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Towards a New Agenda for the Study of Business Internationalization: Integrating Markets, Institutions and Politics

  • Rodrigues, S.B.
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    Business is becoming increasingly international. At the same time, governments are intervening more in the conduct of business. A further development is the growing significance of emerging economies, many of which have a tradition of active government involvement with business. Taken together, these trends make it imperative to understand the relationships between firms and their institutional contexts. Conventional theories adopt an over-rationalized view of these relationships international business. Their apolitical perspective misses the fact that in order to build and maintain international operations, firms need to develop political relations with governments and institutions in home countries and abroad. The aim of this lecture is to develop an alternative perspective with particular reference to the internationalization of firms, large and small. This considers how multinationals gain international positions through bargaining power with foreign governments. By contrast, SMEs face liabilities in dealing with foreign governments and instead often have to achieve internationalization through networking with other SMEs, with domestic communities and support agencies via various forms of social innovation. The lecture concludes that political and social innovation perspectives open new research avenues in the field of international business.

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    File URL: http://repub.eur.nl/pub/20068/EIA-2010-043-STR.pdf
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    Paper provided by Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam. in its series ERIM Inaugural Address Series Research in Management with number EIA-2010-043-STR.

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    Date of creation: 17 Jun 2010
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    Handle: RePEc:ems:euriar:20068
    Contact details of provider: Postal: RSM Erasmus University & Erasmus School of Economics, PoBox 1738, 3000 DR Rotterdam
    Phone: 31-10-408 1182
    Fax: 31-10-408 9020
    Web page: http://www.erim.eur.nl/
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    1. Henk W. Volberda & Arie Y. Lewin, 2003. "Co-evolutionary Dynamics Within and Between Firms: From Evolution to Co-evolution," Journal of Management Studies, Wiley Blackwell, vol. 40(8), pages 2111-2136, December.
    2. Ojala, Arto, 2009. "Internationalization of knowledge-intensive SMEs: The role of network relationships in the entry to a psychically distant market," International Business Review, Elsevier, vol. 18(1), pages 50-59, February.
    3. Mara Faccio, 2006. "Politically Connected Firms," American Economic Review, American Economic Association, vol. 96(1), pages 369-386, March.
    4. John H Dunning, 2003. "Some antecedents of internalization theory," Journal of International Business Studies, Palgrave Macmillan, vol. 34(2), pages 108-115, March.
    5. Jean J Boddewyn, 1988. "Political Aspects of MNE Theory," Journal of International Business Studies, Palgrave Macmillan, vol. 19(3), pages 341-363, September.
    6. Hellman, Joel S. & Jones, Geraint & Kaufmann, daniel, 2000. ""Seize the state, seize the day": state capture, corruption, and influence in transition," Policy Research Working Paper Series 2444, The World Bank.
    7. Jan Johanson & Jan-Erik Vahlne, 2009. "The Uppsala internationalization process model revisited: From liability of foreignness to liability of outsidership," Journal of International Business Studies, Palgrave Macmillan, vol. 40(9), pages 1411-1431, December.
    8. Suzana Rodrigues & John Child, 2008. "The Development of Corporate Identity: A Political Perspective," Journal of Management Studies, Wiley Blackwell, vol. 45(5), pages 885-911, 07.
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