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Intangible Resources and the Internationalization Process: Path Dependence of Building a Profitable Multinational Company

  • Mario Krist

The internationalization process has been a central research focus of international business research for a long time. Next to inquiries about different reasons for internationalization that seek to explore ‘why’ firms do business abroad, the internationalization process research stream has focused on the ‘how’ to become international as well. Arguably the most influential theory has been the learning theory by Johanson and Vahlne (1977). This theory describes internationalization as an incremental process of knowledge creation and foreign market commitment. One of its major contributions is that it achieves an interrelated explanation of ‘why’ and ‘how’ firms increase their presence in international markets. Concerning the question of causality it emphasizes that merits of internationalization arise from knowledge exploitation and development. As regards the question of modality the learning theory posits that firms would best follow a process of gradual expansion. This is mainly due to the fact that management has only limited capacity to absorb and integrate new information (Cohen and Levinthal, 1990).

Keywords

Foreign Direct Investment Firm Performance Strategic Management Journal International Business Study International Expansion 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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© Gabler | GWV Fachverlage GmbH, Wiesbaden 2009

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  • Mario Krist

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