Global or Local Networks: Which Shape Firms' Opportunity Development in International Markets

Abstract

Considering international entrepreneurship as a process of opportunity development, we integrate the opportunity-based perspective and network theory to investigate how global and local networks influence opportunity development in the internationalization process of the firm. The empirical evidence is based on a cross-sectional sample of 199 Taiwanese firms. The results highlight that global networks have a significant impact on opportunity exploration, while local networks enhance opportunity exploitation. We also find that, when firms are active in opportunity development, they are capable of enhancing their international competitiveness. It also confirms that ambidexterity has a positive impact on firms’ international performance.