Exploring inward-outward linkages in firms' internationalization: a knowledge and network perspective

Welch, Lawrence S.; Benito, Gabriel R. G.; Silseth, Pål R.

doi:10.4337/9781781950623.00018

Cited by 2 publications

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“…This research also acknowledges the importance of knowledge process, acquisition, and exploitation, which represent the absorptive capacity of the firm and detailed inter-firm knowledge sharing which is essential to enable firms in GVC are connecting to each other through learning processes. The absorptive capacity is projected as crucial for the dynamic capability of the firm in acquiring, assimilating, and exploiting knowledge flow that emerges from the inward and outward internationalisation of the firm (Zahra and George 2002); nevertheless, prior literature was only concerned with the intra-firm knowledge sharing in establishing inward-outward internationalisations (Karlsen et al, 2003;Welch et al, 2002;.…”

Section: Discussionmentioning

confidence: 99%

Sourcing from China: Connecting Inward and Outward Internationalisation Through Absorptive Capacity

2021

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The capabilities of small and medium enterprises (SMEs) to partake in the global value chain (GVC) are remarkable. However, the capabilities of SMEs to connect between the sourcing side of GVC to the export side of GVC through learning processes should also be addressed for the SMEs' competitive gains. Therefore, the objective of this study is to investigate firm's absorptive capacity in connecting their inward to outward internationalisation by employing a qualitative case study design using two cases involving Malaysian SMEs' internationalisation as well as semi-structured interviews with the SMEs' Managing Directors for two years, and the data were then triangulated through documentation. Based on the research findings, the absorptive capacity of SMEs should be equipped with inter-firm knowledge sharing and "guanxi" relationship in order to utilize the newly acquired knowledge by means of a reciprocal action and trust involving the focal firm and their suppliers in China. This enables SMEs to benefit from the flows of knowledge in inward and outward internationalisation, thus able to export to China even though they only began from international sourcing.

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Section: Discussionmentioning

confidence: 99%