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The Internalization of Exports: Firm- and Location-Specific Factors in a Middle-Income Country


  • José Campa

    (International Business Area, Stern School of Business, New York University, 44 West 4th Street, New York, New York 10012)

  • Mauro F. Guillén

    (Institute for Advanced Study, Princeton, New Jersey 08540 and The Wharton School, University of Pennsylvania, 2016 Steinberg Hall-Dietrich Hall, Philadelphia, Pennsylvania 19104-6370)


Firms make strategic choices about foreign market access on the basis of location factors in the home and export countries, as well as on their ownership advantages. The empirical analysis is based on a sample of 837 manufacturing companies in a typical middle-income country (Spain), in which firms are starting to internationalize through investments or alliances in distribution. Following theoretical expectations, the greater the level of such ownership factors as intangible technological assets, product variability, and resource availability, the higher the likelihood of internalization, and in particular internalization by proprietary distribution instead of by commercial alliance. But most importantly, location factors in the home country and in the export market have an independent effect on the likelihood and mode of internalization. Proprietary distribution channels are preferred when the firm's competitors are based in richer countries than the home country, and when the export market is well known to the firm.

Suggested Citation

  • José Campa & Mauro F. Guillén, 1999. "The Internalization of Exports: Firm- and Location-Specific Factors in a Middle-Income Country," Management Science, INFORMS, vol. 45(11), pages 1463-1478, November.
  • Handle: RePEc:inm:ormnsc:v:45:y:1999:i:11:p:1463-1478

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    References listed on IDEAS

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    Cited by:

    1. Subramanian Rangan & Metin Sengul, 2009. "Information technology and transnational integration: Theory and evidence on the evolution of the modern multinational enterprise," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 40(9), pages 1496-1514, December.
    2. repec:spr:manint:v:57:y:2017:i:3:d:10.1007_s11575-016-0287-6 is not listed on IDEAS
    3. Berrill, Jenny & Mannella, Giancarlo, 2013. "Are firms from developed markets more international than firms from emerging markets?," Research in International Business and Finance, Elsevier, vol. 27(1), pages 147-161.
    4. Aggarwal, Raj & Berrill, Jenny & Hutson, Elaine & Kearney, Colm, 2011. "What is a multinational corporation? Classifying the degree of firm-level multinationality," International Business Review, Elsevier, vol. 20(5), pages 557-577, October.
    5. repec:spr:epolin:v:44:y:2017:i:3:d:10.1007_s40812-016-0061-6 is not listed on IDEAS
    6. repec:eee:ejores:v:262:y:2017:i:1:p:163-179 is not listed on IDEAS
    7. Hanh Vu Thi, 2015. "Essays on the Export Performance of Vietnam/Essais sur la Performance à l'Exportation du Vietnam," ULB Institutional Repository 2013/216765, ULB -- Universite Libre de Bruxelles.
    8. Gaffney, Nolan & Karst, Rusty & Clampit, Jack, 2016. "Emerging market MNE cross-border acquisition equity participation: The role of economic and knowledge distance," International Business Review, Elsevier, vol. 25(1), pages 267-275.
    9. Quer, Diego & Claver, Enrique & Andreu, Rosario, 2007. "Foreign market entry mode in the hotel industry: The impact of country- and firm-specific factors," International Business Review, Elsevier, vol. 16(3), pages 362-376, June.
    10. Li, Min & He, Xinming & Sousa, Carlos M.P., 2017. "A review of the empirical research on export channel selection between 1979 and 2015," International Business Review, Elsevier, vol. 26(2), pages 303-323.
    11. García, Francisco & Avella, Lucía & Fernández, Esteban, 2012. "Learning from exporting: The moderating effect of technological capabilities," International Business Review, Elsevier, vol. 21(6), pages 1099-1111.
    12. repec:spr:manint:v:51:y:2011:i:6:d:10.1007_s11575-011-0103-2 is not listed on IDEAS


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