Abstract:
De-internationalisation, defined as the reduction of international business operations in
part or in full, has been theoretically acknowledged for more than a decade as a critical
component of the complexities of firm internationalisation. The study explores how a
firm's failure to adequately understand and adapt to the risk environment could result in
the firm's de-internationalisation. Furthermore, the study explores the influence of market
research and proximity on the accumulation of knowledge. Qualitative research was
undertaken using semi-structured face-to-face interviews with senior managers of
emerging multinational firms in South Africa.
The study found that the Internationalisation of a business requires access to and growth
in knowledge, with performance dependent on both changes in the risk environment and
managerial adaptability. Knowledge required essentially may include varying market
dynamics and customer needs, competition, and cultural differences. A lack of these
could influence the decision to de-internationalise foreign business operations. Even
though there is no such thing as complete knowledge, market research and proximity
have been found to influence the accumulation of knowledge. However, the extent to
which proximity influences knowledge accumulation is still debatable.
