What Doesn't Kill the MNE, Makes It Stronger? Impact of De-internationalization Experience on Re-internationalization

Abstract

Despite the centrality of experience in the internationalization of multinational enterprises (MNEs), we need to learn more about the role that the experience of de-internationalization plays in affecting internationalization. Extant literature on de-internationalization focuses on antecedents of de-internationalization, and re-internationalization research presents that reentry modes differ from initial entry modes. This neglects the role of de-internationalization experience in affecting internationalization. The aim of this thesis was to study the role of de-internationalization experience in altering reinternationalization commitment and speed. This study collected data on 71 events of MNEs’ internationalization, de-internationalization, and re-internationalization. News sources and research papers were used to understand each case’s reason for the exit (market related, nonmarket related, strategic), degree of exit (partial vs. complete), nature of exit (forced vs. voluntary), and intensity of de-internationalization experience instilled in the MNE (minor, moderate, and major) (Kafouros, Cavusgil, Devinney, Ganotakis, & Fainshmidt, 2022). Inspired by Surdu, Mellahi, and Glaister (2019), a unique database was compiled that coded for these variables. Results of this study indicate that internationalization commitment and speed are affected by industry type, re-internationalization speed is affected by exit degree, and both re-internationalization commitment and speed are affected by reason for exit. This thesis studies MNEs’ internationalization and re-internationalization through the lens of the Uppsala model due to its emphasis on experience. It draws also on Welch and Welch’s (2009) conceptualization of de-internationalization being a unique and enduring experience that can affect internationalization. This study contributes to internationalization and reinternationalization research by exploring the role of a particular type of internationalization experience (de-internationalization experience) in altering internationalization.