Closing the Knowledge Gap in Foreign Markets - A Learning Perspective

SMG Working Paper No. 6/2005

42 Pages Posted: 23 Apr 2007

See all articles by Marjorie A. Lyles

Marjorie A. Lyles

Indiana University - Kelley School of Business - Management & Entrepreneurship

Torben Pedersen

Copenhagen Business School - Department of Strategic Management and Globalization

Björn Preuss

Copenhagen Business School

Date Written: October 2005

Abstract

The study explores how firms close their knowledge gaps in relation to business environments of foreign markets. Potential determinants are derived from traditional internationalization process theory as well as more recent literature on organizational learning processes, including the concept of absorptive capacity. Building on these two literature streams a conceptual model is developed and tested on a set of primary data of Danish firms and their foreign market operations. The empirical study suggests that factors considered essential in traditional internationalization process theory, such as experiential learning, explains only a very limited part of perceived knowledge gaps. When factors pertaining to the concepts of absorptive capacity and superstitious learning are added, the explanatory power improves significantly. Apparently, our understanding of firms' internationalization processes can be enriched by insights from organizational learning literature.

Keywords: Internationalization, knowledge gap, absorptive capacity, superstitious learning

JEL Classification: D21, F23, M10

Suggested Citation

Lyles, Marjorie A. and Pedersen, Torben and Preuss, Björn, Closing the Knowledge Gap in Foreign Markets - A Learning Perspective (October 2005). SMG Working Paper No. 6/2005, Available at SSRN: https://ssrn.com/abstract=982077 or http://dx.doi.org/10.2139/ssrn.982077

Marjorie A. Lyles

Indiana University - Kelley School of Business - Management & Entrepreneurship ( email )

Bloomington, IN 47405
United States

Torben Pedersen

Copenhagen Business School - Department of Strategic Management and Globalization ( email )

Porcelænshaven 24
Frederiksberg, 2000
Denmark
+45 3815 3030 (Phone)
+45 3815 3035 (Fax)

HOME PAGE: http://www.cbs.dk/staff/tp

Björn Preuss (Contact Author)

Copenhagen Business School ( email )

Solbjerg Plads 3
Frederiksberg C, DK - 2000
Denmark

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