Abstract
Institutions have been shown to be an important determinant for a firm’s internationalisation strategy, yet the literature dealing with the role of institutional change is scarce. Both, host and home country institutional environment, as well as their evolvement, shape a firm’s internationalisation strategy, including their speed of first internationalization. To fully comprehend in how far such institutional change affect domestic firms’ speed of internationalization, the focus of this paper lies on home country capability development that enables a quick internationalization after inception. We argue that firms develop institutional capabilities from home country institutional change and incorporate aspects of experiential and organizational learning to understand capability development. We link this home country capability development to the firm’s ability to pursue a faster first internationalization.
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