Internationalizing value creation_Teigland

Social Media as a Tool forInternationalizing Value

Creation October 2012

Dr. Robin Teigland Karinda Rhode in SL

Stockholm School of Economicswww.knowledgenetworking.orgwww.slideshare.net/eteigland

RobinTeigland

Today’s discussion

Background

Using social media for internationalization

Into the future

What is globalization?

The extent to which networks of individuals and organizations, markets, and technologies are

interconnected across geographic and cultural boundaries.

−Beech and Chadwick 2004, −Friedman 2002

Why globalization?

The information age in which we live allows both large and small

businesses to thrive on a global scale. Technologies like the internet, mobile phones, etc. have made our

shrinking world even smaller.

Kingsley 2005

Did You Know: Shift Happenshttp://www.youtube.com/watch?v=cL9Wu2kWwSY&feature=search

Which forces for internationalization are presented?

Forces for worldwide innovation and learning

Increasing pace of technology developmentShortening product life-cyclesRising R&D costs Increasing number of multinationals with

capability to develop and diffuse innovation globally

Increasing need to develop worldwide organization as a learning system.

Innovative capability as emerging source of competitive advantage.

”No one knows everything, everyone knows something,

all knowledge resides in humanity.”

networks

Adapted from Lévy 1997

Six degrees of separation

- Milgram, 1967

3.74 degrees of separation!

Source: Facebook

Aug 20125 mln active

monthly users in Sweden

Growing social media landscapes

http://www.resonancechina.com/2012/03/13/updated-2012-china-social-media-landscape/

What are social media?

Media that..- enable communication &

collaboration… - through user-generated

content….- from one-to-one to

many-to-many people…- across all boundaries

People > 45 years becoming more active

Edison Research, 2012 - US-based study

% age group with personal profile on any social networking website

Driver of change: Creation > curation

46% Creators: Create and post photos, videos, etc.

41% Curators: Find and post photos, videos, etc.

http://pewinternet.org/Reports/2012/Online-Pictures.aspx

US Inc 500* shift from blogs to Fb and Twitter

Twitter Facebook Public blogs YouTube0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

52%

61%

45%

0%

59%

71%

50%

0%

64%

74%

37%

45%

200920102011

http://www.umassd.edu/cmr/socialmedia/2012inc500socialmediaupdate/

*Fastest-growing private companies

Today’s discussion

Background

Using social media for internationalization

Into the future

Social media help overcome internationalization challenges

Challenges How overcome

Psychological, e.g., local mindset, risk, fear

Use networking sites and forums to build global mindset and confidence

Organizational, e.g., limited resources, lack of foreign knowledge and experience, problems in finding right agents/distributors

Use SM for marketing and communications, e-learning, networking

Operational, e.g., export documentation; management of export operations; language problems; payment delays/risk

Use open source software and hosted applications to improve operational efficiency and reduce costs. ‘Crowdsource’ help through networking sites and online virtual communities

Product/market, e.g., identification of most attractive markets, tailoring of product/service to local market

Use networking sites to create understanding/awareness of trade barriers Use SM for export market research; direct to customer relationships

www.energise2-0.com

Get active and create awareness!

21

Access to 24x7 global workforce

Matchmakers: USD 1bln industry

Increasing supply of freelance talent globally

https://www.elance.com/trends/talent-available

Global Online Employment ReportQ2 2012 at Elance

Where are the sources of sustainable competitive advantage?

#1

InnovationNetworks of relationships

Brand & Reputation

FIRM

Kaye 1993

#1

InnovationNetworks of relationships

Brand & Reputation

FIRM

Where are the sources of sustainable competitive advantage?

Teigland 2010

Building community though relationships

http://twitter.com/#!/zappos

Core Value #6: "Build Open and Honest

Relationships with Communication

30% profit margin in

commodity business

From clothing to home products….

OpenSimulator: A value-creation ecosystem

AcademicEntrepreneurHobbyistLarge FirmNon-profitLocal PublicFederal PublicResearch InstSME EmployeePeriphery

Teigland, Di Gangi, & Yetis 2012

“Open source” …not just about software anymore

New forms of financing

http://blog.intuit.com/trends/crowd-power-what-is-crowdfunding-infographic/

But….

Not every firm is ready to internationalize−Prematurely venturing outside borders may

harm overall firm performance, especially for smaller firms with small margin for error

• Long-term investment

• High ambitions - risk

• Commitment - exit barriers

Adapted from Sölvell

Today’s discussion

Background

Using social media for internationalization

Into the future

The new market place

A shift by companies from being “problem solvers” to “solution finders”

Ericsson & Augur 2011

Shifting market logic

Ericsson & Augur 2011

Only a matter of time?

O’Driscoll 2009

From the mobility of goods to the mobility of financial capital to …

Teigland, JVWR, 2010

...the “mobility” of labor?

Some things do not change

Innovation Exchange

Exchange Trust

Trust RelationshipsRelationships Interaction

Karinda Rhode

aka Robin Teiglandrobin.teigland@hhs.se

www.knowledgenetworking.org

www.slideshare.net/eteigland

www.nordicworlds.net RobinTeigland

Photo: Lindholm, Metro

Photo: Nordenskiöld

Photo: Lindqvist

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