Experimental Knowledge and Costs in the Internationalization Process

Kent Eriksson, Jan Johanson, Anders Majkgård and D Deo Sharma
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Kent Eriksson: Uppsala University
Jan Johanson: Uppsala University
Anders Majkgård: Uppsala University
D Deo Sharma: Umeå Business School

Journal of International Business Studies, 1997, vol. 28, issue 2, 337-360

Abstract: Using a behavioral approach, this study identifies and delineates components of experiential knowledge in the internationalization process. Three hypotheses are developed and tested. They center around the lack of knowledge in the areas of foreign business, foreign institutions and firm internationalization, as well as the effect that this lack of knowledge has on managers' perceived cost in the internationalization process. With the help of a LISREL-based structural model, the three hypotheses are tested on a sample of 362 service firms. The analysis shows that lack of internationalization knowledge has a strong impact on the lack of both business and institutionalization. But there is no direct effect of lack of internationalization knowledge on perceived cost of internationalization.© 1997 JIBS. Journal of International Business Studies (1997) 28, 337–360

Date: 1997
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