Firms increase commitment to foreign markets with growing experience in
international business. The basic premise of the internationalization process
theory is that knowledge is acquired through experience abroad. Maud Oortwijn's
research work finds how this learning process within the firm is reflected in
the managerial host country assessment. Managers perceive the new host country
more optimistic with increasing experience in international business.
International Business scholars often report on macro-economic factors and
post-entrance business performance. This research studies 25 firms on 54 foreign
entry commitment choices while in the process of decision making for foreign
entrance. This also allows for unique insight in the Go/No-Go decision. Some
firms decide to cancel or postpone plans, while others continue with different
entry modes.