The Effect of Upstream and Downstream Internationalization on the Acquisition of Market and Technological Knowledge: The Moderating Role of Prior Knowledge

Babson College Entrepreneurship Research Conference (BCERC) 2007

Frontiers of Entrepreneurship Research 2007

15 Pages Posted: 6 Dec 2007

See all articles by Lucia Naldi

Lucia Naldi

Jonkoping University - Jonkoping International Business School (JIBS)

Shaker A. Zahra

University of Minnesota - Twin Cities - Carlson School of Management

Abstract

Grounded in the learning literature, this study examines: 1) the effect of downstream internationalization and upstream internationalization on the acquisition of market knowledge and technological knowledge in small and medium sized enterprises (SMEs), and 2) the moderating role of SME prior knowledge on these relationships. Using longitudinal data on SMEs, the results show that international downstream operations directly and positively impact the acquisition of market and technological knowledge. Prior knowledge does not moderate these relationships. The study shows that SMEs acquire new knowledge also from upstream international activities; and that this process is facilitated by the firm's prior knowledge.

Keywords: Entrepreneurship

JEL Classification: M13

Suggested Citation

Naldi, Lucia and Zahra, Shaker A., The Effect of Upstream and Downstream Internationalization on the Acquisition of Market and Technological Knowledge: The Moderating Role of Prior Knowledge. Babson College Entrepreneurship Research Conference (BCERC) 2007, Frontiers of Entrepreneurship Research 2007, Available at SSRN: https://ssrn.com/abstract=1064881

Lucia Naldi (Contact Author)

Jonkoping University - Jonkoping International Business School (JIBS) ( email )

Jönköping, 55111
Sweden

Shaker A. Zahra

University of Minnesota - Twin Cities - Carlson School of Management ( email )

19th Avenue South
Minneapolis, MN 55455
United States

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