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The process of internationalization in the operating firm

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  • Clark, Timothy
  • Pugh, Derek S.
  • Mallory, Geoff

Abstract

Two factors have been emphasised as influencing the choice of, and subsequent shifts between, modes of foreign market servicing: (1) market-specific knowledge; and (2) the generalised knowledge from operating internationally. The process-oriented literature on internalisation has tended to emphasise the former over the latter. This article maintains that market-specific knowledge is not the only source of information available to a firm. As firms operate in foreign markets they develop, in addition to networks of institutional arrangements, a knowledge of the process of internationalization. Account therefore has to be taken of the general knowledge from operating internationally in understanding the development of institutional arrangements in foreign markets. Consequently, the appropriate unit of analysis is not the individual market but the operating firm as a whole. This argument is illustrated with reference to an empirical study of the internationalization of 25 UK-based organizations.

Suggested Citation

  • Clark, Timothy & Pugh, Derek S. & Mallory, Geoff, 1997. "The process of internationalization in the operating firm," International Business Review, Elsevier, vol. 6(6), pages 605-623, December.
    • Handle: RePEc:eee:iburev:v:6:y:1997:i:6:p:605-623
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    References listed on IDEAS

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    Cited by:

    1. Gabriel R. G. Benito & Bent Petersen & Lawrence S. Welch, 2011. "Mode Combinations and International Operations," Management International Review, Springer, vol. 51(6), pages 803-820, December.
    2. Gabriel R.G. Benito & Torben Pedersen & Bent Petersen, 2005. "Export channel dynamics: an empirical investigation," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 26(3), pages 159-173.
    3. Araujo, Luis & Rezende, Sergio, 2003. "Path dependence, MNCs and the internationalisation process: a relational approach," International Business Review, Elsevier, vol. 12(6), pages 719-737, December.
    4. Petersen, Bent & Welch, Lawrence S., 2002. "Foreign operation mode combinations and internationalization," Journal of Business Research, Elsevier, vol. 55(2), pages 157-162, February.
    5. Petersen, Bent & Welch, Lawrence S., 1999. "Foreign Operation Mode Combinations and Internationalization," Working Papers 6-1999, Copenhagen Business School, Department of International Economics and Management.
    6. Swoboda, Bernhard & Olejnik, Edith & Morschett, Dirk, 2011. "Changes in foreign operation modes: Stimuli for increases versus reductions," International Business Review, Elsevier, vol. 20(5), pages 578-590, October.
    7. Asmussen, Christian G. & Benito, Gabriel R.G. & Petersen, Bent, 2009. "Organizing foreign market activities: From entry mode choice to configuration decisions," International Business Review, Elsevier, vol. 18(2), pages 145-155, April.
    8. O'Higgins, Ciara & Andreeva, Tatiana & Goya, Nekane Aramburu, 2022. "The hows and whys of foreign operation mode combinations: The role of knowledge processes," Journal of World Business, Elsevier, vol. 57(2).
    9. Putzhammer, Moritz & Puck, Jonas & Lindner, Thomas, 2020. "Changes in foreign operation modes: A review and research agenda," International Business Review, Elsevier, vol. 29(1).
    10. Putzhammer, Moritz & Fainshmidt, Stav & Puck, Jonas & Slangen, Arjen, 2018. "To elevate or to duplicate? Experiential learning, host-country institutions, and MNE post-entry commitment increase," Journal of World Business, Elsevier, vol. 53(4), pages 568-580.
    11. Park, Sarah & LiPuma, Joseph A., 2020. "New venture internationalization: The role of venture capital types and reputation," Journal of World Business, Elsevier, vol. 55(1).
    12. Petersen, Bent & Welch, Lawrence S. & Nielsen, Kim V., 1999. "Resource Commitment to Foreign Markets: Within Mode Changes and Mode Additions," Working Papers 8-1999, Copenhagen Business School, Department of International Economics and Management.
    13. Ferdinand, Nicole & Williams, Nigel L., 2013. "International festivals as experience production systems," Tourism Management, Elsevier, vol. 34(C), pages 202-210.
    14. Gabriel R G Benito & Bent Petersen & Lawrence S Welch, 2019. "The global value chain and internalization theory," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(8), pages 1414-1423, October.
    15. Fuentelsaz, Lucio & Garrido, Elisabet & González, Minerva, 2020. "Ownership in cross-border acquisitions and entry timing of the target firm," Journal of World Business, Elsevier, vol. 55(2).
    16. Manuel A. Rivera & Kelly J. Semrad & Robertico Croes, 2016. "The internationalization benefits of a music festival," Tourism Economics, , vol. 22(5), pages 1087-1103, October.
    17. Irina Surdu & Henrich R. Greve & Gabriel R. G. Benito, 2021. "Back to basics: Behavioral theory and internationalization," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 52(6), pages 1047-1068, August.
    18. Blomstermo, Anders & Eriksson, Kent & Lindstrand, Angelika & Sharma, D. Deo, 2004. "The perceived usefulness of network experiential knowledge in the internationalizing firm," Journal of International Management, Elsevier, vol. 10(3), pages 355-373.

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