73rd International Atlantic Economic Conference

March 28 - 31, 2012 | Istanbul, Turkey

The causal links between firm resources and internationalization: Cross-sectional evidence

Saturday, 31 March 2012: 5:45 PM
Martijn Boermans, Mphil , International Business and Innovation, HU Business School: University of Applied Sciences, Utrecht, Netherlands
Hein Roelfsema, Ph.D. , International Economics, Utrecht School of Economics, Utrecht University, Utrecht, Netherlands
Objectives: In this study we explore how various firm resources shape internationalization patterns in transition economies. We aim to link particular resources configurations to different types of international participation including international outsourcing, exports and foreign direct investment to capture different degrees of commitment strategies.

Data/Methods: Using new proxies for various resources we utilize some novel features of the Management, Organization and Innovation surveys. The data of 1,355 firms from 10 countries let us distinguish between exporting, FDI and international outsourcing . We use various methods to capture the causal impact of firm resources on internationalization in a cross-sectional setting. Based on a traditional resource perspective we argue that ownership advantages outlined by Dunning (2009) have good explanatory power for internationalization even when we control for each country’s institutional environment and particular industries (the strategic tripod).

Expected Results: Results indicate that technological resources spur internationalization in general, while managerial resources and market power have mixed effects depending on the commitment level of various internationalization modes. Financial resources and networks have no effect on exporting and outsourcing, but are important drivers of FDI.

Key words: export, FDI, outsourcing, managerial resources, innovation, MOI firm surveys, empirical findings, firm-level