Effect of Variation on Knowledge Accumulation in the Internationalization Process

Abstract

This article examines the effect of variation in the geographical scope of international business operations on experiential knowledge development in the internationalization of the firm. Based on learning theory, this article develops five hypotheses on the effects of variation on three interrelated components of international experiential knowledge: internationalization knowledge, business knowledge, and institutional knowledge. LISREL analysis indicates that variation has a positive effect on the accumulation of experiential knowledge in internationalizing firms. In particular, it demonstrates that internationalization knowledge is a key variable that mediates the effect of variation on the other knowledge variables.