Donaldson's Model

Donaldson’s Model of Internationalization emphasizes that companies expand into foreign markets through a series of steps, guided by their desire to reduce risk and uncertainty. It suggests that firms first declare their intention to internationalize, then gradually test and enter foreign markets, often beginning with less resource-intensive methods. Over time, they expand their commitment as they gain experience and confidence. The model highlights how organizational motives, risk assessments, and learning influence the pace and method of international expansion, making it a strategic process rather than a sudden or impulsive move.