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

See all articles by Alvaro Cuervo-Cazurra

Alvaro Cuervo-Cazurra

Northeastern University - Department of International Business and Strategy

C. Annique Un

Northeastern University - International Business & Strategy

Abstract

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

Cuervo-Cazurra, Alvaro and Un, C. Annique, Types of Difficulties in Internationalization and their Consequences. A NEW GENERATION IN INTERNATIONAL STRATEGIC MANAGEMENT, Stephen Tallman, ed., Edward Elgar, 2007. Available at SSRN: https://ssrn.com/abstract=1060661

Alvaro Cuervo-Cazurra (Contact Author)

Northeastern University - Department of International Business and Strategy ( email )

D'Amore-McKim School of Business
313 Hayden Hall, 360 Huntington Avenue
Boston, MA 02115
United States
16173736568 (Phone)
16173738628 (Fax)

HOME PAGE: http://cuervo-cazurra.com

C. Annique Un

Northeastern University - International Business & Strategy ( email )

Boston, MA 02115
United States

HOME PAGE: http://anniqueun.com/

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