Knowledge trajectories in the internationalization of the firm

Abstract

PurposeThe purpose of this paper is to analyze how the internationalizing firm accumulates knowledge from different domains throughout time, during entry and post-entry moves in a foreign market. This paper focuses on market, institutional, internationalization and technological knowledge.Design/methodology/approachThe paper uses a comparative case study method, relying on three longitudinal cases of multinational firms' (MNEs) internationalization processes, particularly concerning MNEs' entry and post-entry moves in one foreign market (Brazil).FindingsThroughout the internationalization processes, the internationalizing firms unevenly developed experiential knowledge within Brazil. As a result, the market, internationalization, institutional and technological knowledge followed different accumulation patterns, distinguished based on precedence, simultaneity and speed. More specifically, (1) the market and institutional knowledge trajectories evolved simultaneously; (2) the market knowledge trajectory preceded that of technological knowledge and (3) the accumulation of internationalization knowledge happened faster than that of the market, institutional and technological knowledge.Originality/valueThis paper shows how knowledge accumulation in internationalization processes varies throughout time and according to the type of knowledge involved. While most of the literature relies on cross-sectional studies that discount the changing nature of knowledge, this paper shows that the internationalizing firm accumulates market, internationalization, institutional and technological knowledge following three temporal dimensions: precedence, simultaneity and speed.