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Department of International Economics and Management, Copenhagen Business School Working Paper Series, Department of International Economics and Management, Copenhagen Business School

No 8-1999:
Resource Commitment to Foreign Markets: Within Mode Changes and Mode Additions

Bent Petersen, Lawrence S. Welch and Kim V. Nielsen

Abstract: A key element of the internationalization process theory of the firm is the incremental accumulation of knowledge and skills regarding foreign markets and international operations in general. However, studies of internationalization patterns have tended to focus on foreign operation mode (or, entry mode)use, which is a relatively broad, even crude, indicator of the change process. In this paper we argue that, in order to more adequately depict and analyze the change process inherent in internationalization, there is a need to consider both within mode changes and mode additions. A study of the establishment pattern of Danish companies in South East Asia is used to illustrate a broader concept of foreign operation mode development which is perhaps closer to the original concept of incrementalism underlying some of the early studies of the internationalization process.

Keywords: Internationalization process; within mode changes; mode additions.; (follow links to similar papers)

19 pages, May 30, 1999

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