Information Overload and the Internationalization Process Model: An Implementation Attempt
Keywords:
Information overload, Information slack, Experiential learning, Adaptive learning, Internationalization Process model
Abstract
This article presents a theoretical equation set based on the information interactions that result in experiential learning. We attempt to link our equation set to the Uppsala Internationalization Process model in order to quantify information overload and operationalize the Uppsala model under longitudinal time series settings.The internationalization process has generated an increase in the diversity and overall quantity of information, resulting in an increase of the variation and amount of information that a firm needs to process. This challenges a firm's capacity to simultaneously expand and learn.Market knowledge is acquired essentially through current business activities, all of which proceed from a firm’s market experience to generate experiential knowledge.Market experience is situation-specific and therefore difficult to generalize. Nonetheless, firms tend to use general “failsafe proven courses of action” when confronted with new situations in an effort to reduce diverging, larger quantities of incoming and often discrepant information.Information overload refers to situations where the quantity of information pending analysis and consideration compels a firm to revert to older and trusted information processing methods instead of seeking adaptive solutions, clearly adopting a short-term efficiency posture leading to suboptimal performance.Downloads
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References
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Roux, É. 1986. Les modèles intégrés de la décision d'exporter en PME/PMI. Recherche et Applications en Marketing, 1(3): 27-42.
Scribner, S. 1986. Thinking in Action: Some Characteristics of practical thought. In R. J. Stenberg, & R. K. Wagner (Eds.), Practical intelligence: nature and origins of competence in the everyday world 13-30. Cambridge: Cambridge University Press.
Sharma, D. D., & Blomstermo, A. 2003. A Critical Review of Time in the Internationalization Process of Firms. Journal of Global Marketing, 16(4): 53-71.
Shrader, R. C., Oviatt, B. M., & McDougall, P. P. 2000. How New Ventures Exploit Trade-Offs Among International Risk Factors: Lessons for the Accelerated Internationalization of the 21st Century. Academy of Management Journal, 43(6): 1227-1247.
Simon, H. A., Dantzig, G. B., Hogarth, R., Plott, C. R., Raiffa, H., Schelling, T. C., Shepsle, K. A., Thaler, R., Tversky, A., & Winter, S. 1992. Decision Making and Problem Solving. In M. Zey (Ed.), Decision Making: Alternatives to Rational Choice Models: 32-62. Newbury Park: Sage.
Vahlne, J.-E., & Wiedersheim-Paul, F. 1973. Economic Distance: Model and Empirical Investigation. Stockholm: Askild & Kärnekull.
Vermeulen, F., & Barkema, H. 2002. Pace, Rhythm, and Scope: Process Dependence in Building a Profitable Multinational Corporation. Strategic Management Journal, 23(7): 637-654.
Wennberg, K., & Holmquist, C. 2008. Problemistic search and international entrepreneurship. European Management Journal, 26(6): 441-454.
Wiersema, F. D. 1983. Strategic Marketing: Linking Marketing and Corporate Planning. European Journal of Marketing, 17(6).
Anderson, E., Lodish, L., & Weitz, B. 1987. Resource Allocation Behavior in Conventional Channels. Journal of Marketing Research, 24(1): 85-97.
Anderson, E., & Richard, L. 1987. Perspectives on Behavior-Based Versus Outcome-Based Salesforce Control Systems. Journal of Marketing, 51(October): 76 - 88.
Benito, G. R. G., Petersen, B., & Welch, L. S. 2009. Towards more realistic conceptualisations of foreign operation modes. Journal of International Business Studies(1-16 / Advance online publication 10 September 2009).
Benito, G. R. G., & Welch, L. S. 1994. Foreign Market Servicing: Beyond Choice of Entry Mode. Journal of International Marketing, 2(2): 7-27.
Bonaccorsi, A. 1992. On the Relationship between Firm Size and Export Intensity. Journal of International Business Studies, 23(Fourth quarter): 605-635.
Cyert, R. M., & March, J. G. 2013 [1963]. A Behavioral Theory of the Firm. Mansfield Centre, CT: Martino Publishing.
De Leersnyder, J.-M. 1986. Marketing International (2ème Ed. ed.). Paris: Dalloz.
Denrell, J., & March, J. G. 2001. Adaptation as Information Restriction: The Hot Stove Effect. Organization Science, 12(5): 523-538.
Eriksson, K., Johanson, J., Majkgärd, A., & Sharma, D. D. 2000. Effect of Variation on Knowledge Accumulation in the Internationalization Process. International Studies of Management & Organization, 30(1): 26-44.
Eriksson, K., Johanson, J., Majkgärd, A., & Sharma, D. D. 2001. Time and Experience in the Internationalization Process. Zeitschrift fur Betriebswirtschaft, 71(1): 21-43.
Hassard, J. 1991. Aspects of Time in Organization. Human Relations, 44(2): 105.
Herriot, S. R., Levinthal, D., & March, J. G. 1985. Learning from Experience in Organizations American Economic Review: Papers and Proceedings of the 97th Annual Meeting of the American Economic Association, 75(2): 298-302.
Iyer, D. N., & Miller, K. D. 2008. Performance Feedback, Slack, and the Timing of Acquisitions. Academy of Management Journal, 51(4): 808-822.
Jensen, M. C. 1994. Self-Interest, Altruism, Incentives, & Agency Theory. Journal of Applied Corporate Finance, VII(2): 16.
Jensen, M. C. 1998. Self-Interest, Altruism, Incentives, & Agency Theory: Harvard University Press.
Jensen, M. C. 2001. Foundations of Organizational Strategy (Paperback ed.). Cambridge, MA: Harvard University Press.
Jensen, M. C., & Meckling, W. H. 1976. Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure. Journal of Financial Economics, 3: 305-360.
Jensen, M. C., & Meckling, W. H. 1994. The Nature of Man. Journal of Applied Corporate Finance, VII(2): 4 - 19.
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.
Johanson, J., & Vahlne, J.-E. 1990. The Mechanism of Internationalisation. International Marketing Review, 7(4): 11-24.
Johanson, J., & Vahlne, J.-E. 2003. Business Relationship Learning and Commitment in the Internationalization Process. Journal of International Entrepreneurship, 1(1): 83.
Johanson, J., & Vahlne, J.-E. 2006. Commitment and Opportunity Development in the Internationalization Process: A Note on the Uppsala Internationalization Process Model. Management International Review (MIR), 46(2): 165.
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: 1411-1431.
Lehman, D. W., & Ramanujam, R. 2009. Selectivity in Organizational Rule Violations. Academy of Management Review, 34(4): 643-657.
Levitt, B., & March, J. G. 1995. Chester I. Barnard and the Intelligence of Learning. In O. E. Williamson (Ed.), Organization theory: From Chester Barnard to the present and beyond: 11-37: Second edition.
New York and Oxford: Oxford University Press.
March, J. G. 2006. Rationality, foolishness, and adaptive intelligence. Strategic Management Journal, 27(3): 201-214.
March, J. G., & Shapira, Z. 1992. Behavioral Decision Theory and Organizational Decision Theory. In M. Zey (Ed.), Decision Making: Alternatives to Rational Choice Models: 273-303. Newbury Park: Sage.
March, J. G., & Weil, T. 2005. Mundane Organizations and Heroic Leaders, On Leadership: 113-121. Williston, Vt, U.S.A.: Blackwell Publishing.
Pauwels, P., & Matthyssens, P. 1999. A Strategy Process Perspective on Export Withdrawal. Journal of International Marketing, 7(3): 10.
Pedersen, T., & Petersen, B. 2004. Learning About Foreign Markets: Are Entrant Firms Exposed to a "Shock Effect"? Journal of International Marketing, 12(1): 103-123.
Pedersen, T., & Shaver, M. 2000. Internationalization Revisited: The 'Big Step' hypothesis. Paper presented at the European International Business Academy Annual Meeting, Manchester.
Rieskamp, J., Busemeyer, J. R., & Laine, T. 2003. How Do People Learn to Allocate Ressources? Comparing Two Learning Theories. Journal of Experimental Psychology: Learning, Memory, and Cognition, 29(6): 1066-1081.
Roux, É. 1986. Les modèles intégrés de la décision d'exporter en PME/PMI. Recherche et Applications en Marketing, 1(3): 27-42.
Scribner, S. 1986. Thinking in Action: Some Characteristics of practical thought. In R. J. Stenberg, & R. K. Wagner (Eds.), Practical intelligence: nature and origins of competence in the everyday world 13-30. Cambridge: Cambridge University Press.
Sharma, D. D., & Blomstermo, A. 2003. A Critical Review of Time in the Internationalization Process of Firms. Journal of Global Marketing, 16(4): 53-71.
Shrader, R. C., Oviatt, B. M., & McDougall, P. P. 2000. How New Ventures Exploit Trade-Offs Among International Risk Factors: Lessons for the Accelerated Internationalization of the 21st Century. Academy of Management Journal, 43(6): 1227-1247.
Simon, H. A., Dantzig, G. B., Hogarth, R., Plott, C. R., Raiffa, H., Schelling, T. C., Shepsle, K. A., Thaler, R., Tversky, A., & Winter, S. 1992. Decision Making and Problem Solving. In M. Zey (Ed.), Decision Making: Alternatives to Rational Choice Models: 32-62. Newbury Park: Sage.
Vahlne, J.-E., & Wiedersheim-Paul, F. 1973. Economic Distance: Model and Empirical Investigation. Stockholm: Askild & Kärnekull.
Vermeulen, F., & Barkema, H. 2002. Pace, Rhythm, and Scope: Process Dependence in Building a Profitable Multinational Corporation. Strategic Management Journal, 23(7): 637-654.
Wennberg, K., & Holmquist, C. 2008. Problemistic search and international entrepreneurship. European Management Journal, 26(6): 441-454.
Wiersema, F. D. 1983. Strategic Marketing: Linking Marketing and Corporate Planning. European Journal of Marketing, 17(6).
How to Cite
Tapia Moore, E. (1). Information Overload and the Internationalization Process Model: An Implementation Attempt. Journal of Business, Universidad Del Pacífico (Lima, Peru), 9(1), 119-142. https://doi.org/https://doi.org/10.21678/jb.2017.827
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