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The Effect of Specificity of Experiential Knowledge on the Degree of Perceived Uncertainty in the Foreign Entry Process
Linnaeus University, Faculty of Business, Economics and Design, Linnaeus School of Business and Economics. (Linnaeus Baltic Business Research Center)ORCID iD: 0000-0003-4925-8937
(English)Manuscript (preprint) (Other academic)
Abstract [en]

This study examines the uncertainty reducing effects of experiential knowledge in the foreign market entry process. From a literature review, three types of experiential knowledge, ranging from low to high specificity, are identified and discriminated. A theoretical model is developed, and the three types of knowledge are hypothesised as uncertainty reducing in the foreign market entry process. The theoretical model is confronted with a dataset collected on site at 203 Swedish SMEs. The results of the structural equation model reveal that societal knowledge and business network knowledge have an uncertainty reducing effect in the foreign market entry process. Internationalisation knowledge on the other hand has no significant uncertainty reducing effect. As a consequence, the analysis supports the argument that the more specific the experiential knowledge is, the greater the uncertainty reducing effect in the market entry process.

Keyword [en]
internationalisation process; foreign market entry; experiential knowledge; internationalisation knowledge; societal knowledge; business network knowledge; uncertainty; knowledge specificity
National Category
Business Administration
Research subject
Economy, Business administration
Identifiers
URN: urn:nbn:se:lnu:diva-11803OAI: oai:DiVA.org:lnu-11803DiVA: diva2:418264
Available from: 2011-05-20 Created: 2011-05-20 Last updated: 2017-02-17Bibliographically approved
In thesis
1. Establishment of Insidership Positions in Institutionally Distant Business Networks
Open this publication in new window or tab >>Establishment of Insidership Positions in Institutionally Distant Business Networks
2011 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

Since the opening of formerly closed markets in Eastern Europe and China in the early 1990s, numerous firms have sought to capture the growth opportunities prevailing in the virgin but institutionally distant business networks in these countries. I claim that the entry process into an institutionally distant business network has been realised when the entering firm has reached an insidership position in the network. To advance this idea, the thesis introduces the overlooked medium-sized multinational exporter (MME) and answers the following overarching research questions: (I) how do MMEs establish insidership positions in institutionally distant business networks, and (II) what critical abilities are developed by MMEs in the process of entering an institutionally distant business network? To answer these questions, qualitative and quantitative methods have sequentially been mixed to first give an in-depth understanding of the empirical field, and second to verify and generalise some of the most central tentative findings. Empirically, the study reports from a case study of eight firms in the Baltic Sea Region and from an on-site survey of 203 Swedish firms with experience of entries in Eastern Europe and/or China. Five individual essays are presented—all designed to reflect different aspects of the institutionally distant network entry process. The findings are condensed in the cover of the thesis, where it is claimed that an insidership position is reached through three main phases: the Scouting phase, the Qualifying phase and the Shielding phase. Furthermore, it is found that that the most critical abilities developed through the institutionally distant network entry process is local experience-based knowledge of high specificity. It is shown that previous experiences, generated in different business networks in mature markets, are not useful in the network entry process in immature markets. As a consequence, there is reason to believe that the entering firm needs to develop unlearning abilities to replace obsolete or misleading experience.

Place, publisher, year, edition, pages
Växjö, Kalmar: Linnaeus University Press, 2011. 116 p.
Series
Linnaeus University Dissertations, 52/2011
Keyword
internationalisation process, entry process, network insidership, emerging markets, institutional distance, business networks, liability of outsidership, liability of foreignness, SME, export
National Category
Business Administration
Research subject
Economy, Business administration
Identifiers
urn:nbn:se:lnu:diva-11799 (URN)978-91-86491-82-6 (ISBN)
Public defence
2011-06-14, Ny 200, Kalmar Nyckel, Gröndalsvägen 19, Kalmar, 10:00 (English)
Opponent
Supervisors
Available from: 2011-06-07 Created: 2011-05-20 Last updated: 2017-02-17Bibliographically approved

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CiteExportLink to record
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Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
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  • Other locale
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Output format
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  • asciidoc
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