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Paper info: Business networks and the internationalization of local cluster suppliers

Title


Business networks and the internationalization of local cluster suppliers

Authors


Andrea Furlan
University of Padova
Italy
Andrea Furlan and
Roberto Grandinetti
University of Padova
Italy
Roberto Grandinetti

Place of Publication


The paper was published at the 24th IMP-conference in Uppsala, Sweden in 2008.

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Abstract


Whether and how geographical proximity within local clusters supports internationalization of small to medium-sized suppliers is the topic we tackle in this study. At best of our knowledge, this paper is the first attempt that tries to answer this question.Local cluster scholars maintain that within local clusters supplier and customer relationships are collaborative, trust-based and a source of valuable tangible and intangible resources for local cluster members. Combining this theory with the network approach on international business networks, we derive an original framework suggesting that both partnerships with local suppliers and with local customers support the degree of internationalization of a local cluster supplier. Partially contrasting this framework, our findings suggest that while partnerships with local suppliers support the degree of internationalization of local cluster suppliers, partnerships with local customers hinder it. These results suggest important theoretical contributions and managerial lessons