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Legitimacy and accelerated internationalisation: An Indian perspective

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  • Bangara, Athena
  • Freeman, Susan
  • Schroder, William

Abstract

This paper extends the institutional theory perspective by examining the strategic behaviour of founders of smaller service firms in a key emerging economy—India. Building on accelerated internationalisation and legitimacy literature in the emerging market context, we provide a new perspective, emerging market aggressiveness, which explains why founders/managers are not always passive recipients of their environment. Their selections of locations are dependent on the vision and stretch goals of the founder and their ability to gain legitimacy quickly to move that vision to a reality. They do not appear to be limited by their potential liabilities of newness, foreignness, emergingness or outsidership. They adopt committed modes of entry from the outset to build their legitimacy and reduce their liability as an outsider. Using a qualitative multiple case study approach, we demonstrate that managers are able to use proactive, planned and unplanned strategies simultaneously, in order to quickly prepare themselves to take advantage of transient international opportunities, ahead of their competitors in advanced markets.

Suggested Citation

  • Bangara, Athena & Freeman, Susan & Schroder, William, 2012. "Legitimacy and accelerated internationalisation: An Indian perspective," Journal of World Business, Elsevier, vol. 47(4), pages 623-634.
  • Handle: RePEc:eee:worbus:v:47:y:2012:i:4:p:623-634
    DOI: 10.1016/j.jwb.2011.09.002
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    References listed on IDEAS

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    Cited by:

    1. Felzensztein, Christian & Stringer, Christina & Benson-Rea, Maureen & Freeman, Susan, 2014. "International marketing strategies in industrial clusters: Insights from the Southern Hemisphere," Journal of Business Research, Elsevier, vol. 67(5), pages 837-846.
    2. Conti, Claudio Ramos & Parente, Ronaldo & de Vasconcelos, Flávio C., 2016. "When distance does not matter: Implications for Latin American multinationals," Journal of Business Research, Elsevier, vol. 69(6), pages 1980-1992.
    3. repec:spr:manint:v:55:y:2015:i:2:d:10.1007_s11575-015-0242-y is not listed on IDEAS
    4. Liu, Xiaohui & Gao, Lan & Lu, Jiangyong & Lioliou, Eleni, 2016. "Does learning at home and from abroad boost the foreign subsidiary performance of emerging economy multinational enterprises?," International Business Review, Elsevier, vol. 25(1), pages 141-151.
    5. Milena Ratajczak-Mrozek, 2015. "Czas w badaniach nad internacjonalizacją przedsiębiorstw," Gospodarka Narodowa, Warsaw School of Economics, issue 4, pages 49-67.
    6. Wang, Dan & Feng, Taiwen & Freeman, Susan & Fan, Di & Zhu, Cherrie Jiuhua, 2014. "Unpacking the “skill – cross-cultural competence” mechanisms: Empirical evidence from Chinese expatriate managers," International Business Review, Elsevier, vol. 23(3), pages 530-541.
    7. Thite, Mohan & Wilkinson, Adrian & Budhwar, Pawan & Mathews, John A., 2016. "Internationalization of emerging Indian multinationals: Linkage, leverage and learning (LLL) perspective," International Business Review, Elsevier, vol. 25(1), pages 435-443.
    8. Nair, Smitha R. & Demirbag, Mehmet & Mellahi, Kamel, 2016. "Reverse knowledge transfer in emerging market multinationals: The Indian context," International Business Review, Elsevier, vol. 25(1), pages 152-164.

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