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Chapter 31: Swedish Perspectives of International Entrepreneurship
31 Swedish perspectives of international entrepreneurship Anders Blomstermo, Kent Eriksson and D. Deo Sharma The internationalization process research (Welch and Wiedersheim-Paul, 1980a,b), as well as research in business strategy (Porter, 1985) have acknowledged the importance of domestic operations for the international operations of ﬁrms. It is concluded that ﬁrms start operations in domestic markets, and, thereafter, enter international markets. Porter’s (1980) framework ‘ﬁve forces’, ‘generic strategies’ and ‘value chain’ have their roots in the domestic market of the ﬁrm. He argues that the ﬁrms should implement its strategy by managing well in the domestic market. Superior performance can result from competitive advantage of a ﬁrm being perceived as having a focus on one particular market segment. Research on born globals, on the other hand, questions the impact of domestic experience on international operations (McDougall et al., 1994; Knight and Cavusgil, 1996). To the best of our knowledge, the eﬀects of domestic operations on learning and knowledge accumulation in the internationalization process of ﬁrms is controversial and remains largely uninvestigated. We investigate the eﬀects of the duration of domestic operations on the accumulation of knowledge in internationalizing ﬁrms. This is important since ﬁrms often start their operations in the domestic market. An important research issue is how the duration of domestic operations inﬂuences the accumulation of knowledge in ﬁrms. Internationalization process studies that use a behavioural approach emphasize the importance of knowledge and learning in the internationalization of ﬁrms. Based on the work by Aharoni (1966), Cyert...
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