Internationalization of a Software Firm in Colombia -Case Study Sophos Banking Solutions
DOI:
https://doi.org/10.4067/S0718-27242014000300013Keywords:
Internationalization process, software firms, ColombiaAbstract
The internationalization phenomenon can be described as the set of processes which helps identifying, entering, establishing and expanding to international markets. Depending on the company and its industry, different internationalization processes might be entertained. This study analyzes the entry modes and market selection strategies followed by Sophos Banking Solutions, a Colombian software company, and also identifies the influencing factors determining their internationalization process. By exploring the existing theories on internationalization and comparing them with the firm’s strategy for internationalization, the study identifies whether the firm used the same or different strategy to enter different international markets. The paper also identifies how variables such as managerial influence and network relationships determine the firm’s internationalization process. The results illustrate that multiple internationalization theories can be related to the different strategies being followed, but after analyzing the different strategies, we concluded that the firm’s internationalization process could be better understood using LLL model.Downloads
References
ALAJOUTSIJÄRVI, K.; Mannermaa, K.; Tikkanen, H. (2000). Customer relationships and the small software firm – a framework for understanding challenges faced in marketing. Information & Management, 37 (3), 153-159. doi: 10.1016/S0378-7206(99)00039-7.
ANDREOSSO-O’CALLAGHAN, B.; Lenihan, H.; Reidy, P. (2014) The development and growth of the software industry in Ireland: An institutionalized relationship approach. European Planning Studies. doi: 10.1080/09654313.2014.892572
ARORA, A.; Gambardella, A. (2004). The globalization of the software industry: perspectives and opportunities for develop and developing countries. National bureau of economic research. Innovation Policy and the Economy, 5 (2005), The MIT Press. doi:10.3386/w10538
ARGYRIS, C.; Schon, D. (1978). Organizational Learning: A Theory of Action Perspective, Addison-Wesley, Reading, MA.
BELL, J. (1995). The internationalization of small computer software firms – a further challenge to ‘stage’ theories. European Journal of Marketing, 29 (8), 60-75. doi: 10.1108/03090569510097556
BENJAMIN, R.; Wigand, R. (1995). Electronic markets and virtual value chains on the information superhighway. Sloan Management Review, 36 (2), 62-72 Available online at: http://sloanreview.mit.edu/article/electronic-markets-and-virtual-value-chains-on-the-information-superhighway/ [Accessed September 12th 2014]
COMPUTERWORLD (2013) 50 Grandes de la Informática. Available online at http://computerworld.co/imagenes/cw430mayo.pdf [Accessed September 12th 2014]
CONLE, C. (2000). Narrative Inquiry: Research Tool and Medium for Professional Development. European Journal of Teacher Education, 23(1), 49-63. doi: 10.1080/713667262
COVIELLO, N.; Martin, K. (1998). Internationalization of service SMEs: an integrated perspective from the engineering consulting sector. Journal of International Marketing, 7 (4), 42-66. Stable URL: http://www.jstor.org/stable/25048785
COVIELLO, N.; Munro, H. (1997). Network Relationships and the Internationalization Process of Small Software Firms. International Business Review, 6(4), 361-386. doi: 10.1016/S0969-5931(97)00010-3
CUERVO-CAZURRA, A. (2011). Selecting the country in which to start internationalization: the non-sequential internationalization argument. Journal of World Business, 46(4), 426-437. doi. 10.1016/j.jwb.2010.10.003
EVANS, J.; Mavondo, F.T (2002) Psychic distance and organizational performance: An empirical examination of international retailing operations. Journal of International Business Studies, 33 (3), 515-532. Stable URL: http://www.jstor.org/stable/3069528
FREDRIKSSON, T.; Barayre, C.; Fondeur, S.; Jang, S.; Korka, D.; Lang, R.; Lakhe, S. (2012).Information Economy report. The software industry and developing countries. UNCTAD: New York, NY. Available online at: http://unctad.org/en/PublicationsLibrary/ier2012_en.pdf. [Accessed September 12th 2014]
FUERST, S. (2010). Global marketing strategy: The case of a born global software firm in Colombia. Revista Ciencias Estratégicas, 18, 271-286. Available online at: http://revistas.upb.edu.co/index.php/cienciasestrategicas/article/view/712. [Accessed September 12th 2014]
GAO, G.Y.; Zhou, K.Z.; Yim, C.K. (2007). On what should firms focus in transitional economies? A study of the contingent value of strategic orientations in China. International Journal of Research in Marketing, 24 (1), 3-15. doi: 10.1016/j.ijresmar.2006.09.004
GATIGNON, H.; Xuereb, J-M. (1997). Strategic orientation of the firm and new product performance. Journal of Marketing Research, 36 (1), 77-90. doi:10.2307/3152066
GERRING, J. (2004). What is a Case Study and What is it Good for?. American Political Science Review, 98 (2), 341 – 354. doi: 10.1017/S0003055404001182
GONZALEZ, R.; Cunha, S.K. (2012) .Internationalization Process and Technological Capability Trajectory of Iguaçu. Journal of Technology Management & Innovation. 7 (2), 117-130 . doi: 10.4067/S0718-27242012000200010
GUO, X. .(2011). Internationalization of Enterprise-solution Software. KTH Industrial Engineering and Management. http://www.diva-portal.org/smash/get/diva2:416846/FULLTEXT01.pdf [Accessed April 28th 2014]
IRELAND, R.D., Covin, J.G., Kuratko, D.F. (2009) Conceptualizing corporate entrepreneurship strategy. Entrepreneurship Theory and Practice. 33(1), 19-43. doi: 10.1111/j.1540-6520.2008.00279.x
JAVED, A.; Ullah, M.A., Rehman, A.U. (2013) Factors affecting software cost estimation in developing countries. International Journal of Information Technology and Computer Sciences. 5(5), 54-59. doi: 10.5815/ijitcs.2013.05.07
JOHANSON, J.; Mattsson, L.G. (1988). Internationalization of Industrial Systems – A Network Approach. In N.Hood and J.E. Vahlne (Eds.) Strategies in Global Competition, London: Croom Helm, 187-314
JOHANSON, J.; 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 (1), 23-32. doi:10.1057/palgrave.jibs.8490676
JOHANSON, J.; Vahlne, J.E. (2003). Business relationship Learning and commitment in the internationalization process. Journal of international entrepreneurship, 1, 83-101. doi: 10.1023/A:1023219207042
JOHANSON, J.; Vahlne, J.E. (2009). The Uppsala internationalization process model revisited: From liability of foreignness to liability of outsider ship. Journal of International Business Studies, 40, 1411–1431. doi: 10.1057/jibs.2009.24
JOHANSON, J.; Widersheim - Paul, F. (1975). The internationalization of the firm: Four Swedish Cases. Journal of Management Studies, 12 (3), 305-322. doi: 10.1111/j.1467-6486.1975.tb00514.x
KITTLAUS, H.B.; Clough, PN. (2009). Software Product Management and Pricing: Key Success Factors for Software Organizations. Springer-Verlag Berlin Heidelberg, 17-37. doi:10.1007/978-3-540-76987-3
KOHLI, A.K.; Jaworski, B.J. (1990). Market orientation: the construct, research propositions, and managerial implications. Journal of Marketing, 54 (2), 1-18. doi: 10.2307/1251866
LOPEZ, L.E., Kundu, S.K., Ciravegna, L. (2009) Born global or born regional? Evidences from an exploratory study in the Costa Rican software industry. Journal of International Business Studies. 40, 1228-1238. doi: 10.1057/jibs.2008.69
MATHEWS, J. (2006) Dragon Multinationals: new players in 21st century globalization. Asia Pacific Journal of Management, 23(1): 5-27. doi: 10.1007/s10490-006-6113-0
MALDONADO, M.; Dias, D.; Varvakis, D. (2009). Managing Innovation in Small High-technology Firms: A Case Study in Brazil. Journal of Technology Management & Innovation, 4 (2), 130-142. doi: 10.4067/S0718-27242009000200011
O’MALLEY, E.; O’GORMAN, C. (2001) Competitive advantages in the Irish indigeneous software industry and the role of inward foreign direct investment. European Planning Studies. 9(3), 303-321. doi: 10.1080/713666484
OJALA, A. (2008). Internationalization of Software Firms – Finnish Small and Medium Sized Software Firms in Japan, Jyväskylä University. Available online at: https://jyx.jyu.fi/dspace/handle/123456789/18542. [Accessed September 12th 2014]
OJALA, A.; Kontinen, T. (2010) Distance Factors in the Foreign Market Entry of Software SMES. Software Business, (51). 49–62. doi: 10.1007/978-3-642-13633-7_5
OVIATT, B.M.; McDougall, P.P. (1994). Toward a Theory of International New Ventures. Journal of International Business Studies, 25 (1), 45-64. doi: 10.1057/palgrave.jibs.8490193
OVIATT, B.M.; McDougall, P.P. (2005). Defining international entrepreneurship and modeling the speed of internationalization. Entrepreneurship Theory and Practice, 29, 537-553. doi: 10.1111/j.1540-6520.2005.00097.x
PATIBANDLA, M., Petersen, B. (2002) Role of transnational corporations in the evolution of high-tech industry: The case of India’s software industry. World Development, 30(9), 1561-1577. doi: 10.1016/S0305-750X(02)00060-8
PATTERSON, P.G.; Cicic, M. (1995). A Typology of Service Firms in International Markets: An Empirical Investigation. Journal of International Marketing, 3 (4), 57-83 . Stable URL: http://www.jstor.org/stable/25048624
PHELLAS C.N.; Bloch A.; Seal C. (2011). Structured methods: interviews, questionnaires and observation, in Seale. Researching Society and Culture, 181-205. Available online at: http://www.sagepub.com/upm-data/47370_Seale_Chapter_11.pdf . [Accessed September 12th 2014]
PLA-BARBER, J.; GHAURI, P. (2012) Internationalization of service industry firms: Understanding distinctive characteristics. The Services Industries Journal. 32(7), 1007-1010. doi: 10.1080/02642069.2012.662498
RÖNKKÖ, M.; Peltonen, J. (2010) Internationalization of Software Firms. Lecture Notes in Business Information Processing. Software business. (51), 38-48. doi: 10.1007/978-3-642-13633-7_4
RUOKONEN, M.; Saarenketo, S. (2007). The strategic orientations of rapidly Internationalizing software companies. European Business Review. 21 (1), 17-41. doi: 10.1108/09555340910925166
SLATER, S.F, Narver, J.C. (2000) The positive effect of a market orientation on business profitability: A balance replication. Journal of Business Research. 48(1), 69-73. doi: 10.1016/S0148-2963(98)00077-0
SOPHOS BANKING SOLUTIONS (2014) Vision. http://www.sophosbanking.com/index.php/quienes-somos.html [Accessed April 28th 2014]
SUAREZ, F.D.; Cusumano, M.A; Kahl, S.J. (2012) Services and the business model of product firms: An empirical analysis of the software industry. Management Science. 59(2), 420-435. Stable URL: http://pubsonline.informs.org/doi/abs/10.1287/mnsc.1120.1634
UNCTAD (2012). Information Economy Report 2012: The Software Industry and Developing Countries. http://unctad.org/en/PublicationsLibrary/ier2012_en.pdf [Accessed April 28th 2014]
YAMAKAWA, Y.; Peng, M.; Deeds, D. (2008). What drives new ventures to internationalize from emerging to developed economies? Entrepreneurship Theory and Practice, 32(1), 59-82. doi: 10.1111/j.1540-6520.2007.00216.x
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2014 Journal of Technology Management & Innovation
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
