A firm setting up an additional wholly-owned subsidiary in a foreign country takes great risks due to the amount of capital that is involved. However, there is a lack of research on the crucial issue. Relying on resource-based theory this study explains firm’s post-entry sequential expansion. Event histories of Swedish firms in Germany, UK, and the USA were analyzed. It was found that a broader product scope increases the hazard of establishment of a subsequent subsidiary. The relationship is stronger if the first subsidiary has extensive value-adding activities. Furthermore, the activities have a positive direct impact and this is also valid if the first subsidiary was a greenfield investment. The findings indicate that exploitation of resources such as market experiences explain post-entry sequential expansion. The study contributes to literature on foreign direct investments and internationalization.