Foreign Market Adaptation and Performance: The Role of Institutional Distance and Organizational Capabilities

Mariola Ciszewska-Mlinarić , Piotr Trąpczyński

Abstract

The role and significance of adaptation versus standardization for performance in foreign markets has stirred some important debates among the academic community. In this paper, we aim to contribute to the ongoing debate by applying the logic of institutional theory and organizational capabilities to reconsider the relationship between adaptation and foreign market performance. In particular, we argue based on extant theory and our own mixed-method study that while more accentuated differences in the institutional environment reinforce the role of adaptation in achieving legitimacy, the possession of relational and technological capabilities can reduce the relevance of adaptation. The empirical study is based on a sample of 284 firms in the quantitative study and eight firms in the qualitative study. Our findings reveal that adaptation is positively associated with performance in foreign markets. This relationship is also positively moderated by institutional distance, and negatively moderated by relational and technological capabilities.
Author Mariola Ciszewska-Mlinarić - Akademia Leona Koźmińskiego w Warszawie (ALK), MNiSW [80]
Mariola Ciszewska-Mlinarić,,
-
, Piotr Trąpczyński (WGM / KKM)
Piotr Trąpczyński,,
- Department of International Competitiveness
Journal seriesSustainability, ISSN 2071-1050, (N/A 70 pkt)
Issue year2019
Vol11
No6
Pages1-19
Publication size in sheets0.9
Keywords in Englishstrategy adaptation; foreign market performance; organizational capabilities; institutional distance
ASJC Classification3305 Geography, Planning and Development; 2105 Renewable Energy, Sustainability and the Environment; 2308 Management, Monitoring, Policy and Law
DOIDOI:10.3390/su11061793
URL https://www.mdpi.com/2071-1050/11/6/1793
Languageen angielski
Score (nominal)70
Score sourcejournalList
ScoreMinisterial score = 70.0, 16-04-2020, ArticleFromJournal
Publication indicators WoS Citations = 0; Scopus SNIP (Source Normalised Impact per Paper): 2016 = 0.911; WoS Impact Factor: 2018 = 2.592 (2) - 2018=2.801 (5)
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UwagiArticle number 1793
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