Edited by Léo-Paul Dana
Chapter 30: International Expansion of New Zealand Firms
30 International expansion of New Zealand ﬁrms Heather I.M. Wilson, Sylvie K. Chetty and Gurvinder S. Shergill This chapter is based on a study of 117 small to medium-sized New Zealand exporting ﬁrms across all industries.* Our objective was to investigate the relevance of previous knowledge to the assessment of current international assignments. The results conﬁrm the existence of three types of experiential knowledge that appear to accord with Eriksson et al.’s foreign business knowledge, foreign institutional knowledge and internationalization knowledge constructs (1997). However, these elements combined only explain 48 per cent of the variance in our data. Additional experiential knowledge constructs are identiﬁed relating to compliance and development/adaptation issues, which when combined with the other constructs explain 69 per cent of the variance in our data. Our contribution lies in the further development and reﬁnement of the experiential knowledge constructs for use in future studies on internationalization. With increasing globalization and worldwide trade liberalization, research on learning and internationalization has become an important issue in the international business literature. As ﬁrms increase their international involvement by conducting business in countries that have diﬀerent business customs, business institutions and infrastructure they have to widen their internationalization knowledge. One perspective on learning is that ﬁrms which have previous experience have an advantage as they can learn from these experiences and add their new knowledge to these accumulated experiences (Madhok, 1997; Cohen and Levinthal, 1990; Eriksson et al., 1997). Previous experiences determine routines, which are fundamental to the...
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