Explaining gradually increasing resource commitment to a foreign market
A large number of studies has examined the pattern of firms' internationalization in terms of the sequence by which a firm introduces various operation methods to a foreign market. With few exceptions, the studies seek to establish whether or not the observed patterns of internationalization are 'incremental'. Looking at the internationalization process in relation to the firms' resource commitment to foreign markets, the point taken in this study is that the internationalization process of any firm will display some element of 'incrementalism'. However, the pace by which firms commit resources may differ substantially. By looking at the pace of commitment instead of the pattern ('the establishment chain') the study leaves behind the crude dichotomy of incremental-versus-instantaneous resource commitment to a foreign market. Instead, the focus of the study is on the factors which hold the potential of explaining the pace of resource commitment to a foreign market. LISREL algorithm results, based on retrospective observations of 165 Danish companies' involvement in one specific foreign market, confirm that the companies' internal accumulation of foreign market knowledge is a determinant of pace of commitment. But the empirical analyses also suggest that the inclusion of other internal and external factors provide a more complete explanation of the pace by which a firm commits resources to foreign markets.
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.
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.
Volume (Year): 7 (1998)
Issue (Month): 5 (October)
|Contact details of provider:|| Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/133/description#description|
|Order Information:|| Postal: http://www.elsevier.com/wps/find/journaldescription.cws_home/133/bibliographic|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Andrea Bonaccorsi, 1992. "On the Relationship Between Firm Size and Export Intensity," Journal of International Business Studies, Palgrave Macmillan, vol. 23(4), pages 605-635, December.
- W Chan Kim & Peter Hwang, 1992. "Global Strategy and Multinationals' Entry Mode Choice," Journal of International Business Studies, Palgrave Macmillan, vol. 23(1), pages 29-53, March.
- Michel Ghertman, 1988. "Foreign Subsidiary and Parents' Roles During Strategic Investment and Divestment Decisions," Journal of International Business Studies, Palgrave Macmillan, vol. 19(1), pages 47-67, March.
- Roland Artle & Sture Berglund, 1959. "A Note on Manufacturers' Choice of Distribution Channels," Management Science, INFORMS, vol. 5(4), pages 460-471, July.
- Calof, Jonathan L. & Beamish, Paul W., 1995. "Adapting to foreign markets: Explaining internationalization," International Business Review, Elsevier, vol. 4(2), pages 115-131, June.
- 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.
When requesting a correction, please mention this item's handle: RePEc:eee:iburev:v:7:y:1998:i:5:p:483-501. 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: (Zhang, Lei)
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.