Networks, institutional environment and firm internationalization

Abstract

Purpose

The purpose of this study is to investigate the influence of network relationships and institutional environment on premium winegrowers’ internationalization process.

Design/methodology/approach

This study uses a case study approach to examine two premium wine producers engaged in internationalization. The data sources consist of semi-structured interviews, observations at three major events and secondary data sourced from industry reports and materials that are available online.

Findings

Findings illustrate that both personal and inter-firm networks help wineries to internationalize. Inter-firm networks play a significant role in gaining international legitimacy. Personal networks were found to be more important in establishing brand authenticity that facilitates wineries in their internationalization process. Gaining international legitimacy and establishing brand authenticity are crucial in the successful internationalization of premium wineries.

Research limitations/implications

This study provides an explanation of how networks can be put into institutional context. Future studies could map out the formal and informal institutions within the wine industry and investigate the closer dynamics among the different actors in the whole network. A whole network is formally structured and governed, yet still built on the relationships among members, making it a very complex phenomenon. This would allow the evaluation of multilateral ties that link firms and actors within the network and how this affects the internationalization process.

Practical implications

This paper provides managers with insights on how they can capitalize on their inter-firm and personal networks to help them deal with domestic and international institutional environments when embarking on internationalization activities.

Originality/value

This paper adds to the existing literature on networks relationships and provides an important link between networks, institutions and internationalization.

Citation

Morrish, S.C. and Earl, A. (2021), "Networks, institutional environment and firm internationalization", Journal of Business & Industrial Marketing, Vol. 36 No. 11, pp. 2037-2048. https://doi.org/10.1108/JBIM-05-2019-0230