When Failure is Neither Fatal nor Final: Understanding Re-internationalization Processes

Abstract

Re-internationalization, or firms’ re-entry into international operations after completely withdrawing from initial international business failures, is a neglected phenomenon in international business research. This research develops theoretical underpinnings for understanding re-internationalization processes through an inductive theory-building approach using case studies of four Indian firms from diverse industries. We examine various aspects of firms’ initial internationalization, including the learning and experiences gained during such activities, the role of networks and relationships, valences in organizational commitment to internationalization during the exit and time-out periods, and the significance of dynamic capabilities that facilitate successful re-internationalization of firms. Our theorizing is relevant for scholars seeking a better understanding of the re-internationalization processes and for practitioners seeking insights for decision-making related to internationalization strategies. Our findings also have implications for policymakers responsible for designing subventions and incentives for both internationalization and re-internationalization.