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Research Article

The Effects of Resources, Alliances, Strategic Intent, and Their Interactions on Corporate International Expansion

Lee, Jangho

Published: January 2004 · Vol. 33 No. 6 · pp. 1875-1893
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Abstract

This study examined the effects of firm-specific resources, the interaction between resources and alliances, and the interaction between strategic intent and alliances on the internationalization of small and medium-sized venture firms (SMVFs), which are of growing importance to the national economy and corporate international expansion, from the perspectives of the resource-based view and the relational view of social capital theory as an extension of the resource-based view. The regression analysis results suggest that SMVFs that have accumulated R&D capabilities in the course of their business activities can leverage such resources to increase their internationalization, but marketing capabilities measured by the advertising expenditure ratio do not positively contribute to SMVF internationalization at a statistically significant level. This study also found that the interaction between R&D capabilities and marketing alliances, and the interaction between marketing capabilities and technology alliances, have positive effects on SMVF internationalization. The results suggest that SMVFs, which inherently lack sufficient resources, can expand their internationalization by effectively combining their own resources with complementary resources procured through alliances with external organizations. Finally, this study found that the interaction between strategic intent and alliances positively contributes to SMVF internationalization at a statistically significant level only when SMVFs form marketing alliances with strategic intent.
Keywords: alliancefirm`s international salesresources