When Does Adaptation to Foreign Markets Matter? An Institutional Approach to the Internationalization of Post-Transition Economy Firms

Abstract

Adaptation of foreign market strategy and its performance outcomes have been among the key research topics in international business and international marketing. The present chapter provides new evidence on the contingent nature of the adaptation-performance relationship. Drawing from the institution-based view, we argue that adaptation increases legitimacy in the foreign market, hence improving foreign market performance. This relationship can be expected to gain importance for higher levels of institutional distance. Conversely, we expect that a successful development of foreign market relationships can be an alternative way of gaining legitimacy. These statements are supported with quantitative data from 284 firms and qualitative evidence from 8 firms.

Citation

Ciszewska-Mlinarič, M. and Trąpczyński, P. (2019), "When Does Adaptation to Foreign Markets Matter? An Institutional Approach to the Internationalization of Post-Transition Economy Firms", Tulder, R.V., Verbeke, A. and Jankowska, B. (Ed.) International Business in a VUCA World: The Changing Role of States and Firms (Progress in International Business Research, Vol. 14), Emerald Publishing Limited, Leeds, pp. 459-479. https://doi.org/10.1108/S1745-886220190000014024