid.) depending on whether they view firm internationalization to be a learning process or an organizational change process (Aspelund and Madsen 2009). The stage models have also dominated the textbooks on firm internationalization until recently, and have provided managers and policy makers with advice on how to internationalize ventures and industries after domestic maturation. However, the validity of the stage models has been increasingly challenged as we have seen a broad and growing literature suggesting that organizations to a lesser degree follow a gradual...
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