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This paper has suggested that the Uppsala model of internationalization cannot fully outline the internationalization of e-commerce companies which tends to be more time-compressed and imply larger initial commitments. The nature of the new medium has stimulated the interactivity with customers and therefore modified the process and the source of necessary knowledge for international operations. The shift has been from the market to the customers. Furthermore it has been showed that reliability on customer interactions reduces psychic distance and perceived risk in market entry. On the other hand, the Uppsala model has helped to stress the importance of experiential learning in the foreign market because the sole dependence on customer interactions cannot guarantee a successful internationalization.

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Format:PDFSize:531 KB
Date:Aug 2007
Pages:10

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