Final Report Summary - STATUS (THE LIMITS TO THE TRANSFER OF FIRMS’ STATUS ADVANTAGES <br/>IN CROSS-BORDER INVESTMENTS)
Understanding how status transfers across international markets is also important for practical reasons. International expansion is increasingly common. In 2010, inward foreign direct investment stock was around 30 percent of world GDP, and international trade was 56 percent. While the international management literature emphasizes that firms can exploit proprietary resources such as technological know-how or marketing capabilities in an international expansion (Hymer, 1976), organizational status has received less attention as a resource that can be exploited internationally. Status shares several characteristics with intangible firm resources, but it also fundamentally differs from them due to its relational nature. Therefore, the extent to which status can be exploited in international investments presents an interesting question with practical implications.