Fast and slow resource commitment to foreign markets: What causes the difference?

Bent Petersen and Torben Pedersen

Journal of International Management, 1999, vol. 5, issue 2, 73-91

Abstract: Apparently, the pace by which companies commit resources to foreign markets differs significantly. We test six propositions that potentially explain why some companies undertake faster foreign market commitment than others. Suggested factors discriminating between a fast and a slow foreign market commitment are (1) whether the company is producing manufactures or services; (2) foreign market entry motives; (3) company size; (4) foreign market stability; (5) experience with foreign markets similar to the entered; and (6) degree of globalization in the industry. Using multiple regression analysis on Danish MNE data, we obtain supportive empirical evidence for all propositions, except for number 5, experience with similar markets. The results indicate that resource commitment to stable, foreign markets undertaken by small, market-seeking, manufacturing companies operating in domestic industries is slow relative to the commitment of resources to unstable markets made by firms with other attributes (large firms, service firms, and motives other than market seeking) operating in global industries. The study suggests that a globalization of industries since the 1970s has prompt companies to increase the pace by which they commitment resources to foreign markets.

Keywords: Internationalization; Foreign; market; entry; Globalization; Pace; of; resource; commitment (search for similar items in EconPapers)
Date: 1999
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (15)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1075425399000071
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:5:y:1999:i:2:p:73-91

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

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 ().