Consistent with the network approach (Johanson and Mattson 1988) internationalization is seen as a method in which relationships are continuously established, developed, maintained and dissolved with the aim of achieving the objectives of the company. Relationships are developed through interaction in which the parties build mutual trust and knowledge. These relationships are connected by networks that accommodates many firms as well as customers, competitors, supplementary suppliers, suppliers, distributors, agents, and consultants furthermore regulatory and different public agencies (Johanson and Vahlne 1990).It is assumed that without a good network in international markets the corporate can have problems with future growth. In step with Johansson and Mattson (1988) the internationalization of the corporate begins with the company being initially engaged in a very network that is primarily domestic. The corporate then internationalizes by developing relationships in networks in other countries.
The most purpose of those networks significantly for born global - is related to reducing the uncertainty in the beginning of the cooperation with new partners (Solberg 1999).The network approach can per Johanson and Vahlne be seen as an extension of the internationalization process. They state that an extension to take under consideration the network perspective should make the concepts "commitment, knowledge, current activities and commitment selections" as multilateral instead of unilateral as in the initial model. This suggests that the process is additionally inter organizational and not simply intra organizational (Johansson and Vahlne 1990: 19).
The importance of company and personal relationships varies connected to different industries and countries. It is indicated by Johanson and Vahlne (1990) that networks are particularly vital in turbulent, high technology industries.
Conclusion
A study by Lindqvist (1988) of the internationalization process of little high tech companies shows that some do not follow the ancient internationalization pattern, however go directly to additional distant markets and a lot of rapidly founded their own subsidiaries. One reason for this appears to be that the entrepreneurs behind these companies have international networks of colleagues coping with the new technology. Literature on Net enabled internationalization Net's applications include each being a vehicle that permits more efficient processes of conducting international business and a tool for promotion, data and communication (Hamill and Gregory 1997, Samiee 1998). Samiee (1998) argues that the use of the Web could enable business processes that historically have been performed manually to be automated. Bidding, buying, inventory management, and order/shipment tracking are examples of processes that have the potential of being automated through the Net in a world setting. The Web will additionally be deployed as a vehicle for revenue enhancement, for example, direct sales, promotion, and as a communications tool (Samiee 1998). Putting up a website can in line with Hamill and Gregory (1997) offer an enticing, low-price method of advertisement and advertisement to international customers, together with whole name recognition, public relations, press releases, corporate sponsorship, direct sales, customer support and technical assistance. In keeping with Quelch and Klein (1996) the web will revolutionize the dynamics of international commerce and in explicit lead to a lot of speedy internationalization of little companies. Many factors point in that direction. In explicit, they expect the competitive advantage of scale economies to be reduced as a consequence of the Web, creating it easier for small firms to compete internationally. World advertising costs, as a barrier to entry, are expected to be reduced given the worldwide customer reach at a lower value of the Internet. Furthermore, corporations offering specialized niche product can be able to search out the critical mass of shoppers necessary to succeed through the worldwide reach of the Internet.
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