AIB 2012 Conference Proceedings - Academy of International ...

TUESDAY
Poland, Russia and China. The theoretical framework used to analyze these highly internationalized SMEs builds
on a network approach to internationalization. Hypotheses are formulated regarding the effects of the
usefulness of former internationalization knowledge, market knowledge and social linkages on the current
network entry node choice of the firm; either a direct relationship in the form of a dyad, or an indirect
relationship in the form of a triad. Through a logistic regression it was shown that market knowledge and social
linkage favors a dyadic entry node into the emerging market business network, while general
internationalization knowledge did not significantly affect the choice of entry node. In addition, moderations
were found between the antecedents and the current network entry node of the sample SMEs. (For more
information, please contact: Susanne Sandberg, Linnaeus University, Sweden: susanne.sandberg@lnu.se)
Accelerated Internationalization of Small Firms: Adjusting and Activating Networks for Opportunities
Anita Juho, University of Oulu
Tuija Mainela, University of Oulu
The present study examines the behaviors of small firm entrepreneurs in their intensified efforts to increase the
international business activities of their firms. The study builds on previous research on the use of networks and
the development of business opportunities in both gradual internationalization and new venture
internationalization models. The study combines the two to suggest networking and learning as the actions that
drive the international opportunity development by the entrepreneur in accelerated internationalization of the
firm. It is that triad of behaviors that might be the key driver of the accelerated internationalization any firm.
In the empirical study we compare the networking, learning and international opportunity development
behaviors by an international late starter and an international new venture longitudinally over a three year
period. As a result of the study we suggest two primary ways of behaving in networks in accelerated
internationalization of firms. The international late starter depicts "adjusting" type of behaviors whereas the
international new venture depicts "activating" type of behaviors. We suggest these behavioral logics to
circumscribe the acting of the entrepreneurs and lead to either sequential or cyclical process of accelerated
internationalization. (For more information, please contact: Anita Juho, University of Oulu, Finland:
anita.juho@oulu.fi)
Session: 3.3.6 - Competitive
Track: 5 - MNC Management and Organization
The Many Functions of Networks in International Business
Presented On: July 3, 2012 - 13:00-14:15
Chair: Torben Pedersen, Copenhagen Business School
Local Embedding Activity by the Competence-seeking MNE Subsidiary
Shameen Prashantham, Nottingham University Business School
This exploratory study sheds light on how competence-seeking MNE subsidiaries build local embedded
relationships. Drawing on over 50 semi-structured interviews spanning three technology alliances formed by a
UK-based American MNE subsidiary, we argue that local actors' perceptions during interactions (e.g. meetings)
with MNE subsidiaries powerfully affect how embedding unfolds. We contribute fine-grained, nuanced theorizing
of perceptual barriers to embedding: negative process-related perceptions may derail trust-building while
adverse content-related perceptions could impede information-sharing. Consequently, mutual commitment and
therefore joint problem-solving are hindered. Embedding activity is thus no trivial matter and constitutes a
make-or-break factor in MNE subsidiaries' competence-creation via external networks. (For more information,
please contact: Shameen Prashantham, Nottingham University Business School, China:
shameen.prashantham@nottingham.edu.cn)
AIB 2012 Conference Proceedings
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