IDEAS home Printed from https://ideas.repec.org/p/iik/wpaper/404.html
   My bibliography  Save this paper

Geographic cluster or global linkages? What accelerate emerging market firms foreign entry speed

Author

Listed:
  • Sandeep Yadav

    (Indian Institute of Management Kozhikode)

  • Rajesh Srivinas Upadhyayula

    (Indian Institute of Management Kozhikode)

Abstract

This study examines, whether emerging market firms use global linkages as a substitute to the location in geographical clusters to promote the speed of foreign market entry. Drawing from economic geography, we find a slower speed of foreign market entry by firms located outside geographical clusters in the home country as compared to firms inside clusters. This relationship is further moderated by the firm's cognitive proximity in the foreign markets (measured as a firm’s extent of informal global linkages). Cognitive proximity increases the transfer of tacit knowledge and weakens the negative impact of firm cluster absence on the speed of foreign entry. We test the proposed hypotheses using the cox proportional hazard model based on a longitudinal sample of 747 Indian firms in the information technology industry (IT) from 2000 to 2019.

Suggested Citation

  • Sandeep Yadav & Rajesh Srivinas Upadhyayula, 2021. "Geographic cluster or global linkages? What accelerate emerging market firms foreign entry speed," Working papers 404, Indian Institute of Management Kozhikode.
    • Handle: RePEc:iik:wpaper:404
    as

    Download full text from publisher

    File URL: https://www.iimk.ac.in/websiteadmin/FacultyPublications/Working%20Papers/3312IIMK_WPS_404_SM_2021_02.pdf?t=26
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Emerging markets; emerging market firm; theory of EMNE; clusters; cognitive proximity;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iik:wpaper:404. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sudheesh Kumar (email available below). General contact details of provider: https://edirc.repec.org/data/iikmmin.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.