AIB 2012 Conference Proceedings - Academy of International ...

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agree on the pivotal role of internal resources and capabilities in explaining internationalization success.
Nonetheless, little is known about whether firms not possessing these robust internal resources and/or
capabilities can be successful when establishing foreign operations, or how they might accomplish this
significant challenge. This study addressed this issue by using a qualitative case study to explore how Ta Ann, a
Malaysian based firm without any international experience, was able to successfully establish and expand its
operations in Tasmania, Australia. Against the backdrop of theory and research focused on the role internal
resources in enabling successful internationalization, our emergent findings suggest that resources and
capabilities mobilized by often-overlooked local organizations (government organizations entrusted with the
promotion of industrial and economic development) played a critical role in Ta Ann's success in Tasmania.
Implications for internationalization frameworks, MNCs' practitioners, and host government organizations linked
to international investment in their jurisdiction are discussed. (For more information, please contact: Ricardo
Gabriel Flores, University of New South Wales, Australia: r.flores@unsw.edu.au)
The Impact of Customer Interaction Uncertainty and Knowledge Deployment on the Internationalization of
Service Firms
Christopher R. Meyer, Fairleigh Dickinson University
Bruce C. Skaggs, University of Massachusetts
Sudhir Nair, University of Victoria
David G. Cohen, University of Massachusetts
Uncertainty and its impact on production processes have proven to be a useful lens through which to examine
how firms expand internationally. This paper utilizes this approach to suggest propositions for how service
firms determine foreign entry modes based on the uncertainty that they face due to interactions with
customers. In our model such uncertainty is countered by the deployment of knowledge in two primary forms:
in processes/procedures or within workers themselves. We suggest that this deployment of knowledge
subsequently impacts the choice of international entry mode that firms select. (For more information, please
contact: Christopher R. Meyer, Fairleigh Dickinson University, USA: chrisrmeyer@mac.com)
The Relative Benefit of Local Knowlesge Gathering and Information Deployment Efforts in Foreign versus
Domestic Firms
Joerg Zimmermann, European Comission, JRC - IPTS
This study investigates the differential benefits of local information gathering and deployment efforts for foreign
and domestic firms. I argue that foreigners must simultaneously handle the implications of their assets and
liabilities compared to domestic counterparts. Firms that are able to internationalize have an additional
deployment benefit within host markets, whereas the initial lack of embeddedness places foreigners at a relative
disadvantage with regard to local information gathering activities. Early attempts by foreigners to reduce their
lack of embeddedness through information gathering, however, generate an additional deployment benefit for
these firms. I test the analytical framework using a broad set of foreign and domestic manufacturing firms
competing in Spain. The framework contributes to the internationalization strategy literature by taking a finegrained
view of specific actions intended to cope with the organizational implications of foreigners' liabilities and
assets simultaneously, and related changes over time. This perspective also adds new insight to the market
adaptation literature by demonstrating that a changing market environment not only implies that firms'
adaptation abilities are important for firm success in a new market environment but also makes important the
relative competitiveness of each of its adaptation activities. (For more information, please contact: Joerg
Zimmermann, European Comission, JRC - IPTS, Spain: jzi@gmx.de)
AIB 2012 Conference Proceedings
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