TITLE

Network Development and Firm Performance: A Field Study of Internationalizing Japanese Firms

AUTHOR(S)
Lu, Jane W.; Beamish, Paul W.
PUB. DATE
December 2004
SOURCE
Multinational Business Review (St. Louis University);Winter2004, Vol. 12 Issue 3, p41
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
This paper explores the potential competitive advantages from the development of an internal network of subsidiaries and external network of alliances. Given the broad scope and lack of systematic investigation in prior research, clinical field research was conducted in eleven Japanese subsidiaries in China. Our in-depth interviews revealed that there are benefits and costs associated with the development of both subsidiary networks and alliance networks. While there are exploitation and exploration benefits from subsidiary network development, internationalizing firms (especially smaller firms) are subject to the liability of foreignness. Alliance network development is an effective way to mitigate this liability if internationalizing firms choose the right alliance strategy.
ACCESSION #
17587558

 

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