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Developing international social capital: The role of communities of practice and clustering

Urzelai, Berrbizne; Puig, Francisco

Authors

Francisco Puig



Abstract

© 2018 Elsevier Ltd One criteria regarding where to invest in foreign markets is linked to the international social capital (ISC) that exists on the place, which enables the access to local knowledge and other location-specific advantages. There are alternative ways to create and make use of that ISC that are still unexplored by International Business literature. In this paper, we study the geographic communities of practice (CoP) that are formed by FDI firms from the same country-of-origin (the so-called country-of-origin clusters). For that purpose, the paper adopts a qualitative methodological approach through an inductive case study of expatriates from 13 Spanish subsidiaries co-located in China. Our findings suggest that there are particular mechanisms based on the informal connections and repeated interactions facilitated by a common language and non-competitive relationships that create an ISC in the CoP. Moreover, our analysis shows there is a heterogeneity in the way these mechanisms are developed and used by the member firms, and this is due to organizational and individual factors, as well as leadership dynamics. Our work contributes to Internationalization and Network theories by identifying unexplored mechanisms through which the ISC is developed at the host country level. Besides, it helps identifying competences (i.e. clustering competences) that help expatriate managers to be successful in their international assignments.

Journal Article Type Article
Publication Date Apr 1, 2019
Journal International Business Review
Print ISSN 0969-5931
Publisher Elsevier
Peer Reviewed Peer Reviewed
Volume 28
Issue 2
Pages 209-221
APA6 Citation Urzelai, B., & Puig, F. (2019). Developing international social capital: The role of communities of practice and clustering. International Business Review, 28(2), 209-221. https://doi.org/10.1016/j.ibusrev.2018.08.008
DOI https://doi.org/10.1016/j.ibusrev.2018.08.008
Keywords international social capital, communities of practice, co-location, cluster, China
Publisher URL https://doi.org/10.1016/j.ibusrev.2018.08.008
Additional Information Additional Information : This is the author's accepted manuscript. The final published version is available here: https://doi.org/10.1016/j.ibusrev.2018.08.008.
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