Adaptation and performance in foreign markets: Evidence of systematic under-adaptation

Abstract

Past empirical studies have yielded 'no consistent relationship between strategy adaptation and firm performance'. These inconclusive results may be partially due to a bias amongt managers to under-adapt their host market strategies. This paper presents the results of the second stage of a longitudinal study identifying a potential status quo bias among exporters, leading to systematic under-adaptation.Journal of International Business Studies (2006) 37, 212-226. © 2006 Academy of International Business All rights reserved.