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Integrating the board’s resources to achieve a firm’s internationalisation

Integrating the board’s resources to achieve a firm’s internationalisation PurposeFrom the resource-based view (RBV), the purpose of this paper is to argue that the board has the capability to participate in international strategic decisions and deal with the environmental complexities that internationalisation brings; and moreover, to achieve better performance than its competitors.Design/methodology/approachThis paper highlights the active participation of the board in firm internationalisation using a sample of 78 Spanish firms quoted on Madrid Stock Exchange. The authors used a longitudinal analysis from 2005 through 2010.FindingsThe results show that while the resources provided by the directors through their level of education and international experience, help them learn and process information, and they are a source of expertise representing “board potential”. A board that functions well through the directors’ relationships allow the proper integration and use of these resources, and helps create sustainable competitive advantages in an international context.Originality/valueFrom a RBV, this paper refines and extends the concept of “board capability” as the combination of potential and internal relations that allow boards to undertake their roles competently over time. Additionally, the paper empirically examines the effect of board capability on firm internationalisation. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Academia Revista Latinoamericana de Administración Emerald Publishing

Integrating the board’s resources to achieve a firm’s internationalisation

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Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
1012-8255
DOI
10.1108/ARLA-06-2014-0070
Publisher site
See Article on Publisher Site

Abstract

PurposeFrom the resource-based view (RBV), the purpose of this paper is to argue that the board has the capability to participate in international strategic decisions and deal with the environmental complexities that internationalisation brings; and moreover, to achieve better performance than its competitors.Design/methodology/approachThis paper highlights the active participation of the board in firm internationalisation using a sample of 78 Spanish firms quoted on Madrid Stock Exchange. The authors used a longitudinal analysis from 2005 through 2010.FindingsThe results show that while the resources provided by the directors through their level of education and international experience, help them learn and process information, and they are a source of expertise representing “board potential”. A board that functions well through the directors’ relationships allow the proper integration and use of these resources, and helps create sustainable competitive advantages in an international context.Originality/valueFrom a RBV, this paper refines and extends the concept of “board capability” as the combination of potential and internal relations that allow boards to undertake their roles competently over time. Additionally, the paper empirically examines the effect of board capability on firm internationalisation.

Journal

Academia Revista Latinoamericana de AdministraciónEmerald Publishing

Published: Aug 3, 2015

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