Causes of difficulties of internationalization

RBT  Firm as a mix- bundle of rs (t-int) generate position in the market: competitive adv

Resource Classification (2parts)

1. Relationship R s – Adv
1.1 Rs Advantageous : créate the competitive adv, rs are positive
1.2 Disadvantageous: Rs reduce value creation ( Ex. Labor unión)
1.3 Complementary: Necessary to exist but they dont provide an adv nor a disad
2. Specificity
2.1 Firm specific: only

Managers can overcome the liability of newness by actively developing or acquiring the
complementary resource needed to compete in the new country. The firm can invest to internally
develop the resource it needs: for example, if it needs a sales force, it can hire, train, and deploy
one. Alternatively, the firm may acquire the resource in the host market: for example, if it lacks an
office building, it can buy one. Acquiring a complementary resource in the market may be quicker
than internally developing it. If there is no market for the individual resource, the firm may
consider obtaining it by acquiring or allying with a domestic firm that has the resource

In this case the firm needs to take into account the cost of acquiring additional resources it does
not need and the challenge of integrating them within the firm’s operations

the resources may not be as simple to obtain.

Invest to develop the complementary resource necessary to compete in the new country's
industry; buy the resource; access the resource of a local company through an acquisition or
alliance