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Domestic Activity and Knowledge Development in the Internationalization Process of Firms

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  • Anders Blomstermo
  • Kent Eriksson
  • D. Deo Sharma

Abstract

This paper is based on behavioral theory on internationalization, examining the effect of firms operations in the domestic market on experiential knowledge development in the internationalization of the firm. Five hypotheses are developed on the effects of business operations in the domestic market on: internationalization knowledge, business knowledge and institutional knowledge. The LISREL analysis of 206 firms shows that domestic operations effect the accumulation of experiential knowledge in internationalizing firms. We found that it is harder for a firm with long domestic experience to change their mental models and processes in the internationalization process.

Suggested Citation

  • Anders Blomstermo & Kent Eriksson & D. Deo Sharma, 2004. "Domestic Activity and Knowledge Development in the Internationalization Process of Firms," Journal of International Entrepreneurship, Springer, vol. 2(3), pages 239-258, September.
    • Handle: RePEc:kap:jinten:v:2:y:2004:i:3:p:239-258
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    Citations

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    Cited by:

    1. Gassmann, Oliver & Keupp, Marcus Matthias, 2007. "The competitive advantage of early and rapidly internationalising SMEs in the biotechnology industry: A knowledge-based view," Journal of World Business, Elsevier, vol. 42(3), pages 350-366, September.
    2. Casillas, José C. & Moreno, Ana M. & Acedo, Francisco J. & Gallego, María A. & Ramos, Encarnación, 2009. "An integrative model of the role of knowledge in the internationalization process," Journal of World Business, Elsevier, vol. 44(3), pages 311-322, July.
    3. Karafyllia, Maria & Zucchella, Antonella, 2017. "Synergies and tensions between and within domestic and international market activities of firms," International Business Review, Elsevier, vol. 26(5), pages 942-958.
    4. Zhou, Lianxi & Wu, Aiqi, 2014. "Earliness of internationalization and performance outcomes: Exploring the moderating effects of venture age and international commitment," Journal of World Business, Elsevier, vol. 49(1), pages 132-142.
    5. Casillas, José C. & Acedo, Francisco J. & Barbero, José L., 2010. "Learning, unlearning and internationalisation: Evidence from the pre-export phase," International Journal of Information Management, Elsevier, vol. 30(2), pages 162-173.
    6. Fletcher, Margaret & Harris, Simon & Richey, Robert Glenn, 2021. "Retrospective and prospective learning: Accelerating the internationalization process," Journal of World Business, Elsevier, vol. 56(3).
    7. Wein-Hong Chen & Yi-Yuan Liu, 2021. "Configurations of home-country experience, leapfrog strategy, and management team composition for acceleration of international expansion: Evidence from Asian multinational enterprises," Asia Pacific Journal of Management, Springer, vol. 38(2), pages 709-733, June.
    8. Andreas Al-Laham & Terry L. Amburgey, 2010. "Who Makes You Central?," Management International Review, Springer, vol. 50(3), pages 297-323, June.
    9. Prange, Christiane & Verdier, Sylvie, 2011. "Dynamic capabilities, internationalization processes and performance," Journal of World Business, Elsevier, vol. 46(1), pages 126-133, January.
    10. Ari Jantunen & Kaisu Puumalainen & Sami Saarenketo & Kalevi Kyläheiko, 2005. "Entrepreneurial Orientation, Dynamic Capabilities and International Performance," Journal of International Entrepreneurship, Springer, vol. 3(3), pages 223-243, September.
    11. Martina Musteen & Deepak K. Datta & Marcus M. Butts, 2014. "Do International Networks and Foreign Market Knowledge Facilitate SME Internationalization? Evidence from the Czech Republic," Entrepreneurship Theory and Practice, , vol. 38(4), pages 749-774, July.
    12. Andreea Kiss & Wade Danis, 2010. "Social networks and speed of new venture internationalization during institutional transition: A conceptual model," Journal of International Entrepreneurship, Springer, vol. 8(3), pages 273-287, September.
    13. Shameen Prashantham, 2005. "Toward a Knowledge-Based Conceptualization of Internationalization," Journal of International Entrepreneurship, Springer, vol. 3(1), pages 37-52, January.
    14. Gripsrud, Geir & Hunneman, Auke & Solberg, Carl Arthur, 2023. "Speed of internationalization of new ventures and survival in export markets," International Business Review, Elsevier, vol. 32(4).
    15. Tuomisalo, Teemu & Leppäaho, Tanja, 2019. "Learning in international new ventures: A systematic review," International Business Review, Elsevier, vol. 28(3), pages 463-481.
    16. Li, Haiyan, 2020. "Role of overseas ethnic and non-ethnic ties and firm activity in the home country in the internationalization of returnee entrepreneurial firms," Journal of International Management, Elsevier, vol. 26(1).
    17. Denitsa Hazarbassanova Blagoeva & Peter D. Ørberg Jensen & Hemant Merchant, 2020. "Services in International Business Studies: A Replication and Extension of Merchant and Gaur (2008)," Management International Review, Springer, vol. 60(3), pages 427-457, June.
    18. Figueira-de-Lemos, Francisco & Johanson, Jan & Vahlne, Jan-Erik, 2011. "Risk management in the internationalization process of the firm: A note on the Uppsala model," Journal of World Business, Elsevier, vol. 46(2), pages 143-153, April.
    19. Izabela Kowalik, 2018. "International New Ventures Learning Processes and Their Role in International Marketing," The International Journal of Economic Behavior - IJEB, Faculty of Business and Administration, University of Bucharest, vol. 8(1), pages 117-132.

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