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Resource Commitment to Foreign Markets: Within Mode Changes and Mode Additions

Author

Listed:
  • Petersen, Bent

    (Department of International Economics and Management, Copenhagen Business School)

  • Welch, Lawrence S.

    (Norwegian School of Management)

  • Nielsen, Kim V.

    (PA Consulting)

Abstract

A key element of the internationalization process theory of the firm is the incremental accumulation of knowledge and skills regarding foreign markets and international operations in general. However, studies of internationalization patterns have tended to focus on foreign operation mode (or, entry mode)use, which is a relatively broad, even crude, indicator of the change process. In this paper we argue that, in order to more adequately depict and analyze the change process inherent in internationalization, there is a need to consider both within mode changes and mode additions. A study of the establishment pattern of Danish companies in South East Asia is used to illustrate a broader concept of foreign operation mode development which is perhaps closer to the original concept of incrementalism underlying some of the early studies of the internationalization process.

Suggested Citation

  • 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.
    • Handle: RePEc:hhb:cbsint:1999-008
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    File URL: http://openarchive.cbs.dk/cbsweb/handle/10398/6533
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    References listed on IDEAS

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    1. 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.
    2. Grønhaug, Kjell & Kvitastein, Olav, 1993. "Distributional involvement in international strategic business units," International Business Review, Elsevier, vol. 2(1), pages 1-14.
    3. Madsen, Tage Koed & Servais, Per, 1997. "The internationalization of Born Globals: An evolutionary process?," International Business Review, Elsevier, vol. 6(6), pages 561-583, December.
    4. Vernon, Raymond, 1979. "The Product Cycle Hypothesis in a New International Environment," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 41(4), pages 255-267, November.
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    Cited by:

    1. Figueira-de-Lemos, Francisco & Hadjikhani, Amjad, 2014. "Internationalization processes in stable and unstable market conditions: Towards a model of commitment decisions in dynamic environments," Journal of World Business, Elsevier, vol. 49(3), pages 332-349.
    2. Tongurai, Jittima & Vithessonthi, Chaiporn, 2022. "Learning, foreign operations and operating performance," Global Finance Journal, Elsevier, vol. 52(C).

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