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A Capabilities Perspective on the Effects of Early Internationalization on Firm Survival and Growth

Harry J. Sapienza, Erkko Autio, Gerard George and Shaker A. Zahra
The Academy of Management Review
Vol. 31, No. 4 (Oct., 2006), pp. 914-933
Published by: Academy of Management
Stable URL: http://www.jstor.org/stable/20159258
Page Count: 20
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Since scans are not currently available to screen readers, please contact JSTOR User Support for access. We'll provide a PDF copy for your screen reader.
A Capabilities Perspective on the Effects of Early Internationalization on Firm Survival and Growth
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Abstract

Recent critiques of internationalization process models question the wisdom of delaying internationalization. Internationalizing late allows firms to assemble resources and gain experience but also allows inertia to develop. We resolve this tension by positing that internationalization has differing effects on firm survival and growth. These effects are moderated by organizational age, managerial experience, and resource fungibility. Our framework provides insights into the evolution of capabilities across borders and may be tested and built on by organization researchers.

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