Choosing foreign operation modes? Your firm’s knowledge needs matter

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Friday, January 21, 2022 - 21:15

It is often assumed that internationalising firms choose between single, discrete foreign operation mode alternatives and stick with them. The reality of international business is much messier - firms often combine and change their foreign operation modes, but we know little of how and why they do so. Dr. Tatiana Andreeva (School of Business, Maynooth University), together with Ciara O’Higgins and Nekane Aramburu Goya (University of Deusto, Spain) explored these questions, studying the Latin American activities of a Spanish firm over a 21-year period. They found that enabling the necessary knowledge to flow was one of the key drivers to combine several foreign operation modes simultaneously; and as the firm’s knowledge needs changed over time, this led to adjustments to the mode combination. You can read the full paper here.