Technological Efforts & Internationalization of IT firms in India
Published: 2009
Author(s) Name: K. Narayanan & Savita Bhat
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Abstract
This paper examines the role of
technological efforts, both internal
(in-house R&D) and external
(technology imports), in determining
inter-firm variations in
internationalization. The study,
using the resource-based perspective,
finds that there are
differences in the determinants of
exports and overseas investments.
Also, the effects of the technological
factors differ between a
software and services firm and a
hardware firm. The study finds
support to the view that, presently,
IT firms in India are gaining
competitive advantage over their
rivals by exploiting the technological
gap along with factor cost
differentials. The paper suggests
that the firms need to create niche
markets to have long-run competitive
advantage in the international
market.
Keywords : IT Firms in India
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