Domestic Impact of Internationalisation, The Case of JM

Abstract

The influence of internationalisation processes in the domestic activities of firms’ has not been considered as an important issue in existing models, because they tend to focus on a partial and restricted view of the firm. The purpose of this paper is to challenge that view by attempting a dynamic view of the firm is which primal importance is given to the relationship between international and domestic activities. The main research question is whether domestic activities can be significantly affected by international activities, namely knowledge transfer. Results confirm the dynamic approach adopted by firms, however there are no definitive answers in terms of the domestic impact of internationalisation. Despite clear hints of evidence for the international-domestic relationship, there was no confirmation of this relationship at the financial level.

Keywords: Internationalisation, learning, knowledge-transfer, dynamic, financial

JEL Classification: F21, F23