This study extends the industrial organization (IO) and the resource-based view of the firm (RBV) perspectives to a dynamic setting by investigating the changes in a firm's exporting strategies following an unexpected and radical environmental upheava...
This study extends the industrial organization (IO) and the resource-based view of the firm (RBV) perspectives to a dynamic setting by investigating the changes in a firm's exporting strategies following an unexpected and radical environmental upheaval. Specifically, we examine the effects of domestic market positioning and organizational capabilities on Korean firms' exporting strategies before and after the Korean economic crisis. We find that those firms more adversely affected by the crisis tend to dramatically change their exporting strategies. Furthermore, our results suggest that not all capabilities uniformly help firms to pursue exporting strategies. Rather, we find that domestically-bounded capabilities limit flexibility while capabilities that are not locationally bounded help firms to reorient their strategies toward exporting.