The internationalization process revisited: institutionalization, exploitation and exploration

Abstract

In this paper we try to upgrade the explanatory power of internationalization process theory without refuting the fundamental logic of the classic Uppsala model. Therefore, we focus on the conceptualization of market knowledge, market commitment and organizational learning and bring it in line with theoretical progress on these constructs over recent decades. On these grounds, we elaborate a scenario analysis of 20 observed internationalization episodes. Eventually, a typology of six internationalization scenarios is identified. This scenario analysis extends the internationalization process from a mere exploitative learning process as in the classic Uppsala model to a longitudinal combination of episodes that represent institutionalization, explorative or exploitative learning.