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Building capabilities for international operations through networks: a study of Indian firms

Listed author(s):
  • B Elango

    (Management and Qualitative Methods Department, College of Business, Illinois State University, Normal, IL, USA)

  • Chinmay Pattnaik

    (Yonsei School of Business, Yonsei University, Seoul, Korea)

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    In this study we seek to explain how firms from emerging markets build capabilities to operate in international markets through learning from parental networks. The building of these capabilities is of particular interest, as firms from emerging markets may not necessarily possess the monopolistic advantages commonly referred to in IB literature, which allow a firm to succeed in international markets. Using lagged cross-sectional regression models on a sample of 794 Indian firms, we found that firms draw on the international experience of their parental and foreign networks to build such capabilities. Findings also indicate that network scope is beneficial for increasing exposure to international markets only in the case of networks that are either small or medium sized. Additionally, we found that firms lacking market power in their home market benefit through foreign partnerships when internationalizing operations. Journal of International Business Studies (2007) 38, 541–555. doi:10.1057/palgrave.jibs.8400280

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    Article provided by Palgrave Macmillan & Academy of International Business in its journal Journal of International Business Studies.

    Volume (Year): 38 (2007)
    Issue (Month): 4 (July)
    Pages: 541-555

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    Handle: RePEc:pal:jintbs:v:38:y:2007:i:4:p:541-555
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