Firms pursue knowledge internalization to facilitate interna-tional business activities through a reduction of uncertainty(Liesch and Knight 1999). The traditional internalizationtheory of foreign direct investment (FDI) explains FDI expan-sion as the internalization of tangible assets (Buckley andCasson 1976). Knowledge internalization is the process ofinternalizing information about foreign markets, and it is anintangible asset. This asset is by no means of less value than
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