The Uppsala Model
Internationalisation can be described as “the process of increasing involvement in international operations” (Welch & Luostarinen, 1988, p. 36).
At any rate, why a company should internationalize, and how?
The fundamental reason for exporting, in most firms, is to make money. However, as in most business activities, one factor alone rarely accounts for any given action. Usually a mixture of factors results in firms taking steps in a given direction. The table below provides an overview of the major internationalization motives. They are differentiated into proactive and reactive motives. Proactive motives represent stimuli to attempt strategy change, based on the firm’s interest in exploiting unique competences (e.g. a special technological knowledge) or market possibilities. Reactive motives indicate that the firm reacts to pressures or threats in its home market or in foreign markets and adjusts passively to them by changing its activities over time.

Proactive motives | Reactive motives | * Profit and growth goals * Managerial urge * Technology competence/unique product * Foreign market opportunities/market information * Economies of scale * Tax benefits | * Competitive pressures * Domestic market: small and saturated * Overproduction/excess capacity * Unsolicited foreign orders * Extend sales of seasonal products * Proximity to internationalcustomers/psychological distance |
(Adapted from Albaum et al., 1994, p. 31).
Some companies internationalize due to the fact that their competitors or customers have been globalized (Ohmae, 1990); whereas others are pushed by the idea of “multinationalism” as a symbol of success and progress. It also been proven that increased internationalization results in improved profitability (Gerlinger, 1989).
Regarding our object of study, the Uppsala Model, this