Tacitness, Learning, and International Expansion: A Study of Foreign Direct Investment in a Knowledge-Intensive Industry

@article{Martin2003TacitnessLA,
  title={Tacitness, Learning, and International Expansion: A Study of Foreign Direct Investment in a Knowledge-Intensive Industry},
  author={Xavier Martin and Robert Salomon},
  journal={Organization Science},
  year={2003},
  volume={14},
  pages={297-311}
}
This paper examines the impact of knowledge tacitness on a firm’s propensity to establish plants in foreign rather than domestic locations. Our predictions build on knowledge-based, internalization, and evolutionary theories of foreign direct investment. We argue that the tacitness of technology has an inverted-U effect on the propensity to undertake foreign investment. We also expect that as a firm learns about a technology, it will become more likely to make foreign investments. We examine… CONTINUE READING
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