Home country uncertainty and the internationalization-performance relationship: Building an uncertainty management capability

Published on Dec 1, 2017in Journal of World Business5.79
· DOI :10.1016/j.jwb.2017.11.002
Alvaro Cuervo-Cazurra32
Estimated H-index: 32
(NU: Northeastern University),
Luciano Ciravegna13
Estimated H-index: 13
(University of Cambridge)
+ 1 AuthorsLuis López7
Estimated H-index: 7
(INCAE Business School)
We analyze the impact of home country uncertainty on the internationalization-performance relationship of emerging market firms. Building on organizational learning theory and the institutional approach, we argue that internationalization has a positive impact on the performance of emerging market firms, and that this relationship is strengthened for firms based in emerging countries with higher corruption and political risk. The reason is that by being exposed to high levels of home country uncertainty in the form of political risk and corruption, firms develop an uncertainty management capability at home that helps them face the challenges of internationalization better. We also propose that this uncertainty management capability helps emerging market firms perform better outside of their home region. We test our arguments on a sample of 536 firms from Argentina, Brazil, Chile, and Peru.
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  • Citations (13)
#1Ruth V. Aguilera (Ramon Llull University)H-Index: 34
#2Luciano Ciravegna (INCAE Business School)H-Index: 13
Last.Maria Alejandra Gonzalez-Perez (EAFIT University)H-Index: 7
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#1Valentina Marano (NU: Northeastern University)H-Index: 4
#2Jean-Luc Arregle (EMLYON Business School)H-Index: 9
Last.Marc van Essen (HSG: University of St. Gallen)H-Index: 16
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#1Luciano Ciravegna ('KCL': King's College London)H-Index: 13
#2Luis López (INCAE Business School)H-Index: 7
Last.Sumit K. Kundu (College of Business Administration)H-Index: 23
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Cited By13
#1Jie Wu (UM: University of Macau)H-Index: 15
#2Zhenzhong Ma (U of W: University of Windsor)H-Index: 18
Last.Chun Kwok Lei (UM: University of Macau)
view all 4 authors...
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