Working Paper Series, Department of International Economics and Management, Copenhagen Business School
No 8-1999:
Resource Commitment to Foreign Markets: Within Mode Changes and Mode Additions
Bent Petersen, Lawrence S. Welch and Kim V. Nielsen
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.
Keywords: Internationalization process; within mode changes; mode additions.; (follow links to similar papers)
19 pages, May 30, 1999
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