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Domestic Activity and Knowledge Development in the Internationalization Process of Firms

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Author Info

  • Anders Blomstermo
  • Kent Eriksson

    ()

  • D. Deo Sharma

    ()

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    Abstract

    This paper is based on behavioral theory on internationalization, examining the effect of firms operations in the domestic market on experiential knowledge development in the internationalization of the firm. Five hypotheses are developed on the effects of business operations in the domestic market on: internationalization knowledge, business knowledge and institutional knowledge. The LISREL analysis of 206 firms shows that domestic operations effect the accumulation of experiential knowledge in internationalizing firms. We found that it is harder for a firm with long domestic experience to change their mental models and processes in the internationalization process.

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    Bibliographic Info

    Article provided by Springer in its journal Journal of International Entrepreneurship.

    Volume (Year): 2 (2004)
    Issue (Month): 3 (09)
    Pages: 239-258

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    Handle: RePEc:kap:jinten:v:2:y:2004:i:3:p:239-258

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    Web page: http://www.springerlink.com/link.asp?id=112039

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    Cited by:
    1. Figueira-de-Lemos, Francisco & Johanson, Jan & Vahlne, Jan-Erik, 2011. "Risk management in the internationalization process of the firm: A note on the Uppsala model," Journal of World Business, Elsevier, vol. 46(2), pages 143-153, April.
    2. Casillas, José C. & Moreno, Ana M. & Acedo, Francisco J. & Gallego, María A. & Ramos, Encarnación, 2009. "An integrative model of the role of knowledge in the internationalization process," Journal of World Business, Elsevier, vol. 44(3), pages 311-322, July.
    3. Prange, Christiane & Verdier, Sylvie, 2011. "Dynamic capabilities, internationalization processes and performance," Journal of World Business, Elsevier, vol. 46(1), pages 126-133, January.
    4. Zhou, Lianxi & Wu, Aiqi, 2014. "Earliness of internationalization and performance outcomes: Exploring the moderating effects of venture age and international commitment," Journal of World Business, Elsevier, vol. 49(1), pages 132-142.
    5. Andreea Kiss & Wade Danis, 2010. "Social networks and speed of new venture internationalization during institutional transition: A conceptual model," Journal of International Entrepreneurship, Springer, vol. 8(3), pages 273-287, September.
    6. Gassmann, Oliver & Keupp, Marcus Matthias, 2007. "The competitive advantage of early and rapidly internationalising SMEs in the biotechnology industry: A knowledge-based view," Journal of World Business, Elsevier, vol. 42(3), pages 350-366, September.

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