A1 Journal article (refereed), original research

Microfoundations of network exploration and exploitation capabilities in international opportunity recognition


Open Access hybrid publication

Publication Details
Authors: Faroque Anisur, Morrish Sussie, Kuivalainen Olli, Sundqvist Sanna, Torkkeli Lasse
Publisher: Elsevier
Publication year: 2020
Language: English
Related Journal or Series Information: International Business Review
ISSN: 0969-5931
eISSN: 1873-6149
JUFO-Level of this publication: 2
Open Access: Open Access hybrid publication

Abstract

While international entrepreneurship (IE) recognizes opportunity recognition (OR) as a central activity and the prominent role of network capabilities in OR, it is not informative as to how different network capabilities in-fluence OR in international markets. We utilize dual network capability through the lens of exploration- exploitation to better understand how these two different capabilities influence the identification of international opportunities. Given that microfoundations perspective and prior experience in IE are under-developed and under-theorized, we explore founder’s prior experience as an essential microfoundation for the dual network capability. By employing structural equation modeling on a sample of 647 early internationalizing firms from a developing country, the study demonstrates that founders’ prior experience is a significant micro-foundation of dual network capability in international OR. However, both exploration and exploitation capabilities fail to bring new opportunities in a changing market environment. A post-hoc analysis reveals that at a higher level of market change, younger firms benefit more from network exploration, whereas older firms achieve greater success when leveraging benefits from network exploitation. The study concludes with implications and future research avenues.


Last updated on 2020-10-11 at 08:14