Abstract
Knowledge development—an integral part of firms’ internationalization—has generated a considerable amount of research on how firms from emerging and advanced countries acquire, integrate, and utilize knowledge. Despite theoretical justifications for the context significance for internationalization, the existing literature is fragmented and overlooks whether and how firms originating in distinct countries differ in their knowledge development processes. Relying on the antecedents, decisions, and outcomes, and the theory, context, characteristics, and methodology frameworks, we bridge this gap by reviewing 81 papers published in leading journals since 2007. Our paper extends the literature by classifying knowledge development during firm internationalization from emerging and advanced countries. We show how environmental and status differences create diverse effects on the type of knowledge firms seek, the ways they acquire and integrate it, and the consequent internationalization decisions. Among notable further directions, we emphasize shifting focus from organization- to individual-level learning in diverse organizational contexts.
Highlights
Knowledge development is an underlying process of firm interna tionalization that has attracted considerable research attention (De Clercq, Sapienza, Yavuz, & Zhou, 2012; Kahiya, 2020; Petersen, Ped ersen, & Sharma, 2003; Tuomisalo & Leppaaho, 2019)
Extensive research has been conducted, scholars have rarely acknowledged the importance of the knowledge development process regarding different country con texts, such as contrasting firms originating in emerging market (EM) and advanced economy (AE)
We make several contributions to international business (IB) litera ture and practice: First, we provide a holistic understanding of the relationship between a country and its impact on the process of knowledge development during internationalization
Summary
Knowledge development is an underlying process of firm interna tionalization that has attracted considerable research attention (De Clercq, Sapienza, Yavuz, & Zhou, 2012; Kahiya, 2020; Petersen, Ped ersen, & Sharma, 2003; Tuomisalo & Leppaaho, 2019). Scholars contend that knowledge development is imperative for entering unfamiliar, distant markets, such as when a firm from an advanced economy (AE) enters an emerging market (EM) or vice versa (He, Lin, & Wei, 2016). In such cases, knowledge about the target country is crucial for success, while, in cases of internationaliza tion to similar markets, it is possible to apply the knowledge developed at home (Johanson & Vahlne, 1977). EM firms began internationalizing to AEs several decades ago, yet the rapid increase in the scale and pace of internationalization began in the early 2000s (Luo, Xue, & Han, 2010; Ramamurti & Singh, 2009)
Published Version
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