The process of international expansion in knowledge-intensive settings

Cross-border expansion of firms in knowledge-intensive industries and settings is driven by various factors including the knowledge available at the firm's home base and the level of knowledge that a firm can potentially appropriate through international expansion. This paper examines the process of international expansion in greater detail. I compare expansion decisions by established firms in the electronics and pharmaceutical industries with expansion decisions by entrepreneurial startups. I find that the characteristics of the expansion process are determined by the intra-firm context as well as by motives for international expansion. I also find that the intra-firm context for international expansion can put established firms at a considerable disadvantage relative to entrepreneurial firms.