Types of Difficulties in Internationalization and their Consequences
A NEW GENERATION IN INTERNATIONAL STRATEGIC MANAGEMENT, Stephen Tallman, ed., Edward Elgar, 2007
15 Pages Posted: 7 Dec 2007
We extend the literature on the difficulties of internationalization by discussing their types and specific consequences associated with each type. The types of difficulties can be separated into three main groups based on their cause and specificity: the inabilities to transfer advantage and to create value, the disadvantages of transfer and of foreignness, and the liabilities of expansion, newness, foreignness, and infrastructure. We discuss how each type has specific consequences associated with it, and suggest strategies for identifying them.
Keywords: difficulties in internationalization; cost of doing business abroad; liability of foreignness; internationalization; multinational enterprises
JEL Classification: F23
Suggested Citation: Suggested Citation