Internationalization Revisited: The Big Step Hypothesis

Torben Pedersen, Myles Shaver

    Research output: Contribution to journalJournal articleResearchpeer-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 languageEnglish
    JournalGlobal Strategy Journal
    Volume1
    Issue number3-4
    Pages (from-to)263-274
    ISSN2042-5791
    DOIs
    Publication statusPublished - 2011

    Keywords

    • Internationalization
    • Foreign Direct Investment
    • Management Infrastruture
    • Event History Analysis
    • Denmark

    Cite this

    Pedersen, Torben ; Shaver, Myles. / Internationalization Revisited : The Big Step Hypothesis. In: Global Strategy Journal. 2011 ; Vol. 1, No. 3-4. pp. 263-274.
    @article{954a6ff125a740d4be714bdf9d26e94c,
    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 ‘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.",
    keywords = "Internationalization, Foreign Direct Investment, Management Infrastruture, Event History Analysis, Denmark",
    author = "Torben Pedersen and Myles Shaver",
    year = "2011",
    doi = "10.1111/j.2042-5805.2011.00027.x",
    language = "English",
    volume = "1",
    pages = "263--274",
    journal = "Global Strategy Journal",
    issn = "2042-5791",
    publisher = "Strategic Management Society",
    number = "3-4",

    }

    Internationalization Revisited : The Big Step Hypothesis. / Pedersen, Torben; Shaver, Myles.

    In: Global Strategy Journal, Vol. 1, No. 3-4, 2011, p. 263-274.

    Research output: Contribution to journalJournal articleResearchpeer-review

    TY - JOUR

    T1 - Internationalization Revisited

    T2 - The Big Step Hypothesis

    AU - Pedersen, Torben

    AU - Shaver, Myles

    PY - 2011

    Y1 - 2011

    N2 - 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.

    AB - 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.

    KW - Internationalization

    KW - Foreign Direct Investment

    KW - Management Infrastruture

    KW - Event History Analysis

    KW - Denmark

    U2 - 10.1111/j.2042-5805.2011.00027.x

    DO - 10.1111/j.2042-5805.2011.00027.x

    M3 - Journal article

    VL - 1

    SP - 263

    EP - 274

    JO - Global Strategy Journal

    JF - Global Strategy Journal

    SN - 2042-5791

    IS - 3-4

    ER -