Abstract
During the constant research of internationalization, firms have been focused on as it is the main body that implements strategies. However, the role of a country in the process of internationalization has been ignored for a long time. Where does country-specific advantage come from? What’s the relationship between country-specific advantage and firm-specific advantage? These questions haven’t been understood clearly yet. Home country provides necessary infrastructure, service conditions, resources and institutions guarantee, which is the origin of firm’s core competition advantages; while host country’s characteristic will influence the way and path of internalization. It is of great significance to understand how to transform country-specific advantages into firm- specific advantages in the process of internationalization of multinational firms.
Highlights
The international competitive ability of enterprise consists of country-specific advantages and firm-specific advantages that both are indispensable for a successful international enterprise
While Firm-Specific Advantages (FSAs) of home country are in favor of primitive accumulation of enterprises’ advantages, FSAs of host country are able to attract a large number of enterprises to enter, which further contribute to the formulation of FSAs
Existing literatures on country-specific advantages are not mature enough, its importance has become increasingly outstanding, especially the home country advantage. It should be the key point of future research that how to take advantage of country-specific advantages in the home country and internalize it as enterprise’ internal advantage and thereby make enterprise in a dominant position in international competition
Summary
The international competitive ability of enterprise consists of country-specific advantages and firm-specific advantages that both are indispensable for a successful international enterprise. CSAs are the advantages of a variety of country-specific resource allocation or unsynchronized uneven all over the country and forms a national comparative advantage. Country-specific advantages are all kinds of proprietary resources that a country has, and can be freely available to any business; it is a system that all the firms can share the advantages [2]-[5]. Zhang indicates that the CSAs of FDI is an important driving force for China, Chinese investment types in developed countries are mainly market-seeking (differentiated products), strategic asset-seeking [9]; the investment types in developing countries are mainly natural resources seeking and market seeking (standardized products) [8]. While FSAs of home country are in favor of primitive accumulation of enterprises’ advantages, FSAs of host country are able to attract a large number of enterprises to enter, which further contribute to the formulation of FSAs
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