Human Resources

In the second graph the concept of “Human Resources” was further dissected to determine exactly which elements of human resources were most important to the respondents for internationalization.

Figure 4 – Human Resource Factors

87 The impact of human resources on internationalization is central to this study’s research questions. Because of this, and because so many categories fall within human resources, this conceptual classification was analyzed separately. The most frequently mentioned factors include “Attitude”, “Cultural Awareness”, “Professional Experience”,

“Technical Experience”, “Knowledge”, “Language”, “Networking”, and “Soft Skills”.

As in Figure 3, it can be observed that basic functional elements of human resources are essential. “Technical Skills” were reported by all respondents, “Problem-Solving” by 2 out of 7, and “Professional Experience” by 5 out of 7. “Market Awareness” and

“Knowledge” are “cross-over” elements of human resources because they contain both elements of experiential and objective knowledge. Overall, the graph demonstrates the great importance human resources have on internationalization and how well the framework developed fits the research questions.

Soft skills (e.g. communication skills), language ability, and cultural awareness all further improve the interactions that take place and benefit the business relationship (while also making the logistics of the process easier). “Soft Skills” was identified by all of the respondents as being important for internationalization while “Language” and

“Cultural Awareness” were each identified by 5 out of 7 respondents. Communication ability was demonstrated to be of utmost importance to the respondents. But it was not only the ability to speak well, but also their attitudes, social skills, emotional intelligence, and cultural awareness that enable managers to be more effective in dealing with foreign clients. International experiences help develop those skills by exposing individuals to foreign cultures (thus making them more culturally aware), increasing their interactions with people from these cultures (thus increasing social skills and emotional intelligence), and exposes them to new ways of thinking which shapes their attitudes and how they view the world.

In Figure 4 “International Experiences” was further broken down into sub-categories. Of these, “Professional International Experience” was deemed to be the most valuable with 6 of 7 respondents specifically mentioning it. Respondents indicated that professional international experience in the industry would be most preferable and this logically makes sense. If general international experience helps build soft skills, cultural awareness, and shapes attitude towards an international orientation then professional

88 international experience will have all those benefits along with the professional experience. It is also more specific to the needs of the company. Professional international experience will increase market awareness and country specific knowledge, both of which are established conceptual categories. Along the same lines, when considering the role of international experiences 2 out of 7 firms believed that they should meet the specific needs of the company. For example, if the firm intended to enter the French market, the international experiences should be within France. Some respondents also indicated that more general long term experiences were also helpful like study and living abroad. These experiences build the core skills necessary for internationalization and increase their ability to recognize and understand cultural differences. This supports our inclusion of other international experiences beyond only professional experience.

When reflecting upon the impact these results have on the usefulness of the UNRO framework and the related hypotheses it is important to note that every respondent affirmed that internationally experienced management teams support successful internationalization, thus providing the strongest confirming evidence to our central hypothesis (H1). Furthermore, “Attitude” was identified by 5 out 7 respondents and was most often referenced in the sense of openness and flexibility. This provides confirming evidence for H1.3 (Internationally experienced management teams should be more open to foreign cultures) and H1.4 (Internationally experienced management teams should be more accepting of change) and the usefulness of the Uppsala model.

However, attitude towards risk was not mentioned specifically. It may be reasonable to connect openness and flexibility with tolerance of risk, however, since it was not mentioned specifically H1.2 (Internationally experienced management teams should be less risk averse) cannot be confirmed through this evidence. This evidence demonstrates the importance attitude has on the ability to internationalize. When dealing with foreign markets and cultures being open and flexible increases the comfort levels both parties have in their interactions thus reducing uncertainty and increasing trust.

“Networking” was also demonstrated to be of substantial importance to the respondent with 5 out of 7 interviewees specifically mentioning it. This evidence support H2 (Internationally experienced management teams will prioritize networking).

Through networking firms are able to establish cooperation partners (shown to be a

89 considerable factor in Figure 3), find clients, and be exposed to opportunities. In this way, these results support H1.1 (Internationally experienced management teams should be more aware of opportunities in foreign countries). These results also indicate that the Network model is a beneficial addition to our theoretical framework. Networking allows firms to build valuable relationships with higher levels of trust (shown to be an important factor in Figure 3) then they could otherwise. Networking enables the firm to borrow the trust, reputation, and credibility of those who connected the parties or from past personal relationships. According to the Network model it also allows firms to potentially borrow resources that they might not themselves possess. Because of this, human resources and the networking ability they possess can make up for a lack of tangible resources. Thus, this generates supporting evidence for H4 (Internationally experienced management teams can make up for a lack of other advantages when internationalizing). Networking was established as an important factor in the relationship between international experiences and internationalization.