Failure in internationalization: motivation and self-efficacy after withdrawal from foreign markets

Abstract

The existing literature on withdrawal from foreign markets leaves several questions unanswered. We propose alignment between cohesive learning from failure and the intrinsic motivation to reemerge after failure. The study contends that failure is not considered an ultimate demise but as a precursor to new birth. Interviews with eight firms that faced withdrawal from international markets demonstrate the importance of failure as rivaling that of success and as cultivating self-efficacy. We conclude that learning from failure enhances the perceived ability to reemerge in international markets, and entrepreneurs recommit themselves to businesses with new perspectives.