The area of “international entrepreneurship” has received significant scholarly attention. However, the question of “why don’t firms go international?” has received much less attention. Two possible explanations for a lack of internationalization are domestic success and entry barriers. The domestic success argument, inherently assumed in the Uppsala model of firm internationalization (Johanson & Vahlne, 1997) suggests that firms will pursue international activities only when their domestic markets have matured. Conversely, the barriers argument suggests firms do not internationalize because of significant differences between the headquarters country and other countries.
Arbaugh, Ben; Camp, Michael; and Cox, Larry W.
"DOES DOMESTIC SUCCESS OR ENTRY BARRIERS BETTER EXPLAIN ENTREPRENEURIAL FIRM NON-INTERNATIONALIZATION? (SUMMARY),"
Frontiers of Entrepreneurship Research: Vol. 26
, Article 5.
Available at: http://digitalknowledge.babson.edu/fer/vol26/iss22/5