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Industrial network membership: Reducing psychic distance hazards in the internationalization of the firm

Author

Listed:
  • João Carvalho Santos

    (Instituto Politécnico de Leiria)

  • Manuel Portugal Ferreira

    (Instituto Politécnico de Leiria)

  • Nuno Rosa Reis

    (Instituto Politécnico de Leiria)

  • Sandra Raquel Alves

    (Instituto Politécnico de Leiria)

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.

Suggested Citation

  • João Carvalho Santos & Manuel Portugal Ferreira & Nuno Rosa Reis & Sandra Raquel Alves, 2011. "Industrial network membership: Reducing psychic distance hazards in the internationalization of the firm," Working Papers 71, globADVANTAGE, Polytechnic Institute of Leiria.
    • Handle: RePEc:pil:wpaper:71
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    File URL: https://globadvantage.ipleiria.pt/files/2011/02/working_paper-71_globadvantage.pdf
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    More about this item

    Keywords

    Networks; internationalization theories; psychic distance;
    All these keywords.

    JEL classification:

    • M0 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - General
    • M1 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration

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