ICC Advance Access published online on April 29, 2009
Industrial and Corporate Change, doi:10.1093/icc/dtp008
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Modeling the diffusion of strategies: an application to exporting
Correspondence: Sofronis Clerides, Department of Economics, University of Cyprus, P.O. Box 20537, CY-1678 Nicosia, Cyprus. e-mail: s.clerides{at}ucy.ac.cy.
Correspondence: George Kassinis, Department of Public and Business Administration, University of Cyprus, P.O. Box 20537, CY-1678 Nicosia, Cyprus. e-mail: kassinis{at}ucy.ac.cy.
We examine whether the spread of an exporting strategy can be characterized as a diffusion process using a general framework that accounts for attrition and changes in the pool of potential adopters and allows the diffusion rate to vary according to firm and market characteristics. Our findings indicate that the diffusion of exporting is described well by the internal model of diffusion. Thus, this framework may be useful in modeling the spread of other strategies. The diffusion rate is found to be strongly related both to firm characteristics and to past adopter performance.