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Resource Commitment to Foreign Markets: Within Mode Changes and Mode Additions

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Author Info
Petersen, Bent (Department of International Economics and Management, Copenhagen Business School)
Welch, Lawrence S. (Norwegian School of Management)
Nielsen, Kim V. (PA Consulting)
Abstract

A key element of the internationalization process theory of the firm is the incremental accumulation of knowledge and skills regarding foreign markets and international operations in general. However, studies of internationalization patterns have tended to focus on foreign operation mode (or, entry mode)use, which is a relatively broad, even crude, indicator of the change process. In this paper we argue that, in order to more adequately depict and analyze the change process inherent in internationalization, there is a need to consider both within mode changes and mode additions. A study of the establishment pattern of Danish companies in South East Asia is used to illustrate a broader concept of foreign operation mode development which is perhaps closer to the original concept of incrementalism underlying some of the early studies of the internationalization process.

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File URL: http://openarchive.cbs.dk/cbsweb/handle/10398/6533
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Publisher Info
Paper provided by Copenhagen Business School, Department of International Economics and Management in its series Working Papers with number 8-1999.

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Length: 19 pages
Date of creation: 30 May 1999
Date of revision:
Handle: RePEc:hhb:cbsint:1999-008

Contact details of provider:
Postal: Department of International Economics and Management, Copenhagen Business School, Howitzvej 60, DK-2000 Frederiksberg, Denmark
Phone: +45 3815 2515
Fax: +45 3815 2500
Web page: http://www.cbs.dk/departments/int/
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Related research
Keywords: Internationalization process; within mode changes; mode additions.;

References listed on IDEAS
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  1. Vernon, Raymond, 1979. "The Product Cycle Hypothesis in a New International Environment," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 41(4), pages 255-67, November.
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This page was last updated on 2009-12-21.


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