The central claim in this paper is that home geography, in terms of potential social capital, facilitates individual firms’ international involvement in markets for goods and technology. Beyond a certain level, however, potential social capital may induce firms to become trapped in their home region such that the degree of international involvement decreases. We also conjecture that firms’ research and development investment moderates the relationship between potential social capital and the degree of international involvement, but with different signs for each market. Exploiting a representative sample of around 2,000 Italian manufacturing firms, we find support for our arguments.
Trapped by Over-Embeddedness: The Effects of Regional Social Capital on Internationalization
MASCIARELLI, FRANCESCA;
2009-01-01
Abstract
The central claim in this paper is that home geography, in terms of potential social capital, facilitates individual firms’ international involvement in markets for goods and technology. Beyond a certain level, however, potential social capital may induce firms to become trapped in their home region such that the degree of international involvement decreases. We also conjecture that firms’ research and development investment moderates the relationship between potential social capital and the degree of international involvement, but with different signs for each market. Exploiting a representative sample of around 2,000 Italian manufacturing firms, we find support for our arguments.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
