A big step for a small company: How can Fumajet scale its innovation globally?

Authors

DOI:

10.14211/regepe.esbj.e2342

Keywords:

International Opportunity, Foreign Entry Mode, Emerging Market, International Strategy, International Entrepreneurship

Abstract

Objective: This paper is a teaching case designed for graduate and undergraduate courses on subjects involving international business, international marketing, or international entrepreneurship. It describes how a small entrepreneurial company – Fumajet – could recognize and exploit an international opportunity, and the dilemmas its founders confronted regarding the choice of internationalization strategy and entry mode. Dilemma or problem: Faced with several potential alternatives to structure Fumajet’s international activities, the entrepreneurs had to analyze and select an international entry mode strategy to present to the recently created board of directors, following a significant infusion of capital into the company. Relevance/Originality: Grounded in real-life experiences, this case study draws from primary and secondary sources gathered over two years, presenting students with a real, practical, and relevant dilemma. By the end of this case study, students should be able to apply these learnings to real-world scenarios. The unique challenges portrayed make this case study particularly engaging and thought-provoking for students.

Downloads

Download data is not yet available.

References

Aldrich, H., & Auster, E. R. (1986). Even dwarfs started small: Liabilities of age and size and their strategic implications. Research in Organizational Behavior, 8, 65–186.

Aulakh, P. S., Jiang, M. S., & Pan, Y. (2010). International technology licensing: Monopoly rents, transaction costs and exclusive rights. Journal of International Business Studies, 41(4), 587–605. https://doi.org/10.1057/jibs.2009.19

Brouthers, L. E., & McNicol, J. P. (2009). International franchising and licensing. Kotabe, M.; Helsen, K. (Eds), The Sage Handbook of International Marketing. London: Sage Publications, Thousand Oaks, CA, 183–197. https://doi.org/10.4135/9780857021007.n9

Bruneel, J., & De Cock, R. (2016). Entry mode research and SMEs: A review and future research agenda. Journal of Small Business Management, 54, 135–167. https://doi.org/10.1111/jsbm.12291

Duchêne, A., Sen, D., & Serfes, K. (2015). Patent licensing and entry deterrence: The role of low royalties. Economica, 82, 1324–1348. https://doi.org/10.1111/ecca.12141

Fosfuri, A. (2006). The licensing dilemma: understanding the determinants of the rate of technology licensing. Strategic Management Journal, 27(12), 1141–1158. https://doi.org/10.1002/smj.562

Ghemawatt, P. (2007). Managing differences: The central challenge of global strategy. Harvard Business Review, 85(3), 58–68, 140.

Kahiya, E. T. (2017). Export barriers as liabilities: near perfect substitutes. European Business Review, 29(1), 61–102. https://doi.org/10.1108/EBR-12-2015-0160

Johanson, J., & Vahlne, J.-E. (2009). The Uppsala internationalization process model revisited: From liability of foreignness to liability of outsidership. Journal of International Business Studies, 40(9), 1411–1431. https://doi.org/10.1057/jibs.2009.24

Johanson, J., & Vahlne, J.-E. (1977). The Internationalization Process of the Firm—A Model of Knowledge Development and Increasing Foreign Market Commitments. Journal of International Business Studies, 8(1), 23–32. https://doi.org/10.1057/palgrave.jibs.8490676

Laufs, K., & Schwens, C. (2014). Foreign market entry mode choice of small and medium-sized enterprises: A systematic review and future research agenda. International Business Review, 23(6), 1109–1126. https://doi.org/10.1016/j.ibusrev.2014.03.006

Levitt, T., (1983). The Globalization o fMarkets, Harvard Business Review, 61(3), pp. 92-102.

Madhok, A., & Keyhani, M. (2012). Acquisitions as entrepreneurship: asymmetries, opportunities, and the internationalization of multinationals from emerging economies. Global Strategy Journal, 2(1), pp. 26–40. https://doi.org/10.1002/gsj.1023

Maximize Market Research. (n.d.). Pesticides Market: Global Industry Analysis Outlook and Forecast (2022-2029). Retrieved April 25, 2023, from https://www.maximizemarketresearch.com/market-report/global-pesticides-market/110794/

Mittelstaedt, J. D., Harben, G. N., & Ward, W. A. (2003). How small is too small? Firm size as a barrier to exporting from the United States. Journal of Small Business Management, 41(1), 68–84. https://doi.org/10.1111/1540-627X.00067

Peng, M. W. (2022). Global strategy (5th ed.). Cengage.

Persistence Market Research. (n.d.). Market Study on Pesticides: Popularity of Bio-pesticides to Rise Rapidly Over Coming Years. Retrieved April 25, 2023, from https://www.persistencemarketresearch.com/market-research/pesticides-market.asp

Sestu, M. C., Majocchi, A., & D’Angelo, A. (2018). Entry Mode Strategies: Are SMEs Any Different? In N. Dominguez & U. Mayrhofer (Eds.), Key Success Factors of SME Internationalisation: A Cross-Country Perspective. 34, pp. 63–80. Emerald Publishing Limited. https://doi.org/10.1108/S1876-066X20180000034004

Tharp., B. M. (2012). Product Licensing 101: So Let’s Talk Money - Core77. Retrieved October 18, 2020, from https://www.core77.com/posts/23366/Product-Licensing-101-So-Lets-Talk-Money

Transparency Market Research. (n.d.). Pesticides Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast (2017 - 2025) - Report Preview. Retrieved April 25, 2023, from https://www.transparencymarketresearch.com/global-pesticides-market.html

Published

2024-06-04

Métricas


Visualizações do artigo: 348     Case study (pdf) downloads: 118 Teaching notes (pdf) downloads: 38 xml downloads: 0 Audio downloads: 8 Video downloads: 7

How to Cite

Pacheco, H. F., Rocha, A. da, Mello, R. C. de, & Kogut, C. S. (2024). A big step for a small company: How can Fumajet scale its innovation globally?. REGEPE Entrepreneurship and Small Business Journal, 13(2), e2342. https://doi.org/10.14211/regepe.esbj.e2342

Similar Articles

<< < 2 3 4 5 6 7 8 9 10 11 > >> 

You may also start an advanced similarity search for this article.