Abstract
Using a behavioral approach, this study identifies and delineates components of experiential knowledge in the internationalization process. Three hypotheses are developed and tested. They center around the lack of knowledge in the areas of foreign business, foreign institutions and firm internationalization, as well as the effect that this lack of knowledge has on managers' perceived cost in the internationalization process. With the help of a LISREL-based structural model, the three hypotheses are tested on a sample of 362 service firms. The analysis shows that lack of internationalization knowledge has a strong impact on the lack of both business and institutionalization. But there is no direct effect of lack of internationalization knowledge on perceived cost of internationalization.
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*Kent Eriksson is Associate Professor at the Department of Business Studies, Uppsala University. His research interests include international business, marketing and strategy. His research has been published in the Journal of International Business Studies, and the Service Industries Journal.
**Jan Johanson is Professor of International Business at the Department of Business Studies, Uppsala University. His research interests center on internationalization processes, business relationships and networks in multinational enterprises. Professor Johanson has published in several academic journals including the Journal of International Business Studies, Journal of Marketing, Journal of Management Studies, International Marketing Review, International Business Review, and International Studies of Management and Organization.
***Anders Majkgård is a doctoral candidate at the Department of Business Studies, Uppsala University. His research interests include foreign market entry and internationalization of service industries.
****D. Deo Sharma is Professor of Marketing at the Umeå Business School, and Copenhagen Business School. His research interests are management contracts, government- TNC relationships, and internationalization. His research has been published in the International Marketing Review, International Business Review, Journal of Global Marketing. Scandinavian Journal of Management, and Advances in International Marketing.
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Eriksson, K., Johanson, J., Majkgård, A. et al. Experiential Knowledge and Costs in the Internationalization Process. J Int Bus Stud 28, 337–360 (1997). https://doi.org/10.1057/palgrave.jibs.8490104
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DOI: https://doi.org/10.1057/palgrave.jibs.8490104