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The missing link between awareness and use in the uptake of pro-internationalization incentives

Listed author(s):
  • Torres, Miguel Matos
  • Clegg, L. Jeremy
  • Varum, Celeste Amorim

We investigate the process by which firms become participants in official programmes of public support designed to promote outward internationalization. This study builds on previous research that has established the distinct factors associated with firms’ awareness and use of public support measures. These earlier studies have also shown that deficiencies within programmes manifest in low participation rates. However, scholars have not extended this reasoning to focus on the underlying processes involved, and have paid little attention to the steps through which firms elect to use public support, and how support operates upon, and within, the firm. In particular, the link between awareness of public incentives towards internationalization and the use of these incentives has been overlooked. General failure to understand this link is a potential source of policy inefficiency, reducing the effectiveness of those public programmes that employ incentives. We pose three research questions to examine the concept of such a link: (1) Do firms select public incentives that compensate for a lack of resources or capabilities in their possession? (2) Do firms react primarily to internal or external exigencies, for example, internal financial constraints or, rather, are they responding to unfolding circumstances, such as the more demanding market conditions experienced on internationalization? And (3) do firms use public support to “externalize” the increased risk to which they are exposed as internationalization proceeds, and thereby protect their external activities and investments from loss?

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Article provided by Elsevier in its journal International Business Review.

Volume (Year): 25 (2016)
Issue (Month): 2 ()
Pages: 495-510

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Handle: RePEc:eee:iburev:v:25:y:2016:i:2:p:495-510
DOI: 10.1016/j.ibusrev.2015.09.003
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