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Trust and firm internationalization: Dark-side effects on internationalization speed and how to alleviate them

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  • Oliveira, Luis
  • Johanson, Martin

Abstract

In this conceptual paper, we draw attention to the conflicting effects that trust may have on internationalization speed, exploring the fact that trust is a major component of the influential Uppsala Model of firm internationalization and considering internationalization speed as a multidimensional phenomenon. Building on the literature on trust and international business relationships, we argue that internationalization speed is initially fostered by the bright side of trust but its dark side prevails as the firm strengthens its relationships with foreign business partners. Inspired by research on how to suppress the dark side of trust before it emerges, we identify the choice between causation and effectuation as important in alleviating the negative effects of trust on internationalization speed. Therefore, besides making explicit the role of trust in understanding internationalization speed, our paper contributes to the International Business literature by examining the effects of decision logic in the internationalization process.

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  • Oliveira, Luis & Johanson, Martin, 2021. "Trust and firm internationalization: Dark-side effects on internationalization speed and how to alleviate them," Journal of Business Research, Elsevier, vol. 133(C), pages 1-12.
    • Handle: RePEc:eee:jbrese:v:133:y:2021:i:c:p:1-12
    DOI: 10.1016/j.jbusres.2021.04.042
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