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Internationalization Process: Analysis of a cooperation network in
the Vinho Verde sector for the US market
António Nunes
University of Beira Interior
PhD Management Student
Estrada do Sineiro, 6200-209 Covilhã, Portugal
phone: +351 253 300 340, fax: +351 253 625 560
email: ajonunes@sapo.pt
Mário Franco
University of Beira Interior
Management and Economics Department
NECE – Research Center in Business Sciences
Estrada do Sineiro, 6200-209 Covilhã, Portugal
phone: +351 275 319 636, fax: +351 275 319 601
email: mfranco@ubi.pt
ABSTRACT
Internationalization as a strategic element in the current context of globalization is
increasingly a determinant of business success. Based on the literature in the area of
internationalization and networks, through a case study – a cooperation network involving
small and medium-sized enterprises (SMEs) – this article intends to highlight the relationship
between the various partnerships established both formally and informally. It also intends to
show the importance of the various actors involved in the network, and especially the role
played by the Wine-Producing Commission of the Vinho Verde Region (CVRVV). The results
of the study show the importance of the network relationship for entry to the US market,
since penetration in that specific market is determined by strategic reasons and following
network relationships which already exist or are subsequently created. According to the
empirical evidence, use of network contacts for development and entry to the US market is
also found to be fundamental, these relationships initially being intermediated by the non-
profit-making sector entity of the CVRVV. Some theoretical and practical implications are
also presented.
KEYWORDS: Cooperation, CVRVV, USA, formal, informal, internationalization,
partnership.
Internationalization Process: Analysis of a cooperation network in the Vinho
Verde sector for the US market
1. INTRODUCTION
Increased transactions on a global scale and the elimination of commercial and economic
borders between countries, associated with growing regional and worldwide interaction which
has become more intense in recent decades, have provided firms with new opportunities,
creating new competitive challenges from both international and domestic competitors.
The elaboration of strategies to respond to these challenges depends not only on the firm but
also on its sector of activity (Teruchkin, 2005). In this connection, this study is set in the wine-
producing sector which plays an important role in the Portuguese economy, contributing very
significantly to the final value of agricultural production and exports.
The wine sector in Portugal, and particularly that of Vinho Verde, is integrated in an
increasingly competitive international scenario. The production capacity of the Portuguese
wine industry has been greater than demand, and so international markets are seen as the
great opportunity and solution for the sector’s competitiveness, with the simultaneous need
to adapt production to the commercial requirements of the demand through new products,
this being accepted as an important factor in intensification of exports (Bardaji and Mili,
2009). The Portuguese Vinho Verde sector is an important one, currently made up of 21.562
producers, essentially SMEs.
The process of globalization has meant that internationalization is no longer merely an option
for SMEs, but rather a determinant of their survival and success (Pla-Barber and Alegre,
2007). In this global context, export activity has played an important role, referred to as the
simplest and quickest way to access international markets (Majocchi et al., 2005).
Badrinath (2004) states that among all the theories and perspectives of internationalization
the network option seems to be most relevant from the point of view of SME
internationalization. The importance of network relationships for the internationalization of
this type of firm has been dealt with in several studies (e.g., Coviello, 2006; Zain and Ng,
2006; Ojala, 2008), having a great impact on the choice of how to enter the various markets
(Moen et al., 2004; Zain and Ng, 2006).
Markets are relationship networks in which firms are connected to one another in various and
complex ways, and in contexts that are extensive and often invisible (Johanson and Vahlne,
2009). Therefore, the perspective of networks within the internationalization process goes
beyond its conception as an internal process of the organization. Fleury and Fleury (2003)
state that one of the principal characteristics of the new economy is the transition from
individual efficiency to collective efficiency, where competitiveness is related to the
performance of networks between organizations rather than individual firms.
Many studies have dealt with the internationalization process, with a significant increase in
research in the last decade (Singh, 2009). Nevertheless, there is still no great consensus as
to the main factors leading firms to develop international markets (Pla-Barber and Puig,
2009). Indeed, with the growing interest in firms’ internationalization, Elo (2005) argues that
the focus of studies on internationalization should include the network context in their scope.
In this connection, aiming for better understanding of the internationalization process,
considering the network perspective, this study intends to answer the following question:
What is the internationalization process of Portuguese SMEs producing vinho verde in
approaching the US market through a network of organizational cooperation?
The remainder of the paper is structured as follows. First, a review of the literature in the
area of internationalization and networks is carried out. Empirical analysis of the case study
follows. Then the results, discussion and conclusions are presented. The study ends with the
implications for research and management, mentioning limitations and some suggestions for
future work.
2. LITERATURE REVIEW
2.1. Internationalization from a network perspective
The literature related to firms’ internationalization supported by networks is extensive,
showing various approaches to researching this phenomenon. Various network theories
have been used to explain companies’ internationalization in the most diverse sectors.
Internationalization through networks can provide essentially three major benefits. Firstly,
through network connections, managers can recognize international opportunities that allow
company expansion (Coviello and Munro, 1997; Johanson and Vahlne, 2006; Fernhaber and
Li, 2013). Various studies identified that the majority of firms initially gain access to
international markets through opportunities presented by their network of contacts rather
than through searching on their own initiative (Chen and Chen, 1998; Johanson and Vahlne,
2006; Ellis, 2011).
Secondly, networks can lead to creating an exchange of experiences, a vital component for
internationalization in new markets, allowing the firm to obtain resources and gain legitimacy
(Oviatt and McDougall, 1994).
Finally, networks can provide firms with important information related to international markets
(Sharma and Blomstermo, 2003). The study by Eriksson et al. (2000) concludes that the
knowledge acquired can have to do with business (i.e., clients and competition), institutions
(i.e., government, rules, norms, legislation) or internationalization (i.e., capacity to enter the
market and the necessary resources). These benefits are important as they allow firms to
compete with local firms in foreign countries, firms which do not normally lack those
elements.
According to Hakansson and Snehota (1989), “no business is an island”, due to businesses
overlapping in a network context with interdependence between the various network
members. Johanson and Mattsson (1988) also state that businesses in an international
context are based on network assumptions. These authors define a firm’s network as the
long-term business relationships a firm has with its clients, distributors, suppliers, competitors
and government bodies. This network also includes relationships between the parties
involved, for example, between one client and another, client and supplier and client and
competitors. The dynamics of the relationship between the two parties is also influenced by
the relationships of that partnership, as they provide both opportunities and restrictions.
One of the least developed aspects of an internationalization process has been cooperative
agreements mainly in terms of firm networks. Network Theory has come to improve
understanding of these relationships in internationalization, both in the inter and intra-
organizational aspect (Lorga, 2002). This author also states that the international extent of
networks depends both on the country and the product and will have strong implications for
the firm’s internationalization.
International cooperative strategies allow firms to share risks and resources on entering new
markets, facilitating the development of new competences (Hitt et al., 2002).
Business networks allow access to various resources necessary for the firm’s
internationalization strategy, since the firm’s capacity to gain access to other organizations’
resources, mainly through horizontal networks, is an important explanatory variable of
internationalization (Chetty and Holm, 2000).
Company managers who intend to internationalize should take advantage of network
resources, such as the geographical proximity of companies and partners. They should be
better integrated in the international community so as to form relationships with international
partners, which lets them consolidate their presence in international markets (Fernhaber and
Li, 2013).
Decisions related to how to enter international markets are considered strategic in the firm’s
attempt to internationalize its activities (Qian and Delios, 2008; Moen et al., 2004).
According to Moen et al. (2004), the firm’s network relationships will determine the
international markets to be chosen and the form of entry.
Some researchers (e.g., Loane and Bell, 2006; Coviello, 2006; Chetty and Holm, 2000)
demonstrated theoretically and empirically how firms use networks for their
internationalization. Loane and Bell (2006) found that a great number of firms actively used
existing networks to develop knowledge about international markets and improve their
international competitiveness. Coviello (2006) concluded that network theory is fundamental
for international entrepreneurship. Chetty and Holm (2000) also verified the dynamics of how
firms interact with their network partners to extend, penetrate and integrate international
markets.
2.2. Characterization of the internationalization process from a network
perspective
i) Ways of entering international markets through networks
Initially, the Uppsala internationalization model assumed that the knowledge necessary for
internationalization is mostly acquired through outside operations (Johanson and Vahlne,
1977, 1990). This model was recently altered to recognize international exposure through
network relationships. The network model was presented in the 1980s, when it became
evident that most firms used various networks to facilitate their internationalization activities
(Johanson and Mattsson, 1988). This confidence in using networks in the international
context is widely attributed to the interdependence between companies, countries and
markets (Dunning, 1995).
For Johanson and Mattsson (1988), in this model, internationalization occurs when a firm
begins to develop relationships with another belonging to a network in a foreign country.
Relationships between firms in different countries serve as a bridge to new markets
(Johanson and Vahlne, 1990). The development of these relationships with other actors in
the market can be active or passive. From a perspective of an active network, the seller
takes the initiative, whereas from a passive perspective the initiative is on the side of the
buyer (Johanson and Mattsson, 1988). The importance of an active network in terms of
learning, acquisition of knowledge, external expansion, etc, is demonstrated in various
studies (Gabrielsson et al., 2008; Loane and Bell, 2006). A passive network is the result of
initiative taken by another actor, such as a client, importer, intermediary or supplier (Ellis,
2000; Johanson and Vahlne, 2003), which can open up new opportunities in external
markets.
ii) Different types of network relationship to enter the international market
According to the network internationalization model (Johanson and Mattsson, 1988), the firm
can have relationships with various actors including clients, distributors, suppliers,
competitors, non profit-making organizations, public bodies, etc. The different types of
network relationships to enter external markets can be divided into formal, informal (Coviello
and Martin, 1999; Westphal et al., 2006; Fernhaber and Li, 2013), and intermediary (Havila
et al., 2004; Oviatt and McDougall, 2005). Various contradictory opinions have existed about
the definition of these terms, but the current literature accepts that formal relationships are
related to business activities between two or more actors in a network, while informal ones
are related to personal relationships between friends or family (Coviello, 2006; Westphal et
al., 2006; McCann and Foita, 2011). Then again, other authors (e.g., Ellis and Pecotoich,
2001; Oviatt and McDougall, 2005) have indicated the importance of intermediary
relationships, where there is no direct contact between buyer and seller, but rather an
intermediary, i.e., a third actor who facilitates the formation of a relationship between them.
iii) Influence on network relationships on the way of entering international markets
Various studies related to companies’ internationalization (Johanson and Mattsson, 1988;
Moen et al., 2004; Zain and Ng, 2006; Fernhaber and Li, 2013) indicate that networks have a
strong impact on the choice of market and/or the form of entry. These studies seem to agree
that these firms enter markets that are geographically and/or psychologically (language,
cultural matters, historical relationship, etc) closer, based on their network relationships.
Studies by Coviello and Munro (1995, 1997) concluded that informal and formal networks
facilitate in the first place entry to markets that are psychologically closer as well as the
respective choice of how to enter, results also found in other studies by Coviello and Martin
(1999) and Moen et al. (2004).
iv) Importance of social networks for SME internationalization
Some researchers (Chetty and Wilson, 2003; Lenchner and Dowling, 2003) have highlighted
the importance of social relationships in SME networks. These social relationships give
SMEs access to information, financial resources and other networks, besides improving their
reputation.
Networks are important for identifying opportunities during the internationalization process
(Johanson and Vahlne, 2006). Several studies have pointed out that SMEs depend on
network relationships and contacts to learn more about internationalization, whether in
choosing the form of entry, acquiring information about new markets or acquiring resources
for that process (Chetty and Wilson, 2003).
Pittaway et al. (2004) identified six benefits companies can obtain from their networks: (1)
risk-sharing; (2) access to new markets and technologies; (3) rapid commercialization; (4)
access to complementary assets; (5) protection of ownership rights; and (6) access via the
network to external knowledge.
Different forms of network cooperation can be strengthened for internationalization, when
they count on support from sector or government entities. According to Chen and Chen
(1998), the integration of organizations and government policies has a key role in supporting
and stimulating the internationalization process.
Government initiatives and support to promote and facilitate SME access to
internationalization through programmes often carried out in partnership with the regulatory
bodies of the sector the firm belongs to, such as what happens with firms in the Vinho Verde
sector through the Commission of Wine-Producers in the Vinho Verde Region (CVRVV),
allows the formation of networks to exploit opportunities in international markets (Johanson
and Vahlne, 2006).
The internationalization process of SMEs is an important aspect, as it helps to lessen
financial difficulties and give access to another type of resources, besides allowing the
sharing of experiences and consolidating trust (Lu and Beamish, 2001). Network
relationships have various effects on the internationalization process, and frequently allow
initiation stimulating firms’ intentions to internationalize (Chetty and Patterson, 2002; Ellis,
2000), encourage the company decision in selecting markets (Coviello and Munro, 1995),
help firms decide how to enter (Johansson and Vahlne, 2003; Chen, 2003), give access to
additional relationships and more suitable channels (Chetty and Patterson, 2002; Welch,
1992), increase knowledge of the local market (Coviello and Munro, 1995), allow acquisition
of the initial trust of the other actors (Chetty and Patterson, 2002; Coviello and Munro, 1995),
reduce the costs and risk of internationalization (Chetty and Patterson, 2002; Ellis and
Pecotich, 2001), make internationalization faster (Coviello and Munro, 1995) and letll the firm
expand to take greater advantage of market opportunities (Coviello and Munro, 1995).
3. METHODOLOGY
3.1. Type of study and case selection
This study aims to analyze the relationship between management models and
internationalization using the network perspective. Therefore, following the suggestions of
Eisenhardt (1989) and Yin (1994), the case study, as a strategy of qualitative research, was
used here due to its exploratory nature. Eisenhardt (1989) argues that the case study
method allows the study of patterns that may be common, also allowing explanation of the
meaning of the cause/effect relationship in the phenomenon examined (Yin, 1994).
A case was chosen for this study, a network made up of several actors/partners:
CVRVV – promoter of the internationalization programme in the USA.
Local importers and distributors in the USA.
Local Agency in the USA.
Three Portuguese SMEs, producers and distributors of vinho verde.
The three producer SMEs chosen (Firms A, B and C) satisfied the following criteria: (1) firms
situated in Portugal in the Vinho Verde Region, (2) part of their strategy is to sell their
products in the US market and (3) they are producers and distributors of Vinho Verde. This
study also analyzed the role of the CVRVV in the internationalization process.
The three producer firms were selected by the CVRVV, since initially one firm refused to
participate in the study and was substituted by another. The criteria for choosing the three
firms were established together with the CVRVV, to be as wide-ranging as possible.
As for the three SMEs selected, one is successful in the market and has been present in the
USA for quite some time (Firm A), one has tried to enter the market, but unsuccessfully (Firm
B), and another successful firm, but only recently present in the US market (Fir C).
3.2. Context of analysis of the study
In this study, Portugal was chosen as the country of origin, due to its small economy with a
very limited domestic market allied to motives of logistics in accessing the firms. The
destination country chosen was the USA as it is one of the main wine-consuming markets in
the world, and forecast to become the biggest if the current growth in consumption per capita
and the number of North American consumers (on average 5 million new consumers each
year) is maintained. In terms of consumption per capita, it occupies the 38th position1, still far
from the figures found in Europe, particularly in countries like Italy, Spain, France and
Portugal (Table 1).
1 Table 1- Wine consumption per capita
Table 1- wine consumption per capita
Source: U.S. Wine Market 2005
Note: the positions do not correspond to the ranking
3.3. Data-gathering instruments and analysis/organization
As the main data-gathering source, this study adopted the interview and documentary
analysis. Accordingly, each of the three SMEs studied and the CVRVV were contacted by e-
mail to arrange a semi-structured interview to be held on the premises of each organization.
The interviews were with the managers responsible for the US market, each of them
occupying a top management position within the firm.
With the open semi-structured interview, it was possible to ask the main questions, leaving
space for other more detailed ones (Yin, 1994). Initially, the interviewees were asked to give
a general description of the business and then, in particular, in the US market. Based on the
general information, they were also asked for more detailed information on entry to the US
market.
The questions were divided into topics: (1) the firm’s activity and the network process for
entry to the US market, (2) important events, people, firms and organizations that influenced
entry and deciding how to enter the USA, (3) the importance of the US market for the firm’s
products, and (4) the impact of other actors on entry to the market and deciding how to enter
the USA. All these topics were developed according to the guidelines of Yin(1994), trying to
ask objective questions, in this way allowing the interviewees to give the most authentic
answers possible.
Country Wine consumption
per capita
France 54.7
Italy 49.3
Portugal 47.6
Spain 33.8
Argentina 28.5
United Kingdom 22.0
USA 11.5
The interviews, lasting around 90 to 120 minutes, were digitally recorded and listened to with
great attention, transcribing the main ideas. In the case of any doubt, e-mail and the
telephone were used for clarification. Other sources were also used for comparison
(triangulation), such as websites, social networks and diverse information about the firms
studied.
In data analysis, the orientations of Eisenhardt (1989) and Yin (1994) were followed. All the
firms/partners/actors were analyzed as individual cases, with individual patterns being
identified and then categorized as a whole by topics.
In the process of analyzing each firm, the activity of the network relationship was classified
as active or passive according to the network internationalization model (Johanson and
Mattson, 1988). If the firm took the network initiative for the process of market entry, this was
classified as active. If the initiative was taken outside the firm, this was classified as having a
passive attitude. The network relationships used for market entry were categorized as formal,
informal and intermediary, and were based on the principal relationship, i.e., on the most
important contact (key element) which opened the path to entering the US market.
4. CASE STUDY: RESULTS
4.1 Characterization of Actors/Organizations
A brief characterization of the three SMEs forming the network studied can be seen in the
following table.
Table 2 – own elaboration /Key information about the firms of the case study
Firm First year of
activity
First year of
internationalization
Year of entry
to the USA
Form of
entry
Key element
in the USA
A 1986 2000 2007 Exporting Importer
B 2003 2006 - - -
C 1971 2007 2010 Exporting Importer
CVRVV2 1926 1980
3 2004 Promotion Via associates
2 The CVRVV does not export directly. It intermediates and facilitates the internationalization process of its associates. 3 Exports already existed. Vinho Verde was the first Portuguese wine to be exported. Active, planned and organized initial year of promotion.
4.2 Network approach adopted by the firms analyzed
The approach adopted can be described as passive or active. None of the three producer
firms analyzed have a direct presence in the US market, with firms A and C being
represented through importers. Of the three firms studied, two (A and C) were actively
developing their networks so as to improve their opportunities in the US market. This is
essentially to do with the size of the US market and the legalities of distribution and
commercialization logistics, known as “Three Tier”, with three intermediaries: Importer,
Distributor and Retailer, this being the legal circuit followed until the product reaches the final
consumer. Firms A and C, are present in the US market through active development of a
relationship network already formed but still developing in the search for new business
opportunities. It has already given very positive results, managing to achieve sustained
growth since the beginning of internationalization in the USA. As the US market is vast with
its own characteristics differing from one state to another4, these two firms established both
formal and informal partnerships on entering, in this way helping the consolidation of those
networks for future development of new business. The firms established and built partnership
networks benefiting from programmes carried out by the CVRVV to spread awareness of
Vinho Verde, with the contacts obtained and developed being vital for their successful
presence in this market, and also for consolidation to be able to take advantage of new
business opportunities. It is of note that firms A and C also occasionally used other
programmes outside the scope of the CVRVV, namely those of ViniPortugal5. The
interviewee from firm A stated that “… we are present in all the initiatives and programmes
developed by the CVRVV. We also use other programmes from other bodies….the contacts
obtained in these actions are fundamental for a successful presence in the US market.”
As for firm B, even using programmes promoted by the CVRVV, it has not yet been able to
establish formally or informally a network of contacts that would allow it to enter the US
market. This SME has shown a more passive attitude in waiting for possible contacts from
interested parties. Recently, a more definite new opportunity has arisen, benefiting from a
partnership programme developed by the CVRVV, in the form of various US importers
travelling to visit the Vinho Verde region. The manager says that “ … this time,
internationalization will definitely progress…an opportunity emerged to re-establish relations
4 One of the interviewees indicated “that each state is a country, the USA being a country made up of another 50 small countries “ 5 ViniPortugal is the inter-professional association of the Wine-producing sector and the managing body of the Wines of Portugal brand.
with a former contact….it’s an importer who was in Portugal recently as part of a programme
of visits to the Vinho Verde region by US importers, promoted by the CVRVV”. In this case,
initiation of entry to the US market also emerges from a previous contact the manager had
(informal relationship), and confirms the more passive attitude of this firm.
Concerning the existence of informal networks between the competing firms themselves in
terms of exchanging contacts, information about possible partners, division of transport costs
and stays in the USA, the manager of firm B says that “…we had a first experience between
three producers of vinho verde sharing a stand in the Expo Vinhos in Brazil, which went
extremely well…”. The manager of firm A says that “…increasingly, there is a greater share
of information and resources among the competitors themselves, even of the cost of hotels
when travelling…”
4.3 Key element of the network relationship
The results of the network (case) study, involving the three producer firms and the CVRVV,
revealed that entry to the US market was facilitated by formal, informal and intermediary
relationships.
Firm A has used its formal relationships such as its importer, which has allowed it to expand
and take advantage of new business opportunities. The manager of this firm states “ …a lot
of work is organized together with our importer in awareness actions for our product, which
has helped us to achieve better results…”.
It should be noted that for firm C, the interviewee stressed the importance of the network that
has been created, giving examples of clients who recommend them to potential new clients,
through their informal network of contacts “…we have had sustained growth largely thanks to
our relationships, our clients recommend us a lot, which has allowed us to get new clients
based on these recommendations…”, which agrees with the conclusions of Johanson and
Mattsson (1988) who state that business in an international context is based on network
assumptions.
All the firms analyzed also opted, at the various stages, to take advantage of the
intermediary relationship to enter the market, largely due to the US legal system, using the
importer, which has not prevented active work in promoting their products in the various
existing commercialization networks, in conjunction with importers and distributors.
The existing partnership with the CVRVV, through adhering to the programmes of
internationalization and promotion of Vinho Verde in the US market, has revealed itself to be
extremely important, in this way allowing a kind of consultancy for identifying potential
importers and distributors for their products, for which the CVRVV has used a partnership
with a local agency in the USA.
4.4 Influence of network relationships for entry to the US market.
The firms analyzed indicate that the different types of network relationships had only a limited
influence in choosing the USA and the respective form of entry. Irrespective of the choice of
country, the SMEs studied mentioned they had previously decided for strategic reasons to
enter the US market, even before deciding to look for a network of contacts and relationships
that would allow them to fulfil this objective. The choice of country was partly influenced by
the actions carried out in partnership with the CVRVV, although firm A had already made this
decision autonomously.
For firms B and C, the size of the US market was one of the principal indicators for choosing
it. The form of entry for firms A and C was through importers found in the programmes
developed in partnership with the CVRVV.
Finally, the importance of internationalization for the firms in this sector is confirmed. The
manager of firm A stated that “…no, I don’t believe that the firm would be viable without the
international market, we have been making major investment to improve our response
capacity…”, while the manager of firm B underlined that “...no, without internationalization,
the firm would not be viable….”.
5. DISCUSSION, CONCLUSIONS AND IMPLICATIONS
This study contributes to the network internationalization model (Johanson and Mattsson,
1988) through recognizing the importance of network activity in the internationalization of
SMEs in the area of Vinho Verde.
As is confirmed through carrying out this study, two of the three firms actively developed
relationships or used existing contacts to identify opportunities and achieve entry to the US
market. These conclusions contradict some studies that find firms follow their informal and
formal networks reactively to enter foreign markets (Bell, 1995; Coviello and Martin, 1999,
Moen et al, 2004; Zain and Ng, 2006).
The results obtained are consistent with other studies (Coviello, 2006; Westphal et al., 2006;
Ojala, 2008), which suggest that formal and informal relationships facilitate the
internationalization of SMEs.
The empirical evidence also agrees with the work of Havila et al. (2004), who find firms use
triadic relationships, where there are no commercial transactions between the buyer and the
intermediary or between the seller and the intermediary, an aspect found in this study in the
relationship between the three actors: firm, CVRVV and importer. The part played by the
CVRVV, as a partner and intermediary, is therefore highlighted in this process, underlining
the importance of non profit-making organizations in supporting and facilitating SME entry to
international markets, giving empirical support to the conceptual study of the importance of
the role of non-commercial organizations by Christensen and Lindmark (1993).
5.1 Theoretical and practical implications
From the point of view of management and strategy, relationships through intermediaries are
a valuable resource for SMEs that do not have an informal or formal relationship network
able to facilitate entry to international markets, especially when significant physical and
psychological differences are involved. These firms can use non profit-making or sector
organizations to enter those markets, using their contact networks and partnerships in the
intended country.
It is demonstrated that managers should actively develop their relationship and partnership
network, to allow entry to the intended markets. On the other hand, if the firm adopts a
passive attitude in following its network regarding international markets, it may lose market
opportunities and eventually be unsuccessful in its strategy of internationalization in these
same markets.
5.2. Limitations and suggestions for the future
The limitations of this study have to do with focusing on a single industry and a single
country, and so the results of the qualitative study may not be completely open to
generalization. It must be remembered that the US market has its own characteristics and
that the markets differ from one to another considerably (Ronen and Shenkar, 1985). The
Vinho Verde market has its own characteristics due to its very nature, and so the results of
this study require future validation in other industries and markets. The existing relationships
were neither validated nor confirmed with the other actors involved (importer and agency in
the USA), this being an aspect to explore in future research.
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