Organisational learning as a mediator in the host-home country similarity–international firm performance link: the role of exploration and exploitation

Abstract

Purpose This study aims to shed light on the lack of understanding and previous mixed results regarding why and how some internationalised firms take advantage of host-home country similarity (HHS) while others do not. Design/methodology/approach Direct and mediating hypotheses are examined through an empirical investigation of 156 CEOs in internationalised Spanish companies, using structural equation modelling validated by factor analysis. Findings The results suggest that exploitation (EI) and exploration (ER) constitute important learning mechanisms that impact on the liability of foreignness when internationalising a business. In particular, the positive influence that HHS has in international firm performance (IP) depends on both exploitative and exploratory learning. Practical implications This research adds insights into the importance of two of the main components of organisational learning (i.e. ER and EI) as mediators of the HHS and IP relationship, which can help senior managers or business owners make consistent decisions by matching potential international market locations with firm learning factors. Originality/value This study clarifies contradictory theoretical assertions and mixed empirical results about how HHS impacts on international performance. In particular, by responding to recent calls for research, this study has shown that organisational learning is a key component in the aforementioned link where ER and EI positively mediate this relevant relationship.

Innovative outcome through exploration and exploitation – Enablers, barriers and industrial property

“…Thirdly, most studies include organisational performance as a final variable (Lubatkin et al , 2006; Raisch and Birkinshaw, 2008; Parida et al , 2016; Arzubiaga et al , 2020). However, we are more specific, and we work with a new variable called IO.…”

Exploring success factors of marketing in private healthcare organizations: evidence from Lebanon

“…The aforementioned empirical findings show that internationalization strategy requires determination, although businesses often undertake it step by step. Moreover, and in line with the above empirical insights, recent research reveals that most businesses do not have a global focus from the beginning (Bauweraerts et al, 2022) since geographical and cultural distances are often seen as risk factors for firm performance (Arzubiaga et al, 2021). Hence, not only in the case of CMC but also in a broader spectrum, internationalizing to geographically close countries by replicating the same business model is usually considered a learning process before expanding to more distant markets in terms of geography and culture.…”

Interacción entre las dimensiones de la gestión del conocimiento en las cooperativas de ahorro y crédito

“…En este sentido, el aprendizaje a nivel organizacional se da por medio de los individuos, haciéndose necesarios los pasos previos de aprendizaje individual y colectivo, involucrando aspectos relativos a la organización y su entorno social, tales como: la forma en la que se sitúa el pensamiento, se estructuran las situaciones, se identifica y mide el conocimiento, se vinculan las tecnologías y los sistemas de apoyo. Involucra también el ambiente social, económico, político y cultural (Ocasio, 2001;Arzubiaga et al, 2021).…”