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Competitive advantage and international business: examining path dependencies in international business.


ABSTRACT

This paper examines competitive advantage, entrance mode, international strategy, and performance. Firms evolve certain competencies and capabilities above a long period of time while operating in the domestic environment and these competencies and capabilities form the basis of a firm's competitive advantage. We categorize multinationals into internal focus, external focus and dual focus firms. A path interdependence approach is taken in developing our conceptual type Our propositions suggest (1) associations between internal focus firms with high sway of subsidiaries and a strategy of global integration; and (2) associations between external focus firms with joint mastery of international operations and


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