Information internalisation and internationalisation-Evidence from Vietnamese firms

Publisher:
Pergamon
Publication Type:
Journal Article
Citation:
International Business Review, 2006, 15 (6), pp. 682 - 701
Issue Date:
2006-01
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Previous research on internationalisation has mainly focused on the collection and use of information. In this article we examine the role of information internalisation in international business activities of Vietnamese firms. A theoretical model incorporating key antecedents and outcomes of information internalisation is developed. The antecedents are market orientation and learning orientation, and the outcomes are international orientation and foreign sales intensity. A survey of 144 Vietnamese internationalising firms was conducted to test the model in conjunction with its two competing models by means of a two-step approach to structural equation modelling. We found that both information internalisation has direct and indirect effects (mediated by international orientation) on foreign sales intensity. Further, market orientation and learning orientation underlie information internalisation. Implications for managers and directions for future research are also addressed.
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