Skip to main content
Log in

Internationalization through exaptation: The role of domestic geographical dispersion in the internationalization process

  • RESEARCH NOTE
  • Published:
Journal of International Business Studies Aims and scope Submit manuscript

Abstract

We introduce the notion of exaptation to internationalization theory, a process in which a capability is re-used for a purpose and in a context different than its historical purpose and context. Specifically, we examine which domestic capabilities may be redeployed when organizations engage in cross-border M&As for the first time. We suggest that organizations exapt (re-use) coordination and control capabilities, initially developed to manage domestic geographical dispersion, to acquire and integrate external resources across borders. By analyzing 693 Indian business groups over a decade, we add to the recent effort to frame the internationalization process within evolutionary theory.

Résumé

Nous proposons d’intégrer la notion d’exaptation à la théorie d’internationalisation, un processus dans lequel une capacité est réutilisée dans un but et un contexte différents que le but et le contexte historiques. Plus précisément, nous examinons quelles capacités nationales peuvent être redéployées lorsque des organisations s’engagent pour la première fois dans des fusions-acquisitions (FA) transfrontalières. Nous suggérons que les organisations exaptent (réutilisent) les capacités de coordination et de contrôle, initialement développées pour gérer l’expansion géographique domestique, pour acquérir et intégrer des ressources extérieures transfrontalières. En analysant 693 groupes d’entreprises indiennes sur une décennie, nous contribuons aux efforts récents visant à intégrer le processus d’internationalisation au sein d’une théorie évolutive.

Resumen

Introducimos la noción de exaptación a la teoría de internacionalización, un proceso en el cual una capacidad es reutilizada para un propósito y en un contexto diferente a su propósito y contexto histórico. Específicamente, examinamos cuales capacidades domésticas pueden ser reubicarse cuando las organizaciones se involucran en fusiones y adquisiciones por primera vez. Sugerimos que las organizaciones exaptan (reutilizan) las capacidades de coordinación y control, inicialmente desarrolladas para manejar la dispersión geográfica nacional, para adquirir e integrar recursos externos a través de las fronteras. Al analizar 693 grupos empresariales Indios por una década, nos sumamos al esfuerzo reciente para enmarcar el proceso de internacionalización en la teoría evolutiva.

Resumo

Introduzimos a noção de exaptação à teoria da internacionalização, um processo no qual uma capacidade é reutilizada para um propósito e em um contexto diferente do seu propósito e contexto histórico. Especificamente, examinamos quais capacidades domésticas podem ser reutilizadas quando as organizações participam de fusões e aquisições transfronteiriças pela primeira vez. Sugerimos que as organizações exaptam (reutilizam) as capacidades de coordenação e controle, inicialmente desenvolvidas para gerenciar a dispersão geográfica doméstica, para adquirir e integrar recursos externos através de fronteiras. Ao analisar 693 grupos empresariais indianos ao longo de uma década, nós contribuímos ao recente esforço para enquadrar o processo de internacionalização na teoria evolutiva.

概要

我们给国际化理论引入了扩展适应的概念,即在不同于历史目的和情境的某种目的和情境中将能力重复使用的过程。具体而言,我们研究哪些国内能力在组织首次进行跨境并购时可能被重新部署。我们建议,组织扩展适应(重复使用)最初是为了管理国内地理分布而开发的协调和控制能力,以获取和整合跨境的外部资源。通过分析跨越十年的693家印度公司集团,我们对在进化理论内构建国际化进程做出了最新的努力。

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

References

  • Bae, K. H., Kang, J. K., & Kim, J. M. 2002. Tunneling or value added? Evidence from mergers by Korean business groups. The Journal of Finance, 57(6): 2695–2740.

    Article  Google Scholar 

  • Barkema, H. G., Bell, J. H., & Pennings, J. M. 1996. Foreign entry, cultural barriers, and learning. Strategic Management Journal, 17(2): 151–166.

    Article  Google Scholar 

  • Beugelsdijk, S., McCann, P., & Mudambi, R. 2010. Introduction: Place, space and organization—economic geography and the multinational enterprise. Journal of Economic Geography, 10(4): 485–493.

    Article  Google Scholar 

  • Beugelsdijk, S., & Mudambi, R. 2013. MNEs as border-crossing multi-location enterprises: The role of discontinuities in geographic space. Journal of International Business Studies, 44(5): 413–426.

    Article  Google Scholar 

  • Bird, A., & Mendenhall, M. E. 2016. From cross-cultural management to global leadership: Evolution and adaptation. Journal of World Business, 51(1): 115–126.

    Article  Google Scholar 

  • Clarke, J. E., Tamaschke, R., & Liesch, P. 2012. International experience in international business research: A conceptualization and exploration of key themes. International Journal of Management Reviews, 15(3): 265–279.

    Article  Google Scholar 

  • Dew, N., Sarasvathy, S. D., & Venkataraman, S. 2004. The economic implications of exaptation. Journal of Evolutionary Economics, 14(1): 69–84.

    Article  Google Scholar 

  • Dosi, G., & Nelson, R. R. 1994. An introduction to evolutionary theories in economics. Journal of Evolutionary Economics, 4(3): 153–172.

    Article  Google Scholar 

  • Douma, S., George, R., & Kabir, R. 2006. Foreign and domestic ownership, business groups, and firm performance: Evidence from a large emerging market. Strategic Management Journal, 27(7): 637–657.

    Article  Google Scholar 

  • Gould, S. J. 1991. Exaptation: Tool for an evolutionary psychology. Journal of Social Issues, 47(3): 43–65.

    Article  Google Scholar 

  • Gould, S. J., & Vrba, E. S. 1982. Exaptation: A missing term in the science of form. Paleobiology, 8(1): 4–15.

    Article  Google Scholar 

  • Hymer, S. 1976. The international operations of national firms. Cambridge MA: MIT press.

    Google Scholar 

  • Johanson, J., & Vahlne, J. E. 1977. The internationalization process of the firm: A model of knowledge development and increasing foreign market commitments. Journal of International Business Studies, 8(1): 23–32.

    Article  Google Scholar 

  • Jones, G. R., & Hill, C. W. L. 1988. Transaction cost analysis of strategy structure choice. Strategic Management Journal, 9(2): 159–172.

    Article  Google Scholar 

  • Khanna, T., & Yafeh, Y. 2005. Business groups in emerging markets: Paragons or parasites? Journal of Economic Literature, 45(2): 331–372.

    Article  Google Scholar 

  • Kumar, V., Gaur, A. S., & Pattnaik, C. 2012. Product diversification and international expansion of business groups. Management International Review, 52(2): 175–192.

    Article  Google Scholar 

  • Leff, N. H. 1978. Industrial organization and entrepreneurship in the developing countries: The economic groups. Economic Development and Cultural Change, 26(4): 661–675.

    Article  Google Scholar 

  • Luo, Y., & Tung, R. L. 2007. International expansion of emerging market enterprises: A springboard perspective. Journal of International Business Studies, 38(4): 481–498.

    Article  Google Scholar 

  • Marquis, C., & Huang, Z. 2010. Acquisitions as exaptation: The legacy of founding institutions in the US banking industry. Academy of Management Journal, 53(6): 1441–1473.

    Article  Google Scholar 

  • Meyer, K. E., & Nguyen, H. V. 2005. Foreign investment strategies and sub-national institutions in emerging markets: Evidence from Vietnam. Journal of Management Studies, 42(1): 63–93.

    Article  Google Scholar 

  • Mudambi, R. 2008. Location, control and innovation in knowledge-intensive industries. Journal of Economic Geography, 8(5): 699–725.

    Article  Google Scholar 

  • Nachum, L., & Zaheer, S. 2005. The persistence of distance? The impact of technology on MNE motivations for foreign investment. Strategic Management Journal, 26(8): 747–767.

    Article  Google Scholar 

  • Nelson, R. R., & Winter, S. G. 2002. Evolutionary theorizing in economics. Journal of Economic Perspectives, 16(2): 23–46.

    Article  Google Scholar 

  • Polhmeier, W., & Ulrich, V. 1995. An econometric model of the two-part decision making process in the demand for health care. Journal of Human Resources, 30(2): 339–361.

    Article  Google Scholar 

  • Santangelo, G. D., & Meyer, K. E. 2011. Extending the internationalization process model: Increases and decreases of MNE commitment in emerging economies. Journal of International Business Studies, 42(7): 894–909.

    Article  Google Scholar 

  • Santangelo, G. D., & Meyer, K. E. 2017. Internationalization as an evolutionary process. Journal of International Business Studies 48(9): 1114–1130.

    Article  Google Scholar 

  • Vahlne, J.-E., & Johanson, J. 2017. The internationalization process 1977–2017: The Uppsala model 40 years later. Journal of International Business Studies, 48(9): 1087–1102.

    Article  Google Scholar 

  • Vermeulen, F., & Barkema, H. (2001). Learning through acquisitions. Academy of Management Journal, 44(3): 457–476.

    Google Scholar 

  • Winter, S. G., & Szulanski, G. 2001. Replication as strategy. Organization Science, 12(6): 730–743.

    Article  Google Scholar 

Download references

Acknowledgements

For comments on earlier versions of this article, we thank Associate Editor Anupama Phene, three anonymous reviewers, and seminar participants at BI Norwegian Business School and Ca’ Foscari University of Venice. We are also thankful to Peter Buckley, Klaus Meyer, Ram Mudambi, Marcus Møller Larsen, and Toke Reichsten for insightful discussions and suggestions.

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Grazia D Santangelo.

Additional information

Accepted by Ram Mudambi, Area Editor, February 26, 2018. This article has been with the authors for four revisions.

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Santangelo, G.D., Stucchi, T. Internationalization through exaptation: The role of domestic geographical dispersion in the internationalization process. J Int Bus Stud 49, 753–760 (2018). https://doi.org/10.1057/s41267-018-0151-y

Download citation

  • Received:

  • Revised:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1057/s41267-018-0151-y

Keywords

Navigation