Internationalization Revisited: The Big Step Hypothesis

Torben Pedersen; Myles Shaver

doi:10.1111/j.2042-5805.2011.00027.x

Internationalization Revisited: The Big Step Hypothesis

Research output: Contribution to journal › Journal article › Research › peer-review

Abstract

We refine internationalization theory by hypothesizing that international expansion is a discontinuous process characterized by an initial ‘big step.’ Firms have to build an infrastructure (e.g., architecture, management systems, and mind-set) to support international operations the first time they venture abroad, and subsequent international operations are able to leverage this infrastructure. Thus, we hypothesize that the internationalization process is characterized by: (1) firms taking a long period to make their first international investment; and (2) firms taking shorter but constant periods for subsequent investments. We examine the international expansion activities of 176 Danish firms and find support for these arguments.

Original language	English
Journal	Global Strategy Journal
Volume	1
Issue number	3-4
Pages (from-to)	263-274
ISSN	2042-5791
DOIs	https://doi.org/10.1111/j.2042-5805.2011.00027.x
Publication status	Published - 2011

Keywords

Internationalization
Foreign Direct Investment
Management Infrastruture
Event History Analysis
Denmark

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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Cite this

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title = "Internationalization Revisited: The Big Step Hypothesis",

abstract = "We refine internationalization theory by hypothesizing that international expansion is a discontinuous process characterized by an initial {\textquoteleft}big step.{\textquoteright} Firms have to build an infrastructure (e.g., architecture, management systems, and mind-set) to support international operations the first time they venture abroad, and subsequent international operations are able to leverage this infrastructure. Thus, we hypothesize that the internationalization process is characterized by: (1) firms taking a long period to make their first international investment; and (2) firms taking shorter but constant periods for subsequent investments. We examine the international expansion activities of 176 Danish firms and find support for these arguments.",

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