The illustration of the business network internationalization model as presented above is the layout presented by Johanson and Vahlne (2009) for understanding firms’ internationalizing. Their model is known as the Business Network Internationalization Process Model and is used to explain the gradual development of business networks and thereby the internationalization of firms. The context of the firms is determined by their network, and to become successful the firm establish trust and commitment in their partnerships. Thereby, the company gains access to knowledge and become able to identify opportunities and exploit those. That is how the firms gradually internationalize their activities to foreign markets, according to Johanson and Vahlne (2009). 3.1.3. The Industrial Network Model As can be expressed from the above section about the Uppsala model, this model treats internationalization independently of the situation and the competition of the market. But as the following statement puts it: “A basic assumption in the network model is that the individual firm is dependent on resources controlled by other firms. The companies get access to these external resources through their network positions. Because the development of positions takes time and depends on resource accumulations, a firm must establish and develop positions in relation to counterparts in foreign networks” (Hollensen, 2008 p. 62). Johanson and Mattson’s (1988) industrial network model tries to combine the two aspects. The model has two dimensions which firstly is the degree of internationalization of the market and secondly the degree of internationalization of the firm (Johanson & Mattson, 1988). The firm’s degree of internationalization refers to those positions that the company has in different nets, how strong these positions are, and how integrated they are. The degree of internationalization of the market refers to how internationalized the industry already is. A low degree of internationalization means that the national nets have few relationships with each other. On contrary, a high degree of internationalization of a production net implies that there are many and strong relationships between the different national sections. Therefore, this model can be used to determine to what degree the company should engage in and position itself in the networks. The two dimensions has created a matrix consisting of four different situations: the early starter, the lonely international, the late starter, and the international among others (Johanson & Mattson, 1988). The following figure shows this:
The illustration of the business network internationalization model as presented above is the layout presented by Johanson and Vahlne (2009) for understanding firms’ internationalizing. Their model is known as the Business Network Internationalization Process Model and is used to explain the gradual development of business networks and thereby the internationalization of firms. The context of the firms is determined by their network, and to become successful the firm establish trust and commitment in their partnerships. Thereby, the company gains access to knowledge and become able to identify opportunities and exploit those. That is how the firms gradually internationalize their activities to foreign markets, according to Johanson and Vahlne (2009). 3.1.3. The Industrial Network Model As can be expressed from the above section about the Uppsala model, this model treats internationalization independently of the situation and the competition of the market. But as the following statement puts it: “A basic assumption in the network model is that the individual firm is dependent on resources controlled by other firms. The companies get access to these external resources through their network positions. Because the development of positions takes time and depends on resource accumulations, a firm must establish and develop positions in relation to counterparts in foreign networks” (Hollensen, 2008 p. 62). Johanson and Mattson’s (1988) industrial network model tries to combine the two aspects. The model has two dimensions which firstly is the degree of internationalization of the market and secondly the degree of internationalization of the firm (Johanson & Mattson, 1988). The firm’s degree of internationalization refers to those positions that the company has in different nets, how strong these positions are, and how integrated they are. The degree of internationalization of the market refers to how internationalized the industry already is. A low degree of internationalization means that the national nets have few relationships with each other. On contrary, a high degree of internationalization of a production net implies that there are many and strong relationships between the different national sections. Therefore, this model can be used to determine to what degree the company should engage in and position itself in the networks. The two dimensions has created a matrix consisting of four different situations: the early starter, the lonely international, the late starter, and the international among others (Johanson & Mattson, 1988). The following figure shows this: