Institutional knowledge

Abstract

Purpose-Rarely have studies on the acquisition of knowledge in internationalisation focused on institutional knowledge. The aim of this paper is, therefore, to investigate the acquisition of this knowledge, and its assimilation and exploitation processes in internationalisation. Design/methodology/approach-The paper utilises ten longitudinal revelatory case studies built from multiple semi-structured interviews conducted with three different firm types of SMEs in the pharmaceutical industry and secondary documents to which the researchers obtained proprietary access. Findings-The study enhances our conceptual understanding of the institutional learning process in internationalisation by, for the first time, developing a framework to characterise this process. The study explores and identifies multiple types of institutional knowledge required, the sequencing of their acquisition, sources, and learning methods utilised. It also discusses transferability of this learning across foreign markets and firms' absorptive capacity for that knowledge. Regulatory-specific product knowledge, found to be the most important type required, appeared to affect significantly both market selection and mode of entry, and when acquired insufficiently, prevented internationalisation. Research limitations/ implications-While the sample size is relatively small, and sectorspecific, the findings were consistent across all the SME firms and firm types. They may also be generalisable to other sectors, firm sizes such as MNEs and types, particularly those which are knowledge-based or highly regulated, given that similar institutional knowledge and processes of acquisition are necessary for firms of all sizes in internationalisation. Practical implications-International marketing managers will gain valuable insights, based on a framework proven to propel firms to successful internationalisation, upon how to plan, organise, manage and match their institutional knowledge-seeking and learning activities with their firms' internal capabilities, staffing and other resources in an effective and timely manner. Originality/value-This study contributes to our conceptual understanding of the institutional knowledge learning process in the internationalisation.

Knowledge trajectories in the internationalization of the firm

“…, 2014). Institutional knowledge differs from market knowledge (Bell and Cooper, 2017; Eriksson et al ., 2000). Whereas the former refers to the host country's institutional environment (e.g.…”

The effects of brand origin and country-of-manufacture on consumers' institutional perceptions and purchase decision-making

“…Institutions comprise a country's legal codes and rules, norms and standards, ethics and values that guide and constrain industry members' practice (Scott, 2013;Campbell, 2007;Bell and Cooper, 2018), while contributing to the image of that country (Suter et al, 2018;Wang et al, 2014). Consumers assess the institutions of a country by evaluating the generalised legitimacy of the whole institutional environment (Wang et al, 2014) as well as perceptions of certain subtype institutional environments (Busenitz et al, 2000).…”

“…The regulation of international products denotes systemic and collaborative efforts in both brand origin and manufacturing location. As these two places have their own rules of law, companies that operate across different institutional environments need to adjust to different regulatory bodies and regulations (Cantwell et al, 2010;Bell and Cooper, 2018). Thus, both BO and COM cues can remind consumers of the regulatory environment that oversees products.…”

“…Strong institutions are in consumers' interests, because they constrain corporate practice in a specific country and control the quality and safety of products (Loureiro and Umberger, 2007). As institutions vary by country (Bell and Cooper, 2018), country-of-origin (COO) cues serve as a proxy for institutional quality and guide consumers' inferences about firms' business practices and accordingly about product quality. Thus, an institutional perspective sheds further light on the COO effect by assessing how consumers adopt COO cues to evaluate products originating from countries with good institutional quality when they face systemic risk.…”

SME Internationalisation: The Relationship Between Social Capital and Entry Mode

“…The literature does, however, provide several empirical findings and suggest several mechanisms than can form the basis of a theoretical explanation. Bell and Cooper (2018) found that Canadian SMEs in China were also unable to establish bridging ties with any political actors that provided more product regulation information than was available through government websites. Regulatory information affects the entry mode of foreign psychically distant SMEs into China (Haritz and Xiaokang 2017) because it informs the SME about the match between their resources and regulatory constraints.…”