Exploring the subsequent stage of internationalisation: German renewable energy firms in emerging and developing markets

While most of the internationalisation literature focuses on the first stage of internationalisation, the subsequent stages specifically for international new ventures (INVs) remain less explored. However many INVs from developed countries venture into emerging and developing markets in the subsequent stage of internationalisation, where the institutional distance is particularly large. The strategies applied by firms in the subsequent stage of internationalisation differ greatly from the strategies adopted in the first stage of internationalisation in various aspects. These include pace, which refers to the speed of the internationalisation process, pattern, referring to the market entry mode chosen, and the scope, indicating the spread and differences (geographically and institutionally) of markets entered. Informed by institutional theory this research investigates the subsequent internationalisation process of German renewable energy firms into developing and emerging markets as institutions play a major moderating role in the subsequent stage of a firm’s internationalisation process. The conceptual framework proposed in the research will contribute to a deeper understanding of how pace, pattern and scope of an INV’s subsequent internationalisation strategy are impacted by host country institutions in developing and emerging markets.