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| Author: | Gronhaug, K. Haugland, S.A. |
| Title: | A transaction cost approach to a paradox in international marketing |
| Journal: | Scandinavian Journal of Management
2005 : MAR, VOL. 21:1, p. 61-76 |
| Index terms: | fishing industry international marketing internationalization transaction costs Scandinavia Nordic countries Norway |
| Freeterms: | disintegration |
| Language: | eng |
| Abstract: | Why do companies that make specific downstream investments as they start international operations, sometimes turn to more market-like arrangements as they gain international experience and their international sales increase? This paradox in international marketing is this paper's key question. The concept of dynamic or temporary governance costs is used to examine the paradox. The pattern of internationalization in the Norwegian farmed salomon industry provides an example whereby Norwegian exporters establish their own sales offices in several international markets in the early stages of internationalization, but subsequently disintegrated vertically and came to rely on more market-like arrangements. |
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