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The internalisation of foreign distribution and production activities: New empirical evidence from Spain

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  • Pla-Barber, José

Abstract

This paper, using a logit model applied to a sample of 323 Spanish companies with international activities, analyses the key factors in the creation of sales and production subsidiaries. A high degree of fit between the results and the established hypotheses can be observed. Many interesting findings related to the main streams of entry mode research (Transaction Cost Theory and the Uppsala Model) have been supported. The intangibility and tacit nature of the products/processes involved in the foreign venture have been directly associated to wholly owned sales and production subsidiaries. Moreover, modes of entry used by Spanish firms are adapted as an incremental, experiential learning process. Finally, we did not find evidence of a relevant influence of global or multidomestic strategies on the participation of Spanish companies in international networks.

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  • Pla-Barber, José, 2001. "The internalisation of foreign distribution and production activities: New empirical evidence from Spain," International Business Review, Elsevier, vol. 10(4), pages 455-474, August.
    • Handle: RePEc:eee:iburev:v:10:y:2001:i:4:p:455-474
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    2. Frances Fabian & Henry Molina & Giuseppe Labianca, 2009. "Understanding Decisions to Internationalize by Small and Medium-sized Firms Located in an Emerging Market," Management International Review, Springer, vol. 49(5), pages 537-563, October.
    3. Nordman, Emilia Rovira & Tolstoy, Daniel, 2014. "Does relationship psychic distance matter for the learning processes of internationalizing SMEs?," International Business Review, Elsevier, vol. 23(1), pages 30-37.
    4. Pla-Barber, José & Alegre, Joaquín, 2007. "Analysing the link between export intensity, innovation and firm size in a science-based industry," International Business Review, Elsevier, vol. 16(3), pages 275-293, June.
    5. José A. Belso-Martínez, 2015. "Resources, Governance, and Knowledge Transfer in Spanish Footwear Clusters," International Regional Science Review, , vol. 38(2), pages 202-231, April.
    6. Dirk Morschett & Hanna Schramm-Klein & Bernhard Swoboda, 2008. "Entry Modes for Manufacturers’ International After-Sales Service: Analysis of Transaction-specific, Firm-specific and Country-specific Determinants," Management International Review, Springer, vol. 48(5), pages 525-550, November.
    7. Fonfara Krzysztof & Hauke-Lopes Aleksandra & Soniewicki Marcin, 2021. "Does Psychic Distance Still Matter? Empirical Evidence from Poland," Journal of Management and Business Administration. Central Europe, Sciendo, vol. 29(4), pages 32-56, December.

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