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The impact of political culture on firms' choice of exploitation-exploration internationalization strategy
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Advisor(s)
Abstract(s)
This article discusses the impact of political culture on the exploitation-exploration
internationalization strategies of firms. In particular, we propose that four dimensions of
political culture – nationalism, internationalism, patriotism, and cosmopolitanism – influence
firms’ willingness to explore new opportunities and/or to exploit existing products and
capabilities across borders. We suggest that firms in nationalist home country cultures are more
likely to pursue exploitation strategies, whereas those in cosmopolitan cultures are more likely
to pursue exploration strategies. For firms embedded in patriotic or internationalist cultures, a
mix of exploitation and exploration internationalization strategies might be the more likely
choice. We conclude that these political culture dimensions may be useful to understand and
predict many firm-level strategic choices, such as the type of internationalization strategy
pursued, the choice of foreign entry mode and location, and decisions concerning the
management of foreign subsidiaries.
Description
Keywords
Exploitation Exploration Internationalization strategy Political culture
Pedagogical Context
Citation
ARMAGAN, Sungu; FERREIRA, Manuel Portugal - The impact of political culture on firms' choice of exploitation-exploration internationalization strategy. International Journal of Cross Cultural Management. Vol. 5, n.º 3 (2005), p. 323-339.