Organizational learning, unlearning and re-internationalization timing: Differences between emerging- versus developed-market MNEs

Irina Surdu and Rajneesh Narula

Journal of International Management, 2021, vol. 27, issue 3

Abstract: Not all firms are successful in internationalizing their operations; many withdraw, and some make a second attempt (after an appropriate ‘time-out’). We compare the re-internationalization of emerging market multinationals (EMNEs) with developed market multinationals (DMNEs) to investigate key differences. Although DMNEs may have greater experience in internationalization, with supposedly superior market-specific knowledge, this does not always have positive effects and may be a disadvantage for re-entry. We find that not all types of market-specific experience are beneficial for re-entry. Being able to unlearn past experiences associated with the initial entry may be just as valuable a firm-specific advantage (FSA) for re-entrants. EMNEs are not necessarily at a disadvantage when re-internationalizing because, compared to their developed market counterparts, they have less to ‘unlearn’ as they often lack deeply embedded routines associated with international heritage. We also find EMNEs are less deterred by under-performance from the initial entry and are likely to re-internationalize more rapidly than DMNEs. EMNEs, given their newness and absence of deeply embedded routines, are less likely to be victims of inertia.

Keywords: Re-internationalization timing; EMNEs; Organizational learning and unlearning; Market-specific experience; Foreign market exit; Entry and re-entry modes (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S107542531930290X
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:intman:v:27:y:2021:i:3:s107542531930290x

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/journaldescription.cws_home/601266/bibliographic
http://www.elsevier. ... 601266/bibliographic

DOI: 10.1016/j.intman.2020.100784

Access Statistics for this article

Journal of International Management is currently edited by M. Kotabe

More articles in Journal of International Management from Elsevier
Bibliographic data for series maintained by Catherine Liu ().