Foreign market entries, exits and re-entries: The role of knowledge, network relationships and decision-making logic

Tiia Vissak, Barbara Francioni and Susan Freeman

International Business Review, 2020, vol. 29, issue 1

Abstract: We focus on the following question: how are knowledge, network relationships and decision-making logic interrelated throughout the internationalization process – foreign market entries, exits and re-entries? We contribute to the internationalization literature, network approach and effectuation theory that have not examined these interrelationships during internationalization – especially de- and re-internationalization – in detail yet. Thereby, we provide a more complete view of internationalization. Based on a single punctuated longitudinal case study, we show that lack of knowledge results in mostly effectual (opportunity-driven) decision-making: finding customers via weak ties, trade fairs and unsolicited export orders and experiencing numerous market exits and re-entries due to “experimenting”. Knowledge acquisition leads to more causal (systematic, plan-driven) decision-making and stronger ties, but serendipitous (“by chance”) entries can still occur, and exiting and re-entering foreign markets may continue. We suggest that managers should network and acquire knowledge actively, use both decision-making logics and accept uncertainty as normal during internationalization.

Keywords: Internationalization; De-internationalization; Re-internationalization; Knowledge; Effectual logic; Causal logic; Network relationships; Punctuated longitudinal case study (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (28)

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DOI: 10.1016/j.ibusrev.2019.101592

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