Resource based theory of internationalisation - Evidence from New Zealand

Abstract

Within this study I have discussed the path to internationalisation of six New Zealand firms, and three key resources and capabilities that have allowed these firms to make this strategic transition. These resources and capabilities included knowledge development, relationships and innovation. The main purpose of this study was to develop theory on the resource based internationalisation of these firms, and to compare this to see if there was a 'fit' with the academic literature on this topic. The first three case study firms followed the stages model of internationalisation. Outlined within the academic literature these firms followed a slow and incremental approach to a psychically close market, which was very much dependant on the development of knowledge within the business. From the results that have been gained from these three New Zealand firms, knowledge development was seen as a key component for all three firms. The remaining three firms followed the born global model of internationalisation. As predicted these firms relied heavily upon innovation to provide the impetus required to move into the international marketplace. These findings show a close relationship to the academic literature on this topic. There is strong evidence however to show that capabilities involved on each internationalisation path extend beyond those predicted from a review of prior theory. The notable differences seen between the case study firms and the academic literature on this topic include relationships and knowledge. Relationships were seen as a key long term strategic component for two of the stages model firms, while two of the three born global firms only held a small number of strategic relationships. Both of these results differ from the discussion seen within the academic literature. The second point of difference was evident with assessment of the importance of knowledge development within the born global firms. One firm emphasises the absolute necessity of knowledge development, the second stated that is was essential as a means of maintaining a competitive advantage within the marketplace. The differences that were seen between the academic literature on this topic and the results from the case study firms were speculated as being present due to the nature of the New Zealand firms. The small size and the very limited nature of the resources and capabilities that these firms held were seen as contributing factors to the differences that were observed within this study.