THE INFLUENCE OF EXPERIENCE ON THE INTERNATIONALIZATION OF THE FIRM (CASE STUDY ON JAPANESE COMPANY IN THAILAND)

Abstract

The aim of thesis is to study about the influence of experience on the internationalization approach. The internationalization approaches include stage model approach, economic approach, network approach, and born global approach. Experience is divided into three different categories as level of experience (individual, firm, and network experience), types of experience (general international, target country, internationalization, and institutional/co-operation experience), and scope of experience (intensity and diversity). Research method apply in this research is qualitative with structured questions by using multiple-case study. Population of the cases was selected by criteria as 1) Japanese firms to ensure that the origin of thinking or culture is likely the same 2) Electronic industry to ensure and limit the difference in external forces 3) Investment has to be same destination, Thailand 4) Using different internationalization approach to study the reason why firms originated from Japan invest in Thailand in the same market have different pattern in internationalization approach. Result of this study then answering the question that “Is there any reason or behavior of experience that manipulate dissimilar choice or method in internationalization approach?”.

Firms classify different experiences in unique important level depend on the approach of internationalization they pursue. On the other word, experience required in different internationalization approach is dissimilar. Result shown that even having the same origin country, invest in specific country, and in the same industry, they still have dissimilar way of internationalization process. Moreover, it was interesting to acknowledge that they all applied same approach, named network approach. Regarding to the fact that Japan culture is high in collectivism, this probably be the reason why all Japanese firms in the case study follow network approach.