Klier, Schwens, Zapkau, Dikova (2017)

Question 1

Which resources matter?

Answer 1

Resource-based view (RBV) firms have to manage their valuable, rare, imitable, and non-substitutable resources (VRIN) to achieve sustainable competitive advantage.

Unfamiliar environments cause information deficit effecting the way firms must manage resources. For example, cultural distance prevents flow of information
Certain types of resources (experience) become very valuable during information deficit

Question 2

Supported hypotheses

Answer 2

H1: (SUP) Firms which possess more knowledge-based resources, are more likely to establish a foreign subsidiary via greenfield investment (as opposed to an acquisition).

H2: (SUP) Firms which possess more experience-based resources, are more likely to establish a foreign subsidiary via acquisition (as opposed to a greenfield investment).

H3a: (SUP) The propensity of parent firms with abundant knowledge-based resources to choose for a greenfield investment increases with higher cultural distance.

Question 3

Key message

Answer 3

• Centrality of RBV (i.e. VRIN resources) for firms EMC (establishment mode choice)
• The value of resources varies with the resource type and also with the context
• Managers should take different resources as well as the environment in account when choosing EMC