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  • Network cohesion in global expansion: An evolutionary view

    Author(s)
    Hatani, Faith
    McGaughey, Sara L
    Griffith University Author(s)
    McGaughey, Sara L.
    Year published
    2013
    Metadata
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    Abstract
    Increasingly, competitive advantage does not reside in a single ?rm's capabilities or resources, but in inter?rm networks that compete with other networks. Recognizing that deployment of the network as a cohesive and coordinated organization is critical when it operates globally, we ask: How does global expansion, in particular entry into emerging markets, affect the cohesion of a large inter?rm network and with what consequences? We examine this question through an evolutionary perspective, conceptualizing the process of variation-selection-replication-retention as one cycle of a network-level routine of global expansion. ...
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    Increasingly, competitive advantage does not reside in a single ?rm's capabilities or resources, but in inter?rm networks that compete with other networks. Recognizing that deployment of the network as a cohesive and coordinated organization is critical when it operates globally, we ask: How does global expansion, in particular entry into emerging markets, affect the cohesion of a large inter?rm network and with what consequences? We examine this question through an evolutionary perspective, conceptualizing the process of variation-selection-replication-retention as one cycle of a network-level routine of global expansion. Movement through the cycle accelerates with high levels of network cohesion such that market entry and foreign establishment may become more rapid. We present a longitudinal analysis of the Toyota Group from founding through to its more recent entry into emerging markets, and identify the dangers of a diversion in any stage of this network routine. Our ?ndings highlight the role uncertainty in the emerging market context and speed-based competition plays in the loss of network cohesion, and point to the ongoing, and possibly increased, importance of the core ?rm's role in maintaining network cohesion and global competitive advantage.
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    Journal Title
    Journal of World Business
    Volume
    48
    Issue
    4
    DOI
    https://doi.org/10.1016/j.jwb.2012.09.002
    Subject
    International business
    Marketing
    Publication URI
    http://hdl.handle.net/10072/57530
    Collection
    • Journal articles

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