FIRM INTERNATIONALIZATION, TRANSACTION COSTS AND STRATEGIC CHOICE

Abstract

Export expansion is usually conceptualized as a progressive organizational commitment ultimately leading to an international enterprise. However, such deterministic export behavior models are irreconcilable with a perspective which sees businesses as developing export structures to fit existing and potential foreign market opportunities. This paper examines how the formal administrative arrangements that firms use for conducting foreign trade are peculiarly fitted to achieve specific export performances. It shows how changes in these arrangements represent primarily organizational strategies for handling export transaction costs more efficiently.