Journal Article

Domestic mindsets and early international performance: The moderating effect of global industry conditions

Perez, Pedro David, Nadkarni, Sucheta, Herrmann, Pol

2011

Overview

We develop and test a sensemaking model of early internationalization that ties domestic mindsets to international industry conditions and early international performance. Our central contention is that the fit between international industry conditions and domestic mindsets will lead to superior early international performance. We test this contention with a sample of 178 large and established domestic firms from 20 industries. Our results highlight the role of domestic mindsets in the early phases of internationalization and prescribe the types of domestic mindsets needed to maximize early international performance in global, multi-domestic, and transnational industry conditions. Our results also provide valuable insights to top managers of large and established firms on how to reduce the risk of failure and how to successfully prepare for and cope with international environments by matching their domestic mindsets with international industry environments.

• Publisher: John Wiley & Sons, Ltd,John Wiley & Sons,Wiley,Wiley Periodicals Inc
• Subject: Big business / Business conditions / Business management / Business structures / Cognition / Corporate strategies / Data analysis / Domestic market / Economic performance / Extractive industries / Führungskräfte / global industry conditions / Globalisierung / Globalization / High technology industries / Industrial market / Industry / Industry analysis / International markets / international performance and managerial cognition / Internationalization / Kognition / mindsets / Retail industries / Risk aversion / Risk management / Risk reduction / Sense making / Sensemaking / Sensemaking-Ansatz / Strategic management / Strategic planning / Studies / Transnationalism / Unternehmenserfolg / USA