Activating Assets of Foreignness in Compressed Developing Markets: Evidence from New Zealand SMEs Entering the Chinese Market
Asia Pacific Business Review, DOI:10.1080/13602381.2022.2054170
The University of Auckland Business School Research Paper Series
Posted: 6 Apr 2022
Date Written: 2022
Abstract
The methods Western SMEs can use to activate assets of foreignness in compressed developing markets are not well understood. To fill this gap, this study identifies three main mechanisms for such activation: conforming to home-country institutions, creating distancing narratives and accentuating foreignness. It contributes knowledge about SME internationalization into compressed developing markets through two findings. First, SMEs can benefit from contrasting country practices and norms between home and host countries. Second, SMEs can activate institutional resources of their home country, which requires between-market learning because the value of these resources arises from their use in a different context. Full paper available at : https://doi.org/10.1080/13602381.2022.2054170
Keywords: Assets of foreignness, China, compressed development, country-of-origin, institutional voids, New Zealand
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