Whole country-of-origin network development abroad
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Whole country-of-origin network development abroad John P Berns1, Maria Gondo2 and Christian Sellar3 1
University of Mississippi, 249 Holman Hall, University, MS 38677, USA; 2 University of Mississippi, 358 Holman Hall, University, MS 38677, USA; 3 University of Mississippi, 105 Odom Hall, University, MS 38677, USA Correspondence: JP Berns, University of Mississippi, 249 Holman Hall, University, MS 38677, USA e-mail: [email protected]
Abstract The support that networks offer during the internationalization process is well documented in the international business literature. However, this work has primarily focused on firm-level networks while underappreciating the cooperative behaviors that may emerge among organizations in the pursuit of common network-level goals. To better understand these concerted and coordinated actions, we engaged in a qualitative examination of two clusters of Italian organizations abroad. We observed that goal-directed and governed networks emerged in these clusters, bounded by their common desire to support Italian firms’ internationalization. This insight underlies our contributions to the international business and whole network literatures. We offer a process model outlining the emergence of a particular type of whole network: the country-of-origin network. This process is much more distributed, emergent, and context-dependent than previously theorized. Our model illustrates that network development involves the active and coordinated efforts of diverse actors working to create infrastructure that can be accessed by and shared between new and existing organizations. Our finding that both networks were governed utilizing a distinct but context-appropriate governance structure provides new insight into how networks support internationalization. Furthermore, it illustrates that whole network-level support is distinct from, but complementary to, the firm-to-firm support highlighted in previous studies. Journal of International Business Studies (2020). https://doi.org/10.1057/s41267-020-00379-x Keywords: networks; country-of-origin; internationalization; qualitative; process
Authors are listed in alphabetical order. Each author contributed equally to the paper. Received: 27 March 2018 Revised: 8 September 2020 Accepted: 22 September 2020
INTRODUCTION Historically, research in international business has drawn attention to the important role firms’ networks play in facilitating the internationalization process (Hymer, 1976; Johanson & Vahlne, 1977). Such networks play a vital role in enabling firms to internationalize through the sharing of local market knowledge (Cuypers, Ertug, Cantwell, Zaheer, & Kilduff, 2020; Yeniyurt & Carnovale, 2017), mitigating their liability of outsidership (Johanson & Vahlne, 2009; Li & Fleury, 2020). Alternatively, research has explored how access to local market knowledge can likewise be obtained by locating geographically close to other similar firms holding such knowledge (Chang & Park, 2005; Head, Ries, & Swenson, 1995; Shaver & Flyer, 2000; Tan & Mey
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