Intention to De-Internationalise: Foreign-Based Competition at Home and the Effect of Decision-Makers’ Role

Abstract

Objective: The objective of the article is to investigate how decision-makers’ perception of the level of foreign-based competition in the home market affects their intention to de-internationalise and how decision-makers’ role moderates this relationship.

Research Design & Methods: A set of hypotheses is tested using regression analysis on a sample of 96 participants (entrepreneurs and managers) originating from Poland.

Findings: The results show that the perceived level of foreign-based competition in the home market is positively and significantly associated with the intention to de-internationalise. We find a statistically significant moderating effect of decision-makers’ role. In the case of managers, the intention to de-internationalise increases with the level of perceived foreign-based competition in the home industry, while in the case of entrepreneurs the relationship is negative. Firm international exposure and international experience are negatively associated with the intention to de-internationalise.

Implications & Recommendations: The results indicate the role of individual cognition and home market context in the non-linear internationalisation process.

Contribution & Value Added: We demonstrate that the perception of the increased level of foreign-based competition in the home market and decision-makers’ role should be considered with the Uppsala internationalisation process. The study findings draw attention to the nature of the manager-owner relationship, resonating with the agency theory in that the manager’s self-interest is bounded by the reciprocal behaviour of the owner.

Keywords

De-internationalisation; Uppsala model; decision-making

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