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Adapting to foreign markets: Explaining internationalization

  • Calof, Jonathan L.
  • Beamish, Paul W.
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    While much is known about the factors associated with the choice of an individual mode of distribution (e.g. export, sales branch, wholly owned production), we know little about why firms change modes and what explains the pattern of mode change. After interviewing 76 executives from 38 firms regarding 139 mode changes, that which best explained mode change was a modified stages model. Mode change tended to arise following changes in (A) constraints (resources or regulation) or (B) perceptions of market and mode costs and benefits. The ensuing pattern of internalization -- whether de-investment, single step stages type investment or multi step incremental investment -- depended on the nature of the stimuli, the firm's level of resources, experience and international skills, and the extent to which attitudes changed.

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    File URL: http://www.sciencedirect.com/science/article/pii/096959319500001G
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    Article provided by Elsevier in its journal International Business Review.

    Volume (Year): 4 (1995)
    Issue (Month): 2 (June)
    Pages: 115-131

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    Handle: RePEc:eee:iburev:v:4:y:1995:i:2:p:115-131
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    1. Cavusgil, S. Tamer, 1984. "Differences among exporting firms based on their degree of internationalization," Journal of Business Research, Elsevier, vol. 12(2), pages 195-208, June.
    2. Jonathan L Calof, 1994. "The Relationship Between Firm Size and Export Behavior Revisited," Journal of International Business Studies, Palgrave Macmillan, vol. 25(2), pages 367-387, June.
    3. Jan Johanson & Jan-Erik Vahlne, 1977. "The Internationalization Process of the Firm—A Model of Knowledge Development and Increasing Foreign Market Commitments," Journal of International Business Studies, Palgrave Macmillan, vol. 8(1), pages 23-32, March.
    4. Stephen J Kobrin, 1994. "Is There a Relationships Between a Geocentric Mind-Set and Multinational Strategy?," Journal of International Business Studies, Palgrave Macmillan, vol. 25(3), pages 493-511, September.
    5. Calof, Jonathan L., 1993. "The mode choice and change decision process and its impact on international performance," International Business Review, Elsevier, vol. 2(1), pages 97-120.
    6. Warren J Bilkey & George Tesar, 1977. "The Export Behavior of Smaller-Sized Wisconsin Manufacturing Firms," Journal of International Business Studies, Palgrave Macmillan, vol. 8(1), pages 93-98, March.
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