This increasing internationalization of business includes elements of behavioral theory. According to the school Uppsala, the internationalization of business is progressive. Over time, businesses gain more knowledge about international markets and continually away from their native country (Johanson / Wiedersheim Paul 1975, pp. 306; Johanson / Vahlne 1977, p. 25). Thus, this model using the "process of introduction» (establishment chain) introduced the time factor in the internationalization of firms (Kutschker / Schmid 2008, pp. 459). The second element of the model is the "psychological distance» (psychic distance chain), which also includes the time factor which determined the order of entry in international markets (Johanson / Wiedersheim P. 1975, p. 308). This assumes that firms start their internationalization from neighboring countries that are psychologically close to their own market before undergoing expansion to more distant markets (Johanson / Vahlne 2003, p. 5).
The "internationalization model» (model of internationalization) presents the theoretical considerations, arising from empirical studies Johanson / Wiedersheim-Paul (1977, p. 24). This model includes both static and dynamic elements (see Fig. 1).
Illustration 1: Model of internationalization of school Uppsala
Source: Johanson / Vahlne 1977, p. 26
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The Johanson / Vahlne explain the internationalization of enterprises as a gradual process (1977, p. 25), which through the interaction of static and dynamic data is constantly evolving (see Fig. 1). Any development «Establishment chain» means an increase of «experiential knowledge» and «objective knowledge» for businesses. In this way, increase their knowledge of international markets, which help them in decisions on further expansion, and consequently changes in the «psychic distance chain». This gradual learning process leads to the next stage of the «establishment chain» (Johanson / Vahlne 1977, pp. 26). The interaction between existing knowledge and new experiences lead to further steps in the internationalization of business and they in turn enrich their knowledge. Under this procedure, the internationalization of firms evolves initially to mentally nearby (neighboring) in the mother country politically, legally, economically and geographically, culturally. Similarly, the school Uppsala, as well as the theory of Aharoni, assume that firms not only decide rationally. At the start of internationalization most companies take into account only a limited number of countries (Johanson / Vahlne 1977, p. 26).
3. Compatibility of model school Uppsala SME food
The model has been criticized regarding its potential to completely explain the internationalization of enterprises. However, import data in time and space, which gives it great potential for explaining the internationalization process in particular SMEs.Despite the continuous homogeneous business environment within the EU, many SMEs face the EU food a foreign market. These factors have led most to the prevalence of this view are those associated with the culture, increasing the subjective distance to other European countries. The diversity of cultures is reflected in the tastes of European consumers. The acquisition of knowledge about consumer habits and tastes of the country wants a company to extend a particularly important role in the decision.
It could be said that the model of the Uppsala internationalization appears to be largely explain the internationalization of SMEs in the EU food These matters will be addressed in the next section by using empirical data.
4. internationalization strategies of German SMEs in EU food
Carried out a survey in 210 German SME food. The evaluation results included 50 companies that are independent, ie not subsidiaries of a multinational, or are any form of joint venture, strategic alliance, etc. and the maximum number of employees does not exceed 250 people. It should here be mentioned that although 18 years have passed since the creation of the single market, most SMEs face food EU countries in foreign markets. 73.9% consider the EU countries a foreign market, while only 26.1% of respondents consider them as an internal market.According to the survey could be said that Austria is a popular market for German SME food. The same goes for the Netherlands and Belgium.
11.5% of German SMEs food preference for Austria as first choice for internationalization, followed by Belgium and the Netherlands with 10.4%.
Some food SMEs use some form of cooperation (co-operation) with low capital investment, such as production permission (licensing), franchising (franchise), as opposed to internationalization strategies such as joint ventures (joint ventures), strategic alliances (strategic alliance ), acquisitions (acquisitions) or set up subsidiaries abroad.
Illustration 5: Strategies for internationalization of German SME food.
direct and indirect exports as a strategy of internationalization at the rate of 74.4%. The second position held by partnerships (license, franchise) with a rate of 18.6%, while less importance they hold for food SMEs internationalization strategies with high capital investment.
Also of particular interest are the reasons why the majority of SMEs choose food exports as a form of internationalization.
The reasons are:
Ø Geographical proximity.
Ø Inadequate knowledge of international markets.
Ø Current demand for the product.
Ø Relationships with commercial agents.
Ø Expansion of production capacity.
From these responses of German SME food is evident that the internationalization through exports is usually no or only a strategic management decision. In many cases lies in contact with existing dealers.
5. Conclusions
Also, the case of the model Uppsala, the internationalization of firms is not always an entirely rational decision, the concept of strategic choice of countries to internationalize, confirmed to the German media. As mentioned above, the internationalization of SMEs mainly due to begin meeting with existing agents that may promote their products abroad or because of existing demand for their products in foreign markets or because of geographical proximity of countries to be extended .
Under the assumptions of the model of Uppsala, businesses penetrate the «establishment chain» in four stages until the full internationalization. This applies to the German media, which are largely based on the survey still undergoing initial stages of internationalization, while only a small number have internationalized through joint ventures or strategic alliances and subsidiaries within the EU But in no case found in the survey switching from first to third or fourth stage of internationalization.
Therefore, the Uppsala model largely explains the internationalization of German media and food is a reference point for this research.
In summary we can say that following the example of German food SMEs, internationalization could serve as a counterweight to the dangers facing possibly the Greek food SMEs in the domestic market, as increased competition, small internal market, saturated products it markets k . ok Starting an internationalization through low-risk forms of internationalization could be an important growth factor for many Greek small businesses.
* Dr.. Basil Kormalis; Ph.D., University of Bremen (Germany) Expertise: International Food Marketing - Business Consultant: Project management & Marketing consulting.
