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Managing knowledge in foreign entry strategies: a resource‐based analysis
Author(s) -
Meyer Klaus E.,
Wright Mike,
Pruthi Sarika
Publication year - 2009
Publication title -
strategic management journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 11.035
H-Index - 286
eISSN - 1097-0266
pISSN - 0143-2095
DOI - 10.1002/smj.756
Subject(s) - exploit , resource (disambiguation) , transaction cost , categorization , value (mathematics) , cluster analysis , industrial organization , resource based view , knowledge management , computer science , database transaction , business , microeconomics , economics , marketing , artificial intelligence , competitive advantage , machine learning , database , computer network , computer security
International strategies vary in their potential to exploit and augment a firm's resources, especially its knowledge base. Resource‐based analysis suggests clustering the diverse entry modes in terms of their exploitation and augmentation characteristics. We thus introduce a new categorization of entry modes based on their potential to augment the resources of an entrant. We then explore the antecedents of these modes, and advance testable propositions delimiting for which firms and in which circumstances each mode maximizes long‐term value creation. Finally, we outline how our resource‐based framework complements transaction‐cost‐based frameworks. Copyright © 2009 John Wiley & Sons, Ltd.