Home-Country Networks and Foreign Expansion

Guler, I., Guillen, M.F. (2010) Home-Country Networks and Foreign Expansion, Academy of Management Journal, 53(2): 390-410.

57 Pages Posted: 5 Nov 2016

See all articles by Isin Guler

Isin Guler

University of North Carolina (UNC) at Chapel Hill - Kenan-Flagler Business School

Mauro F. Guillen

University of Pennsylvania - Management Department

Date Written: November 4, 2016

Abstract

We propose that home-country network advantages shape the pattern of foreign expansion of firms. We argue that social status advantage is transferable from one market to another as a signal of quality, while brokerage advantage is more context-specific and difficult to transfer. Furthermore, the value of network advantages changes as networks evolve. Using data on the foreign market entries of 1,010 U.S. venture capital firms, we find robust support for the effects on foreign market entry of social status. We also find that brokerage reduces foreign entry in the absence of partners in the new market, and increases it when partners are already operating in the new market.

Suggested Citation

Guler, Isin and Guillen, Mauro Federico, Home-Country Networks and Foreign Expansion (November 4, 2016). Guler, I., Guillen, M.F. (2010) Home-Country Networks and Foreign Expansion, Academy of Management Journal, 53(2): 390-410. , Available at SSRN: https://ssrn.com/abstract=2864596

Isin Guler (Contact Author)

University of North Carolina (UNC) at Chapel Hill - Kenan-Flagler Business School ( email )

McColl Building
Chapel Hill, NC 27599-3490
United States

Mauro Federico Guillen

University of Pennsylvania - Management Department ( email )

The Wharton School
Philadelphia, PA 19104-6370
United States
215-573-6267 (Phone)
215-326-3205 (Fax)

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