Internationalization processes in stable and unstable market conditions: Towards a model of commitment decisions in dynamic environments

Francisco Figueira-de-Lemos and Amjad Hadjikhani

Journal of World Business, 2014, vol. 49, issue 3, 332-349

Abstract: This article proposes a managerial decision framework to deal with internationalization whether in stable or dynamic environments. While displaying the effects of unstable and stable environmental settings on commitment decisions, the framework is the result of an inferential abductive approach that merges the risk management model with empirical data collected from a 32-year longitudinal case study on nine Swedish MNCs. The longitudinal analysis shows that when environmental changes are perceived as detrimental, firms tend to decrease their tangible assets and commit in a more intangible way. On the opposite, when changes to the environment are perceived as beneficial, firms follow an incremental path of commitment, preferably in tangible kind. The findings contribute new knowledge to understand such diversities in commitment decisions as divestment, wait-and-see, market-exit and re-entry.

Keywords: Uppsala model; Internationalization process; Commitment decisions; Risk; Stable and unstable markets (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (21)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:worbus:v:49:y:2014:i:3:p:332-349

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DOI: 10.1016/j.jwb.2013.07.003

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