Advanced Search
MyIDEAS: Login

The Expansion of Foreign Direct Investments: Discrete Rational Location Choices or a Cultural Learning Process?

Contents:

Author Info

  • Gabriel R G Benito

    (�stfold College)

  • Geir Gripsrud

    (Norwegian School of Management)

Abstract

It is recognized in the literature that experience may affect the cost and the uncertainty of operating in foreign markets, and experience and market knowledge may therefore influence the location decisions of FDIs. Economic theory does not, however, predict a general expansion pattern of FDIs across industries. On the other hand, the theory associated with the “internationalization process” approach highlights the importance of cultural distance, and predicts a movement from “close” to more “distant” markets as more experience is acquired by the firm. The internationalization process approach is rooted in a behavioral theory of the firm.In this article two hypotheses are developed from the internationalization process approach regarding the location of FDIs. The database used for testing the hypotheses includes in principle all FDIs undertaken by Norwegian manufacturing companies up to the midyear 1982. Cultural distance is measured by an index developed by Kogut and Singh [1988]. No support is found for the notion that the first FDI in general takes place in culturally closer countries than later FDIs. Furthermore, for given companies, an expansion into more distant countries is not found as the number of investments increases.© 1992 JIBS. Journal of International Business Studies (1992) 23, 461–476

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.palgrave-journals.com/jibs/journal/v23/n3/pdf/8490275a.pdf
File Function: Link to full text PDF
Download Restriction: Access to full text is restricted to subscribers.

File URL: http://www.palgrave-journals.com/jibs/journal/v23/n3/full/8490275a.html
File Function: Link to full text HTML
Download Restriction: Access to full text is restricted to subscribers.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Bibliographic Info

Article provided by Palgrave Macmillan in its journal Journal of International Business Studies.

Volume (Year): 23 (1992)
Issue (Month): 3 (September)
Pages: 461-476

as in new window
Handle: RePEc:pal:jintbs:v:23:y:1992:i:3:p:461-476

Contact details of provider:
Web page: http://www.palgrave-journals.com/

Order Information:
Postal: Palgrave Macmillan Journals, Subscription Department, Houndmills, Basingstoke, Hampshire RG21 6XS, UK
Email:
Web: http://www.palgrave-journals.com/pal/subscribe/index.html

Related research

Keywords:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
This item has more than 25 citations. To prevent cluttering this page, these citations are listed on a separate page.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:pal:jintbs:v:23:y:1992:i:3:p:461-476. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Elizabeth Gale).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.