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An Empirical Investigation of the Role of Industry Factors in the Internationalization Patterns of Firms

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  • Birgitte Grøgaard
  • Carmine Gioia
  • Gabriel R. G. Benito

Abstract

Research on companies' internationalization has mainly focused on firm-level and country-level factors in order to explain firms' cross-border activities. With the exception of a limited number of studies emphasizing rivalrous behavior in oligopolistic industries, industry factors have been neglected as potential determinants of companies' internationalization. We argue that differences across industries with regard to concentration, research intensity, tangibility of the products, and the existence of clusters should influence the impetus and opportunities to internationalize. This study examines the role of such factors using panel data covering the internationalization patterns of the 100 largest nonfinancial Norwegian companies over the period 1990 to 2000. We find that even for firms in a small, open, advanced economies where the limited market size in itself motivates firms to internationalize, industry factors still contribute significantly to explaining the internationalization of these companies. Furthermore, the effects of industry factors remain strong when firm-level characteristics are taken into account.

Suggested Citation

  • Birgitte Grøgaard & Carmine Gioia & Gabriel R. G. Benito, 2013. "An Empirical Investigation of the Role of Industry Factors in the Internationalization Patterns of Firms," International Studies of Management & Organization, Taylor & Francis Journals, vol. 43(1), pages 81-100, January.
  • Handle: RePEc:taf:mimoxx:v:43:y:2013:i:1:p:81-100
    DOI: 10.2753/IMO0020-8825430104
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    Cited by:

    1. Muhammad Imran Qureshi & Saquib Yusaf Janjua & Khalid Zaman & Mohammad Saeed Lodhi & Yasir Bin Tariq, 2014. "Internationalization of higher education institutions: implementation of DMAIC cycle," Scientometrics, Springer;Akadémiai Kiadó, vol. 98(3), pages 2295-2310, March.
    2. Rishika Nayyar & Rajdeepa Maity, . "Overcoming institutional voids in the home country for internationalization: an exploratory examination of institutional strategies of Indian MNEs," UNCTAD Transnational Corporations Journal, United Nations Conference on Trade and Development.
    3. Zilja, Flladina & Benito, Gabriel R.G. & Boustanifar, Hamid & Zhang, Dan, 2023. "CEO wealth and cross-border acquisitions by SMEs," International Business Review, Elsevier, vol. 32(6).
    4. Panikos Georgallis & João Albino-Pimentel & Nina Kondratenko, 2021. "Jurisdiction shopping and foreign location choice: The role of market and nonmarket experience in the European solar energy industry," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 52(5), pages 853-877, July.
    5. Abrar Ali Saiyed & Stephanie A. Fernhaber & Rakesh Basant & Karthik Dhandapani, 2021. "The internationalization of new ventures in an emerging economy: The shifting role of industry concentration," Asia Pacific Journal of Management, Springer, vol. 38(4), pages 1467-1497, December.
    6. Oh, Chang Hoon & Kim, Minyoung & Shin, Jiyoung, 2019. "Paths and geographic scope of international expansion across industries," International Business Review, Elsevier, vol. 28(3), pages 560-574.
    7. A. Volkova I. & I. Karachev A. & А. Волкова И. & И. Карачев А., 2016. "Факторы Роста Экспортного Потенциала Малого Инновационного Предприятия // Export Potential Growth Factors For A Small Innovative Enterprise," Финансы: теория и практика/Finance: Theory and Practice // Finance: Theory and Practice, ФГОБУВО Финансовый университет при Правительстве Российской Федерации // Financial University under The Government of Russian Federation, vol. 20(6), pages 31-38.
    8. Sergio Mariotti & Riccardo Marzano, 2019. "Varieties of capitalism and the internationalization of state-owned enterprises," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(5), pages 669-691, July.
    9. Elena Sapir & Igor Karachev & Mingzhu Zhang, 2016. "Russian Pharmaceutical Companies Export Potential in Emerging Regional Clusters," Economy of region, Centre for Economic Security, Institute of Economics of Ural Branch of Russian Academy of Sciences, vol. 1(4), pages 1194-1204.

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