VENTURE LEGITIMACY IN SOUTH-NORTH INTERNATIONALIZATION
Proceedings Paper
Misati, E, Walumbwa, FO, VON GLINOW, MA et al. (2022). VENTURE LEGITIMACY IN SOUTH-NORTH INTERNATIONALIZATION
. BEST PAPERS PROCEEDINGS - FIFTY-FIFTH ANNUAL MEETING OF THE ACADEMY OF MANAGEMENT, 2022(1), 10.5465/AMBPP.2022.303
Misati, E, Walumbwa, FO, VON GLINOW, MA et al. (2022). VENTURE LEGITIMACY IN SOUTH-NORTH INTERNATIONALIZATION
. BEST PAPERS PROCEEDINGS - FIFTY-FIFTH ANNUAL MEETING OF THE ACADEMY OF MANAGEMENT, 2022(1), 10.5465/AMBPP.2022.303
Venturing internationally presents many opportunities for businesses. Yet, small entrepreneurial firms remain underrepresented in international trade. Specifically, entrepreneurial firms from developing markets (DMEFs) lag their counterparts from developed markets in export revenues. We contend that this is partly due to liabilities of origin (LORs), which stem from institutional voids in firms’ home-countries and have adverse implications for their legitimacy abroad. How, then, can DMEFs mitigate LORs when seeking customers in developed markets? In this qualitative study, we draw on institutional theory and the literature on social evaluations to enhance our understanding of firms’ strategic responses to stakeholder judgments.
