Working Paper Series, Department of International Economics and Management, Copenhagen Business School
The Internationalization Process of Danish Firms - gradual learning or discrete rational choices?
Abstract: The Uppsala Internationalization model has greatly
influenced Nordic research on the internationalization process of firms. In
this article, the Uppsala model is tested on Danish empirical material. The
Danish firms largely follow a sequential development as regards the
geographical dimension, where, typically, they set up in culturally close
markets first and later set up in the more distant markets. On the other
hand, the firms seem to follow to a less extent a pattern of sequential
expansion of market commitment on the single foreign markets, just as a
surprising number of establishments are set up without previous activity on
the market. Crucial differences cannot be found between the establishment
pattern abroad of large and small firms. The Uppsala model in itself cannot
explain the internationalization pattern of the Danish firms, which is why
the article advocates that the internationalization process should be
understood as an interaction between internal conditions in the firm
("learning" processes), external competitive conditions and more basic
economic factors (assessment of market potential).
Keywords: Internationalization; Denmark; Sweden; Uppsala model; market entry; expansion; (follow links to similar papers)
28 pages, May 29, 1999
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