Abstract

International expansion entails boundary-spanning search behaviors to draw upon new knowledge in institutional and product domains. To effectively confront with challenges of exploration in these two domains, a firm may span organizational boundaries by accessing relational resources of foreign partners. Our paper examines the role of relational resources in facilitating (undermining) the institutional and product exploration strategies in the course of international expansion. We argue that due to disparities in the nature of institutional and product explorations, reliance on relational resources has asymmetric impact on performance consequences of these two strategies. Whereas reliance on relational resources furthers the benefits conferred from exploration in the institutional domain, benefiting from product exploration in foreign markets stands on reducing the dependence on relational resources and internalization of international activities. Empirical results based on 234 exporting firms in three emerging economies support our theorized relationships.

Full Text
Paper version not known

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call

Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.