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Internationalization of Indian software firms through establishment of global development centers A contingency perspective
Naveen Kumar Jain1; Nitin Pangarkar2; Lin Yuan3; Vikas Kumar4
2015-07-20
Source PublicationMultinational Business Review
ISSN1525-383X
Volume23Issue:2Pages:90-110
Abstract

Purpose – The purpose of this paper is to examine the inter-firm variation in the opening of international global development centers (GDCs), a high commitment entry mode, by Indian software firms as a function of their past performance, degree of internationalization, possession of a valuable resource in the form of CMMI Level 5 certification and rivals' establishment of GDCs.

Design/methodology/approach – The authors draw on the organizational learning theory, the resource-based view and the strategic behavior theory to analyze the variation in the number of GDCs opened by 32 leading Indian software firms between 2000 and 2009.

Findings – The authors find that strong past performance of Indian software firms leads to the establishment of a greater number of GDCs. The authors further demonstrate that non-financial resources, such as the possession of CMMI Level 5 certification, positively moderate the above relationship.

Research limitations/implications – The research is conducted in the context of a single industry and a single home country. The authors also focus on a subset of firms (large, listed firms) in the industry. The authors recommend future research to examine other knowledge-intensive industries.

Practical implications – An increasing number of Indian software firms and other emerging market firms wish to locate close to their overseas customers by choosing a high commitment entry mode. The research suggests that, prior to internationalizing, managers should build up critical and relevant resources through deployment of high commitment entry modes.

Originality/value – The research has many unique aspects including a rigorous model development, a robust empirical approach as well as an interesting empirical context. The authors believe that the results will be useful to academics and practitioners alike.

KeywordIndia Internationalization Emerging Market Firms Global Development Centers Indian Software Firms
DOIhttps://doi.org/10.1108/MBR-06-2014-0033
Indexed By其他
Language英语
WOS Research AreaBusiness & Economics
WOS SubjectBusiness
WOS IDWOS:000212673500001
Fulltext Access
Citation statistics
Cited Times [WOS]:6   [WOS Record]     [Related Records in WOS]
Document TypeJournal article
CollectionDEPARTMENT OF MANAGEMENT AND MARKETING
Corresponding AuthorVikas Kumar
Affiliation1.Department of Marketing, College of Business Administration, University of Akron, Akron, Ohio, USA
2.Department of Strategy and Policy, NUS Business School, National University Singapore, Singapore
3.Faculty of Business Administration, University of Macau, Macau
4.University of Sydney, Sydney, Australia
Recommended Citation
GB/T 7714
Naveen Kumar Jain,Nitin Pangarkar,Lin Yuan,et al. Internationalization of Indian software firms through establishment of global development centers A contingency perspective[J]. Multinational Business Review,2015,23(2):90-110.
APA Naveen Kumar Jain,Nitin Pangarkar,Lin Yuan,&Vikas Kumar.(2015).Internationalization of Indian software firms through establishment of global development centers A contingency perspective.Multinational Business Review,23(2),90-110.
MLA Naveen Kumar Jain,et al."Internationalization of Indian software firms through establishment of global development centers A contingency perspective".Multinational Business Review 23.2(2015):90-110.
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