An Empirical Investigation of the Role of Industry Factors in the Internationalization Patterns of Firms

Birgitte Grøgaard, Carmine Gioia, Gabriel R. G. Benito*

*Corresponding author for this work

    Research output: Working paperResearch

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    Abstract

    Research on companies' internationalization has mainly focused on firm-level and country-level factors in order to explain firms' cross-border activities. With the exception of a limited number of studies emphasizing rivalistic behavior in oligopolistic industries, industry factors have been neglected as potential determinants of companies' internationalization. We argue that differences across industries with regard to competition level, research intensity, tangibility of the products, and the existence of clusters should influence the impetus and opportunities to internationalize. This study examines the role of such factors using data covering the internationalization patterns of the 100 largest non-financial Norwegian companies over the period 1990 to 2000. We find that industry factors contribute significantly to explaining the internationalization of these companies, and that the effects of industry factors remain strong when firm-level characteristics are taken into account.
    Original languageEnglish
    Place of PublicationKøbenhavn
    PublisherCenter for Strategic Management and Globalization
    Number of pages31
    ISBN (Print)8791815118
    Publication statusPublished - Nov 2005
    SeriesSMG Working Paper
    Number9/2005

    Keywords

    • Internationalization
    • Multinational companies
    • Industry factors
    • Norway

    Cite this

    Grøgaard, B., Gioia, C., & Benito, G. R. G. (2005). An Empirical Investigation of the Role of Industry Factors in the Internationalization Patterns of Firms. Center for Strategic Management and Globalization. SMG Working Paper, No. 9/2005