This study investigates the impact of experiential knowledge on the perceived cost of the internationalization process. Using a behavioral approach, three hypotheses are developed and tested on a sample of 362 service firms. The hypotheses focus on the relationship between the lack of knowledge in foreign business, foreign institutions, and firm internationalization, and the perceived cost in the internationalization process. The study uses a LISREL-based structural model to analyze the data. The findings show that a lack of internationalization knowledge has a strong impact on the lack of both business and institutional knowledge, which in turn influences the perceived cost in internationalization. However, there is no direct effect of lack of internationalization knowledge on perceived cost in internationalization. The study also finds that the perceived cost is influenced by the firm's lack of knowledge about foreign business and institutional factors, as well as the firm's lack of internationalization knowledge. The study highlights the importance of experiential knowledge in the internationalization process and its impact on the perceived cost. It also shows that the internationalization process is influenced by the firm's experience, and that firms with more experience are more likely to choose certain entry modes. The study also finds that the perceived cost of internationalization is influenced by the firm's experience and the level of knowledge it has about foreign markets. The study concludes that experiential knowledge is a critical factor in the internationalization process, and that the perceived cost of internationalization is influenced by the firm's level of experiential knowledge. The study also shows that the internationalization process is a complex and dynamic process that involves the accumulation of experiential knowledge and the development of organizational routines and structures. The study provides insights into the factors that influence the perceived cost of internationalization and the role of experiential knowledge in the internationalization process.This study investigates the impact of experiential knowledge on the perceived cost of the internationalization process. Using a behavioral approach, three hypotheses are developed and tested on a sample of 362 service firms. The hypotheses focus on the relationship between the lack of knowledge in foreign business, foreign institutions, and firm internationalization, and the perceived cost in the internationalization process. The study uses a LISREL-based structural model to analyze the data. The findings show that a lack of internationalization knowledge has a strong impact on the lack of both business and institutional knowledge, which in turn influences the perceived cost in internationalization. However, there is no direct effect of lack of internationalization knowledge on perceived cost in internationalization. The study also finds that the perceived cost is influenced by the firm's lack of knowledge about foreign business and institutional factors, as well as the firm's lack of internationalization knowledge. The study highlights the importance of experiential knowledge in the internationalization process and its impact on the perceived cost. It also shows that the internationalization process is influenced by the firm's experience, and that firms with more experience are more likely to choose certain entry modes. The study also finds that the perceived cost of internationalization is influenced by the firm's experience and the level of knowledge it has about foreign markets. The study concludes that experiential knowledge is a critical factor in the internationalization process, and that the perceived cost of internationalization is influenced by the firm's level of experiential knowledge. The study also shows that the internationalization process is a complex and dynamic process that involves the accumulation of experiential knowledge and the development of organizational routines and structures. The study provides insights into the factors that influence the perceived cost of internationalization and the role of experiential knowledge in the internationalization process.