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Perspectives on strategic internationalization: Developing capabilities for renewal
Affiliation:1. ISC Paris Business School, 22, bd. du Fort de Vaux, 75017 Paris, France;2. Melbourne Business School, The University of Melbourne, 272 Faraday Street, Parkville, VIC 3010, Australia;1. University of Leuven, Belgium;2. EDHEC Business School, France;1. University of Bath, United Kingdom;2. Oxford Brookes University, United Kingdom;1. Eli Broad Graduate School of Management, Michigan State University, 632 Bogue Street, East Lansing, MI 48824, United States;2. Department of Management, College of Business Administration, San Diego State University, 5500 Campanile Drive, San Diego, CA 92182, United States;3. James K. Batten Eminent Scholar Chair in International Business, Department of Management and International Business, College of Business Administration, Florida International University, 11200 S.W. 8th St, Mango 448, Miami, FL 33199, United States;1. The University of Texas at San Antonio, One UTSA Circle, San Antonio, TX 78249, USA;2. Faculty of Industrial Engineering and Management, Technion—Israel Institute of Technology, Haifa 32000, Israel;3. NUS Business School, National University of Singapore, Singapore 117592, Singapore
Abstract:While strategic renewal has increasingly received interest from strategy scholars (Agarwal and Helfat, 2009, Baden-Fuller and Volberda, 1997, Capron and Mitchell, 2009, Crossan and Berdrow, 2003, Gulati and Puranam, 2009, Huff et al., 1992), its gains from internationalization are less understood. We draw on both internationalization and strategy literature to investigate what is known about ‘if’ and ‘how’ firms renew their capabilities through internationalization. We anticipate that the scope of internationalization has an inverted U-shape effect on the firm's ability to create alternatives for renewal, thus allowing for the development of renewal capabilities. Yet we also draw attention to the factors that may represent limitations of the role of internationalization for strategic renewal. Internationalization strategies related to location, timing and venture mode decisions are antecedents to capability renewal strategies, uncovered as linear vs. non-linear renewal paths.
Keywords:Internationalization  Renewal capabilities  Capability development  Dynamic capabilities
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