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Dynamic capabilities, internationalization processes and performance

Christiane Prange and Sylvie Verdier
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Christiane Prange: EM - EMLyon Business School

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Abstract: Strategies of internationalization have long been the focus of international business and global strategy research. While the major theories – process theory and new venture theory – have substantially contributed to our understanding of internationalization processes, they have not yet fully explained differences in firms' growth and survival rates. Adopting a dynamic capability perspective, we argue that there are two opposing classes of explorative and exploitative capabilities differentially linked to output variables. We introduce the notion of third-order capabilities to balance trade-offs and maximize internationalization performance. Amodel with some testable propositions is developed which prepares the ground for future empirical research.

Date: 2011-01-01
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Citations: View citations in EconPapers (99)

Published in Journal of World Business, 2011, 46 (1), pp.126-133 P

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