Internet-Based Knowledge Internalization and Firm Internationalization in Transition Markets

Abstract

Realizing that the Internet is a source of information and the possibility to transform it into knowledge, this study develops an IBK-Internalization process in which internationalizing firms in transition markets utilize the Internet to search for information about foreign markets, to assess its relevance, and then, to internalize it for their internationalization. It is found that IBK-Internalization underlies international orientation and foreign sales intensity, which in turn, has a reciprocal effect on IBK-Internalization. Further, learning orientation facilitates the IBK-Internalization process. These findings suggest that internationalizing firms should promote and value the IBK-Internalization process in order to mitigate their lack of foreign market knowledge.

Citation

Nguyen, T.D. and Barrett, N.J. (2006), "Internet-Based Knowledge Internalization and Firm Internationalization in Transition Markets", International Marketing Research (Advances in International Marketing, Vol. 17), Emerald Group Publishing Limited, Leeds, pp. 369-394. https://doi.org/10.1016/S1474-7979(06)17014-3