P/B/65. Internationalization Theory of the firm

This paper discusses internationalisation theory, stage theory, milestones of the popular stage theory of internationalization and the criticism it has received. writer argues that stages theory of internationalization is a valid theory, but only explains a part of the phenomenon at the firm level. As such, it cannot be used alone as a basis for predicting firm internationalization behaviour, as it fails to address a multitude of other factors affecting the internationalization process. Challenges to the stage theories are analysed and conflicting findings are explained in the light of broader internationalisation concept.