Internationalizing firms (IFs) face difficulties in adapting home country business models to fit host country conditions, because they lack strategic information about host country conditions and are limited in deploying effectively their dynamic capabilities abroad. In response, IFs may engage host country experts (eg, consultants) to assist in refining their business models. In drawing on the dynamic capabilities view and information economics, this study explains how certain prior international experiences of the IF and access to strategic host country information assist in explaining when IFs engage local experts. Multilevel analysis drawing on a sample of 1,198 international market entries supports the hypothesized arguments.
17 Sept. 2016 → 20 Sept. 2016
Strategic Management Society (SMS) Annual Conference