Training for Internationalization through Domestic Geographical Dispersion: The Case of Emerging Market Business Groups

Grazia D. Santangelo, Tamara Stucchi

    Research output: Contribution to conferencePaperResearchpeer-review

    Abstract

    Traditionally created to deal with the unfriendly domestic environment, business groups (BGs) are increasingly internationalizing. However, how BGs can reconcile their strictly domestic orientation with an international dimension still remains an open question. Drawing on arguments from organizational learning, we seek to solve this puzzle in relation to the internationalization of Indian BGs. In particular, we argue that in heterogeneous domestic emerging markets BG’s geographical dispersion across sub-national states provides training for internationalization. To internationalize successfully, BGs need to develop the capability of managing geographically dispersed units in institutional heterogeneous contexts. Domestic geographical dispersion would indeed help the BG dealing with different regulations, customers and infrastructures. However, there is less scope for such training as BGs become
    more internationally experienced, and the benefits of domestic geographical dispersions are limited by the degree of urbanization of sub-national states. We test our argument on a sample of 693 Indian BGs over the period 2001-2010.
    Original languageEnglish
    Publication date2012
    Number of pages34
    Publication statusPublished - 2012
    EventThe 3rd Copenhagen Conference on Emerging Multinationals: Outward Investment from Emerging Economies - Copenhagen Business School, Frederiksberg, Denmark
    Duration: 25 Oct 201226 Oct 2012
    Conference number: 3
    http://www.cbs.dk/Forskning/Konferencer/OFDI

    Conference

    ConferenceThe 3rd Copenhagen Conference on Emerging Multinationals
    Number3
    LocationCopenhagen Business School
    CountryDenmark
    CityFrederiksberg
    Period25/10/201226/10/2012
    Internet address

    Cite this