The last two decades has witnessed a growing interest in the area of internationalisation. However, despite the extensive use of the term internationalisation, few real attempts have been made to provide an operational definition of its meaning. Internationalization has been described as the outward movement of a firm’s operations. Piercy (1981), Turnbull (1985); it has also been defined as “…the process of increasing involvement in international operations” (Welch and Luostarinen, 1988, p. 36). Nevertheless, a universally accepted definition of the word “internationalisation” remains elusive with diverse interpretations being found in the literature. For example, one view considers internationalisation to be a pattern of investment in foreign markets based on logical economic analysis of ownership, location advantages and internalisation (Williamson 1975, Dunning 1988). A second view considers internationalisation to be a continuous process of evolution (Melin 1992) whereby a firm’s increase in international operations is a function of improved knowledge and market commitment (Johanson and Vahlne 1977).

A third view, though process-based, argues that internationalisation does not often entail a “smooth, unalterable course of development,” and may comprise of both ‘outward’ and ‘inward’ patterns of international growth (Welch and Luostarinen 1988, 1993). In addition, though Johanson and Vahlne (1977) imply that internationalisation is apparent for the most part in the markets entered and entry modes, Welch and Luostarinen (1988) argue that internationalisation also reflects in the firm’s market offering, organisational competence, workforce and structure.

Beamish (1990, p. 77) offers a fourth view on internationalisation by defining it as “…the process by which firms both increase their awareness of the direct and indirect influence of international transactions on their future, and establish and conduct transactions with other countries.”

This definition is possibly most practical in that it combines aspects of the three views discussed into one holistic explanation of the internationalisation concept. To begin with, Beamish’s (1990) definition integrates the firm’s pattern of foreign investments with its internal learning; by doing so, acknowledges that internationalisation has both economic and behavioural components. This definition is also process-based; which identifies the evolutionary nature of internationalisation. In addition, the definition is not restricted to outward patterns of investment and thus allows for the firm to be involved with inward internationalisation activities such as imports or countertrade. Finally, the definition suggests that relationships established in the course of international transactions could influence the organisation’s expansion to other countries.

Stemming from Beamish (1990) definition, three approaches to internationalisation can be identified:

1) The Economic approach

2) The Behavioural approach

3) The Relationship approach