Buying abroad : the case of inward internationalisation processes

Recently, some research has focused on and acknowledged the significance of buyer-initiatedinternational exchange in the field of international business studies. In thesecases, it is the importer that actively engages in international exchange and drives theinternationalisation process. However, relative to the volume of research into theinternationalisation of exporting firms, there is a clear lack of research that seeks tounravel the process of internationalisation when it is"inward-driven". This paperpresents two cases studies of Swedish importing firms, providing insight into themechanisms that underlie inward internationalisation. The paper thereby adds to theknowledge about such phenomena, especially through the use of qualitative, longitudinalcase studies which also include the pre-internationalisation history of the firm and itsfounders. It also provides implications for management regarding the need to recognisethe strategic significance of international purchasing, and for policy makers regardingthe attitudes towards imports and import promotion.The paper shows that inward internationalisation can be conceptualised as a processwhereby knowledge about foreign markets is used to satisfy a local demand, i.e.accessing foreign assets for the purpose of engaging in domestic market exchange. Anincreasing commitment to international markets could be seen, relating to the growth ofmarketing activities in the domestic market as well as an increasing stock of experientialknowledge arising out of the international operations. The paper also demonstrates thatpresently available approaches and models developed for outward internationalisationcan be used to understand inward internationalisation. Particularly, the discussion isbased on both the network approach and the Uppsala model of internationalisation, andindicates that such a theoretical integration can be a fruitful approach to explainrelationship development in a network. Finally, the paper reveals that much moreempirical research is needed in this area, especially as a incorporating both inward- andoutward-driven processes of internationalisation gives rise to a dynamic framework thatcan provide insights into why international exchange occurs in the first place