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Internationalising in small, incremental or larger steps?

Barkema, Harry G. and Drogendijk, Rian (2007) Internationalising in small, incremental or larger steps? Journal of International Business Studies, 38 (7). pp. 1132-1148. ISSN 0047-2506

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Abstract

We argue that companies may enter foreign environments either incrementally, as suggested by long-established theory, or by taking larger steps that may result in lower initial performance but, through learning and experience, lead to increased performance in future expansions. This idea is corroborated by the experience of Dutch companies entering into Central and Eastern Europe. We also find that expansion steps may be too large, thereby limiting the exploration of foreign environments. Our study suggests that sequential internationalisation strategies do still matter, and that companies have to balance exploitation and exploration in internationalisation.

Item Type: Article
Official URL: http://www.palgrave-journals.com/jibs/index.html
Additional Information: © 2007 Palgrave Macmillan
Library of Congress subject classification: D History General and Old World > D History (General) > D901 Europe (General)
D History General and Old World > DJ Netherlands (Holland)
H Social Sciences > HF Commerce
Journal of Economic Literature Classification System: F - International Economics > F2 - International Factor Movements and International Business > F23 - Multinational Firms; International Business
Sets: Departments > Management
Collections > Economists Online
Rights: http://www.lse.ac.uk/library/usingTheLibrary/academicSupport/OA/depositYourResearch.aspx
Date Deposited: 05 Sep 2011 13:25
URL: http://eprints.lse.ac.uk/38106/

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