The goal of this paper is to conduct a detailed review of research on foreign market entry alliances mediated by information technology (IT). This paper offers the conceptual structure of… Click to show full abstract
The goal of this paper is to conduct a detailed review of research on foreign market entry alliances mediated by information technology (IT). This paper offers the conceptual structure of cross- border IT interactions and performance effects that is technically aware. It combines resource-based view (RBV) viewpoints and transaction cost economics (TCE), arguing that developing IT interface capabilities improves the commercial efficiency by enhancing interfirm relationship governance in the host location of the foreign partner. More relevant modulators are often known as IT-related threats and contextual limitations. It proposes concepts of IT capabilities, enhanced IT interfirm governance and improved IT marketing efficiency. Building from RBV and TCE, IT capital, relevant human resources, and IT integration, the capacity of companies to better manage the connection through joint control, interfirm collaboration, organizational formalization and hybrid centralisation is improved by the combination of RBV and TCE. These advantages contribute to increased marketing efficiency at the host place upstream and downstream. IT capabilities also lead to mitigating potential contextual constraints and threats. The paper presents a range of research ideas based on theory and literature that will be empirically evaluated in future studies. Top managers of companies currently or intend to enter into foreign market entry partnerships should consider carefully improving inter-company IT capabilities with regard to hardware and software preparation, human resources and organizational assets.
               
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