The Gotheborg IV (G4) Model and the Function of Language in the Globalization Process of the Firm

Abstract

This chapter contributes to the theory of a firm's globalization processes reflected in the Uppsala Globalization Process Model (UGPM). The Gotheborg IV (G4) model is introduced, mapping the knowledge zones of the UGPM in a four quadrant axis model. Using language in its meta-capacity as theory and framework of analysis the G4 model makes a distinction between the words ‘enterprise' (Hn) and ‘subsidiary' (H1), addressing the core features of firm globalization with geographically dispersed foreign subsidiaries and globally coordinated activities of manufacturing, sourcing and R&D capabilities. With the distinction between Hn and H1, the G4 model is able to present eight perspectives of the globalization process from interior and exterior to the enterprise and subsidiary. As method, this chapter will show how using the G4 model results in a richer analysis and findings from qualitative data. In this study Swedish top-level managers working in Asia show how they foster an organization culture of continuous learning and change that supports the MNE's globalization efforts.