Managing knowledge in foreign entry strategies: a resource‐based analysis

Abstract

International strategies vary in their potential to exploit and augment a firm's resources, especially its knowledge base. Resource‐based analysis suggests clustering the diverse entry modes in terms of their exploitation and augmentation characteristics. We thus introduce a new categorization of entry modes based on their potential to augment the resources of an entrant. We then explore the antecedents of these modes, and advance testable propositions delimiting for which firms and in which circumstances each mode maximizes long‐term value creation. Finally, we outline how our resource‐based framework complements transaction‐cost‐based frameworks. Copyright © 2009 John Wiley & Sons, Ltd.

International experience and FDI location choices of Chinese firms: The moderating effects of home country government support and host country institutions

“…From the KBV, a firm's prior entry experience represents firm-specific knowledge that is difficult to imitate (Martin & Salomon, 2003;Meyer, Wright & Pruthi, 2009). Such experience allows firms to develop organizational capabilities and overcome obstacles to a foreign market entry.…”

Expanding to outward foreign direct investment or not? A multi-dimensional analysis of entry mode transformation of Chinese private exporting firms

“…From the RBV perspective, export experience represents a firmspecific tacit resource (Meyer, Wright & Pruthi, 2009b) that is important for OFDI. Such experience allows firms to improve their understanding of and competence in foreign markets, build relational assets and develop foreign market entry capability that helps mitigate information asymmetry and uncertainty, and thus overcome the liability of foreignness associated with OFDI.…”

“…Subsidiaries in a host country can gain direct access to new knowledge and research skills which cannot be effectively achieved without the local presence. Existing research has found that motives for acquiring external knowledge affects the path of internationalisation, and OFDI activities provide a means of knowledge exploitation and exploration in foreign countries (Lu et al, 2011;Meyer et al, 2009b). In comparison, exporting activities only allow firms to have limited interaction with foreign buyers and suppliers, representing limited learning opportunities in international markets (Liu et al, 2005).…”

German and Austrian Foreign Direct Investment in Brazilian Regions: Which Are the Location Choice Factors?

“…Knowledge about the host environment is important in all countries, but may be particularly so in emerging markets, as laws and regulations can be subject to "interpretation" and haphazard application with limited recourse (Meyer, Wright and Pruthi, 2009). For foreign firms, one way to mitigate their higher information and search costs is to locate near other firms.…”