Internationalization Process: Analysis of a cooperation network in

the Vinho Verde sector for the US market

António Nunes

University of Beira Interior

PhD Management Student

Estrada do Sineiro, 6200-209 Covilhã, Portugal

phone: +351 253 300 340, fax: +351 253 625 560

email: ajonunes@sapo.pt

Mário Franco

University of Beira Interior

Management and Economics Department

NECE – Research Center in Business Sciences

Estrada do Sineiro, 6200-209 Covilhã, Portugal

phone: +351 275 319 636, fax: +351 275 319 601

email: mfranco@ubi.pt

ABSTRACT

Internationalization as a strategic element in the current context of globalization is

increasingly a determinant of business success. Based on the literature in the area of

internationalization and networks, through a case study – a cooperation network involving

small and medium-sized enterprises (SMEs) – this article intends to highlight the relationship

between the various partnerships established both formally and informally. It also intends to

show the importance of the various actors involved in the network, and especially the role

played by the Wine-Producing Commission of the Vinho Verde Region (CVRVV). The results

of the study show the importance of the network relationship for entry to the US market,

since penetration in that specific market is determined by strategic reasons and following

network relationships which already exist or are subsequently created. According to the

empirical evidence, use of network contacts for development and entry to the US market is

also found to be fundamental, these relationships initially being intermediated by the non-

profit-making sector entity of the CVRVV. Some theoretical and practical implications are

also presented.

KEYWORDS: Cooperation, CVRVV, USA, formal, informal, internationalization,

partnership.

Internationalization Process: Analysis of a cooperation network in the Vinho

Verde sector for the US market

1. INTRODUCTION

Increased transactions on a global scale and the elimination of commercial and economic

borders between countries, associated with growing regional and worldwide interaction which

has become more intense in recent decades, have provided firms with new opportunities,

creating new competitive challenges from both international and domestic competitors.

The elaboration of strategies to respond to these challenges depends not only on the firm but

also on its sector of activity (Teruchkin, 2005). In this connection, this study is set in the wine-

producing sector which plays an important role in the Portuguese economy, contributing very

significantly to the final value of agricultural production and exports.

The wine sector in Portugal, and particularly that of Vinho Verde, is integrated in an

increasingly competitive international scenario. The production capacity of the Portuguese

wine industry has been greater than demand, and so international markets are seen as the

great opportunity and solution for the sector’s competitiveness, with the simultaneous need

to adapt production to the commercial requirements of the demand through new products,

this being accepted as an important factor in intensification of exports (Bardaji and Mili,

2009). The Portuguese Vinho Verde sector is an important one, currently made up of 21.562

producers, essentially SMEs.

The process of globalization has meant that internationalization is no longer merely an option

for SMEs, but rather a determinant of their survival and success (Pla-Barber and Alegre,

2007). In this global context, export activity has played an important role, referred to as the

simplest and quickest way to access international markets (Majocchi et al., 2005).

Badrinath (2004) states that among all the theories and perspectives of internationalization

the network option seems to be most relevant from the point of view of SME

internationalization. The importance of network relationships for the internationalization of

this type of firm has been dealt with in several studies (e.g., Coviello, 2006; Zain and Ng,

2006; Ojala, 2008), having a great impact on the choice of how to enter the various markets

(Moen et al., 2004; Zain and Ng, 2006).

Markets are relationship networks in which firms are connected to one another in various and

complex ways, and in contexts that are extensive and often invisible (Johanson and Vahlne,

2009). Therefore, the perspective of networks within the internationalization process goes

beyond its conception as an internal process of the organization. Fleury and Fleury (2003)

state that one of the principal characteristics of the new economy is the transition from

individual efficiency to collective efficiency, where competitiveness is related to the

performance of networks between organizations rather than individual firms.

Many studies have dealt with the internationalization process, with a significant increase in

research in the last decade (Singh, 2009). Nevertheless, there is still no great consensus as

to the main factors leading firms to develop international markets (Pla-Barber and Puig,

2009). Indeed, with the growing interest in firms’ internationalization, Elo (2005) argues that

the focus of studies on internationalization should include the network context in their scope.

In this connection, aiming for better understanding of the internationalization process,

considering the network perspective, this study intends to answer the following question:

What is the internationalization process of Portuguese SMEs producing vinho verde in

approaching the US market through a network of organizational cooperation?

The remainder of the paper is structured as follows. First, a review of the literature in the

area of internationalization and networks is carried out. Empirical analysis of the case study

follows. Then the results, discussion and conclusions are presented. The study ends with the

implications for research and management, mentioning limitations and some suggestions for

future work.

2. LITERATURE REVIEW

2.1. Internationalization from a network perspective

The literature related to firms’ internationalization supported by networks is extensive,

showing various approaches to researching this phenomenon. Various network theories

have been used to explain companies’ internationalization in the most diverse sectors.

Internationalization through networks can provide essentially three major benefits. Firstly,

through network connections, managers can recognize international opportunities that allow

company expansion (Coviello and Munro, 1997; Johanson and Vahlne, 2006; Fernhaber and

Li, 2013). Various studies identified that the majority of firms initially gain access to

international markets through opportunities presented by their network of contacts rather

than through searching on their own initiative (Chen and Chen, 1998; Johanson and Vahlne,

2006; Ellis, 2011).

Secondly, networks can lead to creating an exchange of experiences, a vital component for

internationalization in new markets, allowing the firm to obtain resources and gain legitimacy

(Oviatt and McDougall, 1994).

Finally, networks can provide firms with important information related to international markets

(Sharma and Blomstermo, 2003). The study by Eriksson et al. (2000) concludes that the

knowledge acquired can have to do with business (i.e., clients and competition), institutions

(i.e., government, rules, norms, legislation) or internationalization (i.e., capacity to enter the

market and the necessary resources). These benefits are important as they allow firms to

compete with local firms in foreign countries, firms which do not normally lack those

elements.

According to Hakansson and Snehota (1989), “no business is an island”, due to businesses

overlapping in a network context with interdependence between the various network

members. Johanson and Mattsson (1988) also state that businesses in an international

context are based on network assumptions. These authors define a firm’s network as the

long-term business relationships a firm has with its clients, distributors, suppliers, competitors

and government bodies. This network also includes relationships between the parties

involved, for example, between one client and another, client and supplier and client and

competitors. The dynamics of the relationship between the two parties is also influenced by

the relationships of that partnership, as they provide both opportunities and restrictions.

One of the least developed aspects of an internationalization process has been cooperative

agreements mainly in terms of firm networks. Network Theory has come to improve

understanding of these relationships in internationalization, both in the inter and intra-

organizational aspect (Lorga, 2002). This author also states that the international extent of

networks depends both on the country and the product and will have strong implications for

the firm’s internationalization.

International cooperative strategies allow firms to share risks and resources on entering new

markets, facilitating the development of new competences (Hitt et al., 2002).

Business networks allow access to various resources necessary for the firm’s

internationalization strategy, since the firm’s capacity to gain access to other organizations’

resources, mainly through horizontal networks, is an important explanatory variable of

internationalization (Chetty and Holm, 2000).

Company managers who intend to internationalize should take advantage of network

resources, such as the geographical proximity of companies and partners. They should be

better integrated in the international community so as to form relationships with international

partners, which lets them consolidate their presence in international markets (Fernhaber and

Li, 2013).

Decisions related to how to enter international markets are considered strategic in the firm’s

attempt to internationalize its activities (Qian and Delios, 2008; Moen et al., 2004).

According to Moen et al. (2004), the firm’s network relationships will determine the

international markets to be chosen and the form of entry.

Some researchers (e.g., Loane and Bell, 2006; Coviello, 2006; Chetty and Holm, 2000)

demonstrated theoretically and empirically how firms use networks for their

internationalization. Loane and Bell (2006) found that a great number of firms actively used

existing networks to develop knowledge about international markets and improve their

international competitiveness. Coviello (2006) concluded that network theory is fundamental

for international entrepreneurship. Chetty and Holm (2000) also verified the dynamics of how

firms interact with their network partners to extend, penetrate and integrate international

markets.

2.2. Characterization of the internationalization process from a network

perspective

i) Ways of entering international markets through networks

Initially, the Uppsala internationalization model assumed that the knowledge necessary for

internationalization is mostly acquired through outside operations (Johanson and Vahlne,

1977, 1990). This model was recently altered to recognize international exposure through

network relationships. The network model was presented in the 1980s, when it became

evident that most firms used various networks to facilitate their internationalization activities

(Johanson and Mattsson, 1988). This confidence in using networks in the international

context is widely attributed to the interdependence between companies, countries and

markets (Dunning, 1995).

For Johanson and Mattsson (1988), in this model, internationalization occurs when a firm

begins to develop relationships with another belonging to a network in a foreign country.

Relationships between firms in different countries serve as a bridge to new markets

(Johanson and Vahlne, 1990). The development of these relationships with other actors in

the market can be active or passive. From a perspective of an active network, the seller

takes the initiative, whereas from a passive perspective the initiative is on the side of the

buyer (Johanson and Mattsson, 1988). The importance of an active network in terms of

learning, acquisition of knowledge, external expansion, etc, is demonstrated in various

studies (Gabrielsson et al., 2008; Loane and Bell, 2006). A passive network is the result of

initiative taken by another actor, such as a client, importer, intermediary or supplier (Ellis,

2000; Johanson and Vahlne, 2003), which can open up new opportunities in external

markets.

ii) Different types of network relationship to enter the international market

According to the network internationalization model (Johanson and Mattsson, 1988), the firm

can have relationships with various actors including clients, distributors, suppliers,

competitors, non profit-making organizations, public bodies, etc. The different types of

network relationships to enter external markets can be divided into formal, informal (Coviello

and Martin, 1999; Westphal et al., 2006; Fernhaber and Li, 2013), and intermediary (Havila

et al., 2004; Oviatt and McDougall, 2005). Various contradictory opinions have existed about

the definition of these terms, but the current literature accepts that formal relationships are

related to business activities between two or more actors in a network, while informal ones

are related to personal relationships between friends or family (Coviello, 2006; Westphal et

al., 2006; McCann and Foita, 2011). Then again, other authors (e.g., Ellis and Pecotoich,

2001; Oviatt and McDougall, 2005) have indicated the importance of intermediary

relationships, where there is no direct contact between buyer and seller, but rather an

intermediary, i.e., a third actor who facilitates the formation of a relationship between them.

iii) Influence on network relationships on the way of entering international markets

Various studies related to companies’ internationalization (Johanson and Mattsson, 1988;

Moen et al., 2004; Zain and Ng, 2006; Fernhaber and Li, 2013) indicate that networks have a

strong impact on the choice of market and/or the form of entry. These studies seem to agree

that these firms enter markets that are geographically and/or psychologically (language,

cultural matters, historical relationship, etc) closer, based on their network relationships.

Studies by Coviello and Munro (1995, 1997) concluded that informal and formal networks

facilitate in the first place entry to markets that are psychologically closer as well as the

respective choice of how to enter, results also found in other studies by Coviello and Martin

(1999) and Moen et al. (2004).

iv) Importance of social networks for SME internationalization

Some researchers (Chetty and Wilson, 2003; Lenchner and Dowling, 2003) have highlighted

the importance of social relationships in SME networks. These social relationships give

SMEs access to information, financial resources and other networks, besides improving their

reputation.

Networks are important for identifying opportunities during the internationalization process

(Johanson and Vahlne, 2006). Several studies have pointed out that SMEs depend on

network relationships and contacts to learn more about internationalization, whether in

choosing the form of entry, acquiring information about new markets or acquiring resources

for that process (Chetty and Wilson, 2003).

Pittaway et al. (2004) identified six benefits companies can obtain from their networks: (1)

risk-sharing; (2) access to new markets and technologies; (3) rapid commercialization; (4)

access to complementary assets; (5) protection of ownership rights; and (6) access via the

network to external knowledge.

Different forms of network cooperation can be strengthened for internationalization, when

they count on support from sector or government entities. According to Chen and Chen

(1998), the integration of organizations and government policies has a key role in supporting

and stimulating the internationalization process.

Government initiatives and support to promote and facilitate SME access to

internationalization through programmes often carried out in partnership with the regulatory

bodies of the sector the firm belongs to, such as what happens with firms in the Vinho Verde

sector through the Commission of Wine-Producers in the Vinho Verde Region (CVRVV),

allows the formation of networks to exploit opportunities in international markets (Johanson

and Vahlne, 2006).

The internationalization process of SMEs is an important aspect, as it helps to lessen

financial difficulties and give access to another type of resources, besides allowing the

sharing of experiences and consolidating trust (Lu and Beamish, 2001). Network

relationships have various effects on the internationalization process, and frequently allow

initiation stimulating firms’ intentions to internationalize (Chetty and Patterson, 2002; Ellis,

2000), encourage the company decision in selecting markets (Coviello and Munro, 1995),

help firms decide how to enter (Johansson and Vahlne, 2003; Chen, 2003), give access to

additional relationships and more suitable channels (Chetty and Patterson, 2002; Welch,

1992), increase knowledge of the local market (Coviello and Munro, 1995), allow acquisition

of the initial trust of the other actors (Chetty and Patterson, 2002; Coviello and Munro, 1995),

reduce the costs and risk of internationalization (Chetty and Patterson, 2002; Ellis and

Pecotich, 2001), make internationalization faster (Coviello and Munro, 1995) and letll the firm

expand to take greater advantage of market opportunities (Coviello and Munro, 1995).

3. METHODOLOGY

3.1. Type of study and case selection

This study aims to analyze the relationship between management models and

internationalization using the network perspective. Therefore, following the suggestions of

Eisenhardt (1989) and Yin (1994), the case study, as a strategy of qualitative research, was

used here due to its exploratory nature. Eisenhardt (1989) argues that the case study

method allows the study of patterns that may be common, also allowing explanation of the

meaning of the cause/effect relationship in the phenomenon examined (Yin, 1994).

A case was chosen for this study, a network made up of several actors/partners:

CVRVV – promoter of the internationalization programme in the USA.

Local importers and distributors in the USA.

Local Agency in the USA.

Three Portuguese SMEs, producers and distributors of vinho verde.

The three producer SMEs chosen (Firms A, B and C) satisfied the following criteria: (1) firms

situated in Portugal in the Vinho Verde Region, (2) part of their strategy is to sell their

products in the US market and (3) they are producers and distributors of Vinho Verde. This

study also analyzed the role of the CVRVV in the internationalization process.

The three producer firms were selected by the CVRVV, since initially one firm refused to

participate in the study and was substituted by another. The criteria for choosing the three

firms were established together with the CVRVV, to be as wide-ranging as possible.

As for the three SMEs selected, one is successful in the market and has been present in the

USA for quite some time (Firm A), one has tried to enter the market, but unsuccessfully (Firm

B), and another successful firm, but only recently present in the US market (Fir C).

3.2. Context of analysis of the study

In this study, Portugal was chosen as the country of origin, due to its small economy with a

very limited domestic market allied to motives of logistics in accessing the firms. The

destination country chosen was the USA as it is one of the main wine-consuming markets in

the world, and forecast to become the biggest if the current growth in consumption per capita

and the number of North American consumers (on average 5 million new consumers each

year) is maintained. In terms of consumption per capita, it occupies the 38th position1, still far

from the figures found in Europe, particularly in countries like Italy, Spain, France and

Portugal (Table 1).

1 Table 1- Wine consumption per capita

Table 1- wine consumption per capita

Source: U.S. Wine Market 2005

Note: the positions do not correspond to the ranking

3.3. Data-gathering instruments and analysis/organization

As the main data-gathering source, this study adopted the interview and documentary

analysis. Accordingly, each of the three SMEs studied and the CVRVV were contacted by e-

mail to arrange a semi-structured interview to be held on the premises of each organization.

The interviews were with the managers responsible for the US market, each of them

occupying a top management position within the firm.

With the open semi-structured interview, it was possible to ask the main questions, leaving

space for other more detailed ones (Yin, 1994). Initially, the interviewees were asked to give

a general description of the business and then, in particular, in the US market. Based on the

general information, they were also asked for more detailed information on entry to the US

market.

The questions were divided into topics: (1) the firm’s activity and the network process for

entry to the US market, (2) important events, people, firms and organizations that influenced

entry and deciding how to enter the USA, (3) the importance of the US market for the firm’s

products, and (4) the impact of other actors on entry to the market and deciding how to enter

the USA. All these topics were developed according to the guidelines of Yin(1994), trying to

ask objective questions, in this way allowing the interviewees to give the most authentic

answers possible.

Country Wine consumption

per capita

France 54.7

Italy 49.3

Portugal 47.6

Spain 33.8

Argentina 28.5

United Kingdom 22.0

USA 11.5

The interviews, lasting around 90 to 120 minutes, were digitally recorded and listened to with

great attention, transcribing the main ideas. In the case of any doubt, e-mail and the

telephone were used for clarification. Other sources were also used for comparison

(triangulation), such as websites, social networks and diverse information about the firms

studied.

In data analysis, the orientations of Eisenhardt (1989) and Yin (1994) were followed. All the

firms/partners/actors were analyzed as individual cases, with individual patterns being

identified and then categorized as a whole by topics.

In the process of analyzing each firm, the activity of the network relationship was classified

as active or passive according to the network internationalization model (Johanson and

Mattson, 1988). If the firm took the network initiative for the process of market entry, this was

classified as active. If the initiative was taken outside the firm, this was classified as having a

passive attitude. The network relationships used for market entry were categorized as formal,

informal and intermediary, and were based on the principal relationship, i.e., on the most

important contact (key element) which opened the path to entering the US market.

4. CASE STUDY: RESULTS

4.1 Characterization of Actors/Organizations

A brief characterization of the three SMEs forming the network studied can be seen in the

following table.

Table 2 – own elaboration /Key information about the firms of the case study

Firm First year of

activity

First year of

internationalization

Year of entry

to the USA

Form of

entry

Key element

in the USA

A 1986 2000 2007 Exporting Importer

B 2003 2006 - - -

C 1971 2007 2010 Exporting Importer

CVRVV2 1926 1980

3 2004 Promotion Via associates

2 The CVRVV does not export directly. It intermediates and facilitates the internationalization process of its associates. 3 Exports already existed. Vinho Verde was the first Portuguese wine to be exported. Active, planned and organized initial year of promotion.

4.2 Network approach adopted by the firms analyzed

The approach adopted can be described as passive or active. None of the three producer

firms analyzed have a direct presence in the US market, with firms A and C being

represented through importers. Of the three firms studied, two (A and C) were actively

developing their networks so as to improve their opportunities in the US market. This is

essentially to do with the size of the US market and the legalities of distribution and

commercialization logistics, known as “Three Tier”, with three intermediaries: Importer,

Distributor and Retailer, this being the legal circuit followed until the product reaches the final

consumer. Firms A and C, are present in the US market through active development of a

relationship network already formed but still developing in the search for new business

opportunities. It has already given very positive results, managing to achieve sustained

growth since the beginning of internationalization in the USA. As the US market is vast with

its own characteristics differing from one state to another4, these two firms established both

formal and informal partnerships on entering, in this way helping the consolidation of those

networks for future development of new business. The firms established and built partnership

networks benefiting from programmes carried out by the CVRVV to spread awareness of

Vinho Verde, with the contacts obtained and developed being vital for their successful

presence in this market, and also for consolidation to be able to take advantage of new

business opportunities. It is of note that firms A and C also occasionally used other

programmes outside the scope of the CVRVV, namely those of ViniPortugal5. The

interviewee from firm A stated that “… we are present in all the initiatives and programmes

developed by the CVRVV. We also use other programmes from other bodies….the contacts

obtained in these actions are fundamental for a successful presence in the US market.”

As for firm B, even using programmes promoted by the CVRVV, it has not yet been able to

establish formally or informally a network of contacts that would allow it to enter the US

market. This SME has shown a more passive attitude in waiting for possible contacts from

interested parties. Recently, a more definite new opportunity has arisen, benefiting from a

partnership programme developed by the CVRVV, in the form of various US importers

travelling to visit the Vinho Verde region. The manager says that “ … this time,

internationalization will definitely progress…an opportunity emerged to re-establish relations

4 One of the interviewees indicated “that each state is a country, the USA being a country made up of another 50 small countries “ 5 ViniPortugal is the inter-professional association of the Wine-producing sector and the managing body of the Wines of Portugal brand.

with a former contact….it’s an importer who was in Portugal recently as part of a programme

of visits to the Vinho Verde region by US importers, promoted by the CVRVV”. In this case,

initiation of entry to the US market also emerges from a previous contact the manager had

(informal relationship), and confirms the more passive attitude of this firm.

Concerning the existence of informal networks between the competing firms themselves in

terms of exchanging contacts, information about possible partners, division of transport costs

and stays in the USA, the manager of firm B says that “…we had a first experience between

three producers of vinho verde sharing a stand in the Expo Vinhos in Brazil, which went

extremely well…”. The manager of firm A says that “…increasingly, there is a greater share

of information and resources among the competitors themselves, even of the cost of hotels

when travelling…”

4.3 Key element of the network relationship

The results of the network (case) study, involving the three producer firms and the CVRVV,

revealed that entry to the US market was facilitated by formal, informal and intermediary

relationships.

Firm A has used its formal relationships such as its importer, which has allowed it to expand

and take advantage of new business opportunities. The manager of this firm states “ …a lot

of work is organized together with our importer in awareness actions for our product, which

has helped us to achieve better results…”.

It should be noted that for firm C, the interviewee stressed the importance of the network that

has been created, giving examples of clients who recommend them to potential new clients,

through their informal network of contacts “…we have had sustained growth largely thanks to

our relationships, our clients recommend us a lot, which has allowed us to get new clients

based on these recommendations…”, which agrees with the conclusions of Johanson and

Mattsson (1988) who state that business in an international context is based on network

assumptions.

All the firms analyzed also opted, at the various stages, to take advantage of the

intermediary relationship to enter the market, largely due to the US legal system, using the

importer, which has not prevented active work in promoting their products in the various

existing commercialization networks, in conjunction with importers and distributors.

The existing partnership with the CVRVV, through adhering to the programmes of

internationalization and promotion of Vinho Verde in the US market, has revealed itself to be

extremely important, in this way allowing a kind of consultancy for identifying potential

importers and distributors for their products, for which the CVRVV has used a partnership

with a local agency in the USA.

4.4 Influence of network relationships for entry to the US market.

The firms analyzed indicate that the different types of network relationships had only a limited

influence in choosing the USA and the respective form of entry. Irrespective of the choice of

country, the SMEs studied mentioned they had previously decided for strategic reasons to

enter the US market, even before deciding to look for a network of contacts and relationships

that would allow them to fulfil this objective. The choice of country was partly influenced by

the actions carried out in partnership with the CVRVV, although firm A had already made this

decision autonomously.

For firms B and C, the size of the US market was one of the principal indicators for choosing

it. The form of entry for firms A and C was through importers found in the programmes

developed in partnership with the CVRVV.

Finally, the importance of internationalization for the firms in this sector is confirmed. The

manager of firm A stated that “…no, I don’t believe that the firm would be viable without the

international market, we have been making major investment to improve our response

capacity…”, while the manager of firm B underlined that “...no, without internationalization,

the firm would not be viable….”.

5. DISCUSSION, CONCLUSIONS AND IMPLICATIONS

This study contributes to the network internationalization model (Johanson and Mattsson,

1988) through recognizing the importance of network activity in the internationalization of

SMEs in the area of Vinho Verde.

As is confirmed through carrying out this study, two of the three firms actively developed

relationships or used existing contacts to identify opportunities and achieve entry to the US

market. These conclusions contradict some studies that find firms follow their informal and

formal networks reactively to enter foreign markets (Bell, 1995; Coviello and Martin, 1999,

Moen et al, 2004; Zain and Ng, 2006).

The results obtained are consistent with other studies (Coviello, 2006; Westphal et al., 2006;

Ojala, 2008), which suggest that formal and informal relationships facilitate the

internationalization of SMEs.

The empirical evidence also agrees with the work of Havila et al. (2004), who find firms use

triadic relationships, where there are no commercial transactions between the buyer and the

intermediary or between the seller and the intermediary, an aspect found in this study in the

relationship between the three actors: firm, CVRVV and importer. The part played by the

CVRVV, as a partner and intermediary, is therefore highlighted in this process, underlining

the importance of non profit-making organizations in supporting and facilitating SME entry to

international markets, giving empirical support to the conceptual study of the importance of

the role of non-commercial organizations by Christensen and Lindmark (1993).

5.1 Theoretical and practical implications

From the point of view of management and strategy, relationships through intermediaries are

a valuable resource for SMEs that do not have an informal or formal relationship network

able to facilitate entry to international markets, especially when significant physical and

psychological differences are involved. These firms can use non profit-making or sector

organizations to enter those markets, using their contact networks and partnerships in the

intended country.

It is demonstrated that managers should actively develop their relationship and partnership

network, to allow entry to the intended markets. On the other hand, if the firm adopts a

passive attitude in following its network regarding international markets, it may lose market

opportunities and eventually be unsuccessful in its strategy of internationalization in these

same markets.

5.2. Limitations and suggestions for the future

The limitations of this study have to do with focusing on a single industry and a single

country, and so the results of the qualitative study may not be completely open to

generalization. It must be remembered that the US market has its own characteristics and

that the markets differ from one to another considerably (Ronen and Shenkar, 1985). The

Vinho Verde market has its own characteristics due to its very nature, and so the results of

this study require future validation in other industries and markets. The existing relationships

were neither validated nor confirmed with the other actors involved (importer and agency in

the USA), this being an aspect to explore in future research.

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