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A network perspective on foreign entry modes of small knowledge-intensive services firms
European Journal of Marketing ( IF 5.181 ) Pub Date : 2021-03-01 , DOI: 10.1108/ejm-10-2018-0732
Martina Battisti , Joanna Scott-Kennel , David Deakins

Purpose

Integrating network attributes from studies of social networks, business relationships and small- to medium-sized enterprise (SME) internationalization, this study adopts a perceptual view of a firm’s focal “net” of relationships to examine foreign market entry mode choice. This study aims to examine how the interaction between knowledge-intensive service (KIS) firm’s network ties, embeddedness and position is related to choice of mode and subsequently the firm’s perceived insidership status within its focal net.

Design/methodology/approach

This research is based on qualitative interviews with 25 small- to medium-sized KIS firms engaged in direct exporting or foreign direct investment (FDI). This study derives an empirically grounded framework of four distinct network patterns of these KIS firms through an iterative process of triangulation between cases and theory.

Findings

The four network patterns illustrate the complex interaction between network attributes and entry mode choice by KIS firms. The findings suggest formal ties and centrality in closed network relationships provide the “central controller” firm discretion over their entry mode choice. Resource-intensive FDI by “opportunistic investors” proved essential to securing centrality through formal, institutional ties. Less optimal patterns lacking institutional ties and centrality, however, precluded choice of FDI by “specialized exporters” and “client followers.” The study finds that entry modes are less likely to be influenced by the firm’s embeddedness in open or closed network relationships, but rather by the desire to achieve a more central network position and legitimacy through more formal, less imitable ties.

Research limitations/implications

The findings demonstrate the importance of network structure, a position of centrality, and strength of professional and institutional ties to small KIS firm internationalization. By adopting a more finely grained examination of the interaction between key attributes of the firm’s focal net, this study provides a valuable first step in conceptualizing the complexities associated with networking and adoption of export/investment internationalization modes.

Practical implications

There are a number of implications for the strategic and operational facets of smaller KIS firm internationalization. To avoid excessive network liability for resource-deficient SMEs, practitioners should consider network positioning as a strategic activity, with the costs associated with building and maintaining networks offset against economic- and resource-related returns.

Originality/value

The authors contribute to a better understanding of entry mode choices of KIS by taking a network perspective that accounts for the combined effects of different network attributes. The four network patterns identified extend current theoretical knowledge on the role of networks for entry mode choices of small KIS by highlighting that entry mode choices reflect the particular firm’s focal net and its attempt to achieve insidership status through high centrality and formal ties.



中文翻译:

小型知识密集型服务公司的国外进入模式的网络视角

目的

通过对社交网络,业务关系和中小型企业(SME)国际化的研究中的网络属性进行整合,本研究采用了企业对关系的“网”的看法,以考察国外市场进入模式的选择。这项研究旨在检验知识密集型服务(KIS)公司的网络联系,嵌入性和位置之间的相互作用如何与模式选择以及企业在其焦点网内的内部知情状态之间的关系。

设计/方法/方法

这项研究基于对25家从事直接出口或外国直接投资(FDI)的中小型KIS公司的定性采访。本研究通过案例和理论之间的三角测量的迭代过程,得出了基于经验的,由这些KIS公司的四个不同网络模式组成的框架。

发现

四种网络模式说明了网络属性和KIS公司选择进入模式之间的复杂交互。研究结果表明,封闭网络关系中的正式联系和中心地位为“中央控制人”提供了决定其进入方式选择的坚定自由裁量权。事实证明,“机会投资者”进行的资源密集型外国直接投资对于通过正式的机构联系确保中心地位至关重要。缺乏制度联系和集中性的较不理想的模式却阻止了“专业出口商”和“客户追随者”对外国直接投资的选择。研究发现,进入模式不太可能受公司在开放或封闭的网络关系中的嵌入程度的影响,而是受希望通过更正式,更不可模仿的联系来获得更核心的网络地位和合法性的影响。

研究局限/意义

研究结果表明,网络结构的重要性,中心地位以及对小型KIS公司国际化的专业和机构联系的实力。通过对企业焦点网关键属性之间的相互作用进行更细粒度的检验,本研究为概念化与联网和采用出口/投资国际化模式相关的复杂性提供了有价值的第一步。

实际影响

较小的KIS公司国际化的战略和运营方面具有许多含义。为避免资源匮乏的中小企业承担过多的网络责任,从业人员应将网络定位视为一项战略活动,与建立和维护网络相关的成本应与经济和资源相关的回报相抵消。

创意/价值

通过从网络角度考虑不同网络属性的综合影响,作者有助于更好地理解KIS的进入模式选择。所确定的四种网络模式通过强调进入模式的选择反映了特定公司的焦点网及其通过高度集中和正式联系来获得内部人身地位的尝试,扩展了当前有关小型KIS进入模式选择的网络作用的理论知识。

更新日期:2021-03-15
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