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Experimental Knowledge and Costs in the Internationalization Process

Author

Listed:
  • Kent Eriksson

    (Uppsala University)

  • Jan Johanson

    (Uppsala University)

  • Anders Majkgård

    (Uppsala University)

  • D Deo Sharma

    (Umeå Business School)

Abstract

Using a behavioral approach, this study identifies and delineates components of experiential knowledge in the internationalization process. Three hypotheses are developed and tested. They center around the lack of knowledge in the areas of foreign business, foreign institutions and firm internationalization, as well as the effect that this lack of knowledge has on managers' perceived cost in the internationalization process. With the help of a LISREL-based structural model, the three hypotheses are tested on a sample of 362 service firms. The analysis shows that lack of internationalization knowledge has a strong impact on the lack of both business and institutionalization. But there is no direct effect of lack of internationalization knowledge on perceived cost of internationalization.© 1997 JIBS. Journal of International Business Studies (1997) 28, 337–360

Suggested Citation

  • Kent Eriksson & Jan Johanson & Anders Majkgård & D Deo Sharma, 1997. "Experimental Knowledge and Costs in the Internationalization Process," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 28(2), pages 337-360, June.
    • Handle: RePEc:pal:jintbs:v:28:y:1997:i:2:p:337-360
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