Conceptual Contribution of Social Network Analysis to Internationalization Research

Abstract

Purpose: The purpose of this paper is to demonstrate how specific features of social network analysis (SNA) can sharpen our knowledge about firm internationalization from a network perspective; particularly in the context of liability of outsidership (LOO) approach. It aims to build a more comprehensive understanding of overcoming LOO through revealing how networks’ structural attributes affect the willingness and ability of both outsider and insider to build an insidership position in a relevant network. SNA is offered as an appropriate analytical research tool to reveal structural characteristics of networks. Design/methodology/approach: The article draws on the extant literatures on internationalization, LOO and social network analysis to identify to what extent SNA can be benefited as an analytical research tool in LOO-focused internationalization research. It provides specific SNA measurement constructs and related propositions. Findings: Social Network Analysis, as an analytical research tool, provides strong potential for better understanding the internationalization phenomena through deeply and systematically revealing how structural attributes of networks affect overcoming LOO and the value of insidership. Originality/value: This study proposes SNA as an appropriate and robust analytical tool to reveal structural and positional attributes of networks which affect the willingness and ability of both insiders and outsiders to overcome LOO to a relevant network. It also adds a more comprehensive inside-out perspective into LOO discussion which has been extensively dominated by outside-in perspective in the internationalization literature. Keywords: Social Network Analysis, Internationalization, Liability of Outsidership, Network Structure, RBV