Foreign Production: The Weak Link in Tests of the Internationalization Process Model
This paper reviews empirical tests of two of the main implications of the internationalization model: that firms, as they gain international experience, enter markets of increasing psychic distance and that they enter a given market with successive entry modes that reflect increasing commitment. One problem with much of this literature is that it fails to control for economic variables that affect the choice of target market and that of entry mode. Another is the overemphasis on exports, and the relative neglect of foreign production. Yet, because it is more risky and less reversible, foreign production would seem to provide a better test of the model.
|Date of creation:||Jan 2004|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://aem.cornell.edu/
More information through EDIRC
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.:
- Stan D Reid, 1981. "The Decision-Maker and Export Entry and Expansion," Journal of International Business Studies, Palgrave Macmillan, vol. 12(2), pages 101-112, June.
- Ball, Clifford A. & Tschoegl, Adrian E., 1982. "The Decision to Establish a Foreign Bank Branch or Subsidiary: An Application of Binary Classification Procedures," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 17(03), pages 411-424, September.
- Davidson, William H., 1983. "Market similarity and market selection: Implications for international marketing strategy," Journal of Business Research, Elsevier, vol. 11(4), pages 439-456, December.
- 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.
- Warren J Bilkey, 1978. "An Attempted Integration of the Literature on the Export Behavior of Firms," Journal of International Business Studies, Palgrave Macmillan, vol. 9(1), pages 33-46, March.
- Gabriel R G Benito & Geir Gripsrud, 1992. "The Expansion of Foreign Direct Investments: Discrete Rational Location Choices or a Cultural Learning Process?," Journal of International Business Studies, Palgrave Macmillan, vol. 23(3), pages 461-476, September.
- John H Dunning, 1988. "The Eclectic Paradigm of International Production: A Restatement and Some Possible Extensions," Journal of International Business Studies, Palgrave Macmillan, vol. 19(1), pages 1-31, March.
When requesting a correction, please mention this item's handle: RePEc:ags:cudawp:127789. 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: (AgEcon Search)
If references are entirely missing, you can add them using this form.