Uncovering international market-exit processes: A comparative case study

Abstract

In this article, two cases on exit decisions from international markets are described and analyzed. The authors argue that the study of companies withdrawing from an international market venture has been largely neglected and merits a place in present internationalization theories. This exploratory comparative case study is considered a starting point toward middle-range theory building on the psychological phenomena and processes that underlie and drive market-exit decision making and implementation. Three processes are uncovered: (a) the escalation of commitment, an inhibitor of change process; (b) the creation of strategic flexibility, an accelerator of change process; and (c) a confrontation between processes (a) and (b)-a dialectical process. The article ends with a discussion of the limitations of this study and a call for longitudinal strategy process research, (C) 2000 John Wiley & Sons, Inc.