While most research on internationalisation process has focused on entry mode selection, this paper aims at explaining the role of social interorganizational networks in facilitating the foreign development of young firms. Our approach is in line with the idea that firms are embedded in social networks with other actors and it is also consistent with the network approach of internationalisation process. Indeed, it has been argued in a large number of studies that network relationships represent critical avenues for the acquisition of resources necessary for foreign development of young firms. Although broad agreement exists about the impact of networks for firms’ international growth, only few attempts have been made to mode beyond an empirically appreciation of specific characteristics of these networks useful to improve foreign development. We suggest the importance to enlarge the network approach of internationalisation through the social capital theory, affirming that the capability of a start-up to create social ties with some business partners can improve the possibility to reach an excellent and consolidated presence in foreign markets. Our main aim is to build a theoretical model that explicates the influences of social capital on the firms’ foreign growth. Thus, we focus empirically more on social content embedded in formal contacts between business partners than on simple structure of relationships, suggesting that a start-up’s international growth process is contingent on the nature and structure of its social relationships. Our regression results involve some important strategic implications, showing that the development of strong levels of social capital can become a profitable source of competitive advantage abroad. Consequently, while firm-level social capital has been increasingly studied in the context of domestic relationships and its applications in international settings have been almost non-existent, our findings suggest the importance of its deepened application also in international field.

• The influence of social capital on the internationalisation process. Some empirical findings”, ISBN

BOARI, CRISTINA;FRATOCCHI, LUCIANO;PRESUTTI, MANUELA
2004

Abstract

While most research on internationalisation process has focused on entry mode selection, this paper aims at explaining the role of social interorganizational networks in facilitating the foreign development of young firms. Our approach is in line with the idea that firms are embedded in social networks with other actors and it is also consistent with the network approach of internationalisation process. Indeed, it has been argued in a large number of studies that network relationships represent critical avenues for the acquisition of resources necessary for foreign development of young firms. Although broad agreement exists about the impact of networks for firms’ international growth, only few attempts have been made to mode beyond an empirically appreciation of specific characteristics of these networks useful to improve foreign development. We suggest the importance to enlarge the network approach of internationalisation through the social capital theory, affirming that the capability of a start-up to create social ties with some business partners can improve the possibility to reach an excellent and consolidated presence in foreign markets. Our main aim is to build a theoretical model that explicates the influences of social capital on the firms’ foreign growth. Thus, we focus empirically more on social content embedded in formal contacts between business partners than on simple structure of relationships, suggesting that a start-up’s international growth process is contingent on the nature and structure of its social relationships. Our regression results involve some important strategic implications, showing that the development of strong levels of social capital can become a profitable source of competitive advantage abroad. Consequently, while firm-level social capital has been increasingly studied in the context of domestic relationships and its applications in international settings have been almost non-existent, our findings suggest the importance of its deepened application also in international field.
31TH ANNUAL CONFERENCE ACADEMY OF INTERNATIONAL BUSINESS, PROCEEDINGS, CITY OF DERRY, NORTHERN IRELAND, APRIL 23TH -24TH 2004
50
70
Boari C.; Fratocchi L.; Presutti M.
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Utilizza questo identificativo per citare o creare un link a questo documento: http://hdl.handle.net/11585/21826
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