Internationalization of Indian software firms through the establishment of global development centers: a contingency perspective

• Autores: Naveen Kumar Jain, Nitin Pangarkar, Lin Yuan, Vikas Kumar
• Localización: The Multinational Business Review, ISSN 1525-383X, ISSN-e 2054-1686, Vol. 23, Nº. 2, 2015, págs. 90-110
• Idioma: inglés
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• Resumen

  • Purpose We examine the interfirm variation in the opening of international global development centers (GDCs), in a high commitment entry mode, by Indian software firms as a function of their past performance, degree of internationalization, possession of a valuable resource in the form of CMMI level 5 certification and rivals� establishment of GDCs.

    Design/methodology/approach We draw on the organizational learning theory, the resource based view and the strategic behavior theory to analyze the variation in the number of GDCs opened by 32 leading Indian software firms between 2000 and 2009.

    Findings We find that strong past performance of Indian software firms leads to the establishment of a greater number of GDCs. We further demonstrate that non-financial resources such as the possession of CMMI level 5 certification positively moderates the above relationship.

    Research limitations/implications Our research is conducted in the context of a single industry and a single home country. We also focus on a subset of firms (large, listed firms) in the industry. We recommend future research to examine other knowledge-intensive industries.

    Practical implications An increasing number of Indian software firms and other emerging market firms (EMFs) wish to locate close to their overseas customers by choosing a high commitment entry mode. Our research suggests that, prior to internationalizing, managers should build up critical and relevant resources through deployment of high commitment entry modes.

    Originality/value Our research has many unique aspects including a rigorous model development, a robust empirical approach as well as an interesting empirical context. We believe that our results will be useful to academics and practitioners alike.