Page 42 - AEI Insights 2020 - Vol. 6, Issue 1

AEI Insights, Vol 6, Issue 1, 2020

that strategy elements should be linked with internationalisation theory at theoretical and
operational levels. Melin (1992) claimed that the internationalisation process at both
conceptual and practical levels is complex, diverse and not stable. As a result, he suggested
long-term comprehensive research and approaches to fully understand the process of
internationalisation.
There are four major internationalisation theories that have been proposed by scholars. These
are the Uppsala or process theory, eclectic/economic theory, network theory and international
entrepreneurship theory. The four theories have played significant roles in business and firms’
internationalisation (Flach & Flach, 2010). Flach and Flach (2010) have also identified that the
internationalisation process has influenced the structure of education and higher education
system around the world. Dunning (1980) introduced the eclectic/economic theory and
emphasises three important advantages. These are ownership advantages, locational
advantages and internalisation advantages (Dunning, 1980) which underline the importance of
internal factors such as internationalisation at home, organisation ability, cost incurred
(Girdzijauskaite & Radzeviciene, 2014; Girdzijauskaitė et al., 2018) and Foreign Direct
Investment (FDI) (Ruzzier, Hisrich, & Antoncic (2006) as well as localisation (Edwards &
Edwards, 2001). Besides that, the international entrepreneurship theory features the importance
of integration of entrepreneurs in internationalisation (Ruzzier, Hisrich, & Antoncic (2006).
Ruzzier, Hisrich, & Antoncic (2006) claimed that international entrepreneurship theory is more
applicable to Small Medium Enterprises (SME), which emphasises the involvement of
individual entrepreneurs. Arguably, both theories do not match the approach, rationale and
strategy for internationalisation of higher education. As a result, this article explores the
Uppsala theory and network theory of internationalisation to conceptualise a framework to
support the higher education development as it widely accepted and useful for
internationalisation of higher education (Flach & Flach, 2010; Girdzijauskaite & Radzeviciene,
2014; Girdzijauskaitė et al., 2018; Girdzijauskaitė, Radzevičienė, & Jakubavičius, 2019;
James, 2009).

Uppsala theory of internationalisation
In 1975, Johanson and Wiedersheim-Paul, through their study on four Swedish firms,
concluded that firms required incremental steps to internationalise (Johanson and Vahlne,
2009). Two years later, Johanson and Vahlne (1977) advanced their findings and introduced
the Uppsala theory of internationalisation. The theory describes the features of the
internationalisation process of a firm. The model also focuses on interactive relationships rather
than economic benefits (Edwards & Edwards, 2001). In addition to its features, the model
stresses the state aspect (market commitment and market knowledge) and change aspect
(current business activities and commitment decision) (Johanson & Vahlne, 1977). In terms of
higher education internationalisation, the two aspects are applicable as international higher
education cooperation is developed stage by stage through risk understanding, opportunities
and benefits (Girdzijauskaitė et al., 2019). The internationalisation process in higher education
will start with mobility of international students and be followed by a more comprehensive
commitment such as exchange of staff, knowledge and technology transfer, curriculum and
programme development as well as the establishment of international branch campuses
(Girdzijauskaite & Radzeviciene, 2014). However, Edwards and Edwards (2001) expressed
that higher education institutions that adopted the Uppsala model need to embark wisely in
incremental steps of internationalisation process by examining the risks and increase
experiences before deciding on big commitments such as the establishment of branch
campuses.

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