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Title: Industrial network membership: reducing psychic distance hazards in the internationalization of the firm
Author: Santos, João
Ferreira, Manuel Portugal
Reis, Nuno
Serra, Fernando
Keywords: Networks
Internationalization theories
Psychic distance
Issue Date: 2010
Series/Report no.: globADVANTAGE Working paper series;71
Abstract: The network approach to internationalization of the firms has warranted the research focus of many international business scholars. Firms are increasingly involved in international business endeavors and arguably need to learn to adapt to idiosyncratic milieus they encounter in the foreign markets. This paper proposes a conceptual model suggesting that integration in networks strengthens corporate competitiveness in international markets. Network membership provides access to knowledge that facilitates adaptation to the various dimensions - economic, political, legal, cultural – of the international business environments. Membership in social and business networks are likely to ease internationalization by reducing firms’ perceived psychic distance.
Peer review: no
Appears in Collections:Working papers

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