We refine internationalization theory by hypothesizing that international expansion is a discontinuous process characterized by an initial ‘big step.’ Firms have to build an infrastructure (e.g., architecture, management systems, and mind-set) to support international operations the first time they venture abroad, and subsequent international operations are able to leverage this infrastructure. Thus, we hypothesize that the internationalization process is characterized by: (1) firms taking a long period to make their first international investment; and (2) firms taking shorter but constant periods for subsequent investments. We examine the international expansion activities of 176 Danish firms and find support for these arguments.
Global Strategy Journal, 2011, Vol 1, Issue 3-4, p. 263-274
Internationalization; Foreign Direct Investment; Management Infrastruture; Event History Analysis; Denmark