Trapped or Spurred by the Home Region?

The Effects of Potential Social Capital on Involvement in Foreign Markets for Goods and Technology

Keld Laursen, Francesca Masciarelli, Andrea Prencipe

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    Resumé

    Drawing on social capital theory and the international business literature, we argue that domestic geography, in terms of localized potential social capital, facilitates individual firms’ awareness of business opportunities, including knowledge related to involvement in the foreign markets for goods and technology, thereby enhancing firms’ involvement in those foreign markets. When potential social capital reaches a certain threshold, it may work to trap firms into operating only within their home regions, thus reducing involvement in foreign markets. We conjecture that firms’ research and development investment moderates the relationship between potential social capital and degree of involvement in foreign markets, but given the very different properties of the two markets, with different signs for each market: a positive moderation effect for the markets for goods, and a negative effect for the markets for technology. We find empirical support for our arguments based on a representative sample of around 2000 Italian firms.
    OriginalsprogEngelsk
    TidsskriftJournal of International Business Studies
    Vol/bind43
    Udgave nummer9
    Sider (fra-til)783–807
    ISSN0047-2506
    DOI
    StatusUdgivet - 2012

    Emneord

    • Potential social capital
    • Exports
    • Technology sales
    • Research and development

    Citer dette

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    abstract = "Drawing on social capital theory and the international business literature, we argue that domestic geography, in terms of localized potential social capital, facilitates individual firms’ awareness of business opportunities, including knowledge related to involvement in the foreign markets for goods and technology, thereby enhancing firms’ involvement in those foreign markets. When potential social capital reaches a certain threshold, it may work to trap firms into operating only within their home regions, thus reducing involvement in foreign markets. We conjecture that firms’ research and development investment moderates the relationship between potential social capital and degree of involvement in foreign markets, but given the very different properties of the two markets, with different signs for each market: a positive moderation effect for the markets for goods, and a negative effect for the markets for technology. We find empirical support for our arguments based on a representative sample of around 2000 Italian firms.",
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    Trapped or Spurred by the Home Region? The Effects of Potential Social Capital on Involvement in Foreign Markets for Goods and Technology . / Laursen, Keld; Masciarelli, Francesca; Prencipe, Andrea.

    I: Journal of International Business Studies, Bind 43, Nr. 9, 2012, s. 783–807.

    Publikation: Bidrag til tidsskriftTidsskriftartikelForskningpeer review

    TY - JOUR

    T1 - Trapped or Spurred by the Home Region?

    T2 - The Effects of Potential Social Capital on Involvement in Foreign Markets for Goods and Technology

    AU - Laursen, Keld

    AU - Masciarelli, Francesca

    AU - Prencipe, Andrea

    PY - 2012

    Y1 - 2012

    N2 - Drawing on social capital theory and the international business literature, we argue that domestic geography, in terms of localized potential social capital, facilitates individual firms’ awareness of business opportunities, including knowledge related to involvement in the foreign markets for goods and technology, thereby enhancing firms’ involvement in those foreign markets. When potential social capital reaches a certain threshold, it may work to trap firms into operating only within their home regions, thus reducing involvement in foreign markets. We conjecture that firms’ research and development investment moderates the relationship between potential social capital and degree of involvement in foreign markets, but given the very different properties of the two markets, with different signs for each market: a positive moderation effect for the markets for goods, and a negative effect for the markets for technology. We find empirical support for our arguments based on a representative sample of around 2000 Italian firms.

    AB - Drawing on social capital theory and the international business literature, we argue that domestic geography, in terms of localized potential social capital, facilitates individual firms’ awareness of business opportunities, including knowledge related to involvement in the foreign markets for goods and technology, thereby enhancing firms’ involvement in those foreign markets. When potential social capital reaches a certain threshold, it may work to trap firms into operating only within their home regions, thus reducing involvement in foreign markets. We conjecture that firms’ research and development investment moderates the relationship between potential social capital and degree of involvement in foreign markets, but given the very different properties of the two markets, with different signs for each market: a positive moderation effect for the markets for goods, and a negative effect for the markets for technology. We find empirical support for our arguments based on a representative sample of around 2000 Italian firms.

    KW - Potential social capital

    KW - Exports

    KW - Technology sales

    KW - Research and development

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    DO - 10.1057/jibs.2012.27

    M3 - Journal article

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    JO - Journal of International Business Studies

    JF - Journal of International Business Studies

    SN - 0047-2506

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