Knowledge-based view on internationalization and effect of product/service types

The paper explores the internationalization process of high-tech firms from the knowledge-based perspective emphasizing technological knowledge-related issues. In our view, the competitive advantage of high-tech firms, and hence their motives for internationalization are primarily based on their organizational and technological resources and capabilities. In the Infocom sector (i.e. the combination of the converging information and communication technologies (ICT) industry and media industry), which is the focal industry in the study, the firms are generally founded around product and/or service innovations. Because of this we suggest that the product/service characteristics have an effect on internationalization. However, the underlying core competencies are based on the knowledge of the personnel behind the innovations. Unfortunately, the very concept of knowledge is often used in an ambiguous way in many theories of internationalization. In order to overcome this problem we suggest a knowledge-based theory of the firm as a point of departure for a modern internationalization theory