LUẬN văn THẠC sĩ (KINH tế) the case of french SMEs in the wine industry going to ASEAN countries

Thecurrentsituationabroad...p.55 Chapter5,Researchfindings...p.57 5.1.. HowtoknowiftheinternationalizationofSMEs issuccessfulor not?... 79 Appendices...p.88 AppendixA,Interview’squestion

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2.1.1.TheASEANcountries p.142.1.2.TheFrenchWineindustry p 18

2.2.International marketing p.192.2.1.Definition p 192.2.2.Theeclecticparadigm p.20

2.3.Internationalization ofSMEs p 21

2.3.1.Definition p 212.3.2.TheUppsalamodel p 232.3.3.T h e InternationalNewVenturestheory p.25

2.3.4.TheNetworktheory p.26

Chapter3,Methodology p 303.1.Researchquestions p.303.2.Researchpurpose p.31

3.3.Researchobjectives p.31

3.4.Researchphilosophies p.32

3.4.1.R e s e a r c h philosophy p.33

3.4.2.R e s e a r c h approach p.353.4.3.R e s e a r c h strategy p.363.4.4.R e s e a r c h choice p.373.4.5.Timehorizon p 373.4.6.Datacollectionandanalysis p 383.5.Population andsampling p 39

3.7.Reliabilitya n d v a l i d i t y p.4 2

3.8.Summary ofthemethodologyused p.43

Chapter4,Datadescriptionandanalysis p 44

4.1.Generalinformation p.44

4.2.Interviewdescription p.454.2.1.I n t e r v i e w N°1,ChateaudeFrance p.45

4.2.2.I n t e r v i e w N°2,DomaineFourrey p.45

4.2.3.I n t e r v i e w N°3,DomaineDamptEmmanuel p.464.2.4.I n t e r v i e w N°4,DomaineThierryRichoux p.484.3.Dataanalysis p 494.3.1.Summary ofdata p.494.3.2.Dataanalysis p 494.3.2.1 TheSMEs’motivationsforinternationalize p 49

4.3.2.2 Entrymodesusedtogoabroad p.51

4.3.2.3 Issuesencounteredwheninternationalize p 524.3.2.4 IsthereanactivitywithintheASEANcountries? p.544.3.2.5 Thecurrentsituationabroad p.55

Chapter5,Researchfindings p.57

5.1 Whataretheimpactsofglobalizationontheinternationalizationof SMEs? p.575.2 WhatisthebeststrategicchoicefortheFrenchSMEstomakeasuccessfulinternationalization? p 58

5.3 HowtoknowiftheinternationalizationofSMEs issuccessfulor not? p.59

Chapter6,Conclusion p 636.1.Conclusion p 63

6.2.Ther ol e ofthe the orie sand howth e y describet h e internationalizationprocessofSMEs p 63

6.3.Themostusefulaspectsofthetheories p.64

6.4.ThecyclicmodeloftheinternationalizationofSMEs p 65

Chapter7,Self-‐AssessmentonOwnLearning p.707.1.Introduction p 707.2.Reflection onLearning p 707.2.1.Definition p 707.2.2.R e l a ti o n s h i p s betweenReflectionandLearning p.71

7.2.3.The ExperientialLearningTheory(ELT) p.727 3 Skillsdevelopment p.747 3 1 R e s e a r c h capabilitiesandanalyticalskills p.747 3 2 Communicationandlanguageskill

s p.747.3.3.A c a d e m i c knowledge p.757.3.4.Teamworkingskillsandworkingmethodology p.767 3 5 Timemanagementskills p.777.4 Futuredirections

p 77

Bibliography p 79

Appendices p.88

AppendixA,Interview’squestions p.89AppendixB,TheConfidentialityAgreement p.90AppendixC,TheInformedConsentForm p 91

LIST OFILLUSTRATIONS

Figure1,TheASEANflag p.14Figure2,TheASEANcountriesmap p.15

Figure3,TheUppsalamodel,stateandchangeaspects p.24

Figure4,Internationalizationandthenetworktheory p.27Figure5,TheResearchOnion p.32Figure6,ThedifferencesbetweenDeductionandInductionapproachesinresearchmethods

p 35Figure7,Time Schedule p.41Figure8,Summary ofthemethodologyused p.43

Figure9,InformationabouttheSMEs’interviewees p.44Figure10,Summaryoftheinterviews p.49Figure11,Theexperientiallearningcycle p.73

Throughoutm y w o r k ont h i s dissertation,m a n y peoplehavesupporteda n d helpedm e inv a r i o

u s ways.Mythankgoestoallofthem

Iwishtothankallthose,whoparticipatedintheempiricalstudyofthisthesis.Withouttheinformationtheyshared,thisresearchwouldnothavebeenpossible.Ontheonehand,myt h a n k s gotoClotilde&Philippe,andalsoChristopheFLOUZAT,whohelpedmetofindWineg r o w e r s formyinterviews.Ontheotherhand,IwishtothankthefourinterviewedSMEs,inparticulartheirCEO(ArnaudTHOMASSIN,M a r i e - ‐

J o s é FOURREY,EmmanuelDAMPTa n d ThierryRICHOUX),whosharedtheirdetails,richknowledgeandexperienceswithme.Theirinsighthasgr e a tl y e nr i c he d m yunderstandingofinternationalizationprocessofSMEsa nd improvedthestudy

Iwouldliketothankyoumysupervisor,P.JPAUL,forhisunderstandingofmysituationandhisc a p a

c i t y t o r e s p o n d t o m y questionsina v e r y usefula n d quickw a y Heprovidedm e g u i d a n c eandsupporttoimprovethequalityofmydissertation

Fornumerousdiscussionsoftopicalmatters,IwouldliketothankmyfriendAthénạsw i t ho ut whomthechoiceofthetopicwouldhavebeenmuchmoredifficult.Shehasknownt o helpmetofindtherighttopic,inothertermsthetopicthatinterestsmeforwritingthisw h o l e dissertation

ABSTRACT

Nowadays,theconceptofglobalizationseemsreducedtothesizeofthemarketand,exportisonlyonea s p e c t oft h e phenomenonofglobalization.I n g l o b a l industries,itisnowt h e m o s t competitive positionsandbasesofcompetitiveness whichshouldbeestablishedw o r l d w i d e Therefore,g l o b a l i z a ti o n r a i s e s strategiest o becomem o r e g l o b a l r a t h e r t h a n local.Thosestrategiesc o n s i s t ine x p a n d i n g a n d c o o r d i n a ti n g a l l a c ti v i ti e s oft h e c o m p a n y w

o r l d w i d e

Inafirsttim e , tounderstandw h y SMEsinternationalize,t h e re se ar c he r willdealw i t ht he t r

a d i ti o n a l modeloftheinternationalizationoffirms(theUppsala model).Andthen, morer e

c e n t l y , newm o de l s ofinternationalizationhavebeendeveloped.Thesem od e l s, cr e ate d f o l l

Keywords:internationalization,theUppsalamodel,andthenetworktheory,SMEs

Sincethelastthreedecades,theinterestfortheSMEshasbecomeaglobalphenomenon.Thisinterestisreflected intherecognition ofthemulti-‐

nationalenterprises’(MNE)legitimacyasaresearchtopicitself

SMEsarenolongerconsideredasminiaturesofmultinationals andtheirstudyisaseparatefieldoftheFrencheconomy(Laghzaoui,2009).SMEsaremajoractorsofglobalization andt h e i

r internationalizationr e p r e se n t s theec onom ic stakesinte r m s ofinnovation,em pl oym e ntandinternationaldynamismofacountry.ThatiswhyitisimportantforaSMEtodevelopallorpartofitsactivityinternationally.Nowadays,twomainfactorsforcingSMEst o internationalize:inonehand,t h e r e ist h e Chineset h r e a t ont h e FrenchW i n e I n d u s t r y , a n d ontheotherhand,thereistheexplosionoftheglobal consumptionandthedecreaseoft h e Frenchc o n s u m p ti o n (France-‐Monde,“Vinexpofacea u x défisdelam o n d i a l i s a ti o n ” , 2 0 1 3 ) AccordingtoastudyconductedbyVinexpo(theFrenchWineExposition,2013),thew o r l d w i d e consumptionexpectedtogrowby5,3%between2012and2016

However,t h e FrenchSMEsa r e strugglingt o developa l l orpartoft h e i r a c ti v i t y a b r o a d (Bourcieu,2012).FrenchSMEshavesomedifficultiesinunderstandingforeignmarketsbecauset h e

y donota l w a y s havet h e languagea n d interculturalskillsfort h a t M o r e o v e r , t h e y mightnotknowallthewaystointernationalizetheiractivity

So,t h i s r e s e a r c h w i l l bebasedont h e followingoverallquestion,“Whichw a y s ofinternationalizationFrenchSMEscouldadopttoexpandtheiractivityabroad,particularlyinSouthEastAsia(ASEAN)?”

TheideahereistoprovetoFrenchSMEsthatthereareseveralwaysofinternationalization.Exportist

h e bestk n o w n a n d m o s t practiced,butt h e r e a r e severalotherw a y s ofinternationalization.And,itwouldbeinterestingforFrenchSMEstoknowalltheseways.So,thepurposeofthisresearchistofindoutthebestsuited

strategicchoiceforFrenchSMEs,intheWineIndustry,thataregoingtoASEANcountries

ThescopeoftheresearchistheFrenchSMEsintheWineIndustrythataregoingtoASEANcountries.Thisresearchwillnot

beextendedtoChina.And,therewillhavethreelimitations:ti m e management,thetranscriptionsofinterviewsthatwillbeinFrench,andtheaccesstoc o m p a n i e s

Thisstudywillbebasedontheknowledgeandexperiencesthattheresearcherhasacquiredduringherfiveyearsofstudy.Curiosityandthedesiretodiscoverallowtotheresearchertoc o n d u c t t h i s

r e s e a r c h bya d o p ti n g a n interpretivisma n d subjectivistphilosophyw i t h i n a n inductivea p

p r o a c h usingqualitativedatat h r o u g h interviews(multi-‐

method).Them a i n purposeoft hi s r e s e a r c h ist o showt o FrenchSMEsinth e W i n e Industr y t

h att h e r e e xi st s m a n y w a y s t o developt h e i r a c ti v i t y a b r o a d Ther e s e a r c h e r w i l

l intendt h i s objectivebym e e ti n g fourFrenchWinegrowers

Thisdissertationiscomposedinsevenchapters.Thefirstchapteristheintroduction.Inthesecond

c h a p t e r , t h e r e s e a r c h e r w i l l e x p l a i n differentt h e o r i e s ofinternationalization(theUPPSALA model,theNetworktheoryandtheINVtheory).Thesetheoriesappearinachronologicalorder.I n c h a p t e r t h r e e , a l l t h e m e t h o d o l o g y usedfort h i s r e s e a r c h w i l l bedes

researcherwilldescribeandanalyset h e data.In chapterfive,theresearcherwilllinkthefindingsfoundwitht h e

r e s e a r c h questions.Inc hapte r six,the re s e ar c her will presentt he c oncl usi ons aboutthe se theories a n d w ays ofinternationalization,and willm ak e somere comme ndations forSMEsineve ry industry.Andfinally,inchapterseven,aself-‐reflectiononown

learningandperformanceoft h e researcherwillbemade

Thisr e s e a r c h w i l l bea d d r e s s e d m a i n l y t o FrenchSMEsw i t h i n t h e W i n e I n d u s t

r y , w h i c h w oul d liket o developt h e i r a c ti v i t y ina foreignm a r k e t B u t , itw i l l a l s o beusefulfora n y SMEsofanyindustry.Moreover,allmanagers,whateverthesizeoftheirorganization,couldbeinterestedbyt h i s r e s e a r c h t o havea betterunderstandingoft h e internationalizationprocess.And,a s t h e dissertationr e p o r t w i l l ber e c o r d e d int h e DublinB u s i n e s s Schooldatabase,futureDBSMaster’sstudentmightbeinterestedbythisresearch,andalso,studentsfromtheLiverpoolJohnMooresUniversity,whichisthepartneruniversity

Finally,ofcourse,theresearcherbenefitsfromthisdissertationonbothpersonalandprofessionalpointsofview Intheonehand,theresearcher canusethisstudyasa“plus”duringherjobinterviews;a n d ont h e otherhand,t h e r e s e a r c h e r learntlotsoft h i n g s bydoingthisstudyasconductingawholeresearchalone,soithasdevelopedherinterpersonalskills

CHAPTER 2 , L I T E R A T UR E R E V I E W

In

thischapter,theresearcherwillpresentthetheoreticalframeworkthatisconsideredtoberelevantfo rthisstudy.Thechapterisbasedonpresenting,inafirsttime,thecontextandtheunitofanalysis,andth en,onthetheoriesconcerning.

Figure 2, the ASEAN countries map.

Here,thereisalimitationfortheresearcherduetothereligionofthesecountries.Indeed,m

o s t ofthemareMuslim.So,theresearchermustpayattentionto studytherightcountrybecauseofthecontextofthisresearch,theWineIndustry

So,itisinterestingt o k n o w whyt h e s e c o u n t r i e s haveinterestedt h e researcher,a n d t o understandwhatcharacteristicstheSouthEastAsiancountrieshave

TheFrenchSMEsbetontheASEANcountriestorevivetheirgrowth.Indeed,ASEANc o u n t r i e

s ar e t h e futureEldoradoofW i ne producers.A s i a n c on qu e s t isa l r e a d y underwaya n d thecompetitionbetweendifferentactorsseemstobeveryfierce

Singapore,whichrepresentsahugepartofFrenchexports,actsasaplatformforforwardingFrenchWineintheotherASEANcountries,whichenjoylowertariffs SingaporeisseenasastrategicpositionintheheartofSouthEastAsia.Indeed,after ChineandJapan,thiscityist h e thirdAsiandestinationfortheFrenchproducts,andespeci all y fortheFrenchWi ne.In 2 0 1 1 , Franceexportedfor€5,1billioninSingapore.But,despiteadownturn(forecastfrom1 % t o 3 % fort h i s y e a r ) , t

h e State-‐citystillimportforitsownc o n s u m p ti o n , buta l s o t o

redirectt o w a r d s t h e A S E A N c o u n t r i e s Thisisa hugehub:5 0 % ofimportedproductsa r e distributedinSouthEastAsia.So,selltoSingaporeisliketoselltoSouthEastAsianc o u n t r i e s

Moreover,othercountriessuchasMalaysia,Vietnam,IndonesiaandTạwanhaveaFrenchW i

n e consumptiongrowth,whichdoubleeveryyear

Malaysiaisonefamousdevelopingc o u n t r y expl ic i tl y supportingSMEst o beg l o ba l l y c o n n e

c t e d A m u l ti e t h n i c a n d polyglotc o u n t r y , M a l a y s i a hasm a j o r a d v a n t a g e s ofbeingpoliticalstablewithfirstclassphysicalinfrastructure.M or e ov e r , Malaysia iscompetitiveina tt r a c ti n g directforeigninvestments,and thisisamongtheworld’stop20trading nations(theNST,2006).So,MalaysiaisoneofthemoststablecountriesinSouthEastAsia,whichfavoursmanyoftheinvestors

Moreover,A S E A N g o v e r n m e n t a n d e s p e c i a l l y , M a l a y s i a n g o v e r n m e n t a r e r e a d y t

o paysomucha tt e n ti o n t o t h o s e FrenchSMEs.A n d , t h e y a r e r e a d y t o helpt h o s e SMEsint h e i r developmentandgrowth.ThatisthereasonwhyitisveryimportantfortheFrenchSMEsint h e Wineindustrytodeveloptheiractivityinthispart oftheworld

AfterMalaysia,FrenchSMEsintheWineindustrysteeracourseforVietnam.Indeed,Vietnamisfullofbusinessopportunities.Twofactorspromotee xc ha ng e s betweenFranceandVietnam.I n onehand,t h e localm a r k e t issaturated.I n d e e d , t h e localconsumptiondeclinedsince1960,Frenchpeople drink lessWineandtheirhabitsandtasteschange

ThatiswhyFrenchSMEsintheWine industryhavean interestindevelopingtheiractivity abroad,andespeciallyinASEANcountries.

Andontheotherhand,thereisastrongculturalrelation betweenFranceandVietnamduet o c o l

o n i z a ti o n So,itispreferableforFrenchSMEst o g o inVietnamr a t h e r t h a n a n o t h e r c o u n t r y Inde e d, to da y isth e bestti m e t o ta k e a n interestinVietnam;t h e m i d dl e cl ass isunderconstantdevelopmentandyoungpeoplearelookingforsomethingnew(Brick,2013).M o r e o v e r , Vietnameseseektoreducetheirdependenceon

China,andthusattractinvestorsinlogicoftransferoftechnologyinordertomanufactureproductslocallywithhigheraddedv al ue (Lecourtier,2013) Andfinally, FrenchSMEs,wishingtoexpandintonewlocalmarkets,c o n s i d e r i n g VietnamasanaccessdoortoalltheASEANcountries.“Vietnamcouldbearearbaseto t a r g e t c o u n t r i e s likeSingapore”(Lamarre,2 0 1 3 ) Tos u m up,itseemse s s e n ti a l tonoticethat2013istheyearforFranceinVietnam.Aspotlightwillbegiventothiscountry,w h i c h isconsideredasoneofthemostpromisingareasinAsia.Withanincreasingaveragepurchasing power,theopportunities intheWineindustryaresignificant

Taiwanisseena s a placet o t a k e forbusiness.I n d e e d , t h e t h i r d A s i a n e c o n o m y a tt r a c t

s r e l a ti v e l y fewFrenchpeople.IntheshadowofitsbigneighbourChina,Taiwanshowed3%g rowththisyear.TheSMEsintheFrenchWineindustryhasanexcellentimagetoexploitint h i s country.Anothercountry,thatdoesnotdomuchinFrance,isIndonesia.However,with7 % growthperyear,thisisoneofthemostdynamic economiesinthisregion

So,ASEANcountriesareperceived suchasapriority oftheFrench ForeignTrade.Indeed,theFrenchmarketsharereachesatitsmaximum1,5%inthisregion,whiletheASEANcountriesshowg r o w t h r a t e a b o v e 5 % Thisa r e a showsa lotofinterestsa n d opportunitiesfort h e FrenchSMEs oftheWineindustry

Moreover,t h i s observedphenomenonoft h e FrenchW i n e int h e A S E A N c o u n t r i e s ist h e c

o n s e q u e n c e ofa phenomenonofW e s te r ni z ati o n W i ththe increaseoft h e buyingpowera

n d thestandardsofliving,AsianyouthaspiretoWesternluxury.TheFrenchWineisverya p p r

e c i a t e d bySouthEastAsianpeoplebecauseitembodiesthetradition,refinementand romanticism A n d r e d W i n e ism u c h m o r e a p p r e c i a t e s becausebyitsc o l o u r itr e p r e s e n t s luck,fortuneandlove,whichareimportant symbolsinthesecountries